Académique Documents
Professionnel Documents
Culture Documents
To make a bridge between what I have learnt theoretically and how these are practically.
Specific
Objectives
Centralized warehouse
De-centralized warehouse
Centralized warehouse
Centralization generally refers to the allocation of the warehousing services to one particular business unit which provides
services to the whole firm. The decisions are made at the central location for the entire network. The main characteristics of a
centralized approach are control, efficiency and good economy.
Benefits:
Improved efficiency
Limitations:
Problem of concentration of customers in only certain markets and inhomogeneous customer structure
Long internal transport paths in large central warehouses and higher costs for the infrastructure
Inflexibility
Dependent systems
De-centralized warehouse: Decentralization approach gives the individual business units autonomy and independency over
their own resources without any major considerations over the remaining units unless there is a necessity for the overall
organization policy. In this approach each facility identifies its most effective strategy without considering the impact on the
remaining facilities in the network and this leads to the local optimization. The main characteristics of the decentralized approach
are empowerment of individual business units, flexibility, and service orientation. They provide as good service as the centralized
warehouses in terms of customer service level.
Benefits:
Flexibility
Quality
Innovation
Increase in responsiveness
Improvement in reliability
AS/RS systems became obsolete and more emphasis was paid on reducing inventories, small batch production and Just in time
delivery. (Tompkins, Smith, 1998).
In early days man used to store excess food and keeping animals for emergency surplus. As the civilization developed, local
warehouses were introduced. Normally merchandise is stored in connection with shipping, trading, and manufacturing activities.
During the Middle Ages improvement in human knowledge gave rise to warehousing to handle the storage of shipped items. The
first known major commercial warehouse was built in Venice, a centre of major trade routes. In late 1800s in the United States,
transportation between port cities and inland cities were effectively provided by railroad. Freight cars were used as warehouses
on wheels, and were especially used in grain harvest season. Shortages in freight cars induced the railroad companies to
partition the transportation and warehousing functions. During this time period because of monopoly on both warehousing and
freight by railroad companies favoured large corporations, giving them free warehousing services with the use of the railroads.
The warehousing facility was provided as an additional service to transportation, and the service so provided was part of the
clearance terminal. The word terminal describes the warehouses were located in the centre of the city, normally close to the
wholesale market district and railroad depot. Tompkins, Smith, 1998).
1.4.6 Changing trends of warehousing
Due to the changing trends in the businesses, warehousing and distribution operations should adopt to the emerging changes
and growing needs of the customers. The term Globalization brought rigorous changes in the field of logistics. The distribution
operations now pay more emphasis on fewer inventories, smaller order sizes, larger SKU catalogues, quicker order turnaround,
increased customized packaging and value adding services. Once the businesses concentrated only on local distribution centres
and now all the companies give more importance on having more globalized distribution centres, and instead of having single
network channel, they are having multiple distribution channels.
In order to cope to these changing trends every second, most of the companies have deployed new technologies such as
Warehouse management systems (WMS) and Transportation management systems (TMS) and some have decided to redesign
the processes and facilities to meet the emerging requirements as well as to reduce costs and improve service levels to the
customers at the same time. Some large scale businesses have gone one step ahead and decided to deploy automation of the
whole warehousing operations. Some have already opted to outsource all their warehousing operations to third party logistics
provider (3PL). (Hompel,Ten.,Michael ., Schmidt, Thorsten., 2007).
Development of automation and control systems
Training of employees
3PL providers:
For the operation a report various relevant data and information are most essential. But the officials did not operate to meet the
requirement
I observed that unskilled persons are available in CBL; they are not able to teach us various aspects.
There are also limitations regarding memory and knowledge of the respondent.
Some of the secondary sources i.e. the company personal were uncooperative
The company authority was very busy, so they could not give me enough time for discussion about various problems.
Due to limited time it was not possible to prepare the report properly.
In spite of these limitations it can be said that, such limitations are common to almost all data base study. Yet the researcher has
tried his best to minimize the profitability of errors. However the researcher believes that after taking possible precautions and
findings have been affected very little by the limitation of the study.
