What is a Pick and Pack Warehouse for eCommerce?

A pick and pack warehouse is a specialized type of warehouse for order fulfillment. The warehouse is designed to facilitate the efficient picking of items from inventory, packaging them, and shipping them out to customers. Pick and pack fulfillment is a critical part of warehouse management, as it allows businesses to efficiently fulfill orders and provide customers with the products they need. 

The pick and pack process in a warehouse begins when an order is placed. The warehouse staff will use a computer system or specialized software to locate the products requested and retrieve them from their designated spots in the warehouse. Once the items are located, they are placed in a package and labeled with the customer’s information. The package is then sent to a shipping area where it is prepared for transportation.

The pick and pack process also involves quality control. Warehouse staff will inspect each item before packing it to ensure it is in good condition and meets the customer’s expectations. If an item is not up to par, it will be replaced before it is shipped. Pick and pack warehouses are an important part of the supply chain. They make it possible for businesses to quickly and efficiently fulfill orders, so customers can get the products they need in a timely manner. By streamlining this process, businesses can ensure customer satisfaction and maximize profits.

What is the Pick and Pack Process in Detail?

The pick and pack process is an essential part of order fulfillment. It involves the selection, packing, and shipping of products to customers. This process is used by both retailers and wholesalers to fulfill customer orders.

The pick and pack process begins when orders are received from customers from an online store, eCommerce platform, etc. When a customer places an order, an OMS (order management software) routes it to a pick and pack warehouse for fulfillment. A warehouse worker will scan the order into the system and it will be transferred to the pick list. A picker will then locate the products for an order in the warehouse by searching through the warehouse shelves and racks, or by using a warehouse management system (WMS) to locate them. Once the items have been located, they will be picked from the shelves and placed into a picking cart or other designated container.

Throughout the picking process, a barcode scanner is generally used to ensure that the right products for an order, and the right quantities of each product, are being picked. Guaranteeing that orders are filled accurately is a central part of the pick and pack warehouse's appeal. In addition, the WMS should be integrated with inventory management software to maintain inventory accuracy in real time.

The next step is order packing. The items will be transferred to the packing area of the warehouse (aka the packing station), where a packing slip will be generated. They will be inspected, packaged in the appropriate packaging material, have any necessary labels applied, weighed and measured to calculate the shipping cost, and loaded onto a shipping truck or other designated vehicle for delivery to the customer.

The last step in the process is shipping. Once the items have been packed, they are sent to the customer. This can be done through a variety of methods (ground, air, international, etc.). Pick, pack, and ship is a fundamental part of order fulfillment, and, when executed properly, ensures that customers receive the right items, undamaged, and in a timely manner. 

Consider the Advantages of Warehouse Fulfillment Services and the Pick and Pack Process

Dedicated Pick and Pack Warehouses Increase Efficiency

Pick and pack warehouses provide efficient order fulfillment services to their eCommerce customers. This includes order processing and parcel shipping services that are optimized for speed and accuracy. Utilizing sophisticated order management systems and a range of methods to pick items (zone picking, batch picking, wave picking, etc.), a fulfillment center is able to streamline the order fulfillment process and make it more efficient for their customers.

Directed Order Picking Dramatically Improves Accuracy

Total or near-total accuracy in order fulfillment is achievable in a "pick pack" warehouse operation. Their inventory management systems are designed to minimize errors, while teams of fulfillment specialists use barcode scanning and other tools to ensure orders are correct prior to shipment. Additionally, warehouse management systems and pick and pack software can help verify addresses to guarantee that orders are sent to the correct address.

Enjoy Substantial Cost Savings with a Pick and Pack Process

A warehouse fulfillment service and 3PL (third-party logistics) provide cost savings to their eCommerce customers by offering competitive pricing on their order fulfillment services. Additionally, many are able to provide discounts to customers who sign up for their subscription services. With outsourced fulfillment, customers can also take advantage of discounted shipping rates from major carriers. By definition, also, eCommerce merchants save money by not needing to invest in a range of areas (warehouse space, warehouse workers, warehouse management software, etc.)

Grow at Scale with Pick and Pack Fulfillment

When you outsource your pick and pack fulfillment, you can quickly and cost-effectively scale up delivery capabilities in response to changing customer demand. Businesses can take advantage of a third-party provider's existing warehouse and inventory management systems, as well as their existing shipping networks. This helps to reduce the time and resources needed to manage fulfillment operations in-house, allowing businesses to concentrate on growing their core business.

Pick and Pack Services Can Improve Your Customer Satisfaction

Improved order accuracy and increased efficiency add up to improved customer satisfaction. In addition to ensuring that orders are processed accurately and shipped out quickly, a pick and pack fulfillment warehouse should provide customer service support to help customers with any issues they may have. By working with a trusted partner in this area, eCommerce businesses can maximize the experience for their customers.

Pick Pack Warehouse Operations Also Present Challenges

Outsourcing the Pick and Pack Process Means a Loss of Control Over Inventory

Merchants understand the importance of controlling their inventory and warehouse processes, and as a result, many are hesitant to cede control to an outsourced fulfillment provider. This is especially true for smaller merchants who may not have the financial resources to hire a third-party provider or the expertise to manage their inventory and processes with an outside provider. Additionally, merchants may be concerned about the security of their inventory and the potential for their products to be mishandled or lost. Above all, merchants want to ensure that their customers receive quality products and services, and ceding control of their inventory and processes to an outsourced provider can create uncertainty.

