Warehouse Management and Order Picking Optimization in Spare Parts Distribution: An Empirical Study from Peru on Continuous Improvement Strategies

Small and Medium-sized Enterprises (SMEs) in Peru’s spare parts distribution sector face persistent inefficiencies in warehouse management and order picking, leading to increased operational costs and reduced service levels. Previous research has examined optimization techniques separately, yet their integrated application in this industry remains underexplored. This study implemented Systematic Layout Planning (SLP), multi-criteria ABC analysis, Methods Engineering, and Voice Picking to improve warehouse organization and streamline picking processes. The outcomes revealed a 47.8% decrease in picking time, an 88.86% reduction in picking mistakes, and a 43.26% increase in order processing efficiency, greatly improving service levels. These results enhance the existing knowledge of logistics in warehouses by supporting a systems approach model for SMEs that have comparable logistical issues. The study also highlights the importance of continuous improvement techniques in the workflow and resource distribution optimization process. More studies should be conducted about the prospects of modern technologies, like WMS and AI, in increasing efficiency and sustainability in operations within the industry.