Chapter Two
Scenario of Warehouse Management in Bangladesh
2.1 Warehouse Management Today
If we take the view that Warehouse Management is what Warehouse Management people do, then in 1990 Warehouse
Management has a firm hand on all aspects of physical distribution and materials management. Seventy-five percent or more of
respondents included the following activities as part of their companys Warehouse Management department functions:
Receiving of stock
Stock put-away
Moreover, the Warehouse Management department is expected to increase its range of responsibilities, most often in line with
the thinking that sees the order fulfilment process as one co-ordinated set of activities. Thus the functions most often cited as
planning to formally include in the Warehouse Management department are:
Receiving processing
Order processing
Distribution process
On the other hand, there are certain functions which some of us might feel logically belong to Warehouse Management which
companies feel are the proper domain of other departments. Most difficult to bring under the umbrella of Warehouse
Management are:
Carrier interfaces
Pre-distribution
Write-in responses reveal the leading edge of what some Warehouse Management departments are doing. These include
engineering change control for packaging; custom design packaging; drafting national Warehouse Management standards; and
implementing WMS software
2.2 Warehouse Management Tomorrow
The future for Warehouse Management looks very bright. This year, as well as last year, two major trends are benefiting
Warehouse Management operations. These aregiven in next page:
Distribution service
Information technology
Successful organisations must be excellent in both of these areas, so the importance of Warehouse Management and the tools
available to do the job right will continue to expand.
Chapter Three
An Overview of COATS Bangladesh Limited
3.1 Organizational Overview:
In its journey of more than 200 years, Coats has established its manufacturing plants in more than 70 countries and expanded its
business operations in over 150 countries, worldwide.
In 1990, Coats expanded its business horizons in Bangladesh and started its operations as Total Thread Bangladesh Ltd. In
1997, a global merger with Coats and Total Thread formed which is presently recognized as COATS Bangladesh Ltd. At present,
COATS Bangladesh Ltd has 2 state-of-the-art Dyeing plants established in Chittagong and Gazipur and has a warehouse in
Gazipur. With over 1000 dedicated employees, COATS Bangladesh is one of finest examples of enriched Warehouse
Management.
At COATS Bangladesh, people do not stand on their position. Thought, contribution and teamwork are valued over job titles and
status. They operate on informal basis with one another. Coats see ourselves as members of a global team, all with something
important to contribute.
The atmosphere at COATS Bangladesh is designed to foster personal, professional and corporate growth. Coats work together
in a spirit of cooperative teamwork and trust, emphasizing the following shared values:
Coats know what they are doing, they know what to do, they keep Coats promises; globally Coats recognize that customers pay
for actions, not words. Coats commit ourselves to understand and improve customer profitability. Its take social, ethical and
environmental responsibilities seriously. Its use there capacity to imagine, innovate and improve. Its take considered risks. Its
competing as a team. Coats are proud of Coats and there collective achievement. Coats view the future with confidence. Its
expected there work environment to reflect a sense of community while nurturing a commitment to innovation. You will find a
culture that encourages open dialogue and the sharing of ideas, that prefers conversations over presentations. Coats are
comfortable, yet professional. they are casual, yet respectful.
3.1.1 COATS Yesterday
Coats plc has its roots in the very beginning of the industrial revolution, dated back to the mid 18th century. Coats family
established its business in Paisley, Scotland in 1755. In 1896 Clarks, another thread manufacturer, merged with Coats.
Originating in Paisley, Scotland, both Coats and Clark families were the pioneers of sewing thread and embroidery thread
manufacture and distribution in the UK. Coats manufactured sewing and crochet threads, including mercer crochet, while the
Clark family manufactured Anchor embroidery threads. In the 1980s another large textile group Vantona Viyella merged with
Coats and subsequently acquired Total Group another famous UK name.
3.1.2 COATS Today
Every four hours Coats makes enough thread to reach the moon and back, thats an amazing 770,000 kilometres, or 478,000
miles. Coats thread has been to the moon and back as part of astronauts space suits and its also landed on Mars as a crucial
component of the air bags that cushioned the landing of NASAs probe. Coats can delivery there product on moon at present (if
customer wants).
3.1.3 COATS Tomorrow
Looking ahead there are many exciting developments in the world of textiles and distribution. Fact often follows fiction
especially science fiction! Anyone who has seen the blockbusting movie, Minority Report, will realise that intelligent materials
could be tomorrows reality. Part of our challenge is to anticipate the needs of the future and we look as far as 25 years ahead
and position ourselves to work with other forward-looking companies. We view our future with confidence.
