Pick and Pack Fulfillment Strategies To Improve Warehouse Management (2024)

Early 20th-century warehouses were often cramped, poorly lit spaces where workers manually sorted stacks of goods, jotting down orders on paper and filling them manually—a slow, error-prone process.

The introduction of computerized inventory systems in the 1980s marked a turning point. Barcodes and affordable scanners enabled real-time tracking, reducing mistakes and speeding up order processing. The late 1990s saw another significant transformation to accommodate the surge in ecommerce. With online orders flooding in for the first time, businesses needed a more efficient method for fulfilling orders.

Pick and pack fulfillment solved the problem by combining advanced software, optimized layouts, and skilled workers to handle orders at unprecedented speeds. Here’s how pick and pack fulfillment works, along with implementation strategies for your business.

What is pick and pack fulfillment?

Pick and pack fulfillment is an order fulfillment process where warehouse staff retrieve (pick) specific items from inventory based on customer orders, then carefully package (pack) them to ensure safe transit and customer satisfaction. This method is commonly used in ecommerce and retail to efficiently handle orders of multiple items.

Technology like a warehouse management system (WMS), barcode scanners, and inventory management software all work together in this process to minimize errors and speed up shipping times.

You can manage your pick and pack services in-house using your own facilities and staff, or outsource to third-party logistics providers (3PLs). 3PLs specialize in order fulfillment, offering expertise, scalability, and often cost savings, making them an attractive option for businesses focusing on core business operations while leaving logistics to the experts.

Pick and pack fulfillment process

1. Order receiving
2. Order picking
3. Order packing
4. Order shipping

The pick and pack process ensures your products reach customers quickly and in perfect condition. Here’s how it breaks down into four key stages:

1. Order receiving

The journey begins when a customer places an order on your website. Your WMS instantly processes the order, converting it into actionable steps for your warehouse staff. The WMS assigns each order a unique identifier and prioritizes it based on factors like shipping method.

2. Order picking

Next, your warehouse staff members start the pick processes. Guided by the WMS, they navigate your pick and pack warehouse or fulfillment center using optimized routes to locate the items. Advanced systems might use voice-directed picking or light-guided systems to accelerate this process. Pickers scan each item for confirmation and to update stock levels.

3. Order packing

After picking, they move to the packing station. Here, the pack fulfillment team selects appropriate packing materials based on size, fragility, and item value. They use materials like boxes, bubble wrap, or air pillows to ensure product safety. Packers also include a packing slip detailing order contents and return information.

4. Order shipping

The packed order is now ready for shipping. Your team applies shipping labels generated by your WMS, which has already calculated the most cost-effective shipping method based on order value, weight, and delivery speed. They then hand off packages to your chosen shipping carriers. Your WMS tracks every step in the journey, providing real-time updates on order status.

Picking strategies

Here are some picking strategies to choose from:

Piece picking

Piece picking, also known as discrete picking, is the simplest method. A picker completes one order at a time, moving through your warehouse, collecting items for a single order before moving on to the next order.

This method is ideal for businesses that have low order volumes or deal with large, complex products that require individual attention. For example, a custom furniture retailer might use piece picking to carefully select and inspect each unique, handcrafted item.

Batch picking

Batch picking involves collecting items for multiple orders in a single trip through the warehouse by grouping similar orders.

This strategy reduces travel time and is effective for businesses dealing with numerous small orders in a large warehouse space. An online beauty retailer, for instance, might batch-pick orders for lipsticks, gathering all “Ruby Red” shades for the day’s orders in one efficient warehouse run.

Zone picking

In zone picking, your warehouse is divided into sections or zones, often based on product type or demand frequency. Each picker is assigned a zone and is responsible for picking all items within that area. Orders requiring items from multiple zones are passed sequentially from one zone to the next.

This method is excellent for large warehouses or when specialized handling is needed for certain products. For example, a large sports equipment retailer could have one zone for apparel, another for footwear, and a third for equipment to ensure specialists handle fragile items.

Wave picking

Wave picking combines elements of batch and zone picking by creating “waves” of orders based on shipping priority, product type, or carrier routes. Pickers then work on these by zone or batch. This strategy is ideal for high-volume businesses, as it prioritizes urgent orders while leveraging batch efficiencies.

During a holiday sale, a major book retailer might create one wave for overnight shipping orders across all zones, ensuring priority orders are picked and shipped first, followed by waves for standard shipping.

Packing strategies

The packing process is more than just putting items in boxes; it’s about efficiency, cost-saving, and improving the customer experience. By implementing smart pack processes, you can streamline your fulfillment services, reduce shipping costs, and leave a lasting impression on your customers. Here’s how:

Kitting

Kitting involves pre-assembling related products into ready-to-ship packages. In your fulfillment centers, workers at packing stations gather items that frequently sell together and package them in advance.

For example, a skin care company might notice that customers often buy the same set of moisturizers, toners, and cleansers. When an order comes in for those items, pickers grab the pre-made kit instead of individual items. Kitting is slightly different from bundling, a strategy in which brands specifically market curated collections of products.

Cartonization

Cartonization uses algorithms to determine the optimal box size and packaging materials for each order. Instead of defaulting to a few standard box sizes, cartonization software analyzes item dimensions and fragility to recommend the smallest suitable box and the most efficient arrangement.

This strategy minimizes wasted space, reduces void fill, and can significantly cut shipping costs by reducing dimensional weight charges.

Branded packaging

Branded packaging elevates a basic packing process into a brand-building opportunity. Instead of generic brown boxes, you use custom-designed boxes, tape, or inserts that feature your logo, colors, and brand messaging.

Whether it’s a colorful box from a toy company or a fabric-lined jewelry box from a high-end retailer, branded packaging enhances the unboxing moment, boosts perceived value, and encourages social media sharing.