Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Imagine that you're standing by the seashore watching the breakers roll in. Each builds height and force as it approaches the shore. Then, as it drags over the bottom, it loses energy before crashing on the beach.
That buildup and subsequent loss of energy could serve as a metaphor for wave-based picking, say some critics of the popular order-picking technique. Early in each wave, activity can be frenetic as order pickers in zones around the distribution center pick goods for batched orders. Then toward the end of the wave, activity and productivity fall off as some order pickers finish ahead of others.
To avoid these productivity losses and increase throughput, some DCs are shifting to waveless picking, also called continuous-flow picking or dynamic-wave processing. The principal difference between waveless and wave-based, or fixed-wave, processing is the way tasks are assigned and controlled. In waveless or continuous-flow processing, new orders are continually added to the work flow with no pauses between batches. In wave processing or fixed-wave picking, by contrast, all of the orders in a wave are completed before the orders in the next batch begin, and the number of orders in a wave is limited by the number of end points on the sorter, according to Sam Flanders of 2wmc.com Consulting Group. "That way, every time you induct something into the system, you know it has a place to fall," Flanders explains. "That is truly straightforward."
Wave planners do go to great lengths to try to ensure a balanced workload, making use of sortation systems so that each order picker finishes a wave at about the same time. But a variety of factors work against seamless execution. As a result, many DC managers build expensive buffers to ensure that work continues smoothly, and they depend on the time between waves to get back in sync.
Waveless picking, however, makes use of intelligent warehouse control systems (WCS) that can perform dynamic workload balancing, adjusting work flow to changing circumstances. This ability to juggle flows in real time makes continuous-flow picking possible. (For more on intelligent WCS, see "WCS learn to think for themselves," DC VELOCITY, April 2007.) By using this technology, managers avoid wasting energy in planning and executing waves and improve DC productivity substantially. In fact, picking productivity can increase by as much as 20 percent and throughput capacity by up to 35 percent by switching from waves to waveless processing, according to Fortna Inc., a supply chain consultancy and systems integrator.
These factors have won over Fortna's director of optimizing technology, Arturo Hinojosa, who has become a vocal advocate of waveless picking. He argues that wave-based order processing is a relic of paper-based picking systems and that waveless picking is, well, the wave of the future.
Remove waves, remove inefficiency
Inefficiencies in wave-based processes result from the way the work is segmented; new orders are added only at the beginning of each wave rather than dynamically as orders in the current batch are completed. "The problem is that as the wave nears completion, many of the orders are already complete, but because with a fixed wave you have to wait to complete all the orders, you are not utilizing the sorter to its maximum efficiency," says Flanders. "Where you lose productivity is in the close-out." A waveless process, on the other hand, keeps adding new orders into the work flow as individual orders in the current batch are completed.
Further, with wave-based picking, unexpected occurrences in one part of the DC—say, a stock-out—can delay the entire wave and every order in it. Waveless processing, however, is more adaptable, according to Hinojosa. "These systems bail you out if slotting or other things are not perfect. It helps if it's perfect," he says, "but it is not necessary."
To illustrate the differences, Flanders cites the example of a sorter with 200 destinations. In a fixed-wave operation, all 200 orders in a system would have to be completed before more are added. "With a dynamic wave or continuous flow, you don't have to pick all 200," he says. "When an order is complete, a light comes on that says that order is complete, and you can push that out and bring in a new tote or carton for another order."
Efficiency is also improved because pickers aren't required to return to the start point whenever orders are added. Instead, they continually move through their assigned zones. In fact, for pickers directed by voice, radio-frequency, or pick-to-light systems, the completion and addition of orders is transparent, says Hinojosa. "Nobody has to worry about which wave you are working on," he says. "Wave integrity goes away. Everyone works as fast and hard as they can. The picker does not know if he is working on an old order or on an order just recently added to his tasks, and he does not need to know. There are no wave transitions," he says. "You are always picking at the crest of the wave."
Waveless wipes out costly buffers
Not only can fixed-wave systems be inefficient, they can also drive up costs by forcing companies to build buffers. Hinojosa explains that when workers in one zone finish a wave ahead of other zones, workers in that zone may be directed to start picking for the next wave rather than remain idle. Those goods often move to a buffer conveyor, where they are held until shipping is ready for the next wave. "I've been to a facility with a $6 million buffer," he reports. "And these are supposed to be facilities with very efficient and sophisticated wave-planning tools."
Besides being costly, buffers can create issues of their own. Hinojosa says he asked a manager at the DC with the $6 million buffer why some shipping doors were not being worked. The answer was that the DC was at the end of a wave, and that goods for those doors were mixed in the buffer with other goods for the next wave. "They were spending money to solve problems that they themselves created," Hinojosa says.
Those problems are eliminated in a waveless process, he contends. In a waveless system, he explains, every order being picked has a shipping location ready for it. "You eliminate the need for buffers," he says.
But you may need more employees. Flanders says that in fixed-wave systems, the end points, where orders drop, do not need to be continually manned. In a dynamic-wave system, however, workers must be ready to move completed orders out when finished and bring in a new carton or tote for the next order.
From wave to waveless
For these reasons, some companies have shifted or are shifting from a fixed-wave system to a waveless system. But that raises the question of how to go about making the change.
