The market is constantly growing for E-commerce companies and it is expanding globally. The world is more united than ever before and can easily reach out to import or export. For E-commerce companies it is crucial to create a structure within the warehouse that is beneficial both in terms of material handling and worker efficiency. A company's efficiency is perhaps its most valued quality – giving logistics an extremely important role to play. For smaller companies it can become problematic with an increase in sales if it means they need to expand their inventory in order to complete larger orders and purchases. The workflow also needs to be able to handle the increase in material handling and orders.

The purpose with the thesis was to evaluate the current structure in a small warehouse and present ideas to increase efficiency and eliminate waste. With unnecessary waste eliminated, the objective was to optimize the work space and provide ideal conditions for further growth.

The analyzed company was Ecodi AB. An e-commerce company founded in 2010, the main product is Snus and the company has four suppliers located around Sweden. To expand further they are looking into the possibility of implementing a new product to the current collection.

To evaluate the structure, the workflow within the warehouse was mapped out and analyzed. Using theories from Lean production and Supply Chain Management, wastes and inefficiencies were highlighted. To gain insight and knowledge of the company, information was gathered using interviews, observations, brainstorming and general research. Connections could then be made using Quality tools (such as the seven quality management tools and the seven quality control tools).

The results show that implementing the lean production system, along with systems from the supply chain management, increases the efficiency within the warehouse and eliminates waste. The efficiency results in a chain reaction and improves communication which therefore relieves stress from workers. Potential improvements are presented and further research highlighted.