Coats is the worlds leading producer and supplier of sewing thread used by clothing companies, footwear manufacturers,
furniture makers, car seat upholsterers and people who sew at home. We are the only company in the world with the capability to
produce thousands of thread products to high quality standards and in colours specified to meet the unique requirements of
customers.
Today, we have manufacturing facilities in 68 countries in the world and our products are marketed in 150 countries. Our global
reach means we have the capability to ensure swift product delivery anywhere in the world and (moon).
3.1.4 Vision:
At COATS have a clearly defined vision?
COATS will be the leader in value added engineered yarns and threads for industrial and consumer use.
COATS will develop and supply highly complementary products and services, where they add significant value to customers.
COATS will achieve success through customer-focused innovation and winning propositions driven by motivated people and
global teamwork.
3.1.5 Mission:
Our mission is to provide excellent solutions to our customers and partners that are cost-effective, socially responsible and
environmentally friendly, by maintaining the highest safety standards and applying the best industry practices with optimal
resource utilization.
3.1.6 Goals:
We are focused on three goals which will help us to achieve our vision:
Positive teamwork
Receiving Department
Packing Department
Invoice Department
Distribution Department
3.6 Services:
Coats Bangladesh (warehouse) offer warehousing and distribution solutions all over the country.
Chapter Four
Practical Experiences Gathered Through Doing Job in COATS Bangladesh Ltd
4.1 Practical Work Experiences
As a partial fulfilment of MBA program, Jagannath University I am conducting work on Warehouse Management of COATS
Bangladesh Limited (CBL).The information gathered will be used for academic purpose only Research work is not an easy task
in a developing country like Bangladesh. When I started doing my job, I had to face some difficulties including respondents are
so busy in their work. They could not provide time enough for the information required for preparing internee paper. Lack of the
up to date information is one of the major limitation. Others limitations are as follows
1.
a) Access to various information, as it is the secrets of this report success, so I have to accomplish this study depending on
some limited materials.
2.
b) I also face some problems because lack of sufficient books in COATS Bangladesh Limited (Warehouse) Library about
Warehouse Management.
3.
c) Because of time and cost constrains, it is not possible to generate a representative sample size and also to use simple
random sampling procedure.
4.
d) Lack of time and resource constraint has also limited the scope to conduct the survey smoothly and so as to prepare the
internee report.
5.
e) Experience makes a man efficient such kind of research of research activity is done by me for the first time. Thats why
inexperience creates obstacle to follow the systematic and logical research methodology.
Although above limitations, I tried my level best to prepare this master paper. I think this master paper will be a good source of
further research about Warehouse Management. I gathered some experiences through this research work including the
following:
4.1.1 Experience in Collecting Data
While conducting the survey I went through many good and bad experiences. To collect data I visit the employees of the COATS
Bangladesh Limited (Warehouse). Most of the employees very helpful. They co-operated with me and were ready to lend a hand.
On the other hand few employees were totally opposite as most of them were not willing to help me at all and was very rude to
me. They were also having a kind of fear while answering the questionnaires. I had a great experience meeting many well known
celebrities and proprietors of big organization while I was conducting the survey on the warehouse. Many of them were very
impressed looking at my questionnaire and also helped me taking further survey on the warehouse.
4.1.2 Interaction with Different Levels of Warehouse Officials
Except from the usual works I had interactions with the managers, officers and my colleagues.
Interaction with the Managers
In last three months I had attended training session and some lecturers that were given by the managers. Beside these, I had
informal discussions with the managers regarding my problem on warehouse management, my mistakes and also about my
report. The managers were very much helpful regarding my problems and other situations.
4.2 Knowledge about Practical Warehouse Management in COATS Bangladesh
By doing this internee I have some experiences about those areas:
Warehouse management
Distribution
Warehouse administration
Sock control
Performance management
Operational efficiencies
Staff recruitment
Plan, develop, organize, direct, manage and evaluate the operations and budget of warehousing facilities.
Plan, develop, and implement warehouse health and safety, and security programs and activities.
Develop warehouse operations policies and procedures and communicate this information to staff.
Develop and implement profit improvement plans and change management plans
Direct and control corporate governance and regulatory compliance procedures within the warehouse operations department
Develop key performance indicators to measure the effectiveness of the warehouse operation.
