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Developing a Warehouse Layout Design Framework for Fast Growing Companies - A Case Study at Oatly AB

Geuken, Felix LU and Jäger, Louise LU (2015) MTT820 20151
Engineering Logistics
Abstract
Problem description: The importance of the warehouse in the supply chain network is increasing and the overall efficiency of a supply chain is to a large extent determined in the warehouses. It is acknowledged that warehouse design is a complex task mainly due to the many relationships to other functions within the company. The complexity is further enhanced by many activities and parallel processes performed within the warehouse. As a consequence, there are many aspects needed to be considered when developing a warehouse layout. Warehouses are generally expensive to change regarding facility, equipment and racks. Companies in volatile and fast moving markets should therefore consider the future demand and flexibility to changes in future... (More)
Problem description: The importance of the warehouse in the supply chain network is increasing and the overall efficiency of a supply chain is to a large extent determined in the warehouses. It is acknowledged that warehouse design is a complex task mainly due to the many relationships to other functions within the company. The complexity is further enhanced by many activities and parallel processes performed within the warehouse. As a consequence, there are many aspects needed to be considered when developing a warehouse layout. Warehouses are generally expensive to change regarding facility, equipment and racks. Companies in volatile and fast moving markets should therefore consider the future demand and flexibility to changes in future demand in the warehouse layout design process.

Purpose: The purpose of the study is to develop an aligned warehouse design solution for current and future operations considering a company ́s growth expectation.

Research questions: What aspects should be considered when designing a warehouse layout to ensure that it is aligned with the company ́s growth expectations? How can a warehouse layout design be generated that ensures flexibility and ability to handle future warehouse operations?

Methodology: To find a warehouse solution that is aligned with the current and future operations a warehouse the answer to the research questions was investigated in current research on warehouse layout design. The aspects found which were considered important for fast growing companies were thereafter put in a framework, the warehouse layout design framework. The framework has its basic structure from current literature on warehouse layout design. The framework has been applied through a single case study at Oatly AB. Oatly AB is suitable for this study as the company has experienced considerable growth during the last few years. Based on the case study, further refinements have been made to the framework.

Conclusion: Aspects that have been found to be especially important for the development of the warehouse layout are growth expectations, the current layout and flexibility for a volatile future demand. The objective of the warehouse, primarily the focus on product portfolio strategy, was also found to be an important aspect for the layout design. The warehouse layout design framework puts additional focus on the growth of the company and as a consequence, forecasting of the expected in- and outbound warehouse material flows. Therefore, the framework is useful for companies facing unsure growth. The main benefit of the framework is the sequence of steps that guide the user towards an aligned warehouse layout. The steps does not allow for any aspects being left out in the analysis. Additional case studies should be made to find other aspects being of high concern for other types of warehouses in different industries. (Less)
Popular Abstract (Swedish)
Problembeskrivning: Stora delar av effektiviteten i en logistikkedja bestäms i lagren varför dess betydelse och ökar. Lager är komplexa att designa primärt på grund av dess komplicerade relation till andra funktioner inom företag. Komplexiteten ökar ytterligare genom mängden aktiviteter och parallella processer som pågår i lagret. Som följd finns det många aspekter som måste tas hänsyn till när en lagerlayout ska designas. Eftersom lagerlayouter generellt är dyra att ändra gällande fastigheter, inventarier och hyllsystem bör företag som befinner sig i föränderliga och osäkra marknader överväga den framtida efterfrågan noggrant. Genom noggrant övervägande och flexibilitet i lagerlayouten kan företag bedriva kostnadseffektiv lagerhantering i... (More)
Problembeskrivning: Stora delar av effektiviteten i en logistikkedja bestäms i lagren varför dess betydelse och ökar. Lager är komplexa att designa primärt på grund av dess komplicerade relation till andra funktioner inom företag. Komplexiteten ökar ytterligare genom mängden aktiviteter och parallella processer som pågår i lagret. Som följd finns det många aspekter som måste tas hänsyn till när en lagerlayout ska designas. Eftersom lagerlayouter generellt är dyra att ändra gällande fastigheter, inventarier och hyllsystem bör företag som befinner sig i föränderliga och osäkra marknader överväga den framtida efterfrågan noggrant. Genom noggrant övervägande och flexibilitet i lagerlayouten kan företag bedriva kostnadseffektiv lagerhantering i dessa marknader.

Syfte: Syftet med studien är att utveckla en lagerlayout som är i linje med ett företags nuvarande och framtida lagerverksamhet med hänsyn till företagets förväntade tillväxt.

