Picking Strategy

Module Guide: Picking Strategy

Module Location

Settings > Warehouse > Intelligent Bin > Picking Strategy

Module Purpose

The Picking Strategy module is the inverse of the Put-away Strategy. This module is used to configure the automated logic that the system will execute to recommend which batch or unit of goods should be picked first when fulfilling customer orders or production requests. The goal is to enforce correct stock rotation rules, minimize waste, and optimize the efficiency of the goods-picking process.​

1. Main View (Strategy List)

The main page is a simple configuration form where the administrator selects and activates the picking strategy to be used throughout the warehouse.

View Explanation

This module presents several strategies that can be selected. The user can activate one or more of these strategies. The system will likely evaluate these in a specific order (although no priority settings are visible in this image).

• Strategy 1: First-In, First-Out (FIFO)

  • Concept: This is the most common inventory valuation and rotation method. The system will always recommend picking the batch of goods that was received earliest in the warehouse.​

  • Use Case: Essential for almost all types of products to ensure healthy stock rotation and prevent items from becoming obsolete or outdated in the warehouse.

• Strategy 2: Expiration Date (FEFO - First-Expired, First-Out)

  • Concept: The system will prioritize picking the batch of goods that has the nearest expiration date.

  • Use Case: This is a mandatory strategy for the food and beverage, pharmaceutical, and other industries whose products have a limited shelf life. Ignoring this strategy will lead to significant losses due to expired products on the shelves.

• Strategy 3: Descending Level

  • Concept: Similar to the put-away strategy, this likely directs the system to recommend picking from the lowest rack level to the highest (easiest to reach first), or vice versa, depending on the exact configuration.

  • Use Case: Can be used to optimize the picking path. For example, the system might direct staff to pick from the lowest locations first to reduce time and effort.

• Action Buttons:

  • Save: Saves the selected strategy configuration.

2. Steps to Configure the Strategy

• Access the Picking Strategy module.

• Check the box next to the strategy that best fits your business model and product type.

  • For food products, Expiration Date (FEFO) is almost always the primary choice.

  • For electronics or components without an expiration date, First-In, First-Out (FIFO) is the best standard.

• Click Save.

3. Integrated Workflow & Business Process

• Order Picking Process: This is the core of this module's workflow.

  • A Sales Order or Work Order is ready to be processed.

  • A warehouse staff member receives a "Picking List" on their scanner device.

  • When the staff scans the first item to be picked, the WMS automatically executes the configured strategy. For example, if FEFO is active, the system will search all locations where that item is stored, compare the expiration dates of each batch, and then direct the staff to the location containing the batch with the nearest expiration date.

• Accuracy and Efficiency: By automating this decision, the system ensures that business rules (like FEFO/FIFO) are always followed. This reduces the risk of human error, speeds up the picking process, and improves overall inventory accuracy.​

4. Tips & Important Notes

• FEFO vs. FIFO: It is critical to understand the difference between FEFO and FIFO and to choose the most relevant one. For many companies, FEFO is a more specific and preferred form of FIFO if expiration dates are a factor.

• Single Configuration: Typically, only one main strategy (like FEFO or FIFO) is activated at a time to avoid logical conflicts.

• Data Discipline: The success of this strategy heavily depends on the accuracy of data during goods receipt. If expiration dates or receiving dates are not recorded correctly when goods arrive, the system will not be able to make correct picking recommendations.

• The management of this module should be handled by a Warehouse Manager or Supply Chain Manager who is responsible for the company's inventory management policies.