Pick and pack services are increasing in popularity. While they may not be the right solution for every product out there, pick and pack services are certainly ideal for many businesses.
The process is simplistic, but the details and logistics behind these services are anything but that. However, when meeting delivery windows starts to become tough, look into what a 3PL company or pick and pack operation can do for you.
What Is Pick and Pack?
Pick and pack services are part of a standard order fulfillment process. The services involve picking the right items and parts from various shelves in the warehouse. Then, all of the products are packed appropriately so that they can be shipped to the customer.
How Does Pick and Pack Work?
While the process of pick and pack services sounds simple, there is a lot of detail that goes into pick and pack services with the goal of ensuring effectiveness and efficiency. It all starts when an order is placed, at which point a packing slip is created.
An employee will then use the packing slip to select the proper items. Then, the employee will choose the proper packing materials to securely pack the items in preparation for shipping.
What Is the Pick and Pack Process?
While the process of pick and pack is simple, it is the details that go into the process and varying methods that help ensure you are operating efficiently with minimal to no errors being made throughout the entire process.
- Step 1: An order is placed and then received.
- Step 2: Create a packing slip for an employee to use when picking the products.
- Step 3: The employee will take the packing slip to the warehouse and then gather the appropriate products for the packing slip.
- Step 4: The products are then packed, both securely and appropriately.
- Step 5: Ensure that the shipping label is accurate before being placed on the package.
- Step 6: The package is moved to the loading dock where it will sit and await to be shipped to the customer.
Guide To Pick and Pack Methods
The process of pick and pack is fairly simple. However, every warehouse is unique and there are several methods to ensure efficiency for each one. The best methods of pick and pack include:
- Piece Picking (Basic or Single Picking): Piece picking involves the picker moving throughout the entire warehouse to pick products for fulfillment of a single order. This method is generally not optimal for large warehouses.
- Batch Picking: Batch picking involves the picker moving throughout the entire warehouse to pick products in bulk by SKUs in order to fulfill multiple orders. Because the picker is picking batches of products for multiple orders, while they are still walking the entire warehouse, they are able to fulfill multiple orders at one time, generally producing a more efficient result.
- Zone Picking (Pick and Pass Picking): Zone picking involves multiple pickers being assigned to varying zones throughout the warehouse. These zones are predetermined and allow the pickers to retrieve products only in their zone. When they have picked all products in their zone, they then pass them on to the next zone for picking. Once all items have been picked from the various zones, it is moved to the final packing stage. This can help alleviate wasted travel in large warehouses.
- Wave Picking: Wave picking involves utilizing both the batch and zone picking methods. This method groups orders into waves, which will vary based on factors including order type, frequency, picking zones, shipment location, delivery date and potential others depending on the warehouse and manufacturer. This allows the pickers to pick SKUs in bulk from their zones and then pass the orders along to the next zones for additional picking.
How to Set Up a Pick and Pack Warehouse
Running an efficient pick and pack process is essential for eliminating waste of time and resources. There are varying ways to effectively set up for a proper pick and pack warehouse and the best one for your operation will depend greatly on your size. The main setup solutions for a pick and pack warehouse will be:
- Placing Like Products Together: This involves organizing your products by category, color and size. While logical, this solution can lead to a higher number of errors and products are so similar and in close proximity with each other.
- Placing Products By Volume: This will involve placing your highest volume products closer to your intake and outtake points. This will generally mean less travel time for the products you need to pick more frequently.
- Chaotic Placement: A chaotic setup involves you placing new products wherever you may have the shelf space to do so. You have new products come in, assign them a SKU and put them where you’re able. While chaotic may sound intimidating to most, it can help eliminate the risk of errors being made while picking.
- Class-Based Placement: A class-based setup will group your products together by the class that you assign them. This will also involve new products being randomly added to any shelf space available that is within the appropriate class. How effective a class-based setup will be could depend on the classes products are assigned. Are you classing them by type of product? Size? How the product needs to be packed? There are many ways to class products and leave this setup open to work for those that can class appropriately for their warehouse.
How Do I Start a Pick and Pack Business?
Do you have a warehouse and you’re thinking about starting a pick and pack operation of your own? Picking, packing and shipping products can certainly be a profitable business for many, but the logistics absolutely need to be considered.
With most investments, starting off with a bit of research is recommended. Your location must be considered, how long will it take to ship items? What is the local competition like? What are the demographics of your area?
Once you’ve completed some general market research, it’s best to implement a strategy of your own so that you can determine your business plan. You have several options when looking to start your own pick and pack business.
