Davis Final Report

8/12/2019 Davis Final Report

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WAREHOUSE MANAGEMENT

INTRO

India, by witnessing huge demographic transformation fuelled by the consumption led growth,stands as an attractive destination globally for the franchising fraternity. Consumerism isgrowing rapidly aided by high population, increasing household incomes over the last twodecades. Overall, the Indian economy has witnessed a structural shift from an agricultural basedeconomy to a service based economy. Franchising as a concept has been prevalent in India sincea long time. However, shifting consumer trends including growing preference for brandedproducts, global exposure and use of international brands is driving adoption of the franchiseroute to growth.

In this Proect I have opted to go with fashion brands li!e "teve #adden and $ui!silver whichare franchises of %eliance India &td. under %eliance 'rands &td. $ui!silver designs, producesand distributes clothing, accessories and related products for young minded people and developsbrands that represent a casual lifestyle driven from a board riding heritage. (he warehouse andhead office for %eliance India is located in %CP )%eliance Corporate Par!*, +hansoli.$ui!silvers authenticity is evident in its innovative products, events and retail environmentsacross the globe. $ui!silvers products are sold throughout the world primarily in surf shops andother specialty stores that provide authentic retail experience for their customers. -ith respect to"teve #adden, its being considered the fashion footwear mogul of the /st century, "teve#adden has been responsible for the design and mar!eting of the companys trendsetting shoessince he founded the brand over decades ago. In /001, with a mere 2/,/11 in his ban! account,#adden started crafting shoe designs from his $ueens3based factory and the "teve #addenbrand was born. -ith sheer guts, years of experience in the footwear industry, and uni4uecreative designs, "teve #adden formed one of the most iconic fashion brands in 5merica. Hehas an innate sense of whats hot, whats next and whats exciting. His vision to give fashion

forward men and women a uni4ue way to express their individuality through style resulted inmillions of customers worldwide and propelled his designs to the forefront of the fashionindustry. Inspired by roc! and roll, fused with a olt of sex appeal and urban edge, #addencreates products that are innovative, sometimes wild and always spot3on3chic. #addens visionis continuously evolving. (oday, fashion is dictated by individual style and the "teve #addenbrand represents a lifestyle. It is about embracing fashion while still maintaining that fun!yindependence that first defined the brand 1 years ago. -ith his product offering now includingother accessories such as watches, ewelry, handbags, belts, sun wear, cold weather, outerwearand hosiery, "teve #adden is always loo!ing toward to the future.

Reliance brand Limited (RBL) founded in 116, a part of #u!esh 5mbani3led %eliance

Industries )%I&*, will be completing 7 years in "eptember. %eliance 'rands &imited is dedicatedto bringing iconic international brands to India and elevates the world of fashion 8 lifestyle.%ight now %eliance 'rands is associated with many International 'rands li!e 9iesel, Paul 8"har!, (imberland, :rmenegildo ;egn, $ui!silver and %oxy, 9C "hoes, "teve #adden,Hamleys,


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%apid growth and rising urbani=ation have spawned a new class of consumers with more moneyto spend, and a growing passion for fashion brands li!e "teve #adden. (odays customers aremore sensitive and demanding than ever. (hey want fast, friendly service on their terms everytime they come to a store and if they do not receive this they abandon the store and move to

another store. Physical appearance and convenience are the most basic mar!eting tools which"teve #adden uses to enhance customers shopping experience and to create a competitiveadvantage. (herefore we can see "# having similar loo!s for its stores and with respect to itslocation #alls where footfalls are high and brings in people who are aptly potential customersfor "# and these factors along with the overall service 4uality assures higher customers retentionand higher customer loyalty.

-arehouse management is the art of movement and storage of materials throughout thewarehouse and it deals with the receipt, storage and movement of goods usually finished goodsand includes functions li!e warehouse master record, item3warehouse cross3reference lists andsuch things as on hand, allocated, transfers in process, transfer in process, and transfer lead time,

safety stoc!, and fields for accumulating statistics by location. -arehouse management monitorsthe progress of products through the warehouse. It involves the physical warehouseinfrastructure, trac!ing systems, and communication between product stations. %etailers are nowreali=ing the impact of effective inventory management on their bottom line. Inventorymanagement is the number3one supply chain initiative, current and planned. -hile setting up awarehouse demands a certain amount of space as it deals with stoc!ing of all the merchandise,having a proper logistics in place for the movement of goods is a vital part of warehousing.

SWOT for SM (Stee Madden)

Stren!t"#

"# is !nown for its uni4ue and interesting shoe design and style, popular with celebrities.

Wea$ne##

'rand positioning in consumers mind as being too expensive and may be not everyday wear.

O%%ort&nitie#

Create demand for its shoes and accessories by updating consumers idea of the company. (hebrand has the criteria to be seen as a high fashion line widening the target mar!et.

T"reat#

;ara Fashion, , catwal!

WAREHOUSE

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(he warehouse and head office for %eliance India is located in %CP )%eliance Corporate Par!*,+hansoli. 5 warehouse is a location with ade4uate facilities where volume shipment are receivedfrom a production centre, bro!en down, reassembled into combinations representing particularorders, and shipped to the customers locations. -arehousing is an indispensable part of supply3chain management, its the storage of goods until they are needed and the goal of warehouse

operations is to satisfy customers needs and re4uirements while utili=ing space, e4uipment, andlabour effectively. %etailers usually set up a central warehouse and many regional warehouses.(he regional warehouses help in timely order fulfillment at stores across the country.-arehouses are more often than not set up at locations on the outs!irts of the city where it canget the amount of space re4uired at a lesser cost as compared to setting it up inside the city. (heproperty prices start coming down once we start moving away from the city limits. -arehousingcan be set up at any given area. (hey generally vary from /111 s4 ft to /1, 11,111 s4 ft. 5s suchthere is no limitation on the build3up area re4uired for warehousing. Investment re4uirement forconstructing a state3of3the3art warehouse, including the land cost and providing all theinfrastructure facilities )heavy duty rac!s, conveyor belts from pic!ing to pac!ing to staging areadoc! levelers and material handling e4uipment li!e for!lifts, pallet, stac!ers, etc* is somewhere

around %s [email protected]'ENSING O WAREHOUSE IN INIA

:ach state has passed a warehouse act, which governs the wor!ing of the warehouse of thecentral or state warehousing corporations or any private warehouseman. Ander this act, everywarehouseman has to obtain license. (he following are some of the conditions laid down for thegrant of a license for warehousingB

3(he warehouse must be suitable for proper storage of the class of goods intended to be stored.3(he applicant must be competent to conduct such a warehouse.

3(he applicant must fulfill any condition that the state government may notify from time to time.3(he applicant must pay the fees prescribed for the issue of a license and also furnish security.3Ander the state warehouses acts, a warehouseman ta!es such care of the goods stored with himas a man of normal prudence would ta!e of his own goods.

3 (he warehouseman must !eep his warehouse clean and in a hygienic condition, and ta!e all thenecessary precautions against rats, pests, etc.

3+oods are re4uired to be compulsorily insured against damage by fire, floods, theft or any otheraccident.

