evaluation of warehouse management of coats bangladesh ltd
TRANSCRIPT
Internship
Report on
S. M. Zabed
MBA 4th semester
ID # 095225
Reg.No#0902315225
Session: 2008-2009
Department of Management studies
Jagannath University, Dhaka.
Evaluation of Warehouse Management of COATS Bangladesh Ltd
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On
Evaluation of Warehouse Management
of COATS Bangladesh Ltd.
Submitted to:
Shah Ridwan Chowhury
Lecturer
Department of Management studies
Jagannath University, Dhaka.
Submitted by:
S. M. Zabed
MBA 4th semester
ID # 095225
Reg.No#0902315225
Session: 2008-2009
Department of Management studies
Jagannath University, Dhaka.
Date of submission: 27-11-2012
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Letter of Transmittal
November 27, 2012
To
Shah Ridwan Chowdhury
Supervisor
Dept.of Management Studies
Jagannath University, Dhaka.
Sub: Submission of Internship Report.
Dear Sir,
With due respect and great pleasure I submit my Master Paper on “Evaluation of
Warehouse Management of COATS Bangladesh Limited” and for your kind
consideration. This job is assigned to me to fulfil the partial requirement of MBA
program. The internship report contains a comprehensive study on Warehouse
Management of COATS Bangladesh Limited. It was a great pleasure for me to have
the opportunity to work on the above mentioned subject. The report is prepared under
supervision of Shah Ridwan Chowdhury, Course Teacher of MBA program;
Department of Management Studies, Jagannath University Dhaka and I respectfully
acknowledge his guidance and help. I will glad to accept and clarity any inquires
regarding this master paper.
Would you please kindly accept my internship report and oblige me thereby. Thank you
very much for your kind co-operation.
Sincerely Yours,
………………….
S. M. Zabed
MBA 4th semester
ID # 095225
Reg.No#0902315225
Session: 2008-2009
Department of Management studies
Jagannath University, Dhaka.
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Supervisor Declaration
This is to certify that the internship report on Evaluation of Warehouse
Management of COATS Bangladesh Limited, submitted for the award of the degree
of MBA in the major of Management at Jagnannath University, Dhaka is a record of
bona-fide research carried out by S. M. Zabed under my supervision, No part of this
report has been submitted for any degree, diploma title recognition before.
I wish his every success in life and the Thesis is approved and is suitable in eminence
and figure.
-------------------------------------------------------------------
Shah Ridwan Chowdhury
Supervisor
Dept.of Management Studies
Jagannath University, Dhaka.
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Acknowledgements
At first I would like to express my gratitude to Almighty Allah who has given
me opportunity to go through the total process of making master paper in this regard. I
would like to acknowledge my deepest gratitude to the honourable supervisor Shah
Ridwan Chowdhury, Course Teacher of MBA program, Department of Management
Studies, Jagannath University Dhaka who has given me suggestions regarding the
preparing of the master paper and to go through the process, which has become an
excellent way of understanding the topic of my master paper.
I would like to thank our class mates for their valuable views and opinions throughout
our study period.
I express my heartiest gratitude to the executives of COATS Bangladesh Limited who
extended their wholehearted cooperation during the preparation of master paper. I
would like to also extend my gratitude to Mr. Shamol Kormoker (Warehouse
Manager), Md. Haider Rahaman (Warehouse In- charge), Md. Shoplov Hasan
(Senior Warehouse Officer) and all department supervisors.
Last but not the least; I would like to thank all the employee of COATS Bangladesh
Limited who has given me all kinds of information.
Thank you,
………………....
S. M. Zabed
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Executive Summary
This report is based on “Evaluation of Warehouse Management of COATS
Bangladesh Limited”
Internship program is the pre-requisite for the post-graduation in MBA. Classroom
discussion alone cannot make a student perfect in handling the real business situation;
therefore, it is an opportunity for the students to know about the real life situation
through this program.
COATS Bangladesh Limited is the one of largest multinational organization in
Bangladesh. Its produce and Distribution Sewing thread.
The objectives of the report are to know the warehouse management operation,
handling of Warehouse Management of COATS Bangladesh Limited. The report uses
data both from primary and secondary sources. To get the primary information for this
report I have discuss with people and face to face interaction with the operation team.
Secondary information will be also acquired from annual report of COATS Bangladesh
Limited, their published brochures, and web sites of the COATS Bangladesh Limited.
The report employs descriptive and analytical methods to achieve the objectives.
The report is basically divided into six major chapters.
In the first chapter is project part where I focused on origin, purpose, objective, scope,
methodology, limitation of the report.
In the second chapter, I have focused on scenario of warehouse management in
Bangladesh
Chapter three- I have focused on COATS Bangladesh Limited (Warehouse), its
mission, vision, objectives activities, core values, organizational hierarchy, human
resource, service etc.
Chapter four- is a comprehensive study of experiences gathered through doing
Internship or doing Job in COATS Bangladesh Limited (Warehouse). is fully made up
of the detail warehouse management system of COATS Bangladesh Limited,
Department of Receiving, Department of Packing, Department of Invoicing, and
Department of Distribution
Chapter five- is a study of Finding and Analysis regarding the objectives of the study
including problems identified.
Chapter six- is presents conclusion and recommendations and suggestions for further
researchers.
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Table of Contents
Title Page Page
PART ONE
Preliminary matter
Letter of Transmittal 3
Supervisors Declaration 4
Acknowledgement 5
Executive Summary 6
Table of Content 7
PART TWO
Main Body of the Report
Chapter – One
Introduction of Warehouse Management 11
1.1 Introduction 12
1.2 Objectives of the Report 12
1.2.1 General Objectives 13
1.2.2 Specific Objectives 13
1.3 Research Methodology 13
1.3.1 Identifying data sources 14
1.3.2 Methods of data collection 14
1.3.2.1 Methodology on the field 14
1.3.2.2 Methodology on outside the field 14
1.3.3 Methods of data analysis 14
1.4 Literature Review 15
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1.4.1 Why Have a Warehouse 16
1.4.2 Types of Warehouses
16
1.4.3 Today‟s Warehouse Requirements
18
1.4.4 Problem Areas in Warehousing
19
1.4.5 History of Warehousing
19
1.4.6 Changing Trends of Warehousing 21
1.5 Scope and Limitation of the Study 22
Chapter -Two
Scenario of Warehouse Management in Bangladesh 23
2.1 Warehouse Management Today 24
2.2 Warehouse Management Tomorrow 25
Chapter Three
An Overview of COATS Bangladesh Limited 26
3.1. Organizational Overview 27
3.1.1 COATS Yesterday 27
3.1.2 COATS Today 28
3.1.3 COATS Tomorrow 28
3.1.4 Vision 28
3.1.5 Mission 28
3.1.6 Goals 29
3.1.7 Principles 29
3.2 Number of Department 29
3.3 Organizational Hierarchy 30
3.4 Human Resource Policy 31
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3.5 Number of Employees 31
3.6 Services 31
Chapter Four
Practical Experiences Gathered through Doing Job in
COATS Bangladesh Ltd 32
4.1 Practical Work Experiences 33
4.1.1 Experience in Collecting Data 33
4.1.2 Interaction with Different Levels of Warehouse Officials 34
4.2
Knowledge About Practical Warehouse Management In COATS
Bangladesh 34
4.3 About Manager/ Warehouse Manage 35
4.4 Qualification To Manage 35
4.4.1 Education Sector 35
4.4.2 Training 35
4.4.3 Related Work Experience 35
4.5 Warehouse Operation 35
4.6 Personal Attributes 36
4.7 Thinking Skills 37
4.8 Regular Work 38
4.9 Others warehouse function 39
4.9.1 Receiving 39
4.9.2 Put away
39
4.9.3 Pallet Storage Systems
39
4.9.4 Pallet Retrieval Systems
39
4.9.5 Case Picking Systems
39
4.9.6 Unitizing and Shipping 39
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Chapter Five
Findings and Analysis 41
5.1 SWOT Analysis of COATS Bangladesh Limited (CBL) 42
5.2 SWOT Analysis of Organization 44
5.3 Conclusion 45
5.4 Prepare Action Plan 45
5.5 Findings and Analysis 46
Chapter Six
Recommendation and Conclusion 49
6.1 Recommendation for Action 50
6.1.1 Put Warehouse Safety First 50
6.1.2 Manage Warehouse Employees 51
6.1.3 Oversee All Warehouse Operations 51
6.1.4 Review Delivery Schedules 51
6.2 Conclusions 53
End Matter
References 54
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Chapter One
Introduction of
Warehouse Management
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1.1 Introduction:
Warehousing is no longer the soloed operation ignored by those in the supply
chain who do not directly toil within the four walls of a distribution environment.
