Central Warehousing and Omni channel logistics strategy : A case study of baby products provider and clothing retailer

Central Warehousing and Omni channel

logistics strategy

A case study of baby products provider and clothing retailer

MASTER THESIS WITHIN: Business Administration NUMBER OF CREDITS: 30

PROGRAMME OF STUDY: ILSCM AUTHOR: Mansoor Ahmed Gondal JÖNKÖPING May 2020

Title: Central Warehousing and Omni channel logistics strategy: A case study of baby products provider and clothing retailer Author: Mansoor Ahmed Gondal

Tutor: Michal Zawadzki Date: 2020-05-18

Key terms: Retailing, Multi & Omni channels, Warehouse management, ERP, WMS, RFID

Abstract

Background: Retailing industry has been growing all around the world tremendously. We will see a remarkable change and improvement in clothing and baby products retailing industries in Sweden. Previously, companies either try to sell through traditional brick and mortar physical stores or online. But since the last decade, to become successful company in new global world, companies realize the fact that they need to combine the strategy of selling through different channels. In plain words the integration of these channels is referred as an omni-channel. Combining the different selling strategies and offering through different mode of channels raises the need for enhanced performance management throughout the supply chain. Within supply chain, warehouse is a crucial element and due to shift in strategies it is the most affected section. An efficient warehouse design is become essential in order to get performance and cost-effective benefits.

Purpose: The purpose of this study is to analyze the impacts of having omni channel

strategy on warehouse management. How it affects the overall working of warehousing, and influence their planning, need for improvement, integration and optimization. Further,challenges that a central warehouse faces in accordance to meet new demands and needs, raised due to omni channel strategy e.g. buy anything from anywhere at any time, could be explored along with their possible solutions.

Method: An exploratory study is conducted, with qualitative case study methodology. Primary data with semi-structured interviews were considered to be main data collection method.

Conclusion: The author has founded challenges that central warehouse faces during its

operational activities. Challenges that are identified in central warehouse operational activities with reference to omni channel logistics strategy are human errors, additional work, large and mix pallets, barcoding, ERP and WMS low level integrated systems, unsuitable warehouse design, incompatible picking gears, ineffective automated packing machine and shipping. But these problems can be solved by having optimal integrated ERP system, RFID technology, new improved information technology, improved warehouse layout design and using advanced picking gears.

3 | P a g e

I would like to express my earnest gratitude to my thesis supervisor, Michal Zawadzki, for his patience and guidance. Due to his believe on me, allowed me to surpass my expectations by offering me his constant support throughout these past months.

Above all, I would like to thank Almighty Allah for blessing me with everything especially an endearing baby boy. My heartiest gratitude goes to my mother and my lovely wife, this would not be possible without her continuous support during these hard months and for motivating me to leave my comfort zone and test myself. I would not be here today, if my mother’s prayers are not with me during every thick and thin. Lastly, I would also like to thank my managers who have supported me, during this whole period, to keep going on despite all hardships.

Mansoor Gondal

4 | P a g e

1.1. Background ... 07

1.2. Problem discussion ... 08

1.3. Purpose and Research Questions ... 09

1.4. Delimitations ... 10 1.5. Thesis outline ... 11 2. Theoretical Framework ...

12

b. E-commerce (Online) Retailers ... 13

c. Multi-channel Retailers ... 13

d. Omni Channel Retailers ... 14

• Order Fulfillment ... 16

• Customer Expectations ... 16

2.2. Central Warehouse ... 16

a. Warehouse Layout ... 17

b. Central Warehouse Operations ... 18

I. Inbound ... 19

• Receiving ... 20

• Sorting ... 20

• Put away ... 21

II. Outbound ... 21

• Picking and Scanning ... 22

• Packing & Shipment ... 22

III. Returns ... 23

2.3. Warehouse Management Software (WMS) ... 23

5 | P a g e 3.3. Research Strategy ... 26 3.4. Case Study ... 27 3.5. Collection of Data ... 27 a. Interviews ... 27 b. Secondary Data ... 28

3.6. Empirical Data Analysis ... 29

3.7. Trustworthiness ... 30 a. Construct Validity ... 31 b. Internal Validity ... 31 c. External Validity ... 31 d. Reliability ... 32 4. Empirical Findings ...

33

4.2. Supply chain characteristics ... 34

a. Products Variety ... 34

b. Paying and receiving ... 35

c. Supplier Interactions ... 36

d. Order Fulfilment Structure ... 36

4.3. Warehouse Operations ... 37

4.4. Inbound ... 39

a. Goods arrive ... 39

b. Sorting ... 40

c. Bin and Racking ... 41

4.5. Outbound ... 42

a. Order Picking and Scanning ... 42

6 | P a g e

5.1. Goods Arrive ... 46

5.2. Sorting ... 48

5.3. Bin & Racking ... 49

5.4. Order Picking and Scanning ... 51

5.5. Packing and Shipping ... 52

5.6. Returns Goods ... 54

5.7. ERP or Warehouse Management System (WMS) ... 55

5.8. RFID Technology ... 57

5.9. Integrated ERP system ... 57

5.10. New improved Information Technologies ... 58

5.11. Suitable Warehouse Design ... 58

5.12. Advanced Picking Equipment ... 59

6. Conclusion and Discussion ...

61

6.1. Fulfilment of Purpose ... 61 6.2. Managerial Implications ... 62 6.3. Limitations ... 62 6.4. Future Research ... 63 References ...

64

70

72

74

7 | P a g e

1. Introduction

This section introduces the main topics. To start with, background information is explained to deliver context to information and then problem statement along with purpose and research questions followed by delimitations.

1.1. Background

Retailing industry has been growing all around the world tremendously especially we saw a remarkable changes and improvements in clothing and baby products retailing industries in Sweden (LaSalle, Hultman et al., 2013). Retailing sector is very different place in 2007 with reference to 1999 (Collins, Mcgoldrick et al., 2007). Customers changing needs and demands evolve the retailing sector accordingly. Due to this fact the upcoming retailing sector will become a different one than the one we have in last few years (Collins et al., 2007). The immense expansion of internet access and usage and inception of new technologies assist customers to order directly and have it delivered to their doorsteps within shorter spam of time. Having an easy access of customer to market, product and customization knowledge make the demands towards customer oriented rather than retailing oriented. That is why retailer’s role has been changed due to shift in customer behavior, demands and trends.

