Creating a Lean and Sustainable Warehouse with 5S in E-Commerce Operations Center: Trendyol Case Study

Year 2023, Volume: 10 Issue: 19, 131 - 150, 16.01.2024

İbrahim Çil , Damla Pınar , Alişan Araslı Abdulsamet Kurt Ayşe Nur Topcan

https://doi.org/10.54709/jobesam.1352883

Abstract

In the rapidly growing online economy, e-commerce companies are making special efforts to offer better shopping experiences and increase efficiency in order to remain competitive. In this context, one of the important trends emerging for sellers is the "lean e-commerce" approach, which is a model that facilitates their operations and provides faster service using fewer resources. The basic philosophy of lean is to do more with less. The lean e-commerce is a business strategy that simultaneously achieves efficiency, productivity and customer satisfaction in online sales operations. By automating repetitive tasks and using data to better focus resources, ecommerce teams not only reduce costs and increase efficiency, but they also become more agile. By focusing on lean operations, product offerings are quickly curated, and websites are customized focusing on the products buyers need. Therefore, the research problem that forms the basis of this study is how a warehouse can operate more efficiently, how to minimize waste and how to benefit from the 5S lean method as an effective solution. The study follows a case analysis method based on observation and information gathering. Each theoretical concept explained within the scope of lean production and 5S contributes to the study, individually and in collaboration, and makes a significant contribution to the realization of the case study. By implementing 5S in an e-commerce warehouse, problems in the warehouse are quickly identified and revealed, then the root causes are addressed, and their recurrence is prevented, thus the problems are solved effectively. If replenishment is required, things are not in place, things are done incorrectly or cause delays, all these problems are easily identified, visualized and solved quickly with 5S. Within the scope of this study, 5S studies carried out in the operations center of Trendyol, one of Turkey's leading companies serving in the e-commerce sector, are presented as a case study. The implementation stages of 5S in the company are discussed and the gains that

Keywords

5S, Lean warehouse management, E-Commerce Warehouses, E-Commerce Operation Center, Warehouse processes

Project Number

TYL-17 House Keeping

E-Ticaret Operasyon Merkezinde 5S ile Yalın ve Sürdürülebilir Depo Oluşturmak: Trendyol Örnek Olay İncelemesi

Abstract

Hızla büyüyen çevrimiçi ekonomide e-ticaret yapan firmalar, rekabetçi kalabilmek için daha iyi alışveriş deneyimleri sunmak ve verimliliği artırmak için özel çaba göstermektedirler. Bu kapsamda satıcılar için ortaya çıkan önemli trendlerden biri, operasyonlarını kolaylaştıran ve daha az kaynak kullanarak daha hızlı hizmet sağlamada bir model olan "yalın e-ticaret" yaklaşımıdır. Yalının temel felsefesi, daha az ile daha fazla yapmaktır. Yalın e-ticaret, çevrimiçi satış operasyonlarında da verimliliği, üretkenliği ve müşteri memnuniyetini aynı anda gerçekleştiren bir iş stratejisidir. E-ticaret ekipleri, tekrarlanan görevleri otomatikleştirerek ve kaynaklara daha iyi odaklanmak için verileri kullanarak maliyetleri azaltıp verimliliği artırmakla kalmaz, aynı zamanda daha çevik olurlar. Yalın operasyonlara odaklanarak ürün teklifleri hızlı bir şekilde düzenlenir, web siteleri alıcıların ihtiyaç duyduğu ürünlere odaklanarak özelleştirilir. Bu nedenle, bu çalışmanın temelini oluşturan araştırma problemi, bir deponun nasıl daha verimli çalışabileceğini, israfların en aza nasıl indirileceğini ve etkin bir çözüm olarak 5S yalın yönteminden nasıl yararlanılabileceğidir. Çalışmada gözlem ve bilgi toplamaya dayalı bir vaka analizi yöntemi takip edilmektedir. Yalın üretim ve 5S kapsamında açıklanan her bir teorik kavram tek tek ve iş birliği içinde, çalışamaya katkı yapar ve vaka çalışmasının gerçekleştirilmesine önemli katkı sağlar. Bir e-ticaret deposunda 5S'in uygulanmasıyla depodaki sorunlar hızlı bir şekilde belirlenip ortaya çıkarılır, ardından kök nedenler ele alınarak tekrar etmeleri önlenir ve böylece sorunlar etkin bir tarzda çözülmüş olur. İkmal gerekiyorsa, olması gereken şeyler yerinde değilse, işler yanlış yapılıyorsa ya da gecikmeye neden oluyorsa, 5S ile tüm bu sorunlar kolayca belirlenip, görsel hale getirilir ve hızlı bir şekilde çözülür. Bu çalışma kapsamında E-ticaret sektöründe hizmet veren ve Türkiye’nin önde gelen firmalarından Trendyol’un sipariş gerçekleştirme merkezinde gerçekleştirilen 5S çalışmaları vaka analizi olarak sunulmaktadır. Firmada 5S’in uygulama aşamaları ele alınmaktadır ve 5S’in firmaya sağladığı kazanımlar değerlendirilmektedir. Bu şekilde 5S Yöntemi israfları azaltmada verimliliği artırmada ve işyeri organizasyonunu düzenlemede önemli katkılar sağladığı sunulmaktadır.

