Imagine the "next-day delivery" promise from e-commerce platforms—what appears as a simple click for consumers represents a high-stakes logistics race against time. This expectation, now considered table stakes rather than a luxury, presents unprecedented challenges for warehouse operations. The question remains: how can businesses accomplish this mission with greater efficiency, precision, and cost-effectiveness?
This article reveals eight critical steps behind next-day delivery success, helping businesses optimize processes, reduce costs, and enhance competitiveness. As Ian Hobkirk, president of Commonwealth Supply Chain Advisors, observes: "Companies lacking next-day delivery capabilities either throw more labor at the problem or impose earlier order cutoff times—both unsustainable solutions."
While warehouse management systems (WMS) and technology play vital roles, the true differentiator lies in strategic integration with operational practices. John Sidell of New Course Consulting emphasizes: "A successful next-day delivery system requires WMS solutions, proper facility layout, appropriate storage technology, and excellent operational practices—all working in concert." From warehouse location selection to distributed order management (DOM) solutions and downstream route planning, every element matters. Below, we examine eight warehouse-level factors that elevate next-day delivery performance.
Step 1: Data-Driven Assessment
Before implementing new automation technologies, companies should conduct thorough analysis of their distribution center's historical order data. Lauren Noyes, logistics consultant at Bastian Solutions, recommends reviewing two to three months of order data—including line items, SKU volume requirements, and order types—while forecasting growth patterns.
"Order history evaluation helps adjust layouts, reduce unnecessary movement, optimize picking zones, and balance forward-pick inventory levels," Noyes explains. "This foundation enables consideration of advanced software like carton optimization, wave management, or intelligent batch processing."
Sidell highlights order-type analysis as equally crucial: "Operational managers must understand cycle times for common orders to determine carrier cutoff times backward. Deep order-type knowledge becomes essential."
Step 2: Dynamic Order/Wave Management
For warehouses originally designed for large retail or wholesale orders, next-day delivery's greatest challenge lies in flexibly assigning orders and integrating them into picking workflows. Many traditional WMS solutions use batch or wave processing models that require completing entire batches before handling new orders.
Hobkirk explains that conventional wave logic, while effective for large orders, lacks the flexibility e-commerce demands for inserting new orders seamlessly. Worse, some order management systems can only send batches to WMS or warehouse control systems (WCS), creating bottlenecks.
Sidell advocates for "dynamic integration" between order management and WMS/WCS, with warehouse systems flexible enough to insert new orders into active workflows. Some WCS providers have upgraded to warehouse execution systems (WES), supporting wave-less or "continuous flow" order processing where WES receives order data and creates smooth picking, replenishment, and packing workflows. While some WMS providers claim dynamic order release capabilities, WES specializes in continuous flow environments—particularly ideal for highly automated e-commerce fulfillment centers.
Step 3: Inventory Accuracy Excellence
WMS-supported inventory accuracy, backed by reliable data collection, remains fundamental to efficient next-day delivery. While seemingly obvious, achieving this in large e-commerce warehouses—with thousands of SKUs, extensive forward-pick replenishment, and seasonal labor—proves challenging.
Some WMS providers incorporate visual cues on screens to highlight correct picking or putaway locations. Sidell acknowledges that WMS with graphical aids improves accuracy but stresses that proper training and strict barcode verification processes remain critical. "Future wearable technology monitoring precise worker movements may help," he adds, "but system checks and balances combined with training ensure high accuracy."
Step 4: Labor as the Linchpin
Many legacy WMS solutions lack real-time labor management capabilities. Noyes notes that WES solutions gain adoption not only for continuous flow support but also for real-time labor insights and dynamic workforce reallocation. Bastian's "work zone manager" module, for instance, lets supervisors balance workloads and labor distribution for smoother workflows.
"Real-time visibility into labor and picking metrics allows adjustments that maintain consistent workflow," Noyes explains.
Step 5: Storage Optimization
Storage media selection and slotting significantly impact fulfillment speed. Sidell notes that flow racks or carton flow walls in forward-pick areas—allowing replenishment on one side while picking from the other—prevent congestion.
Another best practice involves right-sized picking slots: oversized slots slow item retrieval, while undersized slots complicate replenishment and create picking confusion. Slotting optimization software improves efficiency by positioning fast-moving items accessibly—though unlike in low-SKU, large-order environments, frequent adjustments (even daily for promotional items) have become standard practice.
Step 6: Smarter Picking Strategies
Order-type analysis determines optimal picking solutions. For example, Sidell suggests carton flow walls effectively "push" bulk items for high-volume SKUs, reducing movement compared to cart picking. "Flow walls work well, but order types must be carefully evaluated," he cautions.
Noyes recommends goods-to-person systems for highly variable e-commerce orders with substantial batch sizes and numerous potential SKUs. These dense storage systems use robotic sleds to retrieve totes and deliver items to order consolidators—though their high cost requires justification through throughput, accuracy, and labor savings.
"Automation succeeds when order types are well understood," Noyes states. "Intelligent software must also properly cube and sequence orders."
For facilities with manual processes, simpler solutions like RF-directed cart picking or conveyor systems using WMS wave logic may suffice. Consultants agree that pick-to-carton methods save touches and labor, typically requiring WMS or shipping solutions with "containerization" features for right-sized packaging.
Step 7: Robust Replenishment
Efficient picking methods falter without accurate, frequent forward-pick replenishment. Sidell stresses that WMS or WES needs "demand-driven" replenishment logic tied to near-real-time picking rates and depletion patterns. "Dynamic replenishment prevents forward-pick shortages," he says. "Incorrect items at the picking face create delays."
While robust WMS solutions typically offer sufficiently dynamic replenishment, proper configuration with implementation partners remains essential.
Step 8: Optimized Pack/Ship Areas
Bob Fischer, CEO of Advanced Distribution Solutions Inc. (ADSI), argues that combining packing and shipping stations with barcode verification improves efficiency and accuracy. "Merging two steps into one makes sense," he says.
ADSI's pack/ship stations incorporate ring scanners for hands-free item verification, proving faster and more accurate than visual checks or paper lists. For manufacturer-pre-packaged shippable items like lamps or ceiling fans, "pick-to-label" processes allow shipping label application during picking, bypassing full pack/ship steps.
Shipping solutions also provide cartonization to prevent carrier dimensional weight charges and address validation against postal databases.
No Silver Bullet
While numerous solutions enhance urgent order fulfillment, meaningful changes derive from each DC's unique order profile. "Picking methods depend on order volume, lines per order, and SKU commonality," Noyes explains.
Existing automation may sometimes adapt to e-commerce—Hobkirk cites large sortation systems for retail orders potentially handling e-commerce with secondary sorting at output chutes.
The good news? Multiple systems and practices support next-day delivery. The challenge? Navigating countless potential approaches to find the right combination.
As Sidell concludes: "No single solution solves next-day delivery challenges. Success comes from coordinated elements—operational best practices, proper facility layout, appropriate storage media, and the right technology—working together effectively."