INTRODUCTION
MEANING
A warehouse management system (WMS) is a key part of the supply chain and primarily aims
to control the movement and storage of materials within a warehouse and process the associated
transactions, including shipping, receiving, put away and picking. The systems also direct and
optimize stock put away based on real-time information about the status of bin utilization. A
WMS monitors the progress of products through the warehouse. It involves the physical
warehouse infrastructure, tracking systems, and communication between product stations.
More precisely, warehouse management involves the receipt, storage and movement of goods,
(normally finished goods), to intermediate storage locations or to a final customer. In the multi-
echelon model for distribution, there may be multiple levels of warehouses. This includes a
central warehouse, a regional warehouses (serviced by the central warehouse) and potentially
retail warehouses (serviced by the regional warehouses).
Warehouse management systems often utilize automatic identification and data capture such as
barcode scanners, mobile computers, wireless LANS potentially radio-frequency identification to
efficiently monitor the flow of products. Once data has been collected, there is either a batch
synchronization with, or a real-time wireless transmission to a central database. The database can
then provide useful reports about the status of goods in the warehouse.
Warehouse design and process design within the warehouse (e.g. wave picking) is also part of
warehouse management. Warehouse management is an aspect of logistics and supply chain
management.
• Part of firms logistics system that stores products at and between point of origin and point
of consumption.
• Term “Warehousing” is referred as transportation at zero miles per hour
• Warehousing provides time and place utility for raw materials, industrial goods, and
finished products, allowing firms to use customer service as a dynamic value-adding
competitive tool.
Warehouse Management System which caters the need of 3rd Party Logistics Provider
providing Warehousing and Distribution services to its customers. Provides real time Visibility
of information and goods from the time they arrive at the receiving dock and till the time the
goods leave from the shipping dock. Seamlessly integrated with other Supply Chain players like
Supplier, Customer, and Carrier in the form of web portal.
Warehouse inventory includes the products, raw materials, work-in-process goods and finished
goods that make up the inventory that is or will be for sale by a company.
Supply chain management is a cross-functional approach that includes managing the movement
of raw materials into an organization, certain aspects of the internal processing of materials into
finished goods, and the movement of finished goods out of the organization and toward the end
consumer. As organizations strive to focus on core competencies and becoming more flexible,
they reduce their ownership of raw materials sources and distribution channels. These functions
are increasingly being outsourced to other firms that can perform the activities better or more
cost effectively. The effect is to increase the number of organizations involved in satisfying
customer demand, while reducing managerial control of daily logistics operations. Less control
and more supply chain partners led to the creation of the concept of supply chain management.
The purpose of supply chain management is to improve trust and collaboration among supply
chain partners, thus improving inventory visibility and the velocity of inventory movement
1) Inventory management
2) Distribution management
3) Channel management
4) Payment management
5) Financial management
6) Supplier management
DEFINITION
„A warehouse is a planned space for the storage and handling of goods and material. „In general,
warehouses are focal points for product and information flow between sources of supply and
beneficiaries. However, in humanitarian supply chains, warehouses vary greatly in terms of their
role and their characteristics.
Warehouse Management is the management of the flow of goods. It includes the movement
and storage of raw materials, work-in-process inventory, and finished goods from point of origin
to point of consumption. Interconnected or interlinked networks, channels and node businesses are
involved in the provision of products and services required by end customers in a supply chain.
Supply chain management has been defined as the "design, planning, execution, control, and
monitoring of supply chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand
and measuring performance globally."
1) Transportation consolidation
2) Product mixing
3) Docking
4) Service
WAREHOUSE ACTIVITIES
1) Receive goods
2) Identify the goods
3) Dispatch goods to storage
4) Hold goods
5) Pick goods
6) Marshal shipment
7) Dispatch shipment
8) Operate an information system
Receive goods
o Items are identified with the appropriate stock-keeping unit (SKU) number (part
number) & the quantity received recorded
o goods are kept in storage & under proper protection until needed
Pick goods
o items required from stock must be selected from storage & brought to a
marshalling area
‒ goods making up a single order are brought together & checked for omissions or
errors; order records are updated
‒ orders are packaged, shipping documents are prepared, & goods loaded on the
vehicle
‒ a record must be maintained for each item in stock showing the quantity on hand,
quantity received, quantity issued, & location in the warehouse
INDUSTRY PROFILE
TYPE OF WAREHOUSING
1) Public Warehousing
2) Private Warehousing
3) Contract Warehousing
4) Multi-client Warehousing
5) Bonded Warehousing
The global warehousing concept has gained popularity over the last decade as stock pre-
positioning becomes one of the strategies for ensuring a timely response to emergencies. They
are usually purpose built or purpose designed facilities operated by permanent staff that has been
trained in all the skills necessary to run an efficient facility or utilizing 3PL staff and
facilities. For such operations, organizations use, information systems that are computer based,
with sophisticated software to help in the planning and management of the warehouse. The
operating situation is relatively stable and management attention is focused on the efficient and
cost effective running of the warehouse operation. Numerous organizations have centralized pre-
positioning units strategically located globally. Some of these offer extended services to other
humanitarian organizations on a cost plus operating charges basis.
