Article citation information:
Łukasik, Z., Kuśmińska-Fijałkowska, A., Olszańska-Wesoły, S. Strategy of improvement of the logistical processes in an enterprise. Scientific Journal of Silesian University of Technology. Series Transport. 2024, 125, 145-166. ISSN: 0209-3324. DOI: https://doi.org/10.20858/sjsutst.2024.125.10.
Zbigniew
ŁUKASIK[1], Aldona KUŚMIŃSKA-FIJAŁKOWSKA[2],
Sylwia OLSZAŃSKA-WESOŁY[3]
STRATEGY
OF IMPROVEMENT OF THE LOGISTICAL PROCESSES IN AN ENTERPRISE
Summary. The e-commerce industry
is growing in strength year by year due to the growth in the number of
consumers using this solution. The market of e-commerce industry allows
reaching to a broader group of customers and reduction of costs. In order to
gain a competitive advantage, any enterprise must work out an appropriate plan,
action strategy within the scope of distribution. A basis for decision about
strategy of distribution actions, or aiming at improvement of executed
processes, is a proper identification and analysis of external and internal
factors. Rationalization of conduct result in high quality of customer service
in the aspect of promptness of delivery, and also affects planning of actions
in the long term. The goal of the article was to analyze the logistics
distribution of the enterprise acting within the scope of e-commerce and to
propose a strategy to improve the execution of the process of completion. A
model has been developed and simulation has been made.
Keywords: distribution logistics, customer service,
quality of processes
1. INTRODUCTION
In the e-commerce industry, execution of large
number of orders and finding the best method to deliver ordered goods brings
many challenges [6, 7]. Above all, the main goal of any strategy is to gain a
competitive advantage. Proper strategy allows defining the direction of
development, working out the scope of long-term actions and also to adjust to
the changing environment through earlier preparation for expectations of
contractors [8, 19]. Therefore, while selecting appropriate actions, not only
internal factors must be considered because logistics distribution joins
participants of the whole supply chain [12]. Therefore, strategy must also
consider customer service, which is focused on a key element, that is, time of
delivery [9, 17, 21, 22, 27]. Therefore, enterprise in its actions should work
on minimization of duration of performance of all actions, that is, preparation
of an order, preparation of goods for shipment and hands over to supplier
[24-26]. If enterprise in its actions treats these factors as a priority, then
it can expect long-lasting success. What is more, the action strategy of the
enterprise is largely affected by the distribution channel, and correct
selection of a channel is a big challenge, and therefore, it should include
precise determination of width and vertical and horizontal organization [11,
15, 18]. While planning the best distribution channel, we should pay attention
to the degree of intensity that should be predicted in the event of the
specific enterprise. Usefulness of a channel based on the degree that tasks
must be done in the aspect of meeting expectations in a given segment of
purchasers must also be taken into account [10, 13, 14]. Because in the event
of usefulness, customers expect fast execution of an order, reliable delivery
and additional after-sales services [16, 20]. This article also includes an
analysis within the scope of processes of supply of goods and distribution
illustrated with an example of an enterprise from e-commerce industry and
strategy of improvement of executed processes in the aspect of completion route
in the warehouse of analyzed enterprise has been developed.
2. LOGISTICAL
MODELS IN LOGISTICS DISTRIBUTION
In the e-commerce industry, in the
event of functioning of an enterprise, proper management of assortment,
reserves, and transport of goods are key factors. While selection of a
logistical solution in an enterprise, we refer to the amount and type of
offered goods and goods that are physically in the warehouse. An extreme
approach is outsourcing of logistical tasks. The total opposite of outsourcing
is having only its own warehouse and offering only what can be found there.
However, the most popular model is an indirect model, in which an enterprise
has its own warehouse with only part of the offered assortment. Such a solution
allows offering a large number of goods in assortment [1]. If an enterprise
chooses logistical outsourcing, then an external company takes over some of the
processes connected with logistics, that is, controlling of deliveries,
execution of the orders, or monitoring of stock levels. In the event of
outsourcing within the scope of storage, the external enterprise makes infrastructure
necessary for storage of goods available and is responsible for execution of
the orders.