Companies are expecting more from their warehouse and distribution centre operations.
They demand greater visibility into order, inventory, and task statuses inside the
warehouse. And they expect improved productivity to support sales growth, channel
expansion, and increasingly tailored fulfilment services for customers.
It‟s basically a function of storing goods in between the time they are
manufactured and the time they are delivered to the customer. In practice, the goods are
produced in long production runs and they are shipped to in large lots to the storage
areas or warehouses closer to the market. In the post second world war period, the
general trend for the supplier has been to store the goods in order to meet the demand in
the market which is always fluctuating. The delivery time has been very essential tool
for the businesses as a marketing technique. The idea has been to provide shorter lead
times instead of reducing the price in order to attract the customers. This marketing
strategy is one of the main reasons for the rapid growth of the concept of warehousing
globally.
As a student of Business Administration of Jagannath University, Dhaka, I have
conducted my internship program in COATS Bangladesh Ltd (Warehouse). This report
has been prepared under the guidance, supervision and inspiration of Shah Ridwan
Chowdhury, Course Teacher of MBA program, department of management studies,
Jagannath University, Dhaka. Moreover, while preparing the report I was under the
supervision and guidance of, Mr. Shoplov, Sr. Officer, COATS Bangladesh Ltd.
1.2 Objectives of the Report:
The objects of this report are to give an overview and to understand deeply the
concept of “Warehouse Management”, which is defined and interpreted in theory and
practice. In order to get an overview, both theoretical and empirical studies are
conducted. The theoretical study is conducted by carrying out work on relevant
literature through textbooks, scientific articles, internet etc. In the empirical study, we
investigate the present state of the warehouses and examine whether the case companies
utilize the practices that the literature points out based on theoretical background. The
empirical study is implemented by interviewing warehouse managers and work on
there.
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1.2.1 General Objectives
The general Objectives of the report are as follows:
To make a bridge between what I have learnt theoretically and how these are
practically.
1.2.2 Specific Objectives
The specific objectives of the study are as follows:
To present theoretical aspects of warehouse management
To achieve practical idea about overall warehouse
To study the warehouse management of COATS Bangladesh Limited. in
nature;
To apply theoretical knowledge in to practical area.
To compare practical warehouse system with theoretical approach.
To analyse the relevant ratio and comment on them;
To find out some problems of warehouse management of COATS
Bangladesh Limited;
To suggest some possible measures to overcome the problems
Although Try to know about whole functions of warehouse management. Which is
helps me in my feature life when I work in an organization.
1.3 Research Methodology
Methodology is the process, technique, or method of observation, survey and
analysis. It involves the stages starting from the identifying data sources to analysis of
data. There are three stages of methodology in this regard.
Identifying data sources
Methods of data collection
Methods of data analysis
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1.3.1 Identifying data sources
In order to prepare the theoretical framework of the study were consulted
industrial data has been collected from primary and secondary sources.
Primary data sources
Primary data can be defined as the data collected for the first time by the
investigator. In this report, I collected the primary data by working and consultation
with different executives of COATS Bangladesh Limited
Secondary data sources
When an investigation uses a data that have been previously collected by
someone else, then the data is known as secondary data. I collected most of my
secondary data from audit reports, prospectus, magazines etc. In my report I fried to
minimize the usage of secondary data as much as possible. I have used secondary data
only in the cases where it was not possible for me to use primary data.
1.3.2Methods of data collection
This term can be divided into two categories:
Methodology on the field
Methodology on outside the field
1.3.2.1 Methodology on the field
At the COATS Bangladesh Limited of the data were collected first hand.
1.3.2.2 Methodology on outside the field
The methodology I used outside the field was not an easy one. I went through
quite a number of reports constructed previously on COATS Bangladesh Limited. All
the data collected through this reports were completed for final analysis.
1.3.3 Methods of data analysis
Although scientific explanations through implementing statistical processes is
sometimes difficult or impossible to explain the maximum precaution was taken to
present the data in an understandable form, from which one can arrive at a decision.
Modern technology was used in the data analysis necessary tables; charts and diagrams
were made using software packages like Microsoft Excel 2007.
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1.4 Literature Review
Warehouses are usually large plain buildings used for commercial purposes
for storage of goods. Warehouses are commonly used by exporters, importers,
wholesalers, manufacturers etc. Warehouses are usually equipped with loading docks to
load and unload trucks and they have cranes and forklifts for moving goods, and are
placed on ISO standard pallets loaded into pallet racks. (See fig 1.1)
Some warehouses are fully automated where products are moved from one place to
other with a system of automated conveyors and automated storage and retrieval
machines which run by programmable logic controllers and also with logistics
automation software. In an automated warehouse the tracking of materials is
coordinated by warehouse management system (WMS), a database driven computer
program. Logistics personnel make use of WMS to improve the efficiency of the
warehouse by maintaining accurate inventory levels taking into consideration
warehouse transactions and directing put ways.
Traditional warehousing continuously is declining since the last decade of the 20th
century with the introduction of Just in Time (JIT) techniques which are specially
designed to enhance the return on investment (ROI) of a business by mitigating in-
process inventory. JIT concept is based on delivering product directly from the factory
to the retail outlet without the use of warehouse, but in some cases like offshore
outsourcing and off shoring in about the same time period, the distance between
manufacturer and the retailer increases considerably in many regions which builds the
need of at least one warehouse per region or per country for a given range of products
in any typical supply chain. (Tompkins, Smith, 1998).
Recent developments in marketing field have led to the development of warehouse
designing style, where the same warehouse is used for warehousing and also as a retail
store. These types of warehouses are equipped with tall heavy duty industrial racks,
with the items which are ready for sale are placed in the bottom parts of the racks and
the palletized and wrapped inventory items being usually placed in the top parts.
