Streamlining Spare Parts Logistics: A Case Study on Warehouse Optimization and Continuous Improvement in a Peruvian Distribution Center

Carlos E. Rivas-Ortiz; Prof. Jonathan M. Blake

doi:10.64917/fbim-014

Authors

Carlos E. Rivas-Ortiz Logistics and Supply Chain Management Research Group, Universidad Nacional Mayor de San Marcos, Lima, Peru
Prof. Jonathan M. Blake Department of Operations and Information Management, University of Warwick, Coventry, United Kingdom

DOI:

https://doi.org/10.64917/fbim-014

Keywords:

Spare parts logistics, warehouse optimization, order picking, continuous improvement, distribution center, Peru, inventory management, supply chain efficiency, layout design

Abstract

This empirical study investigates the application of continuous improvement strategies to optimize warehouse management and order picking processes within a spare parts distribution center in Peru. The logistics of spare parts present unique challenges, including a vast number of stock-keeping units (SKUs), intermittent demand, and high customer service level expectations. Inefficient warehouse layout and picking routes can lead to significant operational costs, increased order fulfillment times, and reduced overall productivity. This research employs a multi-method approach, combining ABC analysis for inventory classification with Systematic Layout Planning (SLP) to redesign the warehouse layout. Data was collected through direct observation, historical order analysis, and operational time studies at a representative Peruvian company. The results demonstrate that a data-driven reconfiguration of the storage layout, based on product movement frequency, can yield substantial improvements. The proposed layout resulted in a calculated reduction in average order picker travel distance by 38%, which translates to significant time savings and increased picking capacity. The discussion contextualizes these findings within the broader literature on warehouse design and spare parts management, highlighting the practical implications for businesses in emerging economies. This study contributes to the field by providing a detailed, replicable methodology for warehouse optimization that can be adapted by other organizations facing similar logistical challenges.

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