LGC Logistics is a logistics company located in Calamba, Laguna that offers stripping, consolidation, delivery, inventory management, and other logistics services. It aims to reduce processing times and increase customer confidence. The document discusses LGC's current practices around product and service design, process analysis, quality management, inventory control, and scheduling. It also provides recommendations to improve capacity planning and quality processes based on an external audit.

1. AGSB MBAH Batch 8
MIXED NUTS (Group IV)
Candice Rachel U. Canlas, M.D.
Lorelynn Dacanay-Papa, D.D.M.
Anna Sofia Victoria S. Fajardo, M.D.
Maria Agnes G. Fulo, R.N.
Frederick Mars B. Untalan, M.D., FPSOHNS, FPAHNS
Rudolfo C. Villarin, M.D.

2.  COMPANY BACKGROUND
 CURRENT PRACTICES
◦ PRODUCT & SERVICE DESIGN
◦ PROCESS ANALYSIS & MANAGEMENT
◦ QUALITY MANAGEMENT
◦ INVENTORY CONTROL
◦ SCHEDULING & CAPACITY PLANNING
 ANALYSIS
 RECOMMENDATIONS

3.  LGC Logistics is a member of the Lina
Group of Companies
 It is a global company which believes that
moving forward means going where the
customers are located.
 November 14, 2002
◦ Granted by the Philippine Export Zone Authority a
status of “Ecozone Facilities Enterprise”
◦ 1st CY/CFS inside PEZA in CALABARZON

4.  LGC Logistics is envisioned to reduce
processing time, give quick turnover of goods
and increase customer confidence so the
customer can do business in real time.

5.  LGC Logistics offers stripping/de-
consolidation, consolidation, delivery to end-
user, inventory management system,
domestic freight system, and complete
logistical services under one roof at your
doorstep.

7.  STRIPPING /
DECONSOLIDATION
◦ Unpacking contents of a
container,also called
devanning.
 CONSOLIDATION
◦ Combine more than one
shipment into a
container;serves as
consolidation point for
export shipments.
 DELIVERY TO END-USER
◦ Deliver to ultimate
consignee

8.  INVENTORY MANAGEMENT
SYSTEM
◦ A 24/7 efficient use of
web-order based
application
 DOMESTIC FREIGHT
SYSTEM
◦ Proof of Delivery (POD)
Tracking System
 COMPLETE LOGISTICAL
SERVICES
◦ PO management,
inventory management,
control, packaging and
crating, sorting, labeling
and re-labelling, with
nationwide distribution

10.  SAFE
 24/7 security guards
 8 units of CCTV surveillance
cameras strategically located
throughout the warehouse
 FAST
 2-day transfer to CFS, upon arrival
on the port of discharge
 Delivery to the end-user is one day
upon releasing of goods
 ACCESSIBLE
 Location reduces product stress
and avoids traffic congestion
 GREAT VALUE
 Services are effective & competitive

11.  Located in CARMELRAY INDUSTRIAL PARK 2
Barangay Punta, Calamba, Laguna 4027
 Inside a Philippine Export Zone Authority area in
CALABARZON
 59 km from Manila Internat’l Container Port
 64 km from North Harbor
 15 km from PEZA zones

12. ACTEX

17. PROCESS ANALYSIS

18.  Cargo receiving process involves the activity
being performed by the warehouseman upon
arrival of items at the warehouse.
 The responsibility involves checking of items
against documents on its description and
quantity.
 It is during this process that the actual
condition of the outside packing of the items
is being determined.

19.  Electronic documents / files are required for
back-up quarterly.
 This process is done to ensure that electronic
documents are available during power
interruption, hardware crash or computer
systems failure.
 Another process involves the use of
passwords to ensure the reliability and
security of files and documents.

20.  This involves the process wherein the
warehouseman checks the inventory location
of actual cargo that will be delivered to the
end-user.

21. start Locate cargo
located NY
Correct
Quantity
Thoroughly
Check
N
B
Y
Y
Correct
Correc
t Qty
N
Thoroughly
check
Complet
e
N
Y
N
D
C
Y
CONT’D

22. D
Notify acct handler
Thoroughly
physical check
100%
found
Y
c
Re-positioning of
shipment to
staging area
Sign waf and forward
to transport dispatch
N
c
CONT’N CARGO LOCATION
END

23.  This process involves the documentation of
items that is being requested by the client to
deliver to their respective end users.
 The withdrawal documents are essential in
applying for Farm-out.
 This form is forwarded to PEZA zone
representatives for processing

24.  This involves the process of receiving of the
withdrawal documents from the
warehouseman together with the cargo.
 It also involves inspection of the truck being
used to ensure cleanliness, maintenance and
good working condition.
 This process also involves the preparation of
a Gate Pass.

