Lean-based improvement of a logistics process under growing demand

Abstract

This thesis explores the ongoing work carried out at an e-commerce company related to the Vendor Returns process, which manages the return of inventory from customers using the marketplace. The primary aim of the project is to improve and standardize this process by applying lean principles in order to reduce waste, increase efficiency, and adapt to the growing volume of returns. The analysis focuses on customer-owned products, which are returned due to low demand or expiration, and e-commerce company–owned products, which are either donated or discarded once expired. A small percentage of products are discarded when neither the customer nor the e-commerce company can make use of them. The thesis examines the current state of the Vendor Returns process, identifying key issues such as inefficiencies in managing increased return volumes, insufficient infrastructure, and high process variability. Lean principles are applied through tools such as 5S, Kaizen, and value stream mapping to detect bottlenecks, streamline workflows, and optimize storage management. For example, 5S is used to improve work- place organization and reduce unnecessary movement in the returns area, while Kaizen is employed to promote continuous, incremental improvements based on employee involvement and feedback. This practical approach ensures that the implemented solutions are effective and aligned with operational objectives. This thesis aims to provide actionable insights derived from the application of lean tools, with the objective of developing a more efficient and standardized process capable of adapting to future increases in return volumes. The ultimate goal is to establish a scalable solution that can be replicated across the e-commerce company’s global fulfillment network, enabling cost reductions, improved service levels, and the maintenance of a lean and flexible operation.