Mumbai Institute of Management & Research (MIMR)

Warehouse Operations

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A Project report on WAREHOUSE OPERATIONS

At ZUARI INDUSTRIES LTD.

Submitted By:
Lavendra S. Patil
MMS 1079 (2010 - 2012)
Master of Management Studies (University of Mumbai)

Mumbai Institute of Management and Research (MIMR)

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DECLARATION

I, Lavendra Sudam Patil pursuing Masters of Management Studies (MMS) from Mumbai Institute of Management & Research (MIMR), hereby declare that I have successfully completed this project entitled Warehouse Operations for the academic year 2010 2012 from Zuari Industries Ltd.. The information incorporated in this project report is true, authentic and original to the best of my knowledge.

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Acknowledgement
I thankful to the God for giving me good health and good opportunity in doing this project. I express deep sense of gratitude and sincere thanks to Mr. J. K. Jadhav Chairman & Prof.Vishwanathan director of Mumbai institute of management studies and research, for giving me an opportunity to be a part of their institute and learn the various aspects of business through MMS.

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TABLE CONTENT

SR. NO. 1 2 3 4 5 6 7 8 Executive Summary Introduction Objective Prime Time Matter Company Profile Recommendation Conclusion Cross reference Index

TOPICS

PAGE NO. 7 8 9 10-44 45 49 49 52

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Executive Summary
(Improved Logistic of organization through effective warehouse management)
The report examines and provides the detailed analysis of warehouse operations with respect to its implementation in the organization. A warehouse management system (WMS) or Warehouse operations system 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. Managing the logistics environment is now more challenging than ever, as supply chains are increasingly affected by market uncertainties caused by, among other things, fluctuating fuel prices and greater customer expectations. Therefore, integrating end-to-end logistics and fulfillment operations is crucial to profitably managing the movement of inventory, to execute on the promise of the perfect order the right product, in the right place, at the right time. Visibility across all nodes in the network is key to anticipating supply chain disruptions and facilitating the best way to respond in a proactive, timely, and profitable manner across the global logistics network. At the end, the study presents a proposed model of Effective Warehouse Operations for entire process of warehouses system in Industry.

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Introduction

We eat a variety of food in our daily life. Some of us may take rice, while others may take chapati or roti as our main food. But have you ever thought from where the paddy or wheat from which these food items are prepared comes from. We know that these food grains are not produced throughout the year. But we need to eat them every day. So how are the farmers able to supply these continuously to us? You might be thinking that they store the food grains in a proper place and supply them at the time of need. Yes, you are right. Since the production takes place during a particular season and in specific areas, there is a need to store these grains systematically. In our home we may keep limited stock for our own consumption. But there are certain places or stores, where these items are stored in huge quantities in a proper and systematic way. All these stock keeping units are called as Warehouses. These warehouses help to keep the entire inventory intact. Therefore in entire supply chain system or management warehouse provides a unique role and is require like as the vaccination for business.

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Objective of the project

The warehouse or the stock keeping unit is the need for an industry in todays competitive world. Warehouse plays a controlling role in logistic and supply chain management. Hence the objective of the project would be:

1. Meaning of warehouse operation & recognizing the need for warehouse 2. Identify different types of warehousing 3. Characteristic of ideal warehousing 4. Role of warehouse in a company and in supply chain 5. Functions & advantages of warehousing

Definition & Meaning of warehousing:

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Definition:
A place in which goods or merchandise are stored A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns.

Meaning:
We need different types of goods in our day-to-day life. We may buy some of these items in bulk and store them in our house. Similarly, businessmen also need a variety of goods for their use. Some of them may not be available all the time. But, they need those items throughout the year without any break. Take the example of a sugar factory. It needs sugarcane as raw material for production of sugar. You know that sugarcane is produced during a particular period of the year. Since sugar production takes place throughout the year, there is a need to supply sugarcane continuously. But how is it possible? Here storage of sugarcane in sufficient quantity is required. Again, after production of sugar it requires some time for sale or distribution. Thus, the need for storage arises both for raw material as well as finished products. Storage involves proper arrangement for preserving goods from the time of their production or purchase till the actual use. When this storage is done on a large scale and in a specified manner it is called warehousing. The place where goods are kept is called warehouse.