FIELD WAREHOUSE
They are usually temporary in nature. They may be housed in a building which was not designed
to be used as a warehouse or in a temporary building/structure, in mobile units such as rub halls,
Wii halls and sometimes are little more than a tent in a field. The initial staff may be a casual
workforce that has never worked in a warehouse before and the inventory system is more likely
to be paper based. Often the situation is initially chaotic, sometimes dangerous coupled with a
humanitarian need which may be very urgent. The management style must therefore be practical
and action oriented with a focus on making the humanitarian goods available as quickly and
efficiently as possible, but yet at the same time accountable.
POLICIES AND PROCEEDURES
Policies
The policies contain hard and fast rules and regulations that define the general conduct of the
warehouse operation. Examples of the types of policies that organizations will define are as
follows:
organizational specific
health and safety
human resources management
security
pest control
warehouse maintenance and cleaning
quality control
record keeping and reporting
reverse logistics – Return of goods and exit strategy in the event of downscaling or
shutting down operations
Disposal of obsolete and damaged goods.
Procedures
The procedures' document defines step by step how the activities in the warehouse should be
carried out and clearly defines the processes to be adopted. These can be adopted as „best
practice‟.
The procedures provide visibility of the operations for managers and donors.
However, in creating such procedures, care must be taken to avoid constraining the use of local
initiative which might be required to deal with local conditions. Procedures should be considered
as streamlining the business processes and providing checks and balances. They provide
guidance to warehouse managers and must have some level of flexibility to cater for unique
situations, than to be rigidly adhered to. This can be achieved by limiting the level of detail that
the procedures document defines, allowing more flexibility and/or by arranging „dispensations‟
to allow departure from the procedures in order to optimise local performance, especially in
emergencies.
The procedures will normally provide the step by step guidance on how to manage each aspect of
warehousing and may cover:
Determining Needs
In determining needs, one should look beyond the basic need of a warehouse to store
things. Whilst, this is correct there are also other considerations.
WAREHOUSE SELECTION
Factors to consider:
Space layout
The areas that should be planned are both the general storage areas and the areas for goods
receipt, consignment picking and goods dispatch. It is also desirable that space should be set
aside for the following activities:
PLANNING
It is worth keeping these requirements in mind during the planning of the main operating areas.
Planning consideration needs to be given to the following:
As shown above, the warehouse operation is composed of four key work activities:
goods receipt
storage
picking
goods dispatch
To estimate the resource requirement for the whole warehouse, one should start by estimating the
requirements for each of the key work activities in turn and the level of demand. Then, the
resource requirements for all activities should be combined together, taking into account the way
that the activities are phased during the working day, in order to make an estimate of the total
resources required.
Aspects to consider when managing Warehouse Operations
It has been established that the role of inventory management is to ensure that stock is available
to meet the needs of the beneficiaries as and when required.
Inventory represents a large cost to the humanitarian supply chain. This is made up of the cost of
the inventory itself, plus the cost of transporting the goods, cost of managing the goods (labor,
fumigation, repackaging, etc.) and keeping the goods in warehouses. The inventory manager's
job is to make inventory available at the lowest possible cost.
In order to achieve this, the inventory manager must ensure a balance between supply and
demand by establishing minimum holding stocks to cover lead-times. To achieve this, the
inventory manager must constantly liaise with the programs to keep abreast of changing needs
and priorities. The warehouse must always have sufficient stocks to cover the lead-time for
replacement stocks to avoid stock-outs.
INVENTORY CONTROL
There are two methods of inventory control that are applicable to emergency situations:
Both are applicable to humanitarian situations and have associated pros and cons. Note that EOQ
in practice only works in a fairly stable environment where demand variability and
replenishment lead-time are reasonably stable and predictable. This is not the case in an
emergency. Economic order quantity is applicable in more stable environments such as refugee
camps and perhaps later in a relief/recovery phase.
Inventory management in an emergency is more „project based‟, matching supply with demand
in a rapidly changing environment. This requires building a supply chain that has a high level of
flexibility and adaptability, with rapid identification of need and rapid fulfilment of that need
through the supply chain.
In managing this sort of system, inventory should be considered in relatively small quantities
(inventory packages of associated relief items) that are attached (pegged) to an identified need
then moved (and tracked) through from source to the identified need (the user).
Optimization comes from having logistics systems that can configure, procure and consolidate
these packages quickly and at least cost and a distribution chain that is flexible and can adapt to
changing requirements quickly and at least cost.
Information systems that facilitate transparency of the supply chains inventory levels and
location + peg supply to demand provide the visibility necessary to facilitate good planning and
decisions that maximize service and reduce cost.
Establish levels of operating stocks based on consumption/rate of usage. The stock levels
shall be reviewed from time to time depending on current needs. ensure that weekly and
monthly stock balances reports of each stock item and the total value are prepared;
maintain monthly stock usage report of each item kept in the store and the overall in the
usage trend in last six months;
review and report on six monthly basis slow moving items indicating the last movement
date the unit value and total value and liaise with user department;
establish quantity, lead -time and availability of each item supplied on the market;
Keep a record of all non-stock items received from suppliers, returned to suppliers and
issued to out for users
MONITORING GOODS IN TRANSIT
To facilitate and account for movement of stocks the following documents could be used:
In addition to the work methods, equipment and space requirements it is essential that the
warehouse is adequately resourced. This is done by planning or estimating the requirements for
people and equipment in order to operate the warehouse facility.
There is a trade-off to be made between the people and handling equipment requirements for any
given workload.
In global warehouse operations, which are run like commercial operations, the focus is on
minimizing the cost of running the operation. In this situation, it is often better to invest in
handling equipment and reduce the dependence on people resources.
