INCREASING WAREHOUSE OPERATIONAL MATURITY USING SITE MATURITY ASSESSMENT (CASE STUDY: MAERSK CONTRACT LOGISTICS DC LEVIS)

Abstract

The demand for Third-party Logistics (3PL) warehousing providers is continuously growing, leading to an increasingly competitive market. 3PL providers commonly conduct warehouse maturity assessments to measure and improve warehouse performances. Maersk Contract Logistics, a leading 3PL company in Indonesia, has implemented this assessment across all their sites as part of their continuous improvement strategy. The company uses two internal matrices: the Site Maturity Assessment Matrix, which measures global maturity, and the Operational Excellence Matrix, which reflects regional maturity standards. However, these matrices contain overlapping categories and key questions, increasing the risk of inconsistencies in site evaluations. This study aims to consolidate both matrices into a unified maturity matrix, enhancing process efficiency and allowing the company to focus on a single guide that incorporates both standards. The new consolidated matrix includes nine categories and 272 key questions. The assessment is demonstrated on a newly launched MCL site, focusing solely on the warehouse operations category. This site, which handles a fashion brand as its client, currently scored 13.04% on overall operational maturity, placing it on a low maturity level. This study proposes strategies for improving the site’s maturity to address this situation. Given that the picking process contributes 35% of the total logistics cost, it is identified as a key area for improvement. Using the DMAIC approach, this study finds that the picking productivity is still below target. A root cause analysis identifies 15 root causes of this unproductivity. To improve picking productivity, the site can focus on standardizing carton building and placement, labeling all picking locations, conducting daily cycle counting, relocating SKUs to individual locations, and providing work instructions and training for the picking process. Implementing these strategies will enhance productivity and increase the site's maturity score.