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1
A Study on
Warehousing Operations at AAJ Enterprises Pvt Ltd.
and
Logistics Department
In the partial fulfilment of requ...
2
Declaration
I hereby declare that the work entitled “A Study on Warehousing and logistics Department
at AAJ Enterprises ...
3
Certificate of Approval
The following Summer Project Report titled " A Study on Warehousing Operations and
Logistics Dep...
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AAYUSH SRIVASTAVA-2123-SCM-001.pdf

  1. 1. 1 A Study on Warehousing Operations at AAJ Enterprises Pvt Ltd. and Logistics Department In the partial fulfilment of requirement of the degree of Post-Graduate Diploma in Management LLOYD BUSINESS SCHOOL Knowledge park 2,Greater Noida
  2. 2. 2 Declaration I hereby declare that the work entitled “A Study on Warehousing and logistics Department at AAJ Enterprises Pvt Ltd. submitted to "Prof Anshul Mathur is a record of an original work done by me under the guidance of "Mr Mayank Batham". This project work is submitted in the partial fulfilment of the requirement for award of post graduate diploma in management. The information embodied in this project has not been submitted to any other institute for the award of any diploma. `
  3. 3. 3 Certificate of Approval The following Summer Project Report titled " A Study on Warehousing Operations and Logistics Department at AAJ Enterprises Pvt Ltd. Certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post-Graduate Diploma in Management for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Summer Project Report only for the purpose it is submitted. “Summer Project Report Examination Committee for evaluation of Summer Project Report” Name Signature 1. Faculty Examiner 2. PMC Summer Project Co-coordinator
  4. 4. 4
  5. 5. 5 Table Of Contents Page Chapter 1 – Warehouse Operations 1.1 Warehouse Operations………………………………………….……2 1.2 Warehouse Layout...............................................................................2 1.3 Six Essential Warehousing Process.....................................................4 1.4 Warehouse Management System…………………………….………6 Chapter 2 - Introduction About AAJ Enterprises 2.1 Company Overview………………………………………………….8 2.2 Mission, Vision and Values………………………………………….9 2.3 Five Major Clients of AAJ………………………………………….10 2.4 Total Stock Count and Titles……………………………………….10 2.5 Organizational Chart…………………………………………….….11 2.6 Locations all over India…………………………………………….11 Chapter 3 - Warehouse Operations at AAJ Enterprises 3.1 Warehouse Operations at AAJ Enterprises…………………………14 3.2 Inward………………………………………………………………15 3.3 Storage and Inventory Management………………………………..19 3.4 Picking and Packing…………………………………………….….24
  6. 6. 6 3.5 Dispatch……………………………………………………….…….31 Chapter 4 - Picking and Packing Operations 4.1 Picking………………………………………………...…………….38 4.2 Packing……………………………………………………...……….39 4.3 Process Flow of Picking and Packing…………….………...……….40 4.4 Order Processing methods…………………………………......……42 4.5 Functions of WMS used in Picking and Packing……………………47 4.6 Process Improvement in Picking and Packing………………………56 Chapter 5 – Logistics 5.1 Introduction………………………………………………………….59 5.2 Types of Logistics…………………………………………………...60 KEY RESPONSIBILITIES IN AAJ ENTERPRISES PVT. LTD References………………………………………………………………
  7. 7. 7 CHAPTER 1 Warehousing Operations
  8. 8. 8 1.1 Warehousing Operations A crucial link in the supply chain is warehousing. A warehouse is a place where a business owner can keep his or her goods in preparation for future order deliveries. Warehousing and storage are terms that refer to the same function, which is to retain and preserve commodities before sending them out to be purchased by end users. As in most of the cases, there is a period of time that stays between the manufacturing of goods and the beginning of their consumption. The utility of time is created by storage as it helps in closing this gap. The broad number of tasks which are involved in physically distributing items from the end of the supplier to the ultimate consumers is referred to as the warehousing operations. "The purpose of warehouse operations is to fulfil the demands and requirements of the clients while making the most efficient use of space, equipment, and human labor.” The most typical warehousing tasks include product acquisition, inventory control, storage, material handling, protective packaging, and transportation. Fig. – 1 Warehousing Operation Chain
  9. 9. 9 1.2 Warehouse Layout: A warehouse layout is basically the systematic design of the warehouse that is intended to make the warehouse's activities more convenient and efficient as a whole. Your operation can be streamlined and you can achieve faster shipment times if you have a smart warehouse structure. On the other hand, this might have a negative impact on your supply chain, workflow, and shipment timeframes if you aren't efficiently utilising the space that is offered in your warehouse. The main areas of the warehouse are - • Inbound Area • Storage Area • Outbound Area • Yard 1.2.1 Benefits of Optimal Warehouse Layout • Maximize the use of available space. • Optimize the flow of products. • Ensure an efficient order picking process. • Reduce operating costs. • Boost warehouse output. Fig. – 2 Elements of Warehouse Layout
  10. 10. 10 • Protection of inventory. • Maximization of customer satisfaction. • Optimal use of warehouse equipment. • The provision of a risk-free working environment. 1.3 Six Essential Warehousing Process 1.3.1 Receiving Receiving is perhaps the first and most critical warehouse process. To effectively complete the receiving process, the warehouse must be able to confirm that it received the correct goods, in the correct quantity, in the correct condition, and also at the correct time. Failure to do this will effects all the future operations. Receiving also includes transferring ownership of the material to the storage. This holds the warehouse accountable for ensuring the quality of the items until they are distributed further. Receiving goods correctly will help us to screen out defective items and avoid accountability for them. An employee registers the items, typically by scanning a bar code, verifying the quality, quantity and documents. Finally moving it towards the storage area. Fig. – 3 Warehouse Workflow