Previously, companies either try to sell through traditional brick and mortar physical stores or online. Players that are operating under traditional ways of business needs to have new and upgraded solutions for supply chain if they want to acquire a place in online business (Gehring, Delfmann & Albers et al. 2002). But since the last decade, to become successful company in new global world, companies realize the fact that they need to combine the strategy of selling through different channels. This will enter to the multi-channel usually referred as “Brick & Clicks” (Collins, Mcgoldrick et al., 2007). The term multi-channel was established around mid of 20th century where a retailer at least chooses two channels of sales for its offered services or products. The main purpose for this kind of strategy was to fulfill customer changing demands, satisfaction level and to address their changing behavior along with making new customers to increase turnover (Lewis, 2014).

But at that time these different channels were functioning separately. Then later with inception of new technology and better logistics support integration of these channels occurred which would lead to shortage delivery time to customers. Combining physical store with online sales allows retailers to overcome a lot of short comings in their structure of business (Lewis, 2014). This would lead to the enhanced form of collaboration and integration among the different sales channels. New technological advancements, customer centric focus strategies and advancement in logistics would allow these multi-channel operators to take a more integrated form which now we known as omni

8 | P a g e

channels (Lewis, 2014). In plain words the integration of these multi-channels is referred as an omni-channel. Combining the different selling strategies and offering through different mode of channels raises the need for enhanced performance management throughout the supply chain. Therefore, warehousing plays a very vital role in any supply chain because it creates a linkage of material and information flow among supplier and customer. Companies, in order to maximize customer service levels, changes their value proposition graphs (Rama, Subramanya, 2012). Within supply chain, warehouse is a crucial element and due to shift in strategies it is the most affected section (McGinnis, Gu et al., 2007). An efficient warehouse design is become essential in order to get performance and cost-effective benefits. Consequently, in order to experience highly functional omni channel logistics strategy, having an integrated and optimized warehouse facility is the key factor. But, omni channel retailers are facing severe hurdles regarding building an efficient and progressive inventory and logistics structure in order to satisfy consumer needs and wants (Monahan & Chiang et al., 2005).

1.2.

Problem discussion

Supply chain and logistics are considered to be the main pillar of omni channel strategy. Through this companies are enabled to provide under omni channel strategy continuous cost-effective deliveries to customers with personalized and flexible service fulfilment (Kraemer, Dahiya, & Yee, 2015). Customers new demands and needs e.g. easy access to product/services, small orders for same day delivery and order fulfillment across all the channels in accordance with customer satisfaction and expectation, puts pressure on retailers to make improvements constantly. In result of which a pressure ascertains on central warehouse to perform more efficiently (McGinnis, Gu et al., 2007). Omni channels comes with the assumption that you can buy anywhere and anytime. This anywhere, anytime assumption put retailers into many difficulties regarding warehouse management i.e. stock management, inventory management, warehouse design, sorting, picking order fulfillment and shipping optimization. In warehousing its design and keeping low level of inventory in accordance to order fulfillment and on time delivery is the ultimate goal.

In accordance to increased customer expectations and satisfaction level regarding omni channel facilities- keeping in view the fact that there is a drastic change in retail environment- and their impact on the traditional warehouse operational management and developments warehouses made during the period, this thesis will investigate the challenges central warehouses face during this transition and how they overcome them.

The existing literature is mostly addressing the problems that companies faced regarding the stores or online operations separately and to specific field of business when it comes to the warehouse operations or warehouse management system. According to Kembro, Norrman & Eriksson (2018) it is eminent that warehousing is very crucial for omni channel logistics, but the existing available literature is not sufficiently advanced as compare to omni channel retailing or logistics. Even though the big companies that are operating on all available channel are not truly omni channel oriented and still called as multi-channel. Consequently, having a complete integration among all

9 | P a g e

the channels of operation is still required in reference to omni channel retailing and its fulfillment with optimized warehouse operations. Therefore, the theory of omni channel in view of warehousing still needs to be address further. That is why the author finds a gap in the literature which allows him to focus on to investigate the challenges that a central warehouse of baby products and clothing retailer faces during the transition of omni channel logistics strategy. Plus, the author -as an employee of case study company- during the previous few years observed and experienced tremendous changes within the central warehouse layout and operational activities i.e. automatization, integration, and optimization, in result of adaptation of omni channel logistics strategy. This also encourages the author to further study and understand the phenomenon that what sort of challenges a central warehouse deals with when a company adopt omni channel logistics and what needs to be done to overcome such challenges.

1.3. Purpose and Research Questions

The purpose of this study is to analyze that how omni-channel logistics strategy affects the warehouse activities or operations and what are the impacts on warehouse operations when a company opts omni channels to target market.

In the pursuit of this purpose a single case study research to find out challenges and their remedies a central warehouse faces during the achievement of effective and efficient omni channel logistics will be conducted in collaboration with a partner company A. The company has the desire to operate under fully functional omni channel customer base, where customer can buy from one channel (mobile/online), deliver it through some other channel (home delivery) and return it through another channel (at store) etc. For this purpose and to achieve fast and accurate order fulfillment, the company wants to further optimize and integrate its central warehouse operations. Omni channel has multiple implications on warehouse activities and studies continuously forcing the facts towards alteration of warehouses in this certain framework (Kembro, Norrman & Eriksson et al. 2018). By conducting research on finding central warehouse challenges and their remedies regarding omni channel customer base fulfillment, the author hopes to contribute to existing warehousing and omni channel retailing theory. The author’s concluded results, by focusing on them, the thesis could be helpful to any other company that is investigating improvements in central warehouse activities or as is it to the retailer that is looking for transition towards omni channel logistics for new customer base. Furthermore, through this study, the purpose is to develop enhance insight that how warehouse operations or activities affected and what sort of challenges occur during the pursuit of integrated omni channels.

10 | P a g e

Following research questions will be researched and answered in this study and thereby fulfill the purpose:

1. What sort of challenges a central warehouse faces with respect to its operations, when a baby products and clothing retailer uses omni channel logistics strategy?

2. How these challenges could be managed in a central warehouse by the baby products and clothing retailer, who is utilizing omni channel logistics strategy?

1.4. Delimitations

This thesis will focus on a central warehouse of a specific retailer that deals in general merchandises. The retailer operates under omni channel strategy through more than one channel and with one of the channel is being e-commerce. The main focus will be on general merchandise products that come under the definition of retailing. Consequently, products that are manufactured by the company itself will not be considered. Also, products that are delivered directly from third party or supplier to customer as dropships and never enters warehouse will be excluded from this study.

