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Vishweshwar Education Society’s
Indira Institute of Business Management
PROJECT REPORT
ON
3RD PARTY LOGISTICS WAREHOUSE MANAGEMENT
SUBMITTED TO
INDIRA INSTITUTE OF BUSINESS MANAGEMENT, NAVI
MUMBAI
BY
PRIYA ARUN BAMBALE
Roll No. 2016054
Batch No. 2016-2018
IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY
OF MUMBAI
AUGUST, 2017
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DECLARATION
I, Mr./Ms. Priya Arun Bambale,
Hereby declare that this project report is the record of authentic work
carried outby me during the period from 8th May 2017 to 8th July 2017 and
has not been submitted to any other University or Institute for the award of
any degree / diplomaetc.
Signature
Name of the student
Date
3
CERTIFICATE
This is to certify that Mr. / Ms. Priya Arun Bambale, of
Indira Institute of Business Management has successfully completed
the project work titled 3PL Warehouse management in partial
fulfillment of requirement for the completion MMS as prescribed by
the University of Mumbai.
This project report is the record of authentic work carried
out by him / her during the period from 8th
May 2017 to 8th
July 2017.
He / She has worked under my guidance.
Signature
Name
Project Guide (Internal)
Date :
Counter signed by
Signature
Name
Director
Date :
4
ACKNOWLEDGEMENT
I am glad to present the documentation of the project on “3rd
party logistics
warehouse management”.
Project developments require commitment from all the people who are
involved in it. And would I like to say thanks all the people extend their supportto
us.
We would like to thanks directors of “Origin Logistics Private Limited”
who help us in this project by giving all required information for the project. I am
really thanked to him for all his time he had devoted to us.
At every outset I take opportunity to heartily thanks to our Project guide Mr.
Raj Mukundan and all our teacher staff for their help in initial stage of the project
Finally, I would like to express our heartfelt thanks and gratitude to all those
who have directly or indirectly helped us in this project work.
Ms. Priya Bambale
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EXECLUTIVE SUMMERY
The project has been a great learning for me at the same time it gave me
enough scopeto implement my analytical ability. This project was undertaken with
the sole objective to study 3PL WAREHOUSING, and the associated with inbound
and outbound process. Under this project the methodology adopted was focus
discussionand close observation through “Origin Logistics Private Limited” as
well as in-house study and data collected from various primary and secondary
sources. One of the major segments contributing to a rapidly growing logistics
industry is the warehouse business. The challenges facing warehouse management
today has been greater than before due to globalization, shorter lead time, high
customer service level and changing market trends. As results, the role of
warehouse has changed just from storing and issuing of goods to important
strategic roles.
Todaywarehouse must operate with high efficiency to meet the various
requirements in logistics system. As results, many companies are investing in
information technology (IT) tools such as warehouse management system (WMS),
bar code, RFID(Radio-Frequency Identification) and EDI (Electronic Data
Interchanged) in their operations to ensure the information flow is smooth to
collect plan the warehouse operation.
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TABLE OF CONTENTS
Chapter No. Title Page No.
1 Introduction 10
1.1 Relevance of the Project 11
1.2 Introduction of the Topic 11
1.3 Objectives of the Study 16
1.4 Scope of the Study 17
1.5 Limitations of the Study 19
2. Profile ofthe Organization 20
2.1 History & General Information 21
2.2 Company Profile 23
2.3 Competitors Analysis 34
3. Review ofLiterature 42
3.1 Meaning and Concept of the Topic 43
3.2 Basic theories of the Topic 45
3.3 Review of Research on the selected Topic 56
4. ResearchMethodology 61
4.1 Method of Study 62
4.2 A Primary data 62
4.2 B Secondary data 63
4.3 Method of data collection 63
4.4 Area of research 63
5 Data ProcessingandAnalysis 64
6 Findings 70
7 Recommendations 72
8 Conclusions 74
9 Bibliography 76
7
List of Tables
Chapter No. Title PageNo.
5.
Details of employees
Problems in warehouse
Goods handling facility
Fire fighting and other safety facility
Customer satisfaction
65
66
67
68
69
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List of Graphs
Chapter No. Title PageNo.
5.
Details of employees
Problems in warehouse
Goods handling facility
Fire fighting and other safety facility
Customer satisfaction
65
66
67
68
69
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List of Chart
Chapter No Title Page No.
1. Warehouse management process 63
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Chapter I
Introduction
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1. Introduction
1.1Relevant of the project
Summer internship provides an opportunity to test one`s interest in particular field or
sector for career development. Summer internship gives exposure to the students to the corporate
world. Summer internship project helps the research i.e., student to understand the knowledge,
skill about a particular sector and trains them to transfer the acquired knowledge in the form of
report.
1.2 Introduction of topic
What is warehousing?
A warehouse is describes a facility serving the purpose of storing goods. In ecommerce,
warehouse are mainly used to keep items on stock to make sure the short delivery times needed
can be fulfilled. The warehouse processes follow principle of inbound-storage-outbound
processes: stuff comes in, is stored, and goes out again.
Warehouse processes:
a. Inbound
The inbound process in its simplest form is just taking an item and placing it in storage.
Inbound processes are the processes that have to get articles inside your warehouse. Think of
incoming goods inspection, returned goods inspection, unpacking and (re)labeling. This process
is very important because when something goes wrong here, you might have incorrect stock
information and you might have to disappoint a customer. Also, when you have to “fix” any
problem later in the warehouse process, it will be more costly in terms of money or time.
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Steps involved in inbound:
Inspection:
Incoming goods are inspected before they may enter the storage. You will want to check if
your supplier has sent you the right items and also the right amount. Besides that, you may need
to check quality or possible damage. When an item is good enough to sell to your demanding
customer, you can put it in storage.
Returns are basically the same as inspection of items you received from supplier. Notable
difference is that you will want a 100% check.
Repackaging:
In some cases especially when you have an automated system, you have to repackage the
incoming items before you can store them. Think of putting them in standardized boxes or crates.
Labeling:
Not all suppliers will label their items with the (bar) codes that you need in your process. If
that is the case, you will have to add those codes yourself. This can be just as article code (like
the EAN or UPC codes) or an item code, where each item has its own unique code.
Storage:
The storage process decides where and how your items will be stored. Different articles
have different needs for storage. Articles that are popular need to be stored in a convenient
location. After inspection is done, you or Warehouse Management (WMS) will decide where the
items need to be placed. Most ecommerce warehouses will have different storage types, based on
the popularity or other properties of the item.
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Replenishment:
Many warehouses are divided in bulk storage and pick storage. Bulk is where large
amount of items are stored, often on pallets. Picking is done from locations that are easier
reached by a person. The process to fill the picking location from bulk is called “replenishment”.
This is done before or during the order picking process, to make sure all the picking locations are
filled and the picking process is not slowed down.
Storage Methods:
Pallet Racking
Pallets are stored in pallet racking, using a forklift truck to put the pallets in and take them
out. Pallet racks are often in a warehouse with a high ceiling, so several layers can be stored.
Usually, this kind of storage is used as bulk storage, from which replenishment to other locations
is done.
Shelves
You would use shelves to store a limited amount of items. Shelves are usually filled from
replenishment, not directly from any inbound process. Shelves can be filled and emptied by
hand. Advantage is that almost any product can be placed here, only limited by size, A dis-
advantage is the speed of which a pick can be done.
Flow-racks
Flow-racks are used for higher throughput items. They are filled from one side and the
items flow (roll) to the other side. An advantage is that inbound/replenishment and outbound
processes are physically divided, creating the possibility to do it simultaneously. An important
disadvantage is the strict requirement on size (you cannot put anything anywhere). Flow-racks
are often combined with pick-to-light to speed up the picking even more.
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b. Outbound
The outbound process is everything that is needed to fulfill a customer`s order. Outbound
processes include the works needed to get items out of you warehouse. At the very least this
includes order picking, but also packing, shipping, some value-added services you may offer our
customers.
Order picking:
Methods
Order picking comes in many different forms and use a lot of different methods. There are
several processes and methods when picking orders:
 Single-order picking: you pick all items for a single order. You cannot mix orders, but
when your orders are small, this can be inefficient. For large orders, single-order picking
might be the right choice.
 Batch picking: you pick items for multiple orders at once. This results in a higher
efficiency, but it introduces the risk of mixing orders. You can use technology to lower
that risk.
 Zone picking: you collect all items within a certain area (zone) of your warehouse.
 Consolidation: merging several pick orders to form a client order, this is usually needed
when using zone picking.
In a warehouse of some size, each of these methods will be used, often combined.
Technology
A lot of technology exists to speed up order picking or lower the risk of errors.
 Barcode scanning: this is a low-entry technology, which enables the picker to check any
actions he has to do or make the data entry easier. It doesn`t necessarily speed up the
picking process.
 Conveyor belts: a little more expensive, it can decrease the amount of walking orders
pickers have to do.
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 Goods-to-man: often highly automated, this technology moves the goods, and lets the
order picker stay in one spot.
Added value:
This is anything you do to increases the value of the items you are shipping. You could for
instance offer you customer possibility to personalize the item or do some basic configuration on
electronics. Value added services (VAS) is done after the item is picked, but before it is packed.
Packing:
After the order has been picked, it has to be packed and made ready for shipping. This includes
putting the item(s) in a box and applying the necessary labels to it. In some cases it is possible to
this while picking. In that case, the order is picked directly into the box in which it will be
shipped; this is called pick-and-pack.
Administration:
To make sure everything you do in a warehouse is registered and you can find the stock
quickly, you will have to do some kind of administration. In its simplest form, this is a piece of
paper where you write down where you put what. This of course can become tedious quickly and
many people resort to a spreadsheet application such as Excel to do it. That has advantage you
can quickly find things, but you can make errors quite easily.
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1.3 Objective of the study
The study of the topic has been undertaken with a number of objectives. Followings are
the objectives of the study:
 The main objective of this project report is to get practical knowledge of warehouse
process and functions.
 To understand the concept of 3rd party logistics, various operation s in 3rd party
logistics.
 Cost and time savings for the client.
 To study the warehousing, inventory management and damage control.
 To understand 3PL’s warehouse management use JIT as a strategy.
 Time management.
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1.4 Scope of study
Scope of Warehouse Management
The place where raw material and/or finished goods are stored is referred to as warehouse
or store. Generally, warehouse is structure or building design keeping in mind raw material and
finished goods it is going to store. Therefore, warehouse management should be able to:
 Receive the purchase goods and entered upon the stock register.
 Inventory Accounting of raw material, work-in-progress or finished goods.
 Preservation of the inventory
 Ability to access goods whenever called upon.
 Appropriate record keeping through coding as to preserve goods and reduce
obsolescence.
 Proper stocking of goods as ensure smooth handling.
If above objectives are met, warehouse management significantly increases the overall
efficiency of the production and organization. A robust warehouse management would ensure
that:
 A smooth flow of production
 Appropriate layout management to reduce material handling and equipment handling
 Reduce to wastage as well as spoilage
 Eliminate the possibility of theft and damage
 Ensure preservation of environment and reduce pollution.
 Encourage cost reduction and driving efficiency
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Warehouse Design
Warehouse design is art in which goods and material can be stored as to reduce wastage,
cost of carrying and increase safety. The various factors considered for warehouse design are as
follows:
 Easy material handling including receipt, dispatch and storage.
 Easy supervision of materials as well as personnel
 Reduce and control obsolescence of the goods by following appropriate method.
 Optimum utilization of space
Storage Location
There are three general ways in which goods are stocked as to reduce material handling
and increase prompt access. They are as follows:
 Fixed position in which specific area is located where designated goods are stored. If the
designated goods are not there, that space will remain empty. Fixed position encourages
easy and traceable access to the goods.
