The Logistics Reengineering Process in a Warehouse/Order Fulfillment System: A Case Study

  • Alberto Regattieri
  • Riccardo Manzini
  • Mauro Gamberi
Chapter

Abstract

The logistics reengineering process (LRP) is a useful industrial engineering and management technique for achieving significant improvements in operational efficiencies for products quality services in a warehouse/order fulfillment system. In warehousing systems the picking process usually has a significant impact on logistic performance, customer service levels and costs, hence improvement activities are attractive and important. This chapter presents the application of an LRP process in an Italian distribution company, which is a distributor of home furnishings and health care products. In particular, the proposed optimization process is focused on the Order Fulfillment Process (OFP). The main aim of this chapter is to present a methodology to make an effective analysis of an OFP system and, mainly, to present the results, opportunities and criticalities arising from its application. The benefits are significant both in terms of traveled distance savings and manpower usage reduction. These results demonstrate that “soft” reengineering improvements can significantly affect processes, procedures, rules and strategies, can reduce logistics costs and improve customer service levels without introducing “hard” improvements and system modifications, e.g. new equipment, personnel, and machinery.

Keywords

Shipping Dispatch Mast Dock Caron 

References

  1. Bartholdi J, Hackman ST (2003) Warehouse & distribution science. http://www2.isye.gatech.edu/people/faculty/John_Bartholdi/wh/book/editions/history.html. Accessed Jan 2010
  2. Bartholdi JJ III, Hackman ST (2010) Warehouse & Distribution Science: release 0.92, The Supply Chain and Logistics Institute, School of Industrial and Systems Engineering, Georgia Institute of Technology, AtlantaGoogle Scholar
  3. Bindi F, Manzini R, Pareschi A, Regattieri A (2009) Similarity-based storage allocation rules in an order picking system: an application to the food service industry. Int J Logist Res Appl 12(4):233–247, 1367–5567CrossRefGoogle Scholar
  4. Caron F, Marchet G, Perego A (2000) Optimal layput in low-level picker to part systems. Int J Prod Res 38(1):101–117, 0020–7543CrossRefMATHGoogle Scholar
  5. Chien-wen S (2007) Effect of business process reengineering on logistics performance: a case study of Taiwan, pp 2887–2890. In: Proceedings of the IEEE International Conference on Automation and Logistics, Jinan, Aug 2007Google Scholar
  6. Croom S, Romano P, Giannakis M (2000) Supply chain management: an analytical framework for critical literature review. Eur J Purch Supply Manag 6(1):67–83, 1478–4092CrossRefGoogle Scholar
  7. De Koster R, Le-Duc T, Roodbergen KJ (2007) Design and control of warehouse order picking: a literature review. Eur J Oper Res 182:481–501CrossRefMATHGoogle Scholar
  8. Grover Kettinger W (2000) Process think: winning perspectives for business change in the information age, 1–878-28968–3. Idea Group, HarrisburgCrossRefGoogle Scholar
  9. Kleiner A (2000) Revisiting reengineering. Strategy Bus 20:27–31, 1099–0836Google Scholar
  10. Kritchanchai D, MacCarthy BL (1999) Responsiveness of the order fulfillment process. Int J Oper Prod Manag 19(8):812–883, 0144–3577CrossRefGoogle Scholar
  11. Manzini R, Gamberi M, Regattieri A (2005) Design and control of a flexible order-picking system (FOPS). J Manuf Technol Manag 16(1):18–35, 1741–038XCrossRefGoogle Scholar
  12. Manzini R, Gamberi M, Persona A, Regattieri A (2007) Design of a class based storage picker to product order picking system. Int J Adv Manuf Technol 32:811–821, 0268–3768CrossRefGoogle Scholar
  13. Ozcelik Y (2010) Do business process reengineering projects payoff? Evidence from the United States. Int J Proj Manag 28(1):7–13, 0263–7863CrossRefGoogle Scholar
  14. Park BC, Lee MK (2007) Closest open location rule under stochastic demand. Int J Prod Res 45(7):1695–1705CrossRefMATHGoogle Scholar
  15. Piramuthu S (2005) Knowledge-based framework for automated dynamic supply chain configuration. Eur J Oper Res 165(1):219–230, 0377–2217CrossRefMATHMathSciNetGoogle Scholar
  16. Turner TJ, Mendibil K, Bititci US, Daisley P, Breen THJ (2002) Improving the reliability of the customer order fulfillment process in a product identification company. Int J Prod Econ 78(1):99–107, 0925–5273CrossRefGoogle Scholar
  17. Waller MA, Woolsey D, Seaker R (1995) Reengineering order fulfillment. Int J Logist Manag 6(2):1–10, 0957–4093CrossRefGoogle Scholar
  18. Yu M, de Koster R (2009) The impact of order batching and picking area zoning on order picking system performance. Eur J Oper Res 198(2):480–490CrossRefMATHGoogle Scholar
  19. Zhang L, Lee C, Xu Q (2010) Towards product customization: an integrated order fulfillment system. Comput Ind 61(3):213–222CrossRefGoogle Scholar

Copyright information

© Springer-Verlag London Limited 2012

Authors and Affiliations

  • Alberto Regattieri
    • 1
  • Riccardo Manzini
    • 1
  • Mauro Gamberi
    • 2
  1. 1.DIEM—Department of Industrial and Mechanical PlantsBologna UniversityBolognaItaly
  2. 2.Department of Management and EngineeringDTG UniversityPadovaItaly

Personalised recommendations