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1. LNW – Nike DP Occupancy and Utilization Improvement Project Proposal for Logiwiz NW(Pvt)Ltd 3/23/2011 1 Logiwiz NW (Pvt) Ltd

2. Project proposal Scope, Objective & Time line Literature Study Potential crisis in the domain & Why it is important to Logiwiz Suggested Solution & the theories Identified cost & service benefits to logiwiz and Logiwiz’s client 3/23/2011 Logiwiz NW (Pvt) Ltd 2

3. Scope, Objective & Time line 3/23/2011 Logiwiz NW (Pvt) Ltd 3

4. Introduction Currently Zone 3 only consist a floor area of (12000Sqft ) and density development is a critical requirement at present. Further wastage of resources are visible due to lack of density utilization. This project is to introduce most suitable system for Zone 3 in terms of racking or mezzanine 3/23/2011 Logiwiz NW (Pvt) Ltd 4

5. Project Scope Objectives Introduce solution for Zone 03 cargo density development. Improve floor area Improve cargo handling process 3/23/2011 Logiwiz NW (Pvt) Ltd 5

6. Major Deliverables Introduce a new racking system or mezzanine to enhance NIKE DP Project. Introduce a suitable floor Introduce hoist system Improve labor productivity 3/23/2011 Logiwiz NW (Pvt) Ltd 6

7. Milestones 3/23/2011 Logiwiz NW (Pvt) Ltd 7

8. Limitations This project depends on collected data Timeline is only for project proposal 3/23/2011 Logiwiz NW (Pvt) Ltd 8

9. Time line 3/23/2011 Logiwiz NW (Pvt) Ltd 9

10. Risk and Challenges 3/23/2011 Logiwiz NW (Pvt) Ltd 10

11. Literature Study 3/23/2011 Logiwiz NW (Pvt) Ltd 11

12. Racking systems Selective Pallet Rack Although, Selective Pallet Rack is the most common and least expensive rack, it also offers the least dense pallet storage capacities, since pallets are stored only one deep. Generally selective rack requires 10-12 ft forklift aisles. However, a “narrow aisle” system can be utilized with the use of narrow aisle forklifts, which are quite a bit more expensive than the standard warehouse trucks. 3/23/2011 Logiwiz NW (Pvt) Ltd 12

13. Pallet Flow Rack Palletflowrack is a storage system where pallets are fed from one side, and retrieved from the other. This system uses a combination of rails and wheels. The rails are built on a slight incline, higher on the side that is fed, so that the pallets move forward when they are loaded into the system.All the pallets placed on a particular level must contain the same SKU and are managed using the First in First out (FIFO) system. 3/23/2011 Logiwiz NW (Pvt) Ltd 13

14. Cantilever Racks Cantilever racks are a superior storage solution in many situations. Compared to standard pallet racks, cantilever racks are: Easier to use: With no front column in the way, cantilever racks are faster to load and unload, lowering handling time and costs. More flexible: Loads may be placed anywhere along the entire length of a row on a cantilever rack. More compact: The lack of a front column saves horizontal space normally lost to rack structure. Handling clearance is also more abundant. More selective: Any load or storage slot is immediately accessible. More economical: Both reduced handling times and increased space utilization makes cantilever racks more cost-efficient. Additionally, cantilever racks become more economical as load length increases, while standard pallet racks increase in costs. More adaptable: Cantilever racks can store nearly any type of load. They are especially useful for storing long, bulky, or oddly-shaped loads 3/23/2011 Logiwiz NW (Pvt) Ltd 14

15. Push Back Rack Push Back Rack allows for pallets to be stored multiple levels deep. Pallets are stored on a series of nesting carts. As a pallet is loaded from the front, it pushes the pallet behind one position. When the front pallet is removed, the rear pallets come forward to the front picking position. 3/23/2011 Logiwiz NW (Pvt) Ltd 15