Furthermore, the thesis will have focus on low level order picking system and B2B order fulfillment. Therefore, store orders that are mainly to maintain their limited inventory are not bring into focus. The thesis will also consider high level and automation orders into consideration as to high light the technological advancements and requirements through system provision.

Aim of the focus will remain on the fact that how omni channel logistics strategy affects warehouse operations. Because as of today, it looks like warehouse operations were affected by a lot of other factors than what omni channel strategy can cover e.g. management of own manufactured products etc. Consequently, the idea is to identify the changes, either that has been done or will consider in future, occur due to omni channel strategy to provide seamless order fulfillment and efficient return flow system. This will lead to our main thesis purpose to explore these changes and to recognize what sort of challenges company faces during the transition of these changes and how to overcome these challenges.

11 | P a g e

1.5. Thesis outline

Introduction

•This section introduces the main topics. To start with, background information is explained to

deliver context to information and then problem statement along with purpose and research questions followed by delimitations.

Theoretical framework

•This section consist of theories that related to the purpose of this research. To start with an

outline is given to explain about different ideas that will be used in this study and about omni channel and its relationship with warehousing. Furthermore, it describes the characteristics of retailers and industry. At the last, existing theories within warehousing, warehouse operations and warehouse softwares are presented.

Methodology

•This section explores the methods that author used during this research. It provides details of

how study was designed and conducted. Furthermore, the research approach is explained with regards to important issued i.e. trustworthiness. Lastly, empirical analysis of data is described in this section.

Empirical data

•Following chapter comprised the empirical findings gathered during data collection process.

Firstly, a brief description of case company and key aspects were discussed and lately a comprehensive overview of company’s central warehouse activities were presented.

Analysis

•This section analyses the empirical data and two research questions are answered with the

help of theoretical framework and empirical findings. By using Ishikawa or Fishbone diagram, first question has been analyzed and answered. Challenges are recognized in each

warehouse activity from the analysis of first research question, along with, introduction of challenges that are created by omni channel strategy. From the analysis of second research question numerous improvement issues are identified to overcome the challenges that are identified in first research question.

Conclusion & Discussion

•The following section concludes the research with discussion based on theoretical framework

and empirical findings. The purpose for this section is to justify the fulfillment of author’s study purpose by providing answers to research questions. Moreover, this section delivers an overview of study limitations, managerial implications along with possibilities of future research.

12 | P a g e

2. Theoretical Framework

This section consist of theories that related to the purpose of this research. To start with an outline is given to explain about different ideas that will be used in this study and about omni channel and its relationship with warehousing. Furthermore, it describes the characteristics of retailers and industry. At the last, existing theories within warehousing, warehouse operations and warehouse softwares are presented.

Outline

Following theoretical framework is outlined in a way to understand and briefly explain the ideas that are going to be covered under this study. In this regard, retailing and its different types- based on selling strategies and different channels used- are briefly described especially omni channel retailers. The idea is to build a base line for the term omni channel- which is basically an assimilation of traditional and online retailing. Under the following study, the main focus is on central warehousing operations and its activities with reference to omni channel logistics strategy. That is why, a brief explanation of the idea i.e. central warehouse is given in regard to warehouse design (layout), operations and information technology. These aspects of central warehouse are taken into consideration because these ideas will help to build understanding that how omni channel logistics strategy is corelated to central warehousing and how omni channel has an impact on these areas of warehouse. Furthermore, information technology i.e. warehouse management system, barcoding and scanning are explained here as these are main tools to manage almost all of warehouse activities. Consequently, to better understand the term omni channel in regard to retailing and logistics, we need to go through with different types of retailing and to central warehouse different aspects.

2.1. Retailing

“Activities that are involved in the selling of goods to ultimate consumers for personal or household consumption are called retailing.” (Retailing n.d.). Basically, retailers buy stuffs i.e.

products and services from original manufacturers or from wholesalers, agent, importer or other retailer as well and resell them into the market to consumers. Globalization and massive advancement in the field of information technology have a massive impact on the development of society (Weiland, 2016), which lead to highly knowledgeable customers. These facts change customers’ demands and satisfaction levels. Now customer is more concerned about the fast deliveries and looking forward towards the right product at right time to their doorstep. For that

13 | P a g e

matter, retailers need to be more efficient and faster to provide these facilities otherwise they will lose the market to someone else who is more efficient in that manner (Diamond et al., 2006). New ways and methods (channels) to reach potential customers have resulted in gross increase in sales (Weiland, 2016). This increase in sales automatically assert pressure on warehousing to adopt more efficient, effective and optimized ways of operations to satisfy customers. When we talk about baby products and clothing there are certain things associated to them i.e. impulse purchasing, short life cycle and less stability. Consequently, the retailers usually buy and sell the products more often and have in stock the products that are not in stock before. This will ascertain a pressure on retailers to make planning for replacement, assortment, and allocation (Krupnik et al., 2015). This depicts that smart, integrated and optimized warehousing is become key factor for retailers now a days.

a.

Traditional Retailers

The traditional retailers have Bricks and Mortar stores, where products and services offered to customer face to face (Murphy, 2019). Consequently, in traditional retailing customer can view and analyze the products and services directly from the shelves. In traditional retailing, the physical possession of the product is transferred when the terms of transactions are agreed upon (Ward et al., 2001). Traditional retailers acquire physical infrastructure i.e. warehouse, stores and trucks which needs heavy investment and capital (Rigby, 2011).

b.

E-commerce (Online) Retailers

E-commerce or online retailing establishes the selling of merchandise, articles, and products via an online sales channel. E-commerce retailers can operate without owing the expensive infrastructure (Rigby, 2011). Mainly, they outsource these operational areas i.e. warehousing and shipment etc. Similarly, the transaction cost for online retailing is much lesser than the traditional retailing as minimal search is required (Ward et al., 2011). Commonly, Online retailers’ experiences much higher number of returns than the traditional bricks and mortar retailers. But many of these products could be replaced and can be resold after quality control checks (Napolitano, 2013). Online retailers, likewise, traditional retailers use only one channel i.e. website and stores respectively, to approach customers (See Exhibit 1.1)

c.

Multi-Channel Retailers

Selling products/services through at least two or more different channels is called multi-channel (Lewis, 2014). The main key in these channels are they act separately and are not connected with each other. It is like every channel have their own management strategies and customer may not find same products or services on each channel. The basic purpose to have more than one channel is to increase the number of sales, acquiring new customers and to meet the changing requirements of customers demand. Through this retailer can provide a large variety of products to customers and supplement the existing product lines that has been offered brick and mortar stores (Lewis, 2014).

