Order Picking Optimization: 7 Practical Tips for Your Warehouse

Why optimize order picking?

In many warehouses, order picking is the most time-consuming activity. An estimated 50 to 60 percent of total warehouse costs go toward collecting orders. Small improvements in the picking process therefore have a big effect on overall efficiency and costs.

Below you'll find 7 practical tips to improve your order picking — from simple adjustments to structural changes.

1. Optimize walking routes

Most of the time in order picking is spent walking. By placing products that are often ordered together close to each other, you shorten the walking distance per order. Analyze your order data to determine which product combinations occur most often and adjust your warehouse layout accordingly.

A simple rule of thumb: place the fastest-moving products closest to the packing station.

2. Use clear location labels

Every pick location must be unambiguously identified. Use a consistent system — for example row, rack, level, bin — and make sure the labels are clearly visible. This helps both experienced employees and newcomers find products quickly.

3. Introduce scan verification

Barcode scanning during picking is one of the most effective ways to reduce picking errors. By scanning each picked product, the system immediately checks whether the correct item was picked. Errors are flagged the moment they occur, not once they reach the customer.

4. Replace paper pick lists

Paper pick lists offer no real-time information and no means of verification. A digital pick list on a phone or tablet shows the exact location, the product, and the quantity. On top of that, the system automatically records turnaround times and error rates.

5. Analyze your picking data

When you pick digitally, you automatically generate valuable data. Use this information to identify bottlenecks:

• Which products cause the most errors?
• Which orders take the longest?
• At which times of day is productivity highest?
• Where in the warehouse do most delays occur?

Data-driven optimization delivers structural improvements, unlike ad-hoc adjustments.

6. Ensure a logical warehouse layout

A well-thought-out warehouse layout is the foundation of efficient picking. A few principles:

• ABC analysis: Classify products based on pick frequency. A-products (high frequency) go in the most accessible locations.
• Fixed locations: Assign each product a fixed pick location. This speeds up searching and makes onboarding new employees easier.
• Ergonomics: Place heavy products at hip to shoulder height to limit physical strain.

7. Onboard new employees quickly

Onboarding new employees or temporary workers costs time and money. Digital picking guidance — with location instructions and scan verification — enables new employees to work independently sooner. They don't need to know the entire warehouse by heart; the system guides them step by step.

Start with the biggest impact

You don't need to implement all the tips at once. Start with the change that delivers the most for your situation. For many warehouses, that is the switch from paper to digital pick lists, combined with scan verification. From there, you can keep optimizing step by step based on data from your picking process.