Location Based Picking

What is Location Based Picking?

Location based picking is a process by which a company picks products at the warehouse closest to the customer. A warehouse management system allows pickup orders to be scheduled for designated workers. Barcodes and RFID tags track the location of items in a warehouse, and pickers can pick up orders from shelves close to them, reducing travel time and cost.

Significance of Location Based Picking in E-commerce Logistics

Location based picking allows e-commerce businesses to deliver multiple pickups in the same area. Let’s go over the benefits of applying location-based picking.

  • Location based picking reduces human error by automatically identifying which items are needed and in what quantities, reducing the likelihood of being out of stock.
  • It speeds up the process of automating selecting products from a warehouse using sensors.
  • It increases efficiency by finding storage facilities and transport routes easier. As pickers move around and pick orders according to the list, tasks are completed in a given time.

Prerequisites of Location Based Picking and How It Works

The provisions for a location-based picking system typically include the following:

1. For pickup to take place, a warehouse with an area to accommodate the picking system and its conveyors is needed.

2. Find an adequate number of pickers per the workforce availability and labor skills.

3. Look for storage locations close to the pickers and easily accessible by transport.

4. The proximity to suppliers and markets in compliance with the local environmental factors is sought.

5. Finally, inventory management software that aids workflow facilitation should be established.

Use Cases of Location Based Picking 

Suppose a company XYZ has received an order from the southern part of the Philippines. Subsequently, the seller assigns this order to be fulfilled through the warehouse closest to the customer’s location. In this way, they reduce shipping costs. Furthermore,  using this technology, they can improve efficiency and accuracy in their operations.

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