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In-Store Model Picking
This model is successfully used by a number of grocers worldwide e.g. Tesco, Roche Bros., Safeway and Albertsons and involves the grocer selecting the products from the actual shelves of an existing store.
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There are two approaches to the way orders are physically picked in the store. These are ‘by customer' or ‘by type of goods' (ambient, chilled and frozen). Picking ‘by customer' means that one picker is given the details of one customer's order and picks all items within that order. Picking ‘by type of goods' involves a picker being assigned to a certain area (e.g. chilled) and selecting products from that area for a number of different orders. The ‘by customer' picking approach is superior for a number of reasons:
- Effective (less errors)
- More customer orientated (pickers get to know the customers preferences and tastes). The picker's name and picture may be added to the customer's delivery docket to personalize the process (see below)
- The pickers have more ownership and pride in their work as they can identify with an individual customer one at a time. |
To maximize picking time and to assist time constraints particularly during busy periods, a part-picking approach can be used. Generally this means advance picking of the ambient but can also be frozen. Chilled is picked as near to goods outward time as possible as it typically has the shortest sell-by dates. The application software is used to regulate this process. Other time-saving picking initiatives involve pre-picking deli or other popular items at off-peak times so as not to interfere with In-store traffic.
(Right: example of a delivery docket with Pickers name and photo) |
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To facilitate the ‘by customer' approach a special cart may be used. It contains a separate tote for each type of goods and these totes are stored in the collection area and subsequently loaded on the delivery vehicle. A plastic sheeting (material is optional) is inserted within each tote that facilitates removal of the goods from the tote and giving it to the customer. For Pick-Up, an inner layer of cardboard/paper is used for placing goods in the customer's vehicle.
(Left: Picking cart with color-coded totes system. This allows the picker to separate products according to ambient, chilled and frozen).
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Picker from the Food Emporium |
The Pickers use a hand-held picking device which displays product details. This device is collected at a docking station which is linked into the central IT system and taken out onto the shop floor where the Picker is prompted to pick and scan a customer's products.
The order is routed by goods categorization rather than directing the pickers by aisle so that when a picker is picking a customer's order they are directed around the store by goods type regardless of what sequence the customer chose the items in. This speeds up the picking process and has the added benefit that the IT system is not interfered with by any changes to store layout or more importantly shelving arrangements. |
Other innovations to speed up picking times are ‘pick-ahead’ and ‘order ahead’. ‘Pick-ahead’ is where a picker leaves a request for items at the deli counter and walks away, leaving the deli staff to fill that order when they have time. This minimizes disruption to the deli staff and to the store’s customers as well as preventing the picker from having to stand in line.
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‘Order-ahead' is an initiative whereby products are picked ahead of time and stored. This is similar to ‘Pick-ahead' but involves a lot more orders. This initiative is typically used with the deli counter where a print out of the morning's orders will be handed into the deli section and worked on before the store gets busy.
Experience shows that the pickers know the store and the categorization of the product groups enable more efficient picking. Frozen is normally picked last and all items are placed into separate totes depending on their category (ambient, chilled, frozen). In a typical picking cart there will be 3 ambient totes, 2 chilled totes and 1 frozen tote.
Once an order is picked, the handeld picking device is docket at the station that it was collected from.
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This not only charges the battery of the handheld device, but also relays all of the picking information back into the system e.g. what was picked, what was substituted etc. and the customer credit card/checking account is debited. Labels are then printed for each tote and the goods are stored in the selected goods outward area in three locations (ambient, chilled and frozen) with printed labels.
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| Once an order is charged, delivery labels are printed and attached to all totes in an order. | When time comes for either delivery or collection a control list is printed for the time-slot that details the number of baskets in each order in that time-slot corresponding to the previously printed labels.
Upsides of store-based picking:
- Limited capital investment
- Shoppers like being associated with a store
- Can offer same day service
- Full range of products available to customers
- Lower delivery costs and more reactive as closer to customer
- Overall more flexible system
- Lower break-even point
- Full store product range
- Utilizes existing assets
Downsides of store-based picking:
- Maximum capacity for a store (approx $5M per annum) is capped generally by goods outwards facilities and the requirement for picking not to impact In-store activity
- Requires more locations to service the market
- Picking efficiency is lower than the wareroom (36 minutes versus 24 minutes for a wareroom) and therefore picking costs tend to be higher |