Optimizing Warehouse Management in Footwear Commercial Companies: A Case Study on Lean-BPM
International Journal of Mechanical Engineering |
© 2024 by SSRG - IJME Journal |
Volume 11 Issue 1 |
Year of Publication : 2024 |
Authors : Camila Acevedo-Aybar, Maricielo Jáuregui-Alfaro, Juan Carlos Quiroz-Flores, Ahad Ali |
How to Cite?
Camila Acevedo-Aybar, Maricielo Jáuregui-Alfaro, Juan Carlos Quiroz-Flores, Ahad Ali, "Optimizing Warehouse Management in Footwear Commercial Companies: A Case Study on Lean-BPM," SSRG International Journal of Mechanical Engineering, vol. 11, no. 1, pp. 16-27, 2024. Crossref, https://doi.org/10.14445/23488360/IJME-V11I1P102
Abstract:
The article presents a case study on optimizing warehouse management in a footwear commercial company using the Lean-BPM methodology. The company experienced low performance in fulfilling complete and on-time orders, resulting in customer dissatisfaction. The proposed model includes tools such as 5S, Multicriteria ABC, Kardex, standard work, and BPM. The implementation of the model resulted in a significant improvement in the On Time, In Full index (OTIF). The study demonstrates that the proposed model can improve warehouse management efficiency in similar companies, which is crucial for business competitiveness and customer satisfaction. The worldwide crisis has created issues for Peru’s footwear industry, which is crucial to the country’s economy. These challenges include decreased output and exports, as well as the susceptibility of small and medium-sized businesses. Adopting new tools and technology, fostering training initiatives, and enhancing corporate management are critical to the sector’s expansion. Inadequate warehousing, physical distribution and inventory management are common causes of customer dissatisfaction in the retail industry. The proposed model addresses these issues by standardizing processes, improving product knowledge, and reducing production errors. The study highlights the importance of implementing effective warehouse management strategies to meet the demands of speed and correct delivery in the competitive business environment.
Keywords:
ABC, BPM, Footwear, Inventory management, Kardex, Lean warehousing, Picking, Standard work.
References:
[1] F. Sierra, “Improvement Plan in the Storage and Dispatch Processes of the Company Electrical Distribution JE SAS,” Universidad Industrial de Santander, Bucaramanga, 2017.
[2] E. Frazelle, Supply Chain Strategy: The Logistics of Supply Chain Management, 1 st ed., McGraw Hill, 2002.
[Google Scholar] [Publisher Link]
[3] Euromonitor International, Apparel and Footwear Specialist Retailers in Peru, 2022. [Online]. Available: https://www-portal-euromonitor.com.ezproxy.ulima.edu.pe/analysis/tab
[4] Global Business and Economy Research Center, 2022. [Online]. Available: https://www.cien.adexperu.org.pe/wp.content/uploads/2022/04/CIEN_NSIM1_Abril_2022-Calzado4.pdf
[5] Foreign Trade Center, 2019. [Online]. Available: https://www.comexperu.org.pe/publicaciones?id=5&publicacion=Memoria%20anual&edicion=2018
[6] National Society of Industries, 2019. [Online]. Available: https://sni.org.pe/estudios-economicos/
[7] Foreign Trade Society of Peru, 2021. [Online]. Available: https://www.comexperu.org.pe/articulo/el-sector-calzado-peruano-no-necesita-de-proteccion-sino-de-acciones-y-politicas-que-promuevan-su-competitividad
[8] Ministry of Production, 2020. [Online]. Available: https://www.gob.pe/produce
[9] K.A. Bonilla-Ramirez et al., “Implementation of Lean Warehousing to Reduce the Level of Returns in A Distribution Company,” International Conference on Industrial Engineering and Engineering Management, Macau, China, pp. 886-890, 2019.