Most commonly used logistical models
for selection of an action strategy of an enterprise:
–
Own warehouse – a model, in
which an enterprise has its own warehouse space where goods are stored, which
gives the possibility of purchasing larger amount of goods, and also affects
better purchasing conditions (Fig. 1.). The application of this model has
impact on reduction of duration of execution of an order, which results in
increased satisfaction of the customers. The disadvantages of this solution are
costs generated by maintenance of the warehouse. Another cost of such method of
functioning is the necessity to purchase goods to this warehouse, which usually
requires a lot of financial resources and poses a risk that invested resources
may not be recovered because goods will deteriorate, past their sell-by date,
or there will be no demand for them [5].
Fig. 1. Own warehouse model
–
Dropshipping – a model of logistical outsourcing, in which the process of execution
of an order is transferred from an e-commerce enterprise to the supplier
(producer, wholesaler) (Fig. 2.). In this model, there are two elements, an
online shop and an enterprise executing at least completion, packing, and
shipment. This model can be applied by an enterprise that wants to increase
retail sale and deals with execution of the orders collected by an external
enterprise, that is, an online shop. Another method of functioning is
entrusting online shops with full sale process, by for example, producer of
goods and such shops take marketing actions by collecting orders. Two types of
dropshipping can be distinguished: pure dropshipping, that is, an action model,
in which an e-commerce enterprise has no own warehouse, and its activity is
entirely based on external subcontractors, or partial dropshipping, that is,
the case when an e-commerce enterprise has its own warehouse but commissions an
external enterprise to execute parts of orders, for example, assortment with
small demand being only supplement of the whole offer. Implementation of
dropshipping in an e-commerce enterprise requires developing appropriate
standards in the flow of information, packing, payments and returns. Communication
between warehouse systems and online shop system is important so that
information about the availability of goods in the warehouse was constantly
visible on the shop website [1].
Fig.
2. Dropshipping model
The
advantages of dropshipping include fast and easy change of an offer, which
results from shortages of previously purchased goods, located in the warehouse.
To change an offer, we only have to find a new supplier and change an offer of
goods on the website of an enterprise. Another advantage similar to change of
an offer is the possibility of testing the market, that is, creating new offer
on the e-commerce enterprise website, and depending on the interest of the customers, ordering from the supplier, or when
demand is low, it can be easily closed without the risk of leaving the
goods in the warehouse. Dropshipping also brings financial benefits because, to
start an activity in this model, an enterprise only needs a website allowing to
reach the customers and place orders.
Therefore, starting such an activity does not require practically initial
capital, which gives the possibility of development for small
enterprises. The disadvantages of dropshipping include becoming dependent on
the supplier of offered assortment, lower credibility of an enterprise because
e-commerce enterprise not having its own warehouse becomes the customer’ agent.
It has also impact on lower revenues caused by agreement conditions of the
supplier. In the event of dropshipping, the problem is also lack of detailed
information about product features from an e-commerce enterprise because there
is no physical contact [1].
–
Fulfillment - a model, in which an external company provides logistical services
for an enterprise running an online shop (Fig. 3.). In the event of adopting
the strategy of fulfillment, an e-commerce enterprise has no warehouse,
whereas, purchased goods are stored in the warehouse owned by an external
company, which also deals with goods service and further shipment. The
advantages of this solution include avoiding execution of any processes
connected with goods and often lower prices of shipments in the event of larger
orders. The disadvantages of this solution are the lack of full supervision of
goods, the lack of quality control of goods and high costs of such functioning
[3].
Fig. 3. Fulfillment model
–
Pseudo-Just-in-Time - a model that is very frequently applied by the enterprises in the
e-commerce industry. It includes agency of e-commerce enterprise between
customer and supplier (Fig. 4.). The shop places assortment on its website and
marks a delivery date. Only when a customer places an order on the website, an
enterprise places an order in a supplier. An advantage of this solution is the
possibility of offering a wide range of assortments with simultaneous minimal initial capital. Warehouse
storage space, which affects the reduction of costs of functioning, is also not required. The biggest problem in
such a solution is extended time of delivery to the customer and the
occurrence of various mistakes. A disadvantage is also the lack of accurate
information about stock level of a supplier, which can make time of execution
of an order extended, and as a consequence, decrease satisfaction of the
customers [3].
Fig. 4.
Pseudo-Just-in-Time model
–
Extended shopping – a model, in which e-commerce enterprise is fully serviced by external
enterprises within the scope of storage, settlements, return service (Fig. 5.).
E-commerce enterprise must only enlarge the customer base, suppliers do the rest.
The advantages of this solution are low market entry threshold, an option of
offering a wide range of assortments, high flexibility, fast execution of the
orders, no need for customer service. Whereas, the disadvantages include
shortages of goods and deliveries, as well as errors and no impact on the
quality of customer service [4].
