What is Fulfillment Batching and How Does it Help Picking?

How a warehouse arranges their order picking can have a significant impact on their fulfillment speed. Batch picking is just one strategy a business can explore, especially if it has high volumes of similar orders to fulfill. 

Key Takeaways: 

• Fulfillment batching is an order picking method aimed at reducing employee travel time on the warehouse floor. 
• An order management system groups identical or similar orders together at the same time to be sorted in the next step.  
• If done correctly and in the right circumstances, it’s possible to achieve faster order processing and improve fulfillment time.     

Learn how fulfillment batching is being used in warehouses to streamline pick & pack orders while improving customer satisfaction. 

What Does Fulfillment Batching Mean?

Fulfillment batching, also known as batch picking, is a strategy that organizes orders so that exact or similar orders are grouped together and gathered by a picker at the same time.  

The goal with this order picking strategy is to optimize each picker's efficiency. Of course, it’s only truly effective with the right training and follow-up processes to also ensure accuracy.  

In general, batch picking can be implemented in three different ways: 

• Traditional: No sorting is done in the picking cart. Stock keeping units (SKUs) are picked according to quantity and taken to the packing area to be sorted, packed and labeled for shipment. 
• Pick-to-Cart: Pick carts carry bins with individual barcodes matching up to the needed SKUs for each order. The picker can sort orders as they collect items to make things easier on packers. 
• Pick-to-Box: Pick carts are sent out with the boxes that will be used to ship the items in. This requires pre-planning that selects the right-sized box and places delivery labels. This method has the advantage of combining picking, sorting, and packing. 

The size and complexity of your inventory and warehouse space will influence which strategy to consider. There are pros and cons to each

In the next section, I’ll walk you through the ideal batch picking process. 

The Batch Picking Process 

As with any successful picking strategy, fulfillment batching starts with efficient order processing. Warehouses should be investing in one or both of the following to get started. 

• Order Management System (OMS): Automated systems that track orders from purchase through fulfillment and delivery. Many process orders from multiple online channels and allow customers to choose the fulfillment method. 
• Warehouse Management System (WMS): This system allows a business to manage and control warehouse inventory, tracking inbound and outbound stock. 

Ideally, you would have an OMS that can fully integrate with your WMS. The WMS provides the needed inventory management tools integral to internal warehouse operations. The OMS secures your ability to offer customers flexible payment systems and omnichannel experiences. 

The Fulfillment Batching Process

With your management system in place, batch picking can proceed as follows: 

1. Have your system set up to create picker lists that batch together the same or similar items for pickers. 
2. Pickers will then gather the SKUs according to the batch strategy used by the warehouse (traditional, cart, or box). 
3. To optimize the picking process, SKUs frequently ordered together, or that are similar, should be physically close together to reduce the picker's travel time. 
4. Packing areas should also be placed so they are close to pickers for drop off and easy for outbound shipping to access. 

The more order history you build up, the better you’ll be able to organize SKUs and related services. Changes in customer buying habits or popular products should be tracked as well so that SKUs can be reorganized as needed. 

As an example, we’ll consider a warehouse that fulfills orders for an eCommerce vendor selling medical scrubs in bulk.

Forty orders have come in and the WMS has sorted them into eight batches, each covering five orders. The orders in each batch all contain the same or similar items, which means the picker can gather all the items for five orders with minimal stops.  

While there may be the occasional order that goes against the grain, data trends are usually a good indicator when studied over a length of time. Even in that case, you can still set up the WMS to produce batching lists that come with a recommended picking route. 

This will ensure that all SKUs, even the random outliers, are still gathered in the most efficient way, minimizing picker travel time. Depending on the size of the warehouse and the complexity of the shipments, batch picking can be combined with other strategies. 

For more information on other order picking methods, check out our article on seven warehouse order picking methods that can improve accuracy and efficiency.

Benefits of Batch Picking

No matter which batch picking strategy you go with, the goal remains the same: complete as many orders as possible, as quickly and as accurately as you can. 

