Restructuring picking and restocking processes on a hypermarket

Abstract

The purpose of this paper is to identify challenges and opportunities for exploring Lean approaches in managing instore logistics processes of a hypermarket, wherein data collection made to quantify the state of the system, methods, and instruments will be applied to improve picking and restocking processes between the two main stock areas, the store and the warehouse. This article reports on a case study work, comprising direct observation, and analysis of the data collected, which was developed in three main phases: identification and characterization of problems, improvements in management of stock and restocking information, and finally improvements in the picking and restoking processes and teams. After analysing the hypermarket, some problems were found such as a high percentage of non-productive time in restocking, a daily average of 132 products to be restocked, a lack of standardization of tasks in the warehouse, and outdated restocking management system. Therefore, there will be some proposals to change the restocking management system, the picking and restocking work method and the warehouse layout, which makes it possible to decrease stock breaks in the store by 17%, the number of employees dedicated to these processes from 14 to 11, and finally, to reduce 2 daily hours of non-adding value time. This work makes an innovative contribution to fulfil a lack of publications dedicated to hyper-market inbound logistics between the warehouse and the store. Thus, it reveals the significant importance of focusing on instore logistics to the point of sale, concerning the efficiency, the lean production, and social benefits to the retail hypermarket, from the reception of products in the hypermarket warehouse until they are placed on the store shelves.