In this article, learn about:
Pick and pack strategies for optimizing profits
Important KPIs to track
Quality assurance and common errors
Great products can capture markets—but only reliable fulfillment keeps them there. In logistics, pick and pack is the method that bridges storage and shipping, ensuring products reach customers quickly and accurately.
This guide covers pick and pack strategies, costs, technology, and key performance indicators (KPIs), so suppliers can streamline fulfillment with confidence.
What is Pick and Pack?
At its simplest, picking is retrieving ordered items from storage. Packing is preparing those items for shipment. It's simple—and that’s the appeal. Whether a supplier fulfills a few dozen orders a week, or manages thousands of orders a day, pick and pack can adapt to an array of needs.
Unlike more complex systems that require heavy automation, pick and pack can be implemented quickly with basic tools like shelves, labels, cartons, and a simple order tracking system. As volume grows, operations can easily scale from single order picking to more advanced methods like wave picking which we discuss below.
Pick and Pack Strategies During Fulfillment
Fulfillment is the critical stage where accuracy and speed come together to determine whether an order delights a customer or creates costly delays.
The pick and pack fulfillment process is a clean and simple model:
Order is received via Order Management Software (OMS)
Items are located, retrieved, and scanned
Quality Control is conducted
Packing is selected based on weight/dimension
Labeling is completed to include both shipping and retailer compliance labels
Order is shipped via 3PL carrier
Data is fed back to OMS
While the above stages are standard for any pick and pack warehouse, there are many strategies utilized under that umbrella. Here are some of the most common:
Type | What it is | Best for | Pros | Cons |
Single Order (Discreet) Picking | One worker completes one order, start-to-finish | Small teams, low order volume | Simple to complete and to train others | Inefficient to scale |
Batch Picking | Worker picks multiple orders simultaneously | Multiple small orders with overlapping SKUs | Reduced travel time within the warehouse | Requires sorting at a put wall |
Cluster Picking | A worker uses a cart with bins to pick multiple orders at once | eCommerce with small multi-line operations | Faster than single order picking, with less sorting | Cart space limits scalability |
Zone Picking | Pickers are assigned to zones; orders move through the zones | Large warehouse operations with many SKUs | Cuts travel time, increases specialization | Orders require consolidation from multiple zones |
Wave Picking | Orders released in waves aligned to carrier cut-offs or dock schedules | High-volume warehouses balancing dock efficiency
| Smooth dock operations, with predictable flow | Less flexible, may delay smaller orders
|
Hybrid Picking | A combination of zone, wave, and batch picking | Suppliers with peak seasons or complex mixture of SKUs | Flexible and scalable | Requires advanced WMS to ensure efficiency and compliance |
Once a supplier chooses a picking strategy, the next question is how to organize the warehouse so that strategy works at scale.
Pick and Pack Warehouse Layout
The way a warehouse is arranged directly impacts pick and pack efficiency. Layout determines how far workers travel and how easily they access inventory. In fact, travel time within the warehouse often accounts for 50% or more of a pickers’ shift. Because of this, layout isn’t just about where shelves and aisles go—it’s about applying strategies that balance efficiency, ergonomics, and SKU velocity.
In a pick and pack warehouse, most suppliers use a U-shaped or modular layout and then layer slotting strategies and ergonomic design to fine-tune efficiency.
ABC Slotting
ABC slotting is a technique that prioritizes the placement of inventory based on how frequently the item is picked. This method categorizes items into three groups (A, B, and C) to minimize travel time for warehouse pickers.
High velocity items are stored closest to packing stations, in section A. Medium velocity items are in the midrange, section B. Low velocity items are in the farthest locations from packing, section C.
Golden Zone
This is the optimal, ergonomically safe, and efficient area for workers to access items, typically between the waist and shoulder height. By slotting the fast-moving SKUs in this zone, warehouses improve picking speed, reduce travel/retrieval times, and minimize the risk of injury.
Beyond layout, specific tools like put walls and pack stations streamline sorting and reduce errors in high-volume environments.
Put Walls & Pack Stations
For suppliers handling eCommerce or multiple-SKU orders, put walls and well-designed pack stations can be game changers.
What is a Put Wall?
A put wall is a shelving or cubby wall with compartments that represent individual orders. These orders are batch-picked into a bin or tote. Pickers then scan each item and put them in the correct cubby. Once an order is complete, the cubby lights up to signal it is ready for packing.
Put Wall, Modern Materials Handling, 2025
Benefits of Put Walls
Maximizes batch picking efficiency: pickers can retrieve groups of items at once and quickly distribute amongst orders.
Reduces sorting errors: put walls create a visually organized system that minimizes mistakes.
