The current warehousing processes are functioning, but outdated, and the management wishes to digitalize and improve warehousing operations in order to cope with growth in demand, and to eliminate existing problems. The new warehousing concept should entail integration into SAP, improve the flow of goods, increase space utilization, and facilitate raw material traceability.

Value stream mapping (VSM) is applied to analyze the as-is processes and flows. Using VSM results, planning data and in cooperation with the operational staff as well as IT experts, a new warehousing layout, new warehousing processes, requirements for new hardware (e.g. barcode scanners) and software interfaces (SAP) were collated in a new warehousing concept. In addition, the steps that must be taken to implement the concept as well as implementation risks are outlined in a comprehensive project plan.

The customer received a full analysis of warehousing operations, and corresponding improvement potential. From this, a new warehousing concept was developed. Its core components are: a new layout, leading to an increase of 37% in raw material storage capacities, better inventory organization, and goods flow; a hybrid plan of SAP-managed (95%) and non-SAP-managed inventories (5%), full SAP-based traceability of raw materials, and the introduction of barcode scanner-based, error-preventing processes for the warehousing team. In addition, further potential, e.g. supplier integration, was analyzed and further potential to improve the supply chain uncovered.