 Random Storage in which goods are stored where ever space is available. Here maximum
utilization of the space is achieved.
 Categorized fixed location in which particular set of products are placed randomly in the
allotted space.
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1.5 Limitations of study
 Increased competition
 Out of stock
 Deadline with expired product as well as order
 Planning and decision making
 Damages
 Transportation cost
 Data updating
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Chapter II
Profile of Organization
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2. Profile of Organization
2.1 History & General Information
Origin Logistics Private Limited is a private in corporate on 23 July 2007. It is classified
as Non-government company & is registered at Registrar of Companies, Mumbai. Its authorized
share capital is Rs. 6,000,000 & its paid up capital is Rs. 4,000,000.
Directors of Origin Logistics Private Limited are Raouf Ansari, Sudhir Charanjit Sikka.
Origin Logistics Private Limited's Corporate Identification Number is (CIN)
U63011MH2007PTC172562 & its registration number is 172562. Its e-mail address is
sudhir.sikka@originlogistics.co.in & its registered address Indian Corporation, Building No.181,
Dapode, Bhiwandi, Thane, Maharashtra, 421302.
Origin Logistics Private Limited is involved in Transport, Storage & Communication
activity. Current status of Origin Logistics Private Limited is Active.
Origin logistics is located in Thane two area Dapode, Bhiwandi & Vadpe, Bhiwandi.
Role of Origin logistics private ltd. is 3PL i.e., 3rd party logistics. They are provided the
warehouse services.
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 areas of cities, towns & villages.
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Origin logistics private ltd. Dapode, Bhiwandi work on 3 project:-
1. REHAU
2. RELIANCE
3. YELLOW SPARKS INTERNATIONAL
This all 2 customer are used the warehouse services of Origin Logistics Private Limited's
for supply chain management. In supply chain management the works are distributed in two type
i.e., floor work & system work.
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2.2 Company profile
ORGANIZATION OWERVIWE
NAME: ORIGIN LOGISTICS PRIVATELIMITED
ADDRESS: INDIAN CORPOARATION, BUILDING
NO.181, DAPODE, BHIWANDI, THANE,
MAHARASHTRA, 421302.
CIN: U6311MH2007PTC172562
COMPANYSTATUS: ACTIVE
ROC: ROC-MUMBAI
REGISTRATIONNUMBER: 172562
COMPANYCATEGORY: COMPANY LIMITTED BY SHARES
COMPANYSUB CAREGORY: NON-GOVT COMPANY
CLASS OF COMPANY: PRIVATE
DATE OF INCORPORATION: 23 JULLY, 2007
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1. REHAU POLYMERS PRIVATE LIMITED
ORGANIZATION OWERVIWE
Headquarters: Muri bei Bern, Switzerland
C.E.O.: Rainer Schulz (Apr. 2010-)
Revenue: 2.8 billion EUR
Founded: 1948
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Rehau Polymers Pvt. Ltd – Mumbai
About Rehau: 1948 Founded in the Bavarian town Rehau. Three employees, one extruder.
Initial products included shoe welting, garden hoses and automotive components. Expertise and
innovative spirit have made REHAU a leading systems and service provider for polymer-based
solutions in construction, automotive and industry.
Philosophy: REHAU has always sought to create new formulations that expand the
application of polymer materials. Our approach: to replace conventional materials with more
capable polymers and to create system solutions that generate added value for our customers.
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Corporate Citizenship: As a global company and a responsible employer, REHAU is
committed to causes beyond our own business activities. Around the world, we champion
ecological, economic, social and cultural concerns.
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Rehau is customer of Origin logistics private ltd. from 10 year. 3000 sq. ft. area of Origin
logistics private ltd. used for storage of Rehau products.
Rehau products:-
 Furniture related:- Edge-band
 Interior item:- supporting bar
 Clinbor
 Laminate sheet
 Crystal sheet
Edge – band: is used to cover the exposed sides of materials such as plywood.
Supporting bar: It is used as interior-item.
Laminate sheet: used in many applications that need weather-proof, impact resistance sheet
material.
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2. RELIANCE
Under the Reliance there are 2 project are working i.Reliance footprint
ii.Reliane hamleys
i. Reliance footprint
Reliance Footprint is a leading specially family footware retail chain that caters to the
footware needs of the entire family. Reliance Footprints offers widest range of international,
domestic and Reliance owned brands across men`s footwear, womwns footwear, kids footwears,
handbags, bagpacks, liggage, socks, belts, wallets and shoe care products.
At Reliance Footprint, we believe in the quality of our products and service which is the
sole reason for our success. Be it indoor, outdoor, formals, casuals, sports, parties, ethnic or
occasional, we offer the best in-trend fashion footwear and accessories for all age groups.
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Steve Madden
Steve Madden is an iconic footwear brand form New York. Steve Madden designs,
sources and markets fasion-forewords footwear ans accessories for woents, man and
children.Steve Madden brand represents a lifestyle. Inspired by rock and roll, fused with a jolt of
sex appeal and urban edg, Madden continues to create design that are innovated, fun, sometimes
wild and always spot-on-chic. In the last twenty years, the company has made significant and
groundbreaking strides in explanded collections, categories, licensing agreements and
acquisitions. Steves Madden has entered India through a long term license aggeriment with
Reliance Brand Limited.Through this association, Steve Madden products will be available
through exclusive mono-brand stores and premium department stores in all major cities across
India. Positioned as bridge between hi-street and luxury, the brand will offer a cutting-edge range
of fasion forward, of-the-movement designs across footwear and a variety of accessories. The
stores will also offer Madden Girl, a fashionable line for younger girls who wish to make a
statement. In addition to marketing products under its owned brands includingSteve Madden,
Steven by Steve Madden, Madden Girl, Betsey Johnson, Betseyville and Big Buddha, the
Company is the licensee of various brands including Olsenboye for footwear, handbags and
belts, Elizabeth and James, l.e.i, and Glo footwear and Daisy Fuentes for handbags
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ii. Reliane hamleys
Reliance Retail is eyeing the toy market now. It has entered into an exclusive pan-India
franchise with UK’s 248-year-old toy retailer, Hamleys.
As many as 20 Hamleys standalone stores will be set up by 2016. “By 2016, we will have
invested about Rs 125 crore for this venture,” said Bijou Kurien, president and chief executive
(lifestyle), Reliance Retail. “The flagship stores of Mumbai and Delhi will have a size of 25,000
to 30,000 sq feet, while regional stores will be of 10,000 to 15,000 sq feet.”
The stores, which will have products in the price range of Rs 5 to Rs 20000, will open
beginning April 2009. They would stock a wide range of domestic and international brands
including private labels from Hamleys.
While Reliance Retail will make all the financial investments, Hamleys will add value
through design assistance, training as well as marketing and promotion activites. The business
will have a separate team, which will be led by CEO Sudhir Pai.
The stores will have special spaces where children’s birthday parties or other get-togethers
could be celebrated. Paul A Currie, trading director, Hamleys said, “Some dedicated staff within
our stores will demonstrate how the toys work in order to give the consumers a better
experience.”
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Currie stressed that the toys would not be harmful in any way for the children. “We will
have all quality checks in place,” he said. In view of the price-sensitive nature of the Indian
market, said Kurien, great care would be given to the pricing strategy, .
The value of the Indian toys and games market is estimated at Rs 2500 crore. Of this, the
organized market is about Rs 500 crore. Hamleys follows a franchise strategy for various
markets that it expands into.
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3. YELLOW SPARKS INTERNATIONAL
ORGANIZATION OWERVIW
Nature of business: Manufacturer
Company CEO: Gautam Dalal
Totalno, of employees: Up to 10 pepole
Year of establishment: 2013
Annual turnover: Rs. 1 – 2 Crore
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About Yellow Sparks International:
Yellow Sparks International is established in Jan 2013 on the foundation of two core
elements i.e., Safety & Quality. We bring you, an exciting range of water bottles and lunch boxes
specially designed for children keeping in mind their favourite heroes. Our products are carefully
selected and undoubtedly robust. Utmost care has been taken when it come to delivering quality,
ensuring that our products are BPA free, Food Grad, microwave and dishwasher used enabled.
We, at Yellow Sparks International, continually strive to set a benchmark of impeccable service
to customers and deliver quality and safety in every products, and that`s what our purpose in
since our inception.Yellow Spark International manufacture the kids products like insulated
bottles / steel bottles, pencil box, pencil pouches, lunch box, etc.
Productof Yellow Sparks International:
 Insulated bottle / steel bottle
 Pencil box
 Pencil pounce
 Lunch box
Types of customer:-
Yellow Spark International gets order from e-mail. Three types of customer:-
1. Online: School card, YoScholar, Flipkart etc.
2. L. E. S. (large form store): Malls, etc.
3. G.N. (general store): Retailer.
Online orders & L.E.S. orders are get in proper purchase order format by e-mail. But
L.E.S. purchase order have specific discount + V.A.T. are given by customer as well as purchase
order date & expiry date also given by customer. The purchase orders which get from the e-mail
are punch through the E.A.N. (European Article Number) of the products.
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2.3 Competitor analysis
Robinsons Cargo and Logistics Pvt. Ltd
Robinsons Cargo and Logistics Pvt. Ltd is one of the leaders in providing air, sea and logistic
services since 1954.
Our vision is to be “India’s No 1. Cargo and Logistics Company by 2020 – with continued
values, integrity and commitment to deliver the highest quality of service.
Traditionally with the best business practices, time defined products, customer orientation
and efficient supply chain management, Robinsons remains committed with a team of 600+
employees in over 45 warehouse locations and 18 branch offices across the country.
Robinsons is an ISO 9001:2008 certified company and is also accredited with IATA MTO
& FIATA certifications. With their headquarters based in Mumbai and offices across all major
cities in India, Robinsons is affiliated to over 110 international logistics providers through the
WACO network (World Air Cargo Organization). The service offerings of the company
encompass efficient processes, making Robinsons an end to end logistics service provider.
Robinsons is a IATA/FIATA certified company offering supply chain solutions through
our affiliation with over 110 international logistics providers through the World Air Cargo
Organization (WACO) network. We have own Custom House Agent (CHA /Customs Broker)
licence to facilitate customs clearance.
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Indo Arya
1974, that’s when it all began, nearly four decades ago, Arya’s Central Transport of India
Pvt. Ltd. with a mission to cater to the complex transportation needs of the Indian Industries,
began a story that is still being written today.
Now we are known as Indo Arya and have become a leading integrated logistics service
provider that is equipped to give tailor made solutions to the varied needs of clients combining
all three modes of transportation – Air, Surface and Sea. With an acknowledged high quality
network, extensive coverage and persistent trust, IndoArya endeavors to maintain highest
standards and achieve total satisfaction of its customers.
Now we are 285 offices across the length and breadth of the working with a dedicated
work force of more than 1800 people.
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DB Schenker opens logistics centre in Bhiwandi, Mumbai, India
Schenker India, a part of DB Schenker, the transport and logistics division, has embarked
on an aggressive growth strategy and opens its second largest warehouse in India.
The company has opened its biggest warehouse in India at Bhiwandi, Thne. The 172,841
square feet facility has a staff of around 60 people with state-of-the-art warehousing operations
for palletised and non-palletised cargo to the city and nearby areas.
DB Schenker says its customers in the western region of India will now be served with a
shorter response time, availability of products and seamless last mile deliveries to the
destinations. Strategically located off National Highway No. 3 (Mumbai-Nashik Highway), the
logistics centre features uninterrupted power back- up, advanced warehousing management and
distribution system; enabling convenient end-to-end logistics solutions and value-added
services.×
The new warehouse management system facilitates customers with analysis of product
supply, forecast and demand fulfillment, real-time data input, interface capabilities, web order
placing, and many other customized functions ensuring a better visibility through the supply
chain process.
