The Power of Goods-to-Person Fulfillment (G2P)

In today’s world, efficient order fulfillment is paramount across all industries. To meet the escalating demand, businesses are turning to innovative solutions such as Goods-to-Person Fulfillment. This approach flips traditional order picking methods, using automation to bring items directly to pickers.  

In this article, we will explore the transformative impact of Goods-to-Person Fulfillment, its underlying technologies, and the numerous benefits it offers. Discover how the concept is reshaping the warehousing industry and enhancing overall order fulfillment processes.

What is Goods-to-Person (G2P) Fulfillment?

Goods-to-Person Fulfillment is a warehousing and order fulfillment strategy where the items to be picked for orders are brought directly to the order picker. By such, the need for manual item retrieval by pickers is eliminated, which may yield significant reductions in operational expense (OPEX) and picking time.

In G2P systems, automated robots, conveyors, or other mechanisms transport bins or containers of goods to a stationary workstation where the order picker retrieves the required items. This approach improves picking efficiency, eliminates picker walking time, and increases order accuracy in warehouse operations. It is commonly used in e-commerce and retail fulfillment centers to handle high volumes of small, individual orders quickly and accurately.

Revolutionize your warehouse with a G2P System

Goods-to-Person (G2P) Fulfillment offers several benefits for warehouse and order fulfillment operations:

• Increased efficiency and faster order processing: G2P brings items directly to order pickers, reducing travel time and enabling quicker order processing.
• Higher productivity and throughput: G2P optimizes picking tasks and sequence, allowing order pickers to focus solely on picking, leading to increased productivity and higher order volume capacity.
• Shorter order fulfillment cycles and improved customer satisfaction: G2P's efficiency and accuracy result in shorter order fulfillment times, leading to faster order delivery and enhanced customer satisfaction.
• Enhanced accuracy: G2P minimizes human decision-making, utilizing light indicators and graphical displays to assist operators' identification of the correct item, decreasing the likelihood of errors which improves overall order accuracy.
• Scalability and flexibility to handle growth: G2P systems can easily scale and adjust to accommodate increased order volumes without significant labor increases or impacts to ongoing operations. They can also scale and adjust to accommodate SKU growth or introductions of new SKUs by merger or acquisition
• Improved ergonomics and safety for order pickers: G2P reduces physical strain by minimizing walking and heavy lifting, and eliminates high-elevation item retrieval, promoting a safer and healthier work environment.
• Real-time tracking and inventory control: G2P integrates with inventory systems for real-time tracking and accurate inventory management, improving visibility and control.
• Increased inventory density: G2P offers denser storage than traditional split case picking solutions, lowering the fulfillment cost per square foot.

Overall, the G2P system streamlines the order fulfillment process and optimizes the warehouse space, resulting in faster operations and improved productivity.

Who can benefit from a G2P System? 

Goods-to-Person Fulfillment Systems have been implemented for warehousing and order fulfillment operations across varying scales. Whether it's 1,000 orders a day or 500,000 orders a day, G2P could be a fit. That includes e-commerce retailers, 3PL providers, wholesale distributors, manufacturing facilities, healthcare and pharmaceutical companies, grocery and perishable goods retailers, apparel and fashion retailers, electronics and technology companies. 

A good partner will work with your team to uncover the correct application and help develop the business case through modeling and simulation. No matter the business, a G2P system can optimize your operations, enhance customer satisfaction, and ensure you stay competitive in today's dynamic market.

The AutoStore G2P System

Goods-to-Person Fulfillment Systems combine several technologies to increase productivity and enhance the efficiency of storage, throughput, and labor utilization. For example, the AutoStore cube-based storage is a high-density G2P system leveraging Robots to transport items to and from a cubical storage Grid with inventory Bins. The Bins are stacked on top of each other within this dense aluminum Grid, and the Robots drive on top of the Grid to retrieve the inventory Bins and bring them to staff. When an order requires a specific item, the system's control software directs a Robot to locate the Bin containing the item. The Robot then picks the inventory Bin from the Grid using grippers and delivers it to a workstation (Port) for staff to pick. This has the natural effect of placing fast-moving products on top of the Grid, reducing the number of Bins required to pick from the bottom layers of the Grid. In fact, it follows the 80/20 Pareto principle, with 80% of the most ordered products located at the top layers of the Grid. Also, about 39% of Bins will come right off the top with zero digging.

