A Study on Efficiency Improvements in the Modernization of Enterprise Material Warehouses Using Light-Guided Picking Systems

As the digital transformation of China’s manufacturing, parts processing, and e-commerce supply chain industries accelerates, traditional material warehouses—which rely on paper documents, human memory, and a “person-to-goods” model—are increasingly revealing a series of management challenges, including low picking efficiency, high risk of material errors, lengthy staff training cycles, and difficulties in inventory traceability. The Pick-to-Light (PTL) system, a lightweight, high-return IoT solution for intelligent warehouse upgrades, is being adopted by an increasing number of companies in their warehouse modernization projects. Starting from the existing pain points in traditional material warehouses, this article provides an in-depth analysis of the PTL system’s technical architecture, operational workflows, and core enabling logic. Combined with real-world implementation case studies, and quantitatively analyzes the comprehensive benefits the PTL system brings to warehouse picking efficiency, inventory accuracy, labor cost control, and end-to-end material traceability; At the same time, it outlines the system deployment and implementation path, common pitfalls during the retrofit process, and key points for hardware and software integration, providing practical theoretical references and implementation plans for manufacturing and distribution companies undertaking warehouse digital upgrades and material warehouse modernization projects. Keywords: Light-to-Pick System; PTL; Material Warehouse; Modernization; Warehouse Efficiency Improvement; Intelligent Picking; WMS Integration

I. Introduction

In a market environment where supply chain competition is becoming increasingly intense, warehouses serve as the core hubs for a company’s material flow, and the efficiency of warehousing operations directly determines the stability of production material supply, order fulfillment speed, and the company’s overall operating costs. Currently, many older warehouses at small and medium-sized manufacturing plants, auto parts processing plants, electronic component manufacturers, and industry-trade enterprises still rely on traditional manual picking methods that date back more than a decade: Warehouse staff carry printed picking lists, shuttling back and forth among dozens of shelving aisles, relying on experience to locate items, verifying part models row by row, and counting the quantities to be shipped. After completing the picking process, they manually record the information on forms, and finally hand over the paper documents to clerks for entry into the warehouse management system to generate inventory records.

This extensive warehousing management model was still viable in an era when warehouses had few SKUs, small order volumes, and slow production rhythms. However, as businesses expanded and the variety of materials continued to grow, high-frequency material issuance and outbound shipments involving multiple varieties and small batches became the norm in warehouse operations. The shortcomings of the traditional “man-to-goods” picking model have been greatly magnified. Issues such as excessive time spent locating materials, picking errors, the failure to enforce first-in, first-out (FIFO) controls, discrepancies between book and actual inventory, warehouse overloads during peak hours, and slow onboarding of new employees have gradually evolved into internal bottlenecks that constrain a company’s production and delivery capabilities. Many companies prioritize investing substantial budgets in heavy-duty automation equipment, such as automated storage and retrieval systems (AS/RS) and large-scale automated sorting lines. However, heavy-duty warehouse automation projects involve long implementation timelines, high upfront costs, and stringent requirements regarding the existing warehouse’s structural integrity, floor load-bearing capacity, and ceiling height. As a result, many older factory and warehouse facilities are not directly compatible with such equipment. The high costs and lengthy payback periods have left many small and medium-sized enterprises facing a dilemma when it comes to upgrading their warehouses with smart technology.

Against this backdrop, lightweight smart warehousing solutions—such as the PTL light-guided picking system—have emerged as a highly cost-effective upgrade path for modernizing outdated material warehouses. Light-guided picking systems do not require large-scale dismantling of existing racking or structural modifications to the warehouse. By leveraging IoT electronic tag hardware integrated with warehouse management software, they can upgrade traditional manual picking processes to a light-guided operation mode, achieving a smart picking transformation where “the goods find the person.” rapidly completing the warehouse’s digital transformation without significantly altering the existing layout, thereby achieving a dual leap in both picking efficiency and accuracy. Currently, many business managers still have a superficial understanding of the Light-Guided Picking System (PTL), viewing it merely as “a row of indicator lights installed on the shelves,” and have failed to fully tap into the system’s deeper value in areas such as end-to-end material control, production error prevention, inventory traceability, and labor optimization. Based on actual warehouse modernization projects, this article systematically explores the application logic, implementation pathways, and efficiency-enhancement mechanisms of the light-guided picking system.

