detailed note on Split case order fulfillment methods and mechanization, MB0028,

Q.2 - Write a detailed note on Split case order fulfillment methods and mechanization. ?

Ans Split-case Order Fulfillment Methods and Mechanization

This system looks at situations when bulk supplies in full cases to one or more destinations are not done. Fulfillment of orders which need different merchandise in different – small – quantities requires that ‘cases’ will have to be split, and pieces picked, repacked in cartons and ship to the customer. Mechanization helps in improving identification, pick-up and repacking the materials in addition to relieving monotony of the workers. A few and strategies of achieving this objective optimally are discussed here.

1. Order Picking Methods

Items as per customer requirements have to be picked and packed in a logical manner and assigned to personnel so that their productivity is maximized.

Accuracy of fulfillment of order is ensured by two basic factors -

a) Order Extent - it is defined as the number of order to be picked simultaneously by a picker in an assignment;. This is categorized as discrete order picking in which case a single order is selected at a time; and Batch order picking in which case the merchandise requirements of many orders are put together and selected for pick up in the geographical area which is covered in a single pass.

b) Coverage Extent - it is the physical area to be traversed by the picker in selecting merchandise for an assignment within the picking system. The personnel pick up the merchandise from a zone – the zone being a contiguous area with different picking locations. The boundaries may be fixed or dynamically adjusted to accommodate either personnel or customers. This zone is identified within the picking area. In the other method called tour picking - the entire picking area is considered for picking merchandise. Either of the strategies is adopted to meet the constraints or opportunities which maximize employee productivity and the customers’ needs.

2. Sorting

Sorting is done for the purpose of easing the operation of matching orders, merchandise and the customers for whom they are done. This activity can be done as and when orders are picked - Sort Immediate – or by merging a number of order and batches are made to consolidate the priorities for execution. This method is called Merge and Sort. The strategy used depends on the total area of the zone, the number of orders, and the type of merchandise and the economics of balancing all the above.

When orders are routed among those zones where picks are required – we call them routing the picks. When orders are routed from zone to zone, in a particular order, whether any picks are there or not, we call them chaining. When multiple zones are covered simultaneously in different zones we call them parallel routing. As can be discerned, no one single method is suitable for actual situations on site. They are formulated as a strategy for optimization of resources in view of the constraints.

3. Order Packing Methods

Order fulfilling methodology covers one more aspect – i.e. the order packing methods. When split-case is executed it becomes necessary that the merchandise is repackaged for shipment to meet the requirements of the customers. In the first method they are packed as they are picked. This is applicable in cases where the merchandise is usable by the customer directly and when the tools and packaging materials are available with the picker and he can pack them throughout the picking area.

4. Classification Schemes

In this section you will know about the coding of various methods of split picking and packing. The letters will uniquely identify the method intended to be used and all personnel in the process will know disposition status of the merchandise.

D discrete Order Picking or B atch Order Picking - Letter D or B is used

Z one Picking or Tour Picking

Pack Immediate or Assemble and Pack

BS - Batch Order Picking - Sort Immediate

BM - Batch Order Picking – Merge & Sort

ZR - Zone Picking with Routing

ZC - Zone Picking with Chaining

ZP - Zone Picking in Parallel

For example, BSDZCA means - Batch Order Picking – Sort Immediate-Discrete Order Packing – Zone Picking with Chaining and Assemble.

With this type of coding 24 ways of representing the type of split order picking and packing are identifiable.

5. Choice of Optimal Fulfillment Strategies

The choice of order fulfillment strategy depends upon the predominant order characteristics and category of distribution. They are determined by General order characteristics such as -

a) Number of line-items;

b) Quality of pieces per line –item

General order categories are

a)Wholesale Distribution – usually large number of pieces of a few items;

b) Retail Distribution – orders for large quantities for a large number of items;

c) Direct Marketing orders for a small quantity;

d) Consumer Distribution - small quantities of different items – for purposes of evaluation, promotion and consumption

The performance measures to be satisfied by the choice of strategy are to minimize the costs involved and maximize desirable characteristics..

They are

a) Minimize the cost of pick and pack for every order;

b) Minimize the cost of shipping per order,

c) Reduce the time required per cycle;

d) To increase the fill rate

e) Improve Accuracy of the elements of the process

f) Traceability and accountability of all transactions..

Advanced technology involving Bar Coding, feeding on line data, high speed processing an distribution of information across all nodes of the supply chain help in improving efficiency, reduce costs and improve customer satisfaction.