Order picking takes place in the warehouse, but it directly feeds the success of online operations. For online retailers, it is key to ensuring the right item ends up in the customer’s hands. A single misstep can result in a dreaded “mis-pick.”
In this comprehensive guide, we will discuss the order picking process needed to elevate your ecommerce game. We’ll explore the cost of mis-picks, as well as how to minimize errors to achieve a healthier supply chain.
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Key Takeaways
- Online shoppers expect perfect order, making order accuracy crucial for online retailers.
- Mis-picks in a warehouse lead to costly setbacks, unhappy customers, missed sales opportunities, and damage to your brand.
- Having a high fulfillment accuracy rate is vital for online retailers.
- Using a WMS, barcode scanning, accuracy checks, and other strategies minimizes mis-picks and returns.
- Using a smart picking strategy directly impacts order accuracy and warehouse efficiency.
Watch the video above to see Logiwa IO’s innovative allocation algorithm.
Order Picking Accuracy: The Ultimate Asset for Online Retailers
Online retailers operate in a high-stakes market where customers expect fast, accurate deliveries. mis-picks lead to mis-shipments, lower fulfillment accuracy and risk the stability of your business.
In fact, 81% of consumers will stop purchasing from a business if they receive an inaccurate order more than once.
In this digital age, consumer happiness drives retail standards. This makes having a high level of picking accuracy the new competitive advantage.
The Consequences of Low Order Picking Accuracy
When a mispick occurs, it means you have picked and shipped the wrong item to a customer. It may seem like a small mistake, one that can be remedied. But in the face of competitive market standards, one order picking mistake is enough to lose customers forever.
Consider the effects of mis-picks on online retail success:
Setbacks for Your Operation
Mis-picks create a cascade of challenges. Correcting these errors requires a great deal of resources. Managing returns, re-shipping orders, and assisting unhappy customers are just the tip of the iceberg. The result of failed order accuracy leads to financial losses, backorders, and chaos in your order fulfillment processes.
Unhappy Customers
Customer satisfaction is your ultimate guide when navigating ecommerce. mis-picks during warehouse order picking make it hard to succeed. The frustration customers feel when they receive incorrect items quickly turns into actions that tarnish your brand. This includes receiving negative reviews that deter potential buyers.
Missed Sales and Costly Returns
Mis-picks lead to costly returns and drain future revenue. Lost sales opportunities grow as customers to seek other retailers capable of better order accuracy. The ripple effect of negative reviews and returns create a cycle that deters new buyers. Improving order picking accuracy will improve your bottom line.
Wasted Resources
Order picking errors and mis-shipments deplete resources. They require employees to switch to time consuming corrective processes. Mis-picked items and returns often become unsellable, resulting in inventory losses.
Fulfillment accuracy rate can show you the percentage of orders you are filling without errors. Having a high accuracy rate is paramount for online retailers, as it leads to customer satisfaction. A high accuracy rate not only reduces costs but enhances your brand. This encourages buyers to return to your online store in the future.
To learn more, check out Logiwa’s blog, “What Warehouse KPIs to Track Depending on Your Fulfillment Goals.”
Warehouse Order Picking Strategies for Improving Fulfillment Accuracy
For online retailers, the margin for error narrows with each passing day. This makes it important to do everything in your power to achieve order accuracy. Today’s high level of order picking accuracy requires the help of technology and competitive picking methods.
Here are the top strategies and solutions for minimizing mis-picks and making order accuracy an art form.
Smart Warehouse Management Systems (WMS)
Using a WMS for managing inventory is key to boosting order accuracy. It enhances picking processes and provides real-time visibility into order accuracy. Moreover, it reduces mis-picks with smart item allocation.
Barcode Scanning Technology
Adopting barcode and mobile scanning technology in your fulfillment centers helps employees pick the correct products. This technology helps you reduce errors caused by manual processes by checking product barcodes against order details. It can even recognize and flag mistakes to prevent mis-shipments.
Checks During Warehouse Order Picking
Verifying orders at multiple checkpoints reduces mis-picks by ensuring accuracy at each stage of the fulfillment process. Having a second or third set of eyes review an order’s contents increases order accuracy.