14 | P a g e

Having a multi-channel approach allows retailers to overcome the shortcomings a company have between different channels. The companies attain economies of scale through this strategy and do not need to build and invest on physical stores to make the presence in a certain area or country. The next logical evolutionary stage of multi-channel approach is considered to be omni channel. This stage requires all the previously sales channels- working under multi-channel strategy- to come together into a single seamless channel of product flow (See Exhibit 1.1). The product flow should be designed under consideration not to just provide products to its customers but also give an enhanced customized and unique shopping experience (Kraemer, Dahiya, & Yee, 2015).

Exhibit 1.1: Types of retailers with respect to usage and combination of channels

Adapted from OMNI-CHANNEL LOGISTICS: A DHL perspective on implications and use cases for the logistics industry (p. 04), by D. Kraemer, T. Dahiya, P.M. Yee, 2015 by DHL Customer Solutions & Innovations

d.

Omni Channel Retailers

Once online and physical stores were operated separated in different silos but combining them would increase customer willingness and intension to purchase and changes the perception about the quality and product (Palmatier, Sivadas, Stern & El-Ansary, 2019). Multi-channel customer is mainly defined as design, deployment, coordination, and evaluation of channels to enhance

customer value through effective customer acquisition, retention, and development (Kannan,

Inman & Verhoef et al, 2015). Therefore, channels are considered to be the customer contact point and interaction center. Omni channels environments are mainly put more attention to make interplay between channels and brands (Kannan, Inman & Verhoef et al, 2015).

Now a days, the retail industry has been changed completely. At Present, digitalization enables customer to become more empowered and well knowledge than ever before, which creates a modern times term called “omni channel shopper” (See exhibit 1.2). These omni channel shoppers equipped themselves with cell phones and internet, which allow them to be more informed, market oriented and well knowledge. These attributes make customers more powerful in respect to their choices, to find best available deals and to expect to receive all buyings to their desired time and destination (Kraemer, Dahiya, & Yee, 2015). Such level of expectations drives retailers to adopt

15 | P a g e

and explore new ways of supply chain and logistics because standard traditional or multi-channel approach cannot strive the customized needs of customers.

The isolated functioning of channels is might not be consider prior by the customers in these days, which will drive the retailers to move towards omni channel retailing. Omi channel is referred to integrated shopping experience where a customer will have experience of same brick and mortar store in connection with online shopping. In omni channel a customer can have the same experience online that he might feel in store. You can go and have a look and physical touch at any store and may go to home and buy the same product later on at home with online service. Through omni channel customers can be allowed to have the different delivery options i.e. order online and have the delivery to the nearest company’s store to avoid delivery cost or order at store and have it to deliver to their doorstep (Chatterjee et al. 2006). Consequently, this will allow customer to change and move along different channels in real time (See exhibit 1.2). To become successful in the field of omni channel, retailers must adapt ways to integrate and optimize their order management, order fulfillment and supply chain processes (Strang, 2013). In order to attain these attributes retailers needs to alter the course of their central warehousing from traditional or simple warehousing to more efficient and effective distribution system i.e. where and how to keep stock, fulfil orders, and how to handle growing goods returns (Kembro et al. 2018).

Exhibit 1.2: Omni Channel Journey

Adapted from OMNI-CHANNEL LOGISTICS: A DHL perspective on implications and use cases for the logistics industry (p. 03), by D. Kraemer, T. Dahiya, P.M. Yee, 2015 by DHL Customer Solutions & Innovations

16 | P a g e

• Omni channel order fulfillment

In recent years, omni channel fulfillment becomes a standard in the supply chain. To become or adapt omni channel, two main order fulfillment programs must be adopted. First one is to allow customers to order online and then pick the parcel from one of retail stores as per customer convenience. Second, customer can order in the store but have the option to deliver the product at home (Chatterjee et al. 2006). Both options have some further expectations i.e. like customer have the option to return the product within the specific time frame or product can be shipped from any store or warehouse facility without considering the actual purchase channel, respectively. Both of these options allow customer to switch over between various channels during the whole transaction process.

Retailers needs to consider that to achieve perfect omni channel logistics strategy various fundamental processes need to be optimized to fulfill customer demands regarding anywhere at same day deliveries. For that matter, a shipment can be sent to customer from any of stores which is nearest to customer’s vicinity. But it needs to be considered that shipping from central warehouse is much cost effective than sending it from store. Consequently, retailers need to adapt improved ways of picking and shipping (Strang, 2003).

• Customer expectations

Meeting customer demands and satisfying them regarding customized needs are the main objectives of omni channel logistics strategy (Frazer, Stiehler, 2014). With exposure to more services, knowledge, free deliveries, order pick from stores facilities and easy returns increases customer demands and expectations. Customers changing needs and demands would change the retailing sector (Collins et al., 2007). Though, omni channel logistics strategy is more about order fulfilment, allowing customer to easily switch between different channels and meeting customer expectations, but it is considered that only few number of retailers are able to achieve this level and allow customers to have in store pick-ups and physical store built fulfilments.

2.2. Central Warehouse

A commercial building that is used for buffering and storage of goods is called warehouse (Shiau & Lee et al. 2009). Central warehouse management or simply called warehousing is a process where storing of goods, reorganizing them and repacking of goods are conducting in a specified area or space (Hackman & Bartholdi, 2014) (See exhibit 1.3). According to Naik, (2014) warehouse is a place from where distribution of goods occurred that is why warehouse is a very important component of supply chain. Also, it is an essential part between the linkage of multiple supply chain actors. Main activities of warehousing can be described as value adding processes,

consolidation of products, material flow and customization of products (Goetschalckx, Gu,

McGinnis, 2007). Consequently, warehouse activities should be implemented with great caution to attain cost effectiveness, optimal capacity, optimization of processes and material flow. These

17 | P a g e

attributes are considered to be the main crux of effective omni channel strategy which makes efficient warehousing inevitable. Central warehouse management consist of two main traits i.e. warehouse design or layout and warehouse operations.

Exhibit 1.3: General warehouse management (Based on Chung, Choy & Lam, 2010)

a.

