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Citation: Perkumien˙
e, D.; Ratautait˙
e,
K.; Pransk¯
unien˙
e, R. Innovative
Solutions and Challenges for the
Improvement of Storage Processes.
Sustainability 2022,14, 10616.
https://doi.org/10.3390/su141710616
Academic Editor: António Abreu
Received: 20 July 2022
Accepted: 22 August 2022
Published: 25 August 2022
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sustainability
Article
Innovative Solutions and Challenges for the Improvement of
Storage Processes
Dalia Perkumien˙
e, Kristina Ratautait˙
e and Rasa Pransk ¯
unien˙
e *
Department of Business and Rural Development Management, Faculty of Bioeconomy Development,
Agriculture Academy, Vytautas Magnus University, 53361 Kaunas, Lithuania
*Correspondence: rasa.pranskuniene@vdu.lt; Tel.: +370-615-18332
Abstract:
Innovative solutions are very important for the warehouse because, with their help, it is
possible to ensure a more efficient connection between suppliers and consumers throughout the
supply chain. This paper aims to search out and offer innovative solutions for the improvement
of the storage processes in a LMC (logistics manufacturing company). The task of warehousing
processes is to efficiently interconnect a complex set of operations. The proper logistics organization
of warehouse processes ensures a competitive advantage for the entire company. Considering the
problem identified in the company, this article raises a research question: what innovative solutions
can be applied for the improvement of the storage processes? Summarizing the results of the research,
it can be concluded that solving the problems of LMC warehousing processes and implementing
improvements requires staff training, specialist consultations, and also a complex of innovative
solutions such as: using racking systems with a racking truck, a warehouse management system with
barcodes, a raw material management program, application Pick by Voice system, MRP and ERP
systems, and ABC, JIT, and the Lean methods.
Keywords: warehouse; storage processes; innovative solutions
1. Introduction
This paper focuses on innovative solutions within the warehousing sector. According
to Zahra and Covin [
1
], innovation is widely considered as the life blood of corporate
survival and growth. Baregheh et al. [
2
] argue that innovation is recognized to play a
central role in creating value and sustaining competitive advantage. Damanpour [
3
] notices
that innovation is tightly coupled to change, as organizations use innovation as a tool in
order to influence an environment or due to their changing environments.
Innovative solutions are very important for the warehouse as they connect suppliers
and consumers throughout the supply chain. An important task of warehouse logistics
is to meet the demand needs to the maximum, considering the resources available to the
company. The growth of the turnover of Lithuanian manufacturing companies highlights
the need for warehousing and efficient warehousing processes in the country. The task of
warehousing processes is to efficiently interconnect a complex set of operations. Proper
logistics organization of warehouse processes ensures a competitive advantage for the
entire company.
On warehouse processes, various researchers [
4
–
6
] argue that this is a set of actions
related to the receipt, storage, collection, and shipment of goods. The implementation
of warehouse processes depends on the main tasks of the warehouse, the structure and
size of customer orders, and the storage location. The scientific literature highlights the
importance of efficient warehouse process management, which is much talked about [
7
–
9
].
As one of the most important logistics goals in warehousing processes is to ensure that
the right product is found in the right quantity, at the right time, and intact, the efficient
management of warehouse processes is essential to ensure that all the listed criteria are met,
Sustainability 2022,14, 10616. https://doi.org/10.3390/su141710616 https://www.mdpi.com/journal/sustainability
Sustainability 2022,14, 10616 2 of 21
as transportation and distribution processes are a continuation of warehouse processes [
7
].
It should be noted that the use of the company’s warehouse management tools helps
to achieve high profitability of warehouse operations, as well as long-term competitive
advantages in sales and development [
8
]. Joint and coordinated work at all levels of man-
agement is needed to solve logistics problems and develop its capabilities [
9
]. The scientific
literature also updates the rational organization of warehousing processes: because the
process of warehouse management is rationally organized, guarantees stock security, speed
of operations, reduces costs, and provides a high level of logistics services [
8
]. As the
improvement of process organization ensures fast availability of results using existing
equipment [
10
], all reorganizations, investments, and technological changes in logistics
facilities should be comprehensively analyzed [
3
]. Researchers highlight the essence of
innovation, the implementation of technology in warehousing processes, and its impor-
tance, highlighting the fact that scientific and technical progress in warehouse logistics and
innovation achievements are very important in increasing the productivity of warehouse
operations [
11
]. In the modern world, the trend of warehouse automation is an important
and inevitable part of a company’s development [
4
]; the use of innovative solutions by
companies significantly increases the level of development in both warehousing and other
logistics solutions of the company [
9
]. Technology implementation is required for com-
panies with intensive turnover processes [
12
] and needs to be introduced to increase the
efficiency of the warehouse [8].
Thus, the aim of the article is to search out and offer LMCs innovative solutions for
the improvement of the storage processes.
The analysis of the scientific literature on the research object shows that the issues
related to the innovative solutions for the improvement of the storage processes are rela-
tively rarely discussed. Research results are usually focused on the warehouse process [
3
]
or on warehouse logistics [
5
,
8
,
11
]. Despite the variety of research in this field, it still lacks
comprehensive studies on innovative solutions for the improvement of the storage pro-
cesses. Considering the problem identified in the analyzed company, the research question
can be raised; what innovative solutions can be used for the improvement of the storage
processes? The study provides an opportunity to reveal possible innovative solutions for
the improvement of the storage processes.
The work is organized as follows. In further sections the paper presents a literature
review, materials and methods, discussion, and conclusions about the analyzed question.
2. Literature Review
The theoretical background of this study covers the concepts and theories for seeking
deeper knowledge about supply chain management and its integration with sustainability.
In addition, the major objective of this theoretical framework is to have a basis for the
analysis and to support key findings.
2.1. The Concept of Warehousing Logistics
To study warehousing processes, first of all, it is expedient to analyze the essence of
warehousing logistics and its importance. Therefore, the first table presents the concepts of
warehousing logistics and their authors (see Table 1).
Sustainability 2022,14, 10616 3 of 21
Table 1.
The concept of warehousing logistics (compiled by the authors according to the works of the
research presented in the Table).
Authors Concept
Mubarik et al. [13]
Warehousing plays an integrative role in the supply chain as it is the link between production, the
market, suppliers, customers, and the overall business environment.
Mohamed et al. [14]
Storage plays an important role in modern supply chains. It is the coordinating node of the
material flow between the services of the company. It is also a coordinating node between
suppliers and customers.
Dragomirov [15]
Warehouses are an integral part of any efficient logistics system. Through their integration, issues
related to the movement of material flows in the supply chain, from the supplier to the consumer,
are addressed.
Karim et al. [16]
The role of the warehouse in the supply chain is very important, as it is used during production
to store products until they are delivered to consumers on demand. In today’s highly competitive
business environment, a warehouse is not just a storage space for products; the warehouse also
manages and provides value-added services.
Kibria et al. [17]
Storage is a mandatory part of any existing distribution network designed for the long-term
storage of goods: raw materials, technological materials, packaging materials, or finished
products related to production. Storage provides the usefulness of time and space
for any product.
Kudelska and Pawłowski [18] Warehouses are important points in every business and supply chain.
Kudelska and Niedbał [19]
Today, almost every company has its own warehouse or rents it out. Modern warehouses,
therefore, play an important role in production and service networks. Today’s warehouses should
be described as the implementation of rapid warehousing processes between the collection and
issuance stages.
Škerliˇc et al. [20]
Warehousing is one of the activities that require many systems to ensure security and the quality
of work processes, as errors can occur during warehousing operations.
Škerliˇc and Muha [21]Warehousing is a labor-intensive process: warehouse operators must use different working
methods and equipment and move constantly.
Mostafa et al. [22]Warehouses are a key part of the supply chain. They are used to store products and manage
inventory levels.
ˇ
Colakovi´c et al. [23]
Warehouses are premises used to store goods, the main task of which is to ensure their security,
value, and quality. A warehouse is a complex environment that uses a variety of processes and
operations to perform acquisition, storage, and issuance.
Chiang et al. [24]
Because every link in the supply chain must maintain very high efficiencies, warehousing is an
integral part of the supply chain. Warehousing activities include receiving, placing, internal
replenishment, order picking, sorting, packing, and shipping.
Dieu Ho et al. [25]Warehouses provide significant added value by providing a competitive advantage, supporting
business growth and efficiency throughout the supply chain.