Exporters/manufacturers are using warehouses as a point of developing retail outlets in
a particular region or country. The above concept cuts down the end cost of the product
to the consumer which in turn enhances the production sale ratio. Warehousing concept
is used as a sharp tool by manufacturers to reach directly to consumers by avoiding or
bypassing importers or other middle agencies. (Tompkins, Smith, 1998)
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Figure 1.1 Structure of a Warehouse (Source: armitage.com)
1.4.1 Why has a warehouse
Despite the new technologies in e-commerce, supply chain integration, quick
response, just-in-time delivery and efficient consumer response that connect the
manufacturing with the end customers, businesses are still struggling to eliminate the
existence of a warehouse. Thus in order to meet the customer‟s requirements warehouse
needs to be properly coordinated and maintained. (Cooper. J.C, Davis. Matthew, 1984)
1.4.2 Types of warehouses
Raw material and component warehouses: It hold raw materials and always
in a position to induct raw materials onto a manufacturing or assembly process.
Work-in-process warehouses: This warehouses hold partially completed
products and assemblies at various points along production line or an assembly line.
Finished goods warehouses: It holds inventory usually to balance the variation
between production schedules and demand. Normally these warehouses are situated
near manufacturing plant, and it is characterised by the flow of full pallets in and full
pallets out, assuming the product size and volume authorizes pallet-sized loads.
Distribution warehouse and distribution centers: Distribution warehouses
accumulate products from various manufacturing points for combined shipment to the
common customer. Normally, the warehouses are located central to either the
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production locations or the customer base. Product movement represented by full
pallets or cases in and full case or broken case quantities out.
Fulfilment warehouses and fulfilment centres: It receives, pick, and ship
small orders for individual consumers.
Local Warehouses: These warehouses mainly for the purpose of responding to
the customer demand. Frequently, single items are picked, and the same item is shipped
to the customer every day.
Value-added service warehouses: Key product customization activities takes
place like packaging, labelling, marking, pricing, and returns processing.
There is also one more classification of warehouses according to which geographical
area they cater to:
Centralized warehouse
De-centralized warehouse
Centralized warehouse
Centralization generally refers to the allocation of the warehousing services to one
particular business unit which provides services to the whole firm. The decisions are
made at the central location for the entire network. The main characteristics of a
centralized approach are control, efficiency and good economy.
Benefits:
Improvement in productivity through balancing
Increase in available knowledge
Bundling of product flows
Combined use of production flows
Control on the system
Uniformity in the processes
Improved efficiency
Limitations:
Customer desire of self-pickup cannot be provided
Problem of concentration of customers in only certain markets and
inhomogeneous customer structure
Long internal transport paths in large central warehouses and higher costs
for the infrastructure
Slow process of decision making, less flexibility
High initial costs
Bureaucracy in the system
Inflexibility
Dependent systems
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De-centralized warehouse: Decentralization approach gives the individual
business units autonomy and independency over their own resources without any major
considerations over the remaining units unless there is a necessity for the overall
organization policy. In this approach each facility identifies its most effective strategy
without considering the impact on the remaining facilities in the network and this leads
to the local optimization. The main characteristics of the decentralized approach are
empowerment of individual business units, flexibility, and service orientation. They
provide as good service as the centralized warehouses in terms of customer service
level.
Benefits:
Rapid adjustment to the changes
Flexibility
Quality
Innovation
Low start-up costs
Customization and catering to individual needs is possible
Increase in responsiveness
Improvement in reliability
Limitations:
Lack of centralized control
Duplication of resources
Extensive use of effort and expertise
Increase in costs (Tompkins, Smith, 1998), (Mulcahy, 1994)
1.4.3 Today’s warehouse requirements
Execute more, smaller transaction
Handle and store more items
Provide more product and service customization
Offer more value-added services
Process more return
Receive and ship more international orders
At the same time, warehouses today have
Less time to process an order
Less margin for error
Less young, skilled, English-speaking personnel
Less WMS capability (Tompkins, Smith, 1998).
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1.4.4 Problem areas in Warehousing
Warehouse management was considered to be very simple to handle in earlier
days when everything was performed manually. The biggest problems then were the bar
codes and space utilization in the warehouse. There has been drastic change in today‟s
Internet world, after the outbreak of this internet technology everything was looking
even simpler than the earlier days with more efficiency and consumption of less time
and gaining a competitive advantage with potential economical savings. The evolving
technology changed the warehousing methods a lot with logistics being carried out a
quicker pace and with very little scope for error. Although there are many technologies
evolving every day, many problems are also arising making Warehousing more
complex. This in turn is affecting the whole supply chain management.
The following are some of the problems being faced by today‟s warehouses:
i) Automate all the mechanized or manual operations ii) Satisfy the
requirements of the customer without much customization iii) Integration of the
warehouse data with supply chain applications iv) Compatible to the cost- effective
global supply chain
1.4.5 History of warehousing
The warehousing concept takes us way back to the creation of granaries to store
food, which was stored for drought and famine and this food was available for purchase
in the conditions of emergency, famine, drought etc. As the European explorers began
to discover new shipping trade routes all over the world, the importance of warehouses
grew for the storage of products and commodities which were brought from far way
places. The ports were the main locations of the warehouses, since majority of the trade
between the countries was carried by ships.
In early days man used to store excess food and keeping animals for emergency surplus.
As the civilization developed, local warehouses were introduced. Normally
merchandise is stored in connection with shipping, trading, and manufacturing
activities. During the Middle Ages improvement in human knowledge gave rise to
warehousing to handle the storage of shipped items. The first known major commercial
warehouse was built in Venice, a centre of major trade routes. In late 1800‟s in the
United States, transportation between port cities and inland cities were effectively
provided by railroad. Freight cars were used as warehouses on wheels, and were
especially used in grain harvest season. Shortages in freight cars induced the railroad
companies to partition the transportation and warehousing functions. During this time
period because of monopoly on both warehousing and freight by railroad companies
favoured large corporations, giving them free warehousing services with the use of the
railroads. The warehousing facility was provided as an additional service to
transportation, and the service so provided was part of the clearance terminal. The word
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terminal describes the warehouses were located in the centre of the city, normally close
to the wholesale market district and railroad depot. Tompkins, Smith, 1998).
By the end of World War I, hand trucks were used for material handling in warehouses
and stacking was done by hand, and stacking heights were designed in 8-to 12-foot
range. During World War II, the fork lift truck and wooden pallets were introduced.
Stacking height of merchandise was increased to 30 feet, nearly a 300 present increase
due the mass production of forklift truck.
Warehousing systems have seen a continuous growth throughout the history, they have
been moving forward from local storehouses during the middle ages to multimillion-
dollar facilities. In 1960s and 1970s in the US automated warehousing meant automated
storage/Retrieval systems (AS/RS). The main factor which gave rise to this
development was the doubling of the value of business inventories between 1962 and
1972 and the value was tripled between 1972 and 1982. After the late 1980s the AS/RS
systems became obsolete and more emphasis was paid on reducing inventories, small
batch production and Just in time delivery.
In early days man used to store excess food and keeping animals for emergency surplus.
