Relocation of a warehouse for a cosmetic company: A case study

Abstract

Warehouses are pivotal components within a company's supply chain, handling crucial functions such as receiving, storing, and delivering goods to end customers. While extensive research exists on the strategic location of warehouses in network optimization, there is a notable dearth of research on how to relocate a warehouse from one site to another, particularly while minimizing associated risks. This study sheds light on a low-risk approach undertaken by a multi-level marketing (MLM) company in Malaysia during the relocation of their warehouse. The study primarily addresses several key constraints: (i) Completion of the warehouse relocation exercise in 4.5 months; (ii) Termination of their warehouse staff services during the relocation; (iii) Elimination of disruption in the order fulfillment service level; (iv) Management of temperature-sensitive goods during the transfer and storage; (v) Seamless linkage between the third-party logistics (3PL) warehouse management system (WMS) and the company's systems. The primary objective of this study is to propose a resilient strategy for the relocation of their warehouse, taking into account these key constraints faced by the company.