The Impact of Order Characteristics Uncertainty on Different Configurations of the Outbound Logistics of a 3PL Warehouse

Abstract

There has been a growing interest in improving the operating efficiency of warehouses, which is one of the critical facilities used in the logistics sector. This thesis examines the impact of order characteristics on the performance of different configurations of the outbound logistics of a 3PL warehouse. A contingency approach combined with a proof of configuration method is used to answer this question. The contingency variables in this study are the order characteristics, which are uncertain for the future state of the newly built e-commerce warehouse Haaften III for Nedcargo Logistics, A third-party logistics provider in the Netherlands. Six contingency scenarios are chosen, and a model transforms them into experiments. Three different potential warehouse configuration models process these experiments, and their productivity performance is compared and analysed. Our results showed that the compactness of the layout, ABC-class-based storage and a new picking strategy, Star Aisle Batch combined with Singlepicks, provides the best productivity in each scenario. Next, between each scenario, the productivity is impacted differently. The productivity is higher if the order characteristics contain a low percentage of A-type products, the amount of colli is high, or orderlines per order are low. A change in configuration or strategy within each scenario also influences productivity differently. Lastly, it is also proved that the new proposed configuration and picking strategy can improve its current productivity by over 30%.