Procurement Management  ·  Level 6
Preparation Of Goods For Distribution
Chapter 2: Retrieve customer orders
📚 7 Topics
⚑ What you will be able to do

By the end of this chapter, you will be able to:

  • Identify the necessary distribution documents following your organization's procurement policy.
  • Prepare distribution documents correctly and accurately according to your organization's procurement policy.
  • Obtain approval for distribution documents by following your organization's procurement policy.
  • Issue distribution documents properly based on your organization's procurement policy.

Mastering these skills ensures smooth and efficient order retrieval, helping you contribute confidently to your workplace's success.

2.1 Definition of retrieval of orders

Retrieval of orders, also called order picking, is the process of collecting the right items, in the right quantities and condition, from their storage locations in the warehouse so that a confirmed customer order can be packed and dispatched. It starts when the order released from the sales or order office reaches the store as a picking list or system instruction, and it ends when the picked goods are delivered to the marshalling or packing area. Retrieval is one of the most labour-intensive activities in a warehouse, so the accuracy and speed of picking largely decide whether customers receive their goods on time.

Example: a distribution centre of a hardware wholesaler receives an order for 40 tins of paint, 10 rolls of wire and 6 boxes of screws. A picker follows the picking list from bin to bin, takes each item, confirms the quantity and takes the goods to the marshalling area for checking.

Key terms in order retrieval

  • Picking list: The document or screen instruction that tells the picker which items, quantities and storage locations make up an order. It is the picker's authority to remove goods from stock.
  • Pick face: The storage location from which items are picked, such as a shelf, bin, flow rack or the bottom level of a pallet rack, kept topped up from reserve stock.
  • Stock keeping unit (SKU): A single item type identified by its own code, size, colour or pack, so that pickers and the stock system refer to exactly the same product.
  • Order line: One item and quantity on an order. An order for five different items has five order lines, and the number of lines is a measure of picking workload.
  • Pick accuracy: The share of order lines picked with the correct item and quantity. Errors found later lead to returns, credit notes and lost customer confidence.

Purpose of order retrieval

  • Fulfilling customer orders: It turns a confirmed order into physical goods ready for packing and dispatch.
  • Accurate stock records: Each pick reduces stock on the record, so stock on the shelves and stock in the system stay in agreement.
  • Stock rotation: Pickers follow first in, first out or first expired, first out rules so that older or shorter-dated stock leaves first.
  • Timely dispatch: Goods are retrieved in time for the vehicle departures and delivery promises made to customers.
  • Control of stores: Goods leave the store only against an authorised picking list, which protects stock from unauthorised issue.
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🔒2.2 Methods of retrieving orders

Methods of retrieving orders are the ways in which pickers are organised to collect goods from storage for a set of customer orders. The method chosen decides how far pickers walk, how many orders each picker handles at a time and how much sorting is needed af…

🔒2.3 Marshalling picked orders

Marshalling picked orders is the process of bringing picked goods together in a marked area of the warehouse, sorting them by order, customer, route or vehicle, checking them against the order and arranging them so that they are ready for packing and loading.…

🔒2.4 Benefits of marshalling orders

Marshalling gives the warehouse a controlled place and time to complete, check and arrange orders before they are loaded. Without it, goods would go from the shelves straight onto vehicles, and errors would only be discovered by the customer. The benefits are…

🔒2.5 Factors to consider in marshalling orders

The way orders are marshalled must suit the goods, the customers, the vehicles and the space available. A marshalling plan that works for cartons of dry goods may fail for frozen products or heavy machinery parts. The supervisor therefore considers several fac…

🔒2.6 Marshalling strategies

Marshalling strategies are the planned ways of grouping and arranging picked goods in the marshalling area. The strategy is chosen to suit the delivery pattern of the organisation: a store that delivers to many shops on fixed routes will marshal differently fr…

🔒2.7 Challenges in marshalling orders

Marshalling depends on space, people, information and timing all working together, so problems in any of them show up in the marshalling area as delays, errors or congestion. Recognising the common challenges helps the stores officer plan the area and procedur…

Am I competent?

At the start of this chapter we promised you would be able to:

  • Identify the necessary distribution documents following your organization's procurement policy.
  • Prepare distribution documents correctly and accurately according to your organization's procurement policy.
  • Obtain approval for distribution documents by following your organization's procurement policy.
  • Issue distribution documents properly based on your organization's procurement policy.

Tick each one you can genuinely do.

So, are you there yet?

You're competent when you can confidently do 50% or more of what this chapter promised.

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