Improved efficiency in the order-picking process

Background: The e-commerce growth has raised awareness about the need for more efficient order picking system. That order picking is effective is relevant because it is the most costly and labour-intensive activity in most stocks. E-handelsföretaget currently has problems of getting efficient logistics in the storage area, which is closely related to the efficiency of the order picking process. As the company uses manual order picking, the costs of the warehouse gets high because of a high human effort. From an economic point of view, it is therefore important for E-handelsföretaget to improve the order picking process. Published studies of order picking systems using manual order picking mainly focuses on random storage. Analytical models to optimize the order picking process with other approaches for article placement than random storage is not addressed, the study will therefore examine alternative methods for article placement. Purpose: The purpose of the study is to identify how E-handelsföretaget´s order picking process is performed today and to develop a simulation model for the efficiency of order picking processes. The simulation model will be applied on E-handelsföretaget in order to improve their order picking process. Method: This study has applied action research, when designing the simulation model the company collaborated in the process. The conduction has been done with interaction between the theoretical framework and the limits of the company. The theoretical framework has been partly built up with articles from One Search, Business Source Premier and Google schoolar. Theoretical litterature from the library at Linnéaus University Library was also used. Empirical data were collected through observation and semi-structured interviews with respondents from different parts of the company. Conclusion: Eight variables were identified to affect the efficiency in the order picking process. In a company with manual order picking, higher efficiency in the order picking process is achieved by reducing walking distances in the picking route. Warehouse layout should be designed according to U-shape, with an even number of aisles and a central location of the pick area. Stock aisles should be parallel and contain shelf compartments. Picking from warehouse performed manually justify a picker-to-part system for order picking, picking should be done directly from the main warehouse. Zoning can be excluded in a small business like E-handelsföretaget. The storage assignment recommended is popularity based article placement. Routing plan using S-shaped method is preferred. The optimal batch size has been simulated specifically for E-handelsföretaget, 24 ordrar per batch is the most appropriate size. The selection of ordrar recommends to be done using Seed method. Simplification of order picking and packing can be used as support functions to improve efficiency in order picking. Packaging is recommended done separately from order picking. A simplification of the order picking through a merge of retrieval and sorting are recommended