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1
Tender for logistics outsourcing of JP
Carré activities
Logistics Course - Marvyn, Cheick, Edouard, William, Giacobbe
Our Company
Jacobs Logistics, is a company created in 1995 and specialized in warehousing systems for food
companies.
We provide a wide range of solutions for medium and large companies, and mainly serve as an intermediary for
storage and order preparation, straddling the production lines of companies and the delivery of their customers
(stores, supermarkets).
Our Key Partners
2
Agro companies Retailers
Localisation / Cost of the Warehouse
In order to be in a strategic location for
JP Carré and its Albanian and German
suppliers, and its customers, spread all over
France, we chose to locate the warehouse in
the North of France, in the city of Arras.
Cost of the warehouse :
- 8731 square meters x 42€ (Cost of rent) =
366 708,72 €
3
Warehouse Director
2x Handlers
Manager
2x Operators
Manager
25x Operators
100x Order Pickers
10x Handlers
3x Admin / Control
Operators
2x Admin /
Control Manager
2x Order picker
Manager
4
Warehouse organization chart
4x Team Leaders
The total human need for the warehouse operations is estimated to : employees
- This number is equivalent to the needs of the most prolific month in terms of reception: the month of April.
- The part related to the preparation of orders, can be outsourced depending on the month, with our partner interim
companies.
Flow Diagram
2 600 homogeneous
pallets
9 544 pallets
3 100 pallets
290 000 packages
10 050 pallets
6 000 pallets
7 450 reconditioned
homogeneous pallets
558 750 bulk packages
5
Reception
Stocking
Restock
Preparation
Expedition
6
Customers Orders
Transmitted by EDI
Scheduling
Homogeneous pallets preparation
Restock
Picking restock
Initialization of the preparer
Assignment of the preparation support
Move to picking address
Wave formation & transport plan
Launching order preparations
Creation of preparation materials
Prioritisation of preparations & transport plan
Initialization of the forklift operator
Proposal of the storage address
Move to storage address
Lowering of pallet/ RFID reading
Move to picking address
Validation of the pallet (deposit)
Pallet unstacking
Initialization of the forklift operator
Proposal of preparations
Move to the address
Pick up of the pallet
RFID reading of the pallet
Move to the dock
Validation of the pallet deposit
Preparation
Diagram
Part 1
7
Packages preparation
Provision of pallets prepared by carrier
Arrive from the carrier
Guard post
Docking of the carrier
Loading and expedition
Carrier check
Pre-shipment
Directing the carrier to the docks
Initialization of the agent on the platform
Optical reading of the label
Optical reading of the dock door
Loading of the prepared pallet
End of loading
Closing the doors
Editing of documents
Real-time order dispatch validation
Signing off and handing over documents to
the driver
Preparation
Diagram
Part 2
Security
The following is a list of safety equipment that may be needed in a
warehouse handling canned and liquid food products:
- Personal protective equipment (PPE): protective masks, safety
gloves, safety glasses, safety shoes, hard hats, etc.
- Safety signage: signs indicating traffic areas, loading/unloading
areas, storage areas, etc.
- Fire suppression equipment: fire extinguishers, fire blankets, etc.
- First aid equipment: first aid kit, bandages, dressings, etc
- Safe handling equipment: forklifts in good condition, pallet trucks,
hand trucks, etc.
8
ISO Norms
A lot of ISO norms are mandatory to the good management of a warehouse. The most used ones are :
● ISO 9001:2015 : specifies the requirements for a Quality management system (QMS).
● ISO 14001:2015 : specifies the requirements for a Environmental management system(EMS)
● ISO 45001:2018 : specifies the requirements for health and safety management system (QH&S)
● ISO 28001 and 28004 : specifies the requirements and guidances for organizations specialised
in Supply Chain
● ISO 22000:2018 : specifies the requirements for a food management system (FMSM) for
organizations involved in the food chains
There are also more specialized ones we will use such as :
● ISO 20909:2019 : specifies the requirements for the use of RTLS/RFID.
● ISO 2330:2002 : specifies the manufacturing, testing and marking requirement for solid-section
fork arms.
● ISO 13638:2003 : specifies technical safety requirements and measures for all types and sizes of
mobile elevating work platform.