Remain current with latest warehouse operations technology systems and procedures.
Plan, organize and direct warehousing related administrative services such as signage, cleaning, installations, maintenance,
repair, safety inspections, parking, and snow removal.
Plan, organize, direct, manage and evaluate construction projects to modify warehousing facilities
Perform day to day administrative tasks such as maintaining files and processing paperwork.
Prepare or direct preparation of correspondence, reports, statistics related to the warehouse operations area of responsibility,
and operations, maintenance, and safety manuals.
Interview, select, coach, train, manage, and appraise the performance of warehouse and supervisory personnel.
Confer with department supervisors to coordinate warehouse activities, such as production, sales, records control, and
purchasing.
Review contracts, invoices, work orders, consumption reports, and demand forecasts to estimate peak delivery periods and to
issue work assignments.
Develop and maintain working environments that are health and safety couscous,
Empower employees to provide service to others and work with co- workers in a friendly environment.
Oral Communication
Provide clear and concise direction and instructions to staff and other departments, sometimes during high stress situations
Professional communications with clients, customers, staff, and colleagues using a variety of communications devices and
media
Work Style The following work styles are attributable to a Warehouse Operations Manager: integrity leadership, tenacity,
dependability, attention to detail, set personally challenging achievement goals, initiative, cooperation, stress tolerance,
adaptability/flexibility, and persistence.
4.7 Thinking Skills
To successful warehouse management one person need some thinking skills which are:
Problem Solving
Respond to complaints by discussing the details with staff and recommending solutions,
Identify problems with warehousing operations, and take the appropriate action to deal with them
Identify problems with the implementation of health and safety procedures, and take the appropriate action to deal with them,
Identify practical solutions when work is backlogged through prioritization and rationalization exercises
Decision Making
Make decisions with market, economic, social, and political environments taken in to account
Decisions are made in line with the warehouse operations strategy of the organization
Make decisions about suggestions for change (e.g. trying out a new service provider)
Job Task Planning and Organizing Liaison with employees and other management is necessary to co-ordinate warehouse
operations activities
Significant Use of Memory
Remember health and safety regulatory requirements and other associated regulatory requirements.
Finding Information
Obtain information on the current legislation and regulations that apply to material handling and warehouse operations
Trade magazines
Newsletters
Periodicals
Warehousing documentation (e.g. storage requirements, schedules, dispatch notices, statistics, contracts, other legal
document)
Collective agreements
Resumes
Performance report
Read and interpret dense and complex texts, and have ability to make high-level inferences using specialized knowledge
Trade terms
International standards
Regulation (e.g. labour, health and safety, dangerous good, spill incidents, other warehousing related)
Document Use
Documents produced and/or used may include graphs, charts, lists, tables, schematics, drawings, schedules, labels, warning
signs, information signs, and etcetera, in both print and non-print media.
Must be able to read simple to complex documents in which considerable inference may be required
Must be able to read/interpret, and write/complete/produce documents
Specialized knowledge of the content of the document may be required; multiple pieces of information from multiple sources
are synthesized; the quality of information may be evaluated for accuracy and omissions
4.9.2 Putaway
Order picking in reverse is known as putaway. Most of the principles which enhance or streamline the picking process work well
for putaway. Principles for putaway are
1.
i) Direct putaway ii) Directed putaway iii) Batched and sequenced putaway
2.
iv) Interleaving
1.
i) Block stacking ii) Stacking frames iii) Single-deep selective pallet rack
2.
iv) Double-deep rack v) Drive-in rack vi) Drive-thru-rack vii) Pallet flow rack
2.
i) Pick face palletizing systems ii) Downstream palletizing systems iii) Direct loading systems. (Briggs, 1978)
i) Container optimization ii) Container loading and void fill iii) Weigh checking
2.
Enhanced learning may be acquired as part of regular work activity, through training offered in-house, through reading or other
forms of self-study, or through off-site training. Ongoing learning occurs through participation in professional organizations,
seminars, formal courses, conferences and trade shows. Skills may be upgraded by taking management classes through
educational institutions.