Freitas et al. [26]
A warehouse can be defined as a material handling station for the reception, storage, and
preparation for dispatch of raw materials, semi-finished or finished products. The role of
warehouses in modern logistics is becoming increasingly important due to the rapid growth of
e-commerce transactions, the reduction of desired inventory, and rapid response to
customer requests.
Singh et al. [27]
Warehouses are a very important part of the supply chain in local or international markets.
Warehouse location determines speed and efficiency in the supply chain. The warehouse is a large
building that stores raw materials and manufactured products before they are sent to customers.
Kusrini et al. [28]
Warehousing activities depend on the variety and number of goods, the daily workload, and the
diversity of processes required to meet the needs of customers and suppliers. The warehouse
activities are divided into five activities: receiving, postponing, storing, collecting,
and shipping orders.
Prananingtyasa and
Zulaekhah [29]
Various studies have confirmed the important role of warehousing as a basis for the
supply chain management.
Sustainability 2022,14, 10616 4 of 21
Table 1. Cont.
Authors Concept
Olaku et al. [30]Warehousing is part of the company’s logistics function, which is responsible for warehousing
and inventory management, from the receipt of goods to the dispatch process.
Rahman and Saifudin [31]A warehouse is an important element of logistics operations as it contributes to supply chain
performance and management costs.
Appiah et al. [32]
Warehouses play a key role in creating added value in the service supply chain.
Warehousing involves the performance of administrative and physical functions related to the
storage of goods and materials.
Karim et al. [33]A warehouse is more than a place to store. The goals of warehouse management are to increase
productivity, reduce inventory levels, and maintain good customer service.
Dragomirov [15]Warehousing is a purposeful stocking activity that ensures the regular flow of
production processes.
Habazin et al. [34]Storage means picking up, handling, transporting, loading, unloading, packing,
handling, and shipping.
Garmash et al. [35]
Warehouse logistics is an essential part of a company’s operations and occupies a large part of it.
Warehouses provide warehousing, processing, and distribution services between producers and
end users. The warehouse is considered an integrated component in the logistics chain that
allows a high level of profitability to be achieved.
Putra et al. [36]A warehouse is an area that performs the function of storing materials or manufactured goods
over a period.
Table 1shows that warehousing is an important part of logistics integration, and
its absence in the logistics system is unthinkable as many of the related activities would
be impossible. Warehousing, which is mainly carried out on storage premises, plays an
important role in the logistics system and cannot be explained by a single definition. For this
reason, several authors define warehouses in different ways, emphasizing their importance
from their point of view. Despite the differences, opinions can be combined into the fact
that a warehouse is primarily a place where goods are received, delivered, stored, collected,
packaged, shipped, sequenced, and documented [13–15,37].
Warehousing is a dynamic process that is also affected by ever-changing factors outside
the company, e.g., relocation of production to countries with cheaper labor and various
technological and organizational requirements of customers [
20
,
21
]. Warehousing is also
a purposeful activity in the warehouse, which ensures the necessary flow of production
processes and consumption; due to their technical nature, warehouses are complex facilities
that allow this activity to be carried out [
15
]. Therefore, each author provided a definition
of storage according to the direction examined in his work.
Most authors [
14
,
16
,
18
,
19
,
22
,
24
] stress that warehousing plays an important role in
modern supply chains and enterprises. Karim et al. [
16
] note that expanding globalization,
advances in the global economy, and evolving consumer orders have led to increased
demand for logistics as well as warehousing services. The role of warehouses in the
supply chain is very important as they contribute to the storage of goods in time for
production until the goods are delivered to consumers on demand. In a highly competitive
environment, a warehouse is not just a storage location; it also manages and provides value-
added services [
16
,
38
]. Warehouses play an important role in matching product demand
with supply at different stages of the supply chain [38]. Karim et al. [16] also indicate that
warehousing is integral to four different supply chain processes: supply/inbound logistics,
processing/manufacturing, outbound/distribution, and reverse logistics [16].
Efficient warehousing in the supply chain helps shorten time and offers value-added
processes. In terms of production and purchasing, economies of scale are achieved, and
transportation costs are reduced through product consolidation [
10
]. Appiah et al. [
32
]
singled out that warehouses must be designed and operated according to the specific
requirements of the entire supply chain. It is therefore justified if they are part of the
Sustainability 2022,14, 10616 5 of 21
cheapest supply chain that meets the level of service to meet customer needs [
32
]. However,
in practice, due to the nature of the premises, staff, and equipment required, warehouses
are often among the most expensive elements in the supply chain, therefore, their efficiency
is crucial in terms of prices and services. Due to the wrong approach to warehousing
activities, many companies suffer significant losses [17,32].
Mubarik et al. [
13
] and Dieu Ho et al. [
25
] also emphasize the importance of warehous-
ing not only in the supply chain but also in customer service. The supply chain involves
the purchase of materials, production of products in one or more factories, dispatch to
warehouses for storage, and finally delivery to the end user. Storage has a major impact
on the supply chain, as products must be stored until they are transported to end users;
the warehouse helps to achieve this important goal in the supply chain. There are several
main functions of a warehouse: one of the key functions is to reduce transportation costs by
consolidating production; second, to achieve economy through purchasing and production;
third, is the provision of added value in the processing of products. Mubarik et al. [
13
]
and Dieu Ho et al. [
25
] argue that warehousing faces the need to integrate processes that
provide added value to meet customer needs, as has been mentioned by other authors
cited in this paper. Goods are delivered to customers because the warehouse acts as an
intermediary that provides services between producers and end users, so the function of
warehouses is to reduce delivery time.
According to Yener and Yazgan [
39
], the warehouse acts as a source of supply for
customers [
13
]. Although warehouses were previously viewed negatively due to high
costs, they are now a strategic element throughout the supply chain [
25
]. It is important to
mention that supply chain management is becoming an important issue in many companies
around the world. This includes the interests of suppliers around the world as well as a
focus on the local and international consumer [18].
Warehouses play an important role in matching the demand and supply of prod-
ucts in different areas of the supply chain. Without warehousing, innovative solution
improvements, supply chain design and logistics are inadequate, so it is important to
understand the key principles of warehouse operations that play an important role in
improving operational efficiency and improving customer service levels [25].
Many authors discuss the importance of customer service in warehousing: the role
of warehousing is changing to increase customer service and companies adapt value
propositions [
10
]; the key to the success of any supply chain is to understand and meet
customer needs with on-time product delivery, which can be obtained by eliminating
non-value-added activities in warehouse processes [
22
]. Customers in the supply chains
become more complex and powerful due to the presence and availability of different brands,
which makes the unavailability of one brand lead customers to another brand. Therefore,
it is essential for companies to maintain an efficient delivery system and a competitive
advantage over other brands—as this has a significant impact on warehousing, ensuring
products are stored and shipped to reach the customer on time [40].
In the last few years, companies in many countries have faced high-cost pressures
in industries leading to improvements in logistics processes, including warehousing, to
reduce operating costs and satisfy demanding customers with fast delivery [
18
,
25
]. Ware-
houses perform important functions by increasing the efficiency of the logistics system and
improving customer service [
15
], helping the company to improve the quality of services
provided and achieving higher levels of customer satisfaction, while at the same time
reducing storage costs [
37
]. Warehousing also plays a key role in global logistics systems
to ensure a high level of customer service [
14
]. An improved warehousing system perfor-
mance can contribute to a higher level of customer service and efficiently affects the entire
supply chain [
17
], assisting companies to customize their services to customers and achieve
a competitive advantage [39].
It should be noted that the competitive environment in warehousing activities has
a significant impact. According to Aleksandrova and Munshi [
8
], the analysis of the
competitive environment helps the warehouse to achieve high performance, as well as
Sustainability 2022,14, 10616 6 of 21
to realize and develop long-term competitive advantages. The analysis of warehouse
performance indicators and the dynamics of their changes are needed to assess the state of
warehouse performance, determine the specifics of the problems in the warehouse, and
assess their significance [
8
]. Lorenc and Lerher [
41
] singled out time and cost as the most
important factors influencing warehouse competitiveness.
