Spare Parts Know How

Spare Parts Inventory Management Training

  • Log-In
  • Individual
    • Open Access
    • Practitioner Toolkit
    • Compare Options
  • Organization/Team
    • Foundations for Teams
    • Foundations Playbook
    • Operations Playbook
    • Enterprise Access
    • Compare Options
  • Targeted Improvement Programs
    • Capability Programs
    • Advisory Support
    • Inventory Optimization Software
    • Data Management Services
  • Resources
    • The Spare Parts Decision Framework
    • Spare Parts Capability Playbooks
    • Roadmap for Spare Parts Decision Capability
    • Site Capability Assessment
    • Spare Parts Management Checklists
    • Obsolescence Risk Calculator
    • Criticality Assessment Tool
    • ROP/ROQ Calculator
    • Last Time Buy Calculator
    • Books
    • Practitioner Playbook Digital Library
  • Contact
  • About
    • Past and Current Users
    • Testimonials
    • FAQs
    • Phillip Slater

Order Picking and Routing Strategy – Why Does it Matter?

December 5 spkhadmin

Order Picking and RoutingWarehousing and storerooms are at the center of spare parts inventory management.

Whatever the reason that a company needs to hold spare parts as inventory, they need to hold them somewhere and in an organized manner.

Depending on the industry, this space may be referred to as the warehouse, storeroom, storehouse, store, stockroom, or crib. For the purposes of this post we will use the term warehouse.

Moving an item from its storage position in the warehouse to the point at which it is no longer considered part of the inventory, requires at least two key actions:

  1. Someone needs to place an order.
  2. In an engineering warehouse this could be a simple as someone fronting up to a counter or window and verbally requesting a part. In an OEM or service spares warehouse this could be via receipt of a purchase order. There is a whole spectrum of possibilities between these two examples.

  3. Someone needs to pick the order.
  4. This means that someone needs to retrieve the item and transport it to a despatch or packing point. This may be facilitated with automation, conveyors, forklifts, trolleys. Or it may be someone simply walking a route and retrieving the item. In all cases, the physical issue is the same: the item is removed from a storage location and moved to the next step in the logistics chain. Determining the pathway is referred to as routing.

Together these two actions can be referred to as order picking and routing.
 


Why is an Effective Order Picking and Routing Strategy Important?


 
The reality is that, despite the improvements in warehouse automation, in the vast majority of warehouses, order picking is a manual process. From the simplicity of physically walking the route through to assistance with mechanized transport, the common factor is the involvement of people – that is labor. In some research it has been estimated that the effect of this labor is that order picking costs can account for as much as 50% of warehouse operating costs.

The nature of warehouse work means that the order picking and routing aspects of the labor costs can be split into two key functions:

  1. Time to find
  2. Travel time

This tells us that the key to labor efficiency in the warehouse, is therefore, the development of an effective order picking and routing strategy.
 


 
 
 
 
 
Click here for information on our Practitioner Playbook.
 
 


 
 
 
Posted by: Phillip Slater
 

Storeroom Management

Join a Global Community

Trusted by:
+20,000 professionals in
+130 countries
See a sample of companies HERE

Open Access

Open Access to +25 Years of Spare Parts Management Know-How. No email required. No data collection. Just pure know-how.
Read more...

Practitioner Toolkit

The Practitioner Toolkit provides the most complete access to decision support resources, tools, and advanced content.
Read more...

Foundations Playbook

Team-based access to the core principles and decision logic required for effective spare parts management.

Read more...

Operations Playbook

Team-based access for organizations improving policy, optimization, controls, data, storeroom practices, and implementation.
Read more...

Foundations for Teams

This facilitated program helps participants discuss the principles, challenge assumptions, and develop a common language and understanding of spare parts decision-making. Read more...

Enterprise Access

Combine resources and SparePartsKnowHow support according to the capability your organization needs to build. Read more...

Latest Blog Posts

  • AI Spare Parts Technology Won’t Fix Weak Decisions
  • Twenty-Five Years of Better Spare Parts Decisions
  • The Cost of Inconsistent Spare Parts Decisions
  • Spare Parts Capability Cannot Reside in One Person
  • Which Spare Parts Playbook is Right for You?
  • Email
  • LinkedIn
  • YouTube

Copyright © 2026 IPIAIGHT PTY LTD.