Chapter Five
Fndings & Analysis
5 Analysis
5.1 SWOT Analysis of COATS Bangladesh Limited (CBL).
SWOT is an acronym for the internal Strength and Weakness of the firm and the environmental Opportunity and Threat facing
that firm. So, if we consider CBL as a business firm and analyze its strength, weakness, opportunity and threat the scenario will
be as follows:
Identification of SWOT
Here,
S
denotes Strengths
W denotes Weaknesses
O denotes Opportunities
T denotes Threats
5.2 SWOT Analysis of Organization:
Strengths:
1.
2.
3.
Company operates through its experience and stronghold of the established network.
4.
5.
6.
7.
Strong relationship.
8.
9.
10.
11.
Weaknesses:
1.
Technology upgrade
2.
3.
4.
Power system
5.
Management
Opportunities:
1.
2.
3.
4.
5.
Loosing of regulations
6.
7.
Threats:
1.
2.
3.
4.
5.
6.
New regulations.
7.
8.
5.3 Conclusion
From the above SWOT we see that CBL has many strong and weak sides internally and externally. But it should always focus on
customer satisfaction and try to be a standard quality all over the country. CBL can adopt diversification strategy in expanding
the business into insurance company.
5.4 Prepare Action Plan
The action plan of SWOT analysis is to translate the diagnosis of the companys situation into action for improving the companys
strategy and business prospects
The CBL uses their strengths and capabilities as cornerstones for strategy.
The CBL pursues those opportunities best suited to bank strengths and capabilities.
The CBL correct weaknesses and deficiencies that impair pursuit of important market opportunities or heighten vulnerability to
external threats.
5.5 Finding
Top performers are discovering methods to increase throughput and efficiency, while keeping costs flat or lowering overall
warehousing costs. Across the board, companies that are above average warehouse performers in their industry classified as
Best in Class companies outstrip their average and laggard counterparts by logging between 97% to 99% on-time complete
shipments to customer request date while others struggled to fill orders as effectively. Further, Best in Class have been much
more successful than their peers at decreasing their warehousing costs and lowering customer order fulfilment times.
The Best in Class point to an extensively proliferated warehouse visibility infrastructure that allows them to share information
throughout their operation and across the company. Another respondent points to visibility as a means to improvement. A senior vice
president in supply at a large retailer indicates that faster information access to critical users coupled with extended shipping-
The Best in Class are more than twice as likely to have an RFID tagging support sys-tem versus their peers, further indicating
their belief in the importance of technology for high-performing, customer-centric warehouses.
The Best in Class have also invested in other types of warehouse technology that support agility and speedy throughput. The
Best in Class, typically, have invested or plan to in-vest within 12 months in labour management capabilities, slotting, dashboard
systems, RFID, and other technologies. The industry average companies and Laggards use these technologies to a much lower
extent.
The following are a list of actions respondents report taking to overcome their warehouse productivity barriers.
We will complete the implementation of a new WMS warehouse manager at a small consumer packaged goods distributor
Following our WMS implementation, we are now normalizing and continuing to align data along with the staff training required
to re-establish a new level of standards warehouse manager at mid-size industrial equipment manufacturer
We are working with consultants to redesign our warehouse layout and implement RF technology senior vice president at a
processor
We are visiting efficient facilities [to learn best practices], and continue to re-quest IT support warehouse manager at a midsize metals products manufacturer
Chapter Six
Recommendation & Conclusion
6.1 Recommendation for Action
There are many things to consider when determining how to manage a warehouse. Think about the associated tasks, the duties
and the responsibilities. These may include shipping, receiving, inventory control, storage and distributing. This report provides
best practice examples for small, midsize, and large warehouse and distribution centre operators. To improve warehouse
performance, companies should be prioritizing:
Keep your warehouse floors free from water, oil, cleaning products and other spills that may cause
Clear all traffic areas of cartons, plastic wrap and other debris that may cause accidents.
Provide a warehouse safety program that fits your needs. Make certain all warehouse employees attend this
who will operate warehouse equipment, such as forklifts, mechanical loaders, electric stackers, lifters and shrink wrappers.
Verify that warehouse employees have attended the appropriate training or received proper
certifications for vehicles or equipment they operate.
Enforce safety regulations
Ensure that management, warehouse handlers and other employees wear hard hats, steel-toed
boots, safety goggles and heavy gloves. Make sure employees are following any other mandates. If employees must
wear hard hats in the warehouse, do not make exceptions.
Mitigate accidents. Warehouse handlers often operate forklifts and other heavy equipment to carry, hoist, move,