To summarize the thoughts of the authors, it can be concluded that warehouses are no
longer considered a simple storage place, but is instead a dynamic place. Warehousing is
an important element of a distribution activity and should not be a weak part of the supply
chain. The warehouse is viewed from different angles by various authors interested in the
field. There is no definition that covers all aspects of storage. Therefore, Mohamed et al. [
14
]
propose a broader definition: warehousing is a process that groups all activities including
the design of a warehouse; defining the measures necessary for its operation; the definition
of the various operations to be carried out, and the management of the warehouse. Storage
performance research is very important for companies because it has a direct impact on
supply chain performance [14].
2.2. The Role of Storage Processes
It has been observed that the number of operations and their names vary in the various
works of scientists. Researchers such as Habazin et al. [
34
] distinguish the following
main warehouse processes: receiving, placing, internal replenishment, order collection,
storage and sorting, packing, shipping, and shipping. Receipt and storage are treated as
inbound processes and others as outbound processes. Authors Olaku et al. [30] write that
warehousing processes include activities such as receiving, postponing, storing, collecting,
and shipping. Gutelius and Theodore [
42
] present in their work: acceptance (unloading
and preparation of goods for storage or reloading), postponement (transfer of goods to
another place in the warehouse), storage (storage of goods as long as they are needed),
picking (selection and collection of orders by product, pallet or final assembly, marking,
packaging), and shipment (preparation of orders for shipment and loading of goods). Dieu
Ho et al. [
25
] state that the warehouse process has four main activities: receipt, storage,
assembly, and shipping. Summarizing the authors’ positions on the number of processes
in a warehousing system, it can be concluded that there are still four main processes in
warehousing in manufacturing plants: receipt, storage, assembly, and shipping [
25
]. The
processes can be categorized into operations and can be further detailed, as the work of the
analyzed scientists has shown. Four main processes were selected for the formation of the
storage process model and 10 examples are given.
Using the warehouse process model presented in Figure 1, it is appropriate to describe
each process in detail in order to highlight the thoughts of other researchers on this topic.
Sustainability 2022, 14, 10616 6 of 22
performance can contribute to a higher level of customer service and efficiently affects the
entire supply chain [17], assisting companies to customize their services to customers and
achieve a competitive advantage [39].
It should be noted that the competitive environment in warehousing activities has a
significant impact. According to Aleksandrova and Munshi [8], the analysis of the
competitive environment helps the warehouse to achieve high performance, as well as to
realize and develop long-term competitive advantages. The analysis of warehouse
performance indicators and the dynamics of their changes are needed to assess the state
of warehouse performance, determine the specifics of the problems in the warehouse, and
assess their significance [8]. Lorenc and Lerher [41] singled out time and cost as the most
important factors influencing warehouse competitiveness.
To summarize the thoughts of the authors, it can be concluded that warehouses are
no longer considered a simple storage place, but is instead a dynamic place. Warehousing
is an important element of a distribution activity and should not be a weak part of the
supply chain. The warehouse is viewed from different angles by various authors
interested in the field. There is no definition that covers all aspects of storage. Therefore,
Mohamed et al. [14] propose a broader definition: warehousing is a process that groups
all activities including the design of a warehouse; defining the measures necessary for its
operation; the definition of the various operations to be carried out, and the management
of the warehouse. Storage performance research is very important for companies because
it has a direct impact on supply chain performance [14].
2.2. The Role of Storage Processes
It has been observed that the number of operations and their names vary in the
various works of scientists. Researchers such as Habazin et al. [34] distinguish the
following main warehouse processes: receiving, placing, internal replenishment, order
collection, storage and sorting, packing, shipping, and shipping. Receipt and storage are
treated as inbound processes and others as outbound processes. Authors Olaku et al. [30]
write that warehousing processes include activities such as receiving, postponing, storing,
collecting, and shipping. Gutelius and Theodore [42] present in their work: acceptance
(unloading and preparation of goods for storage or reloading), postponement (transfer of
goods to another place in the warehouse), storage (storage of goods as long as they are
needed), picking (selection and collection of orders by product, pallet or final assembly,
marking, packaging), and shipment (preparation of orders for shipment and loading of
goods). Dieu Ho et al. [25] state that the warehouse process has four main activities:
receipt, storage, assembly, and shipping. Summarizing the authors’ positions on the
number of processes in a warehousing system, it can be concluded that there are still four
main processes in warehousing in manufacturing plants: receipt, storage, assembly, and
shipping [25]. The processes can be categorized into operations and can be further
detailed, as the work of the analyzed scientists has shown. Four main processes were
selected for the formation of the storage process model and 10 examples are given.
Using the warehouse process model presented in Figure 1, it is appropriate to
describe each process in detail in order to highlight the thoughts of other researchers on
this topic.
Figure 1. The main warehouse processes in a manufacturing plant [25,34,42].
The first storage process is the acceptance of products, raw materials, and other
materials. According to Habazin et al. [34], this process does not take as much time as the
Figure 1. The main warehouse processes in a manufacturing plant [25,34,42].
The first storage process is the acceptance of products, raw materials, and other
materials. According to Habazin et al. [
34
], this process does not take as much time as
the order assembly, which is shown below, but it is just as relevant because the incorrect
placement of the production of raw materials can lead to further process errors. Usually,
the warehouse staff is informed about the acceptance process in advance so that they can
prepare and plan operations. Researchers [
30
,
43
,
44
] add that on arrival, unloading begins,
followed by accurate information in the documents. If labeling is required, this process
takes place before the goods are placed. The location of the production in each warehouse
must be determined in advance. If such a place does not exist, but it is known that the
raw materials and products will arrive, they must be marked and placed in a temporary
Sustainability 2022,14, 10616 7 of 21
place and it is essential that the delivery is compatible with the unloading equipment
in the warehouse, otherwise, the need for additional equipment arises [
34
]. Authors
Dieu Ho et al. [
25
] note that the warehouse needs to be organized into different reception
departments that will be stocked before and after receipt. Therefore, the acquisition process
must be completed as soon as possible so as not to use space and renovate new areas.
Habazin et al. [
34
] noticed that the adoption process is only 10 percent of the operating
costs in a standard warehouse.
The second storage process is the storage of products, raw materials, and other mate-
rials. Habazin et al. [
34
] state that each unit of stock storage in a warehouse has its own
predetermined location. Ref. [
25
] clarify that there are not only fixed storage locations but
also volatile, variable ones. Giannikas et al. [
43
] note that storage must be organized in
such a way that the available space is fully utilized. This process is important because
it can shorten the selection time and ultimately reduce the overall duration of outgoing
processes. Once the product is in place, the location of the unit should be scanned and
recorded [
30
]; such information will be useful when collecting orders. The storage process
may require a larger number of workers, as production usually needs to be moved over
significant distances to their storage location. As a result, the storage process accounts for
approximately 15 percent of the cost of warehouse operation [34].
The third warehousing process is order collection. Dieu Ho et al. [
25
] emphasized that
the main activity in this process is to make sure that the right product and the right quantity
are selected. All ordered goods are then packed in one or more packages onto pallets, and
must be ready for shipment. Habazin et al. [
34
] discussed the order collection process
involved in selecting and ordering a specified quantity through an order that goes through
operations such as lifting, moving, assembling, placing, and packing. Order collection
can be manual or automatic. When picking up an order manually, the voter collects the
items from their locations and then transports them to the packing location. In the case of
automatic collection, that is, in automated storage and retrieval systems, the system scans a
certain number of cargo units and assists in a collection station. The collector accepts the
products to order, and the remaining units are moved to their storage location [
34
]. Škerliˇc
and Muha [
20
,
21
] point out that order collection is the most time-consuming process of
internal logistics, accounting for more than 50 percent of total storage costs. According
to Chiang et al. [
24
], Dauod et al. [
45
], and Dieu Ho et al. [
25
], order collection accounts
account for 55 percent of the total cost of warehousing, which shows the role of order
picking in warehousing. In analyzing, Kusrini et al. [
28
] also clarified that order picking is
one of the most time-consuming warehousing processes and that, in many cases, it is the
case that it accounts for more than 50 percent of warehouse operating costs.
The fourth warehousing process is the dispatch of the order. The dispatch process is
the final process between warehouse processes. After preparation for shipment, the first
step is loading into the vehicle. This process is not as complex and usually involves less
manpower than the processes mentioned earlier. Depending on the warehouse information
system, management can be done manually or using a scanner [34].