–
Commodity brokering - a
model, in which even supplier has no all goods in its warehouse, whereas, in
the event that an e-commerce enterprise places an order, supplier must place an
order in its supplier (Fig. 6.). Such a way of functioning allows to order
larger batches of goods and results in lower prices. The advantages include
simplified logistics and unlimited assortment. The disadvantages include long
duration of execution of the orders and potential goods shortages that
e-commerce enterprise has no impact on [4].
Apart from getting goods in the
event of some models, e-commerce enterprises, to function efficiently, must
decide about acceptance of the forms of delivery of goods to the customer. The
most popular forms of delivery of ordered goods include: courier services and
own transport when goods require specialist transport, and costs are so high
that using own means of transport is cost-effective.
Fig. 5. Extended shopping model
Fig. 6. Commodity brokering model
3. AN ANALYSIS OF EXECUTION OF THE PROCESSES OF
DISTRIBUTION AND SUPPLY ILLUSTRATED WITH AN
EXAMPLE OF THE ANALYZED
E-COMMERCE ENTERPRISE
Analyzed trade and service
enterprise is functioning in the Sub-Carpathian region. Its assortment includes
metal articles and materials for steel processing. The offer also includes
acid-resistant fittings and stainless-steel elements used in yachting. The
company also provides services within the scope of production of steel
structures designed for storage and production halls. The area that this
enterprise is focused on is the domestic market. Analyzed enterprise does not
run stationary sale, and offers its assortment via websites, the one with a
general offer of all metal elements and the other oriented towards an offer of
stainless-steel products. External e-commerce platforms are also used for
selling, which helps to reach a broader group of customers. Due to the
specificity of offered goods, the target group that company’s offer is destined
for are both individual customers and service enterprises. The enterprise
offers their customers the possibility of issuing a certificate of conformity
of offered products with requirements and certificates containing information
about species of material, melt number and chemical composition of offered
goods. The logistical model that the enterprise is based on its own warehouse
model (Fig. 7.). The company has its own warehouse, in which goods are
collected, properly labelled, distributed in a way allowing their efficient
completion. In the warehouse, the process of completion and preparation of
ordered goods for shipment is also conducted. The last of the warehouse’s tasks
is to give a proper parcel to a previously hired courier. The company also has
an office responsible for marketing actions, that is, preparation and
improvement of trade offers and contact with customers and, if necessary,
after-sales service.
Fig. 7. Diagram of the flow of goods
in the analyzed e-commerce company
In the event of the analyzed
enterprise, the logistical model that this company is based on has many
advantages, but unfortunately also disadvantages. Own warehouse model enables
an
e-commerce enterprise to immediately execute
the orders while maintaining also supervision of the whole process and
high quality of an offered service. Having its own warehouse also allows
reducing the susceptibility to fluctuations of prices of goods on the markets.
Whereas, disadvantages include the necessity of having warehouse space, as well
as costs of maintenance of property, employment of people who will work in such
warehouse and supervise the process of goods acceptance and deal with proper
storage. Having its own warehouse is also connected with the difficulty of
having broad assortment because the broader offer, the more goods the
enterprise must purchase, which requires appropriate financial resources and
appropriate warehouse space for purchased goods.
The supply chain of the analyzed
enterprise consists of producers manufacturing goods that the company trades
in, as well as suppliers that the company purchases assortment from, trade
enterprise and end customers who purchase these goods. Goods in this chain are
given to the customers through the producer of goods and the suppliers and
shops. Remaining information about the needs of the customers (types of goods,
amount, etc.) and financial resources cover opposite distance (Fig. 8.). Goods are exchanged between suppliers, e-commerce
enterprise and customers through external transport companies. It is
similar with information and finances, external operators providing such
services are responsible for their flow. Reverse flow directions occur in the
event of returns and complaint – a customer sends to an enterprise previously
ordered product that turned out to be defective, or did not meet expectations,
then the enterprise investigates a complaint, or returns and provides
information concerning further actions and
if necessary, gives financial resources back. The form of functioning of an
enterprise is not limited only to local customers, but also allows
reaching the customers throughout the country at the right time.
