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TL6001
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Assessment: Assignment 1
Submission Date: Saturday 14th October 2016 at 23.59 (via Moodle, Turnitin)
Weighting: 35% (Marked out of 100)
Type: Individual
Word Count: 2500 words +/-10%
Learning Outcomes:
1. Demonstrate an understanding of the principles, regulations and laws of the freight and warehouse
industries and the commercial environments in which they operate
Assignment background:
A distribution company is locating its warehouse operations to Bahrain Logistics Zone (BLZ) in Hidd. It will
distribute all the items needed for small business customers such as convenience or cold stores. The company
appointed you as an operations manager to oversee the design of the warehouse and to ensure it has efficient
warehouse operations.
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First Name_ID number_ Assignment Part 1
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Report
Table of Contents
INTRODUCTION: 5
REFERENCE LIST 13
Introduction:
In this assignment, I was selected by Bahrain Logistics Zone (BLZ) Company to be the operation manager of
their warehouse, which takes place in Hidd. The warehouse will administer and deliver the goods for small
business and cold stores. The point of choosing me is to supervise and manage the warehouse layout and
guarantee that the operations are working effectively. In the upcoming paragraphs and parts of this report, I
will be defining and clarifying the role and functions of a warehouse and describe the warehouse layout
following the principles of warehouse design. Also, I will expound the constantly operations for receiving,
consolidating, storing, and dispatching of goods. Moreover, I will explain the ways that I can evaluate the
accomplishment of the warehouse and how the standards of work can be enhanced. Furthermore, I will detail
ways to decrease danger and hazard in the warehouse so we provide safe operations.
A warehouse is an interim depository district for stocks. It operates as a safeguard to ravel differences
between the reverse of goods and requests for services and goods. This warehouse will distribute goods to
cold stores and supermarkets, which makes it include variety of goods. It will contain food such as: dairy milk
products, fresh fruits and vegetables, frozen food, seafood and meat and poultry, etc. The principles of an
effective warehouse are the following: manage the equipment’s depository and motion, operate combined
business dealings accurately and smoothly and hold maximum goods level (5 Principles of Effective
Warehouse Management, n.d). The roles and functions of a warehouse are receiving, consolidating, storage,
The location of the warehouse matters a lot. The warehouse is located in Hidd that is one of the most perfect
places. Its near Salman Port and it doesn’t take much time to reach the airport. Also, all the utilities such as
gas, water and electricity are available. Moreover, it’s secure and easy to reach. (5 Principles of Effective
According to (Oliver, n.d). It says that to have a valuable warehouse we should prevent barriers, bypass
needlessly actions and the most important thing is to guarantee enough spaces to smooth the movement.
According to these principles, I decided to design the warehouse with the U- shaped flow layout, which the
receiving and shipping docks are adjacent to each other. It says that the U- shaped flow proposes mutual
productive use of dock resources. (Warehouse Product Flow Options, n.d). Also, using this layout will help to
decrease the managing time of the goods and provide the ability of cross docking. Cross docking means
delivering the goods to the consumers without storing it, it happens when you take the goods after receiving
them from the inbound area to the outbound area without the need of storing. (What is Cross-docking –
Understanding the concept & definition, n.d). Moreover, it says that U-shaped flow is the more frequent flow
shape to apply. So, it grants that the adjustments of the assets in the production atmosphere are placed in a
Warehouse Design
As you see this is the warehouse design. It consists of inbound area where most of the operations start. MHE
storage, which contains all the equipments that we need to you at the warehouse. WC, nurse room to ensure
the medical and health safety, and to give the right treatments for the injured employees. Reception and main
entrance. Security office to ensure the warehouse safety. Fire exit for the emergency cases. Frozen goods area
with a temperature of at least -18. Chilled goods area to store fresh vegetables and fruits. Also, the warehouse
consists of hazardous and special goods area to store the valuable and danger goods. Hazardous goods must
be placed away from the other storing areas to make sure if an accident or fire happened it doesn’t affect the
other goods. Bonded items area to keep the taxed goods such as cigarettes and alcohol. Offices and the
manager’s office over a mezzanine. The mezzanine has got some advantages such as: Flexibility, adds more
space and its safe (Mezzanine Flooring, n.d). Moreover, Relaxing room and lunchroom is available for the
break time, so the employees can take a rest and eat. In addition, returned goods area, mid moving goods
shelving, pallet racking and pick shelving, fast moving goods shelving and customized shelves are also available
to store all types of goods. While storing we should keep in mind the weight, size and type of goods.
Furthermore, a conveyer for the priest and packing area is available to decrease the time and effort. Never the
last, marshaling and dispatching areas are set next to the outbound area to easily load the goods to the
vehicles.
Part two: Operations.