Summarizing all four warehousing processes and their importance, it can be said
that the proper functioning of warehousing processes is very important for the company,
its performance improvement, as well as the overall logistics supply chain. The order
picking process stood out from the four processes, which, as noted by many of the authors
cited, is the most expensive and complex in the entire warehousing process. The order
collection process will be discussed further in the context of existing business problems in
warehousing logistics processes.
2.3. Problems of Warehousing Logistics Processes
Table 2shows identified problems in warehousing logistics processes. Some of the
problems are repetitive but presented in separate groups, as the authors’ solutions for
solving those problems differ and each author interprets their findings using his or her own
research methods and scientific insights. It should be noted that the main problem identified
Sustainability 2022,14, 10616 8 of 21
was the warehouse order collection process, which clearly stood out as a problem that was
researched and mentioned by the authors of the analyzed articles. The second problem
is the inefficient use of warehouse space. This problem also affects the problem of lack of
warehouse space because in many cases, there is not enough space in the warehouse and
the warehouse space is usually 100% unused. The participation of people, i.e., employees.
in work processes, creates problems such as their inadequate work. In times of global
innovation, it is no surprise that automation accounts for only 20 percent, which is already
a problem. However, automation also causes other problems with complex tasks. A
very important problem in a company arises when it concerns customers, as dissatisfied
customers who do not receive orders on time can lead to significant losses for the company.
Table 2.
Problems and solutions of warehousing logistics processes (compiled by the authors based
on the works of the researchers presented in the Table).
Authors Problem Groups Solutions for the Improvement
Habazin et al. [34], Dieu Ho et al. [25],
Škerliˇc and Muha [20,21], Chiang et al. [34],
Dauod et al. [24], Kłodawski et al. [4],
Mubarik et al. [13], Lorenc et al. [46], Lorenc
and Lerher [41], Giannikas et al. [43]
Problems in the warehouse order
collection process—70 percent time
and 55 percent costs.
Effective planning of warehouse space;
optimization of collection time and route;
implementation of warehouse
management systems (WMS); using the
ABC method.
Caprili et al. [47], Tsarpalis et al. [48] Inefficient use of warehouse space.
Use of appropriate functional equipment:
racks, rack loaders.
Dieu Ho et al. [25], Kudelska and Niedbał
[18], Škerliˇc et al. [20], Zoubek et al. [34]
Occurrence of various errors in
warehouse processes; lmproper work
of warehouse staff.
Training of employees; Implementation
of warehouse management system;
Implementation of warehouse process
technology “Pick by Voice”.
Kusrini et al. [28], Olaku et al. [30], Karim
et al. [
16
], Kudelska and Niedbał [
19
], Škerliˇc
and Muha [21], Kudelska, et al. [49]
Gaps in warehouse processes:
automation—20 percent, manual
work—80 percent; long delivery time
problems, dissatisfied customers.
Implementation of technological
solutions: use of (ERP) enterprise
resource planning system, (WMS)
warehouse management system
implementation.
Škerliˇc and Muha [21]
Automation problems: more complex
tasks, mistakes made by
warehouse keepers.
Training and motivating employees to
work well.
Dieu Ho et al. [25],
Kudelska and Pawłowski [18]Security issues.
Use of safe work equipment, good
warehouse layout that does not create
congestion, and compliance with work
safety rules.
Martinsa et al. [50], Petryla [51]Improper planning and lack of
storage space.
Applying the Lean method to storage
activities.
Kuˇcera [52], Aleksandrova and Munshi [8],
Prananingtyasa and Zulaekhah [29]
100 percent underutilization of
storage capacity.
Implementation of warehouse
management systems (WMS).
Dujmešic, Bajor and Rožic [
53
], Kudelska and
Pawłowski [18], Škerliˇc and Muha [21]
Inefficiency and unproductivity of
warehouse processes.
Implementation of warehouse process
technology “Pick by Voice”;
implementation of Warehouse
Management System (WMS).
Zoubek et al. [37], Škerliˇc and Muha [21]Storage inefficiency and
lack of storage space.
Use of barcode technology; (RFID) Use of
radio frequency identification technology;
Use of Real Time Location System; Smart
scanning technology; Using the ABC
method; Automated vehicle.
Najy [54], Badewole [55], Putra et al. [36],
Utami et al. [56], Mankazana and
Mukwakungu [57]
Lack of storage space.
Use of (MRP) material requirements
planning system; Use of (ERP) enterprise
resource planning system; Use of (JIT)
Just-in-Time method.
Sustainability 2022,14, 10616 9 of 21
The storage area under analysis is quite risky in terms of security, which is why there
are also several problems here. Solutions for the improvement of warehousing logistics
processes in a manufacturing company based on theoretical insights. In summary, solutions
for warehousing logistics processes are primarily related to warehouse order collection time
and route optimization, efficient warehousing utilization, proper planning, and warehous-
ing capacity utilization. Equally important are the use of appropriate functional equipment
and staff training.
The scientific literature presents various solutions for the problem solving of warehous-
ing logistics processes, but the main ones are related to modern technologies and methods.
Figure 2presents a model of innovative solutions for the improvement of warehousing
logistics processes, which lists the technological and methodological solutions for solving
problems in a manufacturing company.
Sustainability 2022, 14, 10616 9 of 22
Kučera [52], Aleksandrova and Munshi [8]
,
Prananingtyasa and Zulaekhah [29]
100 percent underutilization of
storage capacity.
Implementation of warehouse
management systems (WMS).
Dujmešic, Bajor and Rožic [53], Kudelska
and Pawłowski [18], Škerlič and Muha [21]
Inefficiency and unproductivity of
warehouse processes.
Implementation of warehouse
process technology “Pick by
Voice”; implementation of
Warehouse Management System
(WMS).
Zoubek et al. [37], Škerlič and Muha [21] Storage inefficiency and
lack of storage space.
Use of barcode technology; (RFID)
Use of radio frequency
identification technology; Use of
Real Time Location System; Smart
scanning technology; Using the
ABC method; Automated vehicle.
Najy [54], Badewole [55], Putra et al. [36],
Utami et al. [56], Mankazana and
Mukwakungu [57]
Lack of storage space.
Use of (MRP) material
requirements planning system; Use
of (ERP) enterprise resource
planning system; Use of (JIT) Just-
in-Time method.
The storage area under analysis is quite risky in terms of security, which is why there
are also several problems here. Solutions for the improvement of warehousing logistics
processes in a manufacturing company based on theoretical insights. In summary,
solutions for warehousing logistics processes are primarily related to warehouse order
collection time and route optimization, efficient warehousing utilization, proper planning,
and warehousing capacity utilization. Equally important are the use of appropriate
functional equipment and staff training.
The scientific literature presents various solutions for the problem solving of
warehousing logistics processes, but the main ones are related to modern technologies
and methods. Figure 2 presents a model of innovative solutions for the improvement of
warehousing logistics processes, which lists the technological and methodological
solutions for solving problems in a manufacturing company.
Warehousing
logistics
process
improvement
solutions
Lean
method WMS
Warehouse
Management
System
RFID
Radio
Frequency
Identifica-
tion
"Pick by
Voice"
ABC
method
Shelving
Rack
loaders
Barcode
technology
MRP
Material
Requirement
Planning
System
ERP
Enterprise
Resource
Planning
system
JIT method
Figure 2.
Innovative Solutions for the improvement of warehousing logistics processes in a manufac-
turing company (based on the authors’ works presented in Table 2).
It has been established that the most suitable innovative solutions methods for ware-
housing logistics process-improvement solutions in a manufacturing company are the ABC
(activity-based costing) method [
58
], JIT (the just-in-time) method and the lean method.
As for the systems to solve complex company problems, these would be WMS (Ware-
house Management System), pick by voice system (voice picking system), MRP (material
requirement planning) and ERP (enterprise resource planning) systems, selected RFID
(radio frequency identification) and barcode technologies (a printed series of parallel bars
or lines of varying width that is used for entering data into a computer system). The last
tools, without which help in warehousing is not possible, are racks, rack loaders, and other
equipment. Summarizing the theoretical part, it can be stated that today’s warehousing
is not only a storage place but also an integral part of the logistics system. The operation
of a warehouse is influenced by the number and variety of goods, and how efficiently
that operation will be carried out depends on the correct and systematic operation of
storage processes. Warehousing is an important element in the supply chain, as it connects
suppliers, production and customers, and customer service and the satisfaction of desires;
delivering orders on time is paramount in the business because, without customers, there
will be no business.
