Order preparation is one of the main activities of a warehouse, since the ultimate goal of ecommerce logistics is to deliver as many orders as possible at the lowest possible cost and in the shortest possible time. Did you know that order preparation costs can exceed 60% of the total operating costs of a warehouse? Reducing their impact can therefore guarantee a company’s success. Or failure if the objective is not met. In this article, we’ll take a look at how order picking for ecommerce works dynamically and productively.
What is order picking?
Order preparation is the operational cycle dedicated to the packaging for the shipment of products purchased by customers. They can be shipped to the end customer, to the production site or to other warehouses or shops of the company.
The term picking is commonly used as a synonym for order preparation, but this is not entirely correct. Picking refers to the process that takes place from the removal of products from a unit load (e.g. a container) containing other items of the same SKU to storage in another unit load (a picking trolley). In other words, it is the picking and combining of the items included in the customer’s order; therefore, picking can be said to be part of the operational cycles of order picking.
There is also a significant difference between the loading unit and the ordering unit. Products are grouped into loading units (e.g. pallets, boxes or containers) that facilitate their handling and transfer through the stages of the supply chain. On the other hand, order units are the parts of the unit load that can be included in an order.
The 4 stages of ecommerce order preparation
An efficient supply chain presupposes a good knowledge of the main stages of order preparation:
- Pre-planning: this is essential for managing and allocating available resources. In the presence of a WMS (Warehouse Management System), the software itself will prioritize orders and distribute activities.ç
- Routing and movement: this is the most time-consuming and resource-intensive process, provided that the “goods-to-person” criterion is applied. A precise warehouse layout is the best ally.
- Picking: an up-to-date inventory and the use of radio frequency terminals or aids such as voice-controlled picking reduce the risk of errors.
- Checking and preparing the order for shipment: the last stage of ecommerce order preparation consists of checking the order units picked, packing, transfer to the dispatch area, printing the documentation accompanying the order, etc.
The different stages of order preparation that take place in a warehouse can vary depending on the type of product, the order preparation criteria or the characteristics of each order.
How to optimize order preparation for my ecommerce site
Warehouse management software helps to optimize the management of processes, resources and documents during order preparation, especially in the context of e-commerce, where customers expect fast and error-free deliveries.
For years, FR Logísticos has been providing its expertise to streamline order preparation with the most advanced storage, picking and management systems on the market. If you want to transform your order preparation phase to meet the challenge of omnichannel or simply consider that the preparation of orders in your warehouse is not entirely efficient, don’t wait any longer, contact our team!