Improving Efficiency of the Order Picking Process in the Case Company Warehouse

Abstract

This study proposes an improvement plan for improving efficiency of the order picking process in the case company. The case company is looking for actions to increase profitability of its business. As the order picking can be one of the costliest warehouse operations, picking is a great place to improve efficiency and look into a possibility to increase profitability.

This study is conducted by using qualitative data gathering, and it involves the key stake-holders of the order picking process by conducting interviews and workshop. The selected research approach is a case study, and the study strives to find the starting point for the efficiency improvements by conducing the current state analysis of its existing picking order process. When the problem are identified, the study looks into the available knowledge and best practice on warehouse process improvements. Ideas from best practice are then applied to formulate the proposal for the case company. The outcome of this study is an improvement plan for the improved order picking process. The proposal is approved by the logistic manager of the case company, but the implementation stage is still pending.

The proposed improvement plan helps the case company to improve efficiency of its picking order process by introducing: item classification, removing the excess items from the inventory, and rethinking its picking routing. By using the popularity based item locations, coupled with optimal picking routing, the case company could increase efficiency of the picking process.