16. Mezzanine Mezzanine floor systems are semi-permanent floor systems typically installed within buildings, built between two permanent original stories. These structures are usually free standing and in most cases can be dismantled and relocated. Commercially sold mezzanine structures are generally constructed of three main materials; steel, aluminum, and fiberglass. The decking or flooring of a mezzanine will vary by application but is generally composed of b-deck underlayment and wood product finished floor or a heavy duty steel, aluminum or fiberglass grating 3/23/2011 Logiwiz NW (Pvt) Ltd 16

17. Drive-through rack A Drive-through rack (also known as a drive-thru rack) is a storage rack that allows a lift truck to drive between upright beams to access loads, which are supported by rails running perpendicular to the upright beams. A drive-through rack is similar to a drive-in rack except that the lift truck is capable of driving straight through the structure at any storage location along the aisle. A drive-through rack is also open at both ends, allowing for first-in, first-out (FIFO) storage. 3/23/2011 Logiwiz NW (Pvt) Ltd 17

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19. Storage capacity (AVG) 3/23/2011 Logiwiz NW (Pvt) Ltd 19

20. Potential problem in the domain & Why it is important to Logiwiz 3/23/2011 Logiwiz NW (Pvt) Ltd 20

21. Problem 01Zone 3 current business is “NIKE DEMAND PULL “Currently Zone 3 only consist a floor area and mezzanine. This storage solution is resources wastage. Most of Warehouse use racking systems and mezzanine. Zone 3 problem is current storage solution is not sufficient. This project introduce three solution for density improvement in zone 3 Why it is important to Logiwiz Increase storage capacity 150% -190%( increase number of SKU’s) Demands to increase warehouse operating efficiency and space utilization Demands to reduce inventory Increase Integration of the warehouse within the total logistic system Increase facility lay out 3/23/2011 Logiwiz NW (Pvt) Ltd 21

22. Problem 2 Entire zone 3 is currently consisting of finished garments of NIKE. Presently Floor is poor condition and produce dust while movement of jack carts. Most of the garments are taken out while picking and packing; garments are more likely to absorb dust Why it is important to Logiwiz Increase customer satisfaction Increase labor efficiency Should improve housekeeping and easy to maintain Maximize effective use of equipment 3/23/2011 Logiwiz NW (Pvt) Ltd 22

23. Suggested Solutions & theories 3/23/2011 23 Logiwiz NW (Pvt) Ltd

24. Solutions Evaluated Selective pallet rack Pallet Flow Rack + Mezzanine Floor Mezzanine Floor Drive-through rack 3/23/2011 24 Logiwiz NW (Pvt) Ltd

25. Pros and cons of solutions 3/23/2011 25 Logiwiz NW (Pvt) Ltd

26. Solution 1 - Selective Pallet rack 3/23/2011 26 Logiwiz NW (Pvt) Ltd

27. Solution 2 - Pallet Flow Rack + Mezzanine Floor 3/23/2011 27 Logiwiz NW (Pvt) Ltd

28. Solution 3 - Mezzanine Floor 3/23/2011 28 Logiwiz NW (Pvt) Ltd

29. Solution 4 - Drive-through rack 3/23/2011 29 Logiwiz NW (Pvt) Ltd

30. MHE requirements 3/23/2011 30 Logiwiz NW (Pvt) Ltd

31. Storage capacity & Density Development 3/23/2011 31 Logiwiz NW (Pvt) Ltd

32. Maximum use of SKU’s 3/23/2011 32 Logiwiz NW (Pvt) Ltd

33. Identified cost & service benefits to logiwiz and Logiwiz’s client 3/23/2011 33 Logiwiz NW (Pvt) Ltd

34. Cost benefit analysis 3/23/2011 34 Logiwiz NW (Pvt) Ltd

35. Pay back period & Net Present Value 3/23/2011 35 Logiwiz NW (Pvt) Ltd

36. “NIKE DP” requirements 3/23/2011 36 Logiwiz NW (Pvt) Ltd

37. Conclusion Mezzanine is a best solution while analyzing quantitative data with NIKE DP operation 3/23/2011 Logiwiz NW (Pvt) Ltd 37

38. 3/23/2011 Logiwiz NW (Pvt) Ltd 38 Thank you!