However, in field operations, many humanitarian organizations prefer to hire local labor which
provides employment instead of relying on handling equipment.
The requirement for the total amount of resources required will be determined by the amount of
goods flowing into and out of the warehouse, as shown in the diagram below.
Various types of equipment are required to ensure the smooth execution of work in a warehouse.
All equipment should be properly stored when not in use and a regular maintenance schedule
posted. Warehouse staff should be trained in standard daily maintenance practices and the correct
use of equipment. Where necessary, they should be equipped with personal safety equipment
such as work gloves, work boots, goggles, etc.
sufficient quantities of standard forms, calculators and stationery to keep proper storage
records;
small tools for opening cases, such as hammers, pliers, crowbars, steel cutters;
tools and materials for store repair and simple maintenance;
supplies for reconditioning damaged packaging, such as bags, needles, twine, oil
containers, stitching machine, strapping machine, adhesive tape and small containers or
cartons;
a sampling spear for inspecting foodstuffs;
scales for weighing goods;
standard wooden pallets in sufficient numbers – ideally international;
standardization organization‟s “Euro” type (120 × 80cm);
two-wheel hand trolleys for moving supplies within the warehouse;
a pallet-jack to move pallets;
a forklift where pallets are to be loaded and offloaded from trucks;
brooms, dust pans, brushes, shovels, sieves, refuse bins for cleaning and disposing of
collected waste;
first aid kits, flashlights, fire extinguishers and other fire-fighting equipment both inside
and outside the warehouse;
weighing scales; and ladders
CARE OF WAREHOUSE EQUIPMENT
planned maintenance
maintain equipment
maintain building
completion of maintenance records
LEGAL CONSIDERATION
The common practice in emergencies is to lease or rent, not purchase warehouses. In this
situation, there is often a shortage of suitable buildings or locations for warehouse space and this
can often cause the costs to increase significantly. Therefore, it is often necessary to utilize
temporary warehouse space for as short a time a possible.
Care must be taken with the drawing up of the lease agreement with the owner. The following
items are basic inclusions and in a lease agreement:
Inbound/Outbound Operation
Warehouse Invoicing
RF Enablement
Transport planning
On Demand Replenishments
In today‟s competitive business there is an increased focus on delivering value to the customer.
The focus on attention of most of businesses is providing products and services that are more
valuable compared to its competitors. Concurrent to the focus on customer value, the
marketplace in which businesses operate today is widely recognized as being complex and
turbulent (Christopher, 2000; Goldman et al., 1995). The growth of supply chain aims to
improve profitability, customer response and ability to deliver value to the customers and also to
improve the interconnection and interdependence among firms. Due to market expanding from
domestic market to global market increase customer demands, for instance demanding lower
prices, faster delivery, higher quality products or services and increase the variety of items
(Braunscheidel, 2005). According to Towil and Christopher, (cited in Thatte, 2007), the end
customer in the marketplace today determined by the success of failure of supply chains
management practices. They stated that getting the right product, at the right price, at the right
time to the customer is not only improved competitive success but also the key to survival.
Many previous researches explored the importance of integrating suppliers, manufacturers, and
customers or supply chain integration (Frohlich and Westbrook, 2001; Clinton and Closs, 1997)
(i.e. supply chain management) so as to obtain flexibility and speed. By addressing supply chain
management practices that contribute to supply chain responsiveness, will help the researcher
better understand the scope and activities related to supply chain management that create
enhanced level of supply chain responsiveness in competitive business marketplace. The purpose
of this study to find out the effect of supply chain management practices such as strategic
supplier partnership, customer relationship, information sharing and supply chain
responsiveness. This study also investigates the effect of supply chain responsiveness in term of
operation system responsiveness, logistic process responsiveness, supplier network
responsiveness and competitive advantage of the firm. The paper is organized as follows.
Relevant literature is reviewed and synthesized first to develop a conceptual model, followed by
research methodology. The results are then presented along with discussion. Conclusion and
implication are discussed finally.
The systematic, strategic coordination of traditional business functions and tactics across
all business functions within a particular company and across businesses within the
supply chain, for the purposes of improving the long-term performance of the individual
companies and the supply chain as a whole[8]
The integration of key business processes across the supply chain for the purpose of
creating value for customers and stakeholders (Lambert, 2008)[10]
Supply chain management software includes tools or modules used to execute supply chain
transactions, manage supplier relationships, and control associated business processes.
Supply chain event management (SCEM) considers all possible events and factors that can
disrupt a supply chain. With SCEM, possible scenarios can be created and solutions devised.
1. Order Processing: Processing the orders received from the customers is an activity,
which is very important by itself and also consumes a lot of time and paperwork. It
involves steps like checking the order for any deviations in the agreed or negotiated
terms, price, payment and delivery terms, checking if the materials is available in stock,
producing and scheduling the material for shortages, and also giving acknowledgement to
the owner, by indicating any deviations.
2. Inventory Planning and management: Planning the inventory can help an organization
in maintaining an optimal level of inventory which will also help in satisfying the
customer. Activities like inventory forecasting, engineering the order quantity,
optimization the level of service, proper deployment of inventory etc. are involved in this.
3. Warehousing: This serves as the place where the finished goods are stored before they
are sold to the customers finally. This is a major cost center and improper warehouse
management will create a host of problems.
4. Transportation: Helps in physical movement of the goods to the customers place. This
is done through various modes like rail, road, air, sea etc.
