Abstract

Purpose – This thesis investigates the bottlenecks and inefficiencies within the inbound

and order picking process, with an emphasis on how lean tools and strategic planning

can enhance the efficiency in inbound and picking operations.

Method – The study, based on a case company, is the large-sized furniture retailer’s

central warehouse in Jönköping. Qualitative research approach was applied, the data

collected through interviews, observations and internal documents. Lean tools were

applied to identifying efficiencies and analyzing the process to address the research

questions.

Findings – The investigations resulted in identifying inefficiencies in warehouse layout

and capacity, technological and automated systems, and workflow conditions. The

problems were categorized according to the Eight Wastes of Lean, and potential

improvements suggested through 5S implementations and Standard Operating

Procedures. The Theory of Constraints also applied to identify the bottlenecks in the

system. The role of strategic planning in long-term operational improvements are also

highlighted.

Implication - This thesis provides practical solutions to address inefficiencies and

bottlenecks in inbound operations and the order picking process. These inefficiencies

have been classified into strategic inefficiencies and operational inefficiencies, either

aligning with the company strategies and enabling long-term to reach the operational

goals or hindering obstacles in daily operations and requiring improvement actions. The

decoupling point concept was used to explain how strategic inefficiencies are also

beneficial in long-term goals. The framework of the eight wastes of lean was applied to

investigate the root causes of these inefficiencies. The Theory of Constraints supported

to identify critical bottlenecks that limits the operations performance.

The improvements can support overcoming operational inefficiencies. Implementing

lean tools such as 5S and strengthening Standard Operating Procedures can be helpful

to improve productivity in stated operations.

Limitations – This study is based on qualitative data from a major warehouse. Due to

the unique characteristics of customer orders, it is not feasible to measure and quantify

picking times numerically. The inefficiencies and suggestions presented in the study

are applicable to other warehouses that face similar or the same operational challenges.

Keywords – Inbound, Order picking, 5S, Eight Wastes of Lean, Inefficiencies in

Warehouse, Bottlenecks in Order Picking, Bottleneck in Inbound Operations, Standard

Operating Procedures, Strategic Planning