  11. 11. 11 1.3.2 Put away The second step in the warehouse operation is called "put-away," and it involves transporting the goods from the loading dock to the area of the warehouse that provides the greatest potential for space savings. The efficiency of the warehouse operation can be negatively impacted if the commodities are not placed in the area that is optimal for them. When things are stored in the appropriate manner, there are a number of benefits: • The storage of goods is both quicker and more effective. • Travel time is minimised • It is ensured that both the staff and the cargo will be safe. • The most efficient use of the warehouse's area is achieved. • It is less difficult and takes less time to locate, track, and collect the cargo. 1.3.3 Storage or Inventory The act of putting items in the storage location that is best suitable for them is part of the warehouse's storage procedure. The procedure of storing items allows you to make the most of the space you have available in your facility and improves the effectiveness of your work force when it is carried out correctly. 1.3.4 Picking Fig. – 4 Process Flow of Receiving
  12. 12. 12 Picking is the process that occurs in a warehouse to collect products that are stored there in order to fulfil customer orders. It is the process of arranging an order, during which the products are selected and collected from various locations inside a warehouse (aisles, shelves, etc.), and then organised, before being wrapped, and then sent to the person who will finally receive the order. Even while picking can be done through the use of manual processes, there is a rising effort toward automating the process in order to attain higher levels of productivity. This is because manual processes need more time and effort than automated operations. Also, the picking and packing operation that takes place in the warehouse is the one that results in the highest cost, accounting for as much as 55 percent of the total operating expense. 1.3.5 Packing Packaging connects with the warehouse and logistics chain in a variety of significant ways. Packaging is critical for preventing damage not just in the facility but also during transit. The package influences the stack height of the goods in the warehouse, and hence the warehouse's usage and cost. The size of a company's packaging may limit its capacity to employ pallets, shelving, or other types of handling equipment. It is important to note that improper packaging might contribute to increased handling charges and decreased potential sales if the goods are delivered damaged. Hence it is important to place the items in the correct box, in correct quantity, ensuring right documentation. 1.3.6 Shipping The last step in the warehouse process is shipping, which also marks the beginning of the journey of items from the warehouse to the end user. Only when the correct order is sorted and loaded, when it is sent to the correct customer, when it travels through the appropriate mode of transit, and when it is delivered on time and without incident is shipping said to have been successful. 1.4 Warehouse Management System
  13. 13. 13 The term "warehouse management system" (WMS) refers to a type of software application that is used to assist in the warehousing operations and management of the activities of a distribution center or warehouse. " WMS applications provide functionality such as receiving, putting away, inventory management, cycle counting, stock locating, order allocation, order Processing, order picking, packing, replenishment, packing, shipping, labor management, and also interfaces for automated materials-handling equipment. Mobile devices, bar code scanning, and RFID scanning and sensing are all components that go into the formation of the basis of a Warehouse Management System (WMS). CHAPTER 2 Introduction About AAJ Enterprises
  14. 14. 14 2.1 Company Overview AAJ Enterprises is a third-party logistics (3PL) and warehousing organisation that was established in 2006 and has its headquarters in Haryana, India. A third-party logistics provider, or 3PL, is a solution that allows one to outsource their operational logistics, which includes everything from warehousing to delivery. The logistics operations of the supply chain are handled by third-party logistics organisations, which offer a wide range of services related to those logistics. This encompasses things like transportation, storage, picking, packing, inventory forecast, order fulfilment, freight forwarding, and packaging.
  15. 15. 15 Similarly in the same way, AAJ provides services that include the management of warehouse facilities, operations, E-commerce fulfilment, future technologies, value added supply chain services and last mile transportation through the implementation of solutions that are specifically designed to transform businesses of their clients. The company mainly offers its customers storage space for items such as books, stationary, and cartons of varying sizes. AAJ Enterprise helps customers in the development and operations of large-scale shared warehouses by making their efforts in the continuous improvement of infrastructure, technology, and material handling. As a result, AAJ Enterprise's clients incur no capital expenditure costs related to the development and operation of these warehouses. AAJ has its very own customised and in-house Warehouse Management System (WMS), which is their Unique Selling Proposition (USP). This assists in the flow of information through Electronic Data Interchange (EDI), which is used by all Enterprise Resource Planning (ERP) systems. AAJ also provides comprehensive warehouse management capabilities, including a fully operational in-house WIFI enabled system, bulk handling equipment's, customizable space, an modern barcode system, and many more. 2.2 Mission, Vision and Values Fig – 5 3PL Fulfillment Model
  16. 16. 16 • Mission: The mission is to build an organization which can take India at the helm of global supply chain with its reliable, cost effective and innovative solutions. Customer Delight, state of art infrastructure and technology driven solutions, integrity and joyful place of work. • Vision - Developing & leading the supply chain industry by bringing together best in class infrastructure & team of customer focused employees for providing customized services to clients. • Values - The values in accomplishing the mission - AAJ founding spirit: Efficiency, Transparency, Accuracy, Innovation. “To grow is to change” is the mantra which guides the team to take up new innovations and challenges to further the development of more efficient systems for our customers. 2.3 Five Major Clients of AAJ – 2.4 Total Stock Count and Titles at Present at Sonipat (Kundli-1) Location
  17. 17. 17 Total Titles and Quantity Present in Warehouse Publisher Total Titles Total Quantity HarperCollins and Simon 27000+ 50 – 55 Lakhs Next Education 25000+ 15 – 18 Lakh Relx 900+ 5 Lakh + Hachette 18000+ 4.5 Lakh+ Total 70,900 + 78 Lakh+ 2.5 Organizational Chart – Table – 1 Stock Count
  18. 18. 18 2.6 Locations all over India S.no Location Total Area In Sq. Ft 1 Ghaziabad 220,000 2 Sonipat (Kundli 1 300,000 3 Sonipat (Kundli 2) 300,000 Anil Jain (Chairman) Anamika Jain (Operations Head) Manoj Sharma (HR Head) Durgesh Rawal (Warehouse manager) Naveen Tomar (Warehouse Manager) Ajay Tomar (Warehouse Manager) Punit Chadha (Warehouse Manager) Atishay Jain (CTO) Manoj Kumar (Admin Manager) IT Team Fig – 6 Organizational Structure