II. Current Challenges in Traditional Enterprise Material Warehouses and the Need for Transformation

A corporate materials warehouse handles multiple tasks, including receiving and storing raw materials, picking components for production orders, managing the flow of semi-finished goods, shipping finished goods, and conducting periodic inventory counts. In traditional warehouses that have not yet implemented a light-guided picking system (PTL), the pain points exposed during the picking process are often interrelated, creating a vicious cycle in warehouse management.

2.1 Picking operations are inefficient, and the proportion of non-productive walking time is too high

Under the traditional paper-based picking system, warehouse staff do not spend most of their working hours actually retrieving materials; instead, they spend their time searching for storage locations in the aisles and repeatedly reviewing documents to verify material information. When a warehouse contains thousands of SKUs and the aisles are long, warehouse staff must traverse multiple storage areas during a single picking run, resulting in a significant increase in unnecessary walking distance. According to industry research data, in traditional manual picking operations, the time spent walking to locate items accounts for 60–70 percent of the total picking process, while the time actually spent retrieving and counting items accounts for less than 30 percent. During peak order periods, warehouse picking capacity quickly reaches its human-labor limit. To meet production material supply demands, facilities must rely on extending overtime hours and increasing the number of pickers. As a result, the marginal efficiency of warehouse operations continues to decline, and while labor costs rise year after year, they fail to yield a corresponding increase in production capacity.

2.2 The error rate in manual picking is relatively high, and incorrect materials lead to a chain reaction of production losses

In the material warehouses of manufacturing companies, a large number of parts look very similar, with only minor differences in part numbers. Relying on manual identification by comparing paper documents with the naked eye makes it extremely easy to make picking errors, omit items, or pick excess materials. If picking errors are not detected in a timely manner during the outbound process, the incorrect materials may be transferred to production lines and workstations, leading to significant losses such as production line shutdowns due to material shortages, rework and repairs, and product scrapping. In the automotive parts and precision electronics industries, incorrect parts can even lead to returns and claims from downstream customers, causing irreversible damage to a company’s brand reputation. To reduce the probability of picking errors, some companies are forced to establish a secondary verification station after the picking process is complete, adding an extra manual verification step. This indirectly increases warehouse labor costs but still fails to achieve 100% accuracy and eliminate human error.

2.3 The lengthy training cycle for warehouse staff and high staff turnover pose management risks.

The layout of a materials warehouse, the placement of materials, and the identification of material models rely heavily on experience. It typically takes a new warehouse associate one to two months to become familiar with the operations and work independently on picking tasks throughout the entire warehouse. When experienced employees leave, warehouse operational efficiency drops significantly. As a result, the company’s warehouse operations rely heavily on seasoned warehouse associates, creating significant labor-related risks. During peak seasons when there is a significant labor shortage, temporarily hired part-time staff are unable to quickly become proficient in picking tasks, further limiting the warehouse’s peak operational capacity.

2.4 Delays in job data and insufficient traceability of material flow

There is a time lag in the circulation of paper picking slips. After warehouse staff complete picking, inventory data cannot be updated and entered into the WMS in real time, resulting in a long-term discrepancy between the system’s inventory data and the physical inventory on the warehouse floor, and frequent discrepancies between book and actual inventory. When a quality issue arises with a batch of materials, tracing back which work order the batch was issued for, who the picking operator was, and the exact time of shipment requires manually reviewing a large volume of paper documents. This tracing process is inefficient and fails to meet the batch management requirements of modern manufacturing supply chains.

