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STEPS TO IMPROVE EFFICIENCY OF 3PL OPERATIONS

Companies keep pace with increased volumevolumes, faster customer responsiveness andthinner margins-these are the new rules of day

to day business operation.

Customer are demanding efficient and accurate

flow of inventory and data

Areas to be taken care of:

Overall operations by improved data accuracy,increased order efficiency, and reduce operating

costs.

1) How many lost hours of productivitycan be attributed to manual and

duplicate data entry?

2) How much money can be saved fromreduced clerical work?

3) How much time is lost by customerservice trying to determine the stocklevel of a particular inventory item?

4) What losses in productivity are youexperience due to lost or missing

items?

5) Do you have to rely on outdated stockreports that mispresent the true

inventory levels?

Benefits

1) Inventory Visibility2) Data Entry3) Soft Saving: Increase employee moral

by enriching job opportunities

Increase the number of satisfied

customers due to faster response and

improved accuracy of shipments.

4) Optimized Picking: With verificationof each item

5) Inventory Cycle Counts6) Location Control: Location control

ensure that user are able to locate any

items in their warehouse, and eliminates

Lost and/or missing inventory, thus

providing higher efficiency and faster

customer response.

PROCESS OF IMPLEMENTATION:

Step One: Assess Current OperatingCharacteristics

Review the layout, ABC frequency class( the

class indicates the speed of movement of the

product, where A is the fastest, B the next

fastest and so on) and describe the data flow

I the warehouse.

Step two: Recognize a need which ofthese functions does your warehouseneeds?

1) Receiving2) Put away3) Serial Number tracking4) Order processing5) Cross docking6) Replenishment7) Order Picking8) Shipping9) Multiple warehouse10)Cycle counting11)Documents/Reports12)Labor monitoring13)Future growth of system


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Step Three: To get the sense of thevolume of receipts, put away and pick

up

1) Daily work details2) Distribution of orders processed per

month

3) Units shipped per month4) Unit storage profiles

Step Four: Analysis Flow ofinformation

1) Receiving2) Storage location management3) Picking4) Special customer processing

requirement

5) Order completion6) Shipping document7) Operation of Warehouse with Supplychain

The supply chain cycles served by any

warehouse follow a logical and well-established

patterns, beginning with the a purchase order

received by the manufacturing, followed by an

advance shipping notice from the

manufacturing to the warehouse and swinging

in to high gear with the arrival of the truck at

the warehouse. There, the merchandise is

received, logged in, unloaded, staged on the

dock and put away.

On the outgoing side, the flow reverses,

triggered by the receipt of an order that is

allocated, verified and place in the traffic

pattern. The order is picked, staged, loaded and

shipped. The trailer is then dispatched to the

point of delivery specified by the consignee. Tn

between, a variety of activities might take place

that relate to customer needs for fulfillment

and special handling.

3PL:

It is clear that 3pl operators require a tool set

different from those used by the customers

whose problems they are charged to solve. It

quickly became apparent that solutions

developed for single-client, single-facility

logistics operations were not necessarily

feasible in situations involving multiple

inventory owners with multiple sets of

requirements for multiple activities occurring

concurrently at one or more sites for one thing,

efficiencies gained impose rigidities thatvirtually can immobilize 3pl operations, which

by their nature must be extremely flexible.

Thus, if the 3pl provider is to serve the

growing and changing needs of multiple

inventory owners from a single software

platform, it almost certainly must look towards

solutions built from the concept level with this

purpose as its foundation. Single-site, single-

client solutions that have been enhanced withadd-ons intended to deal with 3pl conditions

too often are simply not robust enough to cope

with the inventory volumes and the large

number of variables that are routine fare of 3pl

provider operation.


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Capabilities of 3PL with Daikin:

Portal access to process data such asinventory and order status, receipts andshipments between the 3PL and its

customers and confignees.

The ability to receive and edit ordersreliably and cost-effective under all

methods o

delivery.

Concurrent support for all businessprocess of all customers, shippers and

consignees.

The transfer of inventory title betweencustomers

without

physical

movement of

the product.

Loadconsolidation

of freight for

delivery tomultiple

customers at

common or

proximate

locations.

Automated billing and functionality ina single software platform capable of

serving multiple customers in multiple

facilities without extensive

customization or customer-by-customer integration.

As we analyze and compare system capabilities,

it is important to examine some of the

fundamental activities that are routinely

involved in your operations in order to

determine how well each solution deals with

them.

How well does the system calculate andreport deferred handling?

How does it handle internal transfers,also known as transfer in storage or

transfer of title? A system should have a

one-step transfer process to change the

inventory ownership

Title, including outbound and inboundsupporting paper work(i.e. bill of lading

and warehouse receipt ),transfer the

proper renewal date information and

apply the appropriate charges. Fulfillment, also known as broker

management or vendor-

managed inventory?

How does it handle

requests for shipment of

inventory for multiple

customers on the same

order?

How does ithandle two physicalinventories concurrently,

with one physical using

radio frequency for one

client and another

physical using a paper-based method?

How does it handle different sets ofdocument for each client, including the

same documents but in a different

format ? For example, one customermight use the VICS bill of lading format

while others might use their own

formats on their own preprinted stock.

How will the solution deal with thevarying EDI requirements of

customers?