Purpose – The purpose of this study is to investigate how ABC-classified article placement can reduce transport distances within warehouse operations, which do not use volume-based article placement. Based on the purpose, two research questions have been formulated:

[1]   How can an ABC-classified article placement be established in order to minimize transport distances within warehouses?

[2]   How much can transport distances be reduced by using an ABC-classified article placement instead of a non-volume based storage?

Method – The methods that have been used to collect data have been a case study and a literature review. The case study has been performed on Sherwin-Williams’ distribution centre in Nässjö and has mainly been based on two months of picking data. Interviews and observations have supplemented the document study. The literature review has resulted in a theoretical framework in which the relevant theories of the study have been presented. The collected data was analysed by comparing the different results against each other. Further comparisons analysed the empirical data against the theoretical framework.

Findings – The study has resulted in a model of how ABC-classified article placement with the purpose to reduce transport distances can be designed. The model is based on a few steps that are: pilot study, performance of an ABC-analysis based on the articles picking rate, and zone division. According to the case study ABC-classified article placement can reduce up to 35 % of internal transportation distances and according to the theoretical framework of up to 55 %.

Implications – Warehouses that want to use the study can proceed from the steps presented in the analysis section. Furthermore, the practical implications of the study results in a system configuration and the movement of goods to the introduction of the ABC-classified article placement. The study implies theoretically that the volume-based article placement minimizes transport distances. The existing theories stating this is evidenced in this study which also shows that warehouses with less skewed ABC-curves can benefit from placing high frequency goods near the loading area. The study contributes with a new model that has been developed by compiling theories in the studied area.

Limitations – The study has been limited to a single case study. The calculations made in the study have excluded items that require special storage, small package picking and distance between the pallets that are retrieved together. Transport distances have been calculated from the loading area and has excluded the distance between the racks and unload area.