In this three-part blog series, we delve into key metrics for evaluating and optimizing warehouse productivity before and after implementing automation. By understanding these metrics—pick rates, error rates, and fully loaded fulfillment costs—you’ll gain valuable insights into operational improvements and cost savings opportunities. Part one of our series focuses on pick rates, a vital metric for assessing the efficiency of your warehouse operation. Understanding your current pick rate is essential when considering automation, as it provides a baseline for measuring improvements.
Below, we guide you through how to accurately calculate pick rates, or picks per hour, and explore how automation impacts this critical aspect of warehouse operations.
What is a Pick Rate?
Pick rate measures the number of items picked from inventory to fulfill orders within a given timeframe. It’s a key indicator of order fulfillment efficiency in your operations. A higher pick rate means more orders are completed and delivered promptly, leading to increased customer satisfaction and greater profitability and growth for your business.
Steps to Calculate Pick Rate
1. Data Collection
- Total Items Picked: Record the total number of items picked over a specific period, such as a day, week, or month.
- Total Time Spent Picking: Document the total hours spent by workers on picking during the same period.
2. Perform the Calculation
- Formula: Pick Rate (Picks Per Hour) = Total Items Picked / Total Hours Spent Picking
- Example: If your team picks 3,000 items in a 10-hour shift, the calculation would be:
3,000 items / 10 hours = 300 picks per hour
3. Analyze the Data
- Individual Performance: Calculate pick rates for individual workers to identify top performers and those needing additional training or support.
- Time-Based Analysis: Compare pick rates during different times of the day or week to understand operational peaks and valleys.
4. Benchmarking
- Internal Benchmarks: Use historical data to set a baseline for your current operations.
- Industry Standards: Compare your rates with industry averages to assess your competitive standing. The industry average for warehouse pick rate is about 70 items per hour.
Improving Pick Rate with Automation
Automation can significantly enhance pick rates by:
- Increasing Speed: Robotic picking arms complete case picks faster than manual methods, accelerating pick speeds.
- Boosting Accuracy: Automated picking systems minimize errors, reducing the need for corrections and re-picks.
- Optimizing Sequencing: Advanced pick stations and software optimize the sequence of item selection for outgoing orders, ensuring maximum efficiency.
Post-Automation Pick Rate Measurement
After implementing automation, it’s crucial to recalculate pick rates to measure the impact. Compare the new rates with your baseline to evaluate the improvements.
Accurately calculating pick rates is essential for evaluating the benefits of warehouse automation. By understanding and improving this metric, warehouses boost efficiency, meet heightened consumer demands, and stay competitive.
Stay tuned for parts two and three of this blog series to dive into error rates and fully loaded fulfillment costs.
Contact us to schedule your workflow assessment and learn how Prime can help you improve key operational metrics to maximize warehouse efficiency.
