Effects of Warehouse Management and engineering system on cost reduction and operations improvement

Abstract

The purpose of this paper is to explain what the United Company for Trading (UCT) has done to reduce costs and improve operations. The study will highlight how Engineering and Information technology Systems can be used to improve operations of companies. This paper will also illustrate how to find solutions for warehousing and distribution problems, as well as suggest solutions for the problems that the studied company is still facing. The study will include a review of the main literature in the field of inventory management. The situation of UCT, a Lebanese company, is examined, before and after the implementation of the warehouse management system (WMS), and the study will explain the ways that WMS improved operations and helped the company reducing costs. The study will briefly explain the case of Sona Enterprises, an American company that implemented WMS. The data used is obtained by reviewing the literature and interviewing different managers and employees at UCT and from observations during site visits. Different research questions asked and one major hypothesis tested and accepted. The study found that implementing a warehouse management system improved the operations in both studied companies, and huge operating costs were saved. From a practical point of view, this study helps in solving inventory management and warehousing problems by using new and powerful information technology systems. The value of this study is mainly to give a practical and effective solution for contemporary problems related to inventory and warehousing as well as high operating costs faced by concerned companies.