The Lean Advantage: Transforming E-Commerce Warehouse Operations for Competitive Success

Mohammad Anwar Rahman and E. Daniel Kirby ()
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Mohammad Anwar Rahman: Faculty of Manufacturing and Construction Management, Central Connecticut State University, New Britain, CT 06050, USA
E. Daniel Kirby: Faculty of Manufacturing and Construction Management, Central Connecticut State University, New Britain, CT 06050, USA

Logistics, 2024, vol. 8, issue 4, 1-17

Abstract: This study investigates the transformation of e-commerce warehouse operations by integrating Lean Six Sigma tools to enhance efficiency and sustainability. Beginning with Value Stream Mapping (VSM) to identify inefficiencies, followed by a Hoshin Kanri plan to align improvement initiatives with strategic objectives, the study implemented measures such as pallet pooling, process standardization, automation in inspection and picking, layout optimization, and Kanban systems for continuous improvement. A case study of a local e-commerce warehouse specializing in medical devices and healthcare products identified 29 activities across receiving, inspection, storing, picking, packing, and shipping, highlighting inefficiencies addressed through Lean-driven initiatives. These efforts resulted in a 23% reduction in total lead time, doubled value-added time, and significant improvements in inspection, picking, packing, and automation, reducing delays, lowering costs, and enhancing workflow. The study fills a gap in the literature by integrating multiple Lean tools and utilizing the Critical to Quality (CTQ) matrix to ensure sustainable improvements in e-commerce warehousing, emphasizing the strategic value of Lean Six Sigma in creating efficient, customer-focused operations.

Keywords: Lean Six Sigma; Value Stream Mapping; Critical to Quality; process standardization (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2024
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