As the civilization developed, local warehouses were introduced. Normally
merchandise is stored in connection with shipping, trading, and manufacturing
activities. During the Middle Ages improvement in human knowledge gave rise to
warehousing to handle the storage of shipped items. The first known major commercial
warehouse was built in Venice, a centre of major trade routes. In late 1800‟s in the
United States, transportation between port cities and inland cities were effectively
provided by railroad. Freight cars were used as warehouses on wheels, and were
especially used in grain harvest season. Shortages in freight cars induced the railroad
companies to partition the transportation and warehousing functions. During this time
period because of monopoly on both warehousing and freight by railroad companies
favoured large corporations, giving them free warehousing services with the use of the
railroads. The warehousing facility was provided as an additional service to
transportation, and the service so provided was part of the clearance terminal. The word
terminal describes the warehouses were located in the centre of the city, normally close
to the wholesale market district and railroad depot. Tompkins, Smith, 1998).
By the end of World War I, hand trucks were used for material handling in warehouses
and stacking was done by hand, and stacking heights were designed in 8-to 12-foot
range. During World War II, the fork lift truck and wooden pallets were introduced.
Stacking height of merchandise was increased to 30 feet, nearly a 300 present increase
due the mass production of forklift truck.
Warehousing systems have seen a continuous growth throughout the history, they have
been moving forward from local storehouses during the middle ages to multimillion-
dollar facilities. In 1960s and 1970s in the US automated warehousing meant automated
storage/Retrieval systems (AS/RS). The main factor which gave rise to this
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development was the doubling of the value of business inventories between 1962 and
1972 and the value was tripled between 1972 and 1982. After the late 1980s the AS/RS
systems became obsolete and more emphasis was paid on reducing inventories, small
batch production and Just in time delivery.
1.4.6 Changing trends of warehousing
Due to the changing trends in the businesses, warehousing and distribution
operations should adopt to the emerging changes and growing needs of the customers.
The term „Globalization‟ brought rigorous changes in the field of logistics. The
distribution operations now pay more emphasis on fewer inventories, smaller order
sizes, larger SKU catalogues, quicker order turnaround, increased customized
packaging and value adding services. Once the businesses concentrated only on local
distribution centres and now all the companies give more importance on having more
globalized distribution centres, and instead of having single network channel, they are
having multiple distribution channels.
In order to cope to these changing trends every second, most of the companies have
deployed new technologies such as Warehouse management systems (WMS) and
Transportation management systems (TMS) and some have decided to redesign the
processes and facilities to meet the emerging requirements as well as to reduce costs
and improve service levels to the customers at the same time. Some large scale
businesses have gone one step ahead and decided to deploy automation of the whole
warehousing operations. Some have already opted to outsource all their warehousing
operations to third party logistics provider (3PL).
Development of automation and control systems
Moving beyond the hype of RFID
Training of employees
3PL providers:
Driving towards centralization of warehouses
Alternative picking methods
Extending supply chain software
Focus on profitability and accountability
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1.5 Scope and Limitation of the Study
The main objective of the study is to obtain a clear idea about the warehouse
management operation and specially supply chain management in COATS Bangladesh
Limited. I have worked in receiving department, packing department, invoice
department and worked in distribution department. I tried to earn a clear idea of
different sectors. Ultimate customer satisfaction on warehouse management system of
COATS Bangladesh Limited.
Though internship program is a practical oriented program, it faces some
difficulties. The major difficulties I have faced during my period in CBL are as
follows-
For the operation a report various relevant data and information are most
essential. But the officials did not operate to meet the requirement
I observed that unskilled persons are available in CBL; they are not able to teach
us various aspects.
There are also limitations regarding memory and knowledge of the respondent.
Some of the secondary sources i.e. the company personal were uncooperative
It is difficult to collect the existing data because of company secrecy.
The company authority was very busy, so they could not give me enough time
for discussion about various problems.
The recording system of the annual report is not sufficient.
Due to limited time it was not possible to prepare the report properly.
Unavailability to required published documents.
In spite of these limitations it can be said that, such limitations are common to almost
all data base study. Yet the researcher has tried his best to minimize the profitability of
errors. However the researcher believes that after taking possible precautions and
findings have been affected very little by the limitation of the study.
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Chapter Two
Scenario of
Warehouse Management in
Bangladesh
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2.1 Warehouse Management Today
If we take the view that Warehouse Management is what Warehouse Management
people do, then in 1990 Warehouse Management has a firm hand on all aspects of
physical distribution and materials management. Seventy-five percent or more of
respondents included the following activities as part of their company's Warehouse
Management department functions:
· Receiving of stock
· Stock put-away
· Labour and equipment optimisation
· Perpetual Inventory and Housekeeping
· Pick, Packing, Kitting and Despatch
· Traceability and audit-ability
Moreover, the Warehouse Management department is expected to increase its range
of responsibilities, most often in line with the thinking that sees the order fulfilment
process as one co-ordinated set of activities. Thus the functions most often cited as
planning to formally include in the Warehouse Management department are:
· Receiving processing
· Order processing
· Distribution process
On the other hand, there are certain functions which some of us might feel logically
belong to Warehouse Management which companies feel are the proper domain of
other departments. Most difficult to bring under the umbrella of Warehouse
Management are:
· Carrier interfaces
· Returns processing and reverse logistics
· Duty Management and Customs
· Pre-distribution
Write-in responses reveal the leading edge of what some Warehouse Management
departments are doing. These include engineering change control for packaging; custom
design packaging; drafting national Warehouse Management standards; and
implementing WMS software
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2.2 Warehouse Management Tomorrow
The future for Warehouse Management looks very bright. This year, as well as
last year, two major trends are benefiting Warehouse Management operations. These
are given in next page:
· Receiving service focus
· Distribution service
· Information technology
Successful organisations must be excellent in both of these areas, so the importance
of Warehouse Management and the tools available to do the job right will continue to
expand.
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Chapter Three
An Overview of
COATS Bangladesh Limited
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3.1 Organizational Overview:
In its journey of more than 200 years, Coats has established its manufacturing
plants in more than 70 countries and expanded its business operations in over 150
countries, worldwide.
In 1990, Coats expanded its business horizons in Bangladesh and started its operations
as Total Thread Bangladesh Ltd. In 1997, a global merger with Coats and Total Thread
formed which is presently recognized as COATS Bangladesh Ltd. At present, COATS
Bangladesh Ltd has 2 state-of-the-art Dyeing plants established in Chittagong and
Gazipur and has a warehouse in Gazipur. With over 1000 dedicated employees,
COATS Bangladesh is one of finest examples of enriched Warehouse Management.
At COATS Bangladesh, people do not stand on their position. Thought, contribution
and teamwork are valued over job titles and status. They operate on informal basis with
one another. Coats see ourselves as members of a global team, all with something
important to contribute.
The atmosphere at COATS Bangladesh is designed to foster personal, professional and
corporate growth. Coats work together in a spirit of cooperative teamwork and trust,
emphasizing the following shared values:
Coats know what they are doing, they know what to do, they keep Coats promises;
globally Coats recognize that customers pay for actions, not words. Coats commit us to
understand and improve customer profitability. It‟s take social, ethical and
environmental responsibilities seriously. Its use their capacity to imagine, innovate and
improve. Its take considered risks. It‟s competing as a team. Coats are proud of Coats
and their collective achievement. Coats view the future with confidence. It‟s expected
there work environment to reflect a sense of community while nurturing a commitment
to innovation. You will find a culture that encourages open dialogue and the sharing of
ideas, that prefers conversations over presentations. Coats are comfortable, yet
professional. They are casual, yet respectful.
