Competitive logistics management : Guidelines for handling logistical challenges in chain store warehouses

Abstract: During the last decades, it has been brought to light that well organized logistics processes have contributed to competitive advantages for companies. Mio AB, a chain store warehouse and the second largest furniture company in Sweden, is operating in the middle of an expansion phase with growing revenue. As a consequence, larger volumes of goods are handled, space utilization become more scarce and the everyday operations within the internal logistics are affected. Therefore, the processes within the warehouse department were measured by performing a frequency study, registering how time was distributed between the different work tasks. In order to fully understand the processes, interviews were held with management and personnel. After analyzing previous research that could help guide to ease the impositions and analyzing the result of the frequency study, wastes were identified and new ways of working were suggested. The result firstly presents how to organize internal logistics operations in chain store warehouses to gain competitive advantage. Secondly, keeping in mind that firefighting stressed situations usually is not sustainable and only eases loads temporarily, long-term sustainability and ethics were addressed. Concluding that in order to optimize internal logistics operations in chain store warehouses and gain a long-term competitive advantage in a sustainable way, are achieved through standardizing work tasks, ensuring commitment of management and personnel and applying systems to serve the people and processes. Lastly it is advised to keep in mind the impact a company have on its surroundings and the importance of engaging in sustainable and ethically friendly operations, in order to achieve long-term competitive logistics.