  19. 19. 19 4 Mumbai (Bhiwandi) 100,000 5 Ghazipur 5,000 6 Bangalore 100,000 7 Kolkata 70,000 Table – 2 Area Covered Fig – 7 Locations across India
  20. 20. 20 CHAPTER 3 Warehouse Operations at AAJ Enterprises 3.1 Warehouse Operations at AAJ Enterprises
  21. 21. 21 Here at AAJ Enterprises, AAJ is dedicated for all aspects of the supply chain, from beginning to end, and handles them with the utmost care and precision. AAJ is able to ensure that activities are managed effectively and safely since it offers both the resources as well as the necessary technology. The main warehouse operation in which AAJ Enterprises is involved are warehousing tasks such as product acquisition, inventory control, storage, material handling, protective packaging, and transportation. To manage all these operations on the floor smoothly and efficiently, the company has divided itself into four departments which are as follows – • Inward • Inventory • Pick and Pack • Dispatch 3.1.1 Process Flow of Warehouse Operations at AAJ Enterprises Department Wise Receiving Put away Storage Picking Packing Shipping Inward Picking and Packing Inventory Dispatch Fig – 7 Bulk Location at AAJ
  22. 22. 22 3.2 Inward At AAJ Enterprises, receiving process starts with the movement of raw materials or finished goods from a manufacturer or other distribution channel to a fulfillment center or warehouse. The inbound flow in a warehouse begins when items arrive in the warehouse of the company location, either received from external sources or from another company location of AAJ. From the receiving dock, warehouse activities are performed at different complexity levels to bring the items into the storage area. An employee registers the items, typically by scanning a bar code, verifying the quality, quantity and documents. Finally moving it towards the storage area and perform the Put Away operations by stacking the material at the locations assigned to every publisher. There are 6 steps in which the Inward completes its operations from Receiving to Put away - a) Step 1 - Gate Entry Gate entrance gives you the ability to monitor the things that are transported into and out of the storage facility in a general sense. The entry and leave of items can be tracked through the use of gate entries. b) Step 2 - Inspection and processing The activities of measuring, evaluating, and testing are included in Inspection and Processing so that it may be determined whether or not the materials that were given in the shipment meet the criteria of the contract. c) Step 3 - Receiving Fig – 8 Department Wise Process Flow
  23. 23. 23 The next step of gate entry is Receiving of the material. This starts with the inspection of the material. Inspection of material consist of inspecting the documents, matching the physical quantity with the paper quantity, checking the quality of the material and packaging. If there is an issue in order matching or quality, it is reported to the floor supervisor on priority basis. Further decision will be taken by the management taking the supplier in loop. If the dock supervisor is assured of the material and its quality, the vehicle is ready for unloading and material is unloaded at the dock. • Inspection of the documents • QC of Material & Packaging • Unload Fig. – 9 Process Flow of Receiving
  24. 24. 24 After the goods have been unloaded, the owner of the process checks the information, confirms the receiving acceptance on the paperwork, and fills in the details in the manner depicted in the picture below – d) Step 4 - GIN Creation & Documentation Following the unloading of the shipment, a voucher that is generated by the WMS. This GIN (Group Identification Number) number, which contains all of the information on the shipments, is affixed to the shipments before they are moved to the area where they will be processed. Documents that are received alongside shipments are uploaded into DMS (Document Management System) so that a soft copy can be kept. e) Step 5 - Put away “Put away” relates to all the warehousing procedures that occurs between obtaining a supply of items from a supplier and getting everything stored away in shelves and racks in the warehouse. In simple words, Put Away is the process of shifting incoming inventory from the receiving zone to a system-generated appropriate position for storage. This can take place either manually or automatically. Fig. – 10 Receiving Slip
  25. 25. 25 f) Step 6 - Report Sharing After the inward team has completed the process of taking inward the shipment, the client and the client success team need to be provided with the inward report. 3.3 Storage and Inventory Management 3.3.1 Inventory The term "inventory" refers to the items and materials that are held by a company with the intention of reselling, producing, or otherwise making use of them in the future. The Inventory team at AAJ Enterprise keeps track of all of the inventory that is held by the. Company and regulates the entire flow of products, from the point of purchase all the way through to the point of sale, ensuring that the company always have the appropriate amounts of the item located at the appropriate location and time. They also ensure that stock is stored effectively and inventory costs are kept to a minimum, and that the amount of time spent counting and controlling inventory is kept to a minimum. 3.3.2 Operations performed by the Inventory Department at AAJ enterprises a) Stock Count Fig. – 11 Put away in Process
  26. 26. 26 Purpose Why it’s Required Stock-taking or “stock count" or "wall-to- wall" is the physical verification of the quantities and condition of items held in an inventory or warehouse. In order to give an audit of the existing stock, this might be done. Additionally, it is the source of information regarding stock discrepancies. The process of taking stock enables you to maintain an accurate record of the physical stuff you possess. It is essential to first compare the inventory stock with the system stock and then identify any differences that are found. A stock count can shed insight on a number of factors that contribute to stock fluctuation, such as theft and shrinkage problems. b) Blind count Purpose Why it’s Required A blind count is performed when the person is sent just with an item or the ISBN number and the location, but without any information on the quantity to be counted. If blind counts are not undertaken, the person who is performing the count will see the system quantity on the sheet attached and will simply match its count to the system quantity in order to avoid the trouble and extra time of investigating. If blind counts are performed, however, the person performing the count will not see the system quantity on the count sheet.