'HARA'TERISTI'S O WAREHOUSE

(he warehouse activity wor! is non3value addingD wor!. For better profits the stores should notexist and the material movement should be reduced to =ero as these are non3value addingactivities and this is because valueD is what the customer is prepared to pay for. 5 customer iswilling to pay for is the physical conversion@ processing of material into product. (heconfiguration of the product forms only one element of what a customer is willing to pay for.

5lso customer needs other points such as followingB

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3(he product should be available

3 5t a re4uired location

35t re4uired time.

-arehouse provides these values. (hese are apart from value added due to conversion. For thatreason management must pay the maximum attention to the stoc!ing and handling relatedactivities. (he reduction and elimination of unnecessary activity re4uires care and attention in theplanning of these activities so that the performance of the system improves. For that it isobserved that the locations of most stores, they tend to be placed at a remote corner, out of sightand mind. -hat is really re4uired is that the storage of material be as close to the point of use aspossible. (his facilitates communications with production, and also ma!es the movement ofmaterial simpler. -arehouse away from factory may be acceptable coupled with good transportarrangements and good information communication system bac!ed with computer arrangements.

*UR*OSE O A WAREHOUSE

(he purpose of setting up a warehouse is to have a place for the storage of goods which cannotbe !ept in the store but can be re4uired at any moment. (he primary role of warehouses is tostoc! the garments for which orders have been already placed by our franchisees. -arehousingma!es business sense. (he whole team of professionally trained people is connected via :%Psystem. 5ll the stoc!s can be seen at the company, all warehouses and franchisees and forcompanies without :%P system excl sheets of the same data are shared with. (he databasemanaged at warehouses provides useful reports about the status of goods in the warehouse. (heprogress of products in the warehouse is monitored which involves physical warehouseinfrastructure, trac!ing systems and communication between product stations.

(he concept of distribution warehouse or a distribution centre is vastly different from the earlierconcept of a godown for storage. (he godown is merely a dumping place. +odowns aremaintained merely for storage of surplus goods. (he earlier concept, which led to theestablishment of warehouses, was based on the need for ensuring a continuous, uninterruptedsupply of goods in the mar!et area for the followingB

)/* :nsuring protection against delays and uncertainties in transportation arising from a varietyof factors.)* :liminating lac! of sophistication in production control and conse4uent uncertainties in theavailability of product at the desired time and place.)?* Providing for adustment between the time of production and the time of use because

production and use can be seldom synchroni=ed.

From the foregoing, it is obvious that earlier a warehouse was considered a necessary evil whichwas to be tolerated, but which did little to provide a differential advantage. (he moderndistribution centre or distribution warehouse is a pivot in the physical distribution system.5ccording to this system, movement is the primary obective of a warehouse. 5s per this newconcept, a warehouse is a location where inputs )incoming factory shipment* are converted intooutputs )outward shipments representing orders of customers*.this conversion ta!es place

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without consuming too much time. (he goods may be received over a period of time fromdifferent places, combined or bro!en down into each individual customers orders, anddispatched to the next point in the distribution channel without their coming to rest within theconfines of the distribution centre. "ince the usual and often inevitable lac! of coordinationbetween inbound and outbound goods, storage facilities of a temporary nature must be provided.

UN'TIONS O WAREHOUSE

(he functions of warehouse are as followsB

Receie t"e MaterialB 3 %eceiving and accounting of products. (his receiving is to be done frommanufacturing factories and subcontractors directly. Count for proper 4uantity as per thedocuments.

Store t"e Material %ro%erl+B 3 Provide the right and ade4uate storage and preserve the materialproperly. :nsure that the materials do not suffer from damage, pilferage or deterioration. -henreceiving the material it is to be seen that often the products come in big pac!s of more numberof 4uantity.

Mi,in! of materialB 3 (he products and subassemblies are received from different sources areoften re4uiring mixing and assembling together to satisfy need of customers. (his ob is atincreasing day by day. "ome main warehouses of engineering goods are coupled with a smallassembly shop and finishing wor! li!e ust attaching nameplate after final chec! up.

Remoe t"e material -"en re.&iredB 3 Facilitating easy location and removing materials.

elier t"e material to ri!"t %laceB 3 Fulfilling the demand of customer and mar!ets by proper

issue of items on the receipt of authori=ed documents. (his includes consolidating there4uirements from customer. In a pac!age of order there will be number of products,subassemblies, which are to be collected from different suppliers.

/ee% t"e record# %erfectl+ in di#ci%lineB 3 (o maintain proper records and update receipt andissue of materials

*ac$a!in! and -aitin! for orderB 3 Often warehouse person has to ma!e pac!age for deliverytill the final order is received with payment conditions fulfilled by customer. (he material is thenloaded carefully in the transport vehicle to present to the customer in appropriate condition.

Maintainin! !ood "oe$ee%in!B 3 #aintain by !eeping the warehouse clean and is good orderso that the handling, preservation, stoc!ing, receipt and issue can be done satisfactorily.

/ee% %ro%er controlB 3


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Aoid $ee%in! #&r%l materialB 3 #inimi=ation of surplus and obsolescence through properinventory control, and effective disposal of surplus and obsolete items.

0erification of #toc$# at re!&lar interalB 3 Eerifying the bin card balances with the physical

4uantities in the bins and initiating the purchasing cycle at appropriate time so as to avoid the outof stoc! situations.Arran!in! tran#%ortB 3 For presenting the product consignment to the customer it is essential toplan and arrange proper vehicle. (his needs to be done for !eeping economy and 4uality. (heplacing the product upside down etc as per need is very much re4uired to maintain the product4uality.

*RI0ATE WAREHOUSING

(he construction and maintenance of private warehousing facilities can be extremely costly. 5llexpenses have to be carefully analy=ed and evaluated. (hese areB

3Fixed expenses and building and land ac4uisition cost, which are high.3:xpenses incurred on ensuring that warehouses are properly e4uipped with material3handlinge4uipment li!e conveyors, for!lifts, hand truc!s, rac!s and bin, and doc! levelers.3(he cost of salaries of staff re4uired for pea! activity periods, which can be very high.3(he cost of maintaining insurance records and of the premiums paid for fire, theft, and also forwor!mens compensation.3(o this must be added the cost of regular maintenance and repairs and the cost of such items asfuel, air3conditioning, power and light.

A0ANTAGES O *RI0ATE WAREHOUSING

"ince the warehouse for $ui!silver is a Private warehouse, therefore Ill detail a bit about privatewarehouses alone. (he advantages of private warehousing are as followsB

3Private warehousing offers better control over the movement and storage of products as re4uiredby the management from time to time.3(here is less li!elihood or errors in the case of private warehousing since the companys productare handled by its own employees.3In some locations, for certain products or materials, public warehousing may not be availableand only solution possible may be the establishment of a private warehouse.

T1*ES O WAREHOUSES

$ui!silver warehouse is of the following typesBi#trib&tion Ware"oe#2

(hese warehouses are located close to the manufacturing concerns or consuming areas. (heirlocation depends on the nature of the product, the time ta!en for transit, operating coast and theneed to ma!e the product available in the mar!et in obedience to the demand for it.

