CONCEPTUAL FRAMEWORK OF THE INTERDEPENDENCE OF INCREASING COMPANY VALUE-ADDED AND REDUCING ‘WASTE’ IN WAREHOUSE OPERATIONS
Keywords:warehouse operations, ‘Lean’ system in warehouse operations, ‘waste’ activities, the value-added of the company
For a successful development of business activities within companies, material flow management application in various shapes and forms is crucial. To reduce transportation costs and material resource acquisition costs, companies must often acquire their own warehouses in the supply chain. The compatibility and flexibility of an entire production cycle depends on the performance of a company’s warehouse, so the development of warehouse operations becomes one of the main business objectives. Optimal management of warehouse operations ensures the development of a company's operational efficiency, fulfilment of customer expectations and, as a result, increasing the company value-added. The application of the ‘Lean’ system in warehouse operations accelerates business processes, reduces errors, identifies, and eliminates non-value-adding processes, and reduces operating costs. The objective of the research paper is to determine how the ‘Lean’ system can be applied to optimize the organization of warehouse operations, i.e. to identify the theoretical interdependence of reducing ‘waste’ activities in warehouse operations and increasing company value-added. Research object - optimization of warehouse operations by reducing ‘waste’ activities. Research methods - comparative analysis of literature; method of generalization. Literature analysis demonstrated that the use of Lean measures in warehouse operations eliminates elements of non-value-adding activities, improves teamwork, reduces costs, and increases company value-added which leads to greater benefits for consumers who receive higher quality services. The direct link between reducing "waste" activities in the warehouse and the distribution function indicates that internal resources can increase the value-added of the company. The model of the impact "waste" reducing activities during the various stages of warehouse operations has on generating company value-added can be used as a means to assess the interdependence of organization of warehouse operations in different countries, regions or enterprises.