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KD Supply Chain Solutions Pvt. Ltd.
KD Supply Chain Solutions Pvt. Ltd. is a leading end-to-end supply chain management
(SCM) solutions provider in India. We offer comprehensive services for warehouse
management, integrated logistics, freight forwarding, etc. Since our humble beginnings in the
1990s, we have grown continuously and created a significant presence across India with a very
strong network in the western and northern regions.
Our growth is fuelled by our passion. Our clients trust us for delivering efficient and
effective supply chain services. From transportation to warehousing and inventory management
to other value-added services, the company is equipped to cater to clients across sectors. The
organization also efficiently manages and supports customized ERP systems. We have set up
integrated logistics parks in strategic locations across the country, allowing us to cater to our
clients’ business requirements better. We take pride in the fact that our clients consider us a
partner of choice for integrated logistics solutions.
38
Mahindra Logistics
Mahindra Logistics was founded as a strategic initiative to enhance focus on logistics
services to both internal and external customers.
Mahindra's complex supply chain needs, including inbound and outbound logistics, inter-
plant movement, warehousing, linefeed, freight forwarding and value added services among
other solutions were taken care of, by MLL.
Today, we serve over 200 large corporate clients across various industries and operating
verticals.
Brand Philosophy - RISE
We aim to drive positive changes in the lives of all our stakeholders and in the communities in
the three most innovative ways:
 Challenging Conventional Thinking: Be it our thoughts or our actions, we accept no
limits. We believe in challenging the conventional beliefs and Rise above them.
 Innovative Use of Our Resources: In our attempt to Rise, we seek to use our resources
in the most innovative manner. This, we believe, will drive us forward.
 Enabling People to Rise: We believe in making a positive change in our stakeholder’s
lives. Be it the employees, partners or customers, our actions and their outcomes will
always enable them to Rise in their lives.
Simply put, Logistics is the business of managing, transporting and delivering goods!
At Mahindra Logistics Limited, we realize this very well. We are determined to create a logistics
system that is unique in nature and robust in its infrastructure, yet flexible enough to suit the
needs and demands of our customers.
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Mahindra Logistics aims to rise in all its initiatives with unique solutions to serve good
warehousing, transporting and to people transport needs.
Therefore, our Manifesto – CORE is
 It is the place where we belong.
 We do all it takes to keep your business moving.
 We are at the core of on time deliveries and optimized assembly lines.
 We are at the core of complex supply chains.
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Delhivery Private Limited (Bhiwandi Gateway)
The digital supply chain opportunity in India is expected to be larger than $100 billion in
the next five years. With a maturing Indian digital ecosystem coupled with faster technology
adoption we expect Indian businesses to fundamentally alter the manner in which they transact.
To cater to this increase in demand, we are looking for partners to help meaningfully extend
Delhivery's network and capabilities in warehousing, transportation and technology.
We currently cover over 9000+ pincodes across 800+ cities. As India's largest digital
fulfillment company having processed over 150M orders to date, we will be glad to partner with
last mile delivery companies, fleet owners, sellers, warehouse owners and technology companies
who share our vision of fulfilling India's online consumption demand.
Benefits
 Become a part of India's largest digital fulfillment platform, Delhivery
 Improve utilization of your existing assets or start a new business
 Scale rapidly through access to Delhivery's proprietary technology and data sciences
platforms
41
KerryIndev Logistics Pvt. Ltd.
KerryIndev Logistics Pvt. Ltd., - as a Total Integrated Solution understands the trade and
requirements of its customers. KerryIndev evolved itself as 3PL company with its top-notch 3PL
warehousing operations at Pan India Level - Chennai , Mumbai , NCR , Bangalore, Madurai and
growing on...
The business model on 3PL warehousing operations encompasses on multi – clients and multi-
products which shared infrastructure and resources.
KerryIndev as a 3Pl warehousing service provider focuses on the following types of services:
 Storage
 Distribution
 Consolidation
 Value - Added - Services (VAS)
 WMS based Inventory Management System
 Agreed SOP / KPI / SLA and Structured MIS
KerryIndev’s 3PL warehousing model completely focuses on “ Multi customer and multi product
” which is fixed and transactional based costing for both the inbound ( receiving, put away ) and
outbound ( processing customer orders, order-picking, checking, packing and shipping ) agreed
SLA, KPI and SOP.
KerryIndev also focuses on “total visibility of Inventory Management by our WMS ” which
enables quick and accurate responses to customers demand with well experienced and trained
manpower in multi verticals.
42
Chapter – III
Review of Literature
43
3. Review of Literature
3.1 Meaning and Concept of the Topic
Warehouse managementprocess
Fig. 3.1
Warehouse management process
( R.T.V.= Return To Vendor , G.R.N.= Goods Receipt Note, Q.C.= Quality Checking. )
WAREHOUSE
Inbound Outbound
Undertaking
Sorting / Q.C.
Sales under
purchasing
Picking
Q.C. / Packing
Delivery
note
Tax invoice
Packing list
G.R.N.
Putaway
Putting entry
in system
Q.C.
Reject
Good
inventory
R.T.V.
Dispatch
G.R.N. Up-dative
44
INBOUND TO OUTBOND PROCESS
When any products undertakes it will be check and sorting by their quality and quantity
i.e. quality check with their bar code number of products. After the quality checking good
inventory and Q.C. rejected products are separated and Goods Receipt Notes are prepared. The
Q.C. reject products will be return to vender. After G.R.N. of the products are put away. And
update the entry in system of new product by G.R.N.
In outbound process the sales under purchase are picking. After an order has been picked,
it has to pack and before packing the products will check by Q.C. Then the delivery notes are
prepared which explain what the contents of a package are. After this tax invoice are prepared by
a registered dealer to the amount of tax payable. Then the packing list will be prepared. It usually
include in each shipping package, giving the quantity, description & weight of the content. And
dispatch the products by their order numbers after this in system G.R.N. are updated.
45
3.2 Basic theories of the Topic
3RD
PARTY LOGISTICS WAREHOUSE MANAGEMENT PROCESS
INWARD TO OUTWARD which follows by origin logistics warehouse
Inward – SOP
1.1 Steps:-
1) Vehicle Driver report at plant and show the invoices for verification to security.
2) Security verified all document and after correct confirmation he inform to concern person
in Rehau & also take details in reported register and Inward register.
3) Floor supervisor will verify all documents & material and after that he will unload all the
material with the support of Labours at Inward area.
4) Floor supervisor verified all material with Invoice quantity.
5) After verified invoice supervisor will handover to Executive for GRN in system.
6) Executive will check material final count he will sign in invoice copy and supervisor will
also sign for to take GRN in system & record purpose.
7) Once GRN done in system Executive will inform to all CCS team members through mail
and take relevant action.
8) After GRN Supervisor will move material to as per given location.
9) Executive will file all invoice & relevant document for record purpose.
1.2 For Import Shipment:-
1) 1st & 2nd point is same as above.
2) Executive first will check Seal with container and take photos.
3) Executive will open seal and after he will verify material inside the container and take
photos.
4) Executive will inform to supervisor for unload vehicle.
5) Supervisor will unload vehicle with the support of labours.
6) Supervisor will check material with Invoice at Inward location area and after verify that
he will handover to Executive.
46
7) Executive will check final count of all material and after that he will give all document
scan copy to Mr. Kedar sir (He is taking care Import shipment GRN ) for GRN purpose
in mail and also share the photos which you taken at the time opening container.
8) After GRN Executive will check system record with invoice. And also after GRN
Executive will inform to supervisor for move material as mention location.
9) After GRN he check the file all documents for record purpose.
10) Executive can also use forklift after 3rd point, If material is weighted then he can use
forklift for unload purpose henceforth all procedure is same.
11) Executive will take approval for forklift use & also save details for account purpose.
1.3 For Short & Damage Shipment Inward in STN:-
1) If Supervisor will found short shipment in STN then he will inform to Executive & WH
In-charge.
2) Executive will take action and right mail to all concern person like CCS, STN Team,
Consigner & relevant team etc,
3) If the short shipment found at consigner side on mail communication then writhen back
information wants to confirm from consignee on mail.
4) If material received short from Transporter, Then Executive will write mail to
Transporter, Consigner, CCS & relevant officers.
5) If material lost from Transporter then All Sr. Person in Rehau raise bill against
Transporter name and settle down the issue.
6) If material received damage condition Supervisor will inform to Executive.
7) Executive will take photo and right mail to Transporter, consigner & Rehau relevant
officer.
8) Once confirmation received from Rehau Officer. We will take action as per as per Rehau
officer instruction.
9) Executive will update these details in daily report which was given by Rehau & also
maintain record in Excel. Executive will follow-up on daily basis till the resolve.
10) After resolve issue Executive will keep this record in filling.
47
Outward
2.1 Outward:-
1) Order received from CCS by mail on daily basis, Executive will check.
2) Every order he check Executive will check whether release or not, if order release then he
will generate pick-list and handover to Supervisor after Data input in excel.
3) If order not release then Executive will keep data in mention format and after that he will
send for release as mention format on mail.
4) Once order release Executive will get information on mail after that he generate pick-list
and handover to supervisor after data input in excel.
5) Supervisor pick material with labours and move that material to Outward location.
6) After picking picker will sign on order and handover to supervisor.
7) Supervisors will handover to Executive for billing.
8) Executive will this order in SAP as mention code.
9) After billing he will keep data as mention format.
10) Executive will handover this Invoice to Supervisor for 2nd check.
11) Supervisor will check this invoice as per the order and material as mention at Outward
area.
12) After 2nd check supervisor will handover to Executive for final check.
13) Executive will collect all invoices and he will check final at outward location and after
check he will move material to dispatch area.
14) Dispatch area material all invoices supervisor will do entry in PDC challan file.
15) After entry in PDC challan supervisor will handover all invoices to Security for Outward
entry.
16) Executive will collect all Triplicate copy with security in his custody for record purpose.
17) Executive will check all outward invoices with his Excel for confirmation.
18) After confirmation Executive will collect LR with transporter.
19) After all attached with invoices & and also segregate all invoices with invoice number
series and file that with invoice series.
20) After all order process Executive will check whether we not missed any order in mail.
48
2.2 If MaterialDispatch Short & Damage:-
1) If materials send short Consigner we will get information through Consignee, Sales man,
CCS & Rehau sales officer etc via Mail.
2) Once mail received against Short supply, Executive will verify that stock.
3) If material found at WH then Executive will inform to consignee and send that short
material to consignee on urgent basis.
4) Damage material should not be send to any customer.
49
Cycle Count
3.1 Cycle Count Step:-
1) Executive will plan in a day 20 article with proper count with whole details.
2) Executive will give all details to Supervisor with cycle count details.
3) Supervisor will count this article stock with 1 Labour as per given time line.
4) Supervisor will give all details with proper format to Executive.
5) Executive will update details with given format and take printout.
6) After Printout Executive will take Authorised person sign Like Supervisor – Executive –
WH In-charge – WH Manager.
7) After all authorised sign Executive will file this all documents for record purpose.
50
Reports
4.1 Steps For Reports:-
1) Executive will update 2 reports in day and also on daily basis.
2) 1st report which is called Daily report please see below screen shot in this report cover all
Inward & Outward details,
3) 2nd report which is called daily update report which is covered Outward daily details,
4) Executive share 1st report on daily basis to all Seniors.
5) Executive is maintain 1st report to understand all Rehau officers witage of the work in
WH.
6) Executive maintain 2nd report for knowledge and also do not missed out from his as well
as from Floor picker.
