A Case Study on Location-Based Inventory Management: QR Labelling and Digital Integration in Warehouse Operations

Abstract

Efficient warehouse management is essential to ensure accuracy, reduce operational costs, and enhance supply chain performance. However, in the case study warehouse located in Rawang which operates using the ZOHO Warehouse Management System (WMS), the absence of location-based tagging led to significant inefficiencies including delayed retrieval, stock misplacement, poor space utilization, and error-prone audits. This study conducted with warehouse staff and supervisors from XYZ Manufacturing Sdn. Bhd. aimed to address these issues through the design and implementation of a structured location-based inventory management system. The methodology was organized into four phases: (1) problem identification through system observation and performance benchmarking, (2) system design using rack, slot, and area identifiers combined with QR code labelling, (3) system implementation involving physical tagging and integration of location data into ZOHO WMS and (4) performance evaluation using key performance indicators (KPIs). The results demonstrated substantial improvements, with retrieval time reduced by 58%, stock movement error rate decreased from 15% to 4%, space utilization efficiency increased from 65% to 85%, and audit accuracy improved from 70% to 95%. These outcomes substantiate those low-cost interventions themselves, if incorporated into computerized warehouse systems, can yield considerable performance gains. The study further recommends the use of advanced technologies such as RFID, IoT sensors and indoor positioning systems, as well as the incorporation of green logistics practices, to sustain and scale these improvements. The study overall offers a practical framework integration of physical and digital systems to achieve scalable, robust and sustainable warehouse operations.