  27. 27. 27 c) Demand Replenishment and Manual Replenishment – Purpose How it’s done and controlled - Demand Replenishment Moving an inventory from its reserve status to its main storage location in order to make it available for picking, packing, and shipping is part of the Demand Replenishment process. During this step, the stock is moved from the bulk area to the loosen location in order to cater to the order quantity. Manual Replenishment When the picker is unable to locate the order quantity at the loose location and needs to update the pick slip, a manual replenishment is generated. When the order quantity is not available at the system site, the WMS will automatically activate manual replenishment to prevent a shortage. 1. In DCU, a replenishment coupon is required to be assigned. 2. The only place to retrieve replenishment is at the location that was generated by the system. 3. The ISBN needs to be checked when it's being picked up. 4. There must not be any picking of excess or shortage. The excess or the shortage that have been picked up needs to be staked in the prescribed area. 5. All put-away replenishment must take place at a location that was generated by the system. Any time there is a change in location, the inventory team needs to be notified about it. 6. The beginning and ending times must be noted on the replenishment team's paperwork. 7. The owner of the process has the ability to perform random rechecks of the put- away replenishment.
  28. 28. 28 d) Reverse Replenishment / Consolidation It is the process of combining smaller quantities of the same product that are dispersed throughout numerous storage bins into larger quantities of the product as a whole. This is done in order to free up storage space and to cut down on the amount of time spent moving things around. Fig. – 12 Replenishment Process Fig. – 13 Reverse Replenishment
  29. 29. 29 e) Stock Reconciliation Purpose Why it’s Required After the monthly closure, this is the process of matching WMS shares with client stock. • Streamline & standardise reconciliation process. • Reconcile the differences at the conclusion of the month. • Specify the parameters of the process control and the timelines • Comprehend and fulfil the stock- reconciliation requirements outlined by the client. f) Inward Crosscheck – • This step involves double-checking the information that was gathered during the previous day's inbound procedure to ensure that it is accurate. • It ensures that the quantity that was brought indoors is actually present at the area where it was stored away. • It is required to perform a crosscheck on all import, local, and sale return items. • Crosschecking of Inward Price is also performed (price should always match the master price). • It prevents any further escalation from occurring in the future.
  30. 30. 30 3.4 Picking and Packing In a warehouse pick & pack is the process that occurs after an order is placed by a customer. Here fulfilment center (FC) chooses products from inventory & re-package them for distribution. Fig. – 14 Inward Crosschecking
  31. 31. 31 3.4.1 Picking It involves finding the right quantity of each product through the use of picking list. It is the process of arranging an order, during which the products are selected and collected from various locations inside a warehouse (aisles, shelves, etc.), and then arranged, before being packaged, and then sent to the person who will ultimately receive the order. Even though picking can be accomplished by the use of manual processes, there is a growing movement toward automating the process in order to achieve higher levels of productivity. Picking is basically done from two types of locations – a) Loose Locations – These locations are those locations where books in loose quantities are kept a) Bulk Locations – These locations are those locations where books in bulk quantities are kept which are of same ISBN. Fig. – 15 Picking And Packing Process
  32. 32. 32 3.4.2 Packing It involves placing the items in the correct box, in correct quantity, ensuring right documentation. A mistake made during the picking and packing operations might result in improper dispatches, damage to the items, or delivery delays. As a result, these duties are of the utmost importance. 3.4.3 Why Effective order picking system is crucial The process of choosing orders is essential to the growth of any profitable e-commerce or retail firm and serves as the essential support structure for order fulfilment operations. Order picking is considered to be the most significant activity in fulfilment centres since it accounts for more than fifty percent of fulfilment centre operations and fifty-five percent of the costs associated with managing a warehouse. Fig – 16 Loose Locations Fig. – 17 Bulk Locations Fig. – 18 Packed Material
  33. 33. 33 3.4.4 Types of Picking Methods a) Single Order Picking Pickers will walk around the warehouse and gather SKUs one at a time as part of single order picking. This method is used to fulfil a single order at a time. This picking system is effective for usage in smaller to medium warehouses that fulfil straightforward requests involving a limited number of items. b) Batch Picking Picking operations are optimized through the use of batch picking by collecting SKUs in bulk in order to fulfil many requests at the same time. This reduces the amount of time spent travelling and speeds up the processes of fulfilling orders, particularly for facilities that receive many orders having the same SKUs. SKUs for several orders can be picked out in a single pass by workers thanks to a consolidated pick list. Fig. – 19 Single Order Picking Fig. – 20 Batch Picking
  34. 34. 34 c) Cluster Picking Workers move across the warehouse in order to get SKUs that are listed on numerous pick lists and then place them in distinct bins or containers. Each container has its own individual order and choose list linked with it. This prevents the need for pickers to make many journeys to the same pick area, and it also reduces the requirement for sorting because pickers perform this task at each pick point. d) Wave Picking Orders are sorted into sets or waves based to criteria such as the location of the customer, the frequency of their orders, the order type, the pickup zones, and the delivery date. Workers simultaneously retrieve SKUs from a number of different zones and transport them to a central location where they will be sorted and consolidated into individual shipments. Fig. – 21 Cluster Picking
  35. 35. 35 e) Zone Picking When using zone picking, the warehouse is sectioned off into zones, and personnel who are solely dedicated to that zone are employed there. Workers complete orders by collecting SKUs stored in their zone and working their way through the pick list. When all of the goods in a given zone have been picked, the order carton is moved on to the next set of zones. SKUs are picked and transferred from one zone to the next in this manner, and then they are packed for delivery in a central consolidation facility. Fig. – 22 Wave Picking Fig. – 23 Zone Picking
  36. 36. 36 3.4.7 Process Flow of Picking and Packing 1. The picking system kicks into gear as soon as the order enters the pool stage. 2. An order can be displayed in the pool either through integration or through the customer service team manually punching in individual orders. 3. As soon as the order is reflected in the pool, we would need to run the pool in order to progress the order from the pool to the picking stage. 4. Next step will be to give the command for Pick Slip Printing. We will give the command to print the pick slip of the processed order in a physical copy which will be further given to the associate or the manpower to initiate the picking process. 5. Once the pick slip are printed, we will assign the given order on the name of the person who will work on it in his DCU ID. We will assign this on WMS system and after assigning, the order will be start reflecting on his DCU. 6. Once the order is confirmed, the handover person will then segregate the order location wise. 7. Handover person will match the pick slip & physical box. Once the physical box is matched with the pick slip. 8. Now he will hand over the same to dispatch team. 9. Handover process is done by scanning the order number and the location simultaneously with the help of DCU. Now the dispatch team can easily trace the order by going on the same location where the Handover person placed it during handover. 3.5 Dispatch The term Dispatch refers to the act of delivering finished goods to end users directly from the warehouses or distribution center to the end user.
