1st World Congress 2024 Detroit

Developing a Lean Warehousing Storage Model: A Case Study in Peruvian Retail SMEs

Franco Bedoya-Vargas & Diego Alonso Del-Carpio-Lagones
Publisher: IEOM Society International
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Abstract

Retail SMEs play a crucial role in the global economy, particularly in Latin America and Peru, where they significantly contribute to employment generation, economic growth, and product diversification. However, they face operational challenges such as inefficient inventory management, poor demand planning, and inadequate storage methods, leading to economic losses and customer dissatisfaction. This study aims to address these issues by implementing a Lean Warehousing model, focusing on demand planning, storage methodology, and differentiated stowage. The proposed model integrates ABC classification, FIFO/FEFO methodologies, and standardized work processes to optimize inventory management and reduce waste.

The main challenges in the retail SME sector include stockouts, overstock situations, and high defect rates in shipments. These issues necessitate urgent intervention to improve operational efficiency and customer satisfaction. The proposed model provides a structured approach to managing these challenges by implementing advanced demand planning techniques and efficient storage practices. Historical sales data and ABC analysis were used to forecast demand accurately, ensuring that stock levels matched customer requirements. The storage methodology focused on organizing products based on usage frequency, while differentiated stowage prioritized products nearing expiration, minimizing waste and improving picking efficiency.

Key findings from the study revealed that the Fill Rate increased from 77.10% to 94.00%, defect-free shipments improved from 85.60% to 98.10%, on-time delivery remained constant at 99.10%, and the service level rose from 87.30% to 97.10%. These results demonstrate the effectiveness of the Lean Warehousing model in enhancing storage efficiency and operational performance. The model's implementation led to significant improvements in inventory management, reduced operational costs, and increased customer satisfaction by ensuring timely and defect-free deliveries.

The academic and socioeconomic impact of this research is substantial, as it provides a viable solution for optimizing warehouse operations in retail SMEs. By improving operational efficiency, the model contributes to the long-term sustainability and competitiveness of these companies. Additionally, the research offers valuable insights for future studies on the integration of advanced technologies and Lean practices in various industrial contexts.

This study calls for further exploration into the application of Lean Warehousing principles in other sectors and geographies. Future research should focus on integrating automated systems and data analysis tools to enhance the model's efficiency. Active employee participation and continuous training in Lean principles are essential for the ongoing success and improvement of the implemented storage system, ensuring that retail SMEs can meet the demands of an increasingly competitive market.

Published in: 1st World Congress 2024 Detroit, Detroit, United States

Publisher: IEOM Society International
Date of Conference: October 9-11, 2024

ISBN: 979-8-3507-1729-7
ISSN/E-ISSN: 2169-8767