Warehouse Management Order Planning Strategies

Various Order planning strategies in Warehouse Management / Supply Chain Management

Why Order planning is important?

Warehouse order planning strategies involve the optimization of the warehouse operations to ensure efficient and effective use of warehouse resources, such as space, labor, and equipment. Here are some common warehouse order planning strategies:

These strategies can be combined or used separately to optimize the warehouse order planning process. It's important to evaluate the specific needs and characteristics of the warehouse and its operations to determine which strategies will be most effective.

1. Wave Picking: Grouping orders together into "waves" and processing them at set times, typically several times per day. This allows for efficient use of resources and minimizes the need for workers to constantly switch between orders.
2. Batch Picking: Grouping similar items together and picking them for multiple orders at the same time, allowing for efficient use of labor and equipment.
3. Zone Picking: Dividing the warehouse into zones and assigning pickers to specific zones. Each picker is responsible for picking items only in their designated zone, which can reduce travel time and increase efficiency.
4. Cross-Docking: A logistics strategy in which goods are transferred directly from inbound trucks to outbound trucks, without being stored in a warehouse. This can reduce handling time and improve order fulfillment speed.
5. Randomized Slotting: Storing products in any available slot in the warehouse, rather than in a predetermined location. This can improve warehouse space utilization and increase efficiency in the picking process.
6. ABC Analysis: A method of prioritizing items based on their sales volume, value, or other criteria. High-priority items are stored in a location that is easily accessible, while lower-priority items may be stored in less accessible locations.
7. FIFO/LIFO: First In, First Out (FIFO) and Last In, First Out (LIFO) are inventory management methods that determine the order in which products are stored and picked. FIFO means that the oldest inventory is picked first, while LIFO means that the newest inventory is picked first.
8. Dynamic Slotting: Constantly analyzing and adjusting the placement of products in the warehouse to optimize space utilization and increase efficiency
9. Pick-to-Light: A system where lights are used to guide the picking process. Pickers are directed to the location of the item to be picked and the light turns off once the item is picked.
10. Voice Picking: A system where pickers are guided by an audio system, using headsets and microphones. The system directs the picker to the item to be picked and the picker confirms the pick by speaking into the microphone.
11. Cartonization: A system where orders are packed into specific carton sizes based on their dimensions and weight. This reduces the number of packages and optimizes shipping costs.
12. Put-to-Light: A system where lights are used to guide the put-away process. Items are directed to a specific location using lights and the light turns off once the item is put away.
13. Slotting Optimization: Analyzing product demand and picking patterns to determine the optimal location for each product in the warehouse. This can improve pick efficiency and reduce travel time.
14. Advanced Shipment Notification (ASN): Receiving notification of incoming shipments in advance, allowing for better planning and preparation for incoming inventory.
15. Dynamic Order Release: Releasing orders for picking based on demand, rather than a set schedule. This allows for flexibility in response to changes in demand and can reduce the risk of stockouts.
16. Automation: The use of automation technologies, such as conveyor systems, robotics, and automated storage and retrieval systems (AS/RS), can improve efficiency and reduce labor costs.

Which Order Planning strategy to pick?

These are just a few of the many warehouse order planning strategies that can be implemented to optimize warehouse operations. The choice of strategy depends on factors such as the size of the warehouse, the type of products being stored, and the volume of orders being processed.