The person in-charge of warehouse is called warehouse-keeper. Warehousing refers to the activities involving storage of goods on a largescale in a systematic and orderly manner and making them available conveniently when needed. In other words, warehousing means holding or preserving goods in huge quantities from the time of their purchase or
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production till their actual use or sale. Warehousing is one of the important auxiliaries to trade. It creates time utility by bridging the time gap between production and consumption of goods. In its simplest form, warehousing is the storage of goods until they are needed. The goal of warehouse operations is to satisfy customers needs and requirements while utilizing space, equipment, and labor effectively. The goods must be accessible and protected. Meeting this goal requires constant planning and ongoing change.

Missions of a Warehouse: Effectively ship product in any configuration to the next step in the supply chain without damaging or altering the products basic form
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Warehouse operations:

Inbound processes:
1. Receiving 2. Put away

Outbound processes:
1. Order picking 2. Checking, packing and Shipping

In the past, warehouse management could focus solely on controlling the movement and storage of materials within a warehouse operation and processing the associated transactions of picking, packing, shipping and receiving. However, todays systems must integrate warehouse operations, so that visibility extends beyond the four walls of the warehouse and to the rest of the value chain.

Goods Received

R eceiving O rders from H O

SH IPP IN G

Vendors, M anufacturer, C ust. R eturns

A SN

VA A N LID TIO O D R ER PR CESSIN O G

R EIVIN EC G

O D PIC IN R ER K G

Q LITY UA A SSU A CE R N
Scan Based Receiving O R M anual data entry & bai Insti label printed (if reqd)

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Warehouse operations processes:

Inbound: 1.receiving 2. Put away Outbound: 1.shiping 2.order processing

Inventory Management Process

Inbound Process
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1. Receiving:

Stock keeping unit Receiving

Under and Over Receiving Vendor Profiles are retained for instant access and comparison Capture Receiving Date for FIFO and other tracking purpose.
2. Quality Assurance:

Checks the accuracy of quantity and quality of goods received. Verification - Easy & quick checks on all cartons SPOT checking - Detailed checks on a sample basis. Sampling can be done on Vendor/ SKU/ Customer basis. Routing provision to Scrap/ Putaway/ Repacking. Vendor record maintained Hold code on damaged inventory with reason code
3. Customer Returns:

Planned/ Unplanned Returns Unlimited Return Reason codes maintained Inventory redirected to appropriate location Putaway/ Damage/ Repacking section Reports for future reference & Vendor Tracking

4. Cross Docking:
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Top most priority goods at receiving dock sent directly to fill an active order waiting to be shipped. Bypass in between process to ensure quick order processing. Special alert when expected goods are arrived at receiving dock which are planned to be cross docked.

5. Put Away:

Moving Pallets/ goods from receiving dock to appropriate storage location Random Putaway (to any location) Directed Putaway (to numbered location) Location record maintained by scanning item, location & Pallet while storing goods for easy retrieval as & when required.

Outbound Process
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Orders Downloaded (ERP) Sorting/ Filtering/ Selection Wave Creation Inventory Allocation Replenishment Generation Releasing Pick Tickets
2. Picking:

PAPER BASED PICKING Paper Pick Tickets System updated later Custom Labeling. Tagging after picking i.e. at checking station No Alert on mistake Separate Packing & Checking Module Best Pick Sequence

OTHER PICKING Real time Inventory update Custom a i I n s t Taggingoon shippable m e n t a n d picking labeling, i t u t e f M a n a g e cartons before Mumb
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 Audible tones for correct and incorrect scan Pick, Pack & Check together/ separately also Best Pick Sequence

3. Checking:

Crosschecking the SKU / carton picked against the pick slip Packing the SKU picked in right quantity in right box against the customer order and specifications. Value Added Services supported like Customer Specific Labeling, Special Packaging, UPC Tagging, Price Labeling, min/ max pieces per box, etc. Automatic printing of shipping documents and customer specific labels and reports without user intervention. Managing shipping carton weight, accuracy, etc.