25. • ISO 9001 is the
internationally recognised
standard for the quality
management of
businesses.
• It applies to the processes
that create and control the
products and services an
organisation supplies.
• Prescribes systematic
control of activities to
ensure that the needs and
expectations of customers
are met.
• It is designed and
intended to apply to
virtually any product or
service, made by any

26. The Operations, a vital part of LGG Logistics, lnc. that plays
the primary role of achieving the company's Vision of providing
quality service in logistics and warehousing services. Will
guarantee that it will attain the following objectives:
Monthly lnventory
 99.7% accuracy of monthly inventory against actual cargo on
hand
On-time Delivery
 98% delivery of items to end-user within stipulated conditions
per zone
Perfect Receiving
 ZERO incidences of wrong, short and over deliveries to end-user
Service Analysis Report
 Average rating of 4.20 for SAR conducted annually to all
accounts
100% Equipment Preventive Maintenance Schedule Monitoring

27. AREA OF DELIVERY ESTIMATED
TRANSIT-TIME
ESTIMATED TIME
OF ARRIVAL TO
END-USERS
ZONE 1
(LAGUNA AREA)
30 - 45 mins 45 mins to 1 hour
ZONE 2
(CAVITE AREA)
1 - 1.5 hours 1.5 - 2 hours
ZONE 3
(PARAÑAQUE / FTI
AREA)
1.5 - 2 hours 2 - 2.5 hours
ZONE 4
(BATANGAS AREA)
1 - 1.5 hours 1.5 - 2 hours

28.  This involves a process of using a Daily
Maintenance Master Checklist Form
 It provides on-time advice to the supplier /
facilities and maintenance department for
immediate preventive maintenance
scheduling.

29.  This is the heart of the warehouse operations
which tells the actual quantity of items on
hand.
 The system generates this information based
on the encoded information by the account
handler.
 The company’s inventory system is
Warehouse Operating System (WOS).
 Monthly physical inventory
is being performed
◦ Actual vs System

30.  Bar codes are assigned to each
item or a group of items.
 Fast-moving items are stored
on the ground floor, while
slow-moving & condemned
items are on the 2nd floor.
 Labels are used for each area
and item.
 A warehouse directory is readily
available.

31.  Access to the warehouse is
given only to the
warehouseman.
 Cycle counting is done on a
monthly basis.
 ALL inventory transactions
are documented.
 A process manual is
available for inventory
control.
 Different levels of cold
storage and warehouse
storage are available to fit
customer’s needs.

33.  To avoid lost sales, capacity must be set to
match peak demand

34. RACKING POSITIONS
GF
1CIP A 72
1CIP B 56
1CIP C 120
1CIP D 108
1CIP E 84
1CIP F 36
TOTAL 476

35. RACKING POSITIONS
2F
2CIP A 32
2CIP B 96
2CIP C 87
2CIP D 96
2CIP E 96
2CIP F 96
2CIP G 48
TOTAL 551

36. RACKING POSITIONS
2TC
2CIP H 30
2CIP J 60
2CIP K 60
2CIP L 60
2CIP M 30
OTHERS 13
TOTAL 253 + 551 + 476 = 1,280

37.  The customer is in the production schedule
and must be accommodated.
 The warehouse operates from 7 am to 7 pm.
 The administration office operates from 8
am to 5 pm.
 FIFO - FIRST IN, FIRST OUT System is applied
to customers

38. DESIGN HIGH / LOW CONTACT SYSTEM
FACILITY LOCATION Operations near customer
FACILITY LAYOUT Should focus on production efficiency
PRODUCT DESIGN Environment and physical product define
the nature of the service
PROCESS DESIGN Stages of production process have a
direct, immediate effect on the customer
SCHEDULING Customer is in the production schedule &
must be accommodated
QUALITY CONTROL Quality standards are measurable and
fixed
CAPACITY PLANNING Storable output permits capacity at some
average demand level

39. The group agreed to the ff observations made by an
external auditor:
 Include performance of cargoes in overall tabulation
of performance monitoring of deliveries.
 Acquire a copy of results of strategic quality planning
conducted by the organization for ease of checking if
plans and programs formulated were implemented.
 Request a copy of results of evaluation performance
for some outsourced service providers serving the
site.
 Install a secondary containment or catch basin for
chemicals stored.

41. AGSB MBAH Batch 8
MIXED NUTS (Group IV)
Candice Rachel U. Canlas, M.D.
Lorelynn Dacanay-Papa, D.D.M.
Anna Sofia Victoria S. Fajardo, M.D.
Maria Agnes G. Fulo, R.N.
Frederick Mars B. Untalan, MD, FPSOHNS, FPAHNS
Rudolfo C. Villarin, M.D.