Warehouse Layout

To achieve warehouse optimization objectives, warehouse layout models are adopted. Consequently, importance of warehouse layout design enchanted in order to make efficient warehouse functioning and reliable cost-effective activities (Dharmapriya & Kulatunga, 2011). Warehouse layout design is always influenced by warehouse operations i.e. goods receival, sorting, put away, picking, packing and shipping (Rouwenhorst, 2000). According to Mohsin M.D. (2002), warehouse layout design should have several characteristics like compactness, adaptability, accessibility, flexibility, improve space utilization, reduce congestion and movement.

18 | P a g e

Exhibit 1.4: An example of layout as a flow shop (Based on Mohsin et al. 2002)

b.

Central Warehouse Operations

Warehousing is basically revolving around stock management, inventory management, sorting, picking, order fulfillment and shipping (Mohsin et al. 2002). Warehouses is considered to be the backbone in the supply chain and is the connecting point between various partners of supply chain. The ties between warehouse operations with its available resources is referred as warehouse management. The efficient utilization and allocation of warehouse resources to complete task assigned within warehouse operations is considered to be warehouse management (Chung et al. 2010). It includes all the planning, procedures and appropriate actions perform to fulfill customer orders and take care of the returns (See exhibit 1.5). Consequently, warehouse operations are directly connected and involved with omni channel strategy to deliver ultimate customer experience and enhanced customer satisfaction. In this regards, increase productivity and integration of warehouse operations and activities are most important factors for retailers to achieve highly optimized omni channel retailing. Warehouse activities and operations are mainly be divided into two major categories i.e. Inbound and Outbound.

19 | P a g e

Exhibit 1.5: Warehouse operation processes (Based on Chung et al. 2010)

I.

Inbound

The inbound starts when an item received to warehouse either from external source or from any other company or party (Groes-Petersen, Dupont, 2019). Then the basic responsibility of inbound starts i.e. receiving it and make a proper record of it and then put away i.e. store it in proper place. At first spot the product should go through proper control activities where it would be making sure that right product with right quantity has been received. Then in the second part unless the product should not be moved out from the warehouse it should have to be stored according to the warehouse planned theory i.e. either FIFO or LIFO method. Then the product will be stored across warehouse through its storage system i.e. SKU allocation or zones. The following functions comes under inbounding.

20 | P a g e

Exhibit 1.6: Inbound Warehouse Flow (Based on Hackman et al. 2014) • Receiving

The very first function that occur in warehouse with arriving goods or products is receiving function (Hackman et al. 2014). Products comes mainly from two ways either from any supplier via some mode of transport or from customer as a return. Receiving processes usually relates to assigning trucks the specific docks and schedule unloading of trucks (Rouwenhorst, 2000). When the goods are received it has to be recorded into the system to make sure right type, quantity and quality.

• Sorting

Any process of assembling items systematically is called sorting (Deepak, Taylor, Spiller & LeVier, 2009). Mainly, sorting process has been conducted during unloading and cross docking process, but it can be done during various warehouse activities e.g. within put away process. To facilitate put away process and picking activity pallets can be sorted and allocated accordingly. During multiple picking activities within warehouse sorting is also required for different orders (Goetschalckx, Gu, McGinnis, 2007). Sorting while picking can be done either after picking the whole order (usually for store orders) or while during picking (for customer orders).

21 | P a g e

• Put away

Other than the products which needs to be send again i.e. cross docking, products need to be store within the warehouse to assigned locations. Consequently, in a put away activity the products put into storage location so it can be picked again (De koster, Le-Duc & Roodbergen 2007). Through stock planning arrival of up-coming shipments can be managed in regard to their arrival time and quantity. In warehousing storing goods is very important to take cost effective measures. For that purpose, stock planning and inventory management processes can be utilized to figure how the products should be stocked (Goetschalckx, Gu, McGinnis, 2007). Mainly, SKU racking allocation or zone allocation methods are used for storage of goods within the warehouse. Further on the products can be picked according to the define system i.e. FIFO or LIFO.

II.

Outbound

Outbound of the warehouse is mainly dealing with order fulfillment i.e. from receiving an order to shipping an order and delivering it to the customer. Outbound flow starts with a request form which wants to bring the product out of the warehouse whether to other company, store, agent or customer itself (Groes-Petersen, Dupont, 2019). Outbound perform different sort of activities from storage of goods to release them to be out from the warehouse. The basic idea of the warehouse outbound functionality is described below in the Exhibit 1.7.

Exhibit 1.7: Outbound Warehouse Flow

Source: Retrieved from Keely L. Croxton, Sebstián García-Dastigue, Douglas M. Lambert, and Dale S. Rogers, “The Supply Chain Management Process,” The International Journal of Logistics Management, 2001, p. 21.

22 | P a g e

Every outbound order is correspondent to the inbound source document. In outbound following workings are associated behind the release of any product i.e. sales order, outbound transfer order,

purchase return order and service order (Groes-Petersen, Dupont, 2019).

• Picking and Scanning

For customer or store order acquiring right amount of right product is called picking (De koster, Le-Duc & Roodbergen 2007). In order to fulfil customer or store demands goods can be picked from picking (storage) locations in order to be shipped. Picking is considered to be more labor intensive and costly activity of warehousing. The cost of order picking is estimated to be 55% of the total warehouse operational expense (De koster, Le-Duc & Roodbergen 2007). Picking can be done through humans or automated machines but warehouses usually employee humans to do picking. The most common used methods for order picking are “picker to parts” system and “Parts

to picking” (De koster, 2004).

Picker to parts- In its picker moves between aisles to pick the products. Picker to parts is distinguished into two parts i.e. low-level pick and high-level pick.

Parts to pickers- This includes automated storage and retravel system and mainly refer as Autostore. Mostly use aisle or grid bound robots that usually retrieve one or more-unit load from Bin or pallet and bring it to picking location i.e. picking port. This system is called “unit load” or “end of aisle” order picking system (De koster, Le-Duc & Roodbergen 2007).

Scanning- Since the last two decades barcoding system has been used globally to identify goods and products. This is a cost effective technology with reduction in waste, accurate stock inventory and faster scanning (Atkinson, 2005). But the problem with this technology is that barcodes always need to be prominent, clear and visualized (Abd Razak, Gardiner, Prabhakar & White, 2007). Consequently, the barcodes could easily be damaged and altered by any reason e.g. environmental factor, dirt or temperature. Which results in scanning problems and workers needs to do it manual entering.