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B&ffer Stora!e Ware"oe#2

(hese warehouses are built at strategic locations with ade4uate transport and communicationfacilities. (hey store food grains or fertili=ers, etc.

E,%ort and Im%ort Ware"oin!2

(hese warehouses are located near the ports from where international trade is underta!en. (heyprovide transit storage facilities for goods awaiting onward movement. Facilities for brea!3bul!,pac!aging, inspection, mar!eting, etc., are available at these warehouses.

WAREHOUSE ESIGN

(he stores activity has characteristic of non3value added activity. (he warehouse for $ui!silveris located at a remote place. (he stores add value to the production activity.

(here is a uni4uely ideal manner to design all stores. In the view of obectives, in the correctproportion, depends on the situation and on the experience and !nowledge of the designer.

"tores design is not li!e any other office design which can be changed on and often as changingthe stores design is a costly matter and therefore proper thin!ing is done well before ta!ingactions and finali=ing the final design.

'ONSIERATIONS OR WAREHOUSE ESIGN

How well does the store meet the needs of its customerG Is appropriate technology being usedG How well are the resources utili=ed in the storeG How manageable is the storeG How flexible is the storeG

How well a store meets the needs of its customer depends on the customer and what his needsare. "peed of response, stoc! rotation, and the flexibility to accommodate a variety of parts etc.could be some of the needs that may be need to be addressed. Customer need is an outputexpected from the store. (he e4uipments can be used in the stores are narrated in the furtherchapters. (he staff and the wor!ers need to be provided with training. It is necessary to studywhat e4uipments will be useful for satisfying the needs. 5part from the cost of the followingpoints must be studied along with volume of receipts and the dispatches before deciding.3"hould be the re4uirement and use for wor!ers.3(he physical matters li!e dimensions, weights, and speeds of the e4uipments.3"hould be easy to maintain.WAREHOUSE LO'ATION

(he following considerations determine the location of a warehouseB

#ar!et service area and cost of distribution from the warehouse to the mar!et area.

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"atisfaction of transport re4uirements and facilities available in the form of rail spur, lin! roadsand vehicles. (ransportation rates prevailing in the area and distribution cost per unit. Competition by rival companies and whether they have warehouse in the same area. 5vailability of power, water, gas, sewerage disposal and their cost.

&abour supply and labour cost in the area. Industrial relation climate and labour productivity. Pricing arrangements and the level of service desired to be rendered in terms of availability ofthe product to the customer. Individual company re4uirements and constraints, including commitments, if any, made toemployees and others about a particular location which may influence a decision. %eal estate, excise and government taxes assessed in the area. 5ttitudes of local residents and government toward establishment of the warehousing. Potential for later expansion. Cost of land for the warehouse and other costs. Possibility of change in the use of the facility at a later date if the company so desires, and lease

or sale of the land and building.5n ideal warehouse location has following characteristicsB It protects the stoc!s against ground moisture, rain, obectionable odours, insects, rodents,birds, poultry, cattle, thieves, wind, fire, etc. It provides the necessary facilities for manual and mechanical operations, inspection,disinfection, cleaning, reconditioning, pac!aging, etc. of the commodities. It is an economic unit, close to the mar!et or railway siding with ade4uate covered platformsand connected by good motorable roads. It offers the necessary amenities, such as water for drin!ing and fire3fighting, office andresidential accommodation, etc. 5s far as possible, it is located away from grain mandies, grocery or shopping centres, grainfields, garbage dumping grounds, sewerage tan!s and disposal plants, dairies, poultry farms,tanneries, factories, because their close proximity is detrimental to healthy storage facilities. -ithin a given general areas chosen for a warehouse, the choice of a particular site depends onaccess, availability of transportation to and out of the site, are its proximity to maor customers. (he site is not cut off from any part of the total service area by a river or other geographicbarriers.

'A*A'IT1 O WAREHOUSE

(he term capacity of a warehouse refers to the overall cubic content of the warehouse building,as well as the length, width, and height. (he volume content of a warehouse building is affectedby a number of factors. "ome of these are enumerated belowB3

(ype of material to be handled Handling system to be used "toc! layout arrangements 9oc! re4uirements &ocal building codes Office area re4uired

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"etting up a fixed warehouse at a given location becomes a constraint on warehouse operationsfor number of years. (he internal layout may be changed with a relative ease. 'ut it is difficult tochange the overall si=e of the warehouse. (hrough the warehouse si=e may be expanded at a laterdate or extra place may be leased, the resulting available space may not be ideal. In general, poorplanning of the warehouse leads to either higher material handling costs in the warehouse with

lower designed capacity or unnecessary space cost if larger space than what is re4uire isdesigned.

WAREHOUSE ORGANISATION

(he main activities at the $ui!silver warehouse are receiving, transport, finished goods storesand accounting. (he movement department is often reporting to materials manager. However ithas lin! with stores management. (his is administratively reporting to stores management butfunctionally it is with mar!eting departments.

From the total control point of view the warehouse may get included with the rest of materials

activities. (his facilitates the coordination among related materials activities from the point ofview of operations. It has also important ob of inventory control.

-arehouse activity is related with the production department. (hat is because of the followingB3 In order to run the production operation smoothly the production management must completeunderstanding of product mix to mar!et their schedules.

3In order to supply the re4uired products to the mar!et the production shops have to plan thematerials, manpower, machines etc.

WAREHOUSE O*ERATIONS

(he essential processing of materials in $ui!silver warehouse involves following operationsB

Receiin! Good#2(he warehouse accepts the merchandise delivered by a transporter or an attached factory andthen accepts the responsibility for this merchandise.

Identif+in! Good#2

(he appropriate stoc!3 !eeping units are identified and a record made of the number of each itemreceived.Sortin! Good#2

(he economic goods are sorted out for appropriate storage area in the warehouse.

i#%atc"in! Good# to Stora!e2

(he goods are !ept aside where they can be found later, when needed.

Holdin! Good#2

(he goods are !ept in storage under proper protection until needed in the warehousing.

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Retriein! Selectie or *ac$in! Good#2Items ordered by customers are ta!en out from storageand grouped in a manner useful for the next step.

Mar#"allin! Good#2

(he several items ma!ing up a single order are brought together and chec!ed for completeness

and order records are prepared or modified.

i#%atc"in! Good#2

(he consolidated order is pac!aged suitably and directed to the right transport vehicle.

*re%arin! Record# and Adice#2(he number of orders received, the items received and on hand etc., are recorded forreplenishment action and stoc! control.5 warehouse may be used as a physical processing station. In some systems, minor assemblywor!, conditioning, brea!ing bul!, adaptive wor! for special re4uests, etc., may be carried out asa part of warehouse activity.

3) Recei%t of Good#

(he following operations are carried out before the acceptance of goods for storage and issue ofa warehouse receiptB (he user of the facility or depositor tenders the goods for storage. (he technical assistant attached to the warehouse examines the goods visually to determinewhether the stoc!s are worth storage. (he goods are in good condition and can be stored the depositor is re4uired to submit anapplication for storage of goods, with details of his name and address, nature of the commodity,number of pac!ages, their weight and value, etc. If the goods or commodities re4uire cleaning to bring them up to an acceptable standard, thismust be done by the depositor. (he goods are sampled as per a set procedure of sampling, depending on the nature of thecommodity. (he samples so ta!en are analy=ed as per the specifications provided by law.