This standard process ofOrigin logistics private limited which is
follows by there all 3 customers.
51
SYSTEM WORKIN 3RD
PL WAREHOUSE MANAGEMENT follows by
Origin logistics private limited which is follows by there all 3 customers
How prepare invoice?
Fig. 3.2
First orders are received by mail with order number. After this orders the stock available or
not are checks and they will inform their stock availability or pending orders to customers.
Confirmed orders through the customer are reserved by their order numbers. When customers
will pay their payment of orders the invoice will be prepared by their order number.
52
Fig. 3.3
After the receiving mail order the invoice prepared with help of SAP (SAP code /nva02).
The order numbers enter or copy paste in SAP order.
53
Fig. 3.4
SAP is useful softeware because of SAP the bases of only orders number the all
information are copy in SAP. It help to identify the remaining quantity of materials with the
description of products and their value / net value. It helps to generate invoice.
54
Fig. 3.5
After order conformation of custommers the invoice prepared with help of SAP as shown
in fig. 3.4. SAP gives the all information of product like their quntity with their price and their
total amount i.e., net value of product with Excise 23D, Ed Cess, H& C Cess SAD, VAT
(13.50%).
55
Fig. 3.6
When manufacturer`s are transport the materials to the warehouse they prepared the
manufacturer`s invoice as shows in fig.3.5.
56
3.3 Review of Research on the selected Topic
3PL Warehouse Management
Reasons to use a 3PL provider
There are a multitude of benefits companies by outsourcing supply chain management to
value-added 3PL. Third party logistics offers an all in one solution for assembly, packaging and
distribution. Utilizing a 3pl provides businesses with a reliable advantage and maximizes
profitability through combined knowledge and resource.
1. Resource network
Third party logistics providers have a vast resource available that provides advantages over
in-house supply chains. Using a 3PL`s resource network, each step in the supply chain can be
executed in the most efficient, cost effective way. 3PL can leverage relationships and volume
discounts, which results in lower overhead and the fastest possible service. Choosing a 3PL
provider allows your company to benefit from resources which are unavailable in-house.
57
2. Save time and money
Outsourcing logistics will save a wealth of time and money for your company. Using a
3PL provider eliminates the need to invest in warehouse space, technology, transportation, and
staff to execute the logistics process. 3PL providers can save from costly mistakes, and allow
your business to build a global logistical network with lower risk and higher return.
3PLs save your time which needed to carry out the supply chain. There is no need to
worry about the paperwork, billing, audits, training, staffing and optimization involved to get
your goods where they need to go.
3. Expertise
3PL are knowledge of industry best practices and stay up to date with the latest
developments in technology. 3PL software is capable of advanced reporting, inventory
management and provides visibility to monitor the entire process. 3PL employ Just In Time
practices to ensure the correct amount of inventory is shipped when and where you need it.
Outsourcing logistics allows your company to focus on your core competencies, and
leaves the rest to the experts. 3PL services will allow you to have peace of mind knowing your
logistics needs are being handled by reliable, seasoned professionals.
4. Scalability and flexibility
A benefit of using a 3PL provider is the ability to scale space, labor, and transportation
according to inventory needs. Business with seasonal periods can enjoy stress free transpositions
between industry ups and downs, having the ability to utilize more space and resources when
needed so focused on flexibility of customer demand.
Using a 3PL provider allows your business to grow into new regions without barriers. 3PL
provider have distribution centers and warehouses strategically located to allow for quick
shipping of goods to anywhere in the world. Decentralized distribution offers lower costs, and
provides quicker delivery times.
58
5. Continuous optimization
3PL providers have the resources at hand to make adjustments and improvements to each
link in supply chain. 3PL professionals will ensure your needs are met, by using the fastest, most
efficient, and effective methods.
3PLs have tools to restructure the supply chain, and use technology that ensures the proper
amount of goods arrives when and where you need them. Sophisticated management software
can analyze and monitor practices to eliminate inefficiencies and streamline the supply chain.
Outsourcing 3PL services will ensure continuous improvements are made to your logistics
process. Third Party Logistics providers can help maximize profits, reduce wait time, and
improve customer service.
59
Just In Time (JIT) Inventory management is one of the most basic, yet important concepts in
an efficient manufacturing process.
It is a prime example of how good supplier relationships are vital to an efficient
manufacturing supply chain.
Commonly used as a method for improving efficiency and minimizing cost by third party
logistics companies, a JIT inventory strategy is one of the primary benefits provided by
Manufacturing Support Services companies.
Just In Time requires tight coordination between production and vendors for it to work
right. Under JIT, raw materials, parts, and components are ordered and delivered just as they are
needed for producing finished goods. The concept can extend further up the supply chain to
include sub-assembled parts as well.
In simple terms, the just in time inventory management technique reduces inventories of
raw materials, work in progress, and finished good to almost zero.
The parts do not arrive earlier or after they are required; but they arrive just as they
are needed.
60
3PL’s warehouses use JIT as a strategy to provide several specific benefits to their clients
beyond just cost reduction and enhanced efficiency. These additional benefits are realized
through:
1. Having little or no inventory levels means that holding costs (such as warehouse space) and
carrying costs are minimized.
2. Funds that used to be tied up in inventory are freed up and can be used elsewhere.
3. Space previously used for holding inventory can be used for more productive uses.
4. Under Just In Time, production setup time is reduced resulting to quicker response time to
client’s needs. Also, greater output potential is realized when firms switch to JIT.
5. Obsolescence rate is decreased since raw materials and goods are not held for long. Further,
risks such as damage of inventory by fire or theft are eliminated.
MINIMUM
INVENTORY
MAXIMUM
PROFIT
MAXIMUM
ORDER
61
Chapter – IV
Research Methodology
62
4.Research methodology
Research methodology is a way to systematically solve the research problem. In this we
study the various steps are that generally adopted by a researcher in studying his research
problems along with the logic behind them. It is necessary for the researcher to know not only
the research methods but also the research methodology. The scientific method is one and same
from branches of scientific method is pursuit of truth as determined by logical consideration. The
research must examine all available literature to get him acquainted with the selected problem.
The task of data collection begins after a research problem has been defined as research
design check out. While deciding about the method of data collection to be used for the study,
the researcher should be keep in mind two types of data, they are
a) Primary data
b) Secondary data
4.1 Primary data
Primary data are those, which collected afresh and for the first time this happen to be
original in character. Primary data can be obtained either through observation or through direct
communication with respondents is one form or another through personal interview. Here I have
collected various information through personal conversation with manager and staff of the
organization`s.
4.2 Secondary data
Secondary data means the data that are already been collected by someone and which
have already been pass through statistical process. Secondary data is needed for proper
interpretation of primary data. For this study secondary data are collected from website, journals,
booklets, broacher and various books from management. Here secondary data`s are collected
from various records such as by the record book of PO and DN of materials, annual report, audit
report.
63
4.3 Method of data collection:
This data collected by Observation method. Observation is act of recognizing and nothing
facts or occurrences. No questions are asked in data collection. This data collected from the
Origin logistics private limited. Observation methods involves systematically watching and
recording what people say and do, so I observed day to day activity of warehouse and try to
understand warehouse management and problem in warehouse management.
4.4 Area of research
The research was done in Origin logistics private limited, Indian Corporation, Building
No.181, Dapode, Bhiwandi, Thane, Maharashtra, 421302.
4.5 Data analysis
In order to analyze the process of warehouse inbound to outbound.
Methods of presentation
While the presenting the data both primary and secondary data used. Charts are also used
at relevant places apart from tables.
Tools for analysis
The tools used for analysis are tables and charts which help in simplifying the large data,
graph made a visual appeal to prove to be more impressive. The analytical tools used in the study
are graphs, charts, tables and percentage analysis.
Tools used
 Bar diagram
 Pie diagram
64
Chapter - V
Data Processing and Analysis
65
5. Data analysis
5.1. Details of employees
Details of employees Percentage
Permanent 60%
Outsourced 40%
Table 1
Chart 1
This chart and table shows the details of employee`s job. Around 60% of the employees
working here are permanent and around 40% of the employees working here are outsourced
employees.
0
10
20
30
40
50
60
70
Permanent Outsourced
Details of permanent emplyees & outsourcedemployees
Percentage
66
5.2. Problems in warehouse
Problems in warehouse Percentage
Dust problem 68%
Labor problem 20%
Space 5%
Safety 7%
Table 2
Chart 2
This chart and table shows the details about the main problems faced in this warehouse.
The main problem faced here is dust problem. Also 20% problem is due to labour issues. Less
than 10% of the problem is due to space and safety issues.
Mainproblems inwarehouse
Dust problem
Labour problem
Space
Safty
67
5.3. Goods handling facility
Goodshandlingfacility Percentage
Good 80%
Average 15%
Bad 5%
Table 3
Chart 3
This graph shows that most of the customers are the satisfied with the perishable goods
handlingfacilitiesinthiswarehouse.
0
10
20
30
40
50
60
70
80
Good Average Bad
Goods handling facility
Customers satisfaction
68
5.4. Fire fighting and other safetyfacility
Fire fighting safety Percentage
Good 85
Average 12
Bad 3
Table 4
Chart 4
In this graph we are able to see that fire fighting and safety measures adopted by this firm
are very good. Most of customers are satisfied with this facility.
0
10
20
30
40
50
60
70
80
90
Good Average Bad
Goods handling facilities
Percentage
69
5.5. Customer satisfaction
Customer satisfaction Percentage
High 88%
Average 10%
Low 3%
Table 5
Chart 5
This graph we are able to see that customer satisfaction is very high in the case of
warehouse facility like the space and handling equipment etc.
Customersatisfaction
High
Average
Low
70
Chapter – VI
Finding
71
6.Findings
 Warehouse space has being allotted using computerization.
 The entire warehouse operations under 24/7 CCTV surveillance and security guard.
 Racking system in warehouse is available.
 Less numbers of handling equipment like Forklifts in each warehouse.
 Fire and safety measures are fully operational.
 Most of the customers agree that 3PL warehouse providers are approachable, easy to
contact, complete a task by certain deadline.
 Canteen facility not available.
 Warehouse is fully enabled with latest logistics software’s like SAP.
 Need to train for workers about the proper handling of material as well as warehouse
equipment.
 Also need training of warehouse safety, since they are not aware about it.
 Proper identification for location is needed to avoid any mismatch or misplace of
material.
 To understand the concept of 3rd party logistics, various operation s in 3rd party logistics.
 Help to understand the warehousing, inventory management and damage control.
 Time management.
 Material is not properly stack as per standard stacking norms it resulted in damage of
material.
72
Chapter – VII
Recommendation
73
7.Recommendation
 Provide more handling equipment like forklifts for handling of heavy materials.
 Increase the warehouse spacing also proper utilization of space.
 Provide separated ‘GATE IN’ and ‘GATE OUT’ facilities.
 Find some solutions to reduce the heat in warehouse and provide better working facilities
for the warehouse workers.
 Need to take training about safety awareness in warehouse for workers.
 To avoid damages of material the annual maintenance of warehouse especially in rainy
season is must. .
 To avoid mismatch or misplacing of material paste sticker on location if required it will
help in easy identification.
 Canteen facility not available for workers as well as staff so arrange canteen facility or
separate place for lunch.
 Need to conduct award & recognition program quarterly to motivate workers as well as
staff to improve their dedication towards work. It will resulted in better results.
74
Chapter – VIII
Conclusion
75
8.Conclusion
By doing this project the researcher was able to understand all the basic working of a
warehouse. Inventory handling is the most important part of warehouse management. Many
types of equipment like forklift and stackers are the most commonly used tools for inventory
handling in most of the warehouses.