You can buy into an already successful franchise, open your own independent operation or purchase an existing pick and pack store. All three options have benefits to offer and which one could be best for you will depend on your budget, business plan and more.
With a business plan in place, you then need to consider the proper licenses and permits that are required to run this form of operation. You will need to obtain a business license and quite possibly a retail sales license.
Your local city’s government will be able to provide you with a complete list of required licenses and permits. If you are running a large enough operation to require employees, you will need to get in touch with the IRS about employee and employer requirements as well.
Obtaining taxpayer and employer identification numbers will be required if you are looking to hire employees. While you should have included this in your business plan, determining the location for your warehouse is critical.
With a location determined, you can then look into the equipment you will need. Even a small pick and pack warehouse will need several items including packaging materials, shelving and proper materials for organizing products and inventory, label printers, barcode printers and scanners, computers and more.
Perhaps the most imperative part of any pick and pack warehouse is the logistics they use. Ensuring proper inventory management, minimal to no errors in picking and shipping, fast shipping times and more are all factors that will help you succeed in operating a pick and pack business of your own.
Example of Pick and Pack
An example of pick and pack would be a situation in which a customer creates an order. Then, that order is sent to the fulfillment warehouse.
Once the packing slip is created, the picker can then go through the warehouse and pick the appropriate items for the order. The picker will either take the products to be packed or they will pack the products themselves depending on the nature of the warehouse.
Once all of the products have been securely packed, a shipping label will be created and then attached to the box. From there, the box can be moved to the loading dock where it will await being picked up by a carrier. The appropriate and determined carrier will then come pick up the box and begin its shipment to the customer.
Things To Consider With Pick and Pack
With varying methods and layouts for pick and pack warehouses, customizing your warehouse to suit your operation’s needs can easily be done when you know which factors to consider.
Which Pick and Pack Method Suits Your Business
The size of your business is one of the greatest factors that you need to consider when looking at pick and pack methods. What is the size of your warehouse? How many orders are you fulfilling each day? These, as well as other, questions are important to address.
Which Pick and Pack Method Suit Your Product Lineup
While these operations can streamline the shipping operations of many businesses, not all products are ideal for a pick and pack warehouse. Large, bulky items that don’t store or ship well, in addition to products that are heavy or hard to handle, can be a hassle.
They may often require the use of additional equipment, which will likely result in more costs on your end. Fragile products that require special handling and packaging material aren’t generally recommended either.
Items like clothes, shoes, textiles and the like can be great products to consider for a pick and pack warehouse as they can be stored easily. They are easy to pick and pack easily, either on their own or as part of a package deal, all without worrying about breakage.
Cost Effectiveness of Pick and Pack
Utilizing a pick and pack warehouse can certainly be a cost-effective solution for your business, but again, whether or not this is actually accurate will depend on your products. If your products require additional handling or steps for picking and packing, these costs will likely eat into your profits, ultimately not paying off.
Advantages of Pick and Pack
Here are a number of advantages that you can benefit from when you properly implement pick and pack within your business.
- Improve efficiency
- Save time
- Cost-effective
- Lower your operational costs
- Decrease the amount of resources wasted
- Reduce errors
- Increase organization
- Increase productivity
- Increase customer service and satisfaction
Disadvantages of Pick and Pack
If you do not implement the proper methods or layouts in your warehouse, there are disadvantages of pick and pack to consider as well.
- Increased traffic in warehouse
- Increased errors
- Decreased productivity
- Not ideal for all products
Pick and Pack vs DIY Fulfillment
Choosing between pick and pack vs DIY fulfillment is a decision that depends on the best route for your business. Either way, these are both great options to choose between but the better of the two will depend on your products, how big they are and so much more.
If you’re running a small operation with large, fragile or time-sensitive products, it may be more cost-effective for you to pack and ship these items yourself. That said, this can result in you quickly outgrowing your own business.
Managing the shipment process yourself can have its perks, but the software solutions that pick and pack services often provide are appealing, and it’s for a great reason. While shipping by yourself can yield less overhead, you still have to consider potential hassles as well.
Are You Outgrowing Yourself?
Pick and pack solutions continue to gain popularity all over the world, and there’s no sign of this slowing down seeing as shopping levels continue to increase. As a business, it is easy to outgrow your operations, meaning what once worked for you may no longer yield the same effects.
Utilizing the right company for your picking, packing and shipping services could be the cost-effective and hassle-free solution you’re looking for to streamline your operations. Just know that the order fulfillment process requires that you pay a lot of attention to detail.
So, if you’re going it alone, the process can become overwhelming increasingly quickly. Knowing what a pick and pack warehouse can do for you can help you better understand if it’s the best choice for your business.
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