9
A constraint : Imperative FIFO management
The "FIFO" storage method stands for "first in, first out" and involves using
the storage system so that the products that were received first are also the first to
be shipped. This ensures that products don't sit in inventory too long and are used or
sold before their expiration or best before date.
Here are some steps to follow the "FIFO" storage method in a warehouse:
- Identify products that have limited expiration or validity dates. These
products should be stored so that they are used or shipped first.
- Use shelving or racking that allows products to be stored so that the oldest
products are placed at the front or top, so that they are easily accessible and
used first.
- Organize your orders so that products that were received first are shipped
first. If you use computerized inventory management systems, make sure
you set up the software to follow the "FIFO" method.
- Regularly monitor your inventory and its expiration or "best before" dates to
ensure that products are used or shipped before their expiration date.
10
Shelving solution adapted to FIFO
- PROPAL 3, made by Provost
- 6 floors
- 1750 shelves
Why ?
- It suits pallets up to 6000 kgs/level.
- Necessary amount of shelves for whole refs
Total cost of the solution :
- 1 shelf (6 pallets) cost : 596,9+119,7*3= 956€
Needs 291 shelves = 291x956 = around 278 000€
11
PROPAL 3 (in detail)
12
13
Quay 1 (reception)
Quay 2 (reception)
Quay 3 (expedition)
Quay 4 (expeditions of
urgent orders prioritary)
Storage area
Drivers
control
Picking area
Preparation &
fulfillment area
Preparation area of
urgent orders
Warehouse plan
Ground surface needed
14
TYPOLOGY SQM
Reception (quay) 1680 3
Expedition (quay) 2240 3 + 1 for urgent orders
Labeling + Filming zone 301
Storage Area 3100
Mass storage Area 1000
GROUND SURFACE (SUBTOTAL)
8321
Technical part 200
Offices 150
Social 60
TOTAL 8731,16 sqm
TOTAL IN € 366708,72€ 42€ per sqm
RFID system
RFID (Radio-Frequency Identification) is a wireless
communication technology that uses radio frequencies
to identify and track objects. In a warehouse, this can be
used to track products, containers and equipment using
RFID tags or RFID labels.
The data collected can be used to improve
inventory management, product traceability and
operational efficiency.
RFID technology enables automatic identification
of objects, which allows for faster and more accurate
data collection than manual methods.
15
RFID System in the warehouse
16
RFID
labeling
Storage Picking Expedition
Reception
RFID Scan
Typology Price
Labels 0,06€ per label
x 100 000
Scanner 300€ x 50
TOTAL 21 000€
Benefits :
- Compatible with ERP systems
- Quick and efficient inventory
- Better supply chain
- Easier reporting thanks to KPIs
17
WMS: Warehouse Management System
The WMS is a software mostly use in warehousing. It
confers you an overview on the entire warehouse
activity.
● We are going to use “Manhattan” as a WMS, in
accordance to his easy connexion to our RFID
solution.
Benefits :
- 40% increase of stockage
capacity
- 30% decrease of the
manutention operations
- 99% elimination of errors
18
Enterprise Resource Planning: ERP
Enterprise resource planning (ERP)
refers to a type of software that
organizations use to manage day-to-
day business activities.
● We are going to use SAP.
Benefits :
- Cost saving
- Supply chain management
- Improve inventory cost
- Better data and cloud security
Reporting
● Reporting will be done on a weekly basis, and twice a week on peak
periods (Christmas, summer…).
● Examples of KPIs in order to animate our flows, and always be more
efficient :
- Inventory and stock turnover
- Average time of an order preparation
- Picking accuracy
- Storage utilization (in %)
- Drivers arrival and departure (accuracy of hours)
● From those KPIs, a dashboard will be created, in order to have a great
visualization = using a tool such as Qlik or Tableau
19
Distribution of costs
20
Storage solution =
278 000€
Warehousing =
366 708€
Human cost =
225 450€
RFID solution =
21 000 €
First Month
Acquisition
Forklifts =
77 946 €
Internal tools =
18 095€
Variable costs =
12 888€
Total cost =
1.000.088 €
Per month
Monthly cost =
623 141€
Annual cost including
acquisitions
Annual cost = 7 854 638 €
Pricing
By taking in account
- A annual cost of 7 854 638 €
- A margin of 30 %
We can decide of an average price of 10 211 029,4 €
21
Conclusion
● Our offer will propose a innovative proposition. RFID technology will be a major
component of our offer and it will gives us a major advantage in term of time
and efficiency.
