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Improving Logistics Processes in a Warehouse in Wholesale Company

Student: Eva Klimova

Supervisor: Nataliya Alyamovskaya

Faculty: Graduate School of Business

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Year of Graduation: 2024

Current market realities force companies to not only reduce costs, but also increase operational efficiency. This can be achieved through improvements in all areas of the business, including logistics. One key area for improving operational efficiency in wholesale enterprises is warehouse logistics. By improving the logistics processes within the warehouse, companies can not only reduce the cost of operations but also make better use of available resources. For a trading company, the well-coordinated operation of the warehouse is one of the key factors determining its competitive position in the market. The ability to smoothly and efficiently supply goods to customers through the distribution network is essential for providing a high level of service at minimal costs, which is especially important for companies that rely on distribution. That is why logistics processes in the warehouse become crucial, and the warehouse, as a vital internal link in the supply chain, plays a role in coordinating and balancing supply and demand through the logistics of supply and distribution. It ensures an uninterrupted flow of products to consumers by keeping the necessary buffer of inventory, while maintaining the required service level. This research focuses on the study of opportunities to improve logistics processes in the warehouse of Smart Batteries LLC, a wholesale company operating in the rapidly growing market of batteries and energy storage systems. To achieve this goal, the following objectives were identified: 1. Analyze the economic and financial situation of the company to determine its position in the electric industry. 2. Analyze logistics activities to identify root problems related to cargo flow processing in the warehouse. 3. Study theoretical and empirical research, as well as scientific methods for improving warehouse logistics processes and individual elements of the warehouse system. 4. Develop a procedure for improvement and evaluate the economic feasibility of the proposed solution for Smart Batteries LLC. As a result of the work, a procedure has been developed to improve logistics processes in the warehouse. This includes the choice of a rational strategy for storing goods using appropriate storage systems, the use of product identification technology, and the implementation of a warehouse management system. In addition, as supporting measures, it has been proposed to develop a comprehensive system of performance indicators and improve cross-functional coordination in order to increase transparency and facilitate the exchange of operational data for effective planning of incoming and outgoing material flows. The developed procedure may have practical significance for modification and future use in other organizations. It can also serve as a basis for further empirical research. The economic viability of the proposed recommendations has been demonstrated through the evaluation of the net present value of investments and the use of a strategic profit model. The study consists of 169 pages, including appendices and 35 tables, as well as 51 figures. In this work, 86 sources of information were consulted.

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