2.5 Renovating and Upgrading Old Warehouses Presents a Dilemma; High Barriers to Implementing Heavy-Duty Automated Doors

In many traditional factories that have been in operation for years, the existing racking systems have been in use for a long time, warehouse ceiling heights are limited, and the floors cannot support large automated equipment. Implementing heavy-duty automation projects—such as automated storage and retrieval systems (AS/RS) or automated guided vehicles (AGVs)—requires extensive renovations to the racking, flooring, and fire safety systems, resulting in high overall renovation costs and a return on investment (ROI) cycle as long as 5–8 years. A large number of small and medium-sized enterprises urgently need a modernization path that requires low investment, can be implemented quickly, and is compatible with their existing warehouse infrastructure—and the PTL (Light-to-Pick) system is perfectly positioned to fill this market gap.

In summary, the multiple pain points in traditional material warehouses essentially stem from a disconnect between the information flow and physical operations, where material task information cannot reach the actual picking locations on the shelves. The core objective of warehouse modernization is to bridge the “last meter” of the information flow, enabling task instructions to be dispatched directly to each material storage location. The light-guided picking system (PTL) is an excellent solution for achieving this goal.

III. Technical Principles, System Architecture, and Operating Modes of the Light-Gated Picking System (PTL)

3.1 Basic Concepts of the Light-to-Pick (PTL) System

PTL stands for “Pick-to-Light” and is commonly referred to in the industry as a light-guided picking system or an electronic label picking system. The light-guided picking system is an IoT-based, visual guidance warehouse solution consisting of two main components: a software control system and electronic shelf label hardware. It links each material storage bin to its corresponding electronic label; When the WMS (Warehouse Management System) generates tasks for material withdrawal, outbound shipping, or putaway, the backend controller issues instructions, causing the electronic label at the corresponding storage location to light up automatically, while the display simultaneously shows the quantity of items to be picked; Warehouse staff no longer need to search for storage locations by referring to paper documents; they simply follow the light guidance to the illuminated shelf, retrieve the specified quantity of items, press the confirmation button on the tag, and the tag’s light turns off, completing the picking task. The operation signal is transmitted back to the warehouse management system in real time, and inventory data is updated simultaneously, completing the transition from a “person-to-goods” model to a “goods-to-person” model.

3.2 Three-Tier Technical Architecture of the Light-Guided Picking System

A complete, fully operational light-guided picking system (PTL) is divided into three layers: the upper software layer, the middle transport control layer, and the lower field hardware layer. These three layers support bidirectional data exchange, forming a closed-loop operational system. First, the upper-level software layer: With the WMS (Warehouse Management System) serving as the central brain, it can interface with the enterprise’s ERP and MES (Manufacturing Execution System). After an ERP production order is issued, the WMS system automatically receives the bill of materials (BOM), optimizes wave-based picking tasks, intelligently plans picking routes, generates a picking task list, and sends the task data to the PTL controller; Once pickers press the confirmation button to complete a task, the WMS updates inventory counts in real time and generates picking performance reports and material traceability records. Second, the intermediate transmission control layer: PTL gateway controllers and WCS device scheduling services serve as data relays. They receive light-up commands issued by the upper-level WMS and distribute these commands to every electronic tag on the shelves via wired RS485, wireless ZigBee, or Wi-Fi communications; At the same time, it collects feedback signals when operators press the confirmation button and transmits them back to the upper-level warehouse management system, enabling two-way data exchange. Because the wireless PTL solution does not require the installation of a large number of communication cables on the racks, it offers great flexibility for future rack and bin adjustments and tag relocations, making it particularly well-suited for modernization projects in older warehouses. Third, the lower-level field hardware layer: This consists of PTL electronic labels deployed in front of rack storage locations. The hardware comprises LED status indicators, digital displays, confirmation buttons, and function shortcut keys. The indicator lights are used to highlight the target storage location, the digital display shows the quantity of items to be picked, and the confirmation button serves as the input for signaling task completion; Some high-end tags also feature additional functions such as material shortage reporting, batch locking, and audible and visual alarms, making them suitable for the complex material control scenarios found in manufacturing plants.

