Posted in Operations and Supply Chain Terms, Total Reads: 421
Definition: Pick and Pack
Pick and pack is a part of supply chain management process and is a service offered by many supply chain services provider. It is generally used in the retail distribution. In this, individual components of an order are picked or obtained from the individual orders and then repacked with the specific details such as shipping details and invoice in a separate carton or envelope ready for shipment.
Merchandise is generally picked from the warehouse depending on the order placed by the customer and then repacked for shipment. It becomes easy when a standard order is shipped to all the customers with same product type and quantities but it becomes complex when each customer orders different components or products and different quantities. The different orders by different customers will require different box sizes and different packaging and can cause confusion in certain cases. It may lead to mismatch of items between customers. The manual pick and pack process requires a lot of human effort and results in inventory mismatch and wrong delivery of items which leads to customer dissatisfaction. It can be greatly simplified by using the computer assisted picking system which is a part of warehouse management systems.
For Example: an automobile dealer places order to the OEM for the spare parts. Now, demand for spare parts will be different across different dealers across the country which requires the OEM to use pick and pack system. The company will receive the request from the dealers for specific quantities of particular spare parts which will be picked up by the operators and packed according with the shipping information ready to ship to a particular dealer.