4. Validation:
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 Last and final check of the boxes before they are forwarded to the Shipping Dock. Trap any fault/mistake which might have occurred during the various processes gone through by the box. The validation through the fixed scanner and In-Line Scale. Ensures accurate shipments such that the customers get the product they have asked for and fulfilling special conditions, if any.

5. Shipping:

Select, sort and palletize cartons meant for common Distribution Channel (DC) Small & LTL Shipments. Dock door verification ensures the correct material is loaded onto the correct dock door. Print all necessary shipping documents like BOL (Bill of Lading), Challan, export invoice, manifest report, etc. Captures Carrier, Shipment weight, Destination address, freight charges, mode of payment, shipping/ arrival date, etc. Shipping details are uploaded to the host system thru EDI.

Inventory Process
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1. Inventory Management:

Graphic Location Management of SKUs User defined rules Dynamic and fixed assignment to locations as per the order waves created. Min/ Max inventory level maintained. Barcode verification on each step of material movement Inventory Adjustment, Stock Transfer, Audit, Write off, Reservation

2. Physical Inventory / Cycle count:

PHYSICAL INVENTORY Complete count of entire inventory in the warehouse. Once/ twice a year Performed during non operating hours/ shutdown period

CYCLE COUNT Incremental approach to counting and inventory maintenance Cycle Count by individual Location. No DC Shut down Quarter vs. Annual Continuous Inventory adjustments.

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3. Replenishment:

Replenishment option (if maintaining forward pick) always ensures that picking location is never empty. Restock Alert is generated whenever the picking location reaches its minimum level of inventory requirement. Inventory is pulled out from Inventory Reserve Area and Picking locations are filled in again. This saves Pickers time that otherwise has to wait till the inventory arrives in picking area.

4. Kitting:

Taking Qty of 2 or more SKU packing them together. New SKU is created and put away is generated. Stock is made available for Picking.

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Warehousing is necessary due the following reasons. (i) Seasonal ProductionYou know that agricultural commodities are harvested during certain seasons, but their consumption or use takes place throughout the year. Therefore, there is a need for proper storage or warehousing for these commodities, from where they can be supplied as and when required.

(ii) Seasonal DemandThere are certain goods, which are demanded seasonally, like woolen garments in winters or umbrellas in the rainy season. The production of these goods takes place throughout the year to meet the seasonal demand. So there is a need to store these goods in a warehouse to make them available at the time of need.

(iii) Large-scale Production In case of manufactured goods, now-a-days production takes place to meet the existing as well as future demand of the products. Manufacturers also produce goods in huge quantity to enjoy the benefits of large-scale production, which is more economical. So the finished products, which are produced on a large scale, need to be stored properly till they are cleared by sales.

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(iv) Quick Supply Both industrial as well as agricultural goods are produced at some specific places but consumed throughout the country. Therefore, it is essential to stock these goods near the place of consumption, so that without making any delay these goods are made available to the consumers at the time of their need.

(v) Continuous ProductionContinuous production of goods in factories requires adequate supply of raw materials. So there is a need to keep sufficient quantity of stock of raw material in the warehouse to ensure continuous production.

(vi) Price StabilizationTo maintain a reasonable level of the price of the goods in the market there is a need to keep sufficient stock in the warehouses. Scarcity in supply of goods may increase their price in the market. Again, excess production and supply may also lead to fall in prices of the product. By maintaining a balance of supply of goods, warehousing leads to price stabilization.

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Types of Warehouses
After getting an idea about the need for warehousing and warehouse operations here are the different types of warehouses. Warehousing caters to the storage needs of different types of commodities. In order to meet their requirement various types of warehouses came into existence, which may be classified as follows. I. II. III. IV. V.
VI. VII. VIII.