3.3 Two Main Picking Operation Modes in Light-Guided Picking Systems

The light-guided picking system includes two main operating modes: “Pick-to-Light” and “Put-to-Light.” Companies can flexibly choose between these modes or use both simultaneously based on the characteristics of their warehouse orders. Pick-to-Light: The most commonly used picking mode, in which warehouse staff push picking carts and follow the light signals to move sequentially to each material storage location, gathering the complete set of materials for a single work order. This mode is suitable for manufacturing production order kitting and scenarios involving the issuance of small batches of multiple items; it is also the most widely used operational method in the modernization of factory material warehouses. Seeding-Style Light-Guided Sorting: Warehouse staff first retrieve a large batch of a single item, then push a material cart to the seeding wall workstation. Labels above each order container light up sequentially, and the staff distribute the items into the respective order containers according to the displayed quantities. The “seeding” mode is suitable for consolidated order picking, e-commerce small-item outbound shipments, and material distribution from line-side warehouses at kitting walls.

IV. Pathways to Efficiency Gains Through the Modernization of Material Warehouses Using the Light-Guided Picking System (PTL)

When companies implement a light-guided picking system (PTL) as part of a material warehouse modernization project, the resulting efficiency gains are not limited to faster picking speeds alone, but rather bring comprehensive optimization and upgrades across five key areas: operational processes, workforce management, quality error prevention, inventory control, and data management.

4.1 Optimize picking routes, reduce unnecessary travel time, and directly increase picking speed

In the light-guided picking system, the WMS system’s backend pre-plans picking routes using algorithms, automatically sorting picking locations based on the shortest walking distance and aisle operation sequence. Warehouse staff follow the lights along the planned route to complete their tasks, eliminating the need to repeatedly crisscross between warehouse racks and directly cutting out the wasted time spent searching for storage locations. According to operational data collected from numerous manufacturing enterprises following system implementation, the introduction of the PTL light-guided picking system has generally increased per-person picking efficiency in warehouses by 30%–65%, the time required for a single picking operation has been significantly reduced, and without hiring additional pickers, peak order processing capacity has increased markedly, completely breaking through the efficiency ceiling of warehouse operations.

4.2 Establish a lighting-based error-proofing mechanism to reduce the picking error rate and minimize rework and re-verification costs

The light-guided picking system establishes a visual error-proofing barrier right at the source of operations: only the bin locations for items to be picked from the task list will light up, while the indicator lights for all other shelf locations remain off, thereby visually eliminating interference from unrelated items. Warehouse staff can only retrieve items from illuminated storage locations, and the quantity must match the number displayed on the label screen, effectively preventing errors such as misidentifying item models or miscounting quantities. After implementing this system, many manufacturing companies have seen their picking error rates drop from the original 2%–3% to below 0.2%; some factories with refined management have even managed to keep the error rate as low as 0.01%. The previously established secondary manual verification positions can be downsized, saving significant labor costs associated with verification and minimizing production losses caused by material mix-ups.

4.3 Lower the barriers to entry for warehouse operations, shorten the training period for new employees, and increase labor flexibility

The operational logic of the light-guided picking system is simple and intuitive; warehouse staff only need to remember the eight words “pick when the light is on, confirm when the light is on” to start working, eliminating the need to memorize hundreds or thousands of material storage locations throughout the warehouse. Under the traditional model, a 30-day training period was required; however, after introducing the PTL light-guided picking system, new employees can independently complete picking tasks in just half a day. The risks associated with warehouse staff turnover are significantly reduced. During peak order fulfillment seasons, companies can quickly deploy temporary staff to support warehouse picking operations, resulting in significantly enhanced flexibility in workforce scheduling, reduced difficulty in recruiting warehouse staff, and optimized personnel management costs.

4.4 Implement real-time closed-loop processing of job data and establish a comprehensive traceability system covering the entire material supply chain

Every time the confirmation button on a PTL electronic label is pressed, a “picking complete” signal is uploaded in real time to the WMS warehouse management system, and inventory data is updated immediately. This eliminates the time lag caused by manual entry of paper documents and effectively resolves discrepancies between book and actual inventory. All records of picking tasks, pickers, completion times, and material batch numbers are automatically archived to form a database. In the event of subsequent material quality issues, managers need only enter the work order number into the warehouse management system to retrieve the complete outbound picking record with a single click, enabling end-to-end traceability of materials from the warehouse to the production line workstation and meeting the stringent supply chain quality management requirements of the manufacturing industry.

