Warehousing performance improvement using Frazelle Model and per group benchmarking: A case study in retail warehouse in Yogyakarta and Central Java

Abstract

Warehouse performance management has an important role in improving logistic's business activities. Good warehouse management could increase profit, time delivery, quality and customer service. This study is conducted to assess performance of retail warehouses in some supermarket located in Central Java and Yogyakarta. Performance improvement is proposed base on the warehouse measurement using Frazelle model (2002), that measure on five indicators, namely Financial, Productivity, Utility, Quality and Cycle time along five business process in warehousing, i.e. Receiving, Put Away, Storage, Order picking and shipping. In order to obtain more precise performance, the indicators are weighted using Analytic Hierarchy Analysis (AHP) method. Then, warehouse performance are measured and final score is determined using SNORM method. From this study, it is found the final score of each warehouse and opportunity to improve warehouse performance using peer group benchmarking