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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue VI, June 2026
Improving Packaging Warehouse Operational Efficiency Through
Relayout Strategy and Material Handling Standardization in
Indonesian Chemical Companies
Jennifer*, Amanda Sandy Ardilla
Department Technology and Science, Catholic University Saint Agustine Hippo, Ngabang, Indonesia
*
Corresponding Author
DOI:
https://doi.org/10.51583/IJLTEMAS.2026.150600169
Received: 27 June 2026; Accepted: 02 July 2026; Published: 18 July 2026
ABSTRACT
The speed of warehouse order processing is a key industry imperative for customer satisfaction. One way
warehouse managers can achieve this is by comprehensively optimizing warehouse operations. Several
researchers have observed that warehouse order processing activities contribute a significant portion of
warehouse time and total costs. This study used the packaging materials warehouse of a chemical company in
Tangerang City, Indonesia. The main problems identified in this study included long picking times, the risk of
component picking errors, and low stock visibility. Several methodologies were used to address these issues.
The process began with mapping SKUs based on service frequency and quantity (fast-moving/slow-moving).
Based on the collected data, changes were made to the item layout. Furthermore, additional areas for packaging
support components, such as lids, were added near the packaging to reduce errors during picking. Furthermore,
5S practices were implemented to remove unused items from the packaging warehouse. This also helped the
warehouse expand its storage space. The results showed a 50% reduction in picking time, from the initial
standard time of 4 seconds per item to 2 seconds per item. Several unsafe storage areas were also removed,
improving operator safety during picking and contributing to increased warehouse capacity. Furthermore, the
implementation of a pail storage system also facilitated faster receipt and service of goods. The incidence of
damaged pails during storage was also reduced. The results of this study concluded that the 5S method and
determining the layout based on the movement of goods in the warehouse can have a significant impact on
warehouse productivity.
Keyword: warehouse, operational efficiency, Relayout, 5S
INTRODUCTION
In today's fast-paced manufacturing world, warehouse efficiency is no longer just an option, but a necessity.
Warehouses host several critical activities, including receiving, storing, checking, picking, stock replenishment,
shipping, administration, and warehouse stock handling. Research conducted by Baker P. and Canessa M. found
that the largest cycle time and operational costs occurred in order picking activities, accounting for
approximately 50%. Richard G. analysed activities in several types of warehouses using the time and motion
study method. He found that warehouse operators spent 60-70% of their daily work time on picking and putting
away. De Koster et al. analysed picking activities into several sub-activities: movement time or function, search
time, the picking process, and preparation and documentation. The activity with the highest cycle time was travel
time.
Within chemical manufacturing plants, the packaging warehouse serves as a volatile node due to the excessive
variety of Stock Keeping Units (SKUs), which range from varied can profiles and diverse chemical lids to high-
volume plastic pails. Baseline operational assessments at the target facility identified chronic, compounding
issues: disorganized storage topography, redundant material handling movements, prolonged search intervals,
and frequent component mismatch errors. These deficiencies combined to constrain the effective facility capacity