Enhancing the Efficiency of Online Warehouse Operations Case Study: XXX Co., Ltd.

Abstract

This study had two primary objectives: To analyze the stock storage patterns at XXX Company Limited in the E-Commerce sector and to reduce the amount of time warehouse staff spend searching for items, while also addressing the issue of incorrect stock picking. The research involved a sample group of five managers, supervisors, or staff members who are directly involved in the warehouse operations of the case study company. The research design included a targeted survey of this sample group, complemented by focus group discussions and data collection for comparative analysis.

Research results: 1) The disorganized and uncategorized arrangement of goods in the warehouse negatively impacted the efficiency of online warehouse management at XXX Company Limited. 2) Several issues were identified as contributing to this inefficiency, such as There were no clear work standards in place, The presence of numerous SKUs led to confusion, A lack of processes for verifying accuracy resulted in operational delays, and Employees often lacked the necessary skills and understanding of their tasks, which was further compounded by heavy workloads and frequent staff turnover, 3) The implementation of an ABC Classification System for product grouping helped organize the storage areas into three categories include: Zone A: Book products (89%), Zone B: Office equipment products (7%), and Zone C: General products (4%), and 4) The efficiency of XXX Company Limited’s online warehouse management improved significantly. The total time lost due to inefficiency was reduced 132 minutes per time or 60.27%. Overall operational efficiency improved by 55.50%.

Keyword: ABC Classification, Efficiency, E-Commerce, Warehouse management