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The Lean Advantage: Transforming E-Commerce Warehouse Operations for Competitive Success

Author

Listed:
  • Mohammad Anwar Rahman

    (Faculty of Manufacturing and Construction Management, Central Connecticut State University, New Britain, CT 06050, USA)

  • E. Daniel Kirby

    (Faculty of Manufacturing and Construction Management, Central Connecticut State University, New Britain, CT 06050, USA)

Abstract

This study investigates the transformation of e-commerce warehouse operations by integrating Lean Six Sigma tools to enhance efficiency and sustainability. Beginning with Value Stream Mapping (VSM) to identify inefficiencies, followed by a Hoshin Kanri plan to align improvement initiatives with strategic objectives, the study implemented measures such as pallet pooling, process standardization, automation in inspection and picking, layout optimization, and Kanban systems for continuous improvement. A case study of a local e-commerce warehouse specializing in medical devices and healthcare products identified 29 activities across receiving, inspection, storing, picking, packing, and shipping, highlighting inefficiencies addressed through Lean-driven initiatives. These efforts resulted in a 23% reduction in total lead time, doubled value-added time, and significant improvements in inspection, picking, packing, and automation, reducing delays, lowering costs, and enhancing workflow. The study fills a gap in the literature by integrating multiple Lean tools and utilizing the Critical to Quality (CTQ) matrix to ensure sustainable improvements in e-commerce warehousing, emphasizing the strategic value of Lean Six Sigma in creating efficient, customer-focused operations.

Suggested Citation

  • Mohammad Anwar Rahman & E. Daniel Kirby, 2024. "The Lean Advantage: Transforming E-Commerce Warehouse Operations for Competitive Success," Logistics, MDPI, vol. 8(4), pages 1-17, December.
    • Handle: RePEc:gam:jlogis:v:8:y:2024:i:4:p:129-:d:1539887
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    References listed on IDEAS

    as
    1. Boysen, Nils & de Koster, René, 2025. "50 years of warehousing research—An operations research perspective," European Journal of Operational Research, Elsevier, vol. 320(3), pages 449-464.
    2. de Jesus Pacheco, Diego Augusto & Møller Clausen, Daniel & Bumann, Jendrik, 2023. "A multi-method approach for reducing operational wastes in distribution warehouses," International Journal of Production Economics, Elsevier, vol. 256(C).
    3. Boysen, Nils & de Koster, René & Füßler, David, 2021. "The forgotten sons: Warehousing systems for brick-and-mortar retail chains," European Journal of Operational Research, Elsevier, vol. 288(2), pages 361-381.
    4. Chun-Min Yu & Tsun-Hung Huang & Kuen-Suan Chen & Tsung-Yu Huang, 2022. "Construct Six Sigma DMAIC Improvement Model for Manufacturing Process Quality of Multi-Characteristic Products," Mathematics, MDPI, vol. 10(5), pages 1-13, March.
    Full references (including those not matched with items on IDEAS)

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