<p><p>Warehouses are a key aspect of modern supply chains and play a vital role in the success or failure of businesses today. Figures from the USA indicate that the capital- and operating costs of warehouses represent about 22 % of a company’s logistics costs while figures from Europe indicate 25 % (Baker & Canessa, 2009). Because warehousing is such an important function within a company, the authors chose to focus on this in their thesis. The purpose of this thesis has been to examine the significance of a Warehouse Management System (WMS) and item identification with attention to logistic efficiency. With this as a starting point, the thesis also intends to examine the needs and possibilities with a WMS and some sort of item identification at a specific company and also present suggestions of how to move forward with this type of work.</p></p>

Warehouses are a key aspect of modern supply chains and play a vital role in the success or failure of businesses today. Figures from the USA indicate that the capital- and operating costs of warehouses represent about 22 % of a company’s logistics costs while figures from Europe indicate 25 % (Baker &amp; Canessa, 2009). Because warehousing is such an important function within a company, the authors chose to focus on this in their thesis. The purpose of this thesis has been to examine the significance of a Warehouse Management System (WMS) and item identification with attention to logistic efficiency. With this as a starting point, the thesis also intends to examine the needs and possibilities with a WMS and some sort of item identification at a specific company and also present suggestions of how to move forward with this type of work.

Background: AA Logistics Sweden is having logistic efficiency problems, and at this point they do not have performance measurement in terms of KPI´s. Due to constant development and demand on their products, there have not been enough resources available to perform these measurements. Purpose: Our purpose is, on the basis of service level and turnover speed, to measure efficiency in terms of KPI’s at AA. It is also to design record sheets that can assist AA to increase the efficiency over time. Methodology: Interviews with managers and employees, in order to have a solid foundation for what to look for and analyse in the ERP system. The empirical material that was received was analysed on the basis of different theories. Result, conclusions: We have developed values for each KPI and also suggested SMART goals that in the long run will contribute to increasing the logistic efficiency.

<p>Background: AA Logistics Sweden is having logistic efficiency problems, and at this point they do not have performance measurement in terms of KPI´s. Due to constant development and demand on their products, there have not been enough resources available to perform these measurements.</p><p>Purpose: Our purpose is, on the basis of service level and turnover speed, to measure efficiency in terms of KPI’s at AA. It is also to design record sheets that can assist AA to increase the efficiency over time.</p><p>Methodology: Interviews with managers and employees, in order to have a solid foundation for what to look for and analyse in the ERP system. The empirical material that was received was analysed on the basis of different theories.</p><p>Result, conclusions: We have developed values for each KPI and also suggested SMART goals that in the long run will contribute to increasing the logistic efficiency.</p>