From Warehouse To Shipment: How Order Picking Improves Efficiency

Whether in an online shop, a retail environment, or a fulfillment center, when the wrong item suddenly ends up in a parcel, the root cause is often found in the order picking process. This is where it becomes clear whether operations run smoothly or whether a customer complaint is only a matter of time. It’s a process that rarely attracts attention in day-to-day operations, yet it plays a decisive role in customer satisfaction, operational efficiency, and overall profitability.

What is order picking?

Order picking is a core process in intralogistics and refers to the targeted retrieval of items from storage to assemble a specific order. The main goal is to prepare customer or production orders efficiently, accurately, and on time for shipment or further processing. This process is particularly critical in sectors such as e-commerce, mail order, and contract logistics.

What are the three main order-picking methods?

Orders received in a warehouse can be picked in different ways. The most suitable method depends on the specific requirements and processes of the respective warehouse. Order picking methods are generally divided into single-order picking and multi-stage picking. Depending on the order structure and the picking approach, three main picking methods are commonly used: parallel order picking, sequential order picking, and parallel batch picking.

Discrete order picking

Single-order picking refers to the process of completing each customer order in one continuous picking run. All items belonging to a specific order are picked sequentially, either manually or with the support of an automated system, until the order is fully assembled. Because each order is processed individually rather than grouped with other orders, this method requires a well-organized warehouse structure. For this reason, single-order picking is particularly suitable for small to mid-sized warehouses with a manageable product range.

Sequential picking

A commonly used variation of single-order picking is sequential picking. In this approach, a customer order is not completed by a single picker or workstation. Instead, the order moves step by step through multiple warehouse zones. At each handover point (or transfer station), a specific part of the order is picked before the order is passed on to the next zone for further processing.

The items are then brought together during the co-packing stage, where products are systematically assembled, sorted, combined, or packaged into a single, shipment-ready product bundle, for example subscription boxes, gift boxes, advent calendars, or retail displays. This structured process also makes it easier for the picker or for robotic grippers in automated picking systems to identify and prevent potential picking errors early in the workflow.

Parallel picking

In parallel picking, a customer order is processed simultaneously across multiple picking zones within the warehouse. Different pickers retrieve the items assigned to their respective storage areas at the same time, significantly reducing travel distances. This method is also commonly referred to as zone picking, as each picker is responsible for a specific warehouse zone while contributing to the same customer order.

Multi-stage picking

Multi-stage picking is used when multiple customer orders need to be processed at the same time. This method separates the workflow into two clearly defined steps. In the first stage, items are picked by product and quantity rather than by individual orders. In the second stage, the items are sorted and allocated to the respective customer orders, where each order is assembled for further processing and shipment.

Batch picking

Instead of processing individual orders separately, identical items for multiple orders are collected in a single picking run. The picking process is organized by warehouse zones, allowing several pickers to work in parallel across different storage areas. In a second stage, the picked items are sorted and allocated to the corresponding customer orders, where each order is assembled for shipment.

This two-stage picking method is particularly efficient when handling large order volumes with significant item overlap. It is therefore widely used by fulfillment providers such as megapac handling, especially in operations with a large product range or high order throughput. By grouping items during the picking stage, pick times can be significantly reduced, while parallel workflows across multiple warehouse zones further improve speed and resource utilization.

Order picking process

The order picking process consists of the following individual steps:

1. Order intake
A customer or production order is entered into the system. The warehouse management system (WMS) determines which items need to be picked and from which warehouse zones.

2. Pick list or digital picking instruction
The picker receives either a pick list or a digital picking instruction, depending on the picking method used. This information specifies the required SKUs, quantities, and storage locations within the warehouse.

3. Order picking
The actual order picking process begins. A warehouse operator or an automated picking system retrieves the required items from the warehouse. Depending on the warehouse setup, different strategies may be used, such as single-order picking, batch picking, or zone picking.

4. Verification and order consolidation
The picked items are verified, for example through barcode scanning, and then consolidated with other items to complete the customer order.

5. Packing and shipment preparation
The picked items are packed, labeled, and prepared for shipment, often immediately after the picking process. In packaging and fulfillment operations, this stage is frequently combined with co-packing, kitting, or customized packaging solutions, such as branded packaging, product protection, or sustainable packaging materials.

6. Quality control and shipping
Before the order is dispatched, the assembled shipment undergoes a final quality check. Once approved, the order is transferred to the shipping process. The system then marks the order as completed and updates the warehouse inventory in the WMS.