These facilities are curtailed due to the day by day demand of this field/ sector. There is
high potential for this company in the future due to the high customer satisfaction provided by
company.
Warehouse strategy is evolving to more focus and flexibility. The main objective of this
project report is to get practical knowledge of warehouse process and functions. It help to study
the warehousing, inventory management and damage control as well as understand 3PL’s
warehouse management use JIT as a strategy.
76
Chapter – IV
Bibliography
77
9.Bibliography
Website
http://www.originlogistics.co.in/
www.wikipedia.com
www.wiki.answers.com

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Project report of 3PL warehousing

  • 1. 1 Vishweshwar Education Society’s Indira Institute of Business Management PROJECT REPORT ON 3RD PARTY LOGISTICS WAREHOUSE MANAGEMENT SUBMITTED TO INDIRA INSTITUTE OF BUSINESS MANAGEMENT, NAVI MUMBAI BY PRIYA ARUN BAMBALE Roll No. 2016054 Batch No. 2016-2018 IN PARTIAL FULFILLMENT OF MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI AUGUST, 2017
  • 2. 2 DECLARATION I, Mr./Ms. Priya Arun Bambale, Hereby declare that this project report is the record of authentic work carried outby me during the period from 8th May 2017 to 8th July 2017 and has not been submitted to any other University or Institute for the award of any degree / diplomaetc. Signature Name of the student Date
  • 3. 3 CERTIFICATE This is to certify that Mr. / Ms. Priya Arun Bambale, of Indira Institute of Business Management has successfully completed the project work titled 3PL Warehouse management in partial fulfillment of requirement for the completion MMS as prescribed by the University of Mumbai. This project report is the record of authentic work carried out by him / her during the period from 8th May 2017 to 8th July 2017. He / She has worked under my guidance. Signature Name Project Guide (Internal) Date : Counter signed by Signature Name Director Date :
  • 4. 4 ACKNOWLEDGEMENT I am glad to present the documentation of the project on “3rd party logistics warehouse management”. Project developments require commitment from all the people who are involved in it. And would I like to say thanks all the people extend their supportto us. We would like to thanks directors of “Origin Logistics Private Limited” who help us in this project by giving all required information for the project. I am really thanked to him for all his time he had devoted to us. At every outset I take opportunity to heartily thanks to our Project guide Mr. Raj Mukundan and all our teacher staff for their help in initial stage of the project Finally, I would like to express our heartfelt thanks and gratitude to all those who have directly or indirectly helped us in this project work. Ms. Priya Bambale
  • 5. 5 EXECLUTIVE SUMMERY The project has been a great learning for me at the same time it gave me enough scopeto implement my analytical ability. This project was undertaken with the sole objective to study 3PL WAREHOUSING, and the associated with inbound and outbound process. Under this project the methodology adopted was focus discussionand close observation through “Origin Logistics Private Limited” as well as in-house study and data collected from various primary and secondary sources. One of the major segments contributing to a rapidly growing logistics industry is the warehouse business. The challenges facing warehouse management today has been greater than before due to globalization, shorter lead time, high customer service level and changing market trends. As results, the role of warehouse has changed just from storing and issuing of goods to important strategic roles. Todaywarehouse must operate with high efficiency to meet the various requirements in logistics system. As results, many companies are investing in information technology (IT) tools such as warehouse management system (WMS), bar code, RFID(Radio-Frequency Identification) and EDI (Electronic Data Interchanged) in their operations to ensure the information flow is smooth to collect plan the warehouse operation.
  • 6. 6 TABLE OF CONTENTS Chapter No. Title Page No. 1 Introduction 10 1.1 Relevance of the Project 11 1.2 Introduction of the Topic 11 1.3 Objectives of the Study 16 1.4 Scope of the Study 17 1.5 Limitations of the Study 19 2. Profile ofthe Organization 20 2.1 History & General Information 21 2.2 Company Profile 23 2.3 Competitors Analysis 34 3. Review ofLiterature 42 3.1 Meaning and Concept of the Topic 43 3.2 Basic theories of the Topic 45 3.3 Review of Research on the selected Topic 56 4. ResearchMethodology 61 4.1 Method of Study 62 4.2 A Primary data 62 4.2 B Secondary data 63 4.3 Method of data collection 63 4.4 Area of research 63 5 Data ProcessingandAnalysis 64 6 Findings 70 7 Recommendations 72 8 Conclusions 74 9 Bibliography 76
  • 7. 7 List of Tables Chapter No. Title PageNo. 5. Details of employees Problems in warehouse Goods handling facility Fire fighting and other safety facility Customer satisfaction 65 66 67 68 69
  • 8. 8 List of Graphs Chapter No. Title PageNo. 5. Details of employees Problems in warehouse Goods handling facility Fire fighting and other safety facility Customer satisfaction 65 66 67 68 69
  • 9. 9 List of Chart Chapter No Title Page No. 1. Warehouse management process 63
  • 11. 11 1. Introduction 1.1Relevant of the project Summer internship provides an opportunity to test one`s interest in particular field or sector for career development. Summer internship gives exposure to the students to the corporate world. Summer internship project helps the research i.e., student to understand the knowledge, skill about a particular sector and trains them to transfer the acquired knowledge in the form of report. 1.2 Introduction of topic What is warehousing? A warehouse is describes a facility serving the purpose of storing goods. In ecommerce, warehouse are mainly used to keep items on stock to make sure the short delivery times needed can be fulfilled. The warehouse processes follow principle of inbound-storage-outbound processes: stuff comes in, is stored, and goes out again. Warehouse processes: a. Inbound The inbound process in its simplest form is just taking an item and placing it in storage. Inbound processes are the processes that have to get articles inside your warehouse. Think of incoming goods inspection, returned goods inspection, unpacking and (re)labeling. This process is very important because when something goes wrong here, you might have incorrect stock information and you might have to disappoint a customer. Also, when you have to “fix” any problem later in the warehouse process, it will be more costly in terms of money or time.
  • 12. 12 Steps involved in inbound: Inspection: Incoming goods are inspected before they may enter the storage. You will want to check if your supplier has sent you the right items and also the right amount. Besides that, you may need to check quality or possible damage. When an item is good enough to sell to your demanding customer, you can put it in storage. Returns are basically the same as inspection of items you received from supplier. Notable difference is that you will want a 100% check. Repackaging: In some cases especially when you have an automated system, you have to repackage the incoming items before you can store them. Think of putting them in standardized boxes or crates. Labeling: Not all suppliers will label their items with the (bar) codes that you need in your process. If that is the case, you will have to add those codes yourself. This can be just as article code (like the EAN or UPC codes) or an item code, where each item has its own unique code. Storage: The storage process decides where and how your items will be stored. Different articles have different needs for storage. Articles that are popular need to be stored in a convenient location. After inspection is done, you or Warehouse Management (WMS) will decide where the items need to be placed. Most ecommerce warehouses will have different storage types, based on the popularity or other properties of the item.
  • 13. 13 Replenishment: Many warehouses are divided in bulk storage and pick storage. Bulk is where large amount of items are stored, often on pallets. Picking is done from locations that are easier reached by a person. The process to fill the picking location from bulk is called “replenishment”. This is done before or during the order picking process, to make sure all the picking locations are filled and the picking process is not slowed down. Storage Methods: Pallet Racking Pallets are stored in pallet racking, using a forklift truck to put the pallets in and take them out. Pallet racks are often in a warehouse with a high ceiling, so several layers can be stored. Usually, this kind of storage is used as bulk storage, from which replenishment to other locations is done. Shelves You would use shelves to store a limited amount of items. Shelves are usually filled from replenishment, not directly from any inbound process. Shelves can be filled and emptied by hand. Advantage is that almost any product can be placed here, only limited by size, A dis- advantage is the speed of which a pick can be done. Flow-racks Flow-racks are used for higher throughput items. They are filled from one side and the items flow (roll) to the other side. An advantage is that inbound/replenishment and outbound processes are physically divided, creating the possibility to do it simultaneously. An important disadvantage is the strict requirement on size (you cannot put anything anywhere). Flow-racks are often combined with pick-to-light to speed up the picking even more.
  • 14. 14 b. Outbound The outbound process is everything that is needed to fulfill a customer`s order. Outbound processes include the works needed to get items out of you warehouse. At the very least this includes order picking, but also packing, shipping, some value-added services you may offer our customers. Order picking: Methods Order picking comes in many different forms and use a lot of different methods. There are several processes and methods when picking orders:  Single-order picking: you pick all items for a single order. You cannot mix orders, but when your orders are small, this can be inefficient. For large orders, single-order picking might be the right choice.  Batch picking: you pick items for multiple orders at once. This results in a higher efficiency, but it introduces the risk of mixing orders. You can use technology to lower that risk.  Zone picking: you collect all items within a certain area (zone) of your warehouse.  Consolidation: merging several pick orders to form a client order, this is usually needed when using zone picking. In a warehouse of some size, each of these methods will be used, often combined. Technology A lot of technology exists to speed up order picking or lower the risk of errors.  Barcode scanning: this is a low-entry technology, which enables the picker to check any actions he has to do or make the data entry easier. It doesn`t necessarily speed up the picking process.  Conveyor belts: a little more expensive, it can decrease the amount of walking orders pickers have to do.
  • 15. 15  Goods-to-man: often highly automated, this technology moves the goods, and lets the order picker stay in one spot. Added value: This is anything you do to increases the value of the items you are shipping. You could for instance offer you customer possibility to personalize the item or do some basic configuration on electronics. Value added services (VAS) is done after the item is picked, but before it is packed. Packing: After the order has been picked, it has to be packed and made ready for shipping. This includes putting the item(s) in a box and applying the necessary labels to it. In some cases it is possible to this while picking. In that case, the order is picked directly into the box in which it will be shipped; this is called pick-and-pack. Administration: To make sure everything you do in a warehouse is registered and you can find the stock quickly, you will have to do some kind of administration. In its simplest form, this is a piece of paper where you write down where you put what. This of course can become tedious quickly and many people resort to a spreadsheet application such as Excel to do it. That has advantage you can quickly find things, but you can make errors quite easily.
  • 16. 16 1.3 Objective of the study The study of the topic has been undertaken with a number of objectives. Followings are the objectives of the study:  The main objective of this project report is to get practical knowledge of warehouse process and functions.  To understand the concept of 3rd party logistics, various operation s in 3rd party logistics.  Cost and time savings for the client.  To study the warehousing, inventory management and damage control.  To understand 3PL’s warehouse management use JIT as a strategy.  Time management.
  • 17. 17 1.4 Scope of study Scope of Warehouse Management The place where raw material and/or finished goods are stored is referred to as warehouse or store. Generally, warehouse is structure or building design keeping in mind raw material and finished goods it is going to store. Therefore, warehouse management should be able to:  Receive the purchase goods and entered upon the stock register.  Inventory Accounting of raw material, work-in-progress or finished goods.  Preservation of the inventory  Ability to access goods whenever called upon.  Appropriate record keeping through coding as to preserve goods and reduce obsolescence.  Proper stocking of goods as ensure smooth handling. If above objectives are met, warehouse management significantly increases the overall efficiency of the production and organization. A robust warehouse management would ensure that:  A smooth flow of production  Appropriate layout management to reduce material handling and equipment handling  Reduce to wastage as well as spoilage  Eliminate the possibility of theft and damage  Ensure preservation of environment and reduce pollution.  Encourage cost reduction and driving efficiency
  • 18. 18 Warehouse Design Warehouse design is art in which goods and material can be stored as to reduce wastage, cost of carrying and increase safety. The various factors considered for warehouse design are as follows:  Easy material handling including receipt, dispatch and storage.  Easy supervision of materials as well as personnel  Reduce and control obsolescence of the goods by following appropriate method.  Optimum utilization of space Storage Location There are three general ways in which goods are stocked as to reduce material handling and increase prompt access. They are as follows:  Fixed position in which specific area is located where designated goods are stored. If the designated goods are not there, that space will remain empty. Fixed position encourages easy and traceable access to the goods.  Random Storage in which goods are stored where ever space is available. Here maximum utilization of the space is achieved.  Categorized fixed location in which particular set of products are placed randomly in the allotted space.
