Work out pick and pack cost per order instantly with clear inputs, formula shown and shareable results.
Pick and pack cost is the total handling time per order at the loaded labour rate. Splitting picking from packing shows where to invest: picking time responds to slotting and batch picking, while packing time responds to carton right-sizing and automation.
Total time
Seconds per order = Lines per order x Seconds per line + Packing seconds
Cost per order
Cost = Total seconds / 3,600 x Loaded labour cost per hour
Slotting fast movers close to the despatch area, batch or zone picking for multi-order waves, and eliminating search time with good location accuracy.
Compare the cost per order saved against the amortised equipment cost. Below about 2,000 orders a day manual picking with good slotting usually wins.