Swot analysis of the logistic at haier pakistan


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In a series of studies a small project was handover to me to study the management, database, warehouses, stores and make SWOT Analysis

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Swot analysis of the logistic at haier pakistan

  1. 1. SWOT ANALYSIS OF LOGISTICS AT HNR Presented to JAWAD KHAN (Logistics Manager HNR) Analysis By Hashim Khan Institute of Management Studies University of Peshawar
  2. 2. SWOT analysis of Logistics at HNR Page 1 SWOT analysis of Logistics at HNR Introduction Haier is a leading manufacturer of a wide range of world-class home appliances. The company achievements are a result of the spirit of excellence and devotion that pervades throughout the organization. To meet the market demand and ensure on time delivery Haier has its own logistics department which consist of HPK and HNR. HPK work outside the factory and deals with the market and HNR works in the premises of factory and directly receives finished products from production department. HPK receives orders from all over Pakistan and they make a demand order to HNR. HNR only provide products to HPK. Containers are being loaded day and night at HNR which are further send to HPK and is distributed across Pakistan by HPK. HNR having four warehouses in which three are product wise that are REF, Washing Machine, and AC and the other is a big general warehouse. These warehouses perform operation under the supervision and authority of Logistics department at HNR. These warehouses are directly connected with production halls and receives finished products throughout the day. Finished units are counted and ensured at warehouses and a daily production report is send to different departments. The stock remains with the logistics department. HOD receives a stock transfer order which is further communicated with particular warehouse. An officer in particular warehouse execute the plan as per requirement and products are loaded in containers and these product are scanned and data is entered into a database software known as warehouse management system (WMS). Once all units are scanned they are dispatched. Although logistics department is performing well in an effective manner it also faces problems, it has some pros and cons. For that purpose a SWOT analysis is done to analyze the Internal and External environment and to analyze the positive and negative aspects of the logistics at HNR.
  3. 3. SWOT analysis of Logistics at HNR Page 2
  4. 4. SWOT analysis of Logistics at HNR Page 3 Strengths Separate warehouses Separate warehouses for same range of products i.e. Refrigerator, DF, and Washing Machine Ease of Receiving Each warehouse is directly connected with production so it’s easy and cost less time to receive finalized products Barcode Scanner Barcode scanner enables to make a database of products that is communicated throughout the country. Parking Space Even more space for containers at the same time Database System Centralized database system give flexibility and ease to keep and track record of each and every product that have been shipped Accuracy The record of the data is accurate and exact to the requirement Experienced staff and skilled labor The department is having skilled labors and experienced staff who can perform multi tasks in different situations Basic Resources Logistics dept. have fulfilled the basic resources needed for operations at official level Smooth Communication Communication is very smooth among logistics at Haier N Ruba, There is telephone available at every disk and all the employees have access to the internet Good Management Relationship Management is successful to keep employee Motivated by have strong coordination and Good organizational relationships
  5. 5. SWOT analysis of Logistics at HNR Page 4 Weaknesses Space shortage The warehouse have space shortage in case of low sales. It has the inability to store the required products Shifting of finished product to other warehouse Incur of extra cost by shifting products to other warehouse and it also cause a gap of supervision on those products Outdated barcode scanner and late delivery The barcode scanner is outdated and sometime it stop functioning normally which stop operations and increase time cost. The bar code scanner cause late delivery and container remains in the premises of factory for long time Non-availability of normal working lifters There are only two lifters, one is not working and the other make problems most of the time The non-availability of good working lifter cause manual handling of the products and also increase manual work, labor cost and time cost Low efficiency and effectiveness Most of the time efficiency and affectivity is not achieved due to lack of resources necessary for warehouse operation Slow process due to Complexity of models, colors of Products Process are slow due to receiving of product in different models, sizes and colors in mix form that is difficult in arrangement
  6. 6. SWOT analysis of Logistics at HNR Page 5 Opportunities Improved Technology Technology has improved it need to be implemented in logistics at HNR for higher productivity Bring new computer systems, lifters and latest Bar code scanner will ultimately increase efficiency and effectiveness Employees Productivity Productivity of management and labors can be increased in terms of trainings, visits and workshop outside the organization Increasing demand The population and demand in the market are simultaneously increasing so the logistics have more opportunities and even more challenges. The logistics have to respond to a big scale Seasonal variations, new fashion, trends and new tastes has brought new demand for a customized product and logistics can positively give response in these situation Distribution Channels A variety of new distribution channels are available for local and regional geographic locations that can reduce transportation costs Favorable Political Environment Current political environment is more favorable and smooth so logistics department can perform more efficiently
  7. 7. SWOT analysis of Logistics at HNR Page 6 Threats Irregular Production in Ref Color, model, and size variation in production cause complexity in warehouse Mislead due to semi-finished units Semi-finished units in production in same warehouse creates problem and sometime that incomplete unit is shipped and sold to customer Dealers Dissatisfaction Late delivery may cause dealers dissatisfaction and they may be unhappy and uncomfortable due to customer demand. HNR may lag behind its competitors if on time delivery is not ensured Updating of Technical and Mechanical Recourses If latest technical and mechanical technology is not adopted by Warehouse system it company will lose reputation in market due to late delivery, dealers dissatisfaction and customer demand Removal of Obstacles Obstacles like manual work, non-functioning of barcode scanner, non-availability of normal lifter might cause bigger costs, improper handling, and labor dissatisfaction in logistics at HNR Govt Regulations Instability of political system and increasing of tax and fuel prices are bigger threats so logistics must ensure to utilize all the available space in containers to overcome these regulations Demand Shifts Demand shifts in market increase stock turnover days and that cause irregularity logistics. Seasonal variations The End