  • 19. 19 1.5 Limitations of study  Increased competition  Out of stock  Deadline with expired product as well as order  Planning and decision making  Damages  Transportation cost  Data updating
  • 20. 20 Chapter II Profile of Organization
  • 21. 21 2. Profile of Organization 2.1 History & General Information Origin Logistics Private Limited is a private in corporate on 23 July 2007. It is classified as Non-government company & is registered at Registrar of Companies, Mumbai. Its authorized share capital is Rs. 6,000,000 & its paid up capital is Rs. 4,000,000. Directors of Origin Logistics Private Limited are Raouf Ansari, Sudhir Charanjit Sikka. Origin Logistics Private Limited's Corporate Identification Number is (CIN) U63011MH2007PTC172562 & its registration number is 172562. Its e-mail address is sudhir.sikka@originlogistics.co.in & its registered address Indian Corporation, Building No.181, Dapode, Bhiwandi, Thane, Maharashtra, 421302. Origin Logistics Private Limited is involved in Transport, Storage & Communication activity. Current status of Origin Logistics Private Limited is Active. Origin logistics is located in Thane two area Dapode, Bhiwandi & Vadpe, Bhiwandi. Role of Origin logistics private ltd. is 3PL i.e., 3rd party logistics. They are provided the warehouse services. 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 areas of cities, towns & villages.
  • 22. 22 Origin logistics private ltd. Dapode, Bhiwandi work on 3 project:- 1. REHAU 2. RELIANCE 3. YELLOW SPARKS INTERNATIONAL This all 2 customer are used the warehouse services of Origin Logistics Private Limited's for supply chain management. In supply chain management the works are distributed in two type i.e., floor work & system work.
  • 23. 23 2.2 Company profile ORGANIZATION OWERVIWE NAME: ORIGIN LOGISTICS PRIVATELIMITED ADDRESS: INDIAN CORPOARATION, BUILDING NO.181, DAPODE, BHIWANDI, THANE, MAHARASHTRA, 421302. CIN: U6311MH2007PTC172562 COMPANYSTATUS: ACTIVE ROC: ROC-MUMBAI REGISTRATIONNUMBER: 172562 COMPANYCATEGORY: COMPANY LIMITTED BY SHARES COMPANYSUB CAREGORY: NON-GOVT COMPANY CLASS OF COMPANY: PRIVATE DATE OF INCORPORATION: 23 JULLY, 2007
  • 24. 24 1. REHAU POLYMERS PRIVATE LIMITED ORGANIZATION OWERVIWE Headquarters: Muri bei Bern, Switzerland C.E.O.: Rainer Schulz (Apr. 2010-) Revenue: 2.8 billion EUR Founded: 1948
  • 25. 25 Rehau Polymers Pvt. Ltd – Mumbai About Rehau: 1948 Founded in the Bavarian town Rehau. Three employees, one extruder. Initial products included shoe welting, garden hoses and automotive components. Expertise and innovative spirit have made REHAU a leading systems and service provider for polymer-based solutions in construction, automotive and industry. Philosophy: REHAU has always sought to create new formulations that expand the application of polymer materials. Our approach: to replace conventional materials with more capable polymers and to create system solutions that generate added value for our customers.
  • 26. 26 Corporate Citizenship: As a global company and a responsible employer, REHAU is committed to causes beyond our own business activities. Around the world, we champion ecological, economic, social and cultural concerns.
  • 27. 27 Rehau is customer of Origin logistics private ltd. from 10 year. 3000 sq. ft. area of Origin logistics private ltd. used for storage of Rehau products. Rehau products:-  Furniture related:- Edge-band  Interior item:- supporting bar  Clinbor  Laminate sheet  Crystal sheet Edge – band: is used to cover the exposed sides of materials such as plywood. Supporting bar: It is used as interior-item. Laminate sheet: used in many applications that need weather-proof, impact resistance sheet material.
  • 28. 28 2. RELIANCE Under the Reliance there are 2 project are working i.Reliance footprint ii.Reliane hamleys i. Reliance footprint Reliance Footprint is a leading specially family footware retail chain that caters to the footware needs of the entire family. Reliance Footprints offers widest range of international, domestic and Reliance owned brands across men`s footwear, womwns footwear, kids footwears, handbags, bagpacks, liggage, socks, belts, wallets and shoe care products. At Reliance Footprint, we believe in the quality of our products and service which is the sole reason for our success. Be it indoor, outdoor, formals, casuals, sports, parties, ethnic or occasional, we offer the best in-trend fashion footwear and accessories for all age groups.
  • 29. 29 Steve Madden Steve Madden is an iconic footwear brand form New York. Steve Madden designs, sources and markets fasion-forewords footwear ans accessories for woents, man and children.Steve Madden brand represents a lifestyle. Inspired by rock and roll, fused with a jolt of sex appeal and urban edg, Madden continues to create design that are innovated, fun, sometimes wild and always spot-on-chic. In the last twenty years, the company has made significant and groundbreaking strides in explanded collections, categories, licensing agreements and acquisitions. Steves Madden has entered India through a long term license aggeriment with Reliance Brand Limited.Through this association, Steve Madden products will be available through exclusive mono-brand stores and premium department stores in all major cities across India. Positioned as bridge between hi-street and luxury, the brand will offer a cutting-edge range of fasion forward, of-the-movement designs across footwear and a variety of accessories. The stores will also offer Madden Girl, a fashionable line for younger girls who wish to make a statement. In addition to marketing products under its owned brands includingSteve Madden, Steven by Steve Madden, Madden Girl, Betsey Johnson, Betseyville and Big Buddha, the Company is the licensee of various brands including Olsenboye for footwear, handbags and belts, Elizabeth and James, l.e.i, and Glo footwear and Daisy Fuentes for handbags
  • 30. 30 ii. Reliane hamleys Reliance Retail is eyeing the toy market now. It has entered into an exclusive pan-India franchise with UK’s 248-year-old toy retailer, Hamleys. As many as 20 Hamleys standalone stores will be set up by 2016. “By 2016, we will have invested about Rs 125 crore for this venture,” said Bijou Kurien, president and chief executive (lifestyle), Reliance Retail. “The flagship stores of Mumbai and Delhi will have a size of 25,000 to 30,000 sq feet, while regional stores will be of 10,000 to 15,000 sq feet.” The stores, which will have products in the price range of Rs 5 to Rs 20000, will open beginning April 2009. They would stock a wide range of domestic and international brands including private labels from Hamleys. While Reliance Retail will make all the financial investments, Hamleys will add value through design assistance, training as well as marketing and promotion activites. The business will have a separate team, which will be led by CEO Sudhir Pai. The stores will have special spaces where children’s birthday parties or other get-togethers could be celebrated. Paul A Currie, trading director, Hamleys said, “Some dedicated staff within our stores will demonstrate how the toys work in order to give the consumers a better experience.”
  • 31. 31 Currie stressed that the toys would not be harmful in any way for the children. “We will have all quality checks in place,” he said. In view of the price-sensitive nature of the Indian market, said Kurien, great care would be given to the pricing strategy, . The value of the Indian toys and games market is estimated at Rs 2500 crore. Of this, the organized market is about Rs 500 crore. Hamleys follows a franchise strategy for various markets that it expands into.
  • 32. 32 3. YELLOW SPARKS INTERNATIONAL ORGANIZATION OWERVIW Nature of business: Manufacturer Company CEO: Gautam Dalal Totalno, of employees: Up to 10 pepole Year of establishment: 2013 Annual turnover: Rs. 1 – 2 Crore
  • 33. 33 About Yellow Sparks International: Yellow Sparks International is established in Jan 2013 on the foundation of two core elements i.e., Safety & Quality. We bring you, an exciting range of water bottles and lunch boxes specially designed for children keeping in mind their favourite heroes. Our products are carefully selected and undoubtedly robust. Utmost care has been taken when it come to delivering quality, ensuring that our products are BPA free, Food Grad, microwave and dishwasher used enabled. We, at Yellow Sparks International, continually strive to set a benchmark of impeccable service to customers and deliver quality and safety in every products, and that`s what our purpose in since our inception.Yellow Spark International manufacture the kids products like insulated bottles / steel bottles, pencil box, pencil pouches, lunch box, etc. Productof Yellow Sparks International:  Insulated bottle / steel bottle  Pencil box  Pencil pounce  Lunch box Types of customer:- Yellow Spark International gets order from e-mail. Three types of customer:- 1. Online: School card, YoScholar, Flipkart etc. 2. L. E. S. (large form store): Malls, etc. 3. G.N. (general store): Retailer. Online orders & L.E.S. orders are get in proper purchase order format by e-mail. But L.E.S. purchase order have specific discount + V.A.T. are given by customer as well as purchase order date & expiry date also given by customer. The purchase orders which get from the e-mail are punch through the E.A.N. (European Article Number) of the products.
  • 34. 34 2.3 Competitor analysis Robinsons Cargo and Logistics Pvt. Ltd Robinsons Cargo and Logistics Pvt. Ltd is one of the leaders in providing air, sea and logistic services since 1954. Our vision is to be “India’s No 1. Cargo and Logistics Company by 2020 – with continued values, integrity and commitment to deliver the highest quality of service. Traditionally with the best business practices, time defined products, customer orientation and efficient supply chain management, Robinsons remains committed with a team of 600+ employees in over 45 warehouse locations and 18 branch offices across the country. Robinsons is an ISO 9001:2008 certified company and is also accredited with IATA MTO & FIATA certifications. With their headquarters based in Mumbai and offices across all major cities in India, Robinsons is affiliated to over 110 international logistics providers through the WACO network (World Air Cargo Organization). The service offerings of the company encompass efficient processes, making Robinsons an end to end logistics service provider. Robinsons is a IATA/FIATA certified company offering supply chain solutions through our affiliation with over 110 international logistics providers through the World Air Cargo Organization (WACO) network. We have own Custom House Agent (CHA /Customs Broker) licence to facilitate customs clearance.
  • 35. 35 Indo Arya 1974, that’s when it all began, nearly four decades ago, Arya’s Central Transport of India Pvt. Ltd. with a mission to cater to the complex transportation needs of the Indian Industries, began a story that is still being written today. Now we are known as Indo Arya and have become a leading integrated logistics service provider that is equipped to give tailor made solutions to the varied needs of clients combining all three modes of transportation – Air, Surface and Sea. With an acknowledged high quality network, extensive coverage and persistent trust, IndoArya endeavors to maintain highest standards and achieve total satisfaction of its customers. Now we are 285 offices across the length and breadth of the working with a dedicated work force of more than 1800 people.
  • 36. 36 DB Schenker opens logistics centre in Bhiwandi, Mumbai, India Schenker India, a part of DB Schenker, the transport and logistics division, has embarked on an aggressive growth strategy and opens its second largest warehouse in India. The company has opened its biggest warehouse in India at Bhiwandi, Thne. The 172,841 square feet facility has a staff of around 60 people with state-of-the-art warehousing operations for palletised and non-palletised cargo to the city and nearby areas. DB Schenker says its customers in the western region of India will now be served with a shorter response time, availability of products and seamless last mile deliveries to the destinations. Strategically located off National Highway No. 3 (Mumbai-Nashik Highway), the logistics centre features uninterrupted power back- up, advanced warehousing management and distribution system; enabling convenient end-to-end logistics solutions and value-added services.× The new warehouse management system facilitates customers with analysis of product supply, forecast and demand fulfillment, real-time data input, interface capabilities, web order placing, and many other customized functions ensuring a better visibility through the supply chain process.
