ARCHIWUM INŻYNIERII PRODUKCJI 64 PRODUCTION ENGINEERING ARCHIVES 2022, 28(1), 64-72 PRODUCTION ENGINEERING ARCHIVES ISSN 2353-5156 (print) ISSN 2353-7779 (online) Exist since 4 th quarter 2013 Available online at https://pea-journal.eu Restructuring picking and restocking processes on a hypermarket Rafaela Guimarães 1 , Luís Almeida 1 , Marta Barros 1 , Maria Carlota Afecto 1 , Maria L. Figueira 1 , Diana Mota 1 , Márcia Galvão 1 , Mariana Barreira 1 , Rui M. Lima 1, * 1 Department of Production and Systems, Algoritmi Centre, School of Engineering, University of Minho, Campus Azurem, 4800-058 Guimarães, Portugal *Correspondence: rml@dps.uminho.pt Article history Received 11.05.2021 Accepted 22.12.2021 Available online 07.02.2022 Abstract The purpose of this paper is to identify challenges and opportunities for exploring Lean approaches in managing instore logistics processes of a hypermarket, wherein data collec- tion made to quantify the state of the system, methods, and instruments will be applied to improve picking and restocking processes between the two main stock areas, the store and the warehouse. This article reports on a case study work, comprising direct observation, and analysis of the data collected, which was developed in three main phases: identification and characterization of problems, improvements in management of stock and restocking infor- mation, and finally improvements in the picking and restoking processes and teams. After analysing the hypermarket, some problems were found such as a high percentage of non- productive time in restocking, a daily average of 132 products to be restocked, a lack of standardization of tasks in the warehouse, and outdated restocking management system. Therefore, there will be some proposals to change the restocking management system, the picking and restocking work method and the warehouse layout, which makes it possible to decrease stock breaks in the store by 17%, the number of employees dedicated to these pro- cesses from 14 to 11, and finally, to reduce 2 daily hours of non-adding value time. This work makes an innovative contribution to fulfil a lack of publications dedicated to hyper- market inbound logistics between the warehouse and the store. Thus, it reveals the signifi- cant importance of focusing on instore logistics to the point of sale, concerning the effi- ciency, the lean production, and social benefits to the retail hypermarket, from the reception of products in the hypermarket warehouse until they are placed on the store shelves. Keywords Lean Services Hypermarket Picking Restocking Warehouse management DOI: 10.30657/pea.2022.28.08 JEL: L23, M11 1. Introduction A good logistical planning is crucial for a business to stand out from competition. Higher levels of efficiency in processes and waste reduction will allow a company to offer a better level of service, improving areas that previously could not be done due to lack of resources availability and still keep work- ers motivated (Rehme and Abrahamsson, 2010). The sustainability of industries depends on the performance of its supply chain and a balance between responsive and effi- cient warehouse operation. The concept of retail hypermarket is very recent, so the industry still has many challenges and there is still room for improvement. (Saleheenet al., 2014) A logistical process will not be effective without an efficient flow of information, so it is essential to propose the intercon- nection of all functional information areas in order to have useful and updated information in real time. Additionally, an activity that has been considered to be the most costly and most labour intensive is order picking, which is the act of retrieving items from the warehouse (Berg and Zijm, 1999). Studies estimate that its cost is about 55% of the total warehouse operating expense. Consequently, if the order picking system is not performing as it should be, then the