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Successful design of warehouse layout for an extremely volatile market founded major increased market share
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Development, IT and Land Management, Industrial economics. University of Gävle, Center for Logistics and Innovative Production. (CLIP)
2011 (English)Conference paper, Published paper (Refereed)
Abstract [en]

The purpose of this paper is to give a successful example of how and why a change in warehouse design, where different picking methods are combined and supported by an intelligent warehouse management system to meet a very huge variation in volume with very short delivery time, have founded a major increasing in the market share from 22 to 50 %.

This research was done as a longitudinal study from 1993 to 2010, where one company was followed on daily base 1993-2000 and for the last 10 years followed on yearly base.

At the end of the study (2010) the company distributed over 13,000,000 items (books) covering 35,000 titles. The order size varies from 1 to over 5000. In addition, the company distributes over 2,600,000 items for book clubs and online shopping, as well as providing a wide range of additional services in the form of special packaging solutions, mechanical packing, mailing information, etc. The delivery time must be within 15 min in some cases but normally order taken before 17:00 are dispatched the next day. The must books are not wrapped.

There are mainly to findings. The first finding is the importance to really understand the variation in volume over time and to design the warehouse and processes after this. Many similar companies have tried to meet the marked demand with warehouse automation, but this case show the importance to avoid automation to keep maximum flexibility to be able to meet extreme volume variation with very short delivery times.

The second finding is that the intelligence in meaning of supporting IT-systems both must handling different market demands and support different order fulfillment processes. To meet the customer’s different requirements with short delivery times and huge variation in volume the successful order fulfillment process includes lot of different picking methods.

A deep and long time study of a “best practice” case of a third party logistic providers that have designed the warehouse in order to meet an extremely volatile market.

Place, publisher, year, edition, pages
2011. p. 1-
Keywords [en]
Warehouse layout, short delivery time, extreme variation in volume, third party logistics, logistics services
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:hig:diva-10465OAI: oai:DiVA.org:hig-10465DiVA, id: diva2:443862
Conference
NOFOMA 2011, Harstad, Norway, June 9-10, 2011.
Note

Abstract accepted, invited to write a full paper.

Available from: 2011-09-27 Created: 2011-09-27 Last updated: 2018-03-13Bibliographically approved

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Hellberg, Roland

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard-cite-them-right
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • sv-SE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • de-DE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf