EFFICIENCY IMPROVEMENT OF WAREHOUSE OPERATIONS FOR SMES CASE STUDY: XYZ CO., LTD.

Abstract

This research aimed to 1) study the problems in warehouse operations and 2) improve the efficiency of warehouse management. Data were collected through in-depth interviews with one business owner and four relevant employees, together with direct observations of work operations over a period of four months. The data were analyzed using descriptive statistics, including mean and percentage. The findings revealed that the case-study auto repair shop had 504 inventory items, with the main problems arising from a lack of systematic work processes, operating procedures, and clearly defined responsibilities in warehouse operations. The researchers therefore improved the work processes by applying the 5S methodology, Visual Control, and the First-In, First-Out (FIFO) system to organize the warehouse and standardize the procedures for issuing inventory items. The results after the improvement showed that the average time required for issuing inventory items was reduced from 5 minutes per item to 1 minute per item, representing an 80% reduction. In addition, the frequency of emergency orders was reduced from 5 times per day to 1 time per day, resulting in a reduction in express shipping costs from 500 baht per day to 100 baht per day, representing an 80% cost saving. Furthermore, the implementation of 5S activities helped identify lost inventory with a total value of 50,000 baht. Therefore, the integration of basic tools, including 5S, Visual Control, and the FIFO system, provides practical guidelines that can be applied by other small and medium-sized enterprises (SMEs) facing similar problems.