PIPO Warehousing vs. Pick-and-Pack Fulfillment

Third-party logistics warehouses generally fall into two different service categories —  pick-and-pack fulfillment or PIPO (pallet in, pallet out) fulfillment. The meaning of the terms may seem self-explanatory  —  pick a product and pack it, or keep your products on the pallet they arrived on and ship as-is  —  but there’s a lot more that goes into deciding which of these methods of warehousing will suit your business. Here are several questions to consider when you’re trying to decide between PIPO and pick-and-pack:

What types of products do you manufacture?

If you have a product that is primarily purchased in bulk, PIPO is a more efficient option than pick and pack. Bulk items stay in the box or on the pallet they were originally shipped in when it’s time for order fulfillment, so there’s less handling to fulfill the order.

Pick and pack is designed more for individual units that need to be individually packaged, selected, and specially shipped.

What is your typical order volume?

If your product is usually ordered in large quantities under the same SKU, pallet in, pallet out warehousing streamlines the process, keeping those large quantities together.

If you have lots of different products that vary in quantity and order size, pick and pack warehousing gives you more flexibility in your order fulfillment.

What matters most to your customer?

If your customer is primarily concerned with speed and accuracy of your order versus the “unboxing” experience, then PIPO warehousing is the way to go. PIPO warehousing gives you more control over packaging and branding and offers the fastest method of order fulfillment.

Because each item is selected individually, pick-and-pack fulfillment offers a different customer experience for those customers who need customized packaging, gift wrapping, or some other special handling.

How much are you willing to spend?

PIPO warehousing requires fewer employees to manage and simpler inventory management, which reduces the overall cost of operations. 

The individual nature of pick-and-pack fulfillment means more hands on deck, far more detailed and itemized inventory management, and more handling fees for the manufacturer.

How you answer the questions above should help you determine whether pick-and-pack fulfillment or PIPO warehousing is the best option for your business. 

Find a PIPO 3PL Warehouse Near You

If pallet in, pallet out 3PL warehousing seems like the right choice for you, MWD Logistics is a PIPO provider with warehouses conveniently located near major cities, shipping routes, and ports to give you all of the benefits of PIPO warehousing, including the flexibility to increase your warehouse space without investing in a facility.

Connect with MWD Logistics to find a pallet in, pallet out warehouse facility right where you need it. View our locations, call (419) 522-3510, or contact us today.