Scales easily for eCommerce or flash-sale peaks: whether handling steady volume or sudden spikes, put walls can be adjusted to meet demands.
Pack Station Design
A well-designed pack station improves both speed and ergonomics. Suppliers should standardize consumables like labels, tape, bags, and cartons so that workers never hunt for supplies.
Pack Station, Modern Materials Handling, 2025
Design Principles for Pack Stations
Adjustable height tables for workers of different statures
Rotate tasks to reduce repetitive motion
Provide anti-fatigue mats for standing positions
Use monitors/terminals at eye level to minimize neck strain
Once strategy and layout are set, the right tools can multiply efficiency.
Pick and Pack Technology
Technology is reshaping pick and pack methods. Suppliers don't always need state-of-the-art robots, but small and strategic tech investments can unlock efficiency, accuracy, and big margins. The technology listed below is being implemented within pick and pack methods to streamline operations.
Warehouse Management System (WMS)
WMS software tracks and controls the flow of goods from receiving to shipping, which assists in optimizing inventory, space, labor, and equipment. WMSs integrate with retailer EDI to ensure data matches the physical cartons. These systems can also automate steps like wave planning, cartonization, and scan validation.
Barcode Scanning
Barcode scanning technology improves accuracy with digital checkpoints for item verification.
Pick-to-Light/Put-to-Light
Light-directed material handling technology shines a light where inventory is to be picked up or put down. Benefits include reduced training time and an increase in order accuracy.
Voice Picking
Voice picking uses a headset to guide employees through the pick and pack process. This hands-free system is great for high SKU operations, as it has been proven to reduce error rates by 3%.
Goods to Person (GTP)
This technology uses Autonomous Mobile Robots (AMR) to bring goods to workers. Benefits include reduced travel time, higher throughput, and consistent accuracy.
Of course, every technological investment or layout choice has a cost. Understanding both in-house and 3PL fee structures can help suppliers avoid hidden expenses and determine what all is needed.
Costs Associated with Pick and Pack Operations
Pick and Pack is labor intensive, and costs can add up quickly. Whether suppliers manage fulfillment in-house or outsource to a 3PL, understanding the true cost model is essential.
Typical In-house Costs
Labor: Direct picking/packing wages + indirect supervision
Space: Rent, utilities, racking, shelving, and maintenance
Equipment: Carts, scanners, printers, pack stations tools
Systems: WMS/OMS software licensing
Materials: Cartons, tape, void fill, labels
Shrinkage: Damages, mis-picks, returns and stolen goods
Typical 3PL Costs
Most 3PLs use an “a la carte” fee structure.
Common charges include:
Per-order fee: flat rate per order (i.e., $1.50-$3.00)
Per-pick fee: first 1-4 picks may be included; each additional pick adds $0.20-$0.50
Storage fee: per pallet, shelf, or bin per month
Receiving fee: per carton, pallet, or labor hour
Custom packaging: branded boxing, kitting or inserts cost extra
Pro tip: Always compare landed costs (including deductions, returns, and freight) before deciding.
Beyond costs, reliable data is the backbone of compliance and efficiency.
Related Reading: Code 54: Warehouse Allowance
Pick and Pack Data Tracking
Even the best-designed pick and pack warehouse is left lacking without accurate data. A mislabeled carton or a missing scan can cause chargebacks, disputes, and unhappy customers. By accurately implementing and tracking the following, suppliers gain a clear view of operations.
Barcodes and Standards
Universal Product Code (UPC)/Global Trade Identification Number (GTIN): These are Item-level identifiers used for scanning and compliance at pick and pack facilities.
Serial Shipping Container Code (SSCC): Carton or pallet level identifiers, usually on a GS1-128 label.
ASN EDI Alignment: Electronic notice to the retailer that matches what’s been physically shipped.
2D Barcode Transition (Sunrise 2027)
By 2027, many retailers and suppliers will shift to 2D barcodes, which hold more data—including lot numbers, expiration dates, and serial numbers—all in one place.
This is anticipated to have a positive impact on warehouse pick and pack operations with fewer mistakes, faster quality control, and less manual data entry.
Related Reading: The Future is 2D Barcodes
Scan to Verify
Pick and pack operations often build mandatory scan checkpoints into WMS workflows. Visual picking is fast but can lead to costly errors. To ensure accuracy:
Scan-to-pick: Every item scanned as it leaves storage
Scan-to-pack: Every carton confirmed against order before sealing
Weight check: Carton weight compared to system expectations; catches missing or extra items
Packing to Protect Margins: Cartons, DIM Weight, and Materials
Picking moves the order off the shelf, but packing decides how it arrives in the customer’s hands. The carton size, packaging material, and weight calculations all play a role—not only in protecting the item but in protecting profitability.
