Warehouse picking and packing is the two-stage fulfillment process of retrieving ordered items from storage (picking) and preparing them for shipment (packing). Done well, this workflow cuts fulfillment time, reduces shipping errors, and keeps customers coming back.
The right warehouse picking and packing system balances inventory management technology, accurate barcode scanning, and communication between staff. This guide covers the pick and pack process, methods to match your order volume, and strategies that make every trip through the warehouse count.
Key takeaways
- Warehouse picking and packing accounts for the largest share of warehouse operating costs, so even small efficiency gains pay off quickly.
- Choosing the right picking method for your order volume and product mix reduces travel time and errors.
- Barcode scanning and warehouse management software keep inventory counts accurate and route pickers to items faster.
- Fishbowl customer Mendingshed cut picking time from two hours to about 15 minutes per 100 orders after adopting location-based picking workflows.
What is picking and packing?
Picking and packing are processes that take place in a warehouse after an order comes in and ahead of shipping the product to an end user.
First, you use a pick list to locate and retrieve products from their storage locations within the warehouse. Then, you pack those products, placing the items into boxes along with any documentation and packing materials. After that, the package is ready to ship to consumers.
Why is warehouse picking and packing efficiency important?
According to research published in the journal Applied Sciences, order picking can account for 50–75% of a warehouse’s total operating costs. When the bulk of your labor budget goes toward retrieving items, any wasted motion shows up fast on the balance sheet.
Customers expect speed, too. The AlixPartners 2024 Home Delivery Survey found that shoppers now expect roughly 3.5-day delivery. About 25% would abandon a retailer after a delivery miss. Accommodating that demand for fast fulfillment requires a streamlined picking and packing process.
A smooth workflow helps your team complete orders with minimal errors so customers receive items on time. It also helps prevent product damage that reduces profitability and fuels customer churn.
What are the steps in the pick and pack process?
Warehouse picking and packing consists of four steps: receiving, picking, packing, and shipping. Here is how they fit into your fulfillment workflow.
1. Receiving
The process begins when you receive an order. Your warehouse management system (WMS) creates a packing slip for each one, giving workers all the information they need to pick and pack accordingly. This includes the number of items, where they are in the warehouse, and any other specifications.
2. Picking
The picking stage involves locating and retrieving products from their storage spots. Picking strategies vary depending on the warehouse’s size, the variety of items, and order volume.
3. Packing
The goods then go to a packing station, where a team carefully prepares everything for shipping.
Packing involves more than tossing items in a box. It requires selecting the right materials to protect items during transit, such as dunnage (packing peanuts, paper, and anything else that prevents the product from shifting). The goal is to make the package compact without compromising safety or producing waste.
4. Shipping
The final step in the pick and pack process is shipping, where the team sorts and labels orders for dispatch. Work with reliable carriers that balance cost, speed, and reliability.
Make sure you also have a system for tracking packages and giving customers updates so they know when their orders will arrive. This limits strain on your customer support from inquiries.
What are the main warehouse picking and packing methods?
Choose a picking and packing strategy that matches your order volume and product needs. These four methods help warehouses of different sizes maximize efficiency.
1. Piece picking
The piece picking method involves collecting items for single orders as they come in. This approach is straightforward and effective for small operations with low order volumes, but can become inefficient as volume grows.
Consider a custom candle maker shipping from a spare room. An order comes in, they walk to their shelf to retrieve the item, then pack it in the appropriate box. Each order requires a separate trip. A larger business that gets multiple orders a minute needs a more efficient process because constantly walking back and forth takes too much time.
2. Batch picking
The batch picking method groups orders into small batches. During each picking run, the fulfillment team collects items for multiple orders in a single trip through the warehouse. This method reduces time spent moving between picks, improving efficiency for warehouses with high order volumes of similar items.
Take a T-shirt retailer that receives five orders for the same shirt in five different sizes. Instead of picking these orders individually, the picker grabs all five items in one trip since they sit next to each other on the shelves. Learn more about how batch picking works.
3. Zone picking
With zone picking, you divide the warehouse into different areas and assign pickers to specific zones. Each picker finds items from their zone. This method is particularly effective in large warehouses with diverse inventories because workers only focus on their section.
Divide the warehouse into as few or as many zones as necessary to promote efficiency. If your warehouse is exceptionally large, you can designate each aisle as a separate zone.
4. Wave picking
Wave picking combines batch and zone picking. Workers organize orders into zones, and pickers retrieve all items within their zone for multiple orders during each run. You can optimize this method by scheduling waves based on delivery routes or shipping priorities.
The largest and most complex warehouses rely on wave picking because it offers the ideal combination of efficiency and accuracy. Workers can focus on their designated zones and complete picking runs in batches to avoid unnecessary travel time.
What is the difference between picking and packing?
Picking and packing happen sequentially, but they serve different purposes.
Picking: Locating and retrieving items from inventory based on a pick list. The picker walks (or drives) through the warehouse, collects the products for an order, and delivers them to a packing station.
Packing: Preparing retrieved items for shipment. The packer selects the right box size, adds protective materials, inserts documentation such as invoices or return labels, and seals the package for handoff to a carrier.