• Packing & Shipment

Packaging can be different according to weight, size and vulnerability of product. Generally, in warehousing packing processes is carried out after order picking process (Shiau & Lee, 2009). When we consider cost effectiveness a proper efficient packing process should be adopted. Packing can be different with regards to store and online orders. Usually, stores orders are considered to be bigger in size and quantity so pallets can be used. Whereas, customer or online orders are smaller in items so can be handled one by one and process tome effectively (Napolitano et al. 2013). For amortization purposes robots or machines are used for packing purposes (Shiau & Lee, 2009).

23 | P a g e

Shipping is the last part of operation within the order fulfilment process. The key to success for omni channel is high degree of integration, lead times and different shipping models (Hubner, Kuhn, Holzapfel, 2016). Muller et al. 1991 emphasizes the fact that competitive advantages can be achieved through delivery process as much as through the product. Outsourcing of logistics functions has a major impact on company and customer relationship (Sheng, Razzaque, 1998). Therefore, companies are achieving high efficiency in delivery services by adopting third party logistics solution. Plus, this allows retailers to mainly focuses on their core area of expertise.

III. Returns

Returns which is also called as reverse logistics can be explained as the reversal process of logistics through which goods can be returned to its provider (Krumwiede, Sheu, 2002). Often, these returns are from customer and can be due to any reason. Due to increase in online retailing and adoption of omni channel logistics, the volume of return goods is much increased but most of these products can be restock and resale after quality and control checks (Napolitano, 2013). Consequently, in the omni channel retailing having a good optimized return process is very crucial. Usually central warehouses have a separate allocation for return departments as its really necessary to keep them separate to prevent mixing of goods with new goods, for quality and check controls.

2.3. Warehouse Management System (WMS)

A software application that is designed to optimize, integrate and support warehouse functionality and manage distribution center is called WMS. Basically, these softwares runs the whole system of warehousing i.e. organizing, inventory management, planning, utilization of resources, flow of material whether in or out from the warehouse and staffing etc.

WMS helps the warehouse to make inventory more accurate, traceable and visible. This will eventually lead to more efficient and effective warehouse management. Plus, these software helps warehouses to improve their efficiency in terms of space utilization and capacity (Rebecca, Gill 2007). Also helps in order to improve work force productivity by streamlining and automating the warehouse processes.

24 | P a g e

3. Methodology

This section explores the methods that the author used during this research. It provides details of how study was designed and conducted. Furthermore, the research approach is explained with regards to important issued i.e. trustworthiness. Lastly, empirical analysis of data is described in this section.

3.1. Research Design

To help researchers that how data can be analyzed, examine and how it will answer the research questions a research design will be generated. (Easterby-Smith, Jackson & Thorpe, 2015). Beauty of research design is that it will help researcher to explain and justify that what sort of data, how and from where needs to gather. Consequently, this section will explain that how analysis will be conducted and how answer will be provided.

At the beginning, the author explained the purpose of this research. As the author described briefly in section one, the purpose of this study is to analyze the impact of having omni channel logistics strategy on the warehouse management i.e. operations and activities. How it would affect the overall working of warehousing and influence their planning, needs for improvement, integration and optimization? After that, the author formulated two research questions in order to bridge the gap that was founded during the literature review. The author, later on, explored these areas of gap in order to fulfil the gap. Both the research questions were started with “What” and “How” which revealed the fact that an explanation needs to be made in accordance to some certain events. Then after making research question, the author was needed to find out answers for that. An empirical data was collected through interviews with different level of operational managers. These managers are directly responsible for managing the whole operational activities and were responsible for decision making and execution of strategies. Some of these managers were working with company for a very long time and experienced all the changes that occurred during last few years. That is why, they were considered to be the best source of gaining data as they witnessed all the changes especially after exercising omni channel strategy by company. The purpose of conducting face to face interviews was to explore the facts and different point of views from different level of management employees to investigate more in detail. This makes the author’s research more accurate and credible.

Moreover, being an employee himself, the author had the experience and chance to observe all the processes and changes happening around the warehouse. This fact gave a benefit to this study that the author had the knowledge and advantage to know where to focus on, which area to explore and

25 | P a g e

give attentions to and which relevant question to ask to explore more in detail. Also, when collecting empirics, this reality allowed the author to put attention on specific study related areas. At the end, when the relevant data has been collected and compiled, the author answered the research questions by exploring the frame of work and by analyzing the empirical findings. Furthermore, empirical findings and their analysis were more valuable and reliable as the author had a good experience and observation over case study company.

3.2. Research Approach

Research approach that is related to the philosophical reasoning provides the basis of research and in reference to this approach allows to build a theory to apply under different research areas (Easterby-Smith et al. 2015). Testing of logically derived hypothesis is called deductive approach. Deductive approach occurs when a researcher makes a hypothesis from existing literature and then test these hypotheses in an empirical setting. Quantitative research from positivism approach considerably assumes that hypothesis is generally derived from existing theory or hypothetical construct and are, therefore, deductive in nature and referred to theory testing (Isadore, 2000). The author was not considering existing theories or hypothesis to test or to go for hypothetical construct in this research which would automatically exclude deductive approach.

Then there was inductive approach which uses empirical observations with collection of data and arrive at emerging theory from data analysis. A qualitative or constructivist approach to research generally considered to be inductive in nature and the determination is not to test theory or theories but instead to create theory and explanation of phenomena (Isadore, 2000). Inductive approach generally requires theories so availability of theories must be present. Furthermore, primary purpose of inductive approach is to allow research findings to arise from leading or substantial themes innate in raw data, without considering the restrictions enforced by structured methodologies (Thomas, 2003). Therefore, the author did not plan to base his research on inductive approach as the author would not be able to formulate prepositions from anything which automatically took away the inductive approach as well.