  37. 37. 37 This process begins with the initial planning activities for the outbound shipment and proceeded until the finished products have been loaded and shipped. It all begins with the planning efforts for the outbound delivery. 3.5.1 Dispatch Process Flow: a) Step – 1 Handover Process - • Once the order has been packed, the carton are turned over to the hand-over worker for dispatch, the date and time of the handover of the cartons are automatically uploaded in the WMS. Stock that has been handed over is stored in sites authorised by the publisher. b) Step – 2 Quality Check Process Following the handover of stock, orders are sent for quality control based on their priority. • Here the person will scan the carton pick slip, the physical weight packed cartoon is measured by the weighing machine and is entered into the DCU. DCU will compare the system weight of the carton to the physical weight. • The carton needs to be opened for a variance check if the difference in weight is larger than the lowest weight book that is included within it. • The person will scans each piece of content individually with the help of DCU in order to match it with the corresponding pick slip detail. • If any shortage or excess is discovered against the pick-slip detail, items is returned back to the inventory. Also any damaged goods found during quality control is turned over to the inventory team during the EOD. • The orders are given a QC done stamp once the verification process is complete. Once quality control has been completed, orders are transferred to the designated section of the publisher to be shipped. • Outstation orders are shrink-wrapped to reduce the likelihood of damage occurring during transportation.
  38. 38. 38 c) Step – 3 Order Segregation - • Here, local and outstation orders are broken down separately according to the specifics of each station in their particular publisher zone. • The floor supervisor is responsible for conducting routine checks to ensure that there are sufficient numbers of 5s on the floor and in each specific area. • The orders are divided up in accordance with the dispatch planning. • We also take into consideration the individual needs of each client or customer here (received from CS team). For example (invoice inside the carton, stretch wrapping has to done, 3-ply carton to be us • At this time, the gate pass for orders that are to be shipped is being generated, and the orders are being given to the transporter. • Only until the gate pass has been released can the transporter leave the Warehouse. d) Step – 4 Dispatch Planning Dispatch planning is done publisher-wise for Local & outstation orders.
  39. 39. 39 i. Local Orders Orders placed with Delhi and the National Capital Region stations are regarded to be local orders here. • AAJ ship out orders for local pickup in the morning of each business day. • When it comes to local orders, AAJ relies on their own personal transportation. When we carry AAJ delivery guys with our vehicles to fulfil local orders, they accompany the vehicles. • The order projection for the next day is scheduled for the evening of the day before, in order to facilitate resource allocation planning. ii. Outstation Orders Outstation orders are those that come from outside of the Delhi National Capital Region (NCR) stations. • For outstation orders, AAJ utilises the services of third party transportation and associated courier partners. • AAJ will not consider an order to be confirmed for shipment after 2:00 PM. e) Step – 5 Gate Pass Release Process: - • The doc supervisor is responsible for applying tracking stickers to the boxes that are going out. • In this area, gate passes is prepared by scanning the order pick-slips that have been pasted on the boxes. In the following phase of DCU, we will fill in details such as the vehicle number and the transporter details. • Once the carton has been scanned, it is given to transportation in order to be loaded. Goods receipt is provided by the transporter. Fig – 27 Dispatch Management
  40. 40. 40 • During the handover procedure to the transporter, it is required to make sure that the orders do not become mixed up. f) Step – 6 Record Keeping: The process of maintaining track of the history of a user's or organization's activities, typically through the creation and storage of formal records that are consistent with one another, is known as record keeping. The delivery boys are responsible for submitting the proof of delivery (POD) for all the orders following the next business day with the appropriate sign and stamp of the particular client on the DRS (Delivery Run Sheet). It is also uploaded in DMS so that records can be kept there. 3.5.2 Equipment’s used in Outward Process- • DCU (Device Connecting Unit) • Shrink Wrap Machine • Weighing Machine (Part of QC Machine) • Forklift • Strapping Machine (Part of QC Machine) • Hand jacks 3.5.3 Applications Used in Dispatch • WMS (Warehouse Management System) • IBS (for Harper Collins) • DMS (Data Management System) • ORACLE (for RELX) • FileZilla • FTP (File Transfer Protocol) Fig – 28 Loading for Shipment
  41. 41. 41 CHAPTER 4 Picking and Packing Operations
  42. 42. 42 4.1 Picking Picking is the most crucial part in the warehouse operation. It involves picking the goods from their designated location to the pallet from where they could be packed properly. When orders are punched, the picking team runs the pool to check the inventory status. Maintaining proper accuracy is important, since it is the costliest and most crucial aspect of warehouse operation. DCU is the device which is commonly used in the warehouse operation. ISBN’s, carton ID and location barcodes are scanned properly, after which they are packed and handed over for QC to dispatch team. 4.2 Packing Packing is process where the picked goods are packed in defined carton sizes. Packing must ensure that right orders are packed in every carton for that particular sale order. The ISBNs are scanned and priced (if price is not printed) one by one properly, after scanning the carton ID through DCU, they are transferred in the box and then taped properly. One of the major tasks beside this is to ensure that no damage goods are being transferred to the boxes. Goods should be packed properly via using packing material (bubble wrap) if needed and at the same time it should be light enough, so that it does not exceed the required weight of the carton. Maintaining packing costs is another objective of the packing team. Fig – 29 Picked Books on Pallets
  43. 43. 43 4.3 Process Flow of Picking 1. The picking system kicks into gear as soon as the order enters the pool stage. 2. An order can be displayed in the pool either through integration or through the customer service team manually punching in individual orders. 3. As soon as the order is reflected in the pool, we would need to run the pool in order to progress the order from the pool to the picking stage. • Steps to perform the pool run step in WMS. Transaction - Outward - Stock outward - order pool – ok Fig – 30 Associate Packing
