Order Picking and Picking

Order picking and picking form the heart of every warehouse operation in e-commerce fulfillment. In this step, goods are taken from inventory, assigned to customer orders, and prepared for the subsequent packing and shipping process. Efficient order picking directly determines delivery speed, pick accuracy, and ultimately customer satisfaction. Those who treat picking as a mere side task miss significant optimization potential – especially with growing order volumes and rising expectations for same-day and next-day deliveries.

What Is Order Picking and Picking?

Order picking refers to the entire process of assembling goods for one or more orders according to demand. Picking is the operational core step: the physical removal of items from storage locations. Both terms are often used synonymously in practice; technically, however, order picking also includes order planning, Picking List creation, quality control, and handover to packing.

In a typical fulfillment workflow, order picking follows goods receipt and put-away and precedes packing and shipping. It thus connects inventory management with operational order processing.

Process Flow: Pick-Pack-Ship in Fulfillment

Distinction from Adjacent Processes

Why Picking Is Critical for Fulfillment

Picking is the most labor-intensive and time-consuming process step in most warehouses. Studies from warehouse logistics show that up to 55 percent of total warehouse labor time is spent on order picking. At the same time, most errors occur here: wrong items, wrong quantities, or mixed-up variants lead to returns, complaints, and additional costs.

The most important levers at a glance:

• Delivery Time: Faster picking shortens the time from order receipt to shipment
• Costs: Optimized travel paths and strategies reduce labor costs per order
• Quality: Scan-based picking significantly reduces error rates
• Scalability: Consistent processes enable growth without proportionally increasing errors

Pick Strategies at a Glance

The choice of the right pick strategy depends on Orders per Day, product variety, warehouse layout, and available technology. No strategy is universally optimal; many successful operations combine several approaches depending on time of day or order type.

Single-Order Picking

With single-order picking, one employee processes exactly one order from start to finish. They work through the pick list, collect all items, and bring them directly to the packing station.

Advantages:

• Low risk of mixing up orders
• Easy onboarding for new employees
• Ideal for small warehouses and low daily volume

Disadvantages:

• High travel distance with many orders
• Low efficiency with high order volume

Multi-Order Commissioning and Wave Picking

With batch picking, multiple orders are picked simultaneously: the picker collects items for several orders in one pass and then sorts them by order. Wave picking groups orders temporally into waves – for example, all orders by 12 noon in one wave.

Zone Picking

With zone picking, the warehouse is divided into areas. Each picker is responsible for one zone and picks only the items in their area. Orders move as containers or pick carts through the zones and are consolidated at the end.

This strategy is particularly suitable for large fulfillment centers with a clearly structured warehouse layout and shelving systems.

Pick Strategies by Operation Size

The Order Picking Process Step by Step

A structured approach reduces errors and speeds up processing. The following workflow is considered best practice for manual and partially automated warehouses:

1. 001. Order receipt and release in ERP or shop system
2. 002. Reservation of required items in inventory (soft allocation)
3. 003. Creation of pick list with optimized Pick Route sequence
4. 004. Assignment to picker (manual or via WMS queue)
5. 005. Removal at storage location with scan confirmation
6. 006. Collection and Consolidation Area at handover point
7. 007. Brief check (spot check or 100% scan depending on SLA)
8. 008. Handover to packing with status booking "picked"

Order Picking Process in Detail

Role of the WMS

A Warehouse Management System (WMS) controls order picking digitally: it calculates travel paths, manages pick lists, books inventory in real time, and documents every scan. Without a WMS, efficient picking is hardly manageable beyond a certain volume. Details on features and selection can be found in the glossary entry on the WMS Warehouse Management System.

Technology and Equipment for Efficient Picking

The right technology speeds up the pick process and reduces the error rate. This equipment belongs in a modern fulfillment warehouse:

• Mobile scanners or MDE devices for barcode capture at storage locations
• Pick-by-Voice – hands-free order picking via voice instructions
• Pick-by-Light – LED displays on shelves show quantity and position
• Pick carts and order picking carts with compartments for batch orders
• Material handling equipment for heavy or bulky items

The scanner and barcode equipment should be aligned with the WMS from the start. Subsequent integration is possible, but more expensive and error-prone.

