Work process improvementsin a distribution centerfor a case company

Abstract: In an increasingly competitive market, it is important for companies with distribution centers to have efficient processes limiting non-value adding time as much as possible while still being able to deliver what the customer expects. The purpose of the thesis was to investigate the operating processes at the distribution center at Volvo – Eskilstuna. It services the Scandinavian market with multiple departures per day, supplying directly to end customers and retailers. The goal was to increase the efficiency of the distribution center and increase consolidation of multiple parts ordered by the same customer. Currently, multiple packages get delivered to the same customer who has ordered parts the same day. While investigating this inefficiency, we monitored orders through it registering in the system, assignment to picking lists to be picked by operators, packaging and sorting. There were constraints associated with the layout, IT system and traffic safety laws without compromising on delivery efficiency, quality, implementation costs, and organizational regulations. Observations were carried out on the job floor, interviews were conducted with the management or better: with managers / management team, and an independent analysis was conducted of the historical data collected from the warehouse management system. The main results suggest rearranging the inventory according to consumption frequency classification (Paretto principle). Additional results suggest implementing slotting and postpone packaging to consolidate higher order percentage. Multiple strategies have been put forth which need trials to test the implications.