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Originally published on March 30, 2023
Last updated on March 6, 2026
Pick & Pack And How To Improve Your Warehouse Processes
Getting your pick-and-pack process right is essential to efficient e-commerce order fulfillment and customer satisfaction. Picking and packing involves four steps – order receiving, order picking, order packing, and order shipping. Yet, the simplicity of the concept masks a complex reality. There are dozens of combinations of methods and strategies you could tap into for […]
Making the pick and pack process more efficient is possible with these tips from Red Stag Fulfillment. Image by rawpixel on Freepik.
Getting your pick-and-pack process right is essential to efficient e-commerce order fulfillment and customer satisfaction. Picking and packing involves four steps – order receiving, order picking, order packing, and order shipping. Yet, the simplicity of the concept masks a complex reality. There are dozens of combinations of methods and strategies you could tap into for a seamless pick-and-pack workflow, but how do you know which is the best for you?
Getting the picking and packing right means taking cognizance of your business’ size, products, product diversity, order volume, and target turnaround times. Irrespective of how your e-commerce fulfillment is currently performing, there is always room to improve warehouse picking and packing. Let’s begin with the most widely used methods to help you identify areas where efficiency opportunities lie.
Picking and packing methods
Piece picking
Here, one person picks and packs a single order at a time. They’ll move through the warehouse, pick up the items as specified on the list and then take the order to the packing station for onward shipping. Piece picking usually works for small businesses that experience a trickle of orders each day.
Batch picking
This involves picking and packing batches of orders. A single batch will include orders easily assembled at one part of the warehouse. The goal is to navigate the most efficient path through the warehouse. Batch picking is a great technique if your business has a stream of orders that is large enough to be organized into groups of orders. It could work for small businesses too that do not have tight order delivery timelines. They can accumulate orders throughout the day and do all the picking in one go.
Zone picking
Ideal for large warehouses, workers in one zone partially pick and pack order items before passing them onto the next zone in line, where additional items are added and packed. Once the last zone finishes packing, the order is moved to the packing station and prepared for shipping. Zone picking is complex and can only work where warehouse management technology is used.
Wave picking
Wave picking is zone picking but in batches. Warehouse workers pick and pack order batches in their zone, then move them to a different zone for additional picking.
Pick and pack warehouse inventory storage strategies
In a 2022 PRG survey, one in five warehouse managers considered the storage area as the most congested aspect of their operations. An improvement compared to the 2021 findings, where nearly one in three were of the same view. Either way, it points to inventory storage as a key impediment to effective order picking. Let’s look at the five main strategies warehouses adopted for inventory storage. Note that these five are not mutually exclusive – you can combine more than one approach.
Like-with-Like
This one is sometimes considered the most simple inventory management strategy. It is not too different from how you would organize your wardrobe. Items are arranged by size, color, and category. So shirts together, cups together, microwaves together, etc. On the face of it, it looks orderly and efficient. But like-with-like often slows down the pick-and-pack process while increasing the risk of errors. If you have two identical items next to each other but whose only difference is size, the wrong one can easily get picked.
Volume-based
Place items of the greatest volume closest to the warehouse entry/exit points. Slow-moving products are pushed to the back. Workers cover shorter distances than they would in other warehouse storage plans. This is important given that pickers typically spend as much as 60 percent of their time walking through the warehouse and moving items around.
Chaotic
No systematic use of space here. You place new items randomly, depending on where shelf space is available. While it sounds disorderly, you are less likely to pick the wrong item than in a Like-for-Like setup. Here’s why — warehouse inventory management software directs the worker to the exact spot and shows the shortest path. It is not surrounded by near-identical products (e.g. same shirt but a smaller size), meaning the item stands out.
Class-based
Items are grouped into categories based on one or more shared attributes. Examples of shared attributes include size, turnover rate, or required packaging. New items are added to available shelf space within their class.
Mobile shelf
A more recent but rapidly growing strategy, mobile shelf picking systems use robots to move shelves to where the picker is seated and then return the shelves to their position. The picker does not move from their location. Virtually, robots do all the hard work.
As of 2022, under 5 percent of warehouses used robots. About a quarter of warehouse managers are considering investing in mobile robots. An ABI Research report predicts over 4 million robots will be working in 50,000 warehouses by 2025.
Pick and pack best practices
The methods and strategies we have covered so far mostly relate to the picking aspect of the pick-and-pack process. But the packing is just as important as the picking for successful e-commerce fulfillment. Here are some good practices for getting the most out of your packing.