Receiving is the first operation in the warehouse. It starts from the receiving dock where you receive the
goods. The security staffs checks the vehicles. Then, it’s the receiving area employee’s duty to empty the
trucks manually or automatically. While unloading, the employees must arrange the goods depending on their
weight, size and type. Goods can be on a firm of containers, pallets or cartoons. Also, they can use pallet
trucks and forklift trucks for moving and unloading the goods. The unloading process must be done as fast as
possible to make the inbound area free for the other trucks and discharge the driver (personal
communication). Then, they must check whether the received goods are matching the purchased goods
before paying for them based on the GRN that stands for goods receiving note (goods receiving note, n.d), to
make sure that the received goods are going to be delivered according to the order plan. Furthermore,
employees must be careful while unloading the goods because it may include some hazardous or valuable
Consolidating: SKU is one of the most important things before storing the goods in the warehouse. SKU stands
for stock keeping unit. Goods must be labeled with a barcode to know where to place it at the warehouse
(Stock Keeping Unit – SKU, n.d ). The goods comes in bulks first, then we break them to smaller, while
consolidating the weight and size of the goods are important elements to consider. Heavier goods must be on
Storage: According to Cambridge Dictionary – Storage (n.d). Storage means keeping goods in a secure and
protected place for the future reference. While storing, we should keep all the storing rooms together and
near each other to reduce physical movement except the hazardous and bonded items.
There are two types of storing: fixed location and random location. Fixed location all the goods that labeled
with SKU are stored in the same place next to each other. Random location is when the computer decides
where to put each item according to it type and to make more space (personal communication). Hazardous
are the dangerous goods that affect the environment and people negatively. For example: flammable goods,
gases, dynamites and combustibles (What are Dangerous Goods?, n.d ). These goods must be placed in a
separate places making sure to provide the suitable environment for them. Moreover, Bonded items are the
goods that require governmental approval and tax payments such as: cigarettes, jewelries, money and
medicines (Bonded goods, n.d ). Also, we have to store frozen goods in a temperature of at least -18ºC and up
to -30ºC. While operating in this environment, employees must wear PPE to avoid harm. Furthermore, chilled
foods needs to be stored at or below 8ºC, targeting 5ºC such as fresh vegetables, dairy and meat product.
Other products can be stored at 15ºC and kept fresh such as bread (Frozen Foods Handling & Storage, 2008).
In addition, while storing goods we must consider the weight, outsize, exterior and pick frequency.
Dispatching: in dispatching, employees must make sure that all the orders are right and packed in the way that
it should be. The used method here is goods to picker to make sure that the process is more factual and to
reduce time and effort (Stone,2015) . In receiving and dispatching, stocks must be moved very quickly specially
decaying goods such as: dairy products, eggs, seafood, meat and poultry and fruits and vegetables.
Part three: Measure the warehouse performance and improvements.
Measuring a warehouse performance is something important. Several things such as these can measure the
The objectives and targets can measure the performance of the warehouse by seeing how far they are from
their goal and target and are they getting closer to it or not. Using SMART will help the company to achieve. It
stands for Specific, Measurable, Achievable, Realistic, Time. Following this will lead the company to choose the
right objectives and targets. Examples for SMART targets: percentage of orders met in full, percentage picks
Customer Service: The customers are the most important element for the company’s success. That’s why the
customer’s satisfaction or depressions measures the company’s performance. It shows whether the services
provided by the company/warehouse are good or not. The customer’s impressions can be delivered to the
company/warehouse by filling surveys, forms or receiving comments and feedbacks by email, phone calls,
mailbox or fax. The more high rates you get, the more successful the company is (Stillwagon, 2015). The
survey can include several questions to rate and measure the product and service. It can ask about the quality,
value and experience of purchase, usage and installation. Also, it can have a feedback for improvement
questions where the customers are asked about what was actually good about us, what was bad and what are
the things that we can do to improve our performance (Smith and Ph.D., 2012).
KPI’s stands for Key Performance Indicator. The purpose of the KPI’s is to judge the success of every single
thing in the warehouse. Weaknesses and Strengths are the center of attraction here. KPI’s can contain
receiving, put away, storage, order picking/packing and shipping. Receiving which can measures cost per line
item received, volume per man-hour, truck time at the dock and accurate receipts. Put away which aspects to
deal with cycle time, cost per item put away, time from receiving to pick location and put away per man-hour.
Storage which measures storage cost per item, inventory storage per square foot and days-on-hand. Order
picking/packing which can includes cost per line item picked, orders picked per hour, picking labor costs,
consumables usage and cycle time per order. Shipping which includes the best metrics for shipping such as
cost per item shipped, cost per shipped order, labor hours consumed per order, percentage of perfect
shipment, shipping dock utilization and time from picked order to departure (Stone,2014).
Part four: Minimizing risks and ensuring safe warehouse operations.
