Here is a clear picture of how many picking locations we can complete as a percentage of all picks. It is also where - and only where - our focus for automation should be.
With our Pick-to-Light (or Pick-by-light as some say), we can make a huge difference with a small investment. The PTL often solves a higher percentage of the total order backlog than what you think at first glance. In the image above, we see a typical curve for what a 3PL, or e-retailer's, relationship looks like between the number of storage locations (x-axis) and the percentage of our orders we can complete (y-axis). For example, with 96 picking locations, we can fulfill 60% of all orders.
Here are three important takeaways:
Let the data guide you to get the most optimized flow possible.
Focus on your high-rollers.
Identify your sweet spot and apply the 80-20 rule.