5. Packaging: A critical element in the physical distribution of the product, which also
influences the efficiency of the logistical system.
COMPANY PROFILE
ABOUT UTi
As a non-asset-based supply chain management company with 313 offices and 245 logistics
centers in 59 countries, UTi develops and implements client-centric, global solutions for
international companies with unique supply chain requirements. By integrating IT platforms and
developing a UTi-client team approach to the planning and implementation process, our supply
chain solutions maximize efficiencies and cost-effectiveness. Benefits are also realized from
greater consistency and a more seamless flow of goods; higher levels of productivity from both
parties' personnel; and ultimately a lower cost per unit of production.
UTi OVERVIEW
UTi's global footprint of 313 offices and 245 logistics centers in 59 countries enables us to
develop and implement client-centric, global solutions with primary services that include:
Air and ocean freight forwarding
Contract logistics
Distribution
Managed transportation services
Customs brokerage
Supply chain analysis and consulting
The driving force behind UTi's client-centric focus and innovative solutions is also the most
important resource we have in keeping our service commitments to you: our people. Whether it's
a program utilizing one or more of our standardized services such as freight forwarding or
contract logistics, or a totally integrated, global solution configured to your specific
requirements, a dedicated team of professionals will develop the right solution for your needs,
then manage a process that will maximize value along your supply chain with high-quality, cost-
effective, time-definite delivery from end to end.
UTi HISTORY
From its inception in 1926, the history of UTi over the past 85+ years has been about growth
created by delivering client value. The company started as a freight forwarder in Germany and
grew into a global supply chain provider with 19,000+ employees and company-owned offices in
59 countries. UTi now offers complete supply chain services and solutions, including air,
ocean, distribution, customs brokerage, and contract logistics, capable of providing demand
chain services globally.
In 1993, Union-Transport was acquired by a group led by Roger MacFarlane, Peter Thorrington
and Tiger Wessels. Previously, these managers owned WTC Airfreight, which they sold to
Pittston, the holding company for Burlington Air Express. MacFarlane and Thorrington served as
joint CEOs of Burlington Air Express prior to the acquisition of Union-Transport.
By 1994, Union-Transport would have facilities on six of the world's seven continents,
generating revenues of over $300 million annually. Over the next seven years the company grew
to $1 billion in annual revenues; launched one of the first truly global end-to-end information
systems, eMpower, that provided clients with supply chain control and visibility; won a number
of industry excellence awards; and acquired several freight forwarding customs brokerage
companies to create a global network of transportation offices. The resulting network covered
98%-plus of the global GNP.
In 2000, the company was listed on NASDAQ under UTIW and changed its name to UTi
Worldwide, Inc. Since that time, revenues have grown to approximately $5 billion annually
through a combination of innovative client solutions that deliver quantified value, end-to-end
visibility and control down to the SKU level, and the addition of supply chain capabilities in
transportation management contract logistics and distribution.
Today, Eric Kirchner, a veteran of the global logistics industry, serves as CEO. While carrying
on the company's tradition of innovation, excellence and industry expertise, the focus today is on
the company's 5-year strategy, CLIENTasONE, a client-centric approach to delivering
competitive advantage to client supply chains wherever they operate worldwide.
FRIEGHT MANAGEMENT
At UTi, we look to optimize your supply chain first and foremost. We work with our teams
around the world to develop planning and implementation methods that will deliver the quality
you need at the cost you require. We utilize our extensive network of transportation carriers and
modes to manage and streamline your goods through each step in the process, including customs,
documentation, and compliance. If UTi manages your freight, you will be better positioned to
manage your supply chain through reduced cost, improved and consistent service levels, and
appropriate and predictable speed of delivery.
AIR
With more than 85 years of experience as a global forwarder, UTi's airfreight solutions offer you
the flexibility to meet a variety of transit time requirements from "yesterday to next week" while
allowing you to manage your transportation effectively. Through our extensive network around
the world you have access to all your markets through a single source--UTi.
Our Preferred Carriers Program leverages our strategic partnerships with airlines to provide
access to whatever capacity you need at rates you can afford and transit times that meet your
shipment requirements.
UTi's dedicated team ensures your freight is handled with the utmost security while complying
with all customs and regulatory provisions.
We have the resources and experience to plan and execute the right air transportation solution for
you every time.
As long as it fits in a plane, we can handle your shipment.
Our air freight services include:
UTi Air NFO
UTi Air Express
UTi Air Standard
UTi Air Economy
UTi Air Charter
UTi Sea-Air
Value-Added Services
DISTRIBUTION:-
UTi is a single-source distribution provider that delivers ground freight solution covering all
facets of the shipping and distribution process. We create value for clients by providing full
transportation and network optimization management services. Combining these resources with
logistics expertise and experience to provide efficient fleet management services drives
measurable results to your bottom line.
Our objective is to provide shippers with the right ground freight solutions to meet their diverse
supply chain requirements. You will benefit from the flexibility of our network as we take care
of each and every one of your needs.
UTI offers full shipment level visibility throughout the entire supply chain. Our service ensures
that you know where your shipments are every step from origin to destination.
We offer:
Mode and carrier selection
Shipment Optimization
Order consolidation
Track and trace
Inbound materials management & coordination
SKU level visibility
Supplier compliance
Expertise at securing carrier capacity
Freight Bill Audit and Payment
Assistance with your KPI reporting requirements
UTi provides professional contract logistics services for supply chains that
extend beyond the standard receiving, storing and shipping of products. Our value-added
services add efficiencies and cost savings, meaning direct value to your supply chain.