Overview of the most common order picking methods

Not every order picking process works the same way. The way items are picked from the warehouse largely depends on the technology used. In practice, different order picking methods are used depending on factors such as warehouse size, order volume, and the level of automation.

Pick-by-Paper
The traditional form of order picking is carried out using a printed pick list. While it is inexpensive to implement, it is relatively error-prone and less efficient compared to digital picking systems. For this reason, it is mainly used in small warehouses with low order volumes and limited operational complexity.

Pick-by-Scan (Pick-by-MDE)
Items are captured using a mobile barcode scanner and inventory levels are updated automatically. This method typically uses handheld computers with integrated barcode scanners. It offers greater flexibility and time savings compared to paper-based picking. However, it still requires manual scanning steps, which can limit efficiency in high-volume operations.

Pick-by-Light
This method does not rely on individual pick lists, as light signals at the storage locations indicate exactly where the items to be picked are located. Its main advantage lies in its simplicity and ease of use, allowing the picking process to become faster and almost error-free. However, implementing a Pick-by-Light system requires a lengthy and complex installation process.

Pick-by-Voice
Using a headset, the picker receives voice-guided instructions for retrieving the required items. This allows them to keep their hands and eyes free, which improves ergonomics and makes the method particularly suitable for large warehouses with high picking frequencies. As a result, Pick-by-Voice is considered one of the most efficient and reliable order picking technologies.

Pick-by-Vision
This is an innovative and modern picking technology that combines elements of Pick-by-Voice and Pick-by-Light. Using smart glasses, all relevant information, ranging from the storage location to the item number, is projected directly into the picker’s field of view. The picker is visually guided through the process, allowing for intuitive and efficient order picking. This method is particularly useful in complex and dynamic warehouse environments.

Pick-by-Point
A laser or light pointer highlights the exact product that needs to be picked. This helps prevent errors, especially in hard-to-see storage locations or densely packed shelving. As a result, the order picking process becomes significantly more precise.

Types of order picking systems

An order picking system includes all elements required for the picking process: the warehouse with its stored items, the personnel involved, transport equipment, digital tools, and the picking orders themselves. The goal of such a system is to organize material and information flows in a way that allows orders to be processed quickly, accurately, and cost-effectively. Depending on the level of automation, order picking systems can be manual or automated.

Manual picking system: Person-to-goods (P2G)

This approach is also referred to as static order picking. In this setup, the picker moves through the warehouse to the storage locations to retrieve the required items. Efficiency and ergonomics can be significantly improved by using technologies such as Pick-by-Voice, Pick-by-Light, or barcode scanning systems.

Automated picking systems: Goods-to-person (G2P)

These systems are also referred to as dynamic picking systems. In this setup, automated warehouse systems, such as shuttle systems or automated small parts storage (AS/RS), transport the required items directly to the picker via conveyor systems. This approach reduces travel time within the warehouse and significantly shortens order processing times.

Professional and efficient order picking at megapac handling

With many years of experience as a packaging and fulfillment partner, we understand what matters when it comes to order picking for customized products. We ensure reliable processes and an appealing presentation of your goods. Whether it’s custom inserts, hand-packed extras, or individually assembled product bundles designed to leave a lasting impression on your target audience, megapac handling offers a full range of optimized and efficient order picking solutions.

The OneFlow principle: our integrated solution

As a full-service packaging and fulfillment provider, we offer a fully integrated process—from the initial concept and development of tailored solutions to packaging design and shipping logistics. Each project and its specific requirements are evaluated individually. At the same time, we continuously focus on process optimization to ensure reliable and on-time execution.

The role of order picking in logistics and e-commerce

In logistics and e-commerce, order picking is far more than just an internal warehouse process—it is a critical factor for efficient supply chains and customer satisfaction. Fast, accurate, and efficient picking ensures smooth material flows, reduces error rates, and shortens delivery times. This becomes especially important when large volumes of orders must be processed within a short time while maintaining high accuracy. For this reason, optimized order picking processes play a key role in ensuring reliable operations and a positive customer experience, making them a crucial success factor for modern businesses.

Conclusion

Order picking is a central component of logistics operations, particularly in e-commerce and fulfillment. It plays a key role in determining how quickly and reliably customers receive their orders. Depending on the warehouse structure and order volume, different order picking methods and systems are used. A well-designed and error-free picking process has a direct impact on customer satisfaction, return rates, and the overall efficiency of the shipping process.