If your DC is typical, you're probably doing more piece picking today than you did a decade ago. Here are some tips for improving that part of your operation.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
If you've been involved in order fulfillment for a decade or more, there's a good chance you've seen a shift in your facility's picking patterns. Over the last 10 years, many DCs—particularly in the retail sector—have found themselves picking far fewer pallets or cases and a lot more individual items or pieces. (See sidebar for a look at what's driving this trend.)
And that's no trivial change.
Compared to case or full pallet picking, piece picking is a more complex and labor-intensive operation, according to Norman E. Saenz Jr., assistant vice president at the consultancy TranSystems. Not only does it often mean more handling, but also more totes or cartons, more pick faces, more lines in the order (but fewer units per line), and certainly more work.
But if piece picking is going to become a bigger part of your operation, it's important to get it right. Here are some tips from the experts on how to pick small orders more efficiently.
1. Don't underestimate the value of slotting.
The benefits of proper slotting (the efficient placement of items in a warehouse or DC) might seem obvious—shorter travel times, reduced congestion, better use of space. Yet many companies fail to master the technique and end up paying the price in efficiency.
Good slotting isn't easy; in fact, it's an art, says Saenz. There are a lot of factors or constraints to consider—the SKU's current and future velocity, its cube, its weight, seasonality, and what else ships with it—and they often contradict one another, he explains. With so many factors to take into account, you can't just rely on intuition; a robust slotting tool is crucial for piece picking success.
2. Reslot early and often.
When it comes to piece picking, one of the most common mistakes companies make is failing to reslot in a timely fashion, says Ken Ruehrdanz of distribution equipment and systems developer Dematic. "As demand for each SKU changes, so do the pick rates and therefore, so should the slotting," he says. Skip that step and the operation is likely to see its efficiency drop over time.
How often should you reslot? It all depends on your products' life cycles, says Jack Kuchta, president of Jack Kuchta Supply Chain Advisors. If you're handling high-fashion apparel, you may need to reslot daily; machine tool companies, however, could probably get away with reslotting every year or even every five years.
How do you know when it's time to reslot? "There's no easy rule," says Kuchta. "The only way to know is to keep running a [software] program that looks at what percentage of your picks are still in the correct slot zone. When you start dropping below 80 percent, then it's time to reslot."
3. Keep it simple.
With so many picking methods to choose from—multi-order cart picking, pick and pass lines, zone picking, wave picking—how do you decide which is best for you?
"I find it useful to begin thinking about the simplest one first," says Jim Apple, partner with the consultancy The Progress Group, "and then work toward more sophisticated methods as the volume increases." Examples of simpler solutions would include multi-order cart picking and the use of parallel picking zones, while techniques like wave picking would appear at the other end of the sophistication scale.
4. Don't be afraid to mix and match technologies.
As for what's the "best" picking system for your piece picking operation, there's no simple answer. It's rare that one technology will be a good fit for all the SKUs in your facility, says Jerry Koch, director of product management at material handling solution provider Intelligrated.
For example, you may be able to get by with RF and order carts for your slower-moving SKUs, while the fast-movers might require carton flow racks combined with pick-to-light or voice technology for maximum efficiency. For that reason, says Koch, most facilities will be best served by a mix.
5. Be realistic about your needs.
When choosing a picking system, be realistic about how much accuracy you really need. Although some operations—pharmaceuticals, for instance—may require accuracy rates approaching 100 percent, that's not true of everyone. And it's important to keep in mind that perfect accuracy often requires some sacrifice in productivity.
When buying equipment, take into consideration how much an incorrect pick costs you and how much time your workers spend confirming picks, advises Steve Mulaik, partner with The Progress Group. Then weigh those costs against your need for speed.
6. Be store friendly.
In the past, companies looking to boost distribution productivity typically focused on streamlining activities inside the DC, says Ruehrdanz. Now, however, some retail leaders are finding there are far bigger gains to be made by streamlining operations at the receiving end. Store labor is often more expensive than warehouse labor, which means that anything the warehouse can do to optimize store putaway will likely have a big payoff—whether it's building pallets that correlate to a retail store's planogram or picking an order in the reverse sequence of how it will be replenished at the store. "The cost of one more selector in a distribution center is vastly smaller than the cost of adding an associate per retail store across 30 or 40 stores," says Koch.
7. Make sure your hiring practices reflect the new realities of your operation.
If your operation is doing more piece picking than in the past, you should take that into account when you hire new workers. The physical requirements for piece picking are far different from those for case-level picking, says Mulaik.
"When I go to a grocery warehouse [where case picking predominates], there are huge hulking guys slinging 30-pound cases all over the place," Mulaik observes. "The physical traits that often define success in a piece-pick operation, however, are arm and finger dexterity: peeling a pick label and applying it with one hand while the other hand drops the product into a box, grabbing a packaging invoice off a printer while you simultaneously grab a box to place the merchandise inside."
Mulaik believes this shift in emphasis from physical strength to dexterity opens the field up to more women than ever.
8. Choose equipment and technology that can grow with you.
All too often, companies fail to look down the road when choosing picking technology or equipment and end up outgrowing the system within a few years, says Intelligrated's Koch. To avoid that, Mulaik urges DC managers to select automated equipment with an eye toward flexibility. "You don't want to throw up something without thinking seriously about what may change in the next three years, or you may find that your performance is bounded," he says.
9. If you don't already have one, invest in a robust WMS.
With case or pallet picking, you might be able to get by with a basic warehouse management system (WMS)—or none at all. But that's a lot harder with a complex piece picking operation.
To support a piece picking operation, the experts say, you need a WMS with a robust slotting program. Thomas Gripman, director at The Progress Group, also recommends choosing a system that can select both the optimal size carton and the parcel carrier for each outbound shipment prior to picking. "This minimizes shipping cost, which is one of the highest cost components in an 'each' picking environment," he says. "It also allows orders to be picked directly into the shipping carton, which eliminates additional handling."
10. Don't be a copycat.
Don't design your picking operation from a magazine, says Kuchta. While case studies and best-practice examples can be an excellent source of ideas, you shouldn't apply them wholesale to your operation.
Instead, Mulaik says, explore all the options out there. "There are many more than you would think," he says. "I learn new ones every month or two, and I've been doing this for 20 years."
The drive to get small
What's driving the trend toward smaller orders?
The obvious answer is that the growth of e-commerce has led to more customer-direct shipping. But there are other factors as well.
One is the down economy. "In the last 18 months, even brick-and-mortar retailers have started shipping eaches to their stores not only because sales volumes are down but also because there's a big drive to reduce investment in inventory at the store level," says consultant Jack Kuchta.
That push to cut inventory has led some retailers to adopt what's known as a "continuous replenishment" strategy, says Ken Ruehrdanz of Dematic. "This means replenishing the store shelf more often. In fact, some retailers replenish every store every day. The effect on the distribution center is smaller order sizes [placed] more often."
SKU proliferation also factors into the trend. "Manufacturers just can't seem to resist adding new products," says Jim Apple of The Progress Group. "Without significant top-line sales growth, each new product dilutes the volume of the rest. This creates lower stocking positions at the retail store that need to be replenished in smaller quantities."
Don't expect the trend toward smaller orders to reverse itself anytime soon. If anything—according to Mulaik—orders are getting smaller. "Some retailers this year are telling suppliers that in order to reduce transportation costs and the order size further, they want suppliers to pick 'tiny orders'—less than four units—for [their] stores," he says.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!