Services that become solutions
Materials management
In-plant logistics
Pick and pack, kitting, labeling
Pre-delivery inspection and testing
Electronics testing/configuration
Display build and setup
Specialty packaging/repack
Clamshell, blister pack, etc.
Parts cleaning and repair
Collateral and Point of Purchase (POP) support
Garment on Hanger (GOH)
Vendor Managed Inventory (VMI)
Supplier compliance
Maintenance
Containment
Grounds maintenance
EDI and document scanning
Light manufacturing
Contract manufacturing
Sequencing and line-side delivery
Shuttle runs
Returns processing/management
The UTi manages value-added services and multiple components of your supply chain, you
receive greater flexibility to react to various factors including market volatility, special orders,
inventory obsolescence and packaging changes. Our responsive and dedicated team of
professionals is here to provide you with the best service possible by refining and reconfiguring
solutions as you grow and change. Let us be your partner as we work together to drive cost and
complexity out of the supply chain.
DEDICATED WAREHOUSE
Our dedicated warehousing solutions provide you with a flexible facility layout and design to
meet the changing needs of your business. A dedicated facility provides the labor and equipment
required to manage day-to-day operations, but also something more: a competitive advantage.
Solutions dedicated to competitive advantage
In order to deliver competitive advantage worldwide, we help model your facility layout and
design in alignment with your operational processes. Our dedicated team of professionals
analyzes your entire supply chain in order to gather information and make informed decisions
and recommendations. Quality and continuous improvement are our everyday goals and we aim
to implement processes and procedures that lead to the reduction of total logistics costs for our
clients.
A FULL OF BENEFITS
With a warehouse facility configured and dedicated to your requirements, and a comprehensive
range of contract logistics services to add value to the process, UTi can provide you with a
single-source solution that makes certain your goods reach the marketplace efficiently and cost-
effectively. In addition, our technology systems give you the visibility needed for real-time
transactions and inventory allocation that will cut cycle times and improve inventory turns. We
can add revenue to your bottom line by cutting warehousing and administrative costs, allowing
you to focus on your core business initiatives.
MULTI-CLIENT WAREHOUSING
Our multi-client warehousing services allow you to focus on your core business while we
manage the flow of materials for you, as well as other clients, in a single facility. In this
configuration, the costs of space, labor and equipment are shared.
Our clients benefit by only paying for the amount of space, labor and equipment they use, with
access to additional resources as their business requirements fluctuate. The net effect is lower
overall cost and increased flexibility.
Additional value
Incorporating multi-client warehousing into a total contract logistics solution from UTi means
cost savings that go straight to your bottom line. Now space, labor and equipment are more
flexible than ever. In addition to flexibility, UTi's technology systems will give you the visibility
needed for real-time transactions and inventory allocation to cut cycle times and improve
inventory turns. Couple that with UTi's added emphasis on quality, supported by our compliance
with ISO standards, and you can be assured our dedicated team of professionals will continue to
manage the process efficiently and cost-effectively every step of the way.
IDENTIFIED PROBLEM:
The project concentrated on the problem in the warehouse is existing material receiving and
dispatching and their effect in the working environment. This project will explore the area where
the company concentrate and the solution. So that the company can make the use of efficient
manpower.
The Objectives of the study is to have a practical bright of the working of the organization. It
decisions, its brief historical background and its future prospects. The following can be said to be
the Major objectives of the study‟s.
To recommend the most suitable Receiving and Dispatching Methods for the product
Provide solution for Packaging & Receiving and Dispatching Material Problems.
1.4 Scope of the study
The main scope of the study is to ascertain the various methods to increase the Receiving &
Distribution of the concern. The methods include regular information and also to increase the
Effectiveness to Receiving and Distribution the material.
The scope of this study to know different factors and to develop the ability of decision making &
decision always is taken at right time.
Distinguishes one company‟s goods from those of another local & Other Countries
Company.
Check the Quality for the Material as well as the receiving and stuffing formats.
Protects both supplier and customers satisfaction
Time should be maintain
Check and balance is very important for every steps in warehouse
CHAPTER 2
REVIEW OF LITERATURE
Customer satisfaction a business term is a measure of how products and services supplied by a
company meet or surpass customer expectation. It is seen as a key performance indicator within
business and is part if the four perspectives of a balanced scorecard.
It‟s a well-known fact that no business can exist without customers. In the business, it‟s
important to work closely with your customers to make sure the system you create for them is as
close to their requirement as you can manage. Because it‟s critical that you form a close working
relationship with your client, customer service is of vital importance. That follows a selection of
tips which will make your clients feel valued, wanted and loved.
Purpose Customer satisfaction provides a leading indicator of customers purchase intentions and
loyalty. Customer‟s satisfaction data are among the most frequently collected indicator of the
market perceptions. It‟s a principle:
Within organization, the receiving and dispatch of these data send a message about the
importance of tending to customer and ensuring that they have a positive experience with
the company‟s goods and services.
Customer satisfaction:-
Customer focus
Customer grievances
Customer property
Customer feedback
Special requirement of customer
Timely supply
Time management
Should not be reversal
Should be perfect
CHAPTER 3
RESEARCH METHODOLOGY
“Gain may be temporary and uncertain; but ever while you live, expense is constant and certain;
and it is easier to build two chimneys than to keep one in fuel.”- Benjamin Vranklin
In this chapter we will see the methodology adopted, and will analyze the study to be in
state to suggest something to company on basis of study conducted at UT Logistics.