(he stoc!s are graded on the basis of such characteristics as moisture content, foreign matter,shriveled grains dirt, etc. If the pac!ages or bags of the stoc! are not of a standard weight, they are standardi=ed at thewarehouse. (he bags or pac!ages are counted, if they are standardi=ed, before unloading from the truc! andafter stoc!ing, to be doubly sure that the correct number of pac!ages has been tendered. -arehouseman ta!es the specimen signature of the depositor or his agent for future verificationon the cards !ept at the warehouse.(he warehouseman prepares a warehouse receipt with all the particulars, such as location of thewarehouse, name of the depositor and his address, description of commodity, its 4uality or grade,weight, etc.

4) Stora!e in Ware"oe

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One of the fundamental features of warehousing is scientific storage and preservation of goods.In order to ensure that the 4uality remains the same and is well preserved, the following steps areta!enB One of the samples obtained after a scientific sampling of the stoc!s is duly sealed with a

signed sample slip put inside the bag and is handed over to the depositor for future verification inthe event of any dispute as regards 4uality of the commodity. (he warehouse is demarcated into different sections for storage of different commodities oritems according to their nature. (hese commodities or items are accepted in the specific sectionmeant for such goods. 9ifferent stac!ing methods are adopted, depending on the si=e of the pac!ages and the durationof storage. $uic! moving goods are stored in a separate section, generally close to the doors, and thosegoods which are li!ely to remain in storage for a long time are stored a little away. +angways and operational spaces between stac!s are left for necessary disinfestationsoperations, re3stac!ing, turn3over, etc.

(he goods are periodically inspected to chec! that there has been no damage during storage. If there is damage of goods or if it is found that the goods are not capable further storage, thewarehouseman can ta!e action to have them delivered. If the depositor indicated in the notice does not ta!e delivery of goods within the stipulatedperiod, the goods may be auctioned in the prescribed manner. 5 notice of auction will be sent tothe depositor indicating the date, time and place of the auction well in advance.

5) elier+ of Good#

(he delivery of goods is conditioned by the following factorsB

(he goods stored in the warehouse may be delivered in one lot or in installments, as re4uiredby the depositor. If the depositor is given opportunities to examine his goods before ta!ing delivery and if hefind on the time of ta!ing delivery that the goods have been allowed to deteriorate or to getdamaged, he may lodge a protest within 6 hours of his examination, and defer ta!ing delivery.He has also to advise the licensing authority under the act for necessary investigation andredressal. 5n application for delivery of goods has to be tendered by the depositor or his authori=edagent. (he warehouse receipt is surrendered, duly discharged. (he specimen signature is verified before delivery is made. (he storage charges, insurance charges, etc., payable are wor!ed out and collected beforedelivery is made. If a part delivery is re4uired, such delivery is endorsed in the column provided for it in thewarehouse receipt, and the receipt is returned to the depositor or the ban! which has producedthe receipt for such delivery. If the goods are to be delivered in full, the warehouse receipt, duly discharged, is surrendered tothe warehouseman.

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ecessary entries in the stac!3wise register, godown register, depositors ledger, stoc! registeretc. are made after delivery is made. (he stoc!s are delivered against an ac!nowledgement of the depositor or his agent to the effectthat the goods have been received in good condition and the sample !ept in the warehouse isreturned to the depositor at the time of delivery.

WAREHOUSE SE'URIT1

3(he ha=ards for the goods stored in a warehouse are of the following natureB3(heft and house brea!ing.3Fire.3Floods.3%iots and civil commotion.3#oisture, insects and rodents.

(hough goods are generally insured against all these ris!s, except the last one, it is nevertheless

advisable to ta!e ade4uate precautions to protect them. For this purpose, the following measuresare underta!en

/. &ocation 8 "tructural Anity

(his warehouse is constructed on a site away from colonies which breed anti3social elements.(he selected site is also away from low3lying areas, rivers etc., so that the flooding might beavoided when the river is in spate. (he structure is designed in such a manner that the plinth isatleast one metre above the ground level. (he platform of the verandah and plinth of thewarehouse are constructed in such a way that is made rodent3proof. It generally has a compoundwall of sufficient height, with only one gate for entry and exit to ensure better and closer watchon incoming and outgoing persons and vehicles.5 warehouse is also located away from dumping grounds, garbage pits, etc., to ensure thatinsects which normally breed in such places, do not damage the goods in warehouse.

. Internal "ecurity(he owners of goods, their agents and other dealing with the warehouse are screened so thatentry is permitted to only such persons as come on genuine business and do not indulge inpilferage or other adverse activities of sabotage, etc. sufficient surveillance measures are ta!en toensure that the staff wor!ing in the warehouse do not indulge in pilferage, thefts, etc. should beleft for this has to be decided also in relation to the uncertain needs of the future.

MATERIAL HANLING

#aterial handling has now become an important and speciali=ed function of all industrialactivity. It is as important as, costs and the production process. (hey are ta!en to the preliminaryfabrication or manufacture or the first production process. (hereafter, they are again sent to thestorage before they are moved into the various stages of manufacturing operations.

Once the machine and processing operations are finished, the semi3manufactured or finished

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product moves to final inspection and pac!aging. #aterial handling is an essential productionfunction. Organi=ations do not pay ade4uate attention to this function. On an average, fifteen totwenty percent of the cost of a product is incurred on material handling. Over and above thistangible cost of material handling and of labour and machinery costs, they are the hidden costs ofmaterial handling which arise from the damage of raw materials to the finished products, delay in

transportation, deterioration in the 4uality of the product, waste of productive labour time andloss of production. (his total material handling cost must be minimi=ed by designing a propersystem.

#aterial handling is underta!en at every stage of logistics activity, and is an integral part of theother elements of logistics function. #aterial is handled during the production process,warehouses or storage, in transport, during pac!ing and when goods are returned by the customerfor one reason or the other. (his would insure cost reduction in the operation of the overallmaterial handling function and increase productivity.

MATERIAL HANLING S1STEM

#aterial is handled at the following stageB

i. %aw material is transported from the vendor to the vendor to the warehouse of the productionunit. It is received by truc!s, by rail wagons or even by ship. 5t the warehouse the handling ofmaterial ta!es place. (hereafter, the material is stored.ii. 5t the time the material is re4uired for production process, it is again handled. It is fed into theproduction process.iii. (his time the material handling is generally an integral part of the production process.iv. 5fter the material has been finally processed and turn into a finished product, the finishedproduct is handled and loaded for dispatch by a given mode of transport to a field warehouse or adealer.v. "ometimes, the finished product is pac!ed and directly loaded for transport.vi. (he material produced at the end of the process may be intermediate finished product, so italso re4uired handling.vii. (he semi3finished product is transported to other production unit so this re4uired anothermaterial handling process.viii. 5ssuming that the product has been stored in its final finished form, it has to be finishedbefore dispatch from the production center.ix. (he goods may be dispatched straight to the customer in this case the handling of the goods isdone by the customer himself.x. (he goods may be dispatched to a field warehouse of the company, or to a public warehouse,or to warehouse of stoc!ist or distributor. In this case they are stored suitably for dispatching to acustomer, retailer or dealer, as the case may be.

