Articles

Quantitative Analysis of Inventory Record Inaccuracy (IRI): A Case Study on Warehouse Stock Discrepancies

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Inventory Record Inaccuracy (IRI) presents critical challenges to warehouse operations by causing inefficiencies, financial losses, and diminished stakeholder trust. This study examines IRI at XYZ Warehouse through the analysis of Gross Variance and Net Variance, identifying a discrepancy rate of 0.53%, equivalent to 3,089 units or IDR 154,450,000 in potential financial losses. The findings emphasize the importance of accurate inventory management to mitigate these losses and improve operational efficiency. This study serves as a foundation for future research and interventions aimed at addressing IRI and its associated challenges.

Order Fulfillment Process Improvement in E-Commerce Warehouse: A DMAIC Approach for PT XYZ

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This research analyzes PT XYZ’s e-commerce fulfillment warehouse using the DMAIC (Define, Measure, Analyze, Improve, Control) methodology due to a shortfall in order processing, averaging 184.64 orders per shift versus a target of 250. The objective is to enhance operational efficiency and manpower productivity. Initial analysis identified significant inefficiencies and high variability in processing times due to Warehouse Management System (WMS) synchronization issues, manual rework, lack of standards, and non-value-adding activities. The improvement phase proposed solutions such as implementing a Pick-to-Light (PTL) system, WMS enhancements, standardized receipt picking, and incentive schemes. These improvements aim to reduce errors, optimize workflows, and increase employee productivity. The control phase includes comprehensive training plans, documentation, and monitoring tools to ensure sustainability and continuous improvement. Implementing these solutions is expected to increase order processing efficiency by 40-50%, build a more competitive and motivated workforce, and address issues between regular and freelance employees through targeted training and incentive schemes.