Improving Forklift Efficiency by ECRS Techniques: a Case Study in a Logistics Company

Abstract

The logistics industry has a vital role in supply chain management, which is considered an important industrial sector. Warehouse performance is a very important element in business. The forklift has a materials handling support activity, which affects warehouse efficiency. Specifically, we focus on the importance of forklifts in materials handling and their impact on warehouse efficiency. The objective of this work is to investigate warehouse operations by improving and solving forklift efficiency problems using the ECRS (Eliminate, Combine, Rearrange, Simplify) approach. In this case study, the warehouse manager identified three processes to enhance forklift tasks, aiming to reduce waste and minimize the total number of forklifts in the warehouse. Before the implementation of the ECRS technique in 2021, the warehouse had 30 forklift units with an efficiency usage rate of 49%. After the implementation in 2022, the total number of forklifts was reduced to 27 units, a decrease of 3 units. Additionally, the forklift efficiency usage significantly increased to approximately 66%. The implementation of the ECRS technique not only resulted in improved forklift efficiency, but also had a substantial impact on logistics cost. The company in the case study was able to save 504,000 THB per year in forklift rental expenses due to the reduction in the number of forklifts and the enhanced efficiency of their usage.