IX. X. XI. XII. XIII. XIV.

Private Warehouses Public Warehouses Government Warehouses Bonded Warehouses Co-operative Warehouses Automated Warehouses Climate controlled Warehouses Distribution Warehouses Fulfillment/ Consolidation Warehouses Warehouses Providing Value Added Services Cross Docking and Trans-loading Warehouses Break Bulk Warehouses Storage Warehouses Refrigerated Warehouses

i. Private Warehouses Mumbai

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The warehouses which are owned and managed by the manufacturers or traders to store, exclusively, their own stock of goods are known as private warehouses. Generally these warehouses are constructed by the farmers near their fields, by wholesalers and retailers near their business centres and by manufacturers near their factories and used in their own distribution activity. The design and the facilities provided therein are according to the nature of products to be stored.

ii. Public Warehouses The warehouses which are run to store goods of the general public are known as public warehouses. Anyone can store his goods in these warehouses on payment of rent. An individual, a partnership firm or a company may own these warehouses. To start such warehouses a licence from the government is required. The government also regulates the functions and operations of these warehouses. Mostly these warehouses are used by manufacturers, wholesalers, exporters, importers, government agencies, etc. iii. Government Warehouses These warehouses are owned, managed and controlled by central or state governments or public corporations or local authorities. Both government and private enterprises may use these warehouses to store their goods. Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India are examples of agencies maintaining government warehouses.

iv. Bonded Warehouses

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These warehouses are owned, managed and controlled by government as well as private agencies. Private bonded warehouses have to obtain licence from the government. Bonded warehouses are used to store imported goods for which import duty is yet to be paid. In case of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid. These warehouses are generally owned by dock authorities and found near the ports.

v. Co-operative Warehouses These warehouses are owned, managed and controlled by co-operative societies. They provide warehousing facilities at the most economical rates to the members of their society.

vi. Automated Warehouses With advances in computer and robotics technology many warehouses now have automated capabilities. The level of automations ranges from a small conveyor belt transporting products in a small area all the way up to a fully automated facility where only a few people are needed to handle storage activity for thousands of pounds / kilogram product.

vii. Climate controlled warehouses

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Warehouses handle the storage of many types of products including those that need special handling conditions such as humidity controlled environment for delicate products such as flowers and dirt-free activities for handling highly sensitive computer product.

viii. Distribution Warehouses Warehouses performing distribution services on behalf of their customers. This generally requires that products be received and tracked by lot or sublot, with or without tracking numbers, such as pallet tags or serial numbers. Here product storage is considered a very temporary activity. In some cases, such as with distribution centres handling perishable goods, here most of the products enters in the early morning and is distributed at the end of the day.

ix. Fulfillment/ Consolidation Warehouses Warehouses where products are generally received in large quantities and shipped out in a large number of smaller mixed shipments. Such pick and pack operations require special inventory management and picking procedures. Location tracking is essential. Billing methods are generally similar to distribution warehouses.

x. Warehouses Providing Value Added Services Warehouses providing a wide range of value added services. This requires the warehousei to n s t i t labor o f Min n a g e m e n t special equipment to the apply u t e and, a some cases, a n d Mumba I
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customers products, such as repackaging, further processing, or labeling. This not only changes the product but requires additional billings. Such services are generally performed along with other warehouse functions.

xi. Cross Docking and Trans-loading Warehouses Warehouses that provide cross dock and trans-loading services. Container or railcar tracking is generally important. These services often require temporary storage with charges adjusted for free days or a grace period.

xii. Break Bulk Warehouses Warehouses that receive product in bulk, often by railcar, and then repackage the product based on customer requirements. In the case of containers with imported products, this generally requires the inspection and relabeling of product. Generally, special billing rules apply.

xiii. Storage Warehouses Warehouses which store product for periodic delivery to a manufacturer or distribution center. This is often associated with providing just in time delivery
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of the product to the consignee. This could be imported raw materials or items used in the manufacturing process, such as cans or sub-assemblies. Items are generally tracked by lot, with the lot often being specified for delivery. Handling, storage and accessorial charges are similar to distribution warehouses.

xiv. Refrigerated Warehouses Refrigerated warehouses often require more detailed tracking of product and special billing procedures. Handling charges often involve a table of decreasing charges based on volume. Often each transaction is subject to a minimum charge.

