Analysis of a logistics flow int the light of VSM 4.0: a case study of in a Distribution Center (DC) in Brazil

Abstract

This article presents an application of Value Stream Mapping 4.0 (VSM 4.0) developed by Meudt et al. (2017) in the detailed identification of activities in information flows in a logistics Distribution Center (DC). The order generation, order picking, checking, consignor checking, and shipping flows were mapped. The research method applied was a case study in a distribution center of a large Brazilian industry in the metallurgical sector that manufactures consumer goods for retail. In this practical application, the approach produced satisfactory results as it was possible to identify and measure the informational indicators of VSM 4.0: the digitization/automation rate (DR) was 9%, the data utilization (DU) rate was 0%, and data availability (DA) rate of 16%. From this data, it was possible to verify that the company does not have a proprietary information flow, making this information sparse and management difficult, as 84% of the information is manual, that is, without the use of digital media, with low ERP use. The practical applicability of VSM 4.0 was verified in a logistics environment where information flow is significant. Furthermore, we observed that VSM 4.0 could contribute to the identification of waste in operations management and provide information for digital transformation inflows and processes, which are so crucial for the migration to Industry 4.0.