● Price = 10 211 029 €.
22

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JP Carré

  • 1. 1 Tender for logistics outsourcing of JP Carré activities Logistics Course - Marvyn, Cheick, Edouard, William, Giacobbe
  • 2. Our Company Jacobs Logistics, is a company created in 1995 and specialized in warehousing systems for food companies. We provide a wide range of solutions for medium and large companies, and mainly serve as an intermediary for storage and order preparation, straddling the production lines of companies and the delivery of their customers (stores, supermarkets). Our Key Partners 2 Agro companies Retailers
  • 3. Localisation / Cost of the Warehouse In order to be in a strategic location for JP Carré and its Albanian and German suppliers, and its customers, spread all over France, we chose to locate the warehouse in the North of France, in the city of Arras. Cost of the warehouse : - 8731 square meters x 42€ (Cost of rent) = 366 708,72 € 3
  • 4. Warehouse Director 2x Handlers Manager 2x Operators Manager 25x Operators 100x Order Pickers 10x Handlers 3x Admin / Control Operators 2x Admin / Control Manager 2x Order picker Manager 4 Warehouse organization chart 4x Team Leaders The total human need for the warehouse operations is estimated to : employees - This number is equivalent to the needs of the most prolific month in terms of reception: the month of April. - The part related to the preparation of orders, can be outsourced depending on the month, with our partner interim companies.
  • 5. Flow Diagram 2 600 homogeneous pallets 9 544 pallets 3 100 pallets 290 000 packages 10 050 pallets 6 000 pallets 7 450 reconditioned homogeneous pallets 558 750 bulk packages 5 Reception Stocking Restock Preparation Expedition
  • 6. 6 Customers Orders Transmitted by EDI Scheduling Homogeneous pallets preparation Restock Picking restock Initialization of the preparer Assignment of the preparation support Move to picking address Wave formation & transport plan Launching order preparations Creation of preparation materials Prioritisation of preparations & transport plan Initialization of the forklift operator Proposal of the storage address Move to storage address Lowering of pallet/ RFID reading Move to picking address Validation of the pallet (deposit) Pallet unstacking Initialization of the forklift operator Proposal of preparations Move to the address Pick up of the pallet RFID reading of the pallet Move to the dock Validation of the pallet deposit Preparation Diagram Part 1
  • 7. 7 Packages preparation Provision of pallets prepared by carrier Arrive from the carrier Guard post Docking of the carrier Loading and expedition Carrier check Pre-shipment Directing the carrier to the docks Initialization of the agent on the platform Optical reading of the label Optical reading of the dock door Loading of the prepared pallet End of loading Closing the doors Editing of documents Real-time order dispatch validation Signing off and handing over documents to the driver Preparation Diagram Part 2
  • 8. Security The following is a list of safety equipment that may be needed in a warehouse handling canned and liquid food products: - Personal protective equipment (PPE): protective masks, safety gloves, safety glasses, safety shoes, hard hats, etc. - Safety signage: signs indicating traffic areas, loading/unloading areas, storage areas, etc. - Fire suppression equipment: fire extinguishers, fire blankets, etc. - First aid equipment: first aid kit, bandages, dressings, etc - Safe handling equipment: forklifts in good condition, pallet trucks, hand trucks, etc. 8
  • 9. ISO Norms A lot of ISO norms are mandatory to the good management of a warehouse. The most used ones are : ● ISO 9001:2015 : specifies the requirements for a Quality management system (QMS). ● ISO 14001:2015 : specifies the requirements for a Environmental management system(EMS) ● ISO 45001:2018 : specifies the requirements for health and safety management system (QH&S) ● ISO 28001 and 28004 : specifies the requirements and guidances for organizations specialised in Supply Chain ● ISO 22000:2018 : specifies the requirements for a food management system (FMSM) for organizations involved in the food chains There are also more specialized ones we will use such as : ● ISO 20909:2019 : specifies the requirements for the use of RTLS/RFID. ● ISO 2330:2002 : specifies the manufacturing, testing and marking requirement for solid-section fork arms. ● ISO 13638:2003 : specifies technical safety requirements and measures for all types and sizes of mobile elevating work platform. 9
