Your inventory and shipments are always up to date, your customers are happy to receive just what they ordered with impeccable speed, and errors are conspicuous by their absence.
That can happen in the ideal world, but in the real world there is more than one thing to consider when it comes to efficiency and avoiding mistakes that, no matter how small they may seem, trigger a series of extra costs for your store’s operation.
The pick and pack is one of the backbone of your sales process, without it your product will practically never reach your customers.
If you’re just starting to pick and pack or if you’ve been doing it for a while but want to fine tune your processes, this article will show you the most common mistakes, confirm your basics and give you a couple of tips to improve.
WHAT IS PICK AND PACK?
This is the name given to an inventory management process that consists of 3 steps within a supply chain. Literally as it sounds – Pick – Pack, not forgetting the first step which is receiving the order into your system.
1.- You receive the order: With an inventory management system you control your warehouse with your store, so your inventory “is alive” and connected with your store. So, when a customer places an order, the inventory system in the warehouse is notified and generates a list for picking.
2.- Picking: Picking the order. A person from your team in your warehouse takes the list with the order and looks for the items in the inventory.
3.- Packing. Packing the order. The collected items are taken to the packing station in the warehouse. There a good practice is to confirm that the items are correct and then proceed with the packing and once completed, have the package ready for the carriers who will deliver the package.
Remember that your warehouse and process often depends on how much you sell and the stock you have, but this process is key in any store.
HOW DOES PICK AND PACK WORK?
It depends a lot on the distribution of your inventory, if it’s high volume, if it’s in your own physical store, etc. Pick and pack can be different but there are two strategic ways to choose which one suits you best.
Picking by piece: if you are growing, this is the option for you because of its strategic function. In this process you select the order and pick the necessary items from the inventory. The key is to select one order at a time.
Block picking: Maybe it’s already a headache to do it one by one. If so, it’s time to use this strategy. Items from more than one order are picked together, either because of their location in the warehouse or because they need to be packed in a certain way.
The ideal is to use it when you already have a high volume of orders and the best way to use this way of picking is to have a software to help you or a logistics partner.
Key advantage of block picking: You optimize the picking times of each order and take advantage of your inventory buffer, plus your team will have a better sense of where to go and what to pick with an orderly picking list.
Already having these basic notions, you are probably wondering which option is the best for your store and for your current process, but to be able to decide, let’s understand the main mistakes that can happen to you.
Picking Errors
- It is not only the economic cost, it is the prestige of your store that is at stake, so we list those that can affect your operations and of course your sales.
- Cost of sales: Instead of holding back and potentially adding another product, you’ll have to work harder to get sales.
- Warehouse costs: Your team has already invested hours in the process and you will have to invest it again in the inventory count to correct the error.
- Returns: You must document and return every order and this reverse logistics process involves costs.
- Additional shipping costs: again, the waybill to return the order with the carrier implies a cost for your store.
- Customer service: not only will they have a hard time in your customer service team, the time spent is costing you
- Lost sales: As if it wasn’t enough that they abandon the cart, with these experiences, they are sure to look for another brand.
It hurts to read it and if it’s happened to you you know how complicated it is to deal with this situation, especially when they are things that surely could have been avoided. So, the question here is: What was it that led your pick and pack team to make these mistakes?
In these cases, the human factor is latent and is not something that does not stop happening, but there are other factors that complement and explain the error, for example:
1.- Not prioritizing and planning the picking session.
2.- Having too many people and locations (losing efficiency)
3.- Pick an element with a different identifier/code.
4.- Selecting the wrong product in the right location (Disorder in the warehouse).
5.- Omit details of the order.
6.- Finish the picking session leaving incomplete orders.
Don’t be overwhelmed if you’ve seen a couple that have happened in your store, even to the best ones it happens. The important thing here is to take action on the matter and that in your day to day you take advantage of every order to make it a super experience for your customers.
Remember that the first purchase is just the beginning of a long relationship between your buyers and your brand.
Improvements to be implemented
You can implement these tips and improve your processes as well as the shopping experience:
- Use an inventory management system that allows you to keep your inventory always in sync.
- Add locks to confirm the picking session.
- Order your inventory to avoid human error, work on the nomenclature and code of your products to avoid confusion with your team.
- Organize strategically in your warehouse.
- Remember that unboxing is an experience, if you can include this for your customers.
- Don’t miss an opportunity and add an advertising graft. Re-purchase is key and these details make the difference.
- Add the element of surprise and if your packaging is personalized you will have your customers eagerly awaiting your packages.
- Offer same day delivery, your customer wants it and if your pick and pack process is efficient, this will be a piece of cake.
Don’t forget, if your capacity has been exceeded and you need a hand, for sure it’s time to think about having a logistic partner like AGOL Worldwide Inc that will help you in the logistic processes so you can be more efficient in the whole fulfillment process.