4.5 Lightweight retrofits are suitable for older warehouses, reducing the cost and implementation time of modernization projects

Compared to heavy-duty warehouse automation solutions such as automated storage and retrieval systems (AS/RS) and automated sorting lines, the Pick-to-Light (PTL) system is a lightweight, intelligent retrofit project. During the retrofit phase, there is no need to dismantle the existing racking structure or make structural upgrades to the warehouse floor, fire safety systems, or ceiling height. In most cases, electronic label hardware can be installed directly onto the existing racking, and deployment is completed by integrating the software with the existing WMS and ERP systems. The project has a short construction cycle, and the warehouse can be retrofitted in phases while operations continue, causing virtually no disruption to normal warehousing and material issuance operations. The initial investment cost is significantly lower than that of heavy-duty automated warehousing projects, with a return on investment typically achieved within 1–3 years, greatly enhancing the economic feasibility of modernizing outdated warehouses for small and medium-sized enterprises.

V. Case Studies on the Implementation of Modernization Projects for Light-Guided Picking Systems in Warehouses and Quantitative Analysis of Results

To visually demonstrate the practical benefits that the Light-Guided Picking System (PTL) brings to the modernization of material warehouses, this article analyzes a warehouse digitization project at an automotive parts manufacturer as a representative case study.

5.1 Challenges Faced by the Company’s Warehouse Before the Renovation

An auto parts manufacturer in East China specializes in the production of automotive chassis components. Its raw materials warehouse covers an area of approximately 8,000 square meters and stores more than 3,200 SKUs. The factory’s three production lines rely on the warehouse to deliver materials on time each day. Prior to the renovation, the warehouse operated on a manual picking system using paper documents, with each warehouse clerk handling an average of 350 picking lines per day. During peak production periods, warehouse staff frequently had to work overtime, and the rate of delayed material outbound shipments during peak seasons reached 12%. Due to the high similarity in the appearance of parts, manual picking resulted in an average of 25 incorrect-item incidents per month. On one occasion, a picking error caused a 4-hour production line shutdown, resulting in direct economic losses exceeding 100,000 yuan; The discrepancy rate between book and actual inventory was approximately 3.8%, and material batch traceability was time-consuming; the training period for new warehouse staff to work independently lasted up to one month; and warehouse operations were highly reliant on the experience of veteran employees. The company’s management launched a warehouse modernization and upgrade project. After comparing various solutions, they ultimately chose to deploy the PTL wireless light-guided picking system, integrating it with the existing WMS warehouse management system without making large-scale changes to the original racking layout, and completed the intelligent upgrade of the warehouse in phases.

5.2 Implementation Plan for the Retrofit of the Light-Guided Picking System

Phase 1: Organize warehouse material locations; establish a one-to-one mapping between material SKUs and shelf location codes; clear out obsolete inventory; optimize ABC location planning for materials; and place high-frequency items in the “prime picking zone” for easy access by pickers; Phase 2: Install wireless PTL electronic label hardware on the shelves; set up gateway controllers and communication networks; and complete hardware networking and debugging; Phase 3: Integrate the PTL light-guided picking system with the enterprise WMS and MES production management systems via API interfaces to enable the automatic distribution of light-guided picking tasks based on production order bills of materials; Phase 4: Conduct operational training for warehouse managers and pickers; first, select a material zone for one production line to conduct a pilot run; once the pilot is stable, roll out the light-guided picking operation mode throughout the entire warehouse.

