IMPROVING STORAGE PROCESSES: CASE X OF MANUFACTURING PLANT

Abstract

During the questionnaire survey of the warehouse employees, the problem areas of the storage processes of the company "X" were identified. Almost half of the respondents identify the lack of storage space as the biggest storage problem in the company. It was also found that the warehouse management system in operation in the warehouse required an upgrade or new warehouse management systems. Analyzing the data obtained during the interviews, both respondents agree that the company's warehousing processes have shortcomings, but the construction of a new warehouse and the implementation of a new warehouse management system would make the warehousing process more efficient. Company X has built a new warehouse to address a key issue that has had a significant impact on the efficiency of warehousing processes. The company stored a large part of its goods for a long time in external and leased warehouses, which amounted to high costs, about 88.5 thousand. euros each month. After the construction of the warehouse, the total number of pallet places in the company increased to 30,000 pallet places. As a result, the company will save part of the costs, increase the generated profit of the warehouse - this will help to minimize the payback period of the new project. The cost of building a new warehouse is a trade secret for the company. UAB "X" company warehousing process improvement solutions offer - warehouse management system implementation (including program upgrade in the old warehouse and installation of a new warehouse management system in the new warehouse and the necessary equipment) and warehouse work organization training and refresher courses for employees. Costs of the proposed measures - 335.1 thousand. The company's financial situation allows this amount to be invested.