Improving e-commerce order-fulfilment productivity: A case study

Abstract

This paper presents a case study describing how a major online retailer of costumes and party supplies planned and implemented a new order-fulfilment system that increased picking speeds by more than 400 per cent while accommodating a peak-season surge in shipping volumes with significant reductions in direct labour costs. The paper first describes the changing nature of distribution resulting from the growing popularity of online shopping. The online retailer’s order characteristics and the legacy order-fulfilment strategy are then described. Next, the goals for a new order-fulfilment system are identified, and several specific recommendations for achieving those goals are discussed. The paper then describes a distributed database solution employing multimodal, batch-picking carts and optimised picking strategies. The implementation strategy is described in detail, and the results achieved by the new system are presented. Finally, the paper concludes with a discussion of the merits of the new system relative to the stated goals. In addition to achieving impressive improvements in the speed of order fulfilment, the new system requires significantly less time to train new workers, is readily scalable to meet changing workloads, and provides ample flexibility for meeting future needs as business volume grows.