Improving the inbound system at fulfillment centers
What strategies can be designed to eliminate non-unloaded rejected trucks at fulfillment centers
S.C. Zaal (TU Delft - Civil Engineering & Geosciences)
J.M. Vleugel – Mentor (Transport and Planning)
W.W.A. Beelaerts van Blokland – Graduation committee member (TU Delft - Mechanical Engineering)
D.L. Schott – Graduation committee member (TU Delft - Mechanical Engineering)
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Abstract
The continuing growing economy and increase in global trade has led the rapid growth of the e-commerce. The covid-19 pandemic has further contributed to this growth since in store-shopping was restricted. The growth of the e-commerce has forced logistic companies to continuously improve their supply chain in order to stay competitive and has also led to the increase of truck transportation as they serve as the primary mode of transporting products from suppliers to Fulfillment Centers (FCs) within the inbound system. This highlights the importance of truck logistics, which encompass all the different movements trucks make within a FC. Truck logistics have a significant impact on the flow of the inbound system as they proceed through the processes of the inbound system in chronological order. Therefore, poor organized truck logistics can have many consequences to the operational logistics of the inbound system and therefore impact the system performance of the inbound system. High congestion of trucks, high waiting times, delays in unloading trucks as a result lead to a poor overall system performance of the inbound system. A lot of literature studies have been done on improving the inbound system, but not focused at fulfillment centers. Also, none of these studies can be found on concerning the consequence of eliminating the rejection of non-unloaded trucks. This research addresses the research gap of improving the inbound system of FCs with the objective of eliminating the rejection of non-unloaded trucks and reducing the pressure on the waiting areas within the inbound system. By conducting a case study at bol.com and using their current state, a Discrete Event Simulation model for fulfillment centers is developed to measure, analyze and evaluate the impact of the increasing truck logistics on the system performance of the inbound system and to design strategies to eliminate the rejection of non-unloaded trucks. Seven strategies have proven to improve the system performance of the inbound system at fulfillment centers. An evaluation was performed with a Multi-Criteria Analysis in order to select the most appropriate strategy for the company.