What is Order Picking? A Beginner's Guide

Order Picking is the foundational activity in warehouses and fulfillment centers where individual items are collected from storage locations to assemble customer orders. For a beginner, think of it as the act of walking through a storehouse with a shopping list and gathering everything a customer needs so that the order can be packed and shipped. Although simple in concept, order picking has outsized effects on costs, delivery speed, and customer happiness.

Why order picking matters

• Customer experience: Accurate picking reduces returns and complaints, ensuring customers receive exactly what they ordered.
• Cost control: Labor for picking typically represents one of the largest operating costs in a warehouse. Improving picking efficiency directly lowers per-order cost.
• Throughput and scaling: Fast, reliable picking enables a business to handle more orders without proportional increases in labor or space.

Basic steps in a typical order picking workflow

1. Order release: A list of orders to be fulfilled is generated from the order management system or warehouse management system (WMS).
2. Task assignment: Picks are assigned to workers, either manually by a supervisor or automatically by the WMS based on location and workload.
3. Travel to pick locations: The picker moves through the warehouse to the items' storage locations.
4. Pick the items: Items are removed from shelves, cartons, or totes and staged for packing. The picker confirms quantities—manually or with technology.
5. Transport to packing: Picked items are taken to packing stations or consolidated into shipping containers.
6. Verification and handoff: Final checks are made, orders are packed, labeled, and shipped.

Common metrics that beginners should know

• Pick accuracy: Percentage of picks without errors. High accuracy reduces returns and rework.
• Picks per hour: Measures productivity for individual pickers or workstations.
• Travel time per pick: Travel between locations often consumes most of the time; minimizing travel improves throughput.
• Order cycle time: Time from order release to shipment—useful for measuring end-to-end performance.

Simple, real-world example

A small e-commerce company selling apparel receives 200 orders a day. Without a formal order picking process, workers hunt for items across the warehouse and make mistakes. By introducing basic slotting (placing fast-moving shirts close to the packing area), batching orders with similar SKUs, and giving workers clear pick lists, the company reduces travel time, raises picks per hour, and cuts packing errors. Customers receive correct items faster, reducing returns and improving reviews.

How technology helps beginners get started

• Pick lists: The simplest improvement is to use digital or printed pick lists organized by an efficient route.
• Barcode scanning: Using handheld scanners ensures you pick the correct SKU and quantity, boosting accuracy.
• Basic WMS: Entry-level WMS platforms add intelligent tasking and slotting suggestions without needing complex integrations.

Common beginner-friendly improvements

• Slotting basics: Place high-volume SKUs in easy-to-reach, central locations and group similar items together.
• Batch similar orders: Picking the same SKU for multiple orders at once reduces repeating travel.
• Clear labeling: Well-labeled aisles and bins speed up location finding.
• Standard work: Document the picking process and train staff on a consistent method.

Things to avoid when starting out

• Ignoring data: Decisions based on intuition rather than SKU movement data often lead to inefficiencies.
• Overcomplicating early: Introducing advanced automation before understanding fundamentals can waste time and money.

In short, Order Picking is where the rubber meets the road in fulfillment. For beginners, focus on accuracy, reducing travel, and using simple technology like barcodes and pick lists. Small, incremental improvements deliver measurable benefits and make higher-level investments easier and more effective down the road.