3.1.1 COATS Yesterday
Coats plc has its roots in the very beginning of the industrial revolution, dated
back to the mid 18th century. Coats family established its business in Paisley, Scotland
in 1755. In 1896 Clarks, another thread manufacturer, merged with Coats. Originating
in Paisley, Scotland, both Coats and Clark families were the pioneers of sewing thread
and embroidery thread manufacture and distribution in the UK. Coats manufactured
sewing and crochet threads, including mercer crochet, while the Clark family
manufactured Anchor embroidery threads. In the 1980's another large textile group
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Vantona Viyella merged with Coats and subsequently acquired Total Group another
famous UK name.
3.1.2 COATS Today
Every four hours Coats makes enough thread to reach the moon and back, that's
an amazing 770,000 kilometres, or 478,000 miles. Coats thread has been to the moon
and back as part of astronauts' space suits and it's also landed on Mars as a crucial
component of the air bags that cushioned the landing of NASA's probe. Coats can
delivery there product on moon at present (if customer wants).
3.1.3 COATS Tomorrow
Looking ahead there are many exciting developments in the world of textiles
and distribution. Fact often follows fiction - especially science fiction! Anyone who has
seen the blockbusting movie, Minority Report, will realise that intelligent materials
could be tomorrow's reality. Part of our challenge is to anticipate the needs of the future
and we look as far as 25 years ahead and position ourselves to work with other forward-
looking companies. We view our future with confidence.
Coats is the world's leading producer and supplier of sewing thread used by clothing
companies, footwear manufacturers, furniture makers, car seat upholsterers and people
who sew at home. We are the only company in the world with the capability to produce
thousands of thread products to high quality standards and in colours specified to meet
the unique requirements of customers.
Today, we have manufacturing facilities in 68 countries in the world and our products
are marketed in 150 countries. Our global reach means we have the capability to ensure
swift product delivery anywhere in the world and (moon).
3.1.4 Vision:
At COATS have a clearly defined vision?
'COATS will be the leader in value added engineered yarns and threads for industrial
and consumer use.
COATS will develop and supply highly complementary products and services, where
they add significant value to customers.
COATS will achieve success through customer-focused innovation and winning
propositions driven by motivated people and global teamwork.'
3.1.5 Mission:
Our mission is to provide excellent solutions to our customers and partners that are
cost-effective, socially responsible and environmentally friendly, by maintaining the highest
safety standards and applying the best industry practices with optimal resource utilization.
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3.1.6 Goals:
We are focused on three goals which will help us to achieve our vision:
Profitable sales growth
Increased delivery efficiency
Positive teamwork
3.17 Principles:
The way we work at Coats to achieve our vision is guided by five principles:
Freedom to operate
Delivery (keep our promises)
Openness and honesty
Customer led innovation
Energy for change
3.2 Number of Department:
COATS Bangladesh (Warehouse) has four departments to operates all Warehouse
operation, there are there-
Receiving Department
Packing Department
Invoice Department
Distribution Department
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3.3 An Organizational Hierarchy:
Hierarchy Position of COATS Bangladesh Limited (Warehouse)
Warehouse Manager
Warehouse In-charge
Senior Warehouse Officer
Warehouse Officer (Packing Department)
Warehouse Officer (Distribution Department)
Warehouse Officer (Receiving Department)
Warehouse Officer (Invoice Department)
Supervisors (Packing Department)
Supervisors (Distribution Department)
Supervisors (Receiving Department)
Supervisors (Invoice Department)
Packer
Delivery man Receiving man
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3.4 Human Resource Policy:
There may be no better place to launch a supply chain career than at Coats
Bangladesh. That's because they have structured supply chain function in a way that
enables any one to achieve a comprehensive understanding of the supply chain. Any
one will be exposed to all areas of logistics, including sourcing & warehouse
management, planning, transportation, distribution, customer service all within the
context of a global company on the leading edge.
Any one will be contributing from day one, participating in the management of Coats
Bangladesh's supply chain. It may be in the area of sourcing & supply management, a
planner, shipping, warehousing, distributing. In all cases, any one will be using his/her
analytical, problem solving and communication skills to balance the cost, quality and
service trade-offs involved in everything from materials purchasing to product delivery.
3.5 Number of Employees:
COATS Bangladesh (Warehouse) has four departments to operates all
Warehouse operation, there are many employees involve in there-
There shown in Numbers:
Receiving Department – 30 persons
Packing Department – 45 persons
Invoice Department – 5 persons
Distribution Department – 60 persons
3.6 Services:
Coats Bangladesh (warehouse) offer warehousing and distribution solutions all
over the country.
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Chapter Four
Practical Experiences Gathered
Through Doing Job in COATS
Bangladesh Ltd
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4.1 Practical Work Experiences
As a partial fulfilment of MBA program, Jagannath University I am
conducting work on “Warehouse Management of COATS Bangladesh Limited
(CBL)”.The information gathered will be used for academic purpose only Research
work is not an easy task in a developing country like Bangladesh. When I started doing
my job, I had to face some difficulties including respondents are so busy in their work.
They could not provide time enough for the information required for preparing internee
paper. Lack of the up to date information is one of the major limitation. Others
limitations are as follows
a) Access to various information, as it is the secrets of this report success, so I
have to accomplish this study depending on some limited materials.
b) I also face some problems because lack of sufficient books in COATS
Bangladesh Limited (Warehouse) Library about Warehouse Management.
c) Because of time and cost constrains, it is not possible to generate a
representative sample size and also to use simple random sampling procedure.
d) Lack of time and resource constraint has also limited the scope to conduct the
survey smoothly and so as to prepare the internee report.
e) Experience makes a man efficient such kind of research of research activity is
done by me for the first time. That‟s why inexperience creates obstacle to follow the
systematic and logical research methodology.
Although above limitations, I tried my level best to prepare this master paper. I think
this master paper will be a good source of further research about Warehouse
Management. I gathered some experiences through this research work including the
following:
4.1.1 Experience in Collecting Data
While conducting the survey I went through many good and bad experiences.
To collect data I visit the employees of the COATS Bangladesh Limited (Warehouse).
Most of the employees very helpful. They co-operated with me and were ready to lend a
hand. On the other hand few employees were totally opposite as most of them were not
willing to help me at all and was very rude to me. They were also having a kind of fear
while answering the questionnaires. I had a great experience meeting many well known
celebrities and proprietors of big organization while I was conducting the survey on the
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warehouse. Many of them were very impressed looking at my questionnaire and also
helped me taking further survey on the warehouse.
4.1.2 Interaction with Different Levels of Warehouse Officials
Except from the usual works I had interactions with the managers, officers and my
colleagues.
Interaction with the Managers
In last three months I had attended training session and some lecturers that were
given by the managers. Beside these, I had informal discussions with the managers
regarding my problem on warehouse management, my mistakes and also about my
report. The managers were very much helpful regarding my problems and other
situations.
Interaction with Colleague
Under the direction of my senior officer and my colleague of the warehouse, I
Interaction with different Colleague of services department.
Moreover, I also know the following issues relating to COATS Bangladesh Limited
(Warehouse).
