What is picking and packing? Definition and explanation
Pick and pack is the warehouse process of selecting products from inventory storage locations (picking) and preparing them securely in shipping containers (packing) to fulfil customer orders accurately and efficiently.
The definition of pick and pack describes two interconnected but distinct activities that form the operational core of order fulfilment. In a pick and pack warehouse, picking refers to the systematic retrieval of specific items from warehouse shelves, aisles or storage zones based on order information. Packing involves selecting appropriate packaging materials, arranging products to prevent transit damage, adding documentation such as packing slips, and applying shipping labels.
This explanation clarifies that pick and pack represents the physical bridge between inventory management and customer delivery. Together, these pick and pack processes typically account for 55 to 70% of total warehouse operating costs, making efficiency improvements here critically important for profitability and customer satisfaction.
Why pick and pack matters
Pick and pack efficiency directly impacts your bottom line, customer loyalty and competitive position. Several factors make these pick and pack operations business-critical:
- ✅ Cost control: Pick and pack activities account for up to 70% of warehouse operating costs, so even small efficiency gains deliver significant savings.
- ✅ Customer satisfaction: Fast, accurate pick and pack fulfilment meets rising expectations for same-day or next-day delivery.
- ✅ Order accuracy: Effective pick and pack systems reduce mispicks, returns and customer complaints.
- ✅ Scalability: Optimised pick and pack processes enable you to handle volume spikes without proportional cost increases.
- ✅ Competitive advantage: Faster pick and pack turnaround times and lower error rates differentiate your service from competitors.
The unpredictable nature of customer orders, combined with growing demand for rapid delivery and flexible cancellation options, means warehouses must perfect their pick and pack operations to remain competitive.
The pick and pack process
The complete pick and pack workflow consists of four main stages that transform a customer order into a shipped package:
1. Order receiving
When a customer places an order through your ecommerce platform or sales channel, order information flows into your warehouse management system. The system generates a digital or physical packing slip containing item details, quantities, locations and any special instructions. At this stage, the system also checks inventory availability and allocates stock to the order, initiating the pick and pack cycle.
2. Picking
A warehouse picker retrieves the packing slip or receives digital picking instructions on a mobile device. They navigate to the correct storage locations and collect the specified items and quantities. This is the most time-intensive stage of pick and pack, where efficiency gains have the greatest impact. Modern pick and pack warehouses use barcode scanners or RFID technology to verify each pick and reduce errors.
3. Packing
Picked items arrive at a packing station where staff select appropriate packaging (boxes, bags, envelopes), arrange products securely, add protective materials (bubble wrap, air pillows, paper fill), verify order accuracy against the packing slip, and print and apply shipping labels. Quality checks at this pick and pack stage catch picking errors before items leave the warehouse.
4. Shipping
Packed orders move to the dispatch area where they are sorted by carrier, weighed if necessary, and organised for collection. Tracking information updates automatically, triggering customer notifications about shipment status. The carrier collects packages and begins the delivery journey, completing the pick and pack fulfilment process.
Picking methods explained
The picking method you choose for your pick and pack operations depends on order volume, product range, warehouse layout and available technology. Four main approaches dominate warehouse operations:
Piece picking (single order picking)
Piece picking involves selecting, packing and shipping one complete order at a time. A picker walks through the warehouse collecting all items for a single customer order before returning to the packing station. This pick and pack method is simple to implement and requires minimal technology.
Best for: Small retailers, low order volumes, businesses just starting with pick and pack.
Drawbacks: Highly time-intensive, significant travel distances, difficult to scale.
Batch picking (multi-order picking)
Batch picking groups multiple orders together and picks all required items in a single warehouse trip. Pickers collect quantities of the same SKU for several orders simultaneously, then sort items by order at the packing station. This pick and pack method reduces total travel time significantly.
Best for: Growing businesses with moderate order volumes, pick and pack warehouses with popular SKUs appearing across multiple orders.
Drawbacks: Requires sorting after picking, needs tracking systems to avoid confusion.
Zone picking
Zone picking divides the warehouse into sections, with dedicated pickers assigned to specific zones. Orders pass from zone to zone, gradually accumulating items until complete. Each picker only operates in their designated area, reducing travel and improving location knowledge in pick and pack operations.
Best for: High-volume pick and pack operations, large warehouses, businesses with distinct product categories.
Drawbacks: Complex coordination required, potential bottlenecks if zones are unbalanced, needs warehouse management software.
Wave picking (cluster picking)
Wave picking combines batch and zone approaches by releasing groups of similar orders at scheduled intervals (waves). Software analyses orders and creates optimised picking waves based on factors like shipping deadlines, product locations and picker availability. Pickers work simultaneously across zones, with consolidation happening at packing stations. This advanced pick and pack method maximises efficiency.
