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Doing business by the pick and pack method eases the process of delivery of items to retailers or storeowners. The system of pick and pack is a standard warehousing technique for completion of an order. The process begins when a computer generates a list of goods required by a storeowner. The individual items as per the list taken from the warehouse shelves and then packed and shipped to complete the delivery of the order.

To execute mixed orders 'pick and pack' process is advantageous. Warehouses accumulate bulk items in pallets and shelves in sizable boxes. Single items, then taken from the shelves or pallets to fulfill an order. Usually, warehouses obtain materials in bulk quantity for storage and delivery in few quantity or numbers as part of mixed orders.

Here is a simple example. The construction industry needs electrical wires of various sizes and lengths. The electrical wire dealing company keep reels of variety wires. While executing a particular order, cut the wires into required lengths and deliver the same. This is advantageous for both the parties. The construction industry is able to source all its wire requirements from a single point and you are able to sell various sizes and lengths of wire to a single customer. Pick and pack system makes it possible.

The pick and pack method of executing orders is quite acceptable to the drop shipping companies. Drop shipping companies sell and transport small quantities of various items and different products through a chain of distributors. In dealing with allied retailers and/or individual storeowners, the drop shipping companies adopt the pick and pack strategy to supply the essential items to them.

The has an advantage. Many small orders add up to high sale of stocks and the storeowner makes a profit on all orders directed to the drop ship company. Thus, as and when a drop ship company receives an order for delivery of items, they simply pick and pack and ship them off. If required, verification and finding information can be sent online to the retailer as well as the customer.

The storage warehouse needs to do a cost benefit analysis. Though pick and pack system is highly economical to fulfill orders, the amount of sales should be high enough to justify storage of bulk inventory. Unless, drop-shipping companies are able to sustain long-term relationships with affiliates, it will be difficult to generate high volume of sales and consequently reduce costs. Retailers/ storeowners also gain from pick and pack warehousing, as they are able to access bulk stock and warehousing facility with no large expenditure.

Today many online firms have perfected the pick and pack services to execute orders and ship the cargo to various parts of the country and to other parts of the world. Processing orders becomes trouble free and quick as the inventory and shipping system is internet based.