The first step, Hinojosa says, is to determine a way to keep the overall system balanced, eliminating the need to rebalance between waves. He argues that DC managers and supervisors should not try to keep work balanced by determining when to release orders to the floor. "In my mind, that works just so far," he says. "Orders are out of the control of the DC. A much better way to do this is to say 'Send us the orders in priority. When we see things start to get out of sync, we'll just move people.'"
Hinojosa does admit that this balancing act requires sophisticated software that can help supervisors make decisions in real time. "You want decisions made by the warehouse control system," he says. "It has the widest view of what is happening. The problem is that you can have a system that is too smart for its own good. The WMS [warehouse management system] still needs to tell the WCS what to pick. The role of the WCS is just the processing of those orders."
Not without its difficulties
Despite the potential advantages, Hinojosa acknowledges that few companies are considering a shift to waveless processes. "Implementation is not that simple," he says, "especially when you are working with systems that are designed for wave-based picking."
Implementing waveless picking can be especially daunting for operations that handle vast numbers of stock-keeping units (SKUs). Flanders says that moving to dynamic waves in operations with a large number of SKUs requires a significant amount of management effort. "It's like a game of solitaire," he explains. "If all the slots in the game are full, the game is over, and you lose. If you have 10,000 SKUs and 1,200 drop points, you can have a lot of SKUs on the sorter with no place to drop into. If you want to work with continuous flow, you have to be cognizant of this."
If you do have a large SKU set, it is still possible to implement a dynamic wave system, says Flanders, but it requires much greater care in planning to assure that all of the goods for each order can be handled by the sortation system. "With a large SKU set, you have to be much better about managing the way orders come in," he says.
Today's warehouse control systems can manage the release of orders to balance workloads in real time among pick lanes, the sortation devices, and the shipping lanes. The key, according to Flanders, is to develop an effective plan for inducting batches of orders into the system so that they can be completed and cleared out. Obviously, the greater the SKU count, the more difficult that becomes.
Flanders warns against trying to implement a WMS and dynamic wave processing in a DC simultaneously. "You are taking on some tall orders," he says. "Trying to do too much at the same time can result in failure."
Such difficulties can lead to resistance from DC managers and employees, acknowledges Hinojosa. "People say, 'This is wonderful, much better than what we have now. But imagine how much work it will take to change to this approach.' That's a valid concern," he says.
In these cases, the best champion for waveless processing may be the chief financial officer. "Imagine having a sorter operation, and you are in the middle of two waves. You see all the chutes empty. Everything is finished at the sorter and ready for the next wave. Go to the sorting supervisor and ask how he likes it, and he will say he thinks it's wonderful. He can start the next wave right away. Show the CFO the same picture and ask how he likes seeing all that equipment doing nothing, and the answer will be very different."
While considerable effort may be required to make the changeover, Hinojosa believes that DCs that switch to waveless picking will realize tremendous benefits. "In places where I have seen this done, if you tried to go back to the old approach, you would have a riot in the DC," he says. "The operation becomes so much simpler for everybody."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
Keith Moore is CEO of AutoScheduler.AI, a warehouse resource planning and optimization platform that integrates with a customer's warehouse management system to orchestrate and optimize all activities at the site. Prior to venturing into the supply chain business, Moore was a director of product management at software startup SparkCognition. He is a graduate of the University of Tennessee, where he earned a Bachelor of Science degree in mechanical engineering.
Q: Autoscheduler provides tools for warehouse orchestration—a term some readers may not be familiar with. Could you explain what warehouse orchestration means?
A: Warehouse orchestration tools are software control layers that synthesize data from existing systems to eliminate costly delays, streamline inefficient workflows, and [prevent the waste of] resources in distribution operations. These platforms empower warehouses to optimize operations, enhance productivity, and improve order accuracy by dynamically prioritizing work continuously to ensure that the operation is always running optimally. This leads to faster trailer turn times, reduced costs, and a network that runs like clockwork, even during fluctuating demands.
Q: How is orchestration different from a typical warehouse management system?
A: A warehouse management system (WMS) focuses on tracking inventory and managing warehouse operations. Warehouse orchestration goes a step further by integrating and optimizing all aspects of warehouse activities in a capacity-constrained way. Orchestration provides a dynamic, real-time layer that coordinates various systems and processes, enabling more agile and responsive operations. It enhances decision-making by considering multiple variables and constraints.
Q: How does warehouse orchestration help facilities make their workers more productive?
A: Two ways to make labor in a warehouse more productive are to work harder and to work smarter. For teams that want to work harder, most companies use a labor management system to track individual performances against an expected standard. Warehouse orchestration technology focuses on the other side of the coin, helping warehouses "work smarter."
Warehouse orchestration technology optimizes labor by providing real-time insights into workload demands and resource availability based on actual fluctuating constraints around the building. It enables dynamic task assignments based on current priorities and worker skills, ensuring that labor is allocated where it's needed most, even accounting for equipment availability, flow constraints, and overall work speed. This approach reduces idle time, balances workloads, and enhances employee productivity.
Q: How can visibility improve operations?
A: Due to the software ecosystem in place today, most distribution operations are highly reactive environments where there is always a "hair on fire" problem that needs to be solved. By leveraging orchestration technologies, this problem is mitigated because you're providing the site with added visibility into the past, present, and future state of the operation. This opens up a vast number of doors for distribution leadership. They go from learning about a problem after it's happened to gaining the ability to inform customers and transportation teams about potential service issues that are 24 hours away.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.