Fig. 8. Diagram of the supply chain
in the analyzed company
In the analyzed enterprise, adopted
strategy and model of conducting activity assumes the sale of assortment stored
only in its own warehouse. An enterprise acting on such basis is responsible
for the majority of logistical tasks connected with running a company in the
e-commerce industry, and only transport is outsourced. It requires storing the
whole assortment in its own warehouse, which is connected with the need of
market analysis and selection of stock levels to the demand of the customers
for specific products. In an enterprise acting on such basis, supply logistics
is important, that is, connection between production and distribution of goods.
Supply logistics includes all decisions and actions connected with delivery of
goods, and it is also responsible for the flow of financial resources and
information connected with it.
The process of supplying the
warehouse of the analyzed enterprise with assortment starts from an analysis of
current stock levels. This action allows familiarizing with current state and
allows depicting sale in a specific period of time. Due to the specificity and
broad assortment, forecasting demand based on sale is important because using
only its own warehouse, an enterprise may not have considerable reserves of
every type of assortment. Another step in the process allowing correct
execution is to determine what assortment and in what amount are required, due
to the fact that supply has its limits and, it is important to avoid the
situation of excess of specific goods, as well as shortages of other goods.
Another phase of supply is to find an appropriate supplier. This problem occurs
regardless of adopted strategy because either enterprise executes itself the
distribution of goods, or commissions it to an external company, it must have
suppliers of goods. Current contractors are usually employed in this process,
although to be a competitive, an enterprise must constantly analyze the market
situation and use the best offers. If
demand and supplier are already determined, the next stage is the determination
of financial conditions, dates and forms of deliveries, as well as the
determination of conditions of returns and complaints. An important aspect is
delivery date because long waiting time may cause goods shortages, which will
have negative impact on customer service. The final stage of supply process is acceptance of goods in the
warehouse and proper distribution. In the event of the analyzed
enterprise, specificity of offered assortment requires careful labelling and
distribution because goods are often small in size and in large amounts, which
causes that only multipacks are labelled. Therefore, appropriate arrangement
and labelling of goods using adopted norms in a company enables unproblematic
execution of the orders of customers (Fig. 9.).
Distribution of goods is the final
stage of the logistical supply chain. Its task is to make available by the
sellers goods that meet expectations of the purchasers. The components of
distribution include a form of sale and delivery service. Logistics
distribution plays a very important role because delivery of goods in time to
an appropriate place and customer largely affects the quality of customer
service and reduction of duration of movement of goods, as well as reduction of
costs. Logistics distribution combines all physical tasks connected with goods
service and marketing to meet the requirements of customer service and
reduction of costs connected with sale. Logistics distribution is connected
with making many strategic and organizational and operational decisions,
allowing to achieve the main goals of the enterprise [5].
In the event of the analyzed
enterprise, the process of distribution starts from placing an order by the
customer in an online shop on the company’s website or external e-commerce
platform. After placing an order, depending on the selected payment option, we
wait for information from an external payment system, or execution of an order
in the event of cash on delivery. In the event of no payment, an order after a
lapse of specific time is annulled. The next stage is completion of goods,
which were ordered. In the event of the analyzed enterprise, the process of
completion is very important because due to specificity of goods and wide
assortment, it must be conducted correctly. If given good in an appropriate
amount was taken from the warehouse, goods are packed. While all actions are
taken (completion, packing), the customer is informed about progress in
execution of his/her order. If goods are completed and packed, the courier
company chosen by the customer is informed that there is a parcel to collect.
Another stage is a proper sending of a parcel using data provided by the
customer. These actions are taken using a form made available by an external
company, allowing better controlling of the flow of parcels and tracking by the
customer where ordered goods are at a specific moment. If all actions connected
with preparation of a parcel were taken, it is given to a hired courier. The
analyzed enterprise in order to deliver ordered goods to the customers, uses
courier parcels and offers an option of personal collection of ordered goods
from the company’s warehouse. Along with sending a parcel, a sale document is
also issued, depending on the customer, it is a VAT invoice or receipt. That is
how the execution of an order ends, all tasks that the e-commerce enterprise
was responsible for were done. A courier company is responsible for finishing
an order and delivery of a parcel to the final customer. Upon collection of a
parcel by the customer, the order is found executed (Fig. 10.).
In the event that a customer is not
satisfied with delivered goods, or these goods are defective, or not the ones
that were ordered, a return or complaint process is initiated (Fig. 11.).
If goods are defective, or there is an error in completion, the customer may
make a complaint through sending a form and sending ordered goods back to the
seller. In the response to a reported complaint, the seller must investigate it
within a specific period of time and take appropriate steps depending on a
specific decision. If delivered good is correctly completed, the customer has
the right to return purchased goods within 14 days. In such a case, the
customer must fill in a return form and send ordered goods back to the
company’s address, where the completeness of goods is checked and if everything
is OK, the customer is given financial resources back.
