Enhancing Order Picking Processes : A case study addressing inefficiencies in inbound operations

Sammanfattning

Abstract Purpose – This thesis investigates the bottlenecks and inefficiencies within the inbound and order picking process, with an emphasis on how lean tools and strategic planning can enhance the efficiency in inbound and picking operations. Method – The study, based on a case company, is the large-sized furniture retailer’s central warehouse in Jönköping. Qualitative research approach was applied, the data collected through interviews, observations and internal documents. Lean tools were applied to identifying efficiencies and analyzing the process to address the research questions. Findings – The investigations resulted in identifying inefficiencies in warehouse layout and capacity, technological and automated systems, and workflow conditions. The problems were categorized according to the Eight Wastes of Lean, and potential improvements suggested through 5S implementations and Standard Operating Procedures. The Theory of Constraints also applied to identify the bottlenecks in the system. The role of strategic planning in long-term operational improvements are also highlighted. Implication - This thesis provides practical solutions to address inefficiencies and bottlenecks in inbound operations and the order picking process. These inefficiencies have been classified into strategic inefficiencies and operational inefficiencies, either aligning with the company strategies and enabling long-term to reach the operational goals or hindering obstacles in daily operations and requiring improvement actions. The decoupling point concept was used to explain how strategic inefficiencies are also beneficial in long-term goals. The framework of the eight wastes of lean was applied to investigate the root causes of these inefficiencies. The Theory of Constraints supported to identify critical bottlenecks that limits the operations performance. The improvements can support overcoming operational inefficiencies. Implementing lean tools such as 5S and strengthening Standard Operating Procedures can be helpful to improve productivity in stated operations. Limitations – This study is based on qualitative data from a major warehouse. Due to the unique characteristics of customer orders, it is not feasible to measure and quantify picking times numerically. The inefficiencies and suggestions presented in the study are applicable to other warehouses that face similar or the same operational challenges. Keywords – Inbound, Order picking, 5S, Eight Wastes of Lean, Inefficiencies in Warehouse, Bottlenecks in Order Picking, Bottleneck in Inbound Operations, Standard Operating Procedures, Strategic Planning