A Study on Smart Inventory Management in E-Commerce Warehousing: A Six Sigma-Based Process Improvement Framework

Abstract: The rapid rise of e-commerce has increased pressure on warehousing operations, where inventory accuracy is crucial for timely order fulfillment and cost control. Despite advanced Warehouse Management Systems (WMS), issues like misplacements, bin overstuffing, and picking errors persist. This study applies the Six Sigma DMAIC framework to analyze and improve inventory accuracy in e-commerce warehousing, using insights from a leading Indian e-commerce company and simulated operational data. Key issues were identified using Pareto analysis, with inventory misplacement accounting for over 40% of errors. Root causes were explored through Fishbone diagrams, 5 Whys, and FMEA. Solutions are proposed across people (training, SOP compliance), process (task validation, audits), and infrastructure (dynamic binning, visual aids), with control mechanisms such as KPI dashboards and scan enforcement. The study offers a scalable, data-driven approach to smart inventory management applicable to major platforms like Amazon, Flipkart, and Blinkit. Keywords: Smart Inventory Management; E-commerce Warehousing; Six Sigma; DMAIC; Inventory Accuracy; Issue Resolution Team (IRT); Warehouse Process Optimization.