  44. 44. 44 4. Next step will be to give the command for Pick Slip Printing. We will give the command to print the pick slip of the processed order in a physical copy which will be further given to the associate or the manpower to initiate the picking process. 5. Once the pick slip are printed, we will assign the given order on the name of the person who will work on it in his DCU ID. We will assign this on WMS system and after assigning, the order will be start reflecting on his DCU. Fig – 31 Pool Run Fig – 32 Order Assigned in DCU
  45. 45. 45 6. Associate will match pick slip with assignment. Associate will arrange pick-slips (segregate bulk and loose) and then go for picking with trolley or hand jack. 7. Associate will pick the correct ISBN and its quantity by matching ISBN and price from the location mentioned on pick slip. 8. After Picking, associate will put those books on Pallet kept in packing area. Books must be kept order wise & Carton ID wise respectively. 9. After picking , associate will take pick slip of any carton ID of an order. than scan carton ID barcode with DCU, he will start scanning every book of that carton id until DCU show carton ID confirmed. After scanning associate will count each and every book of that carton and then pack it as per carton size mention on pick slip. Same way complete order will be scanned until DCU show order confirmed. 10. Once the order is confirmed, the handover person will then segregate the order location wise. 11. Handover person will match the pick slip & physical box. Once the physical box is matched with the pick slip. Now he will hand over the same to dispatch team. 12. Handover process is done by scanning the order number and the location simultaneously with the help of DCU. Now the dispatch team can easily trace the order by going on the same location where the Handover person placed it during handover. 4.4 For processing the order, there are two methods – 1. Pick Verification – We used system generated pick slips here. A picking slip is a document that is typically used within the warehouse, strictly to pick products to fulfil an order. It usually has the product, Order number, that is the number used by that distributor or manufacturer to track that item within their Supply Chain, the location (it could be a bin or a reserve location or a pallet rack location or a flow rack) where the item resides within the warehouse and also the quantity that needs to be picked to fulfilled that order (or carton). It is primary purpose is to provide picking
  46. 46. 46 directions to the picker. So it does not have much legal ramifications to it. Once picking process is complete, the order is verified that it is picked complete and shipped. In the below picture of pick slip we can see that location is mentioned with the help of which the manpower does their picking process. In this picking process, manpower goes to the location mentioned in the pick slip, matches the book ISBN number and Name of the book, ,scan and pick the mentioned quantity. Also how many cartons in which the order will fit in is pre decided in picking verification. ISBN Number Location ISBN Number Fig – 33 Pick Slip
  47. 47. 47 The term "ISBN" stands for "International Standard Book Number," and each ISBN consists of thirteen digits. The ISBN number serves as a one-of-a-kind serial number that allows us to identify the product. The International Standard Book Number (ISBN) is a unique identifier that is assigned to books and is used by the publishers, book suppliers, libraries, and online booksellers for the purposes of listing, keeping sales records, and controlling stock. 2. Packing Utility – A packing slip is a piece of card or paper that details all the items inside the package it comes with. They are used in fulfilment operations to make sure that the order is accurately fulfilled and the customer receives the items they are expecting. This is customized packing & here we generate pick slip after packing. We use this method to cater customer specific PS requirement. Another case packing utility is used when loose qty is high. Location is not mentioned on the pack slip. 4.5 Functions of WMS used in Picking and Packing 1. Order Pool and Pool Run In order Pool, we find all the orders that are waiting to be processed for the delivery. These orders on the WMS are either uploaded by the Customer Success team or manually by authority. These orders are finally fetched with the help of pool run which brings the selected orders under picking. Transactio n Outward Stock outward order pool Select Publisher Pool Run Fig – 34 Pack Slip
  48. 48. 48 2. Add Replenishment When an order is punched in the system and there is not enough loose stock to match the quantity of the order, the user will be prompted by the system to carry out demand replenishment. 3. Conference The lack of quantity in the loose regions is the root cause of conference. This happens when the quantity has been misplaced and cannot be traced back to its original location. Therefore, in order to finish the order, which involves picking it up and putting it in the pool, we need to Find the stock at the place of the conference. 4. Price Bypass When the price of an item being ordered is different from the price of an item that is currently in stock, a situation known as this arises. When you get to this point, the system will ask for a pricing bypass. 5. Update Schedule Packing date Transaction Outward Stock outward Replenishme nt Add. Transaction Stock Adjustment Conference shortage Add Transaction Stock Adjustment Conference shortage Price bypass
  49. 49. 49 Update schedule packing date is required when we confirm to fulfil the order requirement within the Turnaround Time (TAT) to the customer. By updating this, we confirm to process the order within time frame. 6. Steps to Assign Order on DCU ID – After the pick slips have been printed, we will allocate the specified order to the DCU ID of the person who will be responsible for picking and packing. This will then be assigned on the WMS system, and after it has been assigned, the order will begin reflecting on his DCU. 7. Update actual no of cartons This update is required when we have to change the carton quantity for any order. Suppose if WMS reflects an order to be packed in 15 cartons and in actual terms it is packed in 16 carton. So we have to update that in system and another carton pick slip is printed. 8. Handover ( Stack QC Report) Report Update Status Report Picking Status Update Transaction Outward Stock outward Pick slip confirmation Add Transaction OUTWARD Stock outward Update acual number of carton Update
  50. 50. 50 After the handover of the order is done by the handover person to the dispatch department, the handover person will assign the location for the order. The pick and pack team can easily check the status of the orders, if they are still under process or they are handed over to dispatch with its location. This simply helps in tracing of the order. 9. Order Schedule Status With the help of the order schedule status, we can check the current status of order which can be under pool, under picking, under replenishment, conference, under dispatch, QC status etc. It helps in real time tracing of the order at any point of time. 10. Pack break up Pack break up function in WMS is used when the customer wants desired quantity for their order and earlier the quantity was there in a set. At that point of time we have to break that set and pack that order into desired quantity. Suppose if customer required a quantity of 7 items and the pack size was 15. So we have to break that pack size in to 7. 11. Comment Manager Report Quality check order location Select Publisher Order Number Get Data Reports Status Report Order Schedule Status Select Publisher Get data Transaction Set Set Breakup Add
