SKUstream’s New Batch Optimization Transforms Order Picking

How SKUstream’s New Batch Optimization Reduces Travel and Transforms Order Picking.

Warehouse picking has long been one of the most labor-intensive and costly activities in fulfillment operations. For facilities handling small, less-than-pallet orders, the challenge is even more pronounced. Discrete picking, where each order is picked individually, forces selectors to travel significant distances for every single order. The result? Excessive travel time, reduced productivity, and picking costs that can account for nearly half of total warehouse labor.

The Problem with Discrete Picking

In many operations today, selectors are sent out to pick one order at a time. Even when orders share common items or locations, they are often treated independently. This leads to repeated travel to the same pick locations, sometimes dozens or hundreds of times per shift.
It’s an inefficient model, especially in environments like e-commerce, where order volumes are high and order sizes are small.

A Simple Idea, With a Complex Challenge

The logic behind batch picking is straightforward:
Why not pick multiple orders in a single trip instead of traveling the same path multiple times?

For example, if three orders all require items from the same location, it makes far more sense to pick all three at once rather than visiting that location three separate times.
While this idea is widely understood, execution is where most operations fall short.

Why Traditional Batching Falls Short

Most Warehouse Management Systems (WMS) either batch orders sequentially or rely on manual user input. While this approach may reduce the time it takes to start picking each order, it often fails to reduce overall travel.

Why? Because these systems typically lack the underlying travel optimization logic needed to group orders based on actual warehouse paths and distances.
As a result, batched orders may still require selectors to follow completely different routes through the warehouse. The travel is simply bundled, not optimized.

SKUstream’s Approach: Travel-Driven Batch Optimization

SKUstream introduces a fundamentally different approach.
Instead of batching orders based on sequence or manual rules, SKUstream analyzes the travel paths required for each order before they are released to the floor. By mapping distances and identifying overlap between orders, SKUstream groups orders based on shared travel.

In other words, it answers a more meaningful question:
Which orders, when picked together, will minimize total travel distance?

Using an optimization function, SKUstream automatically creates batches that follow similar paths through the warehouse, maximizing efficiency and quantifying the travel savings achieved.

Flexible, Configurable Optimization

Operations can tailor the batching logic based on their specific needs. Parameters such as:
• Order size
• Warehouse region
• Wave grouping
• Equipment constraints
allow teams to control which orders are considered for optimization and how batches are formed.

When Batch Picking Works Best

Batching isn’t a one-size-fits-all solution.
For large orders, batching may only be practical when using high-capacity equipment. Additionally, consolidating multiple orders onto a single pallet introduces trade-offs, such as:
• Additional labor required to sort and break down orders at the dock
• Increased handling, which raises the risk of mispicks

However, in e-commerce environments, where workers pick multiple small orders into carts with separate compartments, the benefits are substantial.
In these scenarios, the more orders you need to fulfill, the greater the opportunity to reduce travel. With thousands of SKUs and high order volumes, optimized batching can deliver significant productivity gains.

Turning Travel Reduction Into Measurable Results

The key advantage of SKUstream’s solution is not just smarter batching, it’s measurable impact.
By quantifying travel savings before execution, operations gain clear visibility into the value of optimization. This allows teams to make data-driven decisions and continuously improve performance.

Turning Travel Reduction Into Measurable Results

Every warehouse is different. The effectiveness of batch optimization depends on factors like order profile, layout, and picking methods.

If you’re looking to reduce travel, improve productivity, and better understand your operational potential, SKUstream offers a practical way to evaluate the opportunity.

Reach out to explore a no-obligation pilot and see how much travel, and cost, you could save.

Check out our free resources below and get in touch with us if you have any questions or need more help.  We have helped hundreds of organizations just like yours optimize their operations and we are passionate about it.

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