Sustainability 2022,14, 10616 10 of 21
Continuing the topic of customer satisfaction, it is found that this depends on efficient
warehousing logistics processes, when the manufacturing company can in a timely fashion,
supply the production of essential raw materials and send the finished products to the
customer according to the contract terms. In addition, the importance of warehousing
logistics processes stands out in the circulation of goods throughout the supply chain.
Concluding the problems of warehousing processes, the scientific literature highlights:
problems in the warehouse order collection process, inefficient use of warehouse space,
improper work of employees, and the most important problem-customer dissatisfaction
with product delivery dates. In their research, the researchers found that the following
were important in solving these problems: the use of the right equipment, staff training, but
the most important solutions are innovative methods and technologies that will not only
solve internal problems and satisfy customers but will also be completely uncompetitive.
in your market. There are times when companies must monitor new technologies and
methods that will provide productivity in their work processes, otherwise, more innovative
companies will drive them out of the market.
After discussing the theoretical background in the next chapter of this study, we will
describe the Materials and Methods of the research.
3. Materials and Methods
In order to search out and offer innovative solutions for the improvement of the storage
processes in LMCs, we will discuss research methods and organization of the research.
In this research warehousing sector is recognized as demand in both the Lithuanian and
international markets as it connects suppliers and consumers throughout the supply chain.
The task of warehousing processes is to efficiently interconnect a complex set of operations.
For the research, we selected one of the most popular LMCs, which was established in 1995.
This company manufactures 500–2500 kg capacity big bags and other products for fertilizer,
food industries, agriculture, and waste management. LMC was chosen as an example of
the warehousing sector for the study. The authors note that this LMC was selected to find
out the problematic aspects of warehousing processes, methods, and technologies used in
warehousing work, as well as to identify criteria that would be the basis for selecting the
best innovative solutions for improving warehouse logistics processes.
3.1. Methods
A qualitative research method was applied as the most appropriate and the most
that responded to the research. Based on the systematic analysis of the scientific litera-
ture, a qualitative interview questionnaire was developed by the authors. The basis of
the qualitative interview is open-ended questions, which are expected to be as broad,
comprehensive, and open as possible, formulated and presented by the research partici-
pant himself/herself [
59
–
61
]. An exploratory interview is defined as a researcher-initiated
two-person interview aimed at gathering the information needed for research tasks [
59
].
The interview questionnaire was prepared in advance and consisted of 10 questions. All
questions are related to the topic of the work: evaluation of warehousing processes in the
company; problematic aspects of warehousing processes in LMC; the impact of warehous-
ing processes on customer needs; programs, methods, and technologies that are used in
the warehouse processes of LMCs; and exclusion of criteria—the basis for selecting the
best solutions and key solutions to improve warehousing logistics processes. The goals
of a qualitative study focus on details, nuances, or processes, so the selection must be
careful, thoughtful, and reasonable. It is often convenient to have a smaller number of
study participants so that each case can be examined in depth, and such participants are
needed whose special characteristics would allow them to best reflect and inform about
the research phenomenon [
60
,
61
]. It is important to estimate how many respondents it is
appropriate to interview because the reliability of the data directly depends on the selection
of suitable respondents and the collection of sufficient data [
60
,
61
]. Therefore, to determine
the number of participants, it was decided to select nine respondents: the Director of the
Sustainability 2022,14, 10616 11 of 21
company, the Deputy Director for Commerce, the Deputy Director for Production, the
Head of Department, Chief Accountant, Technologist, Sales Manager, Chief Storekeeper,
and Storekeeper. All respondents worked for LMC in their job positions from 10 to 15 years.
The researcher should select data analysis units in preparation for the analysis of the study
data. When analyzing research data, individual words, sentences, paragraphs, and text
excerpts can be considered as semantic units. Data are coded using a qualitative content
analysis method [
60
,
62
,
63
]. Therefore, using the content analysis method, the main goal
was to select, sort, systematize, and analyze information by topic.
3.2. Case Setting
The LMC was established in 1995. This company manufactures 500–2500 kg capacity
big bags and other products for fertilizer-chemical, construction, food industries, agricul-
ture, and waste management. A detailed product assortment of the LMC is presented in
Figure 3.
Sustainability 2022, 14, 10616 12 of 22
Figure 3. Assortment of products manufactured by the LMC (compiled by the author using docu-
ments from the LMC).
The LMC manufactures polypropylene big bags for packaging, storage, and trans-
portation of products: fertilizers, plastic granules, construction materials, and other bulk
products. Food bags are also stored and transported in big bags, e.g., sugar, flour, and
grain. The LMC offers high-quality big bags with a wide assortment of applications, the
use of which saves consumers time, reduces transportation costs, and facilitates the load-
ing of products. The raw materials used in the production of big bags are woven polypro-
pylene (PP) fabrics, belts, threads, and polyethylene film. Up to 700 tons of polypropylene
and polyethylene raw materials can be stored in the company’s 1500 m2 closed storage
facilities. Working with highly qualified specialists, the LMC can meet the needs of both
large and small customers not only in Lithuania but also in Europe. The company has
regular long-term customers in Estonia, Latvia, Sweden, Finland, Germany, Poland,
France, and the Netherlands.
The LMC has documented, implemented, and maintains the storage process man-
agement procedure (hereinafter, P-12), according to which the procedure for acceptance,
storage, and issuance of raw materials, consumables, other products, and finished prod-
ucts is established. This procedure must be used by the employees of the company’s divi-
sions involved in the storage and issuance of raw materials, consumables, and other sup-
plies and products. In addition, the LMC has documented and implemented a raw mate-
rials, materials, and finished products maintenance program, which sets out requirements
for accepting and storing raw materials, materials, and finished products in the company’s
warehouses to ensure their safety and quality. This program applies to employees of the
company’s divisions involved in the control and warehousing processes of raw materials,
supplies, and products. This program is managed, and changes are made according to the
procedure established in the “Document Management” procedure. The staff responsible
for most of the steps in the process are the warehouse keepers, warehouse staff, and the
logistics manager. The storage processes of the LMC are presented in Figure 4. Kłodawski
et al. [4] describe the warehousing process as a set of actions that involves receiving, stor-
ing, assembling, and shipping goods.
Figure 3.
Assortment of products manufactured by the LMC (compiled by the author using docu-
ments from the LMC).
The LMC manufactures polypropylene big bags for packaging, storage, and trans-
portation of products: fertilizers, plastic granules, construction materials, and other bulk
products. Food bags are also stored and transported in big bags, e.g., sugar, flour, and grain.
The LMC offers high-quality big bags with a wide assortment of applications, the use of
which saves consumers time, reduces transportation costs, and facilitates the loading of
products. The raw materials used in the production of big bags are woven polypropylene
(PP) fabrics, belts, threads, and polyethylene film. Up to 700 tons of polypropylene and
polyethylene raw materials can be stored in the company’s 1500 m
2
closed storage facili-
ties. Working with highly qualified specialists, the LMC can meet the needs of both large
and small customers not only in Lithuania but also in Europe. The company has regular
long-term customers in Estonia, Latvia, Sweden, Finland, Germany, Poland, France, and
the Netherlands.
The LMC has documented, implemented, and maintains the storage process man-
agement procedure (hereinafter, P-12), according to which the procedure for acceptance,
storage, and issuance of raw materials, consumables, other products, and finished products
is established. This procedure must be used by the employees of the company’s divisions
Sustainability 2022,14, 10616 12 of 21
involved in the storage and issuance of raw materials, consumables, and other supplies
and products. In addition, the LMC has documented and implemented a raw materials,
materials, and finished products maintenance program, which sets out requirements for
accepting and storing raw materials, materials, and finished products in the company’s
warehouses to ensure their safety and quality. This program applies to employees of the
company’s divisions involved in the control and warehousing processes of raw materials,
supplies, and products. This program is managed, and changes are made according to the
procedure established in the “Document Management” procedure. The staff responsible
for most of the steps in the process are the warehouse keepers, warehouse staff, and the
logistics manager. The storage processes of the LMC are presented in Figure 4. Kłodawski
et al. [
4
] describe the warehousing process as a set of actions that involves receiving, storing,
assembling, and shipping goods.
