Lean concept implementation in the warehouse of the apparel industry

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Abstract
In the global economy, the apparel industry must outperform and improve the effectiveness and efficiency of its resources by implementing the lean concept. Waste as a non-added value was identified in one of the supply chain elements – the warehouse. Over time, it must be reduced to a minimum to minimize the company's cost burden and reduce complaints. Warehouse costs are part of logistics costs and have been part of Indonesia’s government since 2014, reaching 24% of Gross Domestic Product. By using the lean tools and methodology – DMAIC, 5Ws, and supported by simple software - Smartsheet and Excel, one of the apparel industries successfully achieved a decrease: overtime reduction 41.96%, customer complaints decreased 19.5%, and the accuracy of stock remained at a good performance 100%. Based on this result, lean concept implementation remains effective at eliminating waste in the warehouse.

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