Cartons
The process of selecting the optimal shipping box and assets for an order is called cartonization, which is paramount. Modern warehouse management systems (WMS) can determine this information automatically, considering product dimensions, weight, and fragility. For those that go about determining cartonization manually, cheat sheets, quality control, and gate checks will be imperative.
Most retailers will specify the allowed maximum carton sizes, weight limits, and materials. Noncompliance often leads to deductions. Oversized boxes trigger dimensional weight surcharges, and undersized boxes risk damage and/or fines.
DIM weight
DIM weight is calculated as (Length × Width × Height) ÷ divisor. Carriers charge whichever is greater—actual or DIM.
Example: A 20" × 10" × 10" box = 2,000 cubic inches. Divide by USPS’s DIM divisor of 166 = 12.05 lbs., rounded up to 13 lbs. Although the box weighs only 5 lbs., the billed weight will be 13 lbs.
This subtle rounding change can significantly add freight costs if suppliers don’t optimize carton selection. Regular carton audits help suppliers identify opportunities to downsize and save on freight.
Materials
The materials used inside the carton matter just as much as the carton itself. Choosing the right balance of protection, cost and sustainability keeps products and profits safe.
Retailers are increasingly aiming for recyclable and right-sized packaging. Walmart and Amazon are now fully monitoring supplier sustainability practices. Because of this, many suppliers are choosing materials with environmental sustainability at the top of mind.
For example, using air pillows for void fill offers reduced package weight while using paper offers recyclability. Eco-friendly decisions typically pay off in the long run—cutting costs, boosting brand reputation, and reducing regulatory risks.
Key Performance Indicators (KPIs)
KPIs are the pulse point of fulfillment. Without them, it’s impossible to prove accuracy, efficiency, or reliability to retail partners.
Core KPIs for Pick and Pack Success
Picking Accuracy
Picking Accuracy Formula: (Correct lines picked / Total lines picked) x 100
Small inaccuracies can equate to huge losses in revenue. Even tiny errors add up—just 0.1% inaccuracy can compound into major revenue loss through a multitude of channels.
The industry standard is:
Strong: 98%
Good: 99%
Better: 99.5%
Best-in-Class: 99.8%
Units Picked per Hour (UPH)
UPH Formula: Units picked / Total labor hours = UPH
This metric is crucial to understanding staff workloads, volume flow, and procedure-based inefficiencies. The benchmark varies by operation (100-200 UPH for manual eCommerce; higher with automation).
Watch out for mistakes. Speed should not come at the expense of accuracy.
Order Cycle Time
Order cycle time is the duration of time that exists from order release to shipment.
Benchmarks include Same Day for eCommerce, and 24-48 hours for wholesale.
Perfect Order/OTIF Impact
Perfect Order or OTIF (on-time in-full) are compliance scorecard metrics and are measured by evaluating timing, quantity, and accuracy of the shipment.
Measuring this KPI ensures the right item, with the right quantity, in the right condition, on time.
Related Reading: Buyer Breakdown: The OTIF Scorecard
Quality Gates and Common Errors
Pick and pack is prone to errors—but most follow predictable patterns. By adding quality assurance gates, suppliers can prevent deductions before they happen.
Common Errors and How to Fix Them
Error | What Can Go Wrong | Quality Gate Fix |
Kitting & Bundles | Missing or incorrect components | Pre-assemble kits when possible; if not, scan each item at pack |
Lookalike SKUs | Similar packaging or sizes cause mistakes | Add bin flags, color coding, or mandatory double scans |
Mis-picks | Wrong item pulled from inventory | Use light or scan-to-pick validation before items leave to storage |
Overpacks | Extra items or excess quantity shipped | Add QA check with order/weight review before sealing |
Returns | Damages or incorrect pack methods | Analyze returns data; adjust packing materials |
Key Takeaways
If suppliers only remember five things about pick and pack, make them these:
Scan everything: No shortcuts. UPC, SSCC, and ASN must align
Method match: Choose the right picking method (discrete, batch, cluster, zone, wave)
Design with intention: Slot high velocity items in the golden zone to support workers and improve efficiency
Track KPIs: UPH, accuracy, cycle times, and rework rates are crucial for optimizing operations
Get the details right: packaging, DIM weight, materials, and labels protect margins and prevent deductions
Ultimately, pick and pack is quality assurance in action. The right strategy blends process, tech, and data disciplines. By investing in design, scanning, and KPI tracking, suppliers can not only cut costs but also build trust with retailers and customers alike.
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