When a real time event or phenomenon has been occurred then there comes the abductive approach. Abductive approach is in general similar to inductive approach when it comes to theoretical overview but dependent on actual application or hypothesis (deductive approach). Abductive approach generates useful cross fertilization and the new combinations that are drawn from it are developed through a mixture of established theories and new concepts developed from confrontation with reality (Dubois, Gadde, 2002) Consequently, basically the combination of deductive and inductive approaches is considered to be the abductive approach. But, one can take abduction approach differently from the mixture of deductive and inductive approach. Abductive approach’s lies on the objective to discover new things i.e. other variables and relationships, so stress lies on theory development than theory generation (Dubois et al. 2002):

26 | P a g e

“it is a logical inference (and thereby reasonable and scientific), however it extends into the

realm of profound insight (and therefore generates new knowledge). The secret charm of abduction lies straight in this kind of inference-being abduction is sensible and scientific as a form of inference, however it reaches to the sphere of deep insight and new knowledge. Abduction is intended to help social research, or rather social researchers, to be able to make new discoveries in a logically and methodologically ordered way”

(Jo Reichertz, 2009, p.04; Abduction: The Logic of Discovery of Grounded Theory)

The author applied abductive approach to analyze the real time changes that occur within the warehousing operation in order to fulfil new requirements and needs of omni channel logistics strategies. For that matter grounded theory were utilized to analyze the empirical data to form codes, categories and then themes from it to assess changes and due to these changes, what challenges were occurred. During information collection, the author realized various gaps in the literature that can be further analyzed. An empirical study was conducted in that regard. The data gathered during the empirical findings second the fact that there was a lack of literature available on the context warehouse activities in connection with omni channel logistics. Consequently, when further went deeper into challenges and improvements for the warehouse operations, the researcher recognized challenges that were not previously covered in literature, which led to the realization of new facts. Dubois et al. (2002), further elaborate this fact as comparing real life experiences with previous researches is a critical part of study. Second, it is recommended, when there is no straight realization or indication of deductive or inductive approach, one needs to go with abductive approach.

3.3. Research Strategy

Appropriate selection of research strategy is the key foundation of research which will set the ways to gather data and later on utilize and analyze it (Yin et al. 2003). There are three groups of strategies explanatory, exploratory and descriptive (Saunders et al. 2003). Exploratory research is considered to the most effective approach when there is lack of or insufficient understanding of the topic. Exploratory research will furnish the deeper understanding of the topic and allows to have an enhanced insight knowledge.

Furthermore, the purpose of this thesis was to gain more innate knowledge about the problems and challenges faced and to dig out improvement factors, during the transition of omni channel logistics strategy, by the central warehouse management of baby products and clothing providers regarding their warehouse operations and resources handling. That is why, an expansion of existing theory can be given. For that purpose, interviews were conducted, with different department managers at the case company in order to add limited literature in the field.

27 | P a g e

3.4. Qualitative Research; Case Study

According to Saunders, (2003) there are different types of strategies i.e. grounded theory, case study and surveys etc. Chosen research strategy depends on research question and focus of research (Yin et al. 2003). In the following thesis the author applied qualitative research in accordance with single case study of exploring the challenges a retailer’s central warehouse faces under the influence of omni channel strategy. With reference to purpose of this study, single case study considered to be suited perfectly. As due to the complexed nature of purpose and to fil up the gap the author needed to get a deeper insight of the topic. Plus, this would allow the author to investigate data more properly to have a better overview of analysis.

Case study generally is a research and empirical analysis that examine or observes a phenomenon with its real-life context. Case study allows the scholars to investigate or explore individual or organizations via involvements, relationships or programs and support deconstruction and consequent restoration of several phenomenon (Baxter, Jack, 2008). That is why, case study method was chosen to investigate the research questions under the guidance of above mentioned references.

The research was consisted on 10 interviews with follow up interviews as well and a constant observation of the overall working of the principle company i.e. baby products provider later on referred as Company A. Company A is renowned retailer for providing luxury baby products and clothing and is exercising omni channel logistics strategy since quite few years in accordance with its central warehouse. Therefore, single case study was chosen by the author to have a deeper investigation regarding their warehousing strategies. Due to confidentiality the name of the company and interviewees would not be disclosed in this study.

3.5.

Collection of Data

In general, there are two types of data collection i.e. quantitative and qualitative. According to Easterby-Smith et al. (2015), Quantitative data is recognized by its numeric form and can be analyzed with quantitative measures. Whereas, data that is collected in non-numeric forms via interactive and explanatory processes is called qualitative data. For collection of qualitative data different means can be adopted and there will be lot of exploratory trends involved in it.

a.

Interviews

Interviews are important source of information gathering and collection of primary data (Yin, 2003). Consequently, to find out reliable and valid data interviews becomes the primary sources. In this study the author conducted semi structured interviews. Central warehouse has a complex structure of operations and management processes. Consequently, at the start, top to bottom strategy were applied by the author. The purpose for this top to bottom strategy was to first have a deeper knowledge about warehousing. Though the author is a part of the Company A and have a

28 | P a g e

three years’ experience in warehousing but to be on same page and having same ideology of warehousing, it was necessary to start with this strategy. Several interviews were conducted in order to get a better investigation of topic and due to the complex nature of topic (See table 1.1) For that matter top managers were interviewed at first place, so that a complete structure of operations and under lying activities would be drawn and to get a deeper insight that how warehouse is taking omni channel logistics strategy. Then to know the current situation of different areas, separate interviews were conducted with inbound and outbound operational managers along with IT and return department managers. The last two managers were added to interview list because to have a better understanding regarding different department activities and warehouse management softwares. Furthermore, return goods management are considered to be the main feature of omni channel strategy.

Interviewee Job Title Duration Follow up

Respondent A Warehouse Manager 0.75 hours No

Respondent B Production Manager 1 hours Yes

Respondent C IT Developer 0.75 hour No

Respondent D Inbound Manager 2 hours Yes

Respondent E Outbound Manager 2 hours Yes

Respondent F Returns Team Leader 1 hour No

Table 1.1: Interview Schedule (Source: Own creation)

b.

Secondary Data

When we talk about secondary data it is referred as the data which is collected by someone other than user. Secondary data is usually described in opposition to primary data (Allen, 2017). It can be found on different sources like books, archival, advertisements, articles, journals, company websites, governmental and organizational records etc. The chief and for most secondary data advantage are saving time, inexpensiveness, historical perspective and large sample sizes however, disadvantages are that might not relevant or correspond to the to the study that researcher wants to investigate (Nicoll, Beyea, 1999; Easterby-Smith et al. 2015). Consequently, it is of utmost importance that the author, when using secondary data, carefully review the quality of source and

29 | P a g e

make sure the relevance to the study. Keeping in view these circumstances, secondary data can be used as a supplement to gather more information and data regarding research i.e. firm or company. For that matter company’s website is considered to be very valuable and reliable platform for collection of necessary data.

3.6. Empirical Data Analysis

Common problem that researchers faces with qualitative research is consolidating complex and context bound information into such a story which can convince any of its reader (Easterby-Smith et al. 2015). Consequently, in order to mitigate complexity and reduce possible mistakes empirical findings needs to be transcript into written text. To process this kind of data for analysis in qualitative research, researcher needs to summarize then categorize and then structure data to find out the patterns and themes (Saunders et al. 2003). Also, there are three common strategies for the analysis of any type of case study i.e. single or multiple. Which are 1. Study focuses on the collection of specific data 2. Test rival explanation 3. Develop a descriptive framework to structure case study (Yin et al. 2003).