Keywords

5S, E-Ticaret Depoları, E-Ticaret Operasyon Merkezi, Yalın Depo Yönetimi, Depo Süreçleri

Ethical Statement

Etik dışı bir durum yoktur.

Supporting Institution

DSM Gurup-Trendyol Ar-Ge Merkezi

Project Number

TYL-17 House Keeping

Thanks

Makale DSM Gurup-Trendyol Ar-Ge Merkezi tarafından yürütülen “TYL-17 House Keeping” nolu proje kapsamında hazırlanmıştır. Desteklerinden Dolayı yazarlar Trendyol Ar-Ge Merkezine teşekkür ederler.

References

• Goyal, S. Sergi, B.S., ve Esposito, M. (2019). Literature Review of Emerging Trends And Future Directions of E-Commerce in Global Business Landscape. World Rev. Entrep. Manag. Sust. Dev., 15, 226–255.
• Guthrie, C., Fosso-Wamba, S., ve Arnaud, J. B., (2021). Online Consumer Resilience During A Pandemic: An Exploratory Study Of E-Commerce Behavior Before, During And After A COVID-19 Lockdown. J. Retail. Consum. Serv., 61, 102570.
• Von Briel, F., (2018), The Future Of Omnichannel Retail: A Four-Stage Delphi Study. Technol. Forecast. Soc. Chang., 132, 217–229.
• Lukic, R., (2012). The Effects Of Application of Lean Concept in Retail. Econ. Ser. Manag., 15, 88-98.
• Myerson, P., (2017), Lean Retail. In The Routledge Companion to Lean Management; Netland, T.H., Daryl, J., Powell, D.J., Eds.; Routledge: New York, NY, USA, pp. 413–421.
• Cil, I., Erdil, N. O., Kilic, T., ve Kosar, B. (2016). Lean logistic network design and analysis with Anylogic. In LM-SCM 2016 XIV. International Logistics and Supply Chain Congress (p. 523).
• Cil, I., Demir, H. I., ve Yaman, B., (2020). Lean organization in the 2020s and a cast study about logistics and supply chain management in Toyota Boshoku Turkey. In Global perspectives on green business administration and sustainable supply chain management pp. 276-315. IGI Global.
• Bhasin, S., (2015). Clarification of the Lean concept. In Lean Management beyond Manufacturing: A Holistic Approach; Bhasin, S., Ed.; Springer: Cham, Switzerland, pp. 11–26.
• Womack, J.P., ve Jones, D.T., (2005), Lean consumption. Harv. Bus. Rev., 83, 58–68.
• Naruo, S., ve Toma, S.G., (2007). From Toyota Production System to Lean retailing. Lessons from Seven-Eleven Japan. In Advances in Production Management System; Olhager, J., Perrson, F., Eds.; Springer: Boston, MA, USA, 246, pp. 387–395.
• Imai, M. (2012), Gemba Kaizen: A Commonsense Approach to a Continuous Improvement Strategy, 2nd ed.; McGraw-Hill: New York, NY, USA, pp. 239–248.
• Pereira, C.M., R. Anholon, I.S., Rampasso, O.L.G., Quelhas, W.L., Filho, ve L.A.S. Eulalia, (2020), Evaluation of lean practices in warehouses: analysis of Brazilian reality, Int. J. Prod. Perform. Manag., 70 (1), pp. 1-20, 10.1108/IJPPM-01-2019-0064
• Abushaikha, L. ve Towers, N., (2018); Improving distribution and business performance through lean warehousing. Int. J. Retail Distrib. Manag., 46 (8), pp. 780-800
• Eker, A. F., Çil, A. Y., ve Çil, İ. (2022). Capacitated vehicle routing problem with simulated annealing algorithm with initial solution improved with fuzzy c-means algorithm. Journal of the Faculty of Engineering and Architecture of Gazi University,37(2), 783-798.
• Hübner, H., ve Kuhn, J., (2016). Last mile fulfilment and distribution in omni-channel grocery retailing: a strategic planning framework. Int. J. Retail Distrib. Manag., 44 (3), pp. 228-247
• Bozer, Y.A., (2012). Developing and Adapting Lean Tools/ Techniques to Build New Curriculum/Training Program in Warehousing and Logistics Report University of Michigan, July, pp. 1-37