3.1 METHODOLOGY
To accomplish the objectives of the final trimester, the following was decided upon:
1. Research Design: The methodology adopted for study of Receiving & Dispatch of UT
Worldwide India Pvt. Ltd. is Empirical Investigation.
2. Data Collection: The data collection done for empirical investigation was of two kinds,
namely secondary research and primary research. Secondary study was done through
open interviews, discussions, self observations of processes and procedures involved in
R&D (Receiving and Dispatch) of UTi. And to accomplish the third objective primary
data was collected from questionnaires filled by the respondents (those are UTi
employees).
3. Sampling Method: The sampling method chosen for the study was Judgmental Non-
Random Sampling.
4. Sample Size: The sample size selected was 100.
5. Sampling Unit: The sampling unit will be employees of UTi concerned with SCM.
6. Result analysis: The project analyzed the supply chain of UTi by going through the
standard operating procedure followed in each concerned department of SCM. Then I
had analyzed the results of questionnaire applying DMAIC (define, measure, analyze,
improve, control) rule. My perspective was to do analysis and find the factors behind
delays of dispatches. During this analysis we would be figuring out the main reasons
behind the problem stated in objective. The questionnaire designed for this purpose is
being categorized department wise so as to find that from whose end the problem can be
solved.
7. Questionnaire Design: The questionnaire has 18 questions including both Receiving &
Dispatch
3.2 DATA COLLECTION FOR SECONDARY STUDY
The data source used for secondary research was open interviews, discussions, self observations
of processes and procedures involved in Receiving & Dispatch of UTi
Departments Like:
Receiving department
Packaging department
Stuffing department
CHAPTER 4
Frequent Customers
Table No 1
60
18
10 9
3 3% 60% 10% 9% 18% 100%
Inference:
From the above table found that 60% of the invoices done for Thailand in the warehouse
and the 18% for Russia and the 10% for Chain and the 9% for Brazil and finally 3% for
Vietnam.
Holding time of damage parts
Table No 2
100%
51% 100
36%
51 9% 4%
36
9 4
1 Day 3 Days 7 Days 15 Days > Total
Above
Inference:
From the above table found that 53% holding time of damage part for 1 day in the
warehouse and the 35% for 3 days and the 9% for 7 days and finally 3% for 15 days
above.
Problem faced while receiving
Table No 3
Total
3
Transit damages
2
0 20 40 60 80 100 120
No Of Invoices Percentage %
Inference:
From the above table found that 43% of the problem while receiving the material is
packing related Issue in the warehouse and the 29% of the problem is Physical Miss
Match and finally 28% of the problem is Transit damage.
Preceding steps in the drop down pallet – While receiving
Table No 4
No Of Responds Percentage%
100%
62%
100
62 27%
27 11%
11
Inference:
From the above table found that 65% of the problem while receiving is Part Hold in the
warehouse and the 25% is Inform to customer and finally 10% is Quality will Check the
material whether it is huge or small damage.
Receiving – Check point
Table No 5
No Of Responds Percentage%
100
31 29
23
11
6
11% 6% 31% 29% 23% 100%
INFERENCE:
From the above table found that 31% of the people check while receiving material is
TDR(Transport Damage Report) in the warehouse and the 29% of the people check
ISPR(Improper Shipping Product Report) and the 23% of the people check Packing Issue
and the 11% of the people check Pallet Status and finally 6% of the people check Stamp.
Following steps after receiving material
Table No 6
No Of Responds Percentage%
17 17%
Waiting Cubic Utilization
20 20%
Put Away
Booking/Invoice 63 63%
Inference:
From the above table found that 63% of receiving material without any issue is sent for
Booking / Invoice in the warehouse and the 20% of the material Put Away and the
finally 17% of the material is waiting for space(vanning) Waiting Cubic Utilization.
Supplier mistakes
Table No 7
No Of Responds Percentage%
Inference:
From the above table found that 38% of the mistakes from supplier is found that Packing
related Issue in the warehouse and the 26% of the mistakes is EASN Issue and the 22%
of the mistakes is Physical Miss Match and finally 14% of the mistakes is Value Miss
Match (price).
Transport vessel
Table No 8
Percentage % No Of Responds
100%
Total 100
11%
SINARTANJUNG 11
26%
IB NAL ABBAR 26
24%
IWAKI 24
39%
L AMANDA 39
Inference:
From the above table found that 39% of the Transportation vessel is used L AMANDA in
the Warehouse and the 25% is used Iwaki and the 25% is used IB NAL ABBAR and
finally 11% is used SINARTANJUNG.
.
73T - Reversal
Table No 9
No Of Responds Percentage%
100
67
33
Yes No Total
Inference:
From the above table found that 65% of the people are said make a container swiping
method to change the transaction “Yes” and the 35% of people are said” No” can‟t
change after completing the transaction.
Problem – While dispatching
Table No 10
No Of Responds Percentage%
100
41
29
13 17
29% 41% 13% 17% 100%
Inference:
From the above table found that 41% of issue while dispatching is Transportation
issues(like container late)in the warehouse and the 29% of issues is Quantity and the 17%
of issues is Packing Issue and finally 13% of issues is Physical Miss Match.
