Increasing warehouse efficiency by digitalizing warehouse processes using mobile devices

Abstract

Title:
Increasing warehouse efficiency by digitalizing warehouse
processes using mobile devices – A design study in the steel
industry
Author:
Sören Castor
Supervisor:
Joakim Kembro, Department of Industrial Management and
Logistics, Faculty of Engineering, Lund University
Problem description:
Heine + Beisswenger does not or only partly document material
movement in parts of their warehouse which causes a lack of
efficiency due to increased search times. Therefore, the case
company is interested in implementing digitalized processes to
increase warehouse efficiency.
Purpose:
The purpose of the master thesis is to investigate opportunities to
increase warehouse efficiency by digitalizing warehouse
processes using mobile devices.
Research objectives:
RO1: Describe the current process of the material and the
information flow between the incoming goods, the storage as well
as the retrieval of the goods.
RO2: Identify the performance of the current material and
information flow between the incoming goods, the storage as well
as the retrieval of the goods.
RO3: Determine the parts of the material and information flow
between the incoming goods, the storage as well as the retrieval of
the goods that can be improved through digitalization by using
mobile devices.
RO4: Propose digitalized solutions which improve the efficiency of
the material and the information flow between the incoming
goods, the storage as well as the retrieval of the goods.
Methodology:
The methodology to fulfill the purpose of the thesis has been
design science research, accomplished in the following six steps:
(1) Identify the problem, (2) frame it, (3) develop a conceptual
framework to solve it, (4) theorize the findings, (5) validate them
and (6) communicate the gained knowledge.
Conclusion/Findings:
The thesis provides multiple design propositions about
implementing handheld scanners as well as mobile printers into
the current warehouse processes which leads to efficiency
increases. It also provides a financial overview that gives a hint
about potential savings that could be realized when following the
design propositions.
Keywords:
Warehousing, Digitalization, Efficiency, Mobile Devices, Design
Science Research

Popular Abstract

As the most significant technological trend
faced globally, digitalization will affect and
is already affecting not only individuals
but entire nations as well as businesses
across the globe. Adopting digital
technologies in organizations or in the
operation environment causes changes
and challenges for companies. The need
for digital transformation was recognized
by industrialists as well as governments
worldwide after the publication of the
term “Industrie 4.0” back in 2011. Since
then, Industry 4.0 is progressing
exponentially and is transforming the
manufacturing as well as the connected
supply chain industry.
However, a lot of companies still lack
behind. Especially small and medium-sized
enterprises (SMEs) need to catch up and
are facing major challenges implementing
digitalization in comparison to big
enterprises. The fact that SMEs represent
99% of the businesses in the EU according
to the European Commission, shows how
important it is that micro, small and
medium-sized enterprises catch up on
digitalization in order to achieve
competitiveness and to strengthen the
economic sustainability.
As the case company of the thesis is part of
the companies that lack behind in
digitalization and therefore their
warehouse processes lack in efficiency, the
thesis investigated whether and how
handheld scanners and mobile printers can
increase their warehouse efficiency. The
difficulty of the thesis was on gathering all
relevant data about the warehouse
processes and to analyze that data in order
to find out whether mobile devices can
achieve efficiency increases. After
comparing the current processes with
adding handheld scanner and mobile
printer to those processes, it was
investigated that the use of those devices
will increase the efficiency.
By designing propositions for the case
company on how handheld scanners and
mobile printers can be implemented within
their current processes, the thesis has
proposed possibilities to increase
warehouse efficiency and has shown how
companies that lack behind in digitalization
can catch up. Furthermore, the thesis has
investigated the effect those design
propositions would have on the efficiency
as well as the financial impact such an
investment would have for companies. As
they were very positive, the thesis together
with the developed frameworks can be
used as a guideline for other companies
approaching digitalization within similar
warehouse processes.
As digitalization is the future for many
companies, it remains exciting to see how
companies especially SMEs deal with their
change to approach digitalization. The first
step for that is to identify the need to
change, which the case company has done.
By implementing the design propositions,
they are on a good way to digitalize their
warehouse processes which they can
further improve.

This popular scientific article is derived from the
master thesis: Increasing warehouse efficiency by
digitalizing warehouse processes using mobile
devices at a German steel company, written By
Søren Castor (June 2024).

• author: Castor, Sören
• supervisor: Joakim Kembro
• organization: Production Management; Engineering Logistics
• course: MTTM02 20241
• year: 2024
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Warehousing, Digitalization, Efficiency, Mobile Devices, Design Science Research
• other publication id: 6029
• language: English
• id: 9170346
• date added to LUP: 2024-08-28 15:47:29
• date last changed: 2024-08-28 15:47:29