  • 10. A constraint : Imperative FIFO management The "FIFO" storage method stands for "first in, first out" and involves using the storage system so that the products that were received first are also the first to be shipped. This ensures that products don't sit in inventory too long and are used or sold before their expiration or best before date. Here are some steps to follow the "FIFO" storage method in a warehouse: - Identify products that have limited expiration or validity dates. These products should be stored so that they are used or shipped first. - Use shelving or racking that allows products to be stored so that the oldest products are placed at the front or top, so that they are easily accessible and used first. - Organize your orders so that products that were received first are shipped first. If you use computerized inventory management systems, make sure you set up the software to follow the "FIFO" method. - Regularly monitor your inventory and its expiration or "best before" dates to ensure that products are used or shipped before their expiration date. 10
  • 11. Shelving solution adapted to FIFO - PROPAL 3, made by Provost - 6 floors - 1750 shelves Why ? - It suits pallets up to 6000 kgs/level. - Necessary amount of shelves for whole refs Total cost of the solution : - 1 shelf (6 pallets) cost : 596,9+119,7*3= 956€ Needs 291 shelves = 291x956 = around 278 000€ 11
  • 12. PROPAL 3 (in detail) 12
  • 13. 13 Quay 1 (reception) Quay 2 (reception) Quay 3 (expedition) Quay 4 (expeditions of urgent orders prioritary) Storage area Drivers control Picking area Preparation & fulfillment area Preparation area of urgent orders Warehouse plan
  • 14. Ground surface needed 14 TYPOLOGY SQM Reception (quay) 1680 3 Expedition (quay) 2240 3 + 1 for urgent orders Labeling + Filming zone 301 Storage Area 3100 Mass storage Area 1000 GROUND SURFACE (SUBTOTAL) 8321 Technical part 200 Offices 150 Social 60 TOTAL 8731,16 sqm TOTAL IN € 366708,72€ 42€ per sqm
  • 15. RFID system RFID (Radio-Frequency Identification) is a wireless communication technology that uses radio frequencies to identify and track objects. In a warehouse, this can be used to track products, containers and equipment using RFID tags or RFID labels. The data collected can be used to improve inventory management, product traceability and operational efficiency. RFID technology enables automatic identification of objects, which allows for faster and more accurate data collection than manual methods. 15
  • 16. RFID System in the warehouse 16 RFID labeling Storage Picking Expedition Reception RFID Scan Typology Price Labels 0,06€ per label x 100 000 Scanner 300€ x 50 TOTAL 21 000€ Benefits : - Compatible with ERP systems - Quick and efficient inventory - Better supply chain - Easier reporting thanks to KPIs
  • 17. 17 WMS: Warehouse Management System The WMS is a software mostly use in warehousing. It confers you an overview on the entire warehouse activity. ● We are going to use “Manhattan” as a WMS, in accordance to his easy connexion to our RFID solution. Benefits : - 40% increase of stockage capacity - 30% decrease of the manutention operations - 99% elimination of errors
  • 18. 18 Enterprise Resource Planning: ERP Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to- day business activities. ● We are going to use SAP. Benefits : - Cost saving - Supply chain management - Improve inventory cost - Better data and cloud security
  • 19. Reporting ● Reporting will be done on a weekly basis, and twice a week on peak periods (Christmas, summer…). ● Examples of KPIs in order to animate our flows, and always be more efficient : - Inventory and stock turnover - Average time of an order preparation - Picking accuracy - Storage utilization (in %) - Drivers arrival and departure (accuracy of hours) ● From those KPIs, a dashboard will be created, in order to have a great visualization = using a tool such as Qlik or Tableau 19
  • 20. Distribution of costs 20 Storage solution = 278 000€ Warehousing = 366 708€ Human cost = 225 450€ RFID solution = 21 000 € First Month Acquisition Forklifts = 77 946 € Internal tools = 18 095€ Variable costs = 12 888€ Total cost = 1.000.088 € Per month Monthly cost = 623 141€ Annual cost including acquisitions Annual cost = 7 854 638 €
  • 21. Pricing By taking in account - A annual cost of 7 854 638 € - A margin of 30 % We can decide of an average price of 10 211 029,4 € 21
  • 22. Conclusion ● Our offer will propose a innovative proposition. RFID technology will be a major component of our offer and it will gives us a major advantage in term of time and efficiency. ● Price = 10 211 029 €. 22