Storage Location Strategy and ABC Analysis

The arrangement of items in the warehouse has a direct impact on picking efficiency. ABC analysis divides items by turnover frequency:

A items belong in the pick zone near the packing area. C items can be stored further away or at higher levels. Regular review of inventory management and turnover frequency keeps the storage location strategy current.

KPIs and Measuring Picking Performance

What is not measured cannot be improved. These metrics should be tracked for order picking:

1. Pick Accuracy – share of error-free orders (target: over 99.5%)
2. Picks per Hour (PPH) – productivity per employee
3. Travel Distance per Order – in meters or time
4. Order Cycle Time – time from release to handover to packing
5. Pick Rate – number of picked items per hour
6. Stock-Out Rate – share of orders with unavailable items

Pick Accuracy Benchmark

Avoiding Pick Errors

Pick errors are expensive: exchanges, reshipments, return processing, and dissatisfied customers cost time and money. The most common error sources and countermeasures:

Common Error Sources

• Similar-looking items or variants (size, color)
• Illegible or missing barcodes
• Unclear storage location labeling
• Time pressure during peak phases without sufficient staff
• Manual pick lists without scan control

Preventive Measures

Checklist: Minimize Pick Errors

• Equip every item and storage location with a unique barcode
• Introduce scan-at-pick as standard process
• Regularly check storage locations for cleanliness and labeling
• Separate similar SKUs spatially
• Generate pick lists with optimized travel path sequence
• Training and refresher courses for all pickers
• Spot check before handover to packing
• Error analysis with root cause and corrective actions

Integration into Pick-Pack-Ship

Order picking is the first operational step in the proven pick-pack-ship chain. After picking comes packing at the packing station, followed by label printing and shipping. A smooth handover between picking and packing avoids waiting times and duplicate work.

Pick-Pack-Ship Detailed Workflow

Learn more about the overall process in the article Pick-Pack-Ship.

Practical Example: Online Shop with 200 Orders Daily

A mid-sized e-commerce retailer with 800 SKUs and 200 daily orders switches from single-order picking to batch picking with waves. Before: average 12 minutes travel time per order, pick accuracy 96 percent. After introducing batch picking (waves of 20 orders), scan-at-pick, and ABC storage location optimization:

• Travel time per order: 6 minutes (50% reduction)
• Pick accuracy: 99.3 percent
• Labor costs per order: reduced by 35 percent
• Cut-off for same-day shipping: moved from 2 p.m. to 4 p.m.

The transition required WMS configuration, two weeks of training, and adjustment of storage locations for the top 50 items.

Automation and Future Trends

Automated warehouse systems such as shuttle warehouses, AutoStore, or AGV-supported order picking are gaining importance – especially at very high volumes. For most SMEs, the combination of optimized manual picking, WMS, and mobile scan technology remains the most economically sensible solution.

Trends that also affect smaller operations:

• AI-supported travel path optimization in the WMS
• Predictive Picking – pre-picking of expected orders
• Robotics-as-a-Service – flexible robots for pick support
• Omnichannel Picking – one inventory for shop, marketplace, and store

FAQ: Frequently Asked Questions About Order Picking

What Is the Difference Between Picking and Packing?

Picking means removing items from the warehouse; packing is the subsequent packaging for shipment.

At What Volume Does a WMS Pay Off?

Typically from 50–100 orders per day, depending on SKU count and process complexity.

How Do I Reduce Travel Distances?

Through ABC analysis, batch picking, and zone picking – combined with travel path optimization in the WMS.

What Does Pick-by-Voice Cost?

Investment from approx. €15,000 for small systems, depending on number of workstations and integration.

How Do I Measure Pick Accuracy?

Formula: (Incorrect picks / total picks) × 100. Target value in professional warehouses: over 99.5 percent.

Conclusion

Order picking and picking are far more than simply assembling items. They connect inventory management, process design, technology, and workforce planning. Those who consciously choose pick strategies, optimize storage locations by turnover, deploy scan technology, and continuously measure KPIs measurably accelerate their fulfillment and reduce costly errors. Getting started succeeds step by step: first clear processes and barcodes, then WMS integration, followed by strategy changes as growth demands.

Related Topics

• Pick-Pack-Ship
• Pick List and Order Picking (Glossary)
• WMS Warehouse Management System
• Scanner and Barcode Equipment
• Inventory Management

Last updated: July 6, 2026