Labor-Saving in Order Picking- A Real Time Study Advancing Lean Operations

Abstract

Purpose: Efficient warehouse operations rely heavily on optimizing order picking processes, which are known to constitute a significant portion of overall operational costs. The aim is to enhance operational efficiency and cost-effectiveness by minimizing non-value-added tasks in warehouse operations.

Materials and Methods: This study investigates the transition from an Assisted-Picker model to a Solo-Picker model at a prominent 3PL service provider in India. The analysis compares two approaches for picking orders—pairing laborers versus employing a Solo-Picker—using metrics such as travel time and picking time.

Findings: Results reveal that while the Assisted-Picker model may initially show faster completion times for individual orders, the Solo-Picker model proves more efficient overall. This is attributed to the elimination of idle time associated with helpers and enhanced labor utilization efficiency. Real-time productivity data collected during the study period demonstrate a remarkable 44% increase in productivity with the Solo-Picker model, resulting in substantial Labor-Savings and significant reductions in operational costs.

Implications to Theory, Practice and Policy: This study highlights the critical importance of reevaluating traditional labor allocation strategies in warehouse environments. By identifying and eliminating non-value-added work, warehouses can move closer to lean and efficient supply chain management practices, ultimately enhancing overall productivity and cost-efficiency.