#aterial handling involves the following pointB

a*%eceiving or dispatching of goods involving unloading, loading

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b*Flow of material within the production unit and warehouse

c*-eighing of raw materials and finished products at warehouse

d*"ampling of raw materials, intermediate products and finished products at nominated stages

e*9ocumentation.

(he receipt of raw materials or the dispatch of finished products, at the production center, plantwarehouse or field warehouse may be considered a part of the transportation function.

Recei%t

i.%eceipt of wagons, truc!s, ships, etc., in a nominated area or location.ii.Anloading of individual truc!, wagon or shipiii."torage of the goods )whether raw material or finished product* unloaded

iv -eighing of the goods receivedv.9ocumentation for receipts of goodsvi.9ocumentation for the storage of goodsvii.Communication to all concerned about the receipt of the goods

i#%atc"

i. %eceipt of road truc!s, rail wagons, ships, etc., in a nominated area or locationii. -eighing if goods whether directly or indirectlyiii. &oading of individual truc!, wagon or shipiv. "torage of ade4uate material to ensure uninterrupted loadingv. "ampling of goods that are loadedvi. 9ocumentation of dispatches, storage, weighing and samplevii. Communication of information about dispatches to all concernIn general, the activities performed under material handling for the receipt and dispatch of goodswould re4uire arrangement forBi. (he loading and unloading of truc!s, wagons or shipsii. -aiting space for truc!s, wagons and shipsiii. 5de4uate storage spaceiv. -eighing facilityv. "ampling facilityvi. 9ocumentation and communication system

3) Loadin! and &nloadin!

(he loading and unloading of goods has to be examined from the standpoint of speed of loadingand unloading , convenience and the saving on damage during the unloading@ loading operations.(he loading and unloading facilities include suitable civil engineering structures for the berthingof truc!s, rail wagons or the ships and the loading unloading and handling machinery.

Unloadin! #tr&ct&re#

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Fixed unloading structures include a sufficient number of properly designed doc!s for theunloading of road truc!s, ade4uate length of a platform of a proper design for unloading railwagons, and an ade4uate number of berths or wharfs of suitable design for ships.

T1*ES O HANLING MA'HINER1

E6UI*MENT

"toring(he different !inds of e4uipment which are used in a storeroom can be broadly classified intotwo categories, vi=. 5 udicious selection of different store e4uipment is a !ey of the successfuloperation of a storeroom. Once a typical set is done it is difficult to change the set up in future.(he commonly used e4uipment in storeroom are as followsB

Cabinets"tac!ing boxes

"pecial storage rac!s+ravity feed rac!sOutdoor platform and rac!sOpen and closed shelves(rays9rums(he selections of the e4uipment shall be governed by si=e, shape, other physical characteristics,and the extent of preservation re4uired. (he selection of the material for rac!s etc. wood or steelshould be carefully done. (he steel e4uipment has advantages of strength, cleanliness and fireresistance.

#aterial Handling :4uipmentsIn any given set up the material handling e4uipments the layout of the stores, production shops isto be coordinated well. (hey are closely related with each other.

#anual material handlingHere the initial investment is low. (he e4uipment used in such systems are rac!s, drawers, bins,hand truc!s, and gravity conveyors. (he operations are done manually. "o the problems relatedto labour control exist. (he systematic wor!ing, handling higher loads, speed of operation isgenerally at low level. Atili=ation of available space cannot be done beyond certain height due tonatural human constraints(he common type of material handling e4uipment used in stores is as followsB(rolleysHoists#onorail'elt conveyor%oller conveyorCrane

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(he selection of the material handling e4uipment depends upon the si=e, shape and weight of theitem the location of the item in the stores, etc.

#anual e4uipments

Hand carts Anpowered wagons, dollies, and truc!s pushed about by wor!ers.

Hydraulic scissor3lift tables(hese are used for loading and unloading heavy materials li!e tools, die etc. these are used asgoods lift from transporting and raw material from ground level to finish first floor level. (heyare driven by electric3operated power pac!.

"tac!ers and portable cranesB(hese are used for loading and unloading heavy materials from truc!s. 5lso loading heavy dieson the press machines. (hese are operated hydraulically.

#anual stac!er(hese are fabricated from steel channels for strength. (hey can be shifted any where in the shop.-ithout bending they can lift heavy materials. 'y hydraulic pump they lift or lower the material.

Hydraulic Pallet truc!s3$uic! lift pumps design.3Altra3urethane wheels and sealed dual3precision ball bearings re4uire less than 6> lbs. pullingforce at full capacity.3Hydraulic pump includes overload and upper limit relief valve.Fingertip lever control for selecting raising, neutral or lowering positions. 5rticulation steeringwheels.

3Include two steering wheels and two front load rollers.3 "teering wheels include bearing dust covers, providing longer life.3"pring3loaded loop handle automatically returns to vertical position which not in use.3Hydraulic pump design facilitates easy3access seal replacement.

%ed powder coat finish is helps as antirust. Pedal lift elevating shop tric!s, mechanical materialstac!ers, and motori=ed stac!ers. #onorail traveling trolleys, portable gantry cranes are usefule4uipments in stores.Pallet (ruc!s(hese are used for low level of wor!ing, to lift the material, move the material. Height isadustable for any essential height. It is manually operated, safe and move on castor wheels,which are easy to move.

Castor -heels(hese are made with the pressed thic! steel, base. (hey are versatile to be used for all movingmaterial carrying e4uipments. (hese ma!e the e4uipments easy to maneuvering the e4uipment.(hey have thrust bearings for easy movements. %ubber or polyurethane material is used for lowload capacity re4uirements.

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For!3lift truc!(hese truc!s are much used in the production shops and warehouses. (hey are good in movingthe material from a place to place. Over and above the tote boxes on the for!s can be elevated todesired level above the ground level.

&adders9ifferent types of ladders are re4uired in stores for placing of the material at high level points.(hey are of different types. 5s per the re4uirements they are used.3 -all supporting extendable ladder.3 "elf supporting extendable ladder.3 (rolley based strong ladder, with solid steel base, the safety loc!s are provided.ormally the ladders are made of thic! aluminium sections. (his ma!es them light in weight,non3rusting, and rust proof."afety loc!s, rubber shoes, ropes, pulleys and castor loc!s are provided for ease of movements.

#echani=ed systems#echani=ed and automatic e4uipments need higher level investment. On long term they may beeconomical. #achine power, electrical energy or mechanical engineering techni4ues are used inplace of labour. (hey use for!lift truc!s, tow tractors, order pic!er truc!s, cranes and conveyors

ConveyersConveyer system to move material or products has given start for the engineers. "teel@plasticballs or rollers are mechanical mounted on the side channels and the products move on them bydriver motor or the power of gravity.'elt3#otor3driven chain that drags. #aterials along a metal slide base

%ollers(hese are good for moving heavy materials from one place to other place. (he path is wellguided by the number of rollers mounted on a structure. (he rollers can be powered by motor.