Place items in the smallest box possible to reduce your costs from volume-based and weight-based freight charges.
Rescan each item before packing to ensure the correct product will be shipped.
Warehouse management software should include the correct box size information for each order. That way, the packers do not have to spend time guessing what box is best suited.
Warehouse management software should include specifications on what infill to use. Packers can quickly reach for the right infill needed to protect the product during shipping.
Final thoughts
E-commerce stores need all the help they can get to stay on top of their pick-and-pack process. The right software is vital to creating a smooth, consistent transition from your store, the warehouse, logistics providers, and, eventually, the customer. Ideally, you want a single end-to-end solution that covers everything from generating barcodes, batching orders, managing inventory, and facilitating packing and shipping. That’s not always possible, though. It may be necessary to procure multiple applications as long as they can be seamlessly integrated to form a coherent stack. Think about the growth when choosing the most appropriate software so you can scale capacity as needed.
Meet Your Author:
Alex Selwitz is the Director of SEO for Red Stag Fulfillment, an eCommerce fulfillment warehouse that was born out of eCommerce. He has years of experience in eCommerce and digital marketing. In his free time, Alex enjoys playing guitar and learning about new trends in the digital world.
“The core of maturity, that I see, is starting with a unified view of inventory. I’ve got to be able to accurately represent what do I have, make sure that I know where it’s located so I can get it to my customers quickly.”
— Troy Graham, Descartes
What is the first thing I should fix if I want to scale operations?
Start with a unified view of inventory. The core of maturity starts with being able to accurately represent what you do have and make sure that you know where it’s located to get it to customers quickly. Without a unified view across your warehouses, 3PLs, and vendors, you cannot make the best decisions because you don’t have the best information at hand.
With Inventory Visibility, Businesses Can Make Smarter Allocation Decisions
Once inventory is centralized, businesses can move from reactive updates to intentional allocation. They can decide how much inventory to expose to each channel, when to use buffers, which marketplaces need extra protection, and how seasonality or campaign performance influence availability.
Once I know what inventory I have, how should I decide where to make it available?
Inventory allocation should reflect where orders are coming from, where marketing is working, and which channels carry the most risk. Once you know what you have and where it is located, you can think more strategically using centralized inventory to make prioritization happen automatically. One fertilizer company lost a little over 5,000 orders in one weekend because someone manually uploaded the wrong available inventory to Amazon.
Better Inventory Data Improves Planning, Purchasing, and Growth Bets
Better visibility turns inventory data into a planning tool. With insight into sales velocity, inventory levels, vendors, and channel performance, businesses can make more informed replenishment decisions, avoid overbuying, and test new product lines or vendor-supplied inventory without taking on unnecessary risk.
“You have to have unified inventory to know how to price your products just at that basic level. I can’t price my products if I don’t know the true cost to get it.”
— Mike Bernico, Flxpoint
How does better inventory data help me make smarter buying decisions?
It lets you measure whether your plan is working before you commit more capital. A key question becomes: “Did my plan work? Am I overleveraged in one place or another?” Centralized systems can also help businesses test new product lines or vendor relationships by looking at sales velocity by channel, allowing them to take risks in a calculated and measured way.
Intelligent Order Routing Turns Inventory Complexity Into Automation
Once inventory and supplier data are reliable, businesses can automate fulfillment decisions. Orders can be routed based on cost, speed, margin, location, warehouse priority, vendor fallback, split-shipment rules, or customer expectations. This helps hybrid fulfillment scale because every order does not need a manual review.
How do I decide the best way to fulfill each order?
There is no single answer, which is why order routing needs to account for the context of each order. Intelligent order routing is not just sending an order to someone who has stock; it is taking each and every order and treating it like its own unique use case. Depending on the order, the business may prioritize speed, margin, an internal warehouse, vendor fallback, or preventing split shipments.
Supplier Inventory Sync Extends Inventory Beyond the Four Walls
For hybrid fulfillment to work, supplier inventory needs to become part of the operating model. Supplier sync does not always require advanced technology; it can happen through automated files, FTP, email, APIs, EDI, or ecommerce storefront integrations. The key is replacing manual updates with automated, reliable supplier data.
Can supplier inventory really be treated like part of my own inventory?
Yes, but the goal is not necessarily to force every supplier into a complex integration. Real-time supplier sync can be defined as any way to get an automated update from a supplier, such as Google Sheets, email, FTP, API, EDI, or ecommerce storefront connections. The key is that accurate supplier stock is foundational. If you don’t have an accurate view of what is in stock with your suppliers, you cannot tell your sales channel accurately what’s available.
