A multi-method approach for reducing operational wastes in distribution warehouses

Abstract

Distribution warehouses are a key element in competitive supply chains. However, although there is a growing need to reduce waste and non-value-adding activities to increase warehouse performance, insufficient research exists examining how warehouse managers can reduce operational waste in warehouse operations. To address these challenges, this article aims to validate a multi-method optimization approach for identifying and reducing operational waste in distribution warehouses. The approach integrates a unified modelling language activities diagram, system thinking method, value stream mapping, and Genba Shikumi, i.e., a quantitative tool based on successive correlation vectors and matrices, among other methods. Qualitative and quantitative information was used to validate the approach through an exploratory case study in Denmark. The significant research findings showed that the implemented approach is able to identify and prioritise the primary wastes in distribution warehouse operations. Furthermore, the study shows that the warehouse lead time could be reduced by 41.4% and the total value-added time by 81.5%, thus improving warehouse performance. Overall, the paper contributes to advancing knowledge and research on reducing operational waste in distribution warehouses by implementing an approach that helps companies identify and quantify the impact of non-value-adding activities. Lastly, findings suggest that the approach implemented could be applied in other similar contexts to identify and reduce waste to increase the performance of distribution warehouse operations.