The Logistics Reengineering Process in a Warehouse/Order Fulfillment System: A Case Study

The logistics reengineering process (LRP) is a useful industrial engineering and management technique for achieving significant improvements in operational efficiencies for products quality services in warehouse/order fulfillment system. In warehousing systems the picking process usually has a significant impact on logistic performance, customer service levels and costs, hence improvement activities are attractive and important. This chapter presents the application of an LRP process in an Italian distribution company, which is a distributor of home furnishings and health care products. In particular, the proposed optimization process is focused on the Order Fulfillment Process (OFP). The main aim of this chapter is to present a methodology to make an effective analysis of an OFP system and, mainly, to present the results, opportunities and criticalities arising from its application. The benefits are significant both in terms of traveled distance savings and manpower usage reduction. These results demonstrate that ‘‘soft’’ reengineering improvements can significantly affect processes, procedures, rules and strategies, can reduce logistics costs and improve customer service levels without introducing ‘‘hard’’ improvements and system modifications, e.g. new equipment, personnel, and machinery.