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Terms & explanations relating to logistics, supply chain management and e-commerce

Paperless order Picking

The paperless order picking is a process in logistics and warehousing where goods are assembled without physical documents, such as paper picking lists. Instead, digital systems are employed, allowing for electronic order transmission. The pickers in the warehouse receive the order data on mobile devices or stationary terminals connected to a central IT system, such as a Warehouse Management System. During the processing of the orders, electronic systems such as barcode or RFID scanners assist.

Paperless order picking is particularly suitable for companies with a high order volume and variable products. It increases efficiency, reduces error susceptibility, and saves costs, making it a central method in modern logistics.

Process of Paperless Order Picking

  • Order Capture
    The picking order is recorded in the warehouse management system. Often, an automated transmission occurs from a connected ERP or online shop system. Many companies also use EDI (Electronic Data Interchange) to exchange order data automatically with business partners. The EDI data can be directly imported into the warehouse management system, eliminating manual entries. The order data is transmitted electronically to the picker. This information includes storage location, article number, quantity, and any special instructions.

  • Route Planning
    By utilizing modern technologies and strategic warehouse design, it is ensured that pickers choose the best possible routes, improving both the speed and accuracy of the picking process. A well-thought-out storage layout, where frequently needed items are stored near the picking stations, is a crucial aspect of route planning.

  • Picking the Items
    The pickers take the items. Using scanners or other digital capture systems, it is verified that the correct item has been picked.

  • Real-Time Confirmation
    After selecting and scanning the items, the system immediately provides feedback on whether the picking was correct and reports the progress of the order to the Warehouse Management System. Once all items for an order have been picked, a final confirmation occurs in the warehouse management system. This updates the inventory in real-time and signals the completion of the order. 

Advantages of Paperless Order Picking

Paperless order picking offers numerous advantages, especially in modern warehousing and logistics centers, contributing to efficiency increases and error prevention. Here are the main benefits:

  • Efficiency Increase
    The fully electronic order processing leads to significantly faster picking processes and shorter processing times. Time-consuming activities such as searching for and sorting paper documents are eliminated. Digital instructions guide employees through the process and reduce unnecessary travel. The time spent searching for products is minimized.

  • Error Reduction

    The automatic real-time verification of picked items through barcode or RFID scans, as well as clear instructions, helps significantly reduce human errors such as mix-ups or incorrect quantities. The system provides immediate feedback when a wrong item or incorrect quantity is selected, thereby improving the quality of the picking process.

  • Cost Savings
    The elimination of paper lists saves material costs and reduces environmental impact. Additionally, costs are lowered due to the reduced error rate and faster processing of orders.

  • Improved Ergonomics and Workplace Safety
    Employees benefit from a more ergonomic way of working, as they no longer have to deal with cumbersome paper lists and clipboards. Modern systems, such as handheld scanners, enable hands-free operation and minimize unnecessary movements, increasing workplace safety and reducing the risk of injury.

  • Higher Employee Satisfaction

    The user-friendly and intuitive operation of the systems reduces training time and makes it easier for new employees to get started. Experienced employees also benefit as their tasks are designed to be more efficient and enjoyable. The modern technical equipment promotes a positive working environment and increases motivation.

  • Real-Time Monitoring and Transparency
    The warehouse management system documents all steps of the picking process in real-time. This allows for easy tracking of which order is at which stage at any time. Warehouse management can continuously monitor inventory levels and picking status and respond quickly when necessary, such as in cases of delays or bottlenecks. 

  • Flexibility and Scalability

    Paperless picking systems prove to be highly adaptable and can be quickly integrated into existing infrastructures. These systems can easily adjust to changing requirements, such as higher order volumes or seasonal fluctuations.