  51. 51. 51 In comment manager, We have to update the remarks related to the order so that the issue is bought in the knowledge of everyone from the company to the customer. If any order is getting delayed, or there is any issue regarding the order, or there is any change in the order, one has to update this remark on the WMS so that this stays in the knowledge of everyone. 12. Query Status Query Status shows all the complaints that have been raised by the customers regarding the orders which have to be further rectified and countermeasure of all the complaints have to be submitted there. If there was any issue with a certain order and if customer files a complaint on query status, a voucher is generated for that. By entering that voucher number, we have to provide an update on that. 13. Android DCU Logins With the help of this function, we can add a new person DCU id, we can modify the existing DCU ID of any individual and we can have a complete list of the person to whom the DCU ID logins are assigned. We can also track their login activities. 14. Reprinting Options Transaction Comment Manager Sale Order Comment Select Comment Type Remark Update Transaction Query Status Modify Voucher No. Update Adminstration Stock DCU Android login Add or Modify or List Enter Name
  52. 52. 52 14.1 Packing utility This is customized packing & here we generate pick slip after packing. We use this method to cater customer specific PS requirement. Another case packing utility is used when loose qty is high. Single order can be done at a time. First we will print a location wise slip and give it to the person for picking. Once the order is picked and packed, then we will generate the pack slip according the quantity in the carton. 14.2 Pick verification We use system generated pick slips here for the picking. Here we can print from a single order to multiple order simultaneously. 14.3Carton Id This function is used when we need to take a print of only one single carton pick slip. Here we have to enter just the carton Id, and the pick slip will be generated. Report Reprinting Location Wise Report Reprinting Pack slip Report Reprinting Order Pick slip
  53. 53. 53 4.6 Process Improvement in Picking and Packing Operations As we know we have 5 main publishers - 1. HarperCollins 2. Simon 3. Next Education 4. Relx 5. Hachette Report Reprinting Carton id Fig. – 38 Protections used in Packaging
  54. 54. 54 In the case of HarperCollins, Simon and Next Education, the Quality check process is done by the Pick and Pack team before the handover process and in the case of rest other publishers, the Quality check process is done by the Dispatch team after the handover process. Quality Check Operations Under (For Different Publishers) HarperCollins and Simon Done by Pick and Pack Team Next Education Done by Pick and Pack Team Relx Done by Dispatch Team Hachette Done by Dispatch Team The main reason for doing the QC check before the handover process in the case of harper Collins, Simon Next Education is because highest orders are placed in these publishers and most of the orders are of the loose quantity and it takes too much time to perform the QC operation after the handover process because a thorough segregation of every order and every carton is required. The chances of error in packing the loose quantity in every order is very high as there can be shortage or excess of quantity. This hampers the smooth flow of process and becomes a bottleneck for the dispatch team. So, to avoid such error, QC is performed at the time of Packing the carton. For the rest of the other publishers most of the orders are of Bulk which have same title and fixed quantity in every carton on which it is easy to perform the QC operations and chances of error are almost negligible. Understanding the Problem – Even after the QC task is designated to the pick and pack team in the case of HarperCollins, Simon and Next Education, the process was still suffering as there was too much variance coming during the QC process. Before that, let’s again understand again how the QC is performed at the Pick and Pack end – The procedure is almost same like how it’s done by the Dispatch department.
  55. 55. 55 • As the Carton is completed, we scan carton pick slip & physical weight (QC machine weight) is entered in DCU. • DCU will tally this physical weight with system, weight. • If variance in weight is greater than the least weight book inside, carton need to get opened for variance check. • All content is scanned by DCU one by one to match it with pick slip detail. According to Time Motion Study – Average Time taken to complete a process of packing with QC when - Carton is not opened again 4 min 48 Sec (288 sec) Carton is opened again 7 min 16 sec (432 sec) • Total Shift Time - 9 Hr ( 540 min) • Total Available Time – 8 Hr (480 min) • Total Time Spent for Picking – 4 Hr (240 Min) • Left Time for Packing and QC – 4 Hr (240 Min) If we calculate the average efficiency of a manpower considering the cycle time when carton is not opened again, the person can easily pack 45-50 Cartons But when the carton is opened, only an average of 30-35 carton is packed according to the cycle time.
  56. 56. 56 We consecutively monitored 50 cartons randomly on a daily basis for a week. Results were analysed after that. During this process, there was high variance coming due to which most of the carton was reopened and again every single quantity was scanned which was taking too much time to complete a single carton. Almost on a frequency of 50-60 % of total cartons was reopened in the case of Harper, Simon and Next Education. Here the manpower was able to achieve the Maximum carton packaging of 40 Cartons per shift which shows that the efficiency of the person is reduced by almost 10 Cartons. From this, we can conclude that this was heavily decreasing the efficiency of the process and increasing the cycle time.. Finding the Root Cause – To understand root cause of this problem, we tried to identified the different sets of possibilities that could have been affecting the process – 1. Correct weight of the books not uploaded in the system. 2. Weight Machines not working properly. 3. Excess or Shortage packed by manpower. 4. Manpower not feeding the right weight in the DCU. 5. Measurement not done properly. • When deep analysis was done on all the factors, it was concluded that the main factors which was responsible for the Carton opening at the time of the qc was that the correct weight of the books was not uploaded in the system which is done by the inward team during the book entry. • Another factor was that was responsible was that manpower was feeding the right value in the DCU most of the time.