4. THE IMPROVEMENT OF THE PROCESSES OF DISTRIBUTION
ILLUSTRATED WITH AN EXAMPLE OF AN E-COMMERCE ENTERPRISE
One of the most
problematic and time-consuming stages in the warehouse processes in the
analyzed enterprise is the moment of accepting goods from suppliers and
entering the warehouse system. This stage requires considerable time and
transfer to an employee, as each delivered load requires manual entry into the
warehouse system. It is a time-consuming process and there is a high risk
of human error. This process is automated by RFID (Radio Frequency
Identification), that is, automatically identifying system with the use of
radio waves. This system, apart from automatic identification, allows also to
collect data, which allows managing warehouse reserves more efficiently. A
significant advantage of RFID in the warehouse is also an option of accurate
checking of the location of selected goods. To implement RFID in the warehouse
of the analyzed e-commerce enterprise, it is necessary to assemble antennas
that would cover the whole warehouse and collect data about goods within its
range. Another required element of the system is a post, responsible for
placing codes on the goods and programming of transponders, so data contained
in it would correspond to the actual state of goods that they are fastened to.
An important element that such post must be equipped with is also a reader,
allowing that data from a transponder to be saved in the system (Fig. 12.). To
increase automation, the manual reader can be replaced with an RFID gate, which
allows that every good transferred by it will end up in the system.
Fig. 9. Algorithm of the supply
process in the enterprise
Fig. 10. Algorithm of
the goods distribution process in the enterprise
Fig. 11. Algorithm for the return/
complaint process of goods in the enterprise
Fig. 12. Design of the receiving
area of the warehouse of the analyzed company using the Flexsim
environment [23]
Apart from
technical aspects of implementation of RFID, IT system must also be implemented
in an enterprise with initial data such as the base of suppliers, goods,
employees and appropriate authorizations allowing the employees to use the
system. Remaining data is entered into the system in an automatic way. Thanks
to RFID, the process of entering goods into the warehouse system does not require
every good to be individually entered into the company's system every time, and
partial automation can make it faster. Upon implementation of RFID in the
enterprise, only labelling of goods using appropriate labels and scanning it
will have to be done. After performance of such an operation, no other actions
will be required, goods will be automatically entered into the warehouse's
system and put on the racks in the warehouse. The process of arranging goods in
the case of the analyzed company, owing to the limited space and high level of
filling, is not automated and is executed by the warehouse employee (Fig. 13.)
[23]. In contrast with manual entering of every good individually, RFID
technology allows accelerating this process by scanning many codes at the same
time. Apart from speeding up this process, this technology allows reducing the
risk of mistake connected with wrongly identified goods, or wrongly entered. In
the event of the analyzed enterprise, minimizing the risk of an error is
particularly important because despite small warehouse storage space, a very
broad assortment is kept there, which hinders the warehouse processes. Another
advantage of this system is an option of tracking current stock level, which
makes management of reserves and keeping smaller stock levels easier, and also
minimizing the risk of a mistake and occurrence of goods shortages.
In the event of an e-commerce
industry, a very significant factor shaping the high quality of customer
service is time. The speed of execution of an order is very significant because
it has a real impact on satisfaction of the customers and increases the
probability that customer will choose a specific company next time. Apart from
duration of executed order, certainty, and reliability are also key factors,
which in the event of an e-commerce industry can be achieved through
eliminating the errors during completion of an order. The abovementioned
factors are impacted by RFID, as current access to information for an employee
dealing with completion allows for executing this process in a quicker manner.
As well as avoiding any errors connected with taking incomplete packaging,
which is crucial for enterprises dealing with retail trade.
Fig. 13. Warehouse design of the
examined company
Fig. 14. Warehouse design – packing
and picking zone
5. AN ANALYSIS AND SELECTION OF OPTIMAL COMPLETION
ROUTE FOR THE WAREHOUSE OF THE ANALYZED ENTERPRISE
The duration for execution of a
given order largely depends on how a specific warehouse is run. Proper planning
of works allows doing warehouse tasks more efficiently, for example, completion
of goods and delivery to the customer. While optimizing the warehouse tasks, we
must also remember about correctness of completion, so goods delivered to the
customer are those ordered by him/her. The combination of fast and careful
completion assures proper planning of completion route, that is, the distance
covered by a warehouseman to collect the goods located in a storage zone that
he/she needs for execution of the orders.
One of the most popular methods is
the S-Shape. According to this method, a warehouseman during completion moves
around the route shaped like letter S (Fig. 15.). The completion starts from
taking an assortment container, then the employee enters the alley where he/she
can find required good. If he/she takes all goods from a given alley, then goes
to the end of racks and turns to the nearest point that he/she was not in and
where goods from a completion list can be found. RFID can be used to find goods
in alleys and avoid entering the alleys only to look for goods.
In the event of application of the
S-Shape completion route in the simulation of the warehouse of the analyzed
enterprise, an employee can finish within an hour on average 6 completion
cycles starting from taking empty packaging,
covering full route using S-Shape guidelines and delivery of goods to
the packing station. In the event of the analyzed enterprise, full cycle also
includes packing of completed goods by an employee and in such a case, an
employee can finish within one hour 5 full
cycles (completion, packing). The average duration of a full cycle, assuming
also return to an initial place, is 10 minutes and 51 seconds (Fig.
16.).
Another method
that can be applied in completion of goods is the Return method. The route in
this method is the
following: warehouseman goes through each of the alleys, in which goods
necessary for execution of an order can be found. An employee completing goods
enters selected alleys with necessary goods as far as necessary goods will be
taken, and then returns to the main corridor that he/she goes to the next alley
where necessary goods can be found (Fig. 17.).
Using the Return method in the event
of the warehouse of the analyzed company, warehouseman is able on average to
finish 5 cycles that include completion and packing and return to the initial
point. Full cycle and return to the start in this case lasts 12 minutes and
14 seconds (Fig. 18.).
Another method of determining
completion routes is the Midpoint method. This method assumes the division of
the warehouse into two equal halves. A warehouseman, while completing an order,
enters the first alley, in which he/she can
find the good that he/she needs, then collects all goods from the list, but assuming that he/she cannot exceed
the agreed half of the warehouse. When the warehouseman reaches the half
or collects the good earlier, he/she moves back to the main alley and repeats
the process entering other alleys. When he/she reaches the last alley, he/she
must cover it fully to analogically conduct this process from the other side of
the racks. When the whole process is finished, he/she goes through the whole
alley again to return to the initial point (Fig. 19.).
Fig. 15. Diagram of the S-Shape
completion route
Fig. 16. Simulation of the picking
route using the S-Shape method on the example of the warehouse of the
examined company [23]
Using the
Midpoint method in the designed warehouse of the analyzed enterprise, an
employee responsible
for completion will be able to finish on average 5 cycles consisting of completion
and packing. Duration of full cycle along
with return to an initial place is 11 minutes and 43 seconds (Fig. 20.).
In the warehouse of the analyzed
enterprise, the best method of determining a completion route, considering the
results of simulation, is the S-Shape method. The results are not considerably
different in comparison with other methods because using each of them,
warehouseman was able to finish 5 full cycles (completion and packing), but
unlike others, in S-Shape method within one hour, he/she has enough amount
of time to finish completion of the next, 6th order. Another factor showing
that the S-Shape solution is the best method, is the distance that
the employee must cover while completing goods and returning to an initial
place, which in the event of this method was the shortest.
Fig. 17. The Return method picking
route diagram
Fig. 18. Simulation of the picking
route using the Return method
Moreover, taking into account
volume, arrangement of racks and the best completion route in the warehouse of
the analyzed enterprise, an optimal solution may be application of the XYZ
method. X goods were marked yellow, Y goods were marked green, whereas, Z goods
were marked blue in the simulation (Fig. 21.).
Locating the goods that there is a
regular demand for, and they have a considerable share of the total number of
sold goods in an enterprise on the first racks, may result in acceleration of
completion route. It results from the fact that goods that are most often sold
can be found in the most of executed orders; therefore, they are most often
taken from the warehouse. When an employee goes through the
completion route, he/she starts it from the rack number 1, and then moves to
the others. Shortening the time of execution of this process results from the
possibility of visiting lower number of racks because if an order includes only
goods that are frequently sold or even seasonal, then warehouseman will not
have to move next to a rack containing goods that are rarely sold, which will
result in shortening the route and shortening the time necessary to do it. This
solution allows managing the reserves more efficiently, and also largely
facilitates and shortens the process of finding goods by a warehouseman, which
really affects shortening the time of parcel preparation while maintaining a
high quality of completion. Whereas, such actions result in increased
satisfaction of the customers, which influences the development of an
enterprise.
Fig. 19. The Midpoint method picking
route diagram
Fig. 20. Simulation of a picking
route using the Midpoint method
Fig. 21. Simulation of the method of
arranging goods in the warehouse of the examined enterprise using Flexsim
environment
6. CONCLUSIONS
An analysis of logistics
distribution of the selected enterprise shows that for the purposes of
efficient functioning of a company in an e-commerce industry, it is important
to adopt a proper strategy and constantly improve the execution of the
processes in an enterprise. In the event of action strategy in the analyzed
enterprise, the warehouse was the key place that we could seek improvements in.
In the article, we improved the execution of warehouse processes through
adopting an appropriate strategy of distribution of goods in the warehouse and
selecting an optimal completion route.
As a result of conducted research on
completion routes in the warehouse of the analyzed enterprise, it was found that selecting an appropriate diagram of the
S-shape completion route allows speeding up completion to 10 minutes and
51 seconds, allowing in comparison with remaining methods such as the Return
method to save 1 minute and 23 seconds and 52 seconds in comparison with the
Midpoint method, which enables to increase the number of completions within a
specific time. As a result of conducted modelling and simulations, a of
distribution of goods in the warehouse space to improve the processes in the
analyzed enterprise has been proposed.
References
1.
Chodak G. 2014. Wybrane
zagadnienia logistyki w sklepach internetowych – modele, badania rynku. [In Polish: Chodak G. 2014. Selected logistics issues in online stores – models, market research].
Wrocław: Publishing house of the Wrocław University of
Science and Technology. ISBN: 978-83-7493-828-0.
2.
Dyczkowska J. 2012. „Logistyka zaopatrzenia i produkcji –
wpływ na logistykę dystrybucji”. [In Polish:
Dyczkowska J. 2012. „Supply and production logistics – impact on distribution
logistics”]. Prace naukowe Politechniki Warszawskiej. Transport 84.
3.
Niedźwiedzińska H. 2018. „Rozwiązania logistyczne w
handlu elektronicznym”. [In Polish:
Niedźwiedzińska H. 2018. „Logistic solutions in e-commerce]. Autobusy – Technika Eksploatacja Systemy Transportowe 12: 931-935. DOI:
10.24136/atest.2018.526.
4.
Ragin-Skorecka K., S. Frankiewicz. 2019. „Analiza
wybranego modelu logistycznego sklepu internetowego”. [In Polish:
Ragin-Skorecka K., S. Frankiewicz. 2019. „Analysis of a selected logistic model
online store”]. Informatyka Ekonomiczna
3(53): 74-85. DOI: 10.15611/ie.2019.3.06.
5.
Smużniak M. 2016. „Charakterystyka strategii
logistycznych w e-handlu zastosowanych przez sklepy internetowe z sektora
małych i średnich przedsiębiorstw”. [In Polish: Smużniak M. 2016.
„Characteristics of logistics strategies in e-commerce used by online stores
from the small and medium sized enterprise sector”]. Available at: https://www.ptzp.org.pl/files/konferencje/kzz/artyk_pdf_2016/T1/t1_1022.pdf.
6.
Karaenko P., M.
Bichler, S. Minner. 2019. „Coordination is hard: electronic auction
mechanism for increased efficiency in transportation Logistics”. Management Science 65(1). DOI: 10.1287/mnsc.2018.3208.
7.
Liu W., J. Zhang, S.
Wei, D. Wang. 2021. „Factors influencing organisational efficiency in a
smart-logistics ecological chain under e-commerceplatform leadership”. International Journal ofLogistics Research
and Applications 24(4). DOI: 10.1080/13675567.2020.1758643.
8.
Gupta A., R. Singh, P.K. Suri. 2018.
„Sustainable service quality management by logistics serviceproviders: an
Indian perspective”. Global Business
Review 19(3): S130-S150. DOI: 10.1177/0972150918758098.
9.
Premkumar P., S. Gopinath, A. Mateen.
2020. „Trends in third party logistics –
the past, thepresent & the future”. International
Journal of Logistics Research and Applications. 24(2). DOI:
10.1080/13675567.2020.1782863.
10. Briel F.
2018. „The future of omnichannel retail:a four stage Delphi study”. Technological Forecasting and Social Change
132(3). DOI: 10.1016/j.techfore.2018.02.004.
11. Rai H.B., S. Verlinde, C. Macharis. 2018. „How are logistics service
providers adapting to omnichannel retail?”. IFAC-PapersOnLine
51(11): 588-593. DOI: https://doi.org/10.1016/j.ifacol.2018.08.382.
12. Wang Y.,
S. Peng, Ch. Xu, K. Assogba, H. Wang, M. Xu, Y. Wang. 2018. „Two-echelon
logistics delivery and pickup network optimization based on integrated
cooperation and transportation fleet sharing”. Expert systems with applications 113: 44-65. DOI: https://doi.org/10.1016/j.eswa.2018.06.037.
13. Chunli Li.
2023. „Research on Crowdsourcing Distribution Model of Community E-commerce
Logistics Development”. Academic Journal
of Management and Social Sciences 2(3). DOI: 10.54097/ajmss.v2i3.8753.
14. Qianyu
Lin. 2022. „Research on Cross-Border E-Commerce Logistics in Shandong Province”. Emergence
and Transfer of Wealth 12(3). DOI: 10.12677/ETW.2022.123003.
15. Ailawadi
K.L., P.W. Farris. 2017. „Managing Multi- and Omni-Channel Distribution:
Metrics and Research Directions”. Journal
of Retailing 93(1): 120-135. DOI: https://doi.org/10.1016/j.jretai.2016.12.003.
16. Ocicka,
B., M. Raźniewska. 2016. „In Search of Excellencein E-Customer Logistics
Service”. International Journalof
Management and Economics 49(1). DOI: 10.1515/ijme-2016-0007.
17. Tauseef Aized, Srai Jagjit Singh. 2014. „Hierarchical modelling of
Last Mile logistic distribution system”.
The International Journal of
Advanced Manufacturing Technology 70: 1053-1061.
DOI: 10.1007/s00170-013-5349-3.
18. Rodrigues
V.S., I. Harris, R. Mason. 2015. „Horizontal logistics collaboration for
enhanced supply chain performance: An international retail perspective”. Supply Chain Management 20(6): 631-647.
DOI: 10.1108/SCM-06-2015-0218.
19. Zhang X.,
G. Zhou, J. Cao, A. Wu. 2020. „Evolving strategies of e-commerce and express
delivery enterprises with public supervision”. Research in Transportation Economics 80:
100810. DOI: 10.1016/j.retrec.2019.100810.
20. Demo Gisela, Patricia Guarnieri, Beatriz
Alvarenga. 2018. „Analysis of the relation of logistics service
level and the shopping experience in brazilian e-commerce: a rating scale”. Revista Gestão Industrial 13(4).
DOI: 10.3895/gi.v13n4.7455.
21. Gutierrez
A., L. Dieulle,
N. Labadie, N.
Velasco. 2018. „A multi-population algorithm to
solve the VRP with stochastic service and travel times”. Computers & Industrial Engineering 125: 144-156. DOI:
10.1016/j.cie.2018.07.042.
22. Zhang
Y.L., Z.J.M. Shen, S.J. Song. 2017. „Lagrangian relaxation for the reliable
shortest path problem with correlated link travel times”. Transportation Research Part B Methodological 104: 501-521. DOI:
10.1016/j.trb.2017.04.006.
23. Distribution logistics strategy on the
example of an enterprise providing services in the area e-commerce. Study of
the Chair. 2023. Rzeszów: University of Information Technology and Management
in Rzeszow.
24. Wanling
Li, Gao Gengjun. 2023. „Research on Multi-product Order Splitting and
Distribution Route Optimization of
"Multi-warehouse in One Place"”.
Frontiers in Business, Economics
and Management 8(3). DOI: 10.54097/fbem.v8i3.7449.
25. Catalán A,
M. Fisher. 2013. „Assortment allocation to distribution centers to minimize
split customer orders”. SSRN Electronic
Journal. DOI: 10.2139/ssrn.2166687.
26. Živičnjak Margareta, Kristijan Rogić, Ivona Bajor 2022. „Case-study
analysis of warehouse process optimization”. Transportation Research Procedia 64: 215-223.
DOI: 10.1016/j.trpro.2022.09.026.
27. Fu Z., J. Yue, Y. Yan. 2024. „Optimized design of multi-level
low-carbon logistics distribution scheme based on two stages”. Archives of Transport 69(1): 145-165.
Received 31.05.2024; accepted in revised form 18.08.2024
Scientific
Journal of Silesian University of Technology. Series Transport is licensed
under a Creative Commons Attribution 4.0 International License