  • 37. 37 KD Supply Chain Solutions Pvt. Ltd. KD Supply Chain Solutions Pvt. Ltd. is a leading end-to-end supply chain management (SCM) solutions provider in India. We offer comprehensive services for warehouse management, integrated logistics, freight forwarding, etc. Since our humble beginnings in the 1990s, we have grown continuously and created a significant presence across India with a very strong network in the western and northern regions. Our growth is fuelled by our passion. Our clients trust us for delivering efficient and effective supply chain services. From transportation to warehousing and inventory management to other value-added services, the company is equipped to cater to clients across sectors. The organization also efficiently manages and supports customized ERP systems. We have set up integrated logistics parks in strategic locations across the country, allowing us to cater to our clients’ business requirements better. We take pride in the fact that our clients consider us a partner of choice for integrated logistics solutions.
  • 38. 38 Mahindra Logistics Mahindra Logistics was founded as a strategic initiative to enhance focus on logistics services to both internal and external customers. Mahindra's complex supply chain needs, including inbound and outbound logistics, inter- plant movement, warehousing, linefeed, freight forwarding and value added services among other solutions were taken care of, by MLL. Today, we serve over 200 large corporate clients across various industries and operating verticals. Brand Philosophy - RISE We aim to drive positive changes in the lives of all our stakeholders and in the communities in the three most innovative ways:  Challenging Conventional Thinking: Be it our thoughts or our actions, we accept no limits. We believe in challenging the conventional beliefs and Rise above them.  Innovative Use of Our Resources: In our attempt to Rise, we seek to use our resources in the most innovative manner. This, we believe, will drive us forward.  Enabling People to Rise: We believe in making a positive change in our stakeholder’s lives. Be it the employees, partners or customers, our actions and their outcomes will always enable them to Rise in their lives. Simply put, Logistics is the business of managing, transporting and delivering goods! At Mahindra Logistics Limited, we realize this very well. We are determined to create a logistics system that is unique in nature and robust in its infrastructure, yet flexible enough to suit the needs and demands of our customers.
  • 39. 39 Mahindra Logistics aims to rise in all its initiatives with unique solutions to serve good warehousing, transporting and to people transport needs. Therefore, our Manifesto – CORE is  It is the place where we belong.  We do all it takes to keep your business moving.  We are at the core of on time deliveries and optimized assembly lines.  We are at the core of complex supply chains.
  • 40. 40 Delhivery Private Limited (Bhiwandi Gateway) The digital supply chain opportunity in India is expected to be larger than $100 billion in the next five years. With a maturing Indian digital ecosystem coupled with faster technology adoption we expect Indian businesses to fundamentally alter the manner in which they transact. To cater to this increase in demand, we are looking for partners to help meaningfully extend Delhivery's network and capabilities in warehousing, transportation and technology. We currently cover over 9000+ pincodes across 800+ cities. As India's largest digital fulfillment company having processed over 150M orders to date, we will be glad to partner with last mile delivery companies, fleet owners, sellers, warehouse owners and technology companies who share our vision of fulfilling India's online consumption demand. Benefits  Become a part of India's largest digital fulfillment platform, Delhivery  Improve utilization of your existing assets or start a new business  Scale rapidly through access to Delhivery's proprietary technology and data sciences platforms
  • 41. 41 KerryIndev Logistics Pvt. Ltd. KerryIndev Logistics Pvt. Ltd., - as a Total Integrated Solution understands the trade and requirements of its customers. KerryIndev evolved itself as 3PL company with its top-notch 3PL warehousing operations at Pan India Level - Chennai , Mumbai , NCR , Bangalore, Madurai and growing on... The business model on 3PL warehousing operations encompasses on multi – clients and multi- products which shared infrastructure and resources. KerryIndev as a 3Pl warehousing service provider focuses on the following types of services:  Storage  Distribution  Consolidation  Value - Added - Services (VAS)  WMS based Inventory Management System  Agreed SOP / KPI / SLA and Structured MIS KerryIndev’s 3PL warehousing model completely focuses on “ Multi customer and multi product ” which is fixed and transactional based costing for both the inbound ( receiving, put away ) and outbound ( processing customer orders, order-picking, checking, packing and shipping ) agreed SLA, KPI and SOP. KerryIndev also focuses on “total visibility of Inventory Management by our WMS ” which enables quick and accurate responses to customers demand with well experienced and trained manpower in multi verticals.
  • 42. 42 Chapter – III Review of Literature
  • 43. 43 3. Review of Literature 3.1 Meaning and Concept of the Topic Warehouse managementprocess Fig. 3.1 Warehouse management process ( R.T.V.= Return To Vendor , G.R.N.= Goods Receipt Note, Q.C.= Quality Checking. ) WAREHOUSE Inbound Outbound Undertaking Sorting / Q.C. Sales under purchasing Picking Q.C. / Packing Delivery note Tax invoice Packing list G.R.N. Putaway Putting entry in system Q.C. Reject Good inventory R.T.V. Dispatch G.R.N. Up-dative
  • 44. 44 INBOUND TO OUTBOND PROCESS When any products undertakes it will be check and sorting by their quality and quantity i.e. quality check with their bar code number of products. After the quality checking good inventory and Q.C. rejected products are separated and Goods Receipt Notes are prepared. The Q.C. reject products will be return to vender. After G.R.N. of the products are put away. And update the entry in system of new product by G.R.N. In outbound process the sales under purchase are picking. After an order has been picked, it has to pack and before packing the products will check by Q.C. Then the delivery notes are prepared which explain what the contents of a package are. After this tax invoice are prepared by a registered dealer to the amount of tax payable. Then the packing list will be prepared. It usually include in each shipping package, giving the quantity, description & weight of the content. And dispatch the products by their order numbers after this in system G.R.N. are updated.
  • 45. 45 3.2 Basic theories of the Topic 3RD PARTY LOGISTICS WAREHOUSE MANAGEMENT PROCESS INWARD TO OUTWARD which follows by origin logistics warehouse Inward – SOP 1.1 Steps:- 1) Vehicle Driver report at plant and show the invoices for verification to security. 2) Security verified all document and after correct confirmation he inform to concern person in Rehau & also take details in reported register and Inward register. 3) Floor supervisor will verify all documents & material and after that he will unload all the material with the support of Labours at Inward area. 4) Floor supervisor verified all material with Invoice quantity. 5) After verified invoice supervisor will handover to Executive for GRN in system. 6) Executive will check material final count he will sign in invoice copy and supervisor will also sign for to take GRN in system & record purpose. 7) Once GRN done in system Executive will inform to all CCS team members through mail and take relevant action. 8) After GRN Supervisor will move material to as per given location. 9) Executive will file all invoice & relevant document for record purpose. 1.2 For Import Shipment:- 1) 1st & 2nd point is same as above. 2) Executive first will check Seal with container and take photos. 3) Executive will open seal and after he will verify material inside the container and take photos. 4) Executive will inform to supervisor for unload vehicle. 5) Supervisor will unload vehicle with the support of labours. 6) Supervisor will check material with Invoice at Inward location area and after verify that he will handover to Executive.
  • 46. 46 7) Executive will check final count of all material and after that he will give all document scan copy to Mr. Kedar sir (He is taking care Import shipment GRN ) for GRN purpose in mail and also share the photos which you taken at the time opening container. 8) After GRN Executive will check system record with invoice. And also after GRN Executive will inform to supervisor for move material as mention location. 9) After GRN he check the file all documents for record purpose. 10) Executive can also use forklift after 3rd point, If material is weighted then he can use forklift for unload purpose henceforth all procedure is same. 11) Executive will take approval for forklift use & also save details for account purpose. 1.3 For Short & Damage Shipment Inward in STN:- 1) If Supervisor will found short shipment in STN then he will inform to Executive & WH In-charge. 2) Executive will take action and right mail to all concern person like CCS, STN Team, Consigner & relevant team etc, 3) If the short shipment found at consigner side on mail communication then writhen back information wants to confirm from consignee on mail. 4) If material received short from Transporter, Then Executive will write mail to Transporter, Consigner, CCS & relevant officers. 5) If material lost from Transporter then All Sr. Person in Rehau raise bill against Transporter name and settle down the issue. 6) If material received damage condition Supervisor will inform to Executive. 7) Executive will take photo and right mail to Transporter, consigner & Rehau relevant officer. 8) Once confirmation received from Rehau Officer. We will take action as per as per Rehau officer instruction. 9) Executive will update these details in daily report which was given by Rehau & also maintain record in Excel. Executive will follow-up on daily basis till the resolve. 10) After resolve issue Executive will keep this record in filling.
  • 47. 47 Outward 2.1 Outward:- 1) Order received from CCS by mail on daily basis, Executive will check. 2) Every order he check Executive will check whether release or not, if order release then he will generate pick-list and handover to Supervisor after Data input in excel. 3) If order not release then Executive will keep data in mention format and after that he will send for release as mention format on mail. 4) Once order release Executive will get information on mail after that he generate pick-list and handover to supervisor after data input in excel. 5) Supervisor pick material with labours and move that material to Outward location. 6) After picking picker will sign on order and handover to supervisor. 7) Supervisors will handover to Executive for billing. 8) Executive will this order in SAP as mention code. 9) After billing he will keep data as mention format. 10) Executive will handover this Invoice to Supervisor for 2nd check. 11) Supervisor will check this invoice as per the order and material as mention at Outward area. 12) After 2nd check supervisor will handover to Executive for final check. 13) Executive will collect all invoices and he will check final at outward location and after check he will move material to dispatch area. 14) Dispatch area material all invoices supervisor will do entry in PDC challan file. 15) After entry in PDC challan supervisor will handover all invoices to Security for Outward entry. 16) Executive will collect all Triplicate copy with security in his custody for record purpose. 17) Executive will check all outward invoices with his Excel for confirmation. 18) After confirmation Executive will collect LR with transporter. 19) After all attached with invoices & and also segregate all invoices with invoice number series and file that with invoice series. 20) After all order process Executive will check whether we not missed any order in mail.
  • 48. 48 2.2 If MaterialDispatch Short & Damage:- 1) If materials send short Consigner we will get information through Consignee, Sales man, CCS & Rehau sales officer etc via Mail. 2) Once mail received against Short supply, Executive will verify that stock. 3) If material found at WH then Executive will inform to consignee and send that short material to consignee on urgent basis. 4) Damage material should not be send to any customer.
  • 49. 49 Cycle Count 3.1 Cycle Count Step:- 1) Executive will plan in a day 20 article with proper count with whole details. 2) Executive will give all details to Supervisor with cycle count details. 3) Supervisor will count this article stock with 1 Labour as per given time line. 4) Supervisor will give all details with proper format to Executive. 5) Executive will update details with given format and take printout. 6) After Printout Executive will take Authorised person sign Like Supervisor – Executive – WH In-charge – WH Manager. 7) After all authorised sign Executive will file this all documents for record purpose.
  • 50. 50 Reports 4.1 Steps For Reports:- 1) Executive will update 2 reports in day and also on daily basis. 2) 1st report which is called Daily report please see below screen shot in this report cover all Inward & Outward details, 3) 2nd report which is called daily update report which is covered Outward daily details, 4) Executive share 1st report on daily basis to all Seniors. 5) Executive is maintain 1st report to understand all Rehau officers witage of the work in WH. 6) Executive maintain 2nd report for knowledge and also do not missed out from his as well as from Floor picker. This standard process ofOrigin logistics private limited which is follows by there all 3 customers.