Check point in dispatching material
Table No 11
No Of Responds Percentage%
100
42
39
19
42%
19%
39%
100%
Right Part &
Check
Right Pallet Mis's
Damage Total
Container Match
Inference:
From the above table found that 42% is the check point of while dispatching the material
is Right part & Right Container in the warehouse and the 39% of check point in Pallet
Miss Match and finally 19% of check point in Check any Damages in material.
Packing materials
Table No 12
Percentage% No Of Responds
100%
Total 100
20%
Tapes 20
21%
Wood 21
9%
Oil 9
18%
Silicon 18
32%
VCI Bag 32
Inference:
From the above table found that 32% of the packing material is used VCI bag in the
warehouse and the 21% is used Wood and the 20% is used Tapes and the 18% is used
Silicon and finally 9% is used for cleaning the material on Oil.
Why 73T Reversal can happen
Table No 13
No Of Responds Percentage%
100%
46% 100
37%
46 37
17%
17
Inference:
From the above table found that 46% of the reason is no space shortage in the container
Cubic utilization is High in the warehouse and the 37% of the reason is Physical Mistakes
like (part number, Quantity mistakes, add more pallet ) and finally 17% of the reason is
Wrong Container number.
Packing types – Shipping
Table No 14
2 RSR 24 24%
3 W Box 33 33%
4 Body Parts 27 27%
Total 100 100%
Chart No 14
No Of Responds Percentage%
100%
100
33%
24% 27%
16% 33 27
16 24
Inference:
From the above table found that 33% of the packing types for shipping transportation is
done by W Box in the warehouse and the 27% of the packing type via ocean is Body
parts and the 24% of the packing type is RSR and finally 16% of the packing type is Steel
racks for ocean transportation.
Types of packing
Table No 15
No Of Responds Percentage%
100%
56%
56 100
26%
26 18%
18
RSR
W Box
Cotton Box
Total
Inference:
From the above table found that 56% of the packing types is done by RSR in the
warehouse and the 26% is done by W box and finally 18% is done by Cotton box.
Preceding steps in the drop down pallet – While dispatching
Table No 16
No Of Responds Percentage%
100
64
21
15
64% 21% 15% 100%
Inference:
From the above table found that while dispatching the material is 64% of the pallet
Load it in same container in the warehouse and the 21% is Inform to customer and finally
15% is Inform to Client for further clarification.
Problems in packing
Table No 17
No Of Responds
No Of Responds
100
43
22
11 24
Dent
Scratch
Short Rust
Filled Total
Demage
Inference:
From the above table found that 43% of the mistakes identify while packing the material
is Scratch in the warehouse and the 24% of the mistakes identify as Rust and the 22% of
the mistakes identify as Dent and finally 11% of the mistakes identify as Short filled
damage in the material.
Packing types – Airfreight
Table No 18
W Box, 48
Total, 100
Cotton Box, 52
INFERENCE:
From the above table found that 52% of the packing type for airfreight W Box in the
warehouse and the 48% of the packing type is Cotton box for secure in airways.
CHAPTER 5
FINDINGS
1. From the above table found that 60% of the invoices done for Thailand in the warehouse
and the 18% for Russia and the 10% for Chain and the 9% for Brazil and finally 3% for
Vietnam.
2. From the above table found that 53% holding time of damage part for 1 day in the
warehouse and the 35% for 3 days and the 9% for 7 days and finally 3% for 15 days
above.
3. From the above table found that 43% of the problem while receiving the material is
packing related Issue in the warehouse and the 29% of the problem is Physical Miss
Match and finally 28% of the problem is Transit damage.
4. From the above table found that 65% of the problem while receiving is Part Hold in the
warehouse and the 25% is Inform to customer and finally 10% is Quality will Check the
material whether it is huge or small damage.
5. From the above table found that 31% of the people check while receiving material is
TDR(Transport Damage Report) in the warehouse and the 29% of the people check
ISPR(Improper Shipping Product Report) and the 23% of the people check Packing Issue
and the 11% of the people check Pallet Status and finally 6% of the people check Stamp.
6. From the above table found that 63% of receiving material without any issue is sent for
Booking / Invoice in the warehouse and the 20% of the material Put Away and the
finally 17% of the material is waiting for space(vanning) Waiting Cubic Utilization.
7. From the above table found that 38% of the mistakes from supplier is found that Packing
related Issue in the warehouse and the 26% of the mistakes is EASN Issue and the 22%
of the mistakes is Physical Miss Match and finally 14% of the mistakes is Value Miss
Match (price).
8. From the above table found that 39% of the Transportation vessel is used L AMANDA in
the Warehouse and the 25% is used Iwaki and the 25% is used IB NAL ABBAR and
finally 11% is used SINARTANJUNG.
9. From the above table found that 65% of the people are said make a container swiping
method to change the transaction “Yes” and the 35% of people are said” No” can‟t
change after completing the transaction.
10. From the above table found that 41% of issue while dispatching is via Transportation
issues (like container late) in the warehouse and the 29% of issues is Quantity and the
17% of issues is Packing Issue and finally 13% of issues is Physical Miss Match.
11. From the above table found that 42% is the check point of while dispatching the material
is Right part & Right Container in the warehouse and the 39% of check point in Pallet
Miss Match and finally 19% of check point in Check any Damages in material.
12. From the above table found that 32% of the packing material is used VCI bag in the
warehouse and the 21% is used Wood and the 20% is used Tapes and the 18% is used
Silicon and finally 9% is used for cleaning the material on Oil.