CranesCranes are useful to pic! up and shift the heavy material from one place to other place. Hoistsare mounted on overhead rails they lift, swing, and transport large and heavy materials. (hecranes and hoists are having limited travel distance. (hese are specifically used to shift heavygoods from and to ships.

:levators5 type of crane that, while in a fixed position, lifts materials usually between floors of buildings.

(urntablesB(his device is used to mechani=e the wor!ing on components in the different stages incontinuation to avoid handling. (he stations on turn table hold, index, and rotate materials orparts from operation to operation.

5utomated systems

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(he concept of a totally automated storage and retrieval system has been inviting the attention ofprofessionals to match the storage system@ with the rapid developments in the technology.In automated systems computer programs are used to achieve controls on the movements ofe4uipments. Here the total movement is co3coordinated and perfectly synchroni=ed. (hese aresystems for receiving orders for materials from anywhere in operations or unloading areas,

collecting the materials from locations within warehouse, and delivering the materials fromlocations within a warehouse, and delivering the materials to wor!stations in operations orloading areas. Computers and communication systems are used for placing orders for materials,locating the materials in storage, giving commands for delivery of the materials to locations forloading@unloading@operations, and adusting inventory records showing the amount and locationof materials.

5utomated +uided Eehicle "ystems )5+E"*(a!e the material order as per the list and automatically load the containers of materials fromunloading area. 9eliver to the place. Anloading the material.

(he operator carries with him the list of items to be items to be retrieved. 'y ma!ing use ofpredefined system he goes through the storeroom, stops the handling e4uipment at respectivebins and completes the list in a pic!ing tour. He may go aisle3by3aisle or according to items inlist or by any other system. Operation %esearch techni4ues of se4uencing, routing, etc., can beapplied to determine the optimal locations of items and optimal route in a pic!ing tour.

'enefits3 Increase storage capacity.3 Increase system throughout due to their continuous and tireless use. %educe the labour costs.3 Product 4uality is improved with the elimination of human error.3 Identify parts based on bar codes.3 Offer higher return on investment.'etter capability than standard inventory control systems.

*A'/AGING

Introduction(he term pac!aging may be defined as the use of containers and parts, together with thedecoration and labeling of the product in order to contain, protect and identify the merchandiseand facilitate the use of the product. "ales promotion is an important consideration in theselection of pac!aging aids in motivating a customer to buy the product. (he degree ofmotivation depends on the type of product, the type of customer and the demand and supplysituation. (he printing matter and the company emblem or trade mar! proect the manufacturersimage to the customer.

*A'/AGING MATERIALS

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Jute"ince it has been recogni=ed that renewable resources should continue to be the mainstay, for anumber of applications, the use of ute, also !nown as hesian or burlap, is common andencouraged. Interestingly, India still continues to export a si=able portion of its ute pac!agingproduction. ew varieties of ute, better methods of weaving and imparting improved functional

4ualities to it3li!e ma!ing it odour free3 are some of the areas which have received specialattention. (here is a general shift towards the use of synthetics in performance to ute in bul!pac!aging.

Pac!aging Paper and 'oardIn the field of paper and board, the country is entirely dependent upon indigenous forestresources which, however, are being rapidly depleted. 'amboo constitutes the main supplysource of paper raw materials. %esearch is under way on the use of 4uic! yielding timbervarieties and of hard woods for paper manufacture.

Cellophane

5 small 4uantity of cellophane is manufactured by a few units in India. (here has been hardlyany expansion in its use in this country owing to the high cost of inputs for the manufacture ofcellophane and adverse atmospheric conditions and mar!eting systems.

5luminium Foils and (ubes(he use of aluminium foils is confined mostly to pharmaceuticals, foods and tobacco. (healternatives to aluminium foil are metalised plastics. :ven though the introduction of collapsibletubes was generally for tooth3paste and pharmaceutical ointments a great variety of typicalIndian products have got into collapsible tubes.

Plastics(he Indigenous production of plastics had its origin in industrial alcohol. (he setting up of petro3chemical complexes has had considerable impact on the promotion of plastic raw materials.:arlier, the country was dependant on high and low density polyethylene. "mall 4uantities ofimports of other thermo3plastics used to meet the countrys pac!aging re4uirements. (heversatility of plastics and their ability to upgrade indigenous materials has naturally encouragedtheir greater use.

a* &aminated Jute Pac!agingB:ven during the early sixties, India began to export ute bags made from polyethylene extrusioncoated or polyethylene laminated ute materials. (he large3scale expansion of the fertili=erindustry in the country resulted in the expansion of mar!ets for this material. #any exportcommodities use this as a pac!aging or as a water proof wrapping material for the safe transit ofgoods.

b* Other laminates and coatingsBIn the absence of oriented polypropylene, polyethylene3coated papers have had the maximumshare of the flexible pouch mar!et. Industries have found polyethylene3coated materials to beinexpensive and have favoured their use. Polyethylene3 coated foil, glassine paper, poster3paper3all find extensive mar!ets in the country.

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c* "hrin!able FilmsBIndia uses shrin!able films and heat3set plastic films. In the area of shrin! pac!aging, however,the industry has limited it to the intermediate pac!ages rather than extend it to transportationpac!ages.

*ROU'T AN *A'/AGE ESIGN

(he si=e, shape or closure of many consumer pac!ages often offer sufficient flexibility tosufficient flexibility to effectively create a modular pac!aging or to standardi=es a reducednumber of different pac!ages or containers of improved designs.(he manner in which a productis sold or pac!aged also has a direct bearing on transportation costs. (he higher the density thelower the transportation cost.

Protective pac!aging

(he problem of protecting the product through the distribution process without damage is amaor concern of the mar!eting and logistic manager. (he obective is to arrive at an optimumprotection level that will meet the desired customer service standard at a minimum pac!agingexpense. Only the most critical and highly expensive items should be pac!aged for fullprotection. %eduction in the protective levels must be evaluated against the added costs ofwarehousing, compulsory use of rac!s and expensive redesign of mechani=ed and automatedhandling system subecting the pac!ages to drop and impacts.

Cost reduction in pac!aging(he problems of the higher costs of physical distribution are caused when we examine pac!agingnarrowly and departmentally. (he mar!eting management continues to loo! at pac!aging strictlyfrom a sales point of view. Pac!aging engineers, who are under purchasing or manufacturing,examine it only as a protective device. Only a physical distribution manager can loo! atpac!aging broadly and conceive of changes in design, si=e, mode of transportation, etc. whichwill contribute to the effectiveness of the distribution system. $ui!silver continue to deal withpac!aging as an engineering problem without the total system outloo!.

(ransport Pac!agingFor the internal movement of goods, the Indian railways have introduced specially designedcontainers. (hey differ from inter3modal containers in dimensions and in capacity but they meetthe re4uirements of the reduction of gloss and damage in transit, and minimi=ed the pac!agingcosts.(he development of inter3indol containers has been underta!en in India. (he countrys maritimetransport has been geared to carry container cargo. :fforts have been made to develop containerports in the country.