There are certain types of refrigerated warehouses

Refrigerated Warehouse Types & How to Select

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1. Cold Storage Warehouse Types Based on Refrigerating Temperature Range

High temperature walk-in cooler cold storage warehouse Class L, Temperature Range: +5~ -5. The storage purpose of this refrigerator cold room is for refrigerated storage of food like vegetable, fruit, egg, pharmaceutical material, floral, wood and other things suitable for this temperature range.

Medium temperature walk-in freezer cold storage warehouse Class D, Temperature Range: -10~ -18. The storage purpose of this freezer cold room is for frozen storage of food like meat, seafood and other things suitable for this temperature range.

Low temperature walk-in freezer cold storage warehouse Class J, Temperature Range: -23~ -28. The storage purpose of this deep freezer cold room is for the frozen storage of ice cream and other deep frozen food etc.

Ultra low temperature walk-in freezer cold storage warehouse

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Temperature Range: -30. The storage purpose of this ultra low temperature cold room is mainly for fast frozen food, industrial laboratory test room, medical treatment, blood bank, etc.

2. Cold Storage Warehouse Types Based on Installation Structure: Civil construction refrigerated warehouse The space enclosing structure wall material of the cold store room is made of brick and the heat insulation material is made of sprayed polyurethane (PU foam).

Assembling refrigerated warehouse The space enclosing structure wall material of the cold store room is made of prefabrication modular cold room insulated panel (insulated foam panel). The foamed insulation material of the cold room panel is polyurethane (PU panel).

Functions of Warehouses

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Warehouses preserve goods on a large-scale in a systematic and orderly manner. They provide protection to goods against heat, wind, storm, moisture, etc. and also cut down losses due to spoilage, wastage etc. This is the basic function of every warehouse. In addition to this, warehouses now a day also perform a variety of other functions. Warehouses perform the following functions I. II. III. IV. V. VI. VII. Storage of goods Protection of goods Risk bearing Financing Processing Grading and branding Transportation

i. Storage of goodsThe basic function of warehouses is to store large stock of goods. These goods are stored from the time of their production or purchase till their consumption or use.

ii. Protection of goodsA warehouse provides protection to goods from loss or damage due to heat, dust, wind and moisture, etc. It makes special arrangements for different
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products according to their nature. It cuts down losses due to spoilage and wastage during storage.

iii. Risk bearing Warehouses take over the risks incidental to storage of goods. Once goods are handed over to the warehouse-keeper for storage, the responsibility of these goods passes on to the warehouse-keeper. Thus, the risk of loss or damage to goods in storage is borne by the warehouse keeper. Since it is bound to return the goods in good condition, the warehouse becomes responsible for any loss, theft or damage, etc. Thus, it takes all precautions to prevent any mishap.

iv. FinancingWhen goods are deposited in any warehouse, the depositor gets a receipt, which acts as a proof about the deposit of goods. The warehouses can also issue a document in favor of the owner of the goods, which is called warehouse-keepers warrant. This warrant is a document of title and can be transferred by simple endorsement and delivery. So while the goods are in custody of the warehouse-keeper, the businessmen can obtain loans from banks and other financial institutions keeping this warrant as security. In some cases, warehouses also give advances of money to the depositors for a short period keeping their goods as security.

v. Processing
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Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. For example, paddy is polished, timber is seasoned, and fruits are ripened, etc. Sometimes warehouses also undertake these activities on behalf of the owners.

vi. Grading and brandingOn request warehouses also perform the functions of grading and branding of goods on behalf of the manufacturer, wholesaler or the importer of goods. It also provides facilities for mixing, blending and packaging of goods for the convenience of handling and sale.

vii. TransportationIn some cases warehouses provide transport arrangement to the bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery on request of the depositors.