13. From the above table found that 46% of the reason is no space shortage in the container
Cubic utilization is High in the warehouse and the 37% of the reason is Physical Mistakes
like (part number, Quantity mistakes, add more pallet ) and finally 17% of the reason is
Wrong Container number.
14. From the above table found that 33% of the packing types for shipping transportation is
done by W Box in the warehouse and the 27% of the packing type via ocean is Body
parts and the 24% of the packing type is RSR and finally 16% of the packing type is Steel
racks for ocean transportation.
15. From the above table found that 56% of the packing types is done by RSR in the
warehouse and the 26% is done by W box and finally 18% is done by Cotton box.
16. From the above table found that while dispatching the material is 64% of the pallet
Load it in same container in the warehouse and the 21% is Inform to customer and finally
15% is Inform to Client for further clarification.
17. From the above table found that 43% of the mistakes identify while packing the material
is Scratch in the warehouse and the 24% of the mistakes identify as Rust and the 22% of
the mistakes identify as Dent and finally 11% of the mistakes identify as Short filled
damage in the material.
18. From the above table found that 52% of the packing type for airfreight W Box in the
warehouse and the 48% of the packing type is Cotton box for secure in airways.
SUGGESTIONS
1. Man Power can increased and also warehouse handling equipment‟s like forklift and
hand trolley can be increased
3. No of Vanning lanes in the warehouse can be increased to reduce over stock in receiving
area.
4. Organization can give full assure for the theft and damage of the products. It will increase
the image of the company.
6. Inventory can be kept in a safe, secure (locked) place with limited general access.
8. A record can be maintained for each item in stock showing the quantity on hand, quantity
received, quantity issued, & location in the warehouse.
9. Monthly, Quarterly, half and yearly Audit can be done by the authorized department to
maintain the records.
10. Advance warehouse equipment‟s can be introduced for the purpose of time consumption.
11. Instructs the warehouse personnel what items to pick or put away and where and when to
perform those activities.
CONCLUSION
From the discussion of the above research , it can be concluded that this
process can be improved by reducing or maintain the operation. With combination of work
process and time measurement its help to improve the current work process. These
modifications are made by analysis of using the tools of Operation Research like PERT
(Product evolution review technique) work contents. From the comparison between current
and new work process in table --- it indicates that the best alternative towards this problem
by choosing proposal . These improvements was successful to achieve the project goals and
objectives, which the improvements was included the processes of operation that carries in
the warehouseThe warehouse is a key component of the supply chain in emergencies. It
buffers uncertainties and breakdowns that may occur in the supply chain. When properly
managed and appropriately stocked a warehouse provides a consistent supply of material
when it is needed.
There are several affairs that must be attended during collecting data. The data collections
are the important part for analyzing and obtain accurate outcomes. And the time study is done on
the bases of the systematic observation by this analysis we can do the crashing method to reduce
the time as well as the cost for the each and every steps that involved in this process. By
comparing the shipment process after this needs to make some effective flow in the operation by
the crashing process.
BIBLIOGRAPHY
Olsen, D.R.(2003), Gower Handbook of Supply Chain Management, 5th Edition, edited
by John Gattorna, Gower
Rushton, A., Oxley, J., and Croucher, P., (1989,2000), The Handbook of Logistics and
Distribution Management (Second Edition), Kogan Page, London
Robeson, J.F. and Copacino, W.C. (1994), The Logistics Handbook, The Free Press
Mangan, J., Lalwani, C., and Butcher, T. (2008). Global Logistics and Supply Chain
Management, John Wiley & Sons, Hoboken, New Jersey.
A.A. Thatte (2007), “Competitive advantage of a Firm Through Supply Chain
Responsiveness and Supply Chain Management Practices”, Published PhD Dissertation.
University of Toledo.
Ashish A. Thatte. (2007), “Competitive Advantage of a Firm through Supply Chain
Responsiveness and SCM Practices” Published, PhD Dissertation. The University of
Toledo.
Ballou, R. H., Gilbert, S. M., & Mukherjee, A. (2000). New managerial challenges from
supply chain opportunities. Industrial Marketing Management, 29, 7-18.
Bommer, M., O‟Neil, B. and Treat, S. (2001), “Strategic Assessment of the Supply Chain
Interface: a Beverage Industry Case Study”, International Journal of Physical Distribution
and Logistics Management, 31(1), pp.1125.
Bowersox, D.J. and Closs, D.J. (1996), Logistical Management: The Integrated Supply
Chain Process, McGraw-Hill. Chen, I. J. and Paulraj, A. (2004), “Towards A Theory of
Supply Chain Management: The Constructs and Measurements”, Journal of Operations
Management, 22(2), pp. 119- 50.
ANNEXURE
DEMOGRAPHIC:
1. Age: a) 20-30 b) 30-40 c) 40-50 d) above 50
QUESTIONS:
1) Nature of businesses, history of operations?
ANS:
ANS:
7) Security level?
ANS:
11) Can goods be issued directly from the goods receipt area?
ANS:
12) What kind of form (printout) are you taking for stock putaways (GR slip, transfer
order form, sticker, etc.)?
ANS:
14) Which
14143 of the following you think that your company needs to do in order
to manage its supply chain better? Tick all that
apply.
JIT supply
e-procurement
EDI
Outsourcing
Subcontracting
3PL
Plan strategically
Vertical integration
Few suppliers
Many suppliers
16) How satisfied are you with the current public policy regarding SCM and IT?
1 2 3 4 5
17)
a.b.