What is Pick/Pack in E-commerce?
The term “pick and pack” refers to warehouse operations that entail selecting the right kind and quantity of things from shelves and packing them for transportation. This fulfillment strategy works well for online retailers who frequently send smaller orders requiring specific items to be packaged well for delivery. Pick/pack service is often offered by third-party logistics providers.
Significance of Pick/Pack in E-commerce Fulfillment
Pick/pack operations are designed to reduce the time and effort required to fulfill orders. The benefits of pick/pack include –
- By automating processes and streamlining pick/pack workflow, businesses can complete orders faster, allowing them to keep up with the demands of the e-commerce industry.
- By streamlining processes and automating labor-intensive tasks, pick/pack operations can reduce labor costs and overall costs associated with order fulfillment.
- Pick/pack operations are designed to be scalable, allowing businesses to easily increase their order fulfillment capabilities as needed. This is especially important for e-commerce businesses that experience seasonal or unexpected spikes in demand.
Prerequisites to Calculate Pick/Pack and How It Works
The prerequisites to calculate pick/pack covers –
- Inventory management system
- Order management system
- A well-designed warehouse layout
- Knowing the labor cost associated with pick/pack operations to determine the total cost.
- Material costs
- Shipping costs
Use Case With Pick/Pack
Suppose a company ABC receives a bulk order of around 200 products to be delivered. A warehouse employee scans the customer’s order and checks inventory to determine what items need to be picked and packed. He goes to the designated shelf, picks out the items on order, and packs them securely in a box, ensuring they won’t be damaged during shipment. As the last step, the employee prints a label to attach to the box and adds it to the shipping queue.