According to Yin, (2003) researcher can find connecting links within case study through different techniques of data analysis. Among various data analysis techniques, keeping in view the nature of study and its research approach, abductive grounded data analysis is considered to be most valuable. Method of studying facts or findings as initiative to articulate a theory to describe those facts and findings is referred as abductive reasoning (Rahmani & Leifels, 2018). Through this grounded theory method, the researcher would further validate this case study research. According to Easterby-Smith et al. (2015) “grounded analysis objective at building theory from categories

that are grounded in data”. For this purpose, the author highlighted the parts of interviewee data

that considered to be relevant to purpose of this study and marked them as codes. Afterwards, the author analyzed them and grouped them into different categories which later on combined to form themes (See Appendix II). Further on, these themes were then corelated to different operational activities to analyze challenges and their impacts (See Appendix III).

Overview of literature review and framework gave the author a brief knowledge about the baby products and clothing provider retailer who is utilizing omni channel logistics strategy. The brief description of case study gave the author a good knowledge and understanding about omni channel logistics strategy and its requirements. After establishing a proper frame of work, the author was able to conduct interviews in order to have better understanding and deeper insight about the challenges occurred regarding central warehouse operations.

For the collection of data, a “5 WHY” analysis by Ohno (1988) were used to investigate the causes for established challenges. This method allowed the author to roll out the causes that were accumulated together and resulted in a bigger challenge. Consequently, to pin out the challenges and figure out why it occur, it was necessary to figure out the route cause of these challenges. For that matter following questions were followed:

1) Why challenges occurred in central warehouse?

2) Why omni channel logistics strategy had influence on warehouse operations? 3) Why warehouse needed to enhance or optimized its operations?

30 | P a g e

4) Why warehouse needed to have better operational inbound and outbound areas? 5) Why optimized order fulfilment is become necessary for central warehouse?

In order to analyze the data collected from these 5WHY questions and figure out why these challenges occurred, Ohno’s (1988) Ishikawa or Fishbone diagram (see exhibit 1.8) were utilized. Research question 01 i.e. exploring warehouse challenges with respect to omni channel strategy, was considered to be the base of diagram and answer for RQ1 was figured out by judging primary and secondary causes. Primary causes, one or more, became the fundamental of any challenge and were formulated due to accumulation of secondary causes- which are described by smaller arrows in diagram.

Exhibit 1.8: Ishikawa Diagram Example (Based on Ohno, 1988)

3.7. Trustworthiness

Elo, Kanste & Polki et al. (2014), described that trustworthiness of qualitative content analysis are generally described as credibility, reliability, dependability, conformability, transferability and

authenticity. The author make sure that all the quality criteria should be followed during this study.

For the purpose to establish credibility, researchers should make sure that all the parties which are participating in research must be identified and described properly and accurately (Elo et al. 2014). Credibility and transferability can be replaced with internal validity and external validity, respectively (Saunders et al. 2003). Transferability shows that this study’s findings could be applied in other context, whereas, conformability describes degree of neutrality of this research. Likewise, dependability reveals that finding might be repeated. In addition, Lincoln and Guba (1985), also presented these four alternatives for assessing the trustworthiness of qualitative

31 | P a g e

research, which are, credibility, dependability, conformability and transferability (cited in Elo et al. 2014). This gives more weightage to the author’s research trustworthiness. Furthermore, with reference to this research, four tests of trustworthiness i.e. Construct validity, internal validity, external validity and reliability are justified below

a. Construct Validity

According to Yin (2005), construct validity is determining true operational measures for the ideas that are under lying in ongoing study. For this purpose, the author performed several interviews with different respondents among different department within the organizational structure. Therefore, the author gathered information from different point of views and compared them to extract valid information to improve its worthiness.

The author described the purpose of study to make sure that respondent would take the author as researcher and not as an employee of the company. Furthermore, a detailed purpose of study along with interview questions were send to participants before actual interview, in order to give them time for preparation. Due to the anonymity of interviewees, interviews were not recorded but to minimize the chance of missing ideas and misunderstanding notes were taken during interviews. Later on, after summarizing interview details documents were send to production manager in order to verify and validate the information. Second, being as an employee of company, the author had the advantage to ask again (anytime) for clarification of any idea or misinterpretation from the interviewee.

b. Internal Validity

Internal validity is referred as a study that established trustworthy cause and effect relationship between any case and its outcome i.e. it cannot be influenced by other factors or variables (Streefkerk, 2019). However, in general, this validity is not considered to be appropriate for exploratory studies and that is why cannot be tested in this study.

c. External Validity

External validity is referred to creating a field to which a research’s findings could be generalized. In a study, generalization of findings is about how these findings could be generalized and could be applied to other similar area studies, where a study might be conducting. This research was conducting in cooperation to a baby products and clothing retailer who is operating under omni channel logistics strategy. Consequently, the findings may contribute to other companies that have the same business domain in baby products and are operating or wants to operate under omni channel strategy. However, identified challenges and improvement suggestions can be differ and may applied partly or fully, depending on central warehouse operational structure and its operational management. Because only one retailer is analyzed so this research has a lack of transferability. Furthermore, due to cost and financial issues, there are improvement factors which

32 | P a g e

a baby products retailer cannot manage. Consequently, if these cost aspects can be manageable these improvement factors can be adopted for integration and optimization of warehouse by the baby products retailers.

33 | P a g e

d. Reliability

Joppe (2000), defines reliability as consistency of findings over time and accurate representation of population and if these findings or results can be reproduced under parallel methodology, then study is deemed to be reliable (Cited in Golafshani, 2003). In the following research, reliability was ensured by taking interviews in person and written down them as valid text. The source of gathered data was reliable as all the respondents were experienced employees and were experts in their field. Plus, by conducting semi structured and scheduled interviews the author eliminates the chances of observer errors. To avoid observer bias, interviewees were conducted separately especially staff interviewees. The author investigated specific scenario of warehouse operational challenges in context with omni channel strategy with clear open questions and respondents’ answers were to specific case keeping in mind the omni channel scenario. This indicates that if parallel research is conducted with same specific perspective i.e. omni channel logistics strategy and central warehouse challenges, it should produce same findings.