Sustainability 2022, 14, 10616 13 of 22
Figure 4. The LMC warehousing process (compiled by the authors using internal documents of
the LMC).
As the data in Figure 3 show, the storage process of the LMC consists of eight stages.
The first is storage planning; at this stage, the warehouse keeper plans storage locations.
The second is the storage of products, taking into account the characteristics of the prod-
uct, technical storage conditions, and safety requirements. The third is the transfer of fin-
ished products to storage, filling in certain documents, and integrating the information
into the business management information system; fourth, the storage of finished prod-
ucts according to customer orders; fifth, preparation of orders for unloading of products,
where the warehouse keeper, in accordance with the order for production, assembles
products for unloading according to quantities and types; sixth, organization of the deliv-
ery of finished products to the customer. At this stage, the logistics manager, after evalu-
ating customer orders, organizes the delivery of products. In the seventh stage, the ware-
house keeper organizes and controls the loading of products, and in the last eighth stage,
the accounting of raw materials, materials, and products is performed.
The current situation of the LMC. Finished products are purchased in large quantities
to obtain a more favorable price from suppliers. Uninterrupted production is also pur-
chased and raw materials are purchased. Full containers and tractors with raw materials
and finished products arrive every week. There may be no storage spaces or products may
be out of stock. Warehouses cannot find the required products in the warehouse at the
right time because instead of four warehouse staff who work two shifts, they now work
one per shift. As a result of the situation, due to the heavy workload, it is not possible to
enter all the information manually into the programs, no production is controlled, raw
materials are unloaded and stored. Warehouse keepers have a lot of information to mem-
orize and combine into one program, but because of two-shifts work, misunderstandings
arise. Employees are dissatisfied due to high workload; customers are dissatisfied due to
late orders. Finished products stand outdoors because there is no free space in the ware-
house to store them. There are cases when, due to unfavorable weather conditions, the
products get wet and these reach the customer, so that claims are received.
4. Results
During the analysis of the survey data, it was found that the survey participants eval-
uated the company’s warehouse processes as satisfactory, average, or good. It was noticed
that the company uses old methods: paper cards are still used, there are no warehouse
Figure 4.
The LMC warehousing process (compiled by the authors using internal documents of the LMC).
As the data in Figure 3show, the storage process of the LMC consists of eight stages.
The first is storage planning; at this stage, the warehouse keeper plans storage locations.
The second is the storage of products, taking into account the characteristics of the product,
technical storage conditions, and safety requirements. The third is the transfer of finished
products to storage, filling in certain documents, and integrating the information into
the business management information system; fourth, the storage of finished products
according to customer orders; fifth, preparation of orders for unloading of products, where
the warehouse keeper, in accordance with the order for production, assembles products for
unloading according to quantities and types; sixth, organization of the delivery of finished
products to the customer. At this stage, the logistics manager, after evaluating customer
orders, organizes the delivery of products. In the seventh stage, the warehouse keeper
organizes and controls the loading of products, and in the last eighth stage, the accounting
of raw materials, materials, and products is performed.
The current situation of the LMC. Finished products are purchased in large quantities
to obtain a more favorable price from suppliers. Uninterrupted production is also purchased
and raw materials are purchased. Full containers and tractors with raw materials and
finished products arrive every week. There may be no storage spaces or products may be
out of stock. Warehouses cannot find the required products in the warehouse at the right
time because instead of four warehouse staff who work two shifts, they now work one per
shift. As a result of the situation, due to the heavy workload, it is not possible to enter all
Sustainability 2022,14, 10616 13 of 21
the information manually into the programs, no production is controlled, raw materials
are unloaded and stored. Warehouse keepers have a lot of information to memorize
and combine into one program, but because of two-shifts work, misunderstandings arise.
Employees are dissatisfied due to high workload; customers are dissatisfied due to late
orders. Finished products stand outdoors because there is no free space in the warehouse
to store them. There are cases when, due to unfavorable weather conditions, the products
get wet and these reach the customer, so that claims are received.
4. Results
During the analysis of the survey data, it was found that the survey participants
evaluated the company’s warehouse processes as satisfactory, average, or good. It was
noticed that the company uses old methods: paper cards are still used, there are no
warehouse programs, with a lot of manual work. The lack of space was found to make
it difficult to store incoming goods and raw materials. It was also investigated that the
warehouse system itself is inefficient: “There are no scanning [of] items, it means we
work inefficiently, then we must earn every item receivable or not, just with a felt-tip pen,
physically and it is a waste of time. It is then necessary to be a warehouse keeper with
constant participation, so that it is possible to run, scan everything and have the result in
the system immediately” (X6), which is often done at the discretion of the employees. Study
participant X8 highlighted the lack of planning in warehousing processes: “... because there
is no clear division of labor. “Don’t know, for example, what fabrics will be needed for
production, what materials will be needed: call, bring, and before the time is delivered, time
is running out and production is important. As a result, it takes time to prepare orders.” (X8).
Study participants X7 and X8 emphasized that there is a clear need to speed up processes
to make work faster and more efficient, while participants X3 and X7 mentioned that work
is duplicated and can certainly be eliminated. Summarizing the evaluation of the LMC
warehousing processes from the point of view of warehouse keepers and administration
staff, it can be concluded that warehousing processes require modernization, which the
research participants X1, X3, and X5 also talk about.
Problems identified in the warehousing logistics processes of LMC. After analyzing
the research results on the problems of warehousing logistics processes in the LMC to
date, the main problems were identified from the point of view of warehouse keepers
and administration staff. These included: a lot of manual work in warehousing and
warehousing processes, lack of communication, heavy workload for warehousing staff,
lack of space, order picking process problems, various errors in warehouse work and
warehousing processes, security problems and inefficiency, and inefficiency of warehouse
processes. Out of all the listed problems, there was a lack of space and inefficient use of
storage space. All participants in the study emphasized that the lack of space was not
due to the physical lack of space, but to the fact that the warehouse space was not fully
utilized. Study participant X7 singled out: “The storage room, it is very high, why it is not
possible to load pallets not on two floors, but, e.g., five floors. There must be racks” (X7).
Most argued that racking systems could solve the problem. Study participant X2 noted:
“If there are not many goods, then everything is fine. But if there is a larger quantity of
goods, we have nowhere to store them, we already put them there” (X2). Participant X3
emphasized that the finished product suffers from a lack of space: “Often the product is in
the field under awnings, gets wet, orally (X3). loaded. Other materials are coming, you will
move elsewhere again. Then one storekeeper does not find other substances” (X8); study
participant X4: “It is not the case that you have come, and you have all the pallets in front of
you. That is not the case. They are loaded with other pallets” (X4). Most of the participants
in the study singled out a lot of manual labor in the warehousing processes, which caused a
high workload for warehouse keepers and various errors in warehousing and warehousing
processes: e.g., on the issue of raw materials., ”All this is done by hand, with those cards,
with Excel-ancient methods...” (X1); “In fact, we also have an Excel spreadsheet where we
still have to write it down. There is an app-Axapta, we use it there, too, needs to be written
Sustainability 2022,14, 10616 14 of 21
off. Cards need to be written off. Maybe the same thing is lost through those few positions”
(X8). A problem was also observed during the study: a lack of communication, as stated by
study participant X2: “The biggest problem is that there is no communication everywhere.
For example, if someone puts something together in a different way, it does not pack it
that way” (X2). During the research, several participants of the research also mentioned
the problem of security in the warehouse work processes. It should be noted that study
participant X6 stated that racks and handling equipment would minimize the following
risks: “There should be a different storage system: racks, new handling equipment even”
(X6). In today’s working conditions, the company strives to maintain occupational safety,
as commented by research participant X5: “As a result, for example, we store rolls, with
a maximum of three floors, placed on top of each other, and pallets with a maximum of
two floors can be stored, otherwise it is already unsafe” (X5). The last problem highlighted
by the study participants was the inefficiency and unproductivity of warehouse processes:
loss of time during production loading, loss of time in data duplication, and loss of time
in searching for goods when there is no order. In summary, it can be concluded that the
LMC has many problems with the warehouse and warehousing processes to this day. Not
all problems are new; some have been talked about for many years. But problems such as
lack of space were felt most precisely at the beginning of the pandemic period. Because the
LMC was buying more than usual due to the lack of raw materials. This is confirmed by
the statements of research participant X6: “Again, we could have a little less raw material,
then maybe we would not say that we lack space. Now we are what we are, basically
we have used up all our places and, in some periods, we are even a little short of square
footage, for example. But here’s the thing, well, for the sake of greater security, we’re even
keeping more raw materials, just maybe all those COVID, the whole supply chain from
Asia is getting longer, let’s just say it’s happening right now. In the past, we were able to
work with a much smaller warehouse, more different positions, and smaller quantities than
now, in that sense. Now we see that you must have just 20–30 percent extra as such” (X6).
