Enhancing the order picking process through a new storage assignment strategy in forward-reserve area

TLDR

E‑commerce generates many small orders and returns, making effective storage assignment and batching essential for maintaining warehouse responsiveness and order completion times. The study investigates a new storage assignment strategy, first used by a large footwear wholesaler, to improve order‑picking performance. Using a full‑factorial simulation design, the authors compared total picking time and order lead time under congestion between the new strategy and conventional storage assignments. The analysis shows the new strategy markedly reduces picking travel distances and order completion time, thereby enhancing customer satisfaction.

Abstract

This paper reexamines the order picking process in a warehouse facing the challenges that e-commerce brings about and which are characterised by a very large number of small sized orders and returns. Implementing effective storage assignment strategies combined with efficient batching, in this context, is very fundamental to keep the warehouse’s responsiveness and order completion times up to the standards. This paper investigates a new storage assignment strategy, initially implemented by a large shoes and footwear wholesaler, to enhance the performance of the order picking process in its warehouses. The impact of this new storage assignment strategy on the performance of the order picking process is analysed via simulation. The performance of the system, measured in terms of total picking time as well as order lead time while taking congestion into account, is compared to the cases where conventional storage assignment strategies are implemented. A full factorial design is set up and the simulation output is statistically analysed. The results of this analysis are reported and thoroughly discussed. Attending to the results, the proposed strategy presents a remarkable potential to shorten total picking travel distances and order completion time and consequently customer satisfaction.