4.2 Knowledge about Practical Warehouse Management in COATS
Bangladesh
By doing this internee I have some experiences about those areas:
Warehouse management
Distribution
Warehouse administration
Sock control
Performance management
Health & safety
Supply chain process
Operational efficiencies
Staff recruitment
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4.3 About Manager/ Warehouse Manage
An enthusiastic warehouse manager with drive, determination and a proven
ability to oversee the efficient receipt, storage and dispatch of a wide range of goods.
Having the necessary management skills required to administer, improve and develop a
warehouse to achieve maximum efficiency, effectiveness and quality of service. A
hardworking, pro-active individual with an upbeat positive attitude, who also has
extensive knowledge of working practices, recruitment, pay, conditions of employment
and diversity issues.
4.4 Qualification to Manage
4.4.1 Education Sector – Warehouse Operations Managers need to completion of a
college or university program in business administration or in a discipline related to
facility operation and maintenance, or an equivalent combination of technical training
and experience in administration or maintenance.
4.4.2 Training – To manage require some on-the-job training; however, typically
these occupations require that the individual will already have the necessary skill set,
knowledge, work-related experience, and/or training.
4.4.3 Related Work Experience - Several years of progressively responsible
experience in facility operations or maintenance are usually required.
4.5 Warehouse Operation
To manage warehouse need to perform the following tasks -
Plan, develop, organize, direct, manage and evaluate the operations and
budget of warehousing facilities.
Plan, develop, and implement warehouse health and safety, and security
programs and activities.
Develop warehouse operations policies and procedures and communicate
this information to staff.
Develop and implement profit improvement plans and change management
plans
Direct and control corporate governance and regulatory compliance
procedures within the warehouse operations department
Develop key performance indicators to measure the effectiveness of the
warehouse operation.
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Remain current with latest warehouse operations technology systems and
procedures.
Plan, organize and direct warehousing related administrative services such
as signage, cleaning, installations, maintenance, repair, safety inspections,
parking, and snow removal.
Plan, organize, direct, manage and evaluate construction projects to modify
warehousing facilities
Perform day to day administrative tasks such as maintaining files and
processing paperwork.
Prepare or direct preparation of correspondence, reports, statistics related to
the warehouse operations area of responsibility, and operations,
maintenance, and safety manuals.
Interview, select, coach, train, manage, and appraise the performance of
warehouse and supervisory personnel.
Mentor selects warehousing operations staff.
Develop constructive and cooperative working relationships.
Problem solves, negotiate, and address staff challenges.
Confer with department supervisors to coordinate warehouse activities, such
as production, sales, records control, and purchasing.
Review contracts, invoices, work orders, consumption reports, and demand
forecasts to estimate peak delivery periods and to issue work assignments.
4.6 Personal Attributes
To successful warehouse management one person need some personal
attributes which are:
Ability - The following abilities are important to the role of Warehouse
Operations Manager: leadership, change management, oral expression and
comprehension, speech clarity and recognition, written comprehension, problem
sensitivity, flexibility, inductive and deductive reasoning, and information ordering.
Work Values - Individuals who will succeed in warehouse management:
Develop and maintain working environments that are health and safety
couscous,
Lead by example and offer supportive management, and
Empower employees to provide service to others and work with co-
workers in a friendly environment.
Oral Communication –
Provide clear and concise direction and instructions to staff and other
departments, sometimes during high stress situations
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Professional communications with clients, customers, staff, and
colleagues using a variety of communications devices and media
Exchange information with other managers and senior management
Communicate on staffing related matters
Conduct staff meetings and make presentations
Work Style – The following work styles are attributable to a Warehouse
Operations Manager: integrity leadership, tenacity, dependability, attention to detail, set
personally challenging achievement goals, initiative, cooperation, stress tolerance,
adaptability/flexibility, and persistence.
4.7 Thinking Skills
To successful warehouse management one person need some thinking skills
which are:
Problem Solving –
Respond to complaints by discussing the details with staff and
recommending solutions,
Identify problems with warehousing operations, and take the appropriate
action to deal with them
Identify problems with the implementation of health and safety
procedures, and take the appropriate action to deal with them,
Adapt negotiation strategies to cope with new circumstances
Identify practical solutions when work is backlogged through
prioritization and rationalization exercises
Decision Making –
Make decisions with market, economic, social, and political
environments taken in to account
Decisions are made in line with the warehouse operations strategy of the
organization
Make staffing decisions
Establish supplier evaluation criteria and methods of analysis
Establish the parameters for negotiating terms and conditions
Make decisions about suggestions for change (e.g. trying out a new
service provider)
Job Task Planning and Organizing – Liaison with employees and other
management is necessary to co-ordinate warehouse operations activities
Significant Use of Memory –
Remember the policies and procedures of the organization
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Remember customer details and the names and faces of staff
Remember terms of contracts
Remember health and safety regulatory requirements and other
associated regulatory requirements.
Finding Information –
Obtain information on the current legislation and regulations that apply
to material handling and warehouse operations
Find information for budgeting purposes
Consult other staff, departmental management and suppliers
Get information from minutes/correspondence in order to set policy
4.8 Regular Work
To successful warehouse management one person need some regular work which are:
Reading Tex –
Frequently read text in both print and non-print media
Trade magazines
Newsletters
Periodicals
Warehousing documentation (e.g. storage requirements, schedules,
dispatch notices, statistics, contracts, other legal document)
Collective agreements
Resumes
Performance report
Read and interpret dense and complex texts, and have ability to make high-level
inferences using specialized knowledge
Standard operating procedures
Trade terms
International standards
Regulation (e.g. labour, health and safety, dangerous good, spill
incidents, other warehousing related)
Instructional and managerial technique products
Document Use –
Documents produced and/or used may include graphs, charts, lists,
tables, schematics, drawings, schedules, labels, warning signs,
information signs, and etcetera, in both print and non-print media.
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Must be able to read simple to complex documents in which
considerable inference may be required
Must be able to read/interpret, and write/complete/produce documents
Specialized knowledge of the content of the document may be required;
multiple pieces of information from multiple sources are synthesized; the
quality of information may be evaluated for accuracy and omissions
4.9 Others warehouse functions
4.9.1 Receiving
It is the setup operation for all other warehousing activities. Receiving the merchandise
properly is the key to warehouse operations, because it will create problems in put
away, storage, picking and shipping, if the damaged or inaccurate deliveries are allowed
into the warehouse then the same has to be shipped.
Few world class receiving practices are
i) Direct shipping ii) Cross-docking iii) Receiving scheduling
iv) Pre-receiving v) Receipt preparation
4.9.2 Put away
Order picking in reverse is known as put away. Most of the principles which enhance or
streamline the picking process work well for put away. Principles for put away are
i) Direct put away ii) Directed put away iii) Batched and sequenced put away
iv) Interleaving
4.9.3 Pallet storage systems
i) Block stacking ii) Stacking frames iii) Single-deep selective pallet rack
iv) Double-deep rack v) Drive-in rack vi) Drive-thru-rack vii) Pallet flow rack
viii) Push-back rack
4.9.4 Pallet retrieval systems
The Most popular pallet retrieval systems are
i) Walkie stackers ii) Counterbalance lift trucks iii) Straddle trucks
iv) Side loader trucks v) Turret trucks vi) Hybrid trucks
vii) Automated storage and retrieval (ASR) machines.