5.3 Quantitative Comparison of Benefits Following Project Renovation

Three months after the system went live, the company conducted a review and assessment of the warehouse’s core operational metrics. The warehouse modernization project yielded significant results, with notable improvements in several key warehouse metrics: 1. Picking Efficiency: The average number of rows picked per warehouse associate per day increased from 350 to 567, representing a 62% improvement in labor efficiency for picking operations; For the same material withdrawal workload, overtime hours for picking operations decreased by 35%; the rate of material outbound delays during peak seasons fell from 12% to within 1.5%, significantly reducing production line downtime caused by material shortages; 2. Picking Accuracy: The picking error rate dropped from 2.8% to 0.18%. Incidents of production line downtime caused by incorrect materials were eliminated, and the number of staff in the previously dedicated verification role was reduced by two, resulting in savings on warehouse labor costs; 3. Staff training cycle: The time required for new employees to become independently operational was reduced from 30 days to 4 hours, significantly increasing the flexibility of warehouse staffing; 4. Inventory Management: The rate of discrepancies between book and actual inventory fell from 3.81 TP3T to 0.71 TP3T, and the time required to trace and query material batches upon shipment was reduced from 2 hours to a matter of seconds, fully meeting the audit requirements of downstream vehicle manufacturers regarding supply chain traceability for parts.

This case study of the company’s warehouse modernization clearly demonstrates that the Pick-to-Light (PTL) system, as a lightweight, intelligent warehousing solution, can efficiently address long-standing pain points in traditional material warehouses—such as low efficiency, picking errors, and inventory control issues—at a relatively low renovation cost. It represents a cost-effective path for the digital transformation of older factory warehouses.

VI. Implementation Pathways and Key Selection Criteria for the Modernization of Light-Guided Picking (PTL) Systems in Corporate Material Warehouses

When companies undertake warehouse modernization projects and aim to realize the expected efficiency gains from a light-guided picking system, they cannot simply purchase a batch of electronic label hardware and install it directly on the shelves. Instead, they must follow a scientific and comprehensive implementation process, including a thorough preliminary assessment of the warehouse’s current state, solution selection, hardware and software integration, and post-implementation operations and maintenance planning. This article summarizes a standardized implementation roadmap.

6.1 Initial Assessment of the Warehouse's Current Status and Needs Analysis

In the early stages of the renovation, companies should conduct a comprehensive assessment of the warehouse’s current pain points, order structure, number of material SKUs, shelf layout, and existing IT software. Focus on evaluating whether warehouse orders primarily involve kitting for production work orders or picking and sorting for finished goods outbound, to determine whether to adopt a “fruit-picking” or “seed-sowing” light-guided picking model; Determine whether the existing WMS, ERP, and MES systems provide open API interfaces for integration, and assess the difficulty of integrating the future PTL system. If the company has not yet deployed a WMS (Warehouse Management System), prioritize selecting an integrated light-guided picking solution that includes built-in warehouse management functionality during the selection phase.

6.2 Key Considerations for Selecting PTL Light-to-Pick System Hardware and Software

Hardware: Wired PTL tags provide stable signals and are suitable for warehouse environments where shelves are permanently fixed and storage locations rarely change. Wireless ZigBee/Wi-Fi versions of illuminated tags allow for easy relocation, removal, and reinstallation when adjusting shelf locations later on, making them better suited for modernization projects in older warehouses where material storage locations frequently change. Based on material control requirements, choose advanced electronic labels with features such as out-of-stock reporting, audible and visual alarms, and batch locking as needed. Do not blindly pursue high-end hardware to avoid unnecessary cost waste. Software: Prioritize light-up picking systems that feature open standard interfaces and can be deeply integrated with your company’s existing management software. The software modules should include core functions such as wave-based picking optimization, picking route planning, picking performance metrics, material traceability reports, and exception task management.

6.3 Phased Pilot Rollout and Smooth Transition Between Old and New Work Modes

For warehouse modernization projects, it is not recommended to switch the entire warehouse to light-guided picking operations all at once. Instead, we recommend adopting an implementation strategy of “pilot first—gradual rollout—full-scale deployment.” First, select one material zone as a pilot site, run the system for 1–2 months, collect feedback from operators, fine-tune and optimize system processes, and resolve any issues that arise during the pilot phase; Once the pilot is successful, expand the scope of light-guided picking zone by zone, allowing the new and old picking methods to run in parallel for a transitional period. Finally, completely phase out paper-based picking, thereby reducing the risk of failure during warehouse renovation and system rollout.

