Many successful distribution centers begin by examining their inventory and order profiles. Some of the important questions they ask before selecting picking strategy include:

• How many stock keeping units (SKUs) do I have, and how does this mix change over time?

• What is the physical size of the various SKUs?

• How much inventory of each SKU do I need to maintain in stock?

• What are the activity levels of the various SKUs, and do the statistics follow the typical 80% rule (20% of the SKUs make up 80% of the volume)?

• Can SKUs be organized by a scheme other than by activity level (i.e., pens and paper may be ordered together)

• Is my inventory time sensitive?

• Does my business have seasonality, and do I need to build in extra capacity for peak periods?

• What is the typical order size (items, lines, volume)?

• What time commitment have I made to process an order, and will this vary by order type (rush versus standard)?

“The best picking operations I’ve seen are tightly integrated with both upstream and downstream operations .” - Systems Designer John Yacka

The answers to these questions and others are enormously useful in helping the management of a distribution center select a picking strategy. The number, size, and amount of inventory for each SKU will provide insight into how much storage capacity to plan for. Information on inventory turnover will help management decide whether separate picking areas are needed for SKUs with different activity levels. Inventory turnover will also provide information on the appropriate physical size of both the reserve storage and forward picking areas.

Of course, successful distribution centers don’t just focus on the orderpicking operation itself. A world class picking strategy depends on streamlined delivery of products to and from the orderpicking area, a good tracking mechanism for orders moving through the facility, and effective inventory management. Industrial trucks, returnable containers, conveyors, a warehouse management system, even dock equipment, play critical roles in moving goods in one door of the DC and out the other.

“The best picking operations I’ve seen are tightly integrated into both upstream and downstream operations,” says John Yacka, a systems designer with Gross & Associates. “In fact, one could argue that to obtain the most effective orderpicking operation, a facility has to do everything well, because you do not want to have bottlenecks anywhere in the process.”

In his consulting role, which involves designing DCs of all types, Yacka has had an opportunity to study some of the world's best picking operations. “The goal of the very best DCs out there is to continuously improve, and that’s key because the distribution environment is extremely dynamic. What you did well yesterday may not even be relevant today should your SKU mix change, the size or number of your orders change, and so on.”

In this special edition of Design Plans & Ideas, we examine how five distribution centers with different missions employ a variety of materials handling equipment and technologies to achieve costefficient picking. The facilities featured in this issue are:

• A DC for mail order goods that efficiently converts pallets into individual pieces (“singles”) through multiple pick zones and several types of storage media

• A DC for dry grocery goods that relies on segregation of product by activity level to achieve efficient picking operations

• A DC for auto parts efficiently handles both standard and rush orders in a single orderpicking system

• A DC for consumer electronics segregates SKUs by depth of inventory required, creating a space-efficient staging/picking area

• A DC for commercial electronics relies on a multi-zone picking strategy to manage orders consisting of broken case, full case, and full pallet quantities

On the following pages, Design Plans & Ideas will present a physical layout of each of these facilities, describing the key features and strategies that contribute to effective orderpicking operations. These tried-and-true ideas provide valuable insight into ways that you can improve your own DC’s bottom line.

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