  • 51. 51 SYSTEM WORKIN 3RD PL WAREHOUSE MANAGEMENT follows by Origin logistics private limited which is follows by there all 3 customers How prepare invoice? Fig. 3.2 First orders are received by mail with order number. After this orders the stock available or not are checks and they will inform their stock availability or pending orders to customers. Confirmed orders through the customer are reserved by their order numbers. When customers will pay their payment of orders the invoice will be prepared by their order number.
  • 52. 52 Fig. 3.3 After the receiving mail order the invoice prepared with help of SAP (SAP code /nva02). The order numbers enter or copy paste in SAP order.
  • 53. 53 Fig. 3.4 SAP is useful softeware because of SAP the bases of only orders number the all information are copy in SAP. It help to identify the remaining quantity of materials with the description of products and their value / net value. It helps to generate invoice.
  • 54. 54 Fig. 3.5 After order conformation of custommers the invoice prepared with help of SAP as shown in fig. 3.4. SAP gives the all information of product like their quntity with their price and their total amount i.e., net value of product with Excise 23D, Ed Cess, H& C Cess SAD, VAT (13.50%).
  • 55. 55 Fig. 3.6 When manufacturer`s are transport the materials to the warehouse they prepared the manufacturer`s invoice as shows in fig.3.5.
  • 56. 56 3.3 Review of Research on the selected Topic 3PL Warehouse Management Reasons to use a 3PL provider There are a multitude of benefits companies by outsourcing supply chain management to value-added 3PL. Third party logistics offers an all in one solution for assembly, packaging and distribution. Utilizing a 3pl provides businesses with a reliable advantage and maximizes profitability through combined knowledge and resource. 1. Resource network Third party logistics providers have a vast resource available that provides advantages over in-house supply chains. Using a 3PL`s resource network, each step in the supply chain can be executed in the most efficient, cost effective way. 3PL can leverage relationships and volume discounts, which results in lower overhead and the fastest possible service. Choosing a 3PL provider allows your company to benefit from resources which are unavailable in-house.
  • 57. 57 2. Save time and money Outsourcing logistics will save a wealth of time and money for your company. Using a 3PL provider eliminates the need to invest in warehouse space, technology, transportation, and staff to execute the logistics process. 3PL providers can save from costly mistakes, and allow your business to build a global logistical network with lower risk and higher return. 3PLs save your time which needed to carry out the supply chain. There is no need to worry about the paperwork, billing, audits, training, staffing and optimization involved to get your goods where they need to go. 3. Expertise 3PL are knowledge of industry best practices and stay up to date with the latest developments in technology. 3PL software is capable of advanced reporting, inventory management and provides visibility to monitor the entire process. 3PL employ Just In Time practices to ensure the correct amount of inventory is shipped when and where you need it. Outsourcing logistics allows your company to focus on your core competencies, and leaves the rest to the experts. 3PL services will allow you to have peace of mind knowing your logistics needs are being handled by reliable, seasoned professionals. 4. Scalability and flexibility A benefit of using a 3PL provider is the ability to scale space, labor, and transportation according to inventory needs. Business with seasonal periods can enjoy stress free transpositions between industry ups and downs, having the ability to utilize more space and resources when needed so focused on flexibility of customer demand. Using a 3PL provider allows your business to grow into new regions without barriers. 3PL provider have distribution centers and warehouses strategically located to allow for quick shipping of goods to anywhere in the world. Decentralized distribution offers lower costs, and provides quicker delivery times.
  • 58. 58 5. Continuous optimization 3PL providers have the resources at hand to make adjustments and improvements to each link in supply chain. 3PL professionals will ensure your needs are met, by using the fastest, most efficient, and effective methods. 3PLs have tools to restructure the supply chain, and use technology that ensures the proper amount of goods arrives when and where you need them. Sophisticated management software can analyze and monitor practices to eliminate inefficiencies and streamline the supply chain. Outsourcing 3PL services will ensure continuous improvements are made to your logistics process. Third Party Logistics providers can help maximize profits, reduce wait time, and improve customer service.
  • 59. 59 Just In Time (JIT) Inventory management is one of the most basic, yet important concepts in an efficient manufacturing process. It is a prime example of how good supplier relationships are vital to an efficient manufacturing supply chain. Commonly used as a method for improving efficiency and minimizing cost by third party logistics companies, a JIT inventory strategy is one of the primary benefits provided by Manufacturing Support Services companies. Just In Time requires tight coordination between production and vendors for it to work right. Under JIT, raw materials, parts, and components are ordered and delivered just as they are needed for producing finished goods. The concept can extend further up the supply chain to include sub-assembled parts as well. In simple terms, the just in time inventory management technique reduces inventories of raw materials, work in progress, and finished good to almost zero. The parts do not arrive earlier or after they are required; but they arrive just as they are needed.
  • 60. 60 3PL’s warehouses use JIT as a strategy to provide several specific benefits to their clients beyond just cost reduction and enhanced efficiency. These additional benefits are realized through: 1. Having little or no inventory levels means that holding costs (such as warehouse space) and carrying costs are minimized. 2. Funds that used to be tied up in inventory are freed up and can be used elsewhere. 3. Space previously used for holding inventory can be used for more productive uses. 4. Under Just In Time, production setup time is reduced resulting to quicker response time to client’s needs. Also, greater output potential is realized when firms switch to JIT. 5. Obsolescence rate is decreased since raw materials and goods are not held for long. Further, risks such as damage of inventory by fire or theft are eliminated. MINIMUM INVENTORY MAXIMUM PROFIT MAXIMUM ORDER
  • 62. 62 4.Research methodology Research methodology is a way to systematically solve the research problem. In this we study the various steps are that generally adopted by a researcher in studying his research problems along with the logic behind them. It is necessary for the researcher to know not only the research methods but also the research methodology. The scientific method is one and same from branches of scientific method is pursuit of truth as determined by logical consideration. The research must examine all available literature to get him acquainted with the selected problem. The task of data collection begins after a research problem has been defined as research design check out. While deciding about the method of data collection to be used for the study, the researcher should be keep in mind two types of data, they are a) Primary data b) Secondary data 4.1 Primary data Primary data are those, which collected afresh and for the first time this happen to be original in character. Primary data can be obtained either through observation or through direct communication with respondents is one form or another through personal interview. Here I have collected various information through personal conversation with manager and staff of the organization`s. 4.2 Secondary data Secondary data means the data that are already been collected by someone and which have already been pass through statistical process. Secondary data is needed for proper interpretation of primary data. For this study secondary data are collected from website, journals, booklets, broacher and various books from management. Here secondary data`s are collected from various records such as by the record book of PO and DN of materials, annual report, audit report.
  • 63. 63 4.3 Method of data collection: This data collected by Observation method. Observation is act of recognizing and nothing facts or occurrences. No questions are asked in data collection. This data collected from the Origin logistics private limited. Observation methods involves systematically watching and recording what people say and do, so I observed day to day activity of warehouse and try to understand warehouse management and problem in warehouse management. 4.4 Area of research The research was done in Origin logistics private limited, Indian Corporation, Building No.181, Dapode, Bhiwandi, Thane, Maharashtra, 421302. 4.5 Data analysis In order to analyze the process of warehouse inbound to outbound. Methods of presentation While the presenting the data both primary and secondary data used. Charts are also used at relevant places apart from tables. Tools for analysis The tools used for analysis are tables and charts which help in simplifying the large data, graph made a visual appeal to prove to be more impressive. The analytical tools used in the study are graphs, charts, tables and percentage analysis. Tools used  Bar diagram  Pie diagram
  • 64. 64 Chapter - V Data Processing and Analysis
  • 65. 65 5. Data analysis 5.1. Details of employees Details of employees Percentage Permanent 60% Outsourced 40% Table 1 Chart 1 This chart and table shows the details of employee`s job. Around 60% of the employees working here are permanent and around 40% of the employees working here are outsourced employees. 0 10 20 30 40 50 60 70 Permanent Outsourced Details of permanent emplyees & outsourcedemployees Percentage
  • 66. 66 5.2. Problems in warehouse Problems in warehouse Percentage Dust problem 68% Labor problem 20% Space 5% Safety 7% Table 2 Chart 2 This chart and table shows the details about the main problems faced in this warehouse. The main problem faced here is dust problem. Also 20% problem is due to labour issues. Less than 10% of the problem is due to space and safety issues. Mainproblems inwarehouse Dust problem Labour problem Space Safty
  • 67. 67 5.3. Goods handling facility Goodshandlingfacility Percentage Good 80% Average 15% Bad 5% Table 3 Chart 3 This graph shows that most of the customers are the satisfied with the perishable goods handlingfacilitiesinthiswarehouse. 0 10 20 30 40 50 60 70 80 Good Average Bad Goods handling facility Customers satisfaction
  • 68. 68 5.4. Fire fighting and other safetyfacility Fire fighting safety Percentage Good 85 Average 12 Bad 3 Table 4 Chart 4 In this graph we are able to see that fire fighting and safety measures adopted by this firm are very good. Most of customers are satisfied with this facility. 0 10 20 30 40 50 60 70 80 90 Good Average Bad Goods handling facilities Percentage
  • 69. 69 5.5. Customer satisfaction Customer satisfaction Percentage High 88% Average 10% Low 3% Table 5 Chart 5 This graph we are able to see that customer satisfaction is very high in the case of warehouse facility like the space and handling equipment etc. Customersatisfaction High Average Low
  • 71. 71 6.Findings  Warehouse space has being allotted using computerization.  The entire warehouse operations under 24/7 CCTV surveillance and security guard.  Racking system in warehouse is available.  Less numbers of handling equipment like Forklifts in each warehouse.  Fire and safety measures are fully operational.  Most of the customers agree that 3PL warehouse providers are approachable, easy to contact, complete a task by certain deadline.  Canteen facility not available.  Warehouse is fully enabled with latest logistics software’s like SAP.  Need to train for workers about the proper handling of material as well as warehouse equipment.  Also need training of warehouse safety, since they are not aware about it.  Proper identification for location is needed to avoid any mismatch or misplace of material.  To understand the concept of 3rd party logistics, various operation s in 3rd party logistics.  Help to understand the warehousing, inventory management and damage control.  Time management.  Material is not properly stack as per standard stacking norms it resulted in damage of material.
  • 73. 73 7.Recommendation  Provide more handling equipment like forklifts for handling of heavy materials.  Increase the warehouse spacing also proper utilization of space.  Provide separated ‘GATE IN’ and ‘GATE OUT’ facilities.  Find some solutions to reduce the heat in warehouse and provide better working facilities for the warehouse workers.  Need to take training about safety awareness in warehouse for workers.  To avoid damages of material the annual maintenance of warehouse especially in rainy season is must. .  To avoid mismatch or misplacing of material paste sticker on location if required it will help in easy identification.  Canteen facility not available for workers as well as staff so arrange canteen facility or separate place for lunch.  Need to conduct award & recognition program quarterly to motivate workers as well as staff to improve their dedication towards work. It will resulted in better results.
  • 75. 75 8.Conclusion By doing this project the researcher was able to understand all the basic working of a warehouse. Inventory handling is the most important part of warehouse management. Many types of equipment like forklift and stackers are the most commonly used tools for inventory handling in most of the warehouses. These facilities are curtailed due to the day by day demand of this field/ sector. There is high potential for this company in the future due to the high customer satisfaction provided by company. Warehouse strategy is evolving to more focus and flexibility. The main objective of this project report is to get practical knowledge of warehouse process and functions. It help to study the warehousing, inventory management and damage control as well as understand 3PL’s warehouse management use JIT as a strategy.