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    Warehouse Order Picking Optimization

    SUPPLY CHAIN LOGISTICS

     

    Ensuring fast and efficient warehouse operations and high ROI.

    About the customer

    A corporation that runs a chain of warehouses for external retail giants who store products before they get shipped to distributors and retailers.

    Business Problem

    The client signed up with ORMAE to explore a optimization solution to solve irritants in the existing method of doing things. The solution had to:

    • The product portfolio included a list of promotions available that could be applied as per demands of each time period.
    • The promotions were aligned with different lifts. Each affected the KPIs to different degrees.
    • A schedule was required to maximize the potential lift of the desired KPI for the planned time period. This had to be done by choosing the best promotion for each product in each time period.
    • Different KPIs include Gross Margin, Net Revenue, Market Share, Retailer Margin, and others.

    Our Approach

    ORMAE's scientists studied the problems in their entirety, the rules to be followed and the constraints around them. ORMAE adopted MIP Mathematical Modeling methodology to arrive at a suitable solution. The parameters included:

    Complete order selection

    Ensuring that if an order is selected in a batch, all the items under this order are picked up.

     

    Ensuring items are picked up from nearby/adjacent locations.

     

    Avoiding congestion at picking zones by limiting the number of items that can be picked from a location.

     

    Limitation on the number of orders and quantity of items that can be selected in a batch.

     

    Ensuring a good mix of products to be picked by restricting order types and item types.

    Fulfilling orders by priority.

    The Result

    ORMAE's optimization solution covered the entre span of the warehouse and ensured full RoI.

    Speed!

    Faster order picking in a given timeframe.

     

    Higher rate of order fulfillment.

    Better inventory management and space utilization at the warehouse.

    Restricting unnecessary movement of pickers.

     

    Uniform load assignment to pickers.

    Get in Touch

    Have a project in mind?

    Looking for collaboration?
    Send an email to bd@ormae.com
    for availability and enquires.

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