Outbound: picking, packing and shipping

Outbound covers everything between an order reaching the warehouse and the parcel leaving it. Picking collects the items, and the methods differ in how they organise the work: wave picking releases orders in timed groups, zone picking divides the floor between pickers, and batch picking collects several orders in one trip. Pick and pack names the whole sequence from picking to packing.

Kitting assembles sets of items before dispatch, the cut-off time is the last moment an order can still ship the same day, and despatch is the handover to the carrier. Equipment that guides picking, such as pick-to-light, is described under Warehouse automation.

Terms in this topic

Also relevant to this topic

Cost per order line

Cost per order line explained simply: what belongs in the sum, how to work it out, and why the figure can fall without anything improving.

Cross-docking

Cross-docking explained simply: goods arrive and leave again straight away, without being shelved. When it works, when it doesn't, with an example.

FEFO — First Expired, First Out

FEFO explained simply: ship the stock that expires first, not the stock that arrived first. Less waste and a faster recall, with an example.

FIFO — First In, First Out

FIFO explained simply: your oldest stock goes out first. When the rule works, when it doesn't, and how it differs from FEFO. With an example.

First time right

First time right explained simply: what counts as rework, how to work the figure out

Goods-to-person — G2P

Goods-to-person explained simply: the stock is brought to the picker at a station instead of the picker walking to it. When it pays off.

Labour productivity

Warehouse labour productivity explained simply: what it counts that picks per hour does not, how to work it out, and what actually moves it.

OEE

OEE explained simply: the three components that multiply together, where it belongs in a warehouse and where it does not

Order cycle time

Order cycle time explained simply: where to start and stop the clock, how to work it out, and why the average hides the orders your customers complain about.

OTIF

OTIF explained simply: what on time in full measures, why the choice of which date you measure against can move it by ten points, and what actually fixes it.

Perfect order rate

Perfect order rate explained simply: the four things that all have to go right, why multiplying them is brutal, and how to read the figure without despairing.

Pick-to-light

Pick-to-light explained simply: lights at each shelf location show the picker where to pick and how many. Where it pays off, with an example.

Picking accuracy

Picking accuracy explained simply: how to work it out, why the figure depends on where you catch the error, and what actually moves it on the floor.

Picks per hour

Picks per hour explained simply: what it counts, how to work it out, and why a high number on its own does not tell you the shift went well.

Put-to-light

Put-to-light explained simply: a light at each slot shows where an item goes when a batch is sorted into orders. When it pays off, with an example.

Slotting — warehouse slotting

Slotting explained simply: deciding where each product lives in the warehouse so that picking takes the least walking. A simple start, with an example.

Sorter — automated sortation system

Sorter explained simply: a machine that reads each parcel's label and sends it to the right lane by itself. When it pays off, with an example.

Throughput

Warehouse throughput explained simply: what it counts, why it is a volume rather than a score, and why the peak hour matters more than the daily average.

Voice picking

Voice picking explained simply: a headset tells the picker where to go and how many to take, hands and eyes stay free. When it pays off.

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