This double-check process acts as a vital safeguard against errors. Scanning barcodes across each stage of workflows makes this added step even easier.
Data-Driven Improvements
Analyzing order data to identify trends related to order accuracy and error rate. These insights allow you to root out the source of issues to prevent future mistakes. This may include changing picking processes, re-training employees, or improving your warehouse.
Regular Audits and Order Accuracy Checks
Keeping an eye on your overall results matters. Conduct audits and checks of your fulfillment accuracy rates often. Evaluate inventory accuracy, workforce performance, and efficiency statistics.
Alerts and Error Messages
If mis-picks occur, you need processes in place to quickly resolve them. Establish clear, swift procedures for fixing order picking errors. This includes getting items returned to pick locations and orders reprocessed without creating more disruptions.
Incorporate Customer Feedback
Listening to customers helps improve order accuracy. When customers share feedback on their experiences, you can use that feedback to prevent repeat mistakes. Going above and beyond to correct mistakes rebuilds customer trust and loyalty.
Order accuracy positions your online retail business for success, and it starts with warehouse order picking.
Warehouse Order Picking Strategies that Win
Using the right warehouse order picking strategy is a game-changer. It improves online retail results by making picking as fast and accurate as possible.
Here are three examples of efficient order picking methods:
- “Zone picking” divides warehouses into specific zones, where each picker is in charge of a certain area. This approach minimizes the chances of mis-picks as each picker becomes an expert for their zone. It takes a pick and pass approach to keep orders moving.
- “Batch picking” involves picking multiple orders at the same time. It reduces picking time and minimizes errors by grouping similar order items together.
- “Pick-to-light” or “put-to-light” systems use visual cues like lights to guide pickers to the correct items and quantities. By limiting manual processes and guiding actions, pick-to-light systems lead to better picking accuracy rates.
Today’s picking systems aid order accuracy and warehouse efficiency. Learn which method is right for your operations. Download Logiwa’s guide, “Selecting the Best Picking Strategy for DTC Operations.”
Smart Picking: The Future of Order Picking
Smart picking, driven by AI, has greatly improved order accuracy and efficiency for online retailers.
Unlike traditional picking methods, smart picking considers factors like order priority, item locations, and available labor. It uses smart software rules to create efficient pick jobs. This allows it to create an optimized pick jobs, leading to:
- Fewer order errors
- Enhanced warehouse productivity
- Quicker delivery times
- Higher customer satisfaction
- Reduced costs
The better your order picking is, the better your fulfillment accuracy rate will be. As a result, your customers will have a positive shopping and delivery experience.
Say Goodbye to Mis-picks for Good
In an era where customers expect perfection, order accuracy can set your business apart. Safeguard your ecommerce business using a cloud native solution like Logiwa WMS. Our solution prevents mis-picks and helps you fulfill customer orders with high levels of precision.
For your online retail operations to grow, you need to fulfill orders brilliantly. Our platform uses leading warehouse automation technology, including smart picking algorithms and alerts, to ensure fast, accurate deliveries.
Logiwa is more than a WMS- it’s a complete fulfillment solution. Learn more about achieving high-volume success by requesting a demo.
FAQs Related to Order Picking
What are mis-picks when referring to warehouse operations?
When you pick and ship an incorrect item as part of an order, it is a mispick. This type of fulfillment error occurs because the product does not match the customer’s request. This leads to misshipments, returns, and unhappy customers.
How can I prevent mis-picks from occurring in my ecommerce warehouse?
To prevent mis-picks, implement strategies such as using advanced technology like warehouse management systems (WMS) and barcode scanners. You can also conduct quality checks, employ smart automation technology, and modern strategies like voice picking.
What is a fulfillment accuracy rate for ecommerce businesses?
Fulfillment accuracy rate is the percent of orders fulfilled without errors. It indicates how well an operation is performing. Divide the number of accurately fulfilled orders by the total number of orders processed. Then multiply by 100 to express it as a percentage.
How does picking accuracy affect online retailer business?
High picking accuracy means customers receive the correct items. It leads to brand satisfaction, repeat business, and positive reviews. Low picking accuracy can result in logistics problems, increased costs, and even the failure of a business over time.
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