Therefore, it can be concluded that all long-known and visible problems in the company’s
warehouse processes became apparent due to external factors.
Satisfaction of customer needs in the warehouse processes of the researched company.
All surveyed respondents indicated that the needs of the company’s customers are met
well-enough; the warehouse staff can not find the products they need quickly or are
confused—they send out the wrong pallet, but this is not very common, and as most
mentioned, only “sometimes”. Due to the poor quality of production, which is sometimes
stored in the wrong conditions, it is no longer the fault of the warehouse staff but the
organizational problem of the company itself. Justifications against customers due to
production delays are also due to warehouse work, but this is also a rare case. In summary,
it can be said that the operation of the warehouse and warehousing processes meet the
needs of customers well enough, but in order not to be good but to be perfect, the company
has to solve the problems.
Programs, methods, and technologies are used in the storage work and processes of
the researched company. After analyzing the programs, methods, and technologies used
in the storage activities of the LMC, it was determined that the following are used: Mi-
crosoft Excel program, Microsoft Dynamics Axapta program, paper cards, diagrams (many
stored in the warehouse), and rations. This was all mentioned by all study participants.
Respondents noted that these are old, outdated methods, as information is duplicated and
time-consuming: “The use of cards in warehouse processes is probably, you don’t know
how here
. . .
a matter of mentality. I don’t know if the attachment to the past, because, in
principle, in the company it is not promoted in any way, there is even a recommendation
not to use them, to give them up, but the people working there <
. . .
> continue to use
them. <
. . .
> wasting time in this place too. He writes the same thing in three places. And
we all know that we can only trust one program-Axapta, only it is the original one way or
another today” (X6). In summary, it can be concluded that in the company’s warehouse
processes are used old methods, programs, which makes the warehouse work and pro-
Sustainability 2022,14, 10616 15 of 21
cesses inefficient and unproductive. However, without modernizing the warehouse, the
warehouse staff has no choice: “Duplicate, of course. But the question is: would we be able
to find the ends . .. ” (X4).
Use of Just-in-Time and Lean methods in the work of LMC warehouse. After analyzing
the results of the research on the use of just-in-time and lean methods in the work and
processes of the warehouse of UAB X, it was found that the just-in-time method is used
in 20–30% in the company. According to the answers of the study participants, it can be
stated that this method could not be used 100% because the company imports production,
raw materials, or purchased products from distant countries, order forecasts are very
inaccurate, so this method is more applicable to internal processes or food packaging: “In
the warehouse itself, perhaps internal supply, departments takes place by this method.
We are reloading into a production workshop, say another division, today so that they
get tomorrow
. . .
This principle may be going on” (X6); “Now, as far as production is
concerned, if, in terms of between departments, it is what is needed at that moment, it is a
warehouse and provides what is needed for production (X5); “just-in-time. Usually raw
materials are ordered as much as is needed to make food packaging. We actually produce
about 15 percent” (X9). As for the Lean method, the participants of the study were divided
into two groups: some said that it was used to some extent, others said that it did not stick
and did not work in the company. Study participant X6 stated, “That it is good practice
to change that supply somewhat between internal units. That was done. It was that lean,
but I’m not going to say that we can boast of something, that we’re working under lean,
no ” (X6). Study participant X8: “There is no strict order according to lean, there are some
markings there, but certainly not everything” (X8). Study participant X6 said: “You have to
start with the infrastructure first, then you can combine something” (X5). In summary, it
can be concluded that JIT is used in the company as much as the specifics of production
and activities allow, and the lean method lacks the infrastructure and people’s willingness
to change something in their work activities.
The use of racks, rack loaders and the ABC method in the warehouse processes of
the company under study. After analyzing the results of the research on the use of racks,
rack loaders, and ABC method in the work and processes of UAB X warehouse, it was
found that racks and rack loaders are not used in the company, and the ABC method is
only partially used: “It is not so named because, for example, food bags have their place
in storage and food raw materials also have their place marked“ (X9); “ABC is used more
for raw materials” (X6). In addition, according to participant X4, it was found that its own
marking method was used: “I don’t know what it’s called. I entered that notation because
it was impossible to find it ” (X4). During the analysis of the participants of the study, it
was emphasized that: “Shelving would suit <
. . .
> significantly solve the issue of storage”
(X5). As UAB X used to produce all the products itself, there was enough space, but when
the company started to buy the finished products and carry out trade instead of production,
there was a lack of storage space. It was also noted that the racking system would solve
inefficient storage processes: unloading, reloading, assembly: “When a new batch of rolls
is delivered, we load in the same place on top. In order to take and remove all the rolls
and rebuild them again, it is a big job” (X5). In summary, it can be concluded that UAB X
does not have a racking system, but costs and expedited storage staff. The ABC method
is used in part in the company: only for food packaging and VIP customer, technical big
bags are stored where there is free space. According to the participants of the study, it can
be said that the full ABC method would not be suitable for the analyzed company due to
the specifics of the work, as it is a manufacturing company and the orders are volatile for
different customers. The company also uses its own marking method, which has no name
but helps warehouse workers in the current situation.
Need to install material planning (MRP) or (ERP) enterprise resource planning systems
in LMC. After analyzing the results of the study on the need to implement a material
planning (MRP) or (ERP) enterprise resource planning system in UAB X, it was found
that the need is: “Yes, I think there is a need because we have a real current program, but
Sustainability 2022,14, 10616 16 of 21
it does not reflect the real warehouse image
. . .
And we have problems, sometimes to
zero, depleting certain raw materials ” (X3). Some of the participants in the study were
in favor of a material planning (MRP) system, while others said that it was necessary
(ERP)—a company’s resource planning system: “But there should also be production here,
everything in that sense. As ERP, everything is common: and this and that alone could not
work” (X6). In summary, it can be concluded that the need for material planning (MRP) or
(ERP) enterprise resource planning systems in the LMC would be challenging, because in
the current situation there are many problems: production does not produce orders on time,
due to late raw materials, and, as well, time is spent inefficiently working on this issue.
Solving warehousing problems and streamlining warehousing processes with the help
of warehouse management systems combined with barcode technologies. After analyzing
the respondents’ answers about warehouse management systems (WMS), including pick
by voice together with bar code technologies, it was found that all respondents supported
the following implementation technologies in UAB X: “problems are more efficient for us”
(X1); “In my opinion, all this would make the company’s storage processes more efficient”
(X3); “I would think that with the barcode we could move forward... I would see this, it
would help a lot... There will be fewer mistakes
. . .
” (X6). In summary, it can be concluded
that all these technologies would be of great benefit to the company, as acknowledged
by the study participants. A warehouse management system combined with barcode
technology would speed up all warehousing processes: receipt, warehousing, assembly,
and shipping. It would not only make the work easier for the warehouse employees, as it
would reduce the number of handwriting and handwriting, but it would also be efficient
for other departments of the company, fewer mistakes would be made, and productivity
would increase.
LMC storage process improvement criteria. After analyzing the answers of the re-
search participants, the most important criteria were identified by the warehouse and
administration staff of the LMC as quality, speed, efficiency, easy management, efficient
management, convenience, time saving, easy to understand, good training, error elimina-
tion, and price. It can be seen that price was not a priority criterion. It was noted that there
should be: “Value for money” (X3); Speed-“install quickly” (X1); “The ability to see the full
view of the warehouse available in a timely manner” (X3); Efficiency: “efficient resource
management” (X3); “Work more efficiently than now” (X4). Easy operation: “no one wants
to work hard with a difficult program” (X1); “Ease of use” (X3). “Should not burden
them” (X3); “Usually easy to understand” (X3); “It’s fast, easy to use” (X8); Saving time:
“they would save time” (X3); Good training: “improve the qualifications of warehouse
workers” (X4). In summary, it can be concluded that all criteria are aimed at solving existing
problems, facilitating the work of warehouse employees, eliminating errors, and increasing
the efficiency of the entire company, as the warehouse is an integral part of the company,
affecting the overall productivity of UAB X.
