Strategic Warehouse Redesign and Internal Logistic Flow Optimization: The Tenneco, Inc. Case Study

This thesis explores the study and optimization of material supply flows to production lines and the improvement of warehouse logistics through a detailed analysis and redesign of the layout, aiming for a more efficient organization and storage of goods. The primary objective is to enhance logistics efficiency through the implementation of an inter-company milk-run system, aimed at reducing operational costs by addressing key factors such as labor requirements, transportation distances and times, flow frequencies, and the types and number of handling and transportation equipment utilized. This initiative, referred to as the “Runner Project,” is examined through a case study conducted at the Chivasso facility of the Tenneco Group, a key supplier in the automotive OEM and aftermarket industries. Aligned with Tenneco’s growth strategy, which emphasizes productivity improvements at both local and global levels, the project initially concentrated on optimizing internal plant operations, particularly warehouse efficiency. Subsequently, the focus shifted toward analyzing and streamlining internal logistics flows, including production line supply and waste disposal management. Given the growing need for modern enterprises to minimize waste and eliminate inefficiencies, this study conducted an in-depth assessment of the company’s challenges. A structured reorganization of warehouse operations was carried out using Lean Manufacturing methodologies to achieve both economic and organizational advantages. By integrating these improvements with standardized and repetitive procedures, a sustainable continuous improvement system (Kaizen) was established, leading to significant cost reductions in warehousing and material handling. The findings and results obtained from this research at the Chivasso facility (TO) provide a foundation for further internal process enhancements and offer a scalable model that Tenneco can implement across its global operations.