4.9.5 Case picking systems
Case picking systems are organized into three categories
i) Pick face palletizing systems ii) Downstream palletizing systems iii) Direct loading
systems. (Briggs, 1978)
4.9.6 Unitizing and shipping
The unitizing and shipping activities are classified as
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i) Container optimization ii) Container loading and void fill iii) Weigh checking
vi) Automated loading v) Dock management (Briggs, 1978)
Enhanced learning may be acquired as part of regular work activity, through
training offered in-house, through reading or other forms of self-study, or through off-
site training. On-going learning occurs through participation in professional
organizations, seminars, formal courses, conferences and trade shows. Skills may be
upgraded by taking management classes through educational institutions.
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Chapter Five
Findings & Analysis
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5 Analyses
5.1 SWOT Analysis of COATS Bangladesh Limited (CBL).
SWOT is an acronym for the internal Strength and Weakness of the firm and the
environmental Opportunity and Threat facing that firm. So, if we consider CBL as a
business firm and analyse its strength, weakness, opportunity and threat the scenario
will be as follows:
Identification of SWOT
Here,
S denotes Strengths
W denotes Weaknesses
O denotes Opportunities
T denotes Threats
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Internal Factor
External Factor
Strengths Weaknesses
Total solutions under one
roof.
Single point of contact for
various services/ points
Company operates through
its experience and
stronghold of the established
network.
Strength in resources, skills
or other advantages relative
to competitors.
Strong financial resources.
Strong communication.
Specialist warehouse
expertise
Worker motivation
Power system
Costly
Management
Opportunities SO Strategy WO Strategy
Major favourable situations
Change in competitive or
regulatory circumstances
Technological changes and
improved buyer/supplier
relationship.
Developing market and growth
potential of Bangladesh.
Loosing of regulations
Removal of international trade
barriers
A market that is led by a weak
competitor.
Achieved clientele‟s
reliability by providing
quality service
Proper management
Establish power system
Correspondence
Threats ST Strategy WT Strategy
The entrance of new competitors
Global Economic Slowdown.
Slow market growth.
Cash Liquidity in market.
Technological changes and new
revised regulations price war.
New regulations.
Increased trade barriers.
Use proper information
system
Commitment
Proper distribution
Time save
Low cost
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5.2 SWOT Analysis of Organization:
Strengths:
1. Total solutions under one roof.
2. Single point of contact for various services/ points
3. Company operates through its experience and stronghold of the established
network.
4. Strength in resources, skills or other advantages relative to competitors.
5. Strong financial resources.
6. Powerful brand image and market leadership.
7. Strong relationship.
8. Ability to raise long and short term capital.
9. Specialist warehouse expertise.
10. Quality processes and procedures.
11. Strong brand/ reputation
Weaknesses:
1. Technology upgrade
2. Employee focus due to security drift.
3. Undifferentiated products & services in relation to competitors
4. Power system
5. Management
Opportunities:
1. Major favourable situations
2. Change in competitive or regulatory circumstances
3. Technological changes and improved relationship.
4. Developing market and growth potential of Bangladesh.
5. Loosing of regulations
6. Removal of international trade barriers
7. A market that is led by a weak competitor.
Threats:
1. The entrance of new competitors
2. Global Economic Slowdown.
3. Slow market growth.
4. Cash Liquidity in market.
5. Technological changes and new revised regulations price war.
6. New regulations.
7. Increased trade barriers.
8. Border clearances for transit of goods to neighbouring countries.
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5.3 Conclusion
From the above SWOT we see that CBL has many strong and weak sides
internally and externally. But it should always focus on customer satisfaction and try to be a
standard quality all over the country. CBL can adopt diversification strategy in
expanding the business into insurance company.
5.4 Prepare Action Plan
The action plan of SWOT analysis is to translate the diagnosis of the company‟s
situation into action for improving the company‟s strategy and business prospects –
The CBL uses their strengths and capabilities as cornerstones for strategy.
The CBL pursues those opportunities best suited to bank strengths and
capabilities.
The CBL correct weaknesses and deficiencies that impair pursuit of important
market opportunities or heighten vulnerability to external threats.
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5.5 Finding
Top performers are discovering methods to increase throughput and
efficiency, while keeping costs flat or lowering overall warehousing costs. Across the
board, companies that are above average warehouse performers in their industry –
classified as Best in Class companies – outstrip their average and laggard counterparts
by logging between 97% to 99% on-time complete shipments to customer request date
while others struggled to fill orders as effectively. Further, Best in Class have been
much more successful than their peers at decreasing their warehousing costs and
lowering customer order fulfilment times.
What Best in Class Do Differently
• The Best in Class point to an extensively proliferated warehouse visibility
infrastructure that allows them to share information throughout their operation and
across the company. Another respondent points to visibility as a means to
improvement. A senior vice president in supply at a large retailer indicates that
“faster information access to critical users coupled with extended shipping-
receiving hours,” led to a decrease in cycle times between 11-20%.
• The Best in Class are nearly twice as likely as Average and Laggards to
comprehensively train warehouse associates on several tasks as opposed to ad hoc
or no formal training.
• The Best in Class do not use spread sheets to run their warehouses; rather, they rely on
an automated WMS solution.
• The Best in Class are more than twice as likely to have an RFID tagging support sys-
tem versus their peers, further indicating their belief in the importance of
technology for high-performing, customer-centric warehouses.
Technology Is Driving Best in Class Performance
In addition to using a WMS, the Best in Class are also more likely than their lower-
performing peers to be using an up-to-date solution – typically only one to two versions
old – ensuring that these enterprises have access to the latest productivity features from
their WMS vendor.
The Best in Class have also invested in other types of warehouse technology that
support agility and speedy throughput. The Best in Class, typically, have invested or
plan to in-vest within 12 months in labour management capabilities, slotting, dashboard
systems, RFID, and other technologies. The industry average companies and Laggards
use these technologies to a much lower extent.
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Best in Class Training Philosophies
The Best in Class are also more likely to invest in employee cross-training. Top
perform-errs routinely train employees on a number of tasks in the warehouse, allowing
many as-societies to respond to inventory fluctuations or other issues that may arise.
Average per-formers have also done this to a smaller degree, primarily training their
employees on an ad hoc basis. Laggards more rigidly tether associates to a discreet task
within the ware-house environment.
Barriers to Improving Warehouse Productivity
Why haven‟t more organizations been able to reduce their warehousing costs and im-
prove productivity? As Figure 6 shows, the top cited barriers have to do with a lack of
sufficient technology for warehouse automation and visibility. The concern over
insufficient technology holds true for respondents across all company sizes. In addition,
nearly half of respondents say a top barrier to better warehouse performance is that
throughput improvements would require a dramatic revamping of their physical
warehouse layout. Innovators are working with systems integrators and others to devise
new ways to over-come these obstacles.
Smaller facilities of less than 25,000 square feet are even more likely than their peers to
report that their existing warehouse layout and inadequate IT infrastructure are
hindering their productivity. A quarter of the small warehousing operations
participating in the study report using spread sheet-based warehouse reporting and
management. Aberdeen believes that, across all small companies, a much higher
percentage are still using man-ual-based processes and spread sheets to run their
warehouses. Mid-size to large ware-house facilities generally use a WMS solution vs.
spread sheets, but are seeking additional extensions to improve workflow agility, labour
productivity, and throughput.
Overcoming Productivity Barriers
To overcome these barriers, fully 55% of companies indicate that capturing warehouse
metrics and activities and sharing them in real time have helped or would significantly
aid in improving their warehouse performance.
