Increasing the service level in an industrial supplier company using the Winters Forecasting Method, Lean Warehouse and BPM

Abstract

Currently, there is a considerable amount of commercial SMEs presenting economic losses due to stock breaks and incorrect stock management, this is caused by inefficient supply methods, the lack of order within their warehouses and not standardization of internal processes in warehouse. In this context, the additional costs of not having the products available is the most critical scenario for distribution companies whose core business is to offer the highest level of customer service. The contribution of this article is based on designing a quantitative replenishment method and redesigning the approach of the internal processes developed by the staff within the warehouses, as well as designing and implementing an operational tool that allows to properly organize the warehouses. To address this challenge, this research aims to eliminate problems within a company where its service level is 83.47%, below the investigated technical gap of 91% regionally in Latin America and 95% internationally. The proposed solutions are based on the improvement of the quantitative indicators proposed through tools such as demand forecasting with the Winters Method, the application of the 5S operational tool and standardization of processes with the BPM tool, in addition, the recoding of products based on the GS1 international coding guide is proposed.