Huge demand in e-commerce has changed the entire ecosystem of supply chain management. It is analysed that customer expectation has been the biggest parameter to get the repeat order in e-commerce sector. Delivery time has been most crucial factor (after cost) for the consumer to order a product. If we consider the following survey facts, then we would come to know the importance of Order Fulfillment System
- 96% of consumers said – A positive delivery experience would encourage them to shop with a retailer again
- 80% of consumers want same day shipping and 55% are willing to pay a premium for it, but 47% of retailers don’t offer it at present
- 46% of online shoppers abandoned a shopping cart due to a shipping time that was too long or not provided
- 1 out of 3 said – Speed of delivery is a reason that they choose to buy from offline stores
That is why, fulfillment speed has become inseparably linked to customer loyalty among online shoppers. Overachieving masters of e-commerce like Amazon have set the expectation for near-immediate shipment of online orders, and that expectation has trickled down to merchants of every size and segment. While the report reveals that two days is the median expectation for delivery of orders, a full 40 percent of respondents said they’d like to take delivery of online orders the same day the order is placed.
While the final leg of the supply chain is a critical factor to fulfillment speed, meeting the high-stakes demand for fast delivery isn’t solely a matter of leveraging faster, fuller trucks and more optimized shipping routes. After all, UPS, FedEx, and boutique carrier services can only pick up what’s already been picked and packed. The consumer’s growing expectation for speed demands some fancy footwork on the part of retail distribution centers. Automatically, it becomes too important to choose a right e-commerce order fulfillment strategy to counter this challenge.
Traditional Approach
Automated Method
Automated Conveyor System and Pallet Flow Racking Systems have been used a lot in the past to speed the order fulfillment system process but searching and picking a defined product has been taken a lot of time and cost. As a result, focus is towards automated picking system. The aim of an automated order picking system is to reduce the costs by eliminating the need for workers to travel and search for items.
Warehouse order picking equipment may include:
- Pick Assistive Mobile Robots
- RF units (including barcode scanners)
- Speech control units (SCU)
- Speech data terminal (SDT) headsets
- Automated storage and retrieval systems (ASRS)
- Pallet rack systems
- Warehouse carousel systems
- Pick-to-light equipment
But one must choose the correct picking technology as per the size and volume of a warehouse. Here are some latest picking technologies for automated order fulfillment systems
Pick to Light Systems
Pick to light is a paperless picking technology used for order fulfillment system process; it deploys pick to light modules at a storage location for manual picking process and recording items for shipments. A pick to light module consists of an alphanumeric display and a button. The alphanumeric display consists of LEDs, indicating the quantity to be picked from a warehouse shelf or rack. The operator picks the required quantity from the shelf and confirms picking by pressing a button on the pick to light module. Some displays also indicate order numbers and the next zone to pass the order for operators.
An ideal order fulfillment solution for operations with a low number of SKUs, Pick-to-light systems provide hands-free picking for accurate, efficient stock handling. And because these systems integrate with new and existing storage systems, you can maximize your order filling system’s output while minimizing capital investments. Pick to light is most suitable for batch picking operations in a defined area where space is a constraint. Digital displays on the picking windows help improve the efficiency and accuracy of picking process.
Pick to Voice Systems
Pick-by-voice also known as voice-directed picking, is a hands-free picking solution that enables warehouse employees to control the picking process using audio commands. The picker receives acoustic commands and feedback over headsets or earphones, indicating the location and quantity of products to be picked. The solution guides users through their pick-up routes and enables real-time tracking and monitoring of all processes. The picker can also confirm the pick by commanding back to the software. The voice directed software is mostly combined with the locally employed warehouse management system. This solution allows the pickers to move through the warehouse with their hands and eyes free, thereby increasing productivity, accuracy and safety, and decreasing training time and damages.
Pick-by-voice system is ideal for warehouses with a high number of SKUs spread across a large facility. Seamless integration with your order management system or warehouse management system (WMS) provides enhanced accuracy and efficiency.
As of now, voice-by-voice systems are used in only 20-30% of all warehouses and distribution centers, as most warehouses rely on paper or mobile barcode scanning technology. Voice directed systems is typically used instead of paper- or mobile computer -based systems that require workers to read instructions and key-enter information to confirm their tasks. This process frees the picker’s hands and eyes, and enable improved efficiency, accuracy, and safety. Voice picking solutions are said to increase productivity by up to 35%
Pick to Vision System
Logistics industry have evolved rapidly over recent years. The market demands customized products, and faster delivery. Thus, production and logistics systems must become more flexible to fulfil the costumers’ needs. Pick-by-Vision is the newest technology, introduced in the purview of order picking solutions. Pick-by-vision is an Augmented Reality (AR) supported order picking system. The picker wears a head-mounted display (HMD) which visualizes all the required data directly in his field of view. The data glasses display all relevant data for the correct execution of the picking task depending on place, time, field of view and the status of the order. It enables intuitive and freehand work.
Although pick-by-vision is a relatively new technology and not yet fully commercialized, it offers various features that is said to ultimately disruptively replace voice picking solutions. The pick-by-vision system has extensive benefits compared to light or voice-directed solutions. As it can recognize the surroundings and show the operator visual information via See-Through-Display, it guides the operator through the warehouse reducing travel time by optimized route planning. Real-time object recognition and barcode reading with just one view make the handling of additional scanners dispensable. The software is integrated in the warehouse management system which enables real-time stock updates.
Pick-by-Label Systems & RF Picking Systems
Pick by Label – This manual order picking solution is ideal for fulfilling orders of small to moderate sizes. Your equipment and labor costs remain low, allowing you to operate your fulfillment systems economically.
RF Picking Systems – The Radio Frequency Mobile Picking method is a paperless order picking model that uses handheld RF scanners and mobile devices for order fulfillment of large quantities of different products or for volume where pick-to-light is not justified.
Every business has its own processes, so a “one-size-fits-all” system isn’t always optimal. Your business needs an order picking strategy and technology optimized to the unique needs of your business. It can also be a mix of multiple technologies to cater the requirement at different levels as well. But you have to adopt the Order Fulfillment System if you have to be in the race among your competitors to fulfil the customer’s expectations. As per 6 River System, you can follow 7 steps to improve E-commerce order fulfillment process.
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