Several things can minimize risks in warehouse; one of the things is health and safety regulation (WHAT ARE
THE MAIN HEALTH AND SAFETY REGULATIONS? , n.d ). They are rules and regulations that ensure the safety of
the warehouse and the safety of our staff and workers while doing their job. Such as; for entering the
hazardous storage room, staff members and workers have special Personal Protective Equipment’s (PPE),
those are required from the rules and the regulations of the goods stored inside the hazardous storage to not
harm or injure any of the staff and keeping the warehouse safer and secure. COSHHH provides a written
regulation to sign on to follow the rules and keep the goods safe, workers and the warehouse. PPE are
equipment’s or items that the humans -workers or employees- can wear them or use to protect themselves
from work risks and danger. For example, they can use cartridges and disposables for breathing care and
guardianship. Also, they must wear hats, caps or helmets to protect their heads. Moreover, they must cover
their eyes with shields or goggles to prevent eyes harming or infection. In addition, they must take care of
their skin by using sunburn and barrier creams, wearing long sleeves and using gloves. Additionally, the floors
must be clear and clean all the time. Making sure that all the warehouse floors are not slipping can minimize
the hazards. Also, it must be straight and in a good condition to avoid getting hurt or harmed (Warehouse
Safety Principles: 6 key guidelines to keep your workplace safe, 2012). Furthermore, use liquid petroleum gas
for the forklifts and chargeable batteries to reduce pollution at the warehouse. We have also made
regulations in the warehouse for our workers in the working place. We allowed only one language in the
warehouse so that workers do not get confused if a worker does not speak the same language. We have
trained all our workers to get the best out of their communication and speaking skills to share information
faster to move goods and make the goods flow without a buffer in the warehouse. In addition, ton keep the
information reach on time and goods not get stuck. This process makes workers do their job in a more
As we receive expensive and valuable products in our warehouse, it is our duty to make them safe and protect
them in the best way. We have kept security cameras and CCTV all over our warehouse inside and outside to
ensure that if any robbery or damage happens to the warehouse and the goods. We have made the entrance
for several rooms in the warehouse limited and not for everyone to enter, only authorized staff members can
enter due to the importance of the products such as valuable electronics, cigarettes and alcohol.
Reference List
http://dictionary.cambridge.org/dictionary/english/storage
http://www.cold.org.gr/library/downloads/Docs/FrozenFoodsHandling.pdf
note.html
floors/advantages
news/other-news/the-principles-of-warehouse-design.html
Smith. S and Ph.D. (2012). Customer Satisfaction Survey Questions: 5 Sample Templates You Can Use Right
eagle.com/blog/2014/04/05/warehousing-key-performance-indicators/
Stillwagon, A.(2015) 14 Key Performance Indicators (KPIs) to Measure Customer Service . Retrieved from
https://smallbiztrends.com/2015/03/how-to-measure-customer-service.html
sku.asp
papers/warehouse-product-flow-options/
Warehouse Safety Principles: 6 key guidelines to keep your workplace safe . (2012) . Retrieved from
http://www.aalhysterforklifts.com.au/index.php/about/blog-
post/warehouse_safety_principles_6_key_guidelines_to_keep_your_workplace_safe
dangerous-g.asp
WHAT ARE THE MAIN HEALTH AND SAFETY REGULATIONS? . (n.d) . Retrieved from
https://worksmart.org.uk/health-advice/health-and-safety/employer-duties/what-are-main-health-and-
safety-regulations
What is Cross-docking – Understanding the concept & definition. (2011) . Retrieved from
http://www.aalhysterforklifts.com.au/index.php/about/blog-
post/what_is_cross_docking_understanding_the_concept_definition
principles-of-effective-warehouse-management
The marking framework for the report is tabled below:
Met criteria to an Met criteria to a very Met criteria to a Did not meet
excellent standard good standard satisfactory standard Criteria
A B C F
(25 – 21) (20.5 – 17.5) (17 – 15) (14.5 – 0)
(20 – 17) (16.8 – 14) (13.8 – 12) (11.8 – 0)
(10 - 8.5) (8.4 - 7) (6.9 – 6) (5.9 – 0)
Role & functions The role and functions of The role and functions of The role and functions of The role and functions of
of warehouse the warehouse and layout the warehouse and layout the warehouse and layout the warehouse and
and principles of of warehouse in of warehouse in of warehouse in layout of warehouse in
design accordance with principles accordance with principles accordance with principles accordance with
of warehouse design are of warehouse design are of warehouse design are principles of warehouse
excellently explained. well explained. adequately explained. design are not
20 Marks
adequately explained.
The daily operations for The daily operations for The daily operations for The daily operations for
Daily operations receiving, consolidating, receiving, consolidating, receiving, consolidating, receiving, consolidating,
storing and dispatching of storing and dispatching of storing and dispatching of storing and dispatching
25 marks goods mentioned in the goods mentioned in the goods mentioned in the of goods mentioned in
case study are excellently case study are well case study are adequately the case study are not
explained. explained. explained. adequately explained.
Safe working How risks in the warehouse How risks in the How risks in the warehouse How risks in the
would be eliminated or warehouse would be would be eliminated or warehouse would be
practices
minimized to ensure safe eliminated or minimized to minimized to ensure safe eliminated or minimized
working practices are ensure safe working working practices are to ensure safe working
20 Marks excellently explained. practices are well adequately explained. practices are not
explained. adequately explained.