[CrossRef] [Google Scholar] [Publisher Link]
[10] A. Freile, J. López, and Sofía López Iglesias, “Reduction in Picking Times Orders for Delivery in A National Distribution Centre: A Case Study,” 17th LACCEI International Multi-Conference for Engineering, Education, and Technology, Montego Bay, Jamaica, pp. 1-7, 2019.
[CrossRef] [Google Scholar] [Publisher Link]
[11] S. Nallusamy, and G. Majumdar, “Enhancement of Overall Equipment Effectiveness Using Total Productive Maintenance in A Manufacturing Industry,” International Journal of Performability Engineering, vol. 13, no. 2, pp. 173-188, 2017.
[Google Scholar] [Publisher Link]
[12] Mayra Vasquez-Quispe et al., “Implementing Lean Warehousing Model to Increase on Time and in Full of an SME Commercial Company: A research in Peru,” 10th International Conference on Industrial Engineering and Applications, Rome, Italy, pp. 60-65, 2023.
[CrossRef] [Google Scholar] [Publisher Link]
[13] Yanxin Wang et al., “A Pull Order Fulfillment Method Combining Jit with Group Technology for Online Supermarket,” International Journal of Innovative Computing Information and Control, vol. 19, no. 1, pp. 269-278, 2023.
[Google Scholar] [Publisher Link]
[14] Guillermo André Laura-Ulloa et al., “Lean Model Applied to Increase the Order Fulfilment in SMEs in the Footwear Industry,” 3rd International Conference on Industrial Engineering and Industrial Management, Barcelona, Spain, pp. 141-146, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[15] Felix Weidinger, “Picker Routing in Rectangular Mixed Shelves Warehouses,” Computer & Operations Research, vol. 95, pp. 139-150, 2018.
[CrossRef] [Google Scholar] [Publisher Link]
[16] Inderpreet Singh Ahuja, and Harwinder Singh, “Evaluating the Effectiveness of 5S Implementation Practices in Indian Manufacturing Industry,” International Journal of Productivity and Quality Management, vol. 25, no. 4, pp. 506-555, 2018.
[CrossRef] [Google Scholar] [Publisher Link]
[17] Julio Cubas Rodríguez et al., “Implementation of Lean Manufacturing Tools to the Kid’s Footwear Company,” 20th LACCEI International Multi-Conference for Engineering, Education, and Technology, Boca Raton, United States, 2022.
[Publisher Link]
[18] Elmer Alfonso Gil-Goyzueta, Fiorella Yasmin Medrano-Cordova, and Ernesto Altamirano-Flores, “Process Improvement Proposal Storage to Increase the Service Level Using Lean Warehousing in Commerce Companies,” 8th International Conference on Industrial and Business Engineering, pp. 195-203, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[19] Nils Boysen, Konrad Stephan, and Felix Weidinger, “Efficient Order Consolidation in Warehouses: The Product-to-Order-Assignment Problem in Warehouses with Sortation Systems,” IISE Transactions, vol. 54, no. 10, pp. 963-975, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[20] Taher Ahmadi, and Nooshin Rahmani, “How to Develop Standardized Work for Business Processes in the Transactional Office Environment,” Total Quality Management & Business Excellence, vol. 34, no. 13-14, pp. 1719-1731, 2023.
[CrossRef] [Google Scholar] [Publisher Link]
[21] Rafaela Guimarães et al., “Restructuring Picking and Restocking Processes on A Hypermarket,” Production Engineering Archives, vol. 28, no. 1, pp. 64-72, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[22] Alicia Anton, Mishell Roque, and Edgar Ramos, “Lean Warehousing Model to Improve the Order Fulfillment in A Metalworking Company,” 8th International Conference on Industrial and Business Engineering, pp. 90-95, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[23] Edward Lavado Padilla et al., “Logistics Management Model to Increase the Level of Service in a SME Footwear Marketer,” 10th International Conference on Industrial Technology and Management (ICITM), Cambridge, UK, pp. 84-85, 2021.
