In today's rapidly growing and changing business environment, keeping their competitive edge in the market is becoming harder and harder for organizations. Thus, today's organizations have to constantly re-engineer their business practices in order to meet the increasing competition and at the same time to meet customer expectations. This requires smoothly operating a process that yields high-quality products/services in a short response time with a low cost in an organization. This can be achieved by integrating a well-operating supply chain system into the businesses conducted. With this scope, being a member of the supply chain, warehousing and distribution systems play one of the key roles in achieving competitive advantage. However, in Turkey, warehousing has not been given the degree of consideration that it deserves. Yet, recently, few companies have realized the vital of warehousing and studies regarding the subject have begun accordingly. One of the companies in Turkey that have acknowledged the need for innovation in X Textile Firm. It has undertaken to re-engineer of its core operations. Within this frame, this research handles one of the branches of the study, Analysis, Assessment and Improvement of the Warehouse System. With the reviews that the results of the studies have presented, proposals are formed and existed what should have been done in order to achieve the objectives that have been stated at the beginning of the study. Then, after interviewing with top management of the firm on needs, constraints, and specifications, detailed proposals covering the core issue are prepared. When warehousing operations are considered as a whole, the issue inherently requires an elaborate analysis of the supply chain. However, because of time constraints and the scope designated at the outset, detailed design proposals are kept and sustained within the initial frame. At the end of the study, the proposed structure and concept is presented to the management and this research provides as an initial step and it supports on how the firm should follow throughout the progress of the research.