What are the best ways to measure order picking accuracy in a distribution center?

Order picking accuracy is a key performance indicator (KPI) for distribution centers, as it reflects how well they fulfill customer orders and avoid errors, waste, and returns. However, measuring order picking accuracy can be challenging, as there are different methods and metrics to consider. In this article, you will learn about some of the best ways to measure order picking accuracy in a distribution center, and how to use them to improve your operations and customer satisfaction.

1 Define order picking accuracy

Order picking accuracy is the percentage of orders that are picked correctly, without any mistakes or discrepancies. It can be calculated by dividing the number of orders that are picked without errors by the total number of orders that are picked. Order picking accuracy can also be expressed as the inverse of the error rate, which is the percentage of orders that have errors or discrepancies. Order picking accuracy can vary depending on the level of detail and the type of errors that are considered, such as quantity, quality, location, or barcode errors.

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Farhan Faiyaz, MIB DCA CILT

National Manager-Operations/Resource Management/Commercial @Saudi Bulk Transport | Strategic Leadership | SCM & Logistics Mgmt | Operations Excellence | P&L & Risk Management | BD | Freight Forwarding | Team Building |
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Accurate order picking is vital in distribution centers. Key metrics include "pick accuracy," comparing items picked to orders filled. "Order accuracy" assesses entire orders. Utilizing technology like barcode scanners and RFID systems enhances accuracy. "Cycle counting" involves periodic spot checks. "Error rate" calculates mistakes per order or item. "Fill rate" evaluates the percentage of items shipped against ordered. Implementing real-time monitoring, performance reviews, and feedback loops aids continuous improvement. Regular audits and training programs can further optimize order picking accuracy.

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Vellanki Sriharsha

Applied AI Thought Leader | Full Stack Product & Platform Builder | Customer Engagement is Bloodline | Digital Souls for Businesses are Must Have| AI Advisor & Consultant | Creating Valuable Solutions
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Firstly the definition for picking accuracy should be at a line item level. Definition of pick accuracy should be - Picking right SKU, right quantity from the right location by the right picker into the right pick tote. Also, the accuracy should be at multiple level i.e. SKU being correct, location being correct, quantity being right etc. Each of these accuracies will help identify what area to be focused on. If the location accuracy isn't great then put away should be taken care off, if the location is fine and SKU is also fine but quantity isn't them book keeping should be looked into. It's all about leveraging the accuracy metric and taking the action item from it so the final consumer experience is awesome!

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2 Choose relevant metrics

Different metrics can be used to measure order picking accuracy, depending on the goals and characteristics of your distribution center. For example, order line accuracy is the percentage of order lines that are picked correctly, without any errors or discrepancies. This metric is ideal for distribution centers that handle a large number of order lines per order and want to minimize customer dissatisfaction. On the other hand, order fill rate measures the percentage of orders that are shipped with all the items that were ordered, without any shortages or backorders. This is beneficial for distribution centers that prioritize customer service and on-time delivery. Lastly, perfect order rate is the percentage of orders that are shipped without any errors or discrepancies and meet all customer requirements such as delivery time, quality, and documentation. This metric is most useful for distribution centers that seek excellence and competitive advantage.

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Vellanki Sriharsha

Applied AI Thought Leader | Full Stack Product & Platform Builder | Customer Engagement is Bloodline | Digital Souls for Businesses are Must Have| AI Advisor & Consultant | Creating Valuable Solutions
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TATs Pick accuracy % across levels of SKU accuracy, quantity accuracy, location accuracy, order accuracy etc. These are needed to track performace of the warehouse/distribution center.

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3 Establish benchmarks and targets

To measure order picking accuracy effectively, you need to establish benchmarks and targets that reflect your current performance and your desired improvement. Benchmarks are the average or typical values of your order picking accuracy metrics, based on historical data or industry standards. Targets are the specific or aspirational values of your order picking accuracy metrics, based on your strategic objectives or customer expectations. Benchmarks and targets can help you identify gaps and opportunities, and set realistic and measurable goals for your order picking accuracy.

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4 Implement quality control methods

To improve your order picking accuracy, you need to implement quality control methods that can prevent, detect, and correct errors or discrepancies in your order picking process. These methods can include training and feedback for order pickers, such as providing them with clear instructions and best practices, as well as giving them regular feedback and recognition for their performance. Automation and technology are also essential for reducing human error and increasing speed and accuracy, such as using conveyor belts, robots, voice picking, barcode scanners, RFID tags, or pick-to-light systems. Lastly, it’s important to verify and inspect the accuracy of your order picking at different stages of the process, whether it’s manually or automatically.

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Felippe Novaes

Coordenador de Logística | Gestão | Supply Chain| MBA em Saúde | Operações
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A implantação de um sistema WMS que faz a gestão de estoque onde controla lote e validade é uma forma de melhorar e trazer mais qualidade no processo de separação, o sistema informatizado com um processo de separação via coletor de dados onde os pedidos são separados com um roteiro a ser seguido facilita muito e traz qualidade ao processo. O sistema faz a gestão do FEFO , os itens são armazenados por código onde o separador tem que ler o endereço eo produto para efetuar a separação do item.

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5 Analyze and improve your data

To measure order picking accuracy continuously, you need to analyze and improve your data, and use it to make informed decisions and adjustments. Data analysis can help you identify the root causes and patterns of your order picking errors, such as the frequency, severity, type, location, or source of the errors. Data improvement can help you ensure the quality, accuracy, and reliability of your data, by eliminating or correcting any errors, inconsistencies, or gaps in your data collection and reporting. Data analysis and improvement can help you monitor your order picking accuracy metrics, compare them with your benchmarks and targets, and evaluate the effectiveness and impact of your quality control methods.

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Dincer Karadag

Head of Logistics at Lilium | Supply Chain Management | Leadership | Stakeholder Management | Project Management | Continuous Improvement | Inventory | Warehousing | Operational Excellence
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Some approaches for assessing order-picking accuracy are: Data analysis: Analyze order discrepancies using sophisticated tools. Periodic Audits: Perform regular checks to validate the picking procedures. Feedback Loops: Build mechanisms that allow colleagues to provide input on the accuracy of orders. Technology Integration: Track and verify picks with modern technologies like RFID. Key Performance Indicators (KPIs) should be closely monitored to identify trends. Last but not least, take action on what you have diagnosed in the light of the tools above. Increase productivity by constantly reviewing data and streamlining procedures.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Vellanki Sriharsha

Applied AI Thought Leader | Full Stack Product & Platform Builder | Customer Engagement is Bloodline | Digital Souls for Businesses are Must Have| AI Advisor & Consultant | Creating Valuable Solutions
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Having the right WMS and more importantly system which is understood and adopted by people is necessary for the pick accuracies to workout well.

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What are the best ways to measure order picking accuracy in a distribution center?

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1 Define order picking accuracy

2 Choose relevant metrics

3 Establish benchmarks and targets

4 Implement quality control methods

5 Analyze and improve your data

6 Here’s what else to consider

Logistics Management

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What are the best ways to measure order picking accuracy in a distribution center?

1

2

3

4

5

6

1 Define order picking accuracy

2 Choose relevant metrics

3 Establish benchmarks and targets

4 Implement quality control methods

5 Analyze and improve your data

6 Here’s what else to consider

Logistics Management

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