• Phogat, S., (2013). An introduction to applicability of lean in warehousing, Int. J. Latest Res. Sci. Technol., 2 (5), pp. 105-109
• Mou, S. Robb, D.J. ve DeHoratius, N., (2018), Retail store operations: Literature review and research directions. Eur. J. Oper. Res., 265, 399–422.
• Kroes, J.R., Manikas, A.S., ve Gattiker, T.F. (2018), Operational leanness and retail firm performance since 1980. Int. J. Prod. Econ, 197, 262–274.
• Rashid, N. M., Ngalawa, F., ve Cil, I. (2016). Comparative study of logistic industry of Tanzania and Turkey. International Journal of Operations and Logistics Management, 5(2), 74-82.
• Bloom, J.D. ve Hinrichs, C.C. (2017), The long reach of Lean retailing: Firm embeddedness and Wal-Mart’s implementation of local produce Sourcing in the US. Environ. Plan., 49, 168–185.
• Wright, C. ve Lund, J. (2006), Variations on a Lean theme: Work restructuring in retail distribution. New Technol. Work Employ, 21, 59–74.
• López-González, A. Lois-González, R.C. ve Fernández-Casal, R, (2013), Mercadona (Spain): A retail model in expansion. Int. J. Retail Distrib. Manag., 41, 6–26.
• Onetto, M. (2014), When Toyota Met E-Commerce-Lean at Amazon. McKinsey Q, 41, 1–7.
• Robinson, N. (2021) How Zara Used Lean to Become the Largest Fashion Retailer. Available online: https://www.linkedin.com/pulse/how-zara-used-lean-become-largest-fashion-retailer-nathan-robinson/ (accessed on 18 July 2023).
• Domingo, T.M. (2013), The Adoption of Lean Techniques to Optimize the On-Shelf Availability of Products and Drive Business Performance in the Food Industry: A South African Manufacturing and Retail Case Study. Masters’s Thesis, University of Cape Town, Cape Town, South Africa.
• Evans, J.R. ve Lindsay, W.M. (2015), An Introduction to Six Sigma ve Process Improvement, 2nd ed.; CENGAGE Learning: Stamford, CT, USA, pp. 65–198.
• Özkavukcu, A. ve Durmuşoğlu, M.B. (2016), Product development by Hoshin Kanri approach: An application in retail sector. Sigma J. Eng. Nat. Sci, 34, 563–575.
• Eklund, J. (2017), Lean in Retail—Implementation in Stores. In Proceedings of the NES2017 Abdelhadi, A. (2021), Applying Lean manufacturing to retail business to prevent the spread of COVID-19. Acad. Strateg. Manag. J, 20, 1–5.
• Sobanski, E. B. (2009). Assessing Lean Warehousing: Development and Validation of Alean Assessment Tool--a Doctoral Dissertation (Oklahoma State University).
• Jones, D. T., Hines, P., ve Rich, N. (1997). Lean logistics. International Journal of Physical Distribution ve Logistics Management, 27(3/4), 153-173.
• Cil, A. Y., Abdurahman, D., ve Cil, I. (2022). Internet of Things enabled real time cold chain monitoring in a container port. Journal of Shipping and Trade, 7(1), 1-26.
• Michael, E.P. (1985) Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, New York, pp. 3-52, Chap. 1.
• Sangode, PB., (2018). Impact of 5s Methodology on the Efficiency of the Workplace: Study of Manufacturing Firms, Internatıonal Journal of Research in Commerce Ve Management, Volume 9, Issue 12, Available at SSRN: https://ssrn.com/abstract=3343453
• Rizkya, I., Sari, R. M., Syahputri, K., ve Fadhilah, N. (2021). Implementation of 5S methodology in warehouse: A case study. In IOP Conference Series: Materials Science and Engineering, 1122, 1, p. 012063). IOP Publishing. Krajčovič, M., Gabajová, G., Furmannová, B., Vavrík, V., Gašo, M., & Matys, M. (2021). A case study of educational games in virtual reality as a teaching method of lean management. Electronics, 10(7), 838.