  57. 57. 57 As a countermeasure to these , We took an initiative for completing this project of Re measurement of ISBN weight of Harper Publisher and Simon in the tenure of our training, we completed the project by measuring over 27000 individual ISBN. This will help in reducing the cycle time of the process and increasing the efficiency of the manpower simultaneously. With the help of this project, we were able to save an average of 40 min per shift and the manpower packing efficiency increased from 40 cartons to 48 cartons for the harper and Simon publisher. Also, we were facing an issue that the manpower was not feeding the right values in the DCU as they were getting confused between the Grams and Kilograms value. The weight machines showed the books weight in grams and in WMS system, the books weight was in Kilograms. So as a countermeasure for that, With the help of the IT team, We changed the measurement system of WMS from Kilograms to grams so that the manpower does not have any confusion while uploading the correct values. Training was also provided to the manpower to make them understand how to feed the correct value in the DCU and the explained benefits of feeding the right values in the system.
  58. 58. 58 CHAPTER 5 Logistics
  59. 59. 59 Introduction Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to meet the requirements of customers or corporations. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items. In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy, since an armed force without resources and transportation is defenseless. Military logistics was already practiced in the ancient world and as the modern military has a significant need for logistics solutions, advanced implementations have been developed. In military logistics, logistics officers manage how and when to move resources to the places they are needed. Logistics management is the part of supply chain management and supply chain engineering that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and point of consumption to meet customers' requirements. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician.
  60. 60. 60 Types Of Logistics There are many types of logistics. The most well known type is sales logistics that moves products from the producer to the consumer. In addition, there are a number of other types of logistics, such as procurement logistics which is the flow of raw materials and parts, production logistics which is the flow of materials inside a factory or business, recovery logistics which is the return flow of returns from consumers and waste, and recycling logistics which is the flow of recyclable materials. This section describes the types and fields of logistics in depth. Logistics Fields Logistics can be split into five types by field: procurement logistics, production logistics, sales logistics, recovery logistics, and recycling logistics. Each of these is explained in detail, but first we should learn about logistics fields and types. For recovery logistics and recycling logistics, both types are the same up to the recovery of goods from consumers, but recycling logistics is the type that recycles the goods that are collected.
  61. 61. 61 Procurement Logistics Procurement logistics is the flow of goods when the raw materials and parts necessary for manufacturing are procured from suppliers. This field did not attract much attention before, but now that small-lot production of a variety of models is the main type of production, many firms are actively pursuing production by procuring the necessary materials in only the necessary amounts at the necessary times (the shift to just-in-time production) because it is directly connected to reducing inventory costs. Production Logistics Production logistics is the flow of goods that includes the management of procured parts and materials, distribution inside a factory, product management, packaging, and shipping to warehouse. Delivery management, warehouse dispatch management, and shipping management can be optimized and the state of delivery vehicles can be managed by smoothly linking procurement logistics and sales logistics described later. Sales Logistics Logistics typically refers to sales logistics. In the past this was mainly delivery from delivery centers and logistics warehouses to distribution points such as wholesalers and retailers. But now direct delivery also makes up a large amount of this volume due to online shopping and e-commerce. Whether delivery through delivery centers and logistics warehouses or direct delivery from production sites, higher efficiency in transportation and delivery and shrinking inventory are indispensable for delivering the necessary goods to the necessary people in the necessary quantities at the necessary time. This also contributes to improving customer satisfaction. Recovery Logistics If the flow of goods from production to consumption by procurement logistics, production logistics, and sales logistics is described using the circulatory system of the body, it would be said to be forward logistics. On the other hand, recovery logistics or reverse logistics is the flow that recovers and recycles products, containers, and packaging that have fulfilled their role. Similar to recycling logistics described later, emphasis is being placed on this flow in recycling-oriented societies. Recycling Logistics Typical examples of recycling logistics are recovering and recycling empty cans, plastic bottles, and old paper. Containers, packaging, old computers, and inkjet cartridges can also be recovered and recycled in the same manner.
  62. 62. 62 KEY RESPONSIBILITIES IN AAJ ENTERPRISES PVT. LTD: • Administrate & leading the warehouse operations including order processing, outbound & reverse logistics activities. •Worked with the team of 50 associates and 6 supervisors along with the 4 MT's & 6 data entry operators. • Record and analyses the efficiency report of each associate in order to level up their Productivity. • Record and maintain all necessary logistics information in the WMS with accuracy and integrity. Responsible for reverse Logistics Activities & Managing multiple fleet Vehicles & FTL's. • Managing daily shipments to end customers as per publisher's quality standards. Responsible for aligning and closer of appointment deliveries particularly for AMAZON, Reliance and Flipkart on daily basis as per the given appointment schedules. •Supervising end customer problems raised due to product, quality issues or shipping. •Work on monthly MIS and SPR (Service performance report) received from the transporters to improving overall service level. • Perform monthly service review for all clients and perform action plan on the discussions of monthly service review meetings. Onboard new transporters with least cost to reduce the logistics cost. • Supervising tracking of all dockets on daily basis and share real time updates with the clients. • Responsible for local route planning and coordination with local transport vendors for the daily dispatches of material belongs to Delhi NCR. •Perform billing and send payment advice to the transporters and ensure timely payment from the accounts team. • Supervising to keep records of the PODs for all delivered shipments.
  63. 63. 63 References https://www.aajenterprises.com https://articles.cyzerg.com/warehouse-processes-how-to-optimize-them http://aaupwiki.princeton.edu/index.php/Warehouse_Operations https://prezi.com/p/tbfkijxkhhhv/induction-ppt/ https://6river.com/best-order-picking-methods/

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