A simple example: a customer orders a ceramic mug. The picker locates the mug on shelf B-12, scans the barcode, and carries it to the pack station. The packer wraps the mug in bubble wrap, places it in a box with a packing slip, tapes the box, and applies the shipping label.
What are the best practices for warehouse picking and packing?
Establishing best practices in your warehouse improves efficiency and accuracy. These strategies make a measurable difference.
1. Plan your routes
Optimizing picking routes drastically reduces travel time, increasing the number of orders you can fulfill per hour. A successful WMS analyzes order data and creates efficient picking paths for you. The goal is to minimize redundancy and save time.
Imagine one of your fulfillment team members receives three orders. Without proper route planning, they would take three trips to pick up items as the orders come in. With solid planning, they would take one trip, walking past the items for orders two and three on their way to order one. Less backtracking means faster fulfillment.
2. Choose an efficient storage method
Implement storage solutions that align with your inventory’s size, shape, and turnover rate. Store high-volume items in easily accessible locations to save time and make picking easier for staff.
Vertical space matters too. Extending shelves upward organizes items while maximizing your warehouse’s carrying capacity. Just make sure you implement safety requirements to help staff reach items easily.
3. Use barcodes to prevent errors
Barcodes are one of the best pick and pack solutions for reducing errors and boosting efficiency. Pickers scan items as they retrieve them, and the platform automatically updates your inventory log, so counts stay accurate item by item. You can also integrate scanning software with WMS technology to facilitate better route planning.
4. Adopt warehouse management tech to maximize efficiency
The right warehouse management technology can make or break your picking and packing process. Features to look for include:
- Directed pick paths: Route workers to items in the most efficient order.
- Barcode-verified picking: Catch errors before they leave the warehouse.
- Real-time stock visibility: See inventory across every location.
- Mobile picking: Let workers confirm picks on the floor.
When an order comes in, the WMS tells your team which items to pick, where they are, and in what order to pick them. Inventory software also manages stock across multiple locations so you can maintain accuracy and guard against stockouts.
The key is to find a platform that integrates with your existing technology suite. A well-connected WMS acts as a single source of truth for stock, sales, and other business data.
Fishbowl customer Mendingshed, an appliance repair and spare-parts business in Orem, Utah, cut picking time from two hours to roughly 15 minutes per 100 orders. They achieved this using location-based picking, inventory management, and location sort order in Fishbowl Warehouse.
If standard reports do not cover the metrics you need, Fishbowl AI Insights lets you generate custom dashboards and reports in plain language, without SQL or custom report requests.
How do you measure picking and packing efficiency?
Tracking the right metrics shows where your fulfillment process excels and where it needs attention. These key performance indicators (KPIs) give you a clear picture:
- Order accuracy rate: The percentage of orders picked and packed without errors. Higher accuracy means fewer returns and happier customers.
- Orders picked per hour: The number of orders a picker completes in 60 minutes. Improvements in routing, storage layout, or technology should move this number up.
- Order cycle time: The elapsed time from order receipt to shipment. Shorter cycle times translate to faster delivery.
- Perfect order rate: The percentage of orders delivered on time, complete, undamaged, and with correct documentation. This metric captures the full customer experience.
Review these KPIs regularly and compare results before and after process changes to confirm that new methods are working.
Frequently asked questions about warehouse picking and packing
What is the difference between batch, zone, and wave picking?
Batch picking groups multiple orders together so a picker can collect items for all of them in a single trip. Zone picking assigns pickers to designated areas of the warehouse, and each picker handles only the items in their zone. Wave picking combines both: orders are grouped into batches, organized by zone, and scheduled in waves based on shipping cutoffs or carrier pickups.
How can I improve picking accuracy in my warehouse?
Barcode scanning is the fastest way to reduce mispicks because it verifies each item at the point of retrieval. Pairing scanners with a WMS that directs pickers to the correct location adds another layer of accuracy. Slotting high-turnover items at ergonomic heights and training staff on consistent workflows also helps. Consider running regular cycle counts to catch discrepancies before they compound, and schedule brief huddles with pickers to review common error patterns.
What is a pick list and can you give an example of pick and pack?
A pick list is a document (paper or digital) that tells the picker which items to retrieve, where to find them, and in what quantity. A sample entry might show “SKU 4421, Qty 2, Aisle C, Bin 7.” The picker scans the bin, retrieves two units, and confirms the pick. At the pack station, the packer wraps the items, adds a packing slip, seals the box, and applies the shipping label.
How often should I review my picking process?
At minimum, review your picking process quarterly using KPIs such as orders picked per hour and order accuracy rate. Each quarter, compare current numbers to the previous period and document what changed. Run an additional review any time you add new product lines, change warehouse layout, or see a spike in mispicks. Triggers that justify an extra audit include new SKU counts exceeding 10%, a warehouse relocation, or accuracy dropping below your target threshold.
Streamline your warehouse operations with Fishbowl
Harmonizing warehouse picking and packing, inventory management, and sales-order processing keeps orders moving out the door accurately and on time. Fishbowl brings these workflows together in one platform.
Fishbowl lets you optimize your picking and packing processes for peak accuracy at every step. The platform even integrates with QuickBooks, bringing all your financial and stock data together under one roof.
Book a demo today to learn more about Fishbowl’s comprehensive inventory and warehouse management platform.
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