Exception-Based Workflows Keep Humans Focused Where They Matter
Automation does not remove people from the process. Mature operations let technology handle the routine majority while humans focus on exceptions, such as high-value orders, fraud risk, compliance requirements, restricted products, export rules, or unusual fulfillment scenarios.
If my business has special cases, can automation still work?
Yes. The point is not to automate every possible decision; it is to automate the routine work and surface the exceptions. Businesses should not have to look at every single order. Instead, technology can highlight high-value orders, risky locations, or compliance requirements. The goal is to take care of the 80% of workflows that are obvious while still allowing human review when specific exceptions arise.
The Right Inventory Technology Should Fit the Business, Not Overwhelm It
Software decisions should be based on business fit, not popularity, feature volume, or broad “all-in-one” promises. Growing ecommerce businesses should identify their highest-impact bottleneck, prioritize what matters now, and choose technology that is right-sized but flexible enough to support future phases of growth.
How should I choose software without overbuying or picking the wrong system?
Start with your priorities, not the biggest feature list. Avoid an all-in-one system that claims to “do everything under the sun” and look for a “best of breed approach” with systems that can scale as you add channels or vendors. The practical advice is to stack rank what matters now, make sure the system can support future phases, and choose technology that fits your business rather than overwhelming it.
How to Scale Ecommerce Operations Beyond Spreadsheets
For many growing ecommerce businesses, Finale and Flxpoint work together as a practical answer to these challenges. Finale helps centralize and manage internal inventory, purchasing, warehouse operations, and stock visibility, while Flxpoint helps connect vendor inventory, automate supplier sync, and route orders across hybrid fulfillment networks. Together, they give businesses a best-of-breed way to improve inventory accuracy, reduce spreadsheet work, and scale fulfillment without forcing every process into a one-size-fits-all system.
Ecommerce Fulfillment Operations FAQ
What Is Ecommerce Fulfillment Operations?
Ecommerce fulfillment operations are the processes that move an online order from purchase to delivery. This includes managing inventory, syncing product availability across channels, routing orders to the right warehouse, 3PL, supplier, or vendor, and making sure the customer receives the right product on time. As discussed in the webinar, fulfillment is no longer limited to “what’s in my warehouse these days”; growing businesses may rely on internal warehouses, 3PLs, marketplace fulfillment services, and supplier inventory at the same time.
What Are Ecommerce Fulfillment Operation Examples?
Examples of ecommerce fulfillment operations include updating inventory across Shopify, Amazon, Walmart, and other sales channels; allocating inventory to specific marketplaces; sending orders to an internal warehouse, 3PL, or vendor; syncing supplier inventory through files, APIs, EDI, email, or FTP; replenishing warehouse stock based on sales velocity; and flagging exceptions such as high-value orders, compliance requirements, or restricted products. In the webinar, the speakers also discussed hybrid fulfillment examples where a business may fulfill some products from its own warehouse and use vendors as a fallback or extension of available inventory.
How Can I Track My Inventory at an Ecommerce Fulfillment Center?
The best way to track inventory at an ecommerce fulfillment center is to create a unified inventory view that shows what is available, where it is located, and how that inventory connects to each sales channel. That means tracking inventory across internal warehouses, fulfillment centers, 3PLs, marketplace fulfillment programs, and supplier locations instead of relying on disconnected spreadsheets. The webinar emphasized that businesses need to “accurately represent” what they have and know where it is located so they can get products to customers quickly.
How Can I Connect My Inventory to My Supplier?
You can connect supplier inventory through several methods, depending on what the supplier supports. The webinar discussed low-tech and advanced options, including automated Excel or CSV files, Google Sheets, email updates, FTP servers, APIs, EDI, and direct connections to ecommerce storefronts such as Shopify, BigCommerce, or Magento. The key is to ask suppliers how they share inventory today, then use a system that can automate that data flow instead of manually copying supplier inventory into spreadsheets.
What Is Ecommerce Order Routing?
Ecommerce order routing is the process of deciding where an order is fulfilled from after a customer buys. In a simple operation, every order may go to one warehouse. In a more complex or hybrid fulfillment model, the best fulfillment source may depend on inventory availability, shipping speed, cost, margin, customer location, warehouse priority, vendor fallback rules, or whether the order should be split. The webinar described intelligent order routing as treating each order like its own use case, so businesses can automate the best fulfillment decision without manually reviewing every order.