• Soliman, M. (2014). The Seven Deadly Wastes and How to Remove Them from Your Business: The Heart of the Toyota Production System, ISBN-13, 979-8688909258, Available at SSRN: https://ssrn.com/abstract=3785605.
• Gergova, I. (2010). Warehouse improvement with lean 5S: A case study of Ulstein Verft AS (Master's thesis, Høgskolen i Molde).
• Sarkar, D., (2006). 5S for Service Organizations and Offices. A Lean Look at Improvements. Milwakee: Quality Press.
• Vajna, I., ve Vajna-Tangl, A. (2015). The comparison of the different ways of the introduction of the 5S method in practice and the effect on the productivity and the accounting information.
• Ridzwan, M. K. I. M., Muhammad, N. A., Ab-Samat, H., ve Chin, J. F. (2023). Development of 5S modules for service sector. In AIP Conference Proceedings (Vol. 2741, No. 1). AIP Publishing.
• DiBarra, C. (2002). 5S-A Tool for Culture Change in Shipyards. Journal of Ship Production, 18(03), 143-151.
• Madhani, P.M. (2020). Performance optimisation of retail industry: Lean Six Sigma approach. ASBM J. Manag., 13, 74–91.
• Netland, T.H, ve Powell, D.J. A (2017). Lean world. In The Routledge Companion to Lean Management; Netland, T.H., Powell, D.J., Eds.; Routledge: New York, NY, USA, 2017; pp. 465–473.
• Sorooshian, S., Salimi, M., Bavani, S., ve Aminattaheri, H. (2012). Case report: Experience of 5S implementation. Journal of Applied Sciences Research, 8(7), 3855-3859.
• Wani, S., ve Shinde, D. (2021). Study and Implementation of ‘5S’Methodology in the Furniture Industry Warehouse for Productivity Improvement. International Journal of Engineering Research & Technology, 10(08), 184-191.
• Chero-Alvarado, V., ve Panchana, A. (2019). Application of the 5S methodology in line number# 1 of classification and packaging of a shrimp packing company located in Duran. Journal of Asia Pacific Studies, 5(3).
• Randhawa, J. S., ve Ahuja, I. S. (2018). An evaluation of effectiveness of 5S implementation initiatives in an Indian manufacturing enterprise. International Journal of Productivity and Quality Management, 24(1), 101-133.
• Kennedy, I., Plunkett, A., ve Haider, J. (2013). Implementation of lean principles in a food manufacturing company. In Advances in Sustainable and Competitive Manufacturing Systems: 23rd International Conference on Flexible Automation & Intelligent Manufacturing (pp. 1579-1590). Heidelberg: Springer International Publishing.
• Lan, H. L., Hai, D. T. T., ve Minh, T. T. H. (2021). Enhancing Competitive Advantage in These Pandemic Times Through 5S Concept: The Case of a Rubber Company in Vietnam. IUP Journal of Supply Chain Management, 18(3), 7-20.
• Espinoza-Camino, P., Macassi-Jaurequi, I., Raymundo-Ibañez, C., ve Dominguez, F. (2020). Warehouse management model using FEFO, 5s, and chaotic storage to improve product loading times in small-and medium-sized non-metallic mining companies. In IOP Conference Series: Materials Science and Engineering (Vol. 796, No. 1, p. 012012). IOP Publishing.
• Siva, R., Purusothaman, M., ve Jegathish, Y. (2017). Process improvement by cycle time reduction through Lean Methodology. In IOP Conference Series: Materials Science and Engineering (Vol. 197, No. 1, p. 012064). IOP Publishing.
• Cagliano, A.C., Grimaldi, S., Schenone, M. (2018), “Proposing a New Framework for Lean Warehousing”, Department of Management & Production Engineering, Politecnico di Torino.
• Randhawa, J. S., ve Ahuja, I. S. (2017). 5S–a quality improvement tool for sustainable performance: literature review and directions. International Journal of Quality & Reliability Management, 34(3), 334-361.