KPI #9- Achieving Precision in Order Picking: Enhancing Accuracy in Warehouse Operations 

Order picking, also referred to as the warehouse picking process, is the activity of selecting items from a warehouse’s inventory to fulfill the orders placed by your company’s customers. It’s a labor-intensive task that necessitates both speed and precision. The efficiency of the order picking process is crucial, as the time taken to prepare an order significantly impacts its timely shipment. This blog post aims to explore the significance of this KPI, strategies for its measurement and improvement, and the impact of high order picking accuracy on overall supply chain performance. 

Order Picking Supply Chain KPI

Understanding Order Picking Accuracy 

Order picking accuracy refers to the degree to which items are correctly picked from the warehouse for customer orders. It is a critical measure of operational efficiency and customer satisfaction. High accuracy in order picking leads to fewer returns, reduced waste, and enhanced customer trust. 

Measuring Order Picking Accuracy 

To effectively manage this KPI, warehouses must implement a robust system for tracking and improving it: 

Defining Accuracy

Clearly define what constitutes accurate picking in your warehouse. This includes correct item, quantity, and condition. Sometimes this could include correction location, correct Lot# and Serials as well. 

Calculating the KPI

Order picking accuracy can be calculated using the formula: 

Regular assessment of this KPI provides valuable insights into picking performance and areas for enhancement. 

Strategies for Enhancing Order Picking Accuracy 

1. Streamlining the Picking Process 

Optimized Layout: Design the warehouse layout to minimize travel time and facilitate easy access to frequently picked items. 

Picking Strategy: There is no one-size-fits-picking strategy. There are various picking strategies such as order picking, each picking, cluster picking, zone picking, and wave picking.   

2. Leveraging Technology 

Barcode Scanning: Use barcode scanning technology to verify items during picking, reducing human error. Propel Apps’ platform enables you to confirm location (storage bin/storage location), quantity, batch/lot numbers, and serials.  

Warehouse Management Systems (WMS): Employ WMS features in SAP S/4 HANA or Oracle Fusion Cloud to guide pickers through the most efficient picking routes and verify accuracy. 

3. Automated Picking Solutions 

Robotic Systems: Consider the use of automated picking robots that can increase speed and accuracy, especially in high-volume environments. 

Voice Picking Technology: Implement voice-directed picking systems to allow hands-free operation and reduce errors. 

4. Training and Workforce Management 

Regular Training: Provide continuous training to staff on best practices, new technologies, and error prevention in order picking. 

Performance Monitoring: Monitor individual picker performance to identify areas for improvement and provide targeted training. 

5. Continuous Process Improvement 

Feedback Loop: Establish a system to collect and analyze feedback from pickers and other staff to identify bottlenecks and improvement opportunities. 

Quality Control Checks: Implement quality control checkpoints throughout the picking process to catch and correct errors promptly. 

6. Data-Driven Decision Making 

Analytics and Reporting: Utilize analytics tools in your ERP system to analyze picking accuracy data, identify trends, and make informed decisions to improve processes. 

Customized KPIs: Set tailored accuracy goals for different product lines or picking zones to continuously challenge and improve the process. 

Conclusion: The Path to Flawless Fulfillment 

Enhancing ‘Order Picking Accuracy (Percent by Order)’ is not merely about reducing errors; it’s about striving for excellence in warehouse operations and customer service. By implementing these strategies, warehouses can significantly improve their picking accuracy, leading to more efficient operations, reduced costs, and higher customer satisfaction. In today’s competitive logistics landscape, achieving high order picking accuracy is a crucial element for operational success and a strong competitive advantage. 

Propel Apps’ enterprise mobile supply chain solutions offer superior features including label printing, barcode scanning, third-party apps integration, top-notch security, and even robust offline capability. To know how Propel Apps’ supply chain solutions can transform your warehouse distribution, schedule a call today

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