Similarly, 47% of respondents would like to or have installed an enterprise-wide
initiative to share best practices across internal warehouse operations. A small
publishing company‟s warehouse manager indicates that “through the institution of a
best practices log,” the company was able to cut its warehousing costs by between 1-
10% over the past two years.
A full 47% feel that more productivity could be squeezed from their current facility by
revising slotting and layout, while 46% believe cross training employees is a proactive
move towards productivity.
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The following are a list of actions respondents report taking to overcome their
warehouse productivity barriers.
“We will complete the implementation of a new WMS” –warehouse manager at
a small consumer packaged goods distributor
“Following our WMS implementation, we are now normalizing and continuing
to align data along with the staff training required to re-establish a new level of
standards” –warehouse manager at mid-size industrial equipment manufacturer
“We are working with consultants to redesign our warehouse layout and
implement RF technology” –senior vice president at a small distribution
enterprise
“We are investing in training and consulting expertise to leverage our WMS
solution” ” –warehouse manager at a large chemical processor
“We are visiting efficient facilities [to learn best practices], and continue to re-
quest IT support” –warehouse manager at a mid-size metals products
manufacturer
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Chapter Six
Recommendation
&
Conclusion
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6.1 Recommendation for Action
There are many things to consider when determining how to manage a
warehouse. Think about the associated tasks, the duties and the responsibilities. These
may include shipping, receiving, inventory control, storage and distributing. This report
provides best practice examples for small, midsize, and large warehouse and
distribution centre operators. To improve warehouse performance, companies should be
prioritizing:
6.1.1 Put Warehouse Safety First
Maintain a neat, clean and organized warehouse at all times to ensure
warehouse safety
Keep your warehouse floors free from water, oil, cleaning products
and other spills that may cause slips and injury.
Clear all traffic areas of cartons, plastic wrap and other debris that
may cause accidents.
Provide a warehouse safety program that fits your needs. Make certain
all warehouse employees attend this program before they begin work.
Choose a classroom or online program. Many online programs offer
archives, so you can view programs a second time or on demand.
Some companies have developed their own safety programs. If this is
the case, you may need to work with the Human Resource office to
coordinate safety training.
Mandate driver and operator training courses, along with vehicle and
equipment safety courses, for employees who will operate warehouse
equipment, such as forklifts, mechanical loaders, electric stackers, lifters
and shrink wrappers.
Verify that warehouse employees have attended the appropriate
training or received proper certifications for vehicles or equipment
they operate.
Enforce safety regulations
Ensure that management, warehouse handlers and other employees
wear hard hats, steel-toed boots, safety goggles and heavy gloves.
Make sure employees are following any other mandates. If
employees must wear hard hats in the warehouse, do not make
exceptions.
Mitigate accidents. Warehouse handlers often operate forklifts and other
heavy equipment to carry, hoist, move, load and unload merchandise.
Smaller companies may do these tasks manually with the help of hand
trucks. Regardless of the size of your operation, accidents will happen.
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Plan periodic vehicle, machinery, equipment and loading dock
examinations and maintenance in order to maintain safety and
prevent accidents.
Ensure all safety features, including lights, vehicle reverse sensors
and warning beeps, work properly.
Report all vehicle defects and equipment malfunctions. Oversee
necessary repairs and test equipment before returning the item to the
warehouse floor.
6.1.2 Manage Warehouse Employees
Interview potential employees for warehouse positions.
Be sure the appropriate supervisor participates in this process. He
will know whether the applicant possesses the required skills and
necessary experience.
Perform employee evaluations periodically.
Give praise for good performance, highlight strengths and reward
good performance and behaviour.
Identify weaknesses and bad behaviour. Make suggestions and
recommendations for immediate improvement.
Follow up with the employee to discuss the steps taken to correct or
improve areas of performance or behaviour.
6.1.3 Oversee All Warehouse Operations
Do a visual inspection of storage areas regularly.
Use only designated areas for merchandise storage. Make certain
employees have clearly marked these areas and are storing only the
specified items according to the markings.
Check pallets for damage and make sure staffs know how to load
pallets properly for stability.
Record inspection dates and any damage you find. Start the repair
process or discard items, as needed.
Meet regularly with key staff, including managers and supervisors of
warehouse inventory, storage and purchasing.
Discuss new ideas, improved procedures, equipment replacement,
budgets, staff promotions, recommendations and all other work-
related topics.
Address questions relating to damaged merchandise or to purchasing
concerns
Relating to vendors, pricing, quality or merchandise availability.
6.1.4 Review Delivery Schedules
Coordinate trucks and drivers carrying merchandise to and from your
warehouse so each function runs smoothly.
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Arrange employee schedules so there are enough handlers available to
load and unload trucks.
Assign enough merchandise checkers and receivers to each shift to
compare invoices with merchandise received and to check the condition
of the merchandise on arrival. Make sure staffs know what to do with a
damaged shipment.
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6.2 Conclusions
In this a summary of the key findings and discussion about the attained key
findings is provided. It also expresses the final conclusions which were developed on
the theoretical, practical work and the analysis part of the internee work.
The purpose of this internee work is to give an overview and to understand
deeply the concept of “Warehouse Management”, which is defined and interpreted in
theory and practice. In order to get an overview, both theoretical and practical work is
conducted. The theoretical study is conducted by carrying out a research work on
relevant literature through textbooks, scientific articles, internet etc. In the practical
work, I investigate the present state of the warehouse management and examine
whether the case companies utilize the practices that the literature points out based on
theoretical background. The practical work is implemented by working on COATS
Bangladesh Limited (Warehouse).
The present cases are facing some problems in the labour management in the
warehouses. This can be due to the lack of knowledge in managerial skills. These can
be eliminated only by giving a rigorous training for the employees in order to reduce
the human errors in the system and also manage the resources and man power
efficiently.
Even though, there are enormous numbers of technologies available in the
market, the companies are still hesitating to upgrade their warehouses due to the fear of
high initial costs which are incurred due to the up gradation. The warehouses are
playing a safe game by implementing some new technologies but not completely
switching to the modern warehousing concept which is also called the paperless system.
They are carrying on with the traditional warehousing concepts but at the same time
improving some areas where there is a need to do so.
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References
Organizational publications:
Annual Report of COATS Bangladesh Limited
Internet sources:
www.coats.com
www.coats.com.bd
www.bdjob.com
www.protomalojob.com
http://www.dhldiscoverlogistics.com/cms/en/course/management/logistical_net_
plan/degree.jsp
http://en.wikipedia.org/wiki/Logistics
Articles:
Axel Johnson AB; Axel Johnson AB and our group companies, 2007.
Aitken.j.Christopher,j. Aitken.,. towill. D ,2001, “understanding, implementing and
exploiting agility and leanness”, paper presented at UK Symposium on supply chain
alignment , liver pool university, Liverpool.
Cooper, J.C, Davis. Matthew, 1984; Why have a warehouse?, MCB UP Ltd, Volume 12,
Issue 5, Page 66 – 68.
Gunasekaran, H.B. Marri, F. Menci., 1999 Improving the effectiveness of warehousing
operations: a case study, industrial Management & Data Systems, MCB UP Ltd, Volume ,
99, Issue 8, Page 328- 339.