Configuring the storage and return flow processes of reusable packaging for battery cells: A design science study of a global battery cell manufacturer

Abstract: Title: Configuring the storage and return flow processes of reusable packaging for battery cells: A design science study of a global battery cell manufacturer Author: Linnea Sjöberg Supervisor: Joakim Kembro, Division of Engineering Logistics, Faculty of Engineering, Lund University. Problem Description: As reusable packaging is becoming increasingly popular, the already existing warehouses need to adapt their configuration, so they are able to receive the packaging in an efficient manner. Company Alpha is currently facing the problem of incorporating the reverse flow of reusable packaging, and there is currently no concept for the return flow of empty cleaned packaging and where they should be stored internally. Purpose: The purpose of this thesis is to design the return flow processes of reusable packaging from a third-party cleaning facility to Company Alpha and to define how and where the cleaned packaging should be stored once arrived at Company Alpha. Objectives: Three research objectives were formulated to fulfil the purpose. The first one was to “Describe the current layout of the outbound area at Company Alpha and identify the already existing processes in this area”. The second one was to “Identify what processes that are of interest in the return flow of the packaging, and the contextual factors that may impact the configuration of the storage area”. The last one was to “design the return flow processes when the packaging has arrived from the Third-Party Cleaning Facility at Company Alpha and the storage of the returned packaging”. Methodology: The thesis follows a design science research strategy as it aims to solve a practical problem. An analytical framework was created from a literature review containing theories within warehouse configuration, warehouse contextual factors and process mapping. The analytical framework was tested by conducting a single case study at Company Alpha and their return flow of reusable packaging. Data was collected through interviews, observations, and secondary company data. The data was analysed with the help of the analytical framework, and the use of process maps helped to analyse the flows. Findings: 12 propositions were found, which were used together to formulate the recommendations for the return flow processes, receive and put-away and storage. Additionally, the location for storing the empty packaging and how this area should be configured considering the contextual factors were designed and recommended to the company. The company is struggling with having enough space and while the recommendations provided will help, the company needs to investigate further solutions. Conclusion: The analytical framework created in this thesis was validated by applying it to Company Alpha, and the proposals it generated were applicable at the company, and they provided value. The process mapping facilitated the analysis of the flows and processes, and the analysis of the contextual factors moulded the configuration so the reverse flow could be incorporated without disturbing the already existing processes at Company Alpha. The propositions helped to configure the storage for the reusable bins and defined the return flow processes. Thus, the purpose of the thesis has been fulfilled.