A Concept for a Logistics System for Supplying the Electronics Cigarette Market in Poland
Purpose: The purpose of this study is to identify the main causes of stock shortages and supply disruptions in a distribution company operating in the electronic cigarette market in Poland and to assess the effectiveness of proposed improvements in inventory and warehouse management. The study also aims to determine whether the implementation of safety stock and a Warehouse Management System (WMS) can improve product availability, delivery performance, and customer service levels. Design/Methodology/Approach: The study adopts a case study approach based on data collected from Evapify Poland Sp. z o.o. for the period 2024–2025. Both qualitative and quantitative methods were applied, including a literature review, employee interviews and surveys, an Ishikawa cause-and-effect analysis, Failure Mode and Effects Analysis (FMEA), and logistics indicator analysis. FMEA was used to assess the occurrence, severity, and detectability of identified failures and to prioritize corrective actions. A comparative analysis of selected logistics indicators was conducted to assess the expected effects of implementing safety stock and a WMS. Findings: The results indicate that stock shortages are primarily caused by the lack of automated minimum stock monitoring, inadequate inventory levels, the absence of emergency procedures, irregular supplier delivery schedules, and insufficient control of warehouse processes. The highest FMEA risk priority number was identified for the lack of a minimum stock monitoring system (RPN = 576). The proposed improvements include introducing safety stock for high-turnover products and implementing a WMS. The analysis indicates that these measures could increase the customer service level from 88% to 95%, reduce the stock-out rate from 12% to 5%, and decrease average order fulfillment time from 2.6 to 2.25 days. Practical Implications: The findings provide practical guidance for distributors operating in dynamically changing markets with high product turnover and demand variability. The implementation of safety stock and automated inventory monitoring can reduce the risk of stockouts, improve delivery reliability, and increase customer satisfaction. The study recommends introducing safety stock for key products, implementing a WMS with minimum stock alerts, establishing supplier delivery schedules, and developing standardized emergency and order-picking procedures. Originality/Value: The originality of the study lies in combining an analysis of the rapidly developing electronic cigarette distribution market in Poland with classical quality and logistics management tools, particularly the Ishikawa diagram and FMEA. The study provides empirical evidence on the applicability of these methods to inventory management in a dynamically changing and relatively under-researched market. It also demonstrates how safety stock and warehouse digitalization can complement demand forecasting in managing supply uncertainty.