Warehouse management model integrating BPM-Lean Warehousing to increase order fulfillment in SME distribution companies

Abstract

In many cases, warehouse logistics in the distribution SMEs usually do not have a standardization, structure, and methodology for the reception, storage, and dispatch. Most of the flows within the warehouse tend to occur over time, but there is no feedback or a choice of logistics tools to make it more efficient. This lack of tools causes problems such as a non-existent flow of information, a lack of warehouse organization, inventory control, and a non-existent work protocol. These problems cause the customer satisfaction index to shallow since mishaps usually occur during order delivery. The general objective of this research is to increase the indicator of complete orders, so the root causes of the problem are identified and quantified. After that, a model based on implementing Lean Warehousing tools such as multi-criteria ABC, 5S, Kardex and work standardization, and BPM methodology was also applied. Subsequently, the model's reliability was guaranteed using a simulation through Arena software and a pilot test. Finally, the model increased the indicator of orders entirely delivered by 12%. Likewise, as a secondary consequence, other indicators were increased: inventory record accuracy, location registration accuracy, coverage, cycle time, and productivity by 16%, 32%, 57%, 3%, and 24%, respectively.