Cost the pick-and-pack step from lines per order, pick rate and the labour rate paid.
Pick cost is driven by lines rather than units, because each line requires a separate trip. Dividing lines by the hourly pick rate gives labour hours, and multiplying by the loaded wage gives the labour component. Pick rate is the single highest-leverage number in a warehouse: a 20% improvement removes a fifth of the labour requirement and the headcount that goes with it.
Pick And Pack Cost
Cost per order = lines per order ÷ picks per hour × labour rate + packaging
Cost per order = lines per order ÷ picks per hour × labour rate + packaging Pick cost is driven by lines rather than units, because each line requires a separate trip. Dividing lines by the hourly pick rate gives labour hours, and multiplying by the loaded wage gives the labour component.
Pick rate is the single highest-leverage number in a warehouse: a 20% improvement removes a fifth of the labour requirement and the headcount that goes with it.
This calculator takes 5 inputs: Lines per order, Lines picked per hour, Fully loaded labour rate per hour, Packaging cost per order, Orders per month. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.