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