Advantages of Warehousing
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i. Protection and Preservation of goods Warehouse provides necessary facilities to the businessmen for storing their goods when they are not required for sale. It provides protection to the stocks ensures their safety and prevents wastage. It minimizes losses from breakage, deterioration in quality, spoilage etc. Warehouses usually adopt latest technologies to avoid losses, as far as possible.

ii. Regular flow of goodsMany commodities like rice, wheat etc are produced during a particular season but are consumed throughout the year. Warehousing ensures regular supply of such seasonal commodities throughout the year.

iii. Continuity in productionWarehouse enables the manufacturers to carry on production continuously without bothering about the storage of raw materials. It helps to provide seasonal raw material without any break, for production of finished goods.

iv. Convenient location-

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Warehouses are generally located at convenient places near road, rail or waterways to facilitate movement of goods. Convenient location reduces the cost of transportation.

v. Easy handlingModern warehouses are generally fitted with mechanical appliances to handle the goods. Heavy and bulky goods can be loaded and unloaded by using modern machines, which reduces cost of handling such goods. Mechanical handling also minimizes wastage during loading and unloading.

vi. Useful for small businessmenConstruction of own warehouse requires heavy capital investment, which small businessmen cannot afford. In this situation, by paying a nominal amount as rent, they can preserve their raw materials as well as finished products in public warehouses.

vii. Creation of employment Warehouses create employment opportunities both for skilled and unskilled workers in every part of the country. It is a source of income for the people, to improve their standards of living.

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Various steps necessary for sale of goods such as inspection of goods by the prospective buyers, grading, branding, packaging and labeling can be carried on by the warehouses. Ownership of goods can be easily transferred to the buyer by transferring the warehouse keepers warrant.

ix. Availability of financeLoans can be easily raised from banks and other financial institutions against the security of the warehouse-keepers warrant. In some cases warehouses also provide advance to the depositors of goods on keeping the goods as security.

x. Reduces risk of loss Goods in warehouses are well guarded and preserved. The warehouses can economically employ security staff to avoid theft, use insecticides for preservation and provide cold storage facility for perishable items. They can install fire-fighting equipment to avoid fire. The goods stored can also be insured for compensation in case of loss.

Characteristics of Ideal Warehouses

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An ideal warehouse possesses certain characteristics, which are given below: i. Warehouse should be located at a convenient place near highways, railway stations, airports and seaports where goods can be loaded and unloaded easily. ii. Mechanical appliances should be there to loading and unloading the goods. This reduces the wastages in handling and also minimizes handling costs. iii. Adequate space should be available inside the building to keep the goods in proper order. iv. Ware houses meant for preservation of perishable items like fruits, vegetables, eggs and butter etc. should have cold storage facilities.

v. Proper arrangement should be there to protect the goods from sunlight, rain, wind, dust, moisture and pests.

vi. Sufficient parking space should be there inside the premises to facilitate easy and quick loading and unloading of goods.

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vii. Round the clock security arrangement should be there to avoid theft of goods. viii. The building should be fitted with latest fire-fighting equipments to avoid loss of goods due to fire.

10 Ideas for a More Efficient Warehouse Operation

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1. Profile your orders. The most popular SKUs (Stock Keeping Unit) likely change with the seasons, so re-slot your warehouse to accommodate your business model, and review the setup at least once a year. This ensures that your A SKUs are in the correct storage media and physical location, reducing unnecessary travel for your order pickers. Your warehouse management system (WMS) should have a dynamic slotting module.

2. Analyze your current picking methodology. Make sure your picking methodology suits your organization. Whether you choose single order, multi-order, batch picking with a single picker, or zone picking, the correct picking methodology is critical for optimizing productivity.

3. Use software to sequence orders. Sequencing your orders by pick path, and batching together single lines, same-zone orders, and difficult picks such as non-conveyable items saves tremendous time on the distribution center floor. Again, your WMS software should be able to organize the workflow, and optimize sequence performance.