Forskningsfrågor: Vilka aspekter bör övervägas vid design av lagerlayout för att säkerställa att designen är i linje med företagets förväntade tillväxt? Hur genereras en lagerlayout som säkerställer flexibilitet och förmåga att tillgodose framtida behov för lagerverksamheten?

Metod: För att designa en lagerlayout som är i linje med den nuvarande och framtida lagerverksamheten har ett ramverk för design av lagerlayout utvecklats. Ramverket har sin bas i nuvarande litteratur om lagerdesign och aspekter som påverkar växande företag. Ramverket säkerställer att inga aspekter blir förbisedda. Ramverket har blivit applicerat genom en casestudie på Oatly AB. Oatly AB är lämpat för studien då företaget under de senaste åren har upplevt stark tillväxt. Baserat på casestudien har ytterligare ändringar gjorts på ramverket.

Slutsats: Aspekter som har identifierats som viktiga för utvecklandet av lagerlayouter är den förväntade tillväxten, den nuvarande lagerlayouten och flexibilitet för framtida skillnader i efterfrågan i lagerlayouten. Utöver dessa aspekter har lagrets övergripande mål, där framförallt produktstrategi ingår, en stor roll i utformningen av lagrets layout. Ramverket för design av lagerlayout lägger stor vikt vid företagets tillväxt och genom det, prognoser för det förväntade in- och utflödet till och från lagret. Ramverket är därför är användbart för företag som upplever osäker framtida tillväxt. Den främsta fördelen med ramverket är ordningen i vilka stegen hjälper användaren mot en lagerlayout som är i linje med företagets verksamhet. Bredden i ramverket låter inte några aspekter bli förbisedda. För att öka användbarheten i ramverket bör ytterligare studier genomföras för att hitta aspekter som kan vara av stor vikt för andra lagertyper i andra branscher. (Less)
Please use this url to cite or link to this publication:
author
Geuken, Felix LU and Jäger, Louise LU
supervisor
organization
alternative title
Utveckling av ramverk för design av lagerlayout för snabbväxande företag - En fallstudie på Oatly AB
course
MTT820 20151
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Warehouse design, warehouse layout design, layout, flexibility, growth expectations, warehousing
report number
5789
language
English
id
7370739
date added to LUP
2015-06-22 13:08:35
date last changed
2015-06-22 13:08:35
@misc{7370739,
  abstract     = {Problem description: The importance of the warehouse in the supply chain network is increasing and the overall efficiency of a supply chain is to a large extent determined in the warehouses. It is acknowledged that warehouse design is a complex task mainly due to the many relationships to other functions within the company. The complexity is further enhanced by many activities and parallel processes performed within the warehouse. As a consequence, there are many aspects needed to be considered when developing a warehouse layout. Warehouses are generally expensive to change regarding facility, equipment and racks. Companies in volatile and fast moving markets should therefore consider the future demand and flexibility to changes in future demand in the warehouse layout design process.

Purpose: The purpose of the study is to develop an aligned warehouse design solution for current and future operations considering a company ́s growth expectation.

Research questions: What aspects should be considered when designing a warehouse layout to ensure that it is aligned with the company ́s growth expectations? How can a warehouse layout design be generated that ensures flexibility and ability to handle future warehouse operations?

Methodology: To find a warehouse solution that is aligned with the current and future operations a warehouse the answer to the research questions was investigated in current research on warehouse layout design. The aspects found which were considered important for fast growing companies were thereafter put in a framework, the warehouse layout design framework. The framework has its basic structure from current literature on warehouse layout design. The framework has been applied through a single case study at Oatly AB. Oatly AB is suitable for this study as the company has experienced considerable growth during the last few years. Based on the case study, further refinements have been made to the framework.

Conclusion: Aspects that have been found to be especially important for the development of the warehouse layout are growth expectations, the current layout and flexibility for a volatile future demand. The objective of the warehouse, primarily the focus on product portfolio strategy, was also found to be an important aspect for the layout design. The warehouse layout design framework puts additional focus on the growth of the company and as a consequence, forecasting of the expected in- and outbound warehouse material flows. Therefore, the framework is useful for companies facing unsure growth. The main benefit of the framework is the sequence of steps that guide the user towards an aligned warehouse layout. The steps does not allow for any aspects being left out in the analysis. Additional case studies should be made to find other aspects being of high concern for other types of warehouses in different industries.},
  author       = {Geuken, Felix and Jäger, Louise},
  keyword      = {Warehouse design,warehouse layout design,layout,flexibility,growth expectations,warehousing},
  language     = {eng},
  note         = {Student Paper},
  title        = {Developing a Warehouse Layout Design Framework for Fast Growing Companies - A Case Study at Oatly AB},
  year         = {2015},
}