(esting of Pac!aging(ests on pac!aging are performed mainly to determine its compatibility and transport3worthiness. (he various tests carried out are to determine tensile strength, brea!ing load, burst

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factor, tearing strength, resistance to humidity )with salt spray* and vibrations, drop strength, etc.(he Indian "tandards Institution has now developed various standards for pac!aging.

STO'/ AN ISTRIBUTION MANAGEMENT

(he stoc! and distribution management system reduces costs by implementing mature strategiesto minimise stoc!s and optimise warehouse utilisation and personnel deployment. Prompt orderprocessing and a fault3tolerant user interface ensure high delivery 4uality and transparency in allwarehouse processes. Configurable strategies increase the efficiency of placing goods in storage,retrieving them and relocating them. (he KvisualisationK feature, which is an optionalenhancement, allows integrated warehouse utilisation monitoring and analysis functions thatenables changes relating to planned destinations to be recognised and counteracted early on.Pic!ing, defining dispatch routes and pac!ing are initiated in a route3optimised and time3optimised manner so that all current and future re4uirements can be achieved 4uic!ly and at afavourable price.

Benefit#O%timi#in! bine## %roce##e#

available warehouse capacities can be used as efficiently as possible with the help of the

stoc! and distribution management system Increases in effectiveness of up to L1M can be achieved through the optimisation of

business processes

use of resources can be planned accurately with the aid of control room functions

Red&cin! #toc$#

Procedures li!e cross3doc!ing or optimised reservation strategies allow both virtual and

real stoc!s to be involved "tatistical functions and control room functions enable information to be made accessible

at any time, thus increasing transparency throughout the whole warehouse

"toc! levels can be viewed within the warehouse management system at all times

Lo- co#t#

'oth the start3up costs and conse4uential costs )total cost of ownership* resulting from

choosing, ac4uiring and using the system and disposing of it are relatively low

TRANS*ORT 'ONTROL

(he transport control system is very useful whenever the movement of materials in thewarehouse needs to be controlled efficiently and without the use of documentation on paper. Inits role as an intelligent lin! between a warehouse management @ :%P system and the physicalflow of materials, the transport control system can be used as an add3on to the stoc! anddistribution management system.

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Asing standardi=ed interfaces, it can also be connected to other manufacturers systems, such aswarehouse management, production planning or enterprise resource3planning systems.

(he transport control system controls and optimi=es warehouse operations by first chec!ingroutes before assigning movement orders, thus ensuring that transport orders and pic! lists are

processed promptly and accurately.

BENEITS O TRANS*ORT 'ONTROL2

O%timi7in! -are"oe %roce##e#

use of transport control system ensures that any potentials for optimi=ation can be

exploited to a high degree

effectiveness of transport activities can be increased by up to >1M

transport orders are boo!ed in real3time and mista!es can be avoided

furthermore stoc!s are available at short notice

Red&cin! co#t#

plausibility chec! that is carried out when movement orders are assigned ensures that

transport tas!s are completed promptly and accurately customer wishes can be fulfilled with great flexibility whilst at the same time achieving

maximum delivery 4uality and avoiding costly idle time

optimi=ed transport strategies assist in deploying resources )i.e. materials handling

e4uipment and personnel* as efficiently as possible

In "oe 8# O&t#o&rce

$uite a few brands have set up their own warehousing facilities but had to ma!e the processmore viable for them. (he positive part of in3house warehousing is that it is directly under thesupervision of the company. Other than that there are also some disadvantages of outsourcingwarehouses li!e it is usually contract bound with no flexibility@adustments )time or space*.However, we also find brands that have outsourced their warehousing needs to ? P& )(hird partylogistic* players. (hey feel that the set up and management costs are lowered and the ?P& areprofessionals who can manage the process very efficiently. If the ?P& partners are professionaland can manage things well then outsourcing can bring in a lot of benefits to the retailer.

Wra% &%

-arehousing is an essential part of the supply chain process underta!en by a retailer. -ith time,necessary and appropriate changes need to be made to !eep the warehousing needs up to date.

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%e4uirements for the state3of3the3art warehouses

%ound the cloc! electricity )with 9+ bac!up*, water supply and drainage facility

Fire detection 8 fire fighting system, smo!e detectors, CC(E, etc

5ncillary buildings li!e gate house with security booths, main security and first aid room,

administration office, canteen, change rooms, drivers lounge, dispatch office, site office,watch towers and pump house

Heavy duty rac!ing system

Conveyor belts from pic!ing to pac!ing to staging area doc! levelers and #H: )#aterial

Handling :4uipment* li!e for! &ifts, pallet, stac!ers, etc

Office with special ventilation for warehouse

"eparate loc!ers, changing room and dining room for wor!ers

-ide roads, rainwater harvesting and landscaped gardens

Proper par!ing space for truc!s and other vehicles

Implementation of proper -#" )-arehouse #anagement "ystem*

UTILIT1 O WMS

(he role of warehouse management system )-#"* is expanding to include light

manufacturing, transportation management, order management and complete accounting

systems. -#" continues to gain added functionality. One of the maor leaps forward in-#" has been the voice recognition3based system. (his consists of -#" software,headsets, voice3pic! terminals with the related software and an %F networ!. :mployees inthe warehouse have a headset to receive and ac!nowledge orders through spo!en language.(his means they have their hands free and data does not have to be entered, nor the articlesscanned. (he resultB boosted productivity enhanced process 4uality and reduced errors.

BENEITS O WMS

-#" applies right across manufacturing, distribution, logistics and retail. (he specifics

of implementation will change from industry to industry but they can all benefit.

In an increasingly crowded retail mar!et, it is important that companies manage high3volume "C# processes from beginning to end meet consumer demands and improve theirbottom line. (o do so, they need to address the complexities of the mar!et such as meetingindustry compliance mandates, sustaining reliable inventory visibility and managing trac!ingprocesses.

(he benefits of -#" includeB

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-#" systems can satisfy government and industry compliance re4uirements, automateinbound and outbound processing, and improve process, location and inventory visibilitythrough efficient trac!ing procedures.

(he implementation of a -#" along with automated data collection increases the accuracy

of stoc!, reduces labour costs and improves service by reducing cycle times.'etter accuracy means that inventory reduction will follow a reduction in the level of safety

stoc! re4uired.-#" provides the tools for organised storage, which leads to increased storage capacity.

(he functionality of -#" is critical. It is essential to serve the customers and remaincompetetive.

WMS EATURES

Stoc$ Tran#fer B Fully e4uipped stoc! from one branch to another with option to tag insurancecharges, freight, etc. as applicable. Complete (rac!ing of stoc! #ovement can be done usingstoc! transfer re4uest, Out3ward and in3ward of material.

Stoc$ Tran#fer Re.&e#tB "toc! transfer re4uest can be done by the re4uesting branch for thematerial, thus removing loop holes 8 gaps in communication.

Stoc$ Tran#fer O&t9-ardB "toc! transfer Out3ward can be done to move the material out of thebranch on re4uest of other branch, it can also act as gate pass for material out.

Stoc$ Tran#fer In9-ardB "toc! transfer In3ward will help in ta!ing the stoc! in, on receipt, tillthe Inward is done, stoc! status will be stoc! in transit. 9etailed process will assist in havingcomplete view on stoc! maintaining tighter controls on inventory and its movement.

