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Reconfiguring Warehouse Operations at CEPA to Improve Performance: A Design Science Study for Operational Efficiency

Svensson, Filip LU and Mohlin, Erik (2025) MTTM05 20251
Production Management
Engineering Logistics
Abstract
Reconfiguring Warehouse Operations at CEPA to Improve Performance:A Design Science Study for Operational Efficiency
Popular Abstract
From Chaos to Control: How CEPA's Warehouse Got Back on Track
It started with confusion and ended in clarity. When shelves overflowed and pallets couldn’t be found, a struggling warehouse got the overhaul it needed. The result? A tailored solution saving both time and headaches.
Imagine having to run through an overfilled bedroom looking for socks—only to find them stored in the garage. That was daily life at CEPA Steeltech AB, a Swedish original equipment manufacturer. Their Finished Goods Warehouse had turned into a bottleneck instead of a bridge between production and delivery. Poor traceability, manual searches, and space shortages created a chaotic environment for staff and, to some extent, customers.
At the core of the problem was... (More)
From Chaos to Control: How CEPA's Warehouse Got Back on Track
It started with confusion and ended in clarity. When shelves overflowed and pallets couldn’t be found, a struggling warehouse got the overhaul it needed. The result? A tailored solution saving both time and headaches.
Imagine having to run through an overfilled bedroom looking for socks—only to find them stored in the garage. That was daily life at CEPA Steeltech AB, a Swedish original equipment manufacturer. Their Finished Goods Warehouse had turned into a bottleneck instead of a bridge between production and delivery. Poor traceability, manual searches, and space shortages created a chaotic environment for staff and, to some extent, customers.
At the core of the problem was a hard limit: CEPA’s warehouse was full. With utilization pushing past 90%, operational efficiency was suffering. Overflowing pallets blocked aisles, temporary storage areas became permanent, and workers had to double-handle goods just to make space. It was clear that more than temporary fixes were needed—a smarter design had to free up capacity within the same four walls.
Multiple issues contributed to the inefficiency. Workers spent too much time searching for pallets, partly due to manual errors in the warehouse system. The overloaded space left no room for incoming goods, and pressure from urgent orders forced staff to bypass procedures just to keep up.
To reverse the trend, warehouse processes were mapped and restructured. A major change involved creating dedicated zones based on customer types, reducing complexity and making picking faster. Layout and stickering were improved to cut down transport time and search efforts. The cross-docking function was polished, allowing products to move straight from production to shipping without detouring through storage. To boost storage capacity without expanding the building, mobile racks were proposed as a flexible solution.
The impact? The reconfigured layout showed potential to cut warehouse handling time by over 20%. Bottlenecks were eliminated, and a more structured flow now supports faster, more predictable operations. A new set of performance metrics was introduced to guide continued improvement.
Surprisingly, most improvements required no big investments or advanced automation. Instead, gains came from optimizing and following policy, clarifying responsibilities, and restoring order to a cluttered system. As the mantra goes, slow is smooth, smooth is fast..
For CEPA, this means faster deliveries, fewer errors, and more satisfied customers. For workers, less frustration and more control. And for the logistics team, a stronger foundation to grow from.
This popular scientific article is derived from the master thesis Reconfiguring Warehouse Operations at CEPA to Improve Performance: A Design Science Study for Operational Efficiency, written by Erik Mohlin and Filip Svensson (2025). (Less)
Please use this url to cite or link to this publication:
author
Svensson, Filip LU and Mohlin, Erik
supervisor
organization
course
MTTM05 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Warehouse Reconfiguration, Finished Goods Warehouse, Operational Efficiency, Design Science Research, Inventory Visibility, Warehouse Configuration, Material Handling, OEM Logistics, Storage Optimization, Warehouse Layout, Traceability
other publication id
6048
language
English
id
9203974
date added to LUP
2025-06-23 14:33:16
date last changed
2025-06-23 14:33:16
@misc{9203974,
  abstract     = {{Reconfiguring Warehouse Operations at CEPA to Improve Performance:A Design Science Study for Operational Efficiency}},
  author       = {{Svensson, Filip and Mohlin, Erik}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Reconfiguring Warehouse Operations at CEPA to Improve Performance: A Design Science Study for Operational Efficiency}},
  year         = {{2025}},
}