In this G2P system, Robots deliver inventory Bins to Workstations and staff only need to be stationed at a Workstation to replenish inventory or retrieve products to fulfill orders. Due to the high efficiency, the system works faster than the staff and ensures that staff never have to wait for the next Bin. Instead, the needed Bins are neatly queuing according to the orders in the system, and are waiting to be picked by staff before they are sent back to the Grid by the Robots. Learn more about the AutoStore G2P system.

Difference between G2P and P2G

G2P and P2G (Person-to-Goods) are often mistakenly considered as interchangeable terms as they look similar. However, they serve distinct purposes and operate in very different ways.

The main distinction between Goods-to-Person and Person-to-Goods fulfillment systems is the approach to item retrieval. G2P systems bring items to the worker, minimizing travel time and optimizing the picking process, while Person-to-Goods systems require workers to physically move through the warehouse to retrieve items. 

In a Goods-to-Person system, items are brought to the worker at a fixed picking station. The worker remains stationary while automated systems, such as robots, conveyors, or shuttles, retrieve the items from their storage locations and deliver them to the worker. In a Person-to-Goods system, on the other hand, the worker physically moves through the warehouse to retrieve items from their storage locations. 

Overall, G2P systems tend to offer higher efficiency, faster picking speeds, and reduced errors compared to P2G systems.

What to consider when implementing a G2P system

You can determine if a Goods-to-Person Fulfillment System is suitable for your company’s operation by considering the following factors:

• Order volume and frequency: If your company deals with a significant number of orders on a regular basis, a G2P system can greatly improve efficiency by reducing travel time and increasing picking speed.
• Available warehouse space: The AutoStore G2P system offers high flexibility and modularity, making it compatible with almost any available space for installation. However, other G2P systems often require a certain layout and infrastructure to accommodate the automated systems and optimize space utilization.
• Characteristics of inventory: G2P systems are well-suited for businesses with a large number of SKUs, moderate to high inventory turnover, and a need for efficient inventory management.
• Cost considerations: A cost-benefit analysis should be conducted to evaluate the potential return on investment (ROI).
• Scalability for future growth: Assess whether the system can adapt to future business growth and changing operational requirements.
• Technological capabilities and integration requirements: Assess if the company has the necessary IT infrastructure and expertise to support the implementation and maintenance of G2P technology

Conclusion

In conclusion, a Goods-to-Person (G2P) fulfillment system revolutionizes the order fulfillment process in traditional warehouses. It involves integrating robots and automation to bring items directly to workers at fixed picking stations (ports), minimizing travel time and optimizing efficiency. G2P systems offer several benefits, including increased picking speed, overall warehouse throughput, reduction of service level agreements (SLAs) or click-to-ship, reduced errors, improved space utilization, efficient inventory management, scalability, and flexibility. 

Overall, implementing a G2P fulfillment system improves order fulfillment speed, accuracy, and customer satisfaction, making it a valuable solution for any business with fulfillment or distribution operations.

Do you want to learn more about how to automate your warehouse operations to improve efficiency and overall ROI? Let's get in touch today.

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FAQ

What is a Goods-to-Person (G2P) system?

A G2P system is a fulfillment approach where items are brought directly to workers at fixed picking stations, reducing travel time and optimizing efficiency in the order fulfillment process.

What are Goods-to-Man solutions?

Goods-to-Man solutions refer to various strategies and technologies that bring items to the worker for order picking, minimizing the need for workers to physically navigate the warehouse. It includes systems such as G2P, robotic picking systems, and automated storage and retrieval systems (AS/RS).

What is a Goods-to-Operator strategy?

The Goods-to-Operator strategy focuses on optimizing the workflow by organizing the warehouse layout and inventory positioning to reduce the movement and travel time of workers. It aims to bring items within close proximity of operators, enhancing their efficiency and productivity in picking and fulfilling tasks.  

What do I need to start a solution concept?

Goods-to-Person solution providers typically ask for 3 months to a year of order data (the more the better!), an item master including pallet, case, and unit dimensions, YoY projections for inventory and order growth, and available space or facility drawing.

How do I know G2P is right for my operation?

Goods-to-Person solution providers should show you – with data, modeling/simulation, and ROI analysis – that G2P automation fits your operation.  If the system does not meet your objectives, it may not be the right time or you may need to consider different technology. There is no universal solution and that’s ok.