6.4 Establish a System for Post-Implementation Operations, Maintenance, and Process Management

The implementation of the light-guided picking system is not the end of the implementation process; companies need to establish new standardized warehouse operating procedures that clearly define the “light-guided picking and button confirmation” operational guidelines; Regularly inspect the operational status of the electronic shelf label hardware and establish a mechanism for reporting and repairing label malfunctions; when adjusting material storage locations in the warehouse, simultaneously update the location-binding data in the PTL system to ensure the system’s long-term stable operation.

VII. Limitations of the Light-Guided Picking System in Warehouse Modernization and Optimization Strategies

The Light-Guided Picking System (PTL) is an excellent, streamlined smart warehousing solution, but it is not a one-size-fits-all solution for warehouse upgrades; it also has its limitations. When undertaking warehouse modernization projects, companies should evaluate it rationally, capitalizing on its strengths while mitigating its weaknesses. First, the light-guided picking system is better suited for piece-picking and scenarios involving high-frequency outbound shipments of multiple SKUs; For bulk inbound and outbound operations involving full pallets, the efficiency gains from light-guided systems are limited. In such warehouses, PTL systems can be used in conjunction with forklift barcode scanning operations, with zones managed separately. Second, the light-guided picking system is, by its nature, an operational guidance tool; it cannot automatically handle goods movement. Picking still requires manual operation, making it a human-machine collaborative intelligent upgrade rather than a fully automated “staff-free” factory solution; If a company’s long-term goal is to build a fully automated, unmanned warehouse, PTL light-guided picking can serve as the foundation for the first phase of digital transformation. Subsequently, AGVs and automated racking equipment can be gradually integrated to complete the warehouse automation project in phases. Third, the system’s effectiveness is highly dependent on the accuracy of work order data from the upper-level WMS (Warehouse Management System). If errors occur in the bill of materials (BOM) issued by the ERP system, the PTL light-guided picking system cannot identify issues in the source documents, and picking errors will still occur. Optimization Strategy: When implementing the PTL light-guided picking system, the company should simultaneously standardize the upstream work order approval process to ensure the quality of bill of materials data from the source, thereby achieving coordinated upgrades across upstream and downstream processes.

VIII. Conclusions and Outlook

Amid the wave of digital transformation sweeping through Chinese manufacturing warehouses, the modernization of outdated material warehouses has become a crucial component of supply chain upgrades. The traditional manual picking model relying on paper documents creates a series of problems—including efficiency bottlenecks, the risk of incorrect material selection, high labor costs, and difficulties in traceability—which severely hinder the efficiency of material flow in factory production. The Pick-to-Light (PTL) system, which combines IoT electronic tag hardware with warehouse management software, delivers picking instructions directly to specific shelf locations, successfully achieving a transformative shift in warehouse picking operations from a “person-to-goods” model to a “goods-to-person” model.

In terms of practical results, the light-guided picking system, when implemented in enterprise material warehouse modernization projects, can effectively improve picking efficiency, reduce picking error rates, shorten employee training cycles, and enable end-to-end traceability of materials. It also offers notable advantages such as a lightweight retrofit, minimal civil engineering modifications, a short deployment cycle, controllable investment costs, and compatibility with older warehouses, thereby opening up a highly cost-effective path to intelligent upgrading for numerous factory warehouses that lack the conditions for heavy-duty automation retrofits. Of course, when implementing a PTL (Light-Guided Picking) system upgrade project, enterprises must also take into account warehouse order characteristics, existing IT infrastructure, and medium- to long-term warehouse development plans. They should select the appropriate system scientifically, roll it out in phased pilot implementations, and establish comprehensive warehouse management systems to maximize the cost-saving and efficiency-enhancing benefits of the PTL system.

Looking ahead, as Industrial Internet of Things (IIoT) technology continues to evolve and upgrade, the Light-Guided Picking System (PTL) will further integrate with WMS intelligent warehouse systems, MES production systems, AGV material-handling equipment, smart weighing racks, and RFID material identification technology, evolving from a simple picking guidance tool into a comprehensive digital management solution for factory line-side warehouses and material storage facilities. This will continue to help manufacturing enterprises modernize and digitize their warehouses, thereby empowering high-quality development of their supply chains.