4. Create a warehouse within a warehouse. On the one hand, you can gain tremendous efficiency by grouping together
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the 20 percent of your SKUs that complete 80 percent of your orders. This cuts travel time for your pickers. Be sure, however, that the 80-20 area or zone is properly designed to accommodate high-volume activity. On the other hand, this is kind of old-fashioned thinking; in this day and age of the Long Tail, you may not have the ability to utilize the 80-20 rule, because you may be selling few of many, instead of many of the few!

5. Evaluate your storage equipment to ensure proper application. Placing slow-moving, low-cube items in bin shelving and fast-moving items in carton/pallet flow or other appropriate storage options improve storage density and picker productivity. This also allows you to better utilize the DCs cube. Seasonal and other promotions can mess with this idea, so beware.

6. Create wheelhouse zones in your picking area. You can increase picking productivity and improve order picker ergonomics by slotting your fastest-moving SKUs in the waist-to-shoulder or wheelhouse area of your storage media.

7. Designate only two or three standard shipping cartons. With only two or three boxes to choose from plus a few custom sizes if necessary pickers will put orders together faster. Cutting down on sizes optimizes freight expenses and reduces corrugated spend. It also makes it easier to support a pick-path methodology.
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8. Consider automation. Order pickers spend about 60 percent of their time walking product or moving product around. Consider an automated solution, such as conveyance, to reduce their extensive travel time. Multi-level pick towers also save travel time and are quite innovative.

9. Understand your technology options. Plenty of options are available to increase efficiency including bar codes, radio frequency, pick-to-label, pick-to-light, and voice-activated technologies. These technologies are designed to provide different levels of increased picking productivity and improved accuracy.

10. Implement an incentive program for pickers. Incentive programs can be extremely valuable to an organization. To ensure your program is effective, you must guarantee that productivity measurements are accurate, fair and equitable. Use key performance indicators (KPIs) to drive productivity.

Warehousing Strategy:

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Other qualitative factors that should be considered while effective operational activities of warehouses. (1) Presence synergies, (2) Industry synergies, (3) Operating flexibility, (4) Location flexibility, and (5) Scale economies.

(1)

Presence synergies:

Presence synergies refer to the marketing benefits of having inventory located nearby in a building that is clearly affiliated with the enterprise (e.g., the building has the firm's name on the door). It is widely thought that customers are more comfortable when suppliers maintain inventory in nearby locations. Products and customers that benefit from local presence should be served from private or contract facilities.

(2) Industry synergies

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Industry synergies refer to the operating benefits of collocating with other firms serving the same industry. e.g., firms in the grocery business often receive substantial benefits when they share public warehouse facilities with other suppliers serving the same industry. Reduced transportation cost is the major benefit since joint use of the same public warehouse allows frequent delivery of consolidated loads from multiple suppliers. Public and contract warehousing increase the potential for industry synergy.

(3) Operating Flexibility Operating flexibility refers to the ability to adjust internal policies and procedures to meet product and customer needs. Since private warehouses operate under the complete control of the enterprise, they are usually perceived to demonstrate more operating flexibility. On the other hand, a public warehouse often employs policies and procedures that are consistent across its clients to minimize operating confusion. There are many public and contract warehouse operations that have demonstrated substantial flexibility and responsiveness.

(4) Location flexibility

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Location flexibility refers to the ability to quickly adjust warehouse location and number in accordance with seasonal or permanent demand changes. For example, in-season demand for agricultural chemicals requires that warehouses be located near markets that allow customer pickup. Outside the growing season, however, these local warehouses are unnecessary. Thus, the desirable strategy is to be able to open and close local facilities seasonally. Public and contract warehouses offer the location flexibility to accomplish such requirements.

(5) Scale economies Scale economies refer to the ability to reduce material-handling and storage through application of advanced technologies. High-volume warehouses generally have greater opportunity to achieve these benefits because they can spread technology's fixed cost over larger volumes. In addition, capital investment in automated equipment can reduce direct variable cost. Public and contract warehouses are generally perceived to offer better scale economies since they are able to design operations and facilities to meet higher volumes of multiple clients.