Location #toc$ tran#fer B "ingle step stoc! transfer process to transfer the material betweenlocations@bins of the same branch.

Stoc$ Ad:tment B $uantity and value based stoc! 5dustments with remar!s for auditing.

'+cle 'o&ntB Periodic Inventory Count based on predefined parameters with transactionloc!ing and auto adustment utility.

/it Mana!ementB 5bility to manage multiple "


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*lannin! tool#B #ultiple Planning tools li!e 5'C and F" classification using system drivenperiodic update.

Re%ort#B Comprehensive reports on stoc! position, stoc! valuation, stoc! ageing, branchtransfers, location transfers, in3transit stoc!, stoc! ledgers, etc.

Anal+tic# B 5nalytics on "toc! Ealuation, "toc! Position, Ealuation (rends, ageing withsummary on branch, location.

LOGI' ETERMINING A'TUAL LO'ATIONS ; SE6UEN'ES AT RELIAN'E

Location Se.&ence. (his is the simplest logic we simply define a flow through our

warehouse and assign a se4uence number to each location. In order pic!ing this is used tose4uence our pic!s to flow through the warehouse, in putaway the logic would loo! forthe first location in the se4uence in which the product would fit.


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*ic$9to9clear. &ogic directs pic!ing to the locations with the smallest 4uantities on hand.

(his logic is great for space utili=ation.

Re#ered Location#. (his is used when we want to predetermine specific locations to

putaway to or pic! from. 5n application for reserved locations would be cross3doc!ing,where we may specify certain 4uantities of an inbound shipment be moved to specificoutbound staging locations or directly to an awaiting outbound trailer.

Neare#t Location. 5lso called proximity pic!ing@putaway, this logic loo!s to the closest

available location to that of the previous putaway or pic!. -e need to loo! at the setupand test this type of logic to verify that it is pic!ing the shortest route and not the actualnearest location. "ince the shortest distance between two points is a straight line, thislogic may pic! a location ?1 feet away )thin!ing its closest* that re4uires the wor!er totravel 11 feet up and down aisles to get to it while there was another available location>1 feet away in the same aisle )>1 is longer than ?1*.

Ma,imi7e '&be. Cube logic is found in most -#" systems however it is seldom used.

Cube logic basically uses unit dimensions to calculate cube )cubic inches per unit* andthen compares this to the cube capacity of the location to determine how much will fit.ow if the units are capable of being stac!ed into the location in a manner that fills everycubic inch of space in the location, cube logic will wor!. "ince this rarely happens in thereal world, cube logic tends to be impractical.

'on#olidate. &oo!s to see if there is already a location with the same product stored in it

with available capacity. #ay also create additional moves to consolidate li!e productstored in multiple locations.

Lot Se.&ence. Ased for pic!ing or replenishment, this will use the lot number or lot date

to determine locations to pic! from or replenish from.

WMS tool ed at Reliance > SA*

"5P 'usiness One gives we integrated accounting functionality, so we can be assured that ourwarehouse management and our financial accounting data are consistently synchroni=ed.Changes to item cost and product prices are immediately and automatically considered, and theinventory value is recalculated based on the assigned valuation model.

"5P 'usiness One lets we manage individual warehouses as well as group multiple warehousesinto one location. Perform instant availability chec!s and trac! item stoc! levels such ascommitted, ordered, or available items by warehouse, individual item, and item group.

Comprehensive item master data management in "5P 'usiness One lets we maintain itemnumbers and descriptions with detailed purchasing, sales, and inventory data. #ultiple units ofmeasure and factors can be used when managing base, purchasing, pac!aging, and sales units, inorder to streamline pic!ing, pac!ing, and final delivery.

Item prices integrating multiple currencies can be based on several price lists, such as retail andwholesale, which are applied automatically to transactions with vendors and customers. "pecialpricing tools allow we to automatically apply volume, cash, and account discounts.

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Costing methods, such as FIFO, moving average, and standard, are fully integrated. Inventoryvaluation and last purchase price per item are automatically updated after each transaction."5Precords goods receipts and goods issues in any warehouse. 'y integrating individual item pricesor price lists, simultaneously update inventory valuation. "5P transparently integrates inventoryand accounting transactions.

5s a result, stoc! levels are adusted, inventory accounts credited or debited, and applicableinventory variances accounted for as soon as a stoc! movement is posted. Inventory transferfunctionality allows us to readily move items from one warehouse to another.

(he "5P pic! and pac! manager lets us to easily create pic! lists and pull the listed items fromthe inventory.

Consignment and drop3ship orders are smoothly processed by creating dedicated customerwarehouses.

-e can perform cycle counts while orders are received and shipped, so that business activitydoes not have to be postponed to perform stoc!ta!ing. If the cycle count shows a level below theminimum stoc! point or a stoc! level discrepancy, the powerful "5P alerts manager featurenotifies our warehouse and purchasing managers

"5P simplifies definition and management of production, assembly, sales, and template bills ofmaterials )'O#s*. It also can store bill3of3materials numbers, descriptions, warehouses, and itemcompositions in easy steps, while recording per3item 4uantities, production issue methods,prices, and comments at each level. -hen we add a bill of materials to purchase, production, orsales orders, pricing and 4uantities are automatically recorded for both the product and itscomponents.

"5P supports standard, special, and disassembly production orders. 'ills of materials can easily

be entered into production orders so that item availability, warehouse location, and issue methodare automatically recorded. 'y storing a production due date, production scheduling can bemanaged using "5P alerts management.

(he N& %eporter tool in "5P allows us to create sophisticated warehouse and productionmanagement reports as well as #%P reports. (hese are generated in "5P and displayed in#icrosoft :xcel templates as standard reports or as dashboards. -e can use predefined templatesto issue inventory status, audit, and valuation reports, as well as item and warehouse transactionlists. N& %eporter also allows we to generate production reports, such as production orders bystatus and bill3of3materials reports. 9ata in reports is refreshed in regular, predefined intervals,so we are constantly updated on inventory levels and production schedules.

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A%%endi,

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httpB@@www.icmrindia.org@courseware@%etailM1#anagement@InformatM1"ystems3&ogist.htm

httpB@@www.medwellournals.com@[email protected].>6.7/

httpB@@sclgme.org@shopcart@9ocuments@%etailM1&ogisticsM13M1ChangeM1andM1Challenges.pdf

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logistics3industry.html

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httpB@@www.ll.com@%esearch@eCommerceboomtriggerstransformationinretaillogisticswhitepaperov1/?.pdf

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httpB@@www.icesi.edu.co@blogs@logisticawww/@files@1/@/1@>3''39avids3impacto3del3internet3en3la3supply3chain.pdf

httpB@@www.scmr.com@article@moreevidenceofe3commerceimpactonsupplychain

httpB@@cci.gov.in@images@media@%esearch%eports@5n!itaIntComp1Q1Q//.pdf

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httpB@@www.cee.ntu.edu.sg@5boutC::@Facilities@(rans+eo@(ransportation@9ocuments@#aritimeM1"urvey@Huang#M1"ummaryM1%eport.pdf

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Davis Final Report

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Transcript of Davis Final Report