Order picking procedures
/Order picking is the process of locating goods in the warehouse and sending them to customers. It is essential to conduct this process efficiently and effectively, in order to send complete orders to customers as quickly as possible. The basic picking process is stated below, along with procedures for both handling and investigating returned items.
Pick Items from Stock (Warehouse staff)
Print all flagged pick lists from the computer system for jobs scheduled for production. In a manual system where picks are being shipped directly to customers, a pick list may be a copy of the customer order.
The inventory pickers tag a portable bin or pallet as the receptacle for each set of picked items.
The inventory pickers pick the designated items, move them to the targeted bin or pallet, and mark them on the pick list as having been picked.
A materials handling person moves the bin or pallet to the production area.
The production staff assigned to use the bin or pallet verifies receipt before accepting the parts.
If the goods are being delivered straight to a customer, then make two copies of the customer order. One copy goes to the billing staff, one is packed with the delivery to the customer, and the original is retained on file.
Related AccountingTools Course
Handle Returned Items (Warehouse staff)
Once the production process for a job is completed, there may be extra parts left over. If so, return them to the parts counter at the warehouse.
The receiving warehouse person logs in all returned parts and notifies the engineering staff that they should review the return.
If returned parts are damaged, flag them as such in the computer system and store them in a review area for further classification.
Investigate Returned Items (Engineering staff)
The engineering personnel review all items flagged as having been returned to the warehouse.
If a parts return is caused by an incorrect quantity on the related bill of materials, an authorized engineering person alters the unit quantity in the bill of materials record. This requires a supervisor’s signature, since an incorrect quantity in the bill of materials can cause substantial problems in the automated ordering of goods.