[CrossRef] [Google Scholar] [Publisher Link]
[24] Arturo Realyvásquez-Vargas et al., “Implementation of Production Process Standardization -A Case Study of A Publication,” Processes, vol. 7, no. 10, 2019.
[CrossRef] [Google Scholar] [Publisher Link]
[25] Satya Shah, Elmira Naghi Ganji, and Alec Coutroubis, “Lean Production Practices to Enhance Organizational Performance,” 21st International Conference on Circuits, Systems, Communications and Computers, Heraklion, Crete, vol. 125, pp. 1-7, 2017.
[CrossRef] [Google Scholar] [Publisher Link]
[26] Diego Michael Cornelius dos Santos, Bruna Karine dos Santos, and César Gabriel dos Santos, “Implementation of a Standard Work Routine Using Lean Manufacturing Tools: A Case Study,” Management and Production, vol. 28, no. 1, 2021.
[CrossRef] [Google Scholar] [Publisher Link]
[27] Jakeline Del Rosario Campos-Sonco, Valeria Saavedra-Velasco, and Juan Carlos Quiroz-Flores, “Warehouse management model to increase the level of service in Peruvian hardware SMEs,” 20th LACCEI International Multi-Conference for Engineering, Education, and Technology, USA, 2022. [Publisher Link]
[28] Alexandra Lira-Aquino et al., “Improving Production Process Efficiencies at A Peruvian Company through A Lean Manufacturing Implementation Model,” 7th International Conference on Industrial and Business Engineering, pp. 117-122, 2021.
[CrossRef] [Google Scholar] [Publisher Link]
[29] Luis Bedoya Jimenez, Carlos Chirinos Cuadros, and María Teresa Noriega Aranibar, “Systematic Literature Review of the Applications of Lean Methodologies in the Retail Sector,” 2nd South American Conference on Industrial Engineering and Operations Management, Sao Paulo, Brazil, pp. 2056-2067, 2021.
[Publisher Link]
[30] Arnold Villacrez-Zelada, Jorge Liñer-Hernandez, and Gino Viacava-Campos, “Service Level Optimization Using ABC Distribution, Forecasts and the Packaging and Stowage Model through Lean Warehousing at an SME Marketing Company,” 8th International Conference on Information Management (ICIM), Cambridge, United Kingdom, pp. 171-175, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[31] Masoud Mehdizadeh, “Integrating ABC Analysis and Rough Set Theory to Control the Inventories of Distributor in the Supply Chain of Auto Spare Parts,” Computers and Industrial Engineering, vol. 139, 2020.
[CrossRef] [Google Scholar] [Publisher Link]
[32] Elia Oey, and Maulana Nofrimurti, “Lean Implementation in Traditional Distributor Warehouse - A Case Study in An FMCG Company in Indonesia,” International Journal of Process Management and Benchmarking, vol. 8, no. 1, pp. 1-15, 2018.
[CrossRef] [Google Scholar] [Publisher Link]
[33] Gloria Isabel García-Chávez et al., “Inventory Management Model Based on Demand Forecasting, 5S, BPM and Max-Min to Improve Turnover in Commercial Enterprises,” International Congress of Innovation and Trends in Engineering (CONIITI), Bogotá, Colombia, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[34] Maria A. Marin, Anggela J. Ordonez, and Iliana A. Macassi, “Improvement Proposal to Increase the Level of Order Fulfillment in A Textile Company Using Inventory Management and the 5s Methodology,” 8th International Conference on Industrial and Business Engineering, pp. 183-189, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[35] Kevin Luis Ambrosio-Flores et al., “Warehouse Management Model Integrating BPM-Lean Warehousing to Increase Order Fulfilment in SME Distribution Companies,” 8th International Engineering, Sciences and Technology Conference, Panama City, Panama, pp. 17-24, 2022.
[CrossRef] [Google Scholar] [Publisher Link]