Company Profile
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Company Name: Zuari Industries Ltd. Business Owner: Mr. Saroj Kumar Poddar Main markets: Dealers, Sub dealers, State level distributors Business Type: Manufacturer

Product: Fertilizers, Fungicides, Herbicides, Micronutrients,Insecticides.

Zuari Industries Ltd. Is an Agri-Input company belonging to the KK Birla Group of companies.Established in 1967.The company manufactures complex fertilizers and agricultural inputs,also contributing to the agricultural community with educational programmes and development programmes.Zuari is a large-scale industry in Goa.At the time of initiation,the plant wasmthe largestt industrial f M a n a g e m eGoa,acting as an impetus for undertaking in n t a n d Mu bai Ins itute o
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rapid economic growth in surrounding areas.The plant was started as a financial collaboration between the house of Birlas,US steel corporation(USX),International Finance Corporation,and the Bank of America.The design,Engineering and construction of plant were carried out by toyo engineers Japan.The has an annual installed capacity of 1100000 metric tones of fertilizers.the entire manufacturing facility comprises of four separate plants,namely the Ammonia,Urea,NPK A and NPK B.Zuari complex fertilizers plants use the latest in plant reactor technology and are based on the slurry granulation process.The plants have played a key role over the last thirty-five years in meeting the fertilizer demand across 4 states. .

Container Dish Warmer

Fuel Gel

Quality Control: Products incepted after extensive research and experiment in the field of fuel gel and warmers. Since then, company has been meeting the every customer requirements successfully with fruitful response.
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We provide high quality and advanced specially products designed to offer meaningful enhancement in its range of consumer applications. We maintain quality control cell in our company to check the quality of each batch we manufacture.

Warehouse operations In Company

The company uses Private warehouse type of warehouse to store their own products. Private warehouse the type discussed earlier. Company makes its distribution through its own warehouse only.
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It has state of the art storage facility for warehousing flammable products of company. The entire building is flame proof based on Fire Protection Design Challenges. The entire building interior is made up of steel background to help for flammable product like Fuel gel. Storage includes bulk storage and solid piling.

Storage types:
Bulk storage consists of piles of unpackaged material in loose, free-flowing condition, such as powder, granules, pellets or flakes such materials as can be found in silos, bins, tanks, or in large piles on the floors of storage buildings. Solid piling consists of cartons, boxes, bales, bags, etc., in direct contact with each other. Palletized storage consists of unit loads mounted on pallets. Rack storage consists of structural framework into which unit loads (usually on pallets) are placed. Rack storage can be further classified into single-row, double-row, multi-row, carousel, and flow-through racks.

Warehouse operations flow in company:

Purchase Process of Raw material

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Inbound logistics of Finished Goods

Warehouse Logistics

Sales & Distribution

Outbound Logistics

Recommendation: 1. As the products of the Company are flammable it can cause damage to the company if fire gets place. So Company can go for contract warehousing i.e. 3PL.

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Conclusion: With changing business dynamics and globalization the world is like a village and warehousing has emerged as an important tool to assist in becoming agile and flexible and that with Automation. So companies must look for automation and 3PL (3rd Party Logistics). Global 3PLs will play a major role in defining the supply chain dynamics of the country.

SELECTED BIBLIOGRAPHY:

www.google.com
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Smart Logistics journals - network 18 www.kontanelogistics.com

Warehouse Business Studies Warehouse Management Prof. Nadpurohit

www.eclsys.com

www.knowthis.com www.bestwms.com www.werc.org

CROSS REF. INDEX

SR. NO. 1 2 3 4

TOPICS Definition & Meaning of Warehouse Warehouse operations meaning Inbound Process Outbound Process
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5 6 7 8 9

Inventory Process Needs of Warehouse Types of Warehouse Strategy of Warehouse Bibliography

19 21 23 42 51

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