An Upfront Investment is Required to Outsource Your Pick and Pack Operations

The upfront investment required to onboard with a 3PL will vary depending on the services and solutions offered by the provider. Typical costs associated with onboarding include setup fees, account management and technology fees, uploading multiple SKUs, etc. It's important to factor in these costs when evaluating 3PL providers, as they can have a significant impact on the overall cost of doing business.

Your eCommerce Tech Stack Must Integrate with a Service Provider's Pick and Pack Software 

Software integration between an eCommerce merchant and a pick and pack warehouse is essential for efficient and accurate order fulfillment. By integrating the two systems, the warehouse can automatically receive and process orders from the merchant, ensure that inventory is always up-to-date, and generate accurate reports. The merchant can also benefit from improved customer service, better inventory management, and faster order processing. By integrating the two systems, the merchant can reduce the cost and complexity of managing multiple systems and optimize the entire supply chain process.

You are a Customer of a Service Provider Whose Fulfillment Fees Will Increase Over Time

While outsourcing order fulfillment to a pick and pack warehouse can help to reduce labor costs, increase efficiency and streamline the fulfillment process, it will also mean higher fees over time. As the cost of services and materials increase due to the complexity of the fulfillment process, inflation, etc., it is important to weigh both the costs and benefits of outsourcing order fulfillment to a pick and pack warehouse before making a decision

Some General-Service Pick and Pack Warehouse Fulfillment Companies Cannot Handle Highly-Specific Needs

General-service pick and pack warehouse fulfillment companies try to provide a wide range of services to meet the needs of their customers. However, they may not be able to accommodate highly-specific needs that require a specialized process and/or equipment. These might include temperature-controlled storage, specialized labeling, appropriate packing materials for extremely delicate items, etc. Before choosing a warehouse, it is crucial to determine if the company can accommodate your needs before signing on the dotted line.

Efficient Pick and Pack Warehouse Processes Rely on Optimized Layout and Design

Part of the selection process for any eCommerce merchant will involve visiting a pick and pack warehouse and getting a solid look at the operation. The warehouse layout should be designed with careful thought and attention paid to efficient, optimized processes and flow-of-goods. 

Benefits of a Well-Considered Warehouse Layout and Design

An optimized warehouse layout and design can provide multiple benefits, such as improved productivity and efficiency, improved safety and ergonomics, reduced risk of product damage, and reduced labor costs. Improved productivity and efficiency is achieved by streamlining processes, ensuring that materials can be accessed quickly and efficiently, and providing a clear flow of goods throughout the warehouse. Improved safety and ergonomics are achieved through the implementation of clear walkways and designated areas, as well as proper storage to reduce the risk of accidents and injury. The risk of product damage is reduced by providing adequate storage facilities and an organized layout to prevent overcrowding and prevent items from being damaged. Finally, optimized warehouse layout and design can reduce labor costs by allowing for more efficient use of resources and eliminating unnecessary steps.

The Range of Pick and Pack Methods Informs Warehouse Setup 

The range of pick and pack methods informs warehouse setup by optimizing the use of space and personnel in the warehouse. Different pick and pack methods have different requirements for warehouse space, equipment, and personnel. For example, batch picking is better suited to large warehouses while zone picking is best used in smaller warehouses. A warehouse that is configured to accommodate the chosen pick and pack method will improve efficiency and reduce costs.

Many Strategies Exist to Improve Layout and Design

Optimizing the flow of goods, utilizing vertical storage techniques, streamlining picking techniques, and investing in appropriate technology are all essential to ensuring a warehouse is run efficiently and cost-effectively. By optimizing the layout of the warehouse and utilizing vertical storage, more goods can be stored in the same area, reducing costs and improving efficiency. Streamlining picking techniques reduces time and improves accuracy, while investing in the right technology helps to automate processes, reducing the labor required, further lowering costs and increasing accuracy. By taking the time to ensure all of these are implemented properly, warehouses can ensure they are run efficiently and cost-effectively.

Integrate Your Fulfillment Operations with a Pick and Pack Warehouse and SkuNexus

Any management software system must have the flexibility to meet your needs, not the other way around. When it comes to deciding on software to manage your warehouse fulfillment operations, think about not only your most pressing current issues, but also how you might like to be doing things 1, 3, and 5 years from now.

For example, the implementation of directed picking might be a vast improvement over current manual processes, but is the system sophisticated enough to run complex strategies that you and your team might need to employ as the company grows?

Automation should be at the forefront of any solution you consider. The reduction of manual processes within pick and pack operations is paramount, from improving picking accuracy to saving employee time to reducing material waste by eliminating decision-making during packing.

Future expansion is something else to think about. Not all platforms are created equal. As your business grows, the ability to easily and seamlessly integrate that growth with your software will let you focus on other things and save countless time, frustration and headaches.

Do not overlook the team behind the software, either. A management software provider should be a consultant and trusted partner, not just another vendor you use. 

At SkuNexus, we take great pride in not only designing flexible order fulfillment software systems that grow alongside our customers, but also in the strength of those relationships. Our dedicated support and development team works closely with clients to discuss ideas, provide advice, and help tailor the software to fit their needs.

If you would like to learn more about how SkuNexus can help your eCommerce business, please schedule a demo.