When implemented and maintained correctly, the practice of fulfillment batching does exactly that in the following ways: 

• Reduced travel time: Pickers don’t have to go on long hauls throughout the warehouse to gather one order at a time, saving time, especially in larger operations. 
• Higher order throughput: Even if pickers aren’t sorting as they go, they are making it possible for multiple orders to be packed on the table in quick succession and prepped for outbound shipping. 
• Faster picking process: With reduced travel time, workers can also collect items faster, especially when aided by a WMS that provides recommended routing. 
• Reduced picker fatigue: Minimizing the necessary movement of workers also reduces physical strain, which can lead to more frequent mistakes and injuries. 
• Minimizes Warehouse congestion: An added benefit of reduced movement is that workers are less likely to overlap each other, which leads to delays and is more likely to result in mix-ups.
• Lowers Operational Costs: A more organized process can help companies better plan employee schedules, make more efficient use of equipment, and lower overall energy use. 

These benefits are dependent on how well the fulfillment batching process is organized to begin with. A big part of that is employee onboarding and training. Current labor shortages in warehouses can place extra stress and duties on the employees that are present.

Providing a safe working environment for employees and giving them good training may help. Employees who feel secure with their skills for the job will be more confident, perform better, and be less prone to making mistakes.    

Disadvantages of Batch Picking

For all its advantages, batching picking doesn’t work for every warehouse or business model. A significant amount of prep work needs to be put in place, and it’s more tailored to warehouses with high SKU overlap.

Before switching to a fulfillment batching strategy, warehouse managers should consider the following traits:  

• Poor Efficiency for Customized Orders: For companies with a wide variety of items or customizable orders, there may not be enough common ground to justify a fulfillment batching system. 
• Supportive Software Requirements: Incorrect order batching or mix-ups between customer orders of the same batch can cause further problems down the line. A picker can only be as accurate as the software they have to work with. 
• Delayed Rollout: Initial process may be slow as data is collected and items are organized accordingly. The process needs to be given time to settle which can create delays at first.
• Tracking concerns: If you’re fulfilling sensitive items or luxury goods, more focus is placed on security than speed, and with multiple orders being grabbed, there is an increased chance of errors during the picking process itself. 

Some of these disadvantages can be managed with strategic warehousing and employee training. Others are there as a sign that you may be better off with an alternative strategy. 

Warehouse managers need to take a close and honest examination of their operation to determine if picking multiple items at once is even possible with their current setup.  

How Batching Improves Fulfillment Efficiency 

When you begin using fulfillment batching, certain trends are going to become more apparent. First are foremost, these should be used to streamline the system you initially started with.  

The longer you use the system, the more data is collected that can be used to a company’s advantage. Long-term, your overall fulfillment efficiency and inventory management will improve. 

• Merchandise ordering and restocking can be set to match historical trends, reducing the chances of stockouts. 
• Merchandise that isn’t selling, and costing you money in storage fees, can be discounted in an effort to clear it out while incoming orders are canceled. 
• Faster packing and picking ends up resulting in orders being sent out faster, which helps your lead times with clients and generally makes them happier.

As with the benefits, how much more efficient the warehouse becomes will be a combination of how well the strategy is implemented and whether it matches with the business model.  

Partner With Fulfillment and Distribution to Streamline Your Logistics

Fulfillment logistics are complicated. Even with all the new technology at your disposal, finding the right solution may take some trial and error. 

You can save yourself some of that hassle by partnering with us at Fulfillment and Distribution. We have the space and manpower to handle different fulfillment strategies. If we can’t do it, our warehouse consultants can help you find someone who can. 

Whether you need fulfillment batching, custom order picking, or kitting services, we’ll get you the right partner for the job. We also offer various freight consolidation services alongside our warehousing, including. 

• Cross docking Services
• Transload Services
• Reverse Logistics 

Get a service quote today that’s tailored to your unique needs. You can also give us a call directly at (866) 989-3082 to speak with a warehousing representative..