OrderBatching

Order batching is the practice of grouping multiple customer orders for simultaneous processing in fulfillment operations to reduce handling and travel costs. It is commonly used in warehouses, distribution centers, and manufacturing settings. In batch picking, items for several orders are collected in a single picking tour, and the items are later separated for packing and shipping. Batches may be formed according to a fixed size, a time window, or inventory characteristics that enable efficient travel paths or common SKUs.

How it works involves orders arriving over time and a batching rule or optimization algorithm that groups them into batches. Each batch is assigned to pickers or a routing plan that minimizes travel distance. A single trip collects items for all orders in the batch, after which items are packed and labeled for individual orders. Systems may support dynamic batching as new orders arrive or as conditions change.

Benefits include increased picker productivity by amortizing travel and setup costs, reduced total travel distance, improved equipment utilization, and lower overall processing cost per item. Batch picking can also improve throughput in high-volume operations.

Drawbacks include potential increases in order latency for orders not at the front of a batch, a higher risk of mis-picks if batches are large, and greater coordination requirements to maintain accuracy and service levels. It often requires sophisticated planning, scheduling, and tracking systems to manage batch composition and timing.

Variants and considerations involve batch size or time window settings, batch picking versus wave picking versus zone picking, and the use of algorithms to minimize travel distance and balance workload. Common in e-commerce, grocery, distribution, and manufacturing contexts, order batching is commonly contrasted with pick-by-order strategies.