Development of an improvement framework for warehouse processes using lean six sigma (DMAIC) approach. A case of third party logistics (3PL) services

Abstract

This study aims at developing an improvement framework of warehouse processes by improving process cycle efficiency using lean six sigma (DMAIC) approach.A case study method was used to illustrate the evaluation of the existing processes in the warehouse of a third party logistics company with a focus on productivity using warehouse lean tools. Data were collected based on warehouse operational areas of suppliers, customers and internally related with a focus on warehouse core processes. The optimization of the warehouse processes was based on established lean tools.Based on the warehouse evaluation, high non-value added activities were observed leading to a low process cycle efficiency of 40%. After the implementation of the lean six sigma approach, the process cycle efficiency improved of up to 70%. An improvement framework was also established for productivity across the warehouse processes to minimise waste.Lean warehousing has been used to illustrate solutions to a real-time problem of productivity which has negatively impacted on management and customer satisfaction.The study has added to lean warehousing focusing on all the warehouse processes using six sigma DMAIC approach, unlike most literature which concentrates on a specific process. Also develop a framework for the improvement of the processes.

Keywords

• Lean
• Productivity
• Third party logistics
• Total supply chain
• Warehousing