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Two Step Picking with SAP EWM
20.05.2025
Two Steps to Success.
Two step Picking is the key to more efficient warehouse operations. This smart combination of batch picking and order consolidation reduces travel time, minimizes errors, and boosts productivity. Discover how SAP Extended Warehouse Management (EWM) seamlessly integrates this strategy into existing workflows and takes your logistics to the next level.
Two step Picking, also known as multi-stage picking, is an advanced order picking method designed for high order volumes and fast-paced warehouse environments. Unlike traditional picking processes, it breaks down the workflow into two distinct steps:
First, batch picking is performed, where all required items for a specific period are picked collectively. This is followed by order consolidation, where the picked items are assigned to individual customer orders. This approach delivers significant efficiency gains by reducing walking distances and shortening processing times.
Two Step Picking compared
1. Single-Stage Picking
In single-stage picking, items are picked directly based on the order. This means that each order is handled separately, without any prior bundling of multiple orders. This method is particularly suitable for warehouses with low order frequencies or individually assembled orders, but it has several drawbacks:
- High walking distances for each individual order
- Low efficiency with large order volumes
- No bundling effects to reduce access times
In contrast, Two Step Picking leverages the benefits of batch picking, thereby reducing walking distances and increasing efficiency.
2. Multi-Order or Batch Picking
In multi-order picking, multiple orders are grouped into one unit to minimize walking distances. All required items for several orders are picked simultaneously. However, there is a key difference compared to Two Step Picking:
- The items are directly assigned to the respective orders, whereas in Two Step Picking, they are first collected and then distributed in a second step.
- Multi-order picking is efficient, but less flexible than Two Step Picking when dealing with high item variety and complex order structures.
Save time, avoid errors: The strengths of Two Step Picking
While single-stage and batch picking are sufficient for small to medium volumes, Two Step Picking provides the optimal solution for large order volumes with many individual items. The decoupling of the collection and distribution processes ensures maximum efficiency and scalability in warehouse logistics.
- Shorter walking distances and faster picking times – By consolidating multiple orders, pickers have to cover less distance in the warehouse.
- Increased productivity – Employees can focus more efficiently on the picking process rather than assigning the goods directly to the orders.
- Lower error rate – Since the assignment of items to orders is system-controlled, picking errors are minimized.
- Optimized warehouse capacity – Through targeted pre-picking and structured distribution of goods, warehouse space is used more efficiently.
- Better scalability – Companies with seasonal fluctuations benefit from a flexible adjustment of the picking strategy to changing volumes.
SAP makes it possible: Seamlessly integrating Two Step Picking
The implementation of Two Step Picking in modern warehouse environments is optimized through SAP Extended Warehouse Management (EWM) and SAP Transportation Management (TM). The combination of these SAP modules enables precise control and automation of the picking process, as well as optimal alignment with transportation processes.
SAP EWM enables seamless execution of Two Step Picking with the following features:
- Automated batch grouping – Intelligent algorithms optimally consolidate related orders.
- Efficient resource management – Walking distances and work efforts are reduced by the system precisely managing picking tasks.
- Real-time monitoring and optimization – Process control in SAP EWM allows dynamic adjustments to the picking strategy based on changing conditions.
- Seamless integration with existing ERP systems – Direct integration with SAP S/4HANA and other ERP systems allows processes to be streamlined without media disruptions.
- Scalability with AI-powered forecasts – By analyzing historical data, order patterns can be identified and picking processes optimized.
With the further integration of SAP TM, the transportation process can be fully embedded into warehouse logistics. SAP TM ensures that all shipments are optimally prepared for shipping once picking is completed. This includes choosing the right transport provider, calculating the best route, and planning delivery times. Additionally, SAP TM offers real-time monitoring of transportation processes, so potential disruptions can be identified and resolved early.
Implementing Two Step Picking with SAP EWM and SAP TM offers companies a highly automated, transparent, and efficient solution for optimizing their picking and transportation processes. The deep integration into SAP S/4HANA and other ERP systems ensures consistent data flow and error-free operations. Anyone seeking to sustainably improve logistics and optimize processes with minimal effort will find a future-proof solution in SAP.
Two Step Picking in Action: Successful Application Examples from Various Industries
Industries with high order volumes and heterogeneous item structures particularly benefit from Two Step Picking. Examples include:
- E-Commerce & Retail – The rapid processing of numerous small customer orders becomes more efficient.
- Automotive Industry – Spare parts and components can be pre-picked in large quantities and distributed according to demand.
- Grocery Retail – Fresh products can be distributed more quickly and efficiently through optimized processes.
- Pharmaceuticals & Healthcare – Precise picking of sensitive products ensures error-free delivery to pharmacies and hospitals.
- Fashion & Textiles – Large quantities of individual items can be efficiently grouped and distributed.
Conclusion: More efficiency in warehouse logistics with Two Step Picking
Two Step Picking offers a smart solution for companies looking to optimize their picking processes and reduce costs. With the support of SAP EWM, this strategy can be seamlessly integrated into existing warehouse processes, reducing travel times, minimizing errors, and increasing productivity.
Companies that adopt modern picking methods benefit from higher efficiency, better scalability, and optimized use of warehouse resources. Through integration with SAP EWM, the entire process becomes transparent and manageable – an investment that pays off in the long term.
Link to original source:
How Two Step Picking boosts warehouse efficiency: Smarter order picking with SAP | IGZ