Best for: Large retailers with high volumes, businesses with tight shipping cut-off times, operations using warehouse management systems for pick and pack.
Drawbacks: Requires sophisticated software, complex to manage without technology, demands careful coordination.
| Pick and pack method | Order volume | Complexity | Technology needed |
|---|---|---|---|
| Pick and pack method Piece picking | Order volume Low | Complexity Simple | Technology needed Minimal |
| Pick and pack method Batch picking | Order volume Medium | Complexity Moderate | Technology needed Basic WMS helpful |
| Pick and pack method Zone picking | Order volume High | Complexity Complex | Technology needed WMS recommended |
| Pick and pack method Wave picking | Order volume Very high | Complexity Very complex | Technology needed WMS essential |
Packing methods and best practice
Effective packing within your pick and pack workflow balances product protection, material costs, packing speed and shipping expenses. Several approaches help optimise this stage:
Standard packaging
Using predetermined box sizes and packing materials for common order profiles speeds up pick and pack packing decisions and reduces training time. Standard packaging works well when product ranges are predictable and order sizes fall into clear categories.
Custom packaging
Selecting packaging based on each specific order contents minimises void fill, reduces dimensional weight charges and improves the unboxing experience. This pick and pack approach requires more decision-making but can significantly reduce shipping costs for varied product sizes.
Pick and pack packing best practice
- ✅ Verify order contents against the packing slip before sealing packages.
- ✅ Use appropriate cushioning materials to prevent damage during transit.
- ✅ Select box sizes that minimise empty space while protecting products.
- ✅ Print clear, scannable shipping labels positioned consistently on packages.
- ✅ Include packing slips or invoices inside packages where required.
- ✅ Check packaging integrity before sending items to dispatch.
- ✅ Use eco-friendly materials where possible to meet sustainability goals.
Key challenges in pick and pack
Pick and pack warehouse operations face several persistent challenges that impact efficiency:
- ⚠️ Picking errors: Wrong items, incorrect quantities or missed products in pick and pack lead to returns, refunds and customer dissatisfaction.
- ⚠️ Travel time: Excessive walking distances between pick locations waste time and reduce pick and pack productivity.
- ⚠️ Inventory inaccuracy: Stock level discrepancies cause failed picks, backorders and order delays in pick and pack operations.
- ⚠️ Peak season surges: Temporary volume increases during sales periods strain pick and pack capacity and increase error rates.
- ⚠️ Labour costs: Manual pick and pack is labour-intensive, making staffing costs a major expense.
- ⚠️ Training requirements: New staff need time to learn warehouse layouts, systems and pick and pack procedures.
- ⚠️ Order complexity: Multi-item orders, fragile products and special handling requirements slow down pick and pack processes.
Addressing these pick and pack challenges requires a combination of process optimisation, technology investment, layout improvements and staff training.
Software solutions for pick and pack
Modern warehouse technology transforms pick and pack from manual, error-prone processes into streamlined, data-driven operations. Key software capabilities include:
Warehouse management systems (WMS)
A warehouse management system (WMS) coordinate all pick and pack activities, from receiving inventory to shipping orders. They generate optimised pick lists, direct pickers along efficient routes, track real-time inventory locations, manage multiple picking methods simultaneously, and integrate with ecommerce platforms and shipping carriers to streamline pick and pack fulfilment.
Barcode scanning and RFID
Scanning technology verifies each pick instantly, virtually eliminating picking errors in pick and pack operations. Pickers scan item barcodes and location labels, receiving immediate confirmation or error alerts. This creates an audit trail for every movement and automatically updates inventory records.
Mobile picking devices
Handheld terminals or smartphones guide pickers through the warehouse with turn-by-turn directions, display product images for verification, show real-time inventory availability, and allow digital signature capture for quality checks during pick and pack.
Automation and robotics
Advanced pick and pack warehouses deploy automated storage and retrieval systems (AS/RS), goods-to-person robots that bring items to pickers, automated conveyor systems for order routing, and robotic packing stations for repetitive tasks.
Pick and pack with Orderwise
Orderwise is a warehouse-first, stock-centric ERP solution designed specifically for wholesalers, distributors and trade-focused retailers who manage physical and online stores. Unlike general-purpose ERP systems that simply include warehouse functionality, Orderwise places inventory management and pick and pack operations at its core.
The platform supports efficient pick and pack through comprehensive functionality built for truly stock-centric businesses:
- ✅ Integrated picking: Generate optimised pick lists automatically from sales orders, supporting multiple pick and pack methods including batch, zone and wave approaches.
- ✅ Barcode scanning: Mobile barcode scanning validates every pick in real time during pick and pack, reducing errors and updating stock levels instantly.
- ✅ Packing station functionality: Streamlined packing screens guide staff through pick and pack order verification, packaging selection and label printing workflows.
- ✅ Purchase order system: Full purchase order management ensures stock availability for pick and pack operations, with automated reordering when inventory falls below set thresholds.
- ✅ Real-time visibility: Track pick and pack order progress from pick list generation through packing completion and dispatch, with status updates visible across departments.
- ✅ Multi-location support: Manage pick and pack across multiple warehouses or zones with centralised control and reporting.
- ✅ Carrier integration: Connect directly with shipping carriers to generate labels, book collections and provide tracking information automatically for completed pick and pack orders.
Because Orderwise understands that wholesalers and distributors operate differently from pure retailers or manufacturers, the system handles complex requirements like trade counter sales, mixed B2B and B2C orders, and stock allocation across physical stores and online channels.
This warehouse-first approach means pick and pack processes integrate naturally with stock control, purchasing, sales order processing and dispatch, creating seamless workflows that reduce manual data entry and eliminate information gaps between departments.
Table of contents
- What is picking and packing? Definition and explanation
- Why pick and pack matters
- The pick and pack process
- Picking methods explained
- Packing methods and best practice
- Key challenges in pick and pack
- Software solutions for pick and pack
- Pick and pack with Orderwise
- Best practice tips for efficiency
- Frequently asked questions (FAQ)
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Best practice tips for efficiency
Implementing these proven strategies helps maximise pick and pack performance:
Warehouse layout optimisation
- Position fast-moving items (high-velocity SKUs) closest to packing stations to speed pick and pack.
- Group frequently ordered items together to reduce pick and pack travel distances.
- Use clear, logical location labelling systems that are easy to understand during pick and pack.
- Maintain wide aisles for safe, efficient movement during busy pick and pack periods.
Inventory management
- Conduct regular cycle counts to maintain inventory accuracy for pick and pack.
- Implement bin locations and directed putaway to ensure consistent product placement.
- Use ABC analysis to prioritise high-value or fast-moving items in pick and pack zones.
- Monitor stock levels closely to prevent out-of-stocks during pick and pack operations.
Process improvements
- Establish clear standard operating procedures for pick and pack staff.
- Set measurable pick and pack performance targets (picks per hour, accuracy rates).
- Review and optimise pick and pack routes regularly based on order patterns.
- Schedule pick and pack waves strategically around carrier collection times.
Technology adoption
- Invest in barcode scanning to eliminate manual errors in pick and pack.
- Deploy warehouse management software appropriate for your pick and pack volume.
- Use mobile devices to give pickers real-time information during pick and pack.
- Integrate systems to automate data flow between pick and pack platforms.
Staff training and engagement
- Provide thorough onboarding training for new pick and pack warehouse staff.
- Cross-train employees on multiple pick and pack methods for flexibility.
- Share pick and pack performance metrics to encourage healthy competition.
- Gather feedback from front-line staff about pick and pack process bottlenecks.
What is the difference between picking and packing?
In pick and pack operations, picking is the process of retrieving items from warehouse storage locations to fulfil orders, while packing is the process of preparing those items securely in shipping containers with appropriate materials, labels and documentation. Picking focuses on selection and collection, packing focuses on preparation and protection.
What pick and pack method is most efficient?
Wave picking is generally most efficient for high-volume pick and pack operations because it optimises routes and consolidates similar orders. However, the best pick and pack method depends on your specific circumstances: piece picking suits low volumes, batch picking works for growing businesses, and zone picking handles high volumes with large warehouses.
What causes pick and pack errors?
Common causes of pick and pack errors include poor warehouse layout requiring excessive travel, inaccurate inventory records leading to wrong locations, unclear product labelling making items hard to identify, inadequate staff training on pick and pack systems and procedures, fatigue during long shifts or peak periods, and lack of verification systems to catch mistakes.
How do you measure pick and pack efficiency?
Key pick and pack metrics include picks per hour (productivity), picking accuracy rate (items picked correctly), order cycle time (start to finish duration), travel distance per pick, and cost per pick. Tracking these pick and pack metrics over time reveals trends and highlights improvement opportunities.
What is a pick and pack warehouse?
A pick and pack warehouse is a facility that stores inventory and fulfils customer orders by picking items from storage locations and packing them for shipment. Pick and pack warehouses may be operated in-house or by third-party logistics providers (3PLs) who handle the entire pick and pack fulfilment process on behalf of ecommerce businesses.
Should I outsource pick and pack?
Outsourcing pick and pack to a third-party logistics provider (3PL) makes sense when you lack warehouse space, face seasonal volume fluctuations, want to focus on core business activities, or need rapid scaling capability. In-house pick and pack operations offer more control and potentially lower per-unit costs at stable high volumes.
What is pick and pack fulfilment?
Pick and pack fulfilment is the complete order processing workflow that includes receiving customer orders, picking items from inventory, packing them securely, and shipping packages to customers. It represents the physical execution of ecommerce or wholesale orders within a warehouse environment.