LMC warehousing logistics process innovative solutions and suggestions. After
analyzing the answers of the research participants, the suggestions of the warehouse
keepers and the administration staff for the improvement of the warehousing logistics
processes of the LMC were determined. Most were in favor of buying a racking system:
“An efficient warehouse is one that is as small as possible, and then it is efficient. The bigger
it means, you won’t find anything there, no matter what markings there are, the distances
will be great then
. . .
Well, maybe there’s a desire to build another warehouse
. . .
and, let’s
say, not for that. This would just solve the perhaps more efficient use and you would not
need to expand any storage capacity. Vertically, the entire warehouse is empty
. . .
(X6);
“The warehouse is constantly crying because of the storage space, even the inventory can’t
be done normally: access to the goods you need, and those pallets where you are standing
outside for a long time, all the notes have even faded and how they can stand that way.
We need shelving, we need to deal with it somehow” (X7). It was further proposed to
integrate the bar code system with the control system. It was noted that a raw materials
management program is really needed as the company’s processes are now stalled at this
Sustainability 2022,14, 10616 17 of 21
location, creating new problems. Participants in the study were also singled out: specialist
consultations and staff training. Summarizing the suggestions of the research participants,
it can be concluded that solving the LMCs problems in the field of storage requires not only
specialist consultations and staff training, but also a complex of innovative solutions such
as the use of rack systems with a rack truck, the application of a warehouse management
system with a barcode, and raw material management programs use, etc.
Summarizing innovative solutions and discussing the results of the interviews with
the administration and warehouse staff of LMC and their analysis, it can be concluded
that: (1) the work and processes of the company’s warehouse require modernization;
(2) The main problems identified are related to: manual work, lack of communication, heavy
workload of warehouse staff, lack of space, problems in the order collection process, various
errors in warehousing processes, security and inefficiency of warehouse processes. Some
of the problems became apparent during the pandemic; (3) warehousing processes meet
the needs of customers “well enough”, but not perfectly; (4) old methods and programs
are used in the storage work, due to which the warehouse processes are unproductive;
(5) just-in-time is used in the company as much as the specifics of production and activities
allow, and people are not in favor of the Lean method; (6) racks and rack loaders are
not used in the company, and the ABC method is used only to a small extent: for food
packaging and for the VIP customer; (7) the need for material planning (MRP) and/or
(ERP) enterprise resource planning systems of LMC would be; (8) warehouse management
system combined with bar code technology would be very beneficial for the company;
(9) the most important criteria for the improvement of storage processes would be: quality,
speed, efficiency, easy management, convenience, time saving, elimination of errors, price,
etc. After analysis of the obtained results, it can be stated that to solve the problems in the
LMC warehousing processes, complex innovative solutions are required, such as racking
systems with racking truck, warehouse management systems with barcode, a raw material
management program, a pick by voice system, MRP and ERP systems, while ABC, JIT, and
lean methods should be used.
5. Discussion and Conclusions
After the analysis of the warehousing process documents of the LMC, it can be stated
that the company has quite efficient quality-oriented warehousing logistics process tools.
A maintenance program for raw materials, supplies, and finished products is in place,
and storage process procedures are documented. It was found that all these measures
were effective 10–15 years ago and brought good performance to the company. However,
today, the company’s tools, including warehouse programs, the work of warehousing
processes, as well as the warehouse work strategy of the LMC are already unsuitable.
Customer requirements and preferences [
30
] are constantly changing, so new tools are
emerging in the world: systems, technologies [
23
], and methods to meet customer needs.
A company that does not use new tools to improve its performance will not be able to
remain competitive and continue to operate at the same level of productivity. In today’s
era of industrial economics, warehousing is a complex process with many moving parts
and is required to contribute productively to the success of supply chain management [
64
].
Technological innovations like digitalization and automation are transforming the logistics
industry. Supply chains are responding to new opportunities to provide digital services
with new business models, and logistics and transport processes are reorganized as part
of these changes [
65
]. According to El Hamdi and Abouabdellah [
66
], the digitalization
phase of traditional logistics solutions makes the logistics system more efficient and flexible
in the face of changes in the market and customer needs [
66
]. Digitized internal and
external logistics will provide an interconnected system, advanced information analysis
and prediction tools, a smart warehouse, and an intelligent transport system [
66
]. However,
it should not be forgotten that innovation is not just a new technology, but rather a set of
factors and actions leading to the improvement, creation, and implementation of processes
and more efficient satisfaction of needs [
67
]. It has been established that the activities of the
Sustainability 2022,14, 10616 18 of 21
warehouse of the LMC require new innovative solutions so that the warehousing processes
run smoothly in the production company, and that the warehouse, as an element of the
company and part of the supply chain, functions and performs its work qualitatively.
The limitation of this paper is that the selected research method does not produce fully
representative results because the basis of the qualitative interview was open-ended ques-
tions, which are expected to be as broad, comprehensive and open as possible, formulated
and presented by the research participant himself. Another limitation of this study is that
in order to present as many innovative solutions as possible, a quantitative data collection
method was needed to explain the topic in more detail (e.g., to create an information base,
to suggest ideas, identify benefits, etc.). Finally, due to the wide scope of the problem and
the preliminary nature of the analysis, the study was rigorously exploratory.
Warehousing plays an important role in the modern supply chain [
22
,
27
,
29
,
30
,
32
,
35
]
and in the company’s operations [
25
,
51
,
57
], as confirmed by most authors of scientific
articles. The role of warehouses in modern logistics is becoming increasingly important due
to the growing number of manufacturing companies, high customer needs, and growing
competition in Lithuanian and foreign markets. It has been analyzed that the problems of
warehousing logistics processes are related to the time of collection of warehouse orders, in-
efficient use of warehouse space, improper planning and utilization of warehouse capacity,
and use of inappropriate equipment. The scientific literature presents various solutions to
the problems of warehousing logistics processes, but the main ones are related to modern
technologies and methods. It has been established that the most suitable methods for
warehousing logistics process [
35
] improvement solutions in a manufacturing company
are the ABC method [
58
], the JIT method [
57
,
68
], and the lean method [
68
,
69
]. As for the
systems to solve complex company problems, these would be WMS warehouse manage-
ment systems, the pick by voice system [
53
], MRP, and ERP systems [
54
], RFID and barcode
technologies. In addition, tools without which storage assistance is not possible include
racks, rack loaders, and other equipment. Based on the analysis of the scientific literature,
the model consists of ten steps for a manufacturing company, which is a consistent and
systematic process that helps to: identify problems, find innovative solutions to those
problems, choose the best solution for improvement, and find ways to implement it.
An empirical research methodology has been developed for the implementation of
the processes, which consisted of a qualitative interview method. The presented analysis
revealed future research to develop this field for the development of innovative solutions
for the improvement of the storage processes as the warehouse connects suppliers and con-
sumers throughout the supply chain. Thus, this sector is in demand in both the Lithuanian
and international markets. As the aim of this study was to search out and to offer innovative
solutions for the improvement of the storage processes. Thus, summarizing the results of
the research, it can be concluded that solving the problems of LMC warehousing processes
and implementing improvements in warehousing requires staff training, specialist consul-
tations and also a complex of innovative solutions such as: using racking systems with a
racking truck, a warehouse management system with barcode, a raw material management
program, an application Pick by Voice system, MRP and ERP systems, and utilizing ABC,
JIT and Lean methods. Hopefully, this study will make a contribution to the warehousing
sector and for all storage processes. This study is only a preliminary investigation; further
and deeper research is needed, which we plan to develop in our future work. Perhaps
this analysis could encourage other scientists and researchers, as well as practitioners, to
discuss and perhaps to make appropriate decisions on how to achieve greater innovative
solutions for the improvement of the storage processes.
Sustainability 2022,14, 10616 19 of 21
Author Contributions:
Conceptualization, D.P., K.R. and R.P.; methodology, D.P., K.R. and R.P.; data
curation, D.P., K.R. and R.P.; writing—original draft preparation, D.P., K.R. and R.P.; writing—review
and editing, D.P. and R.P. All authors have read and agreed to the published version of the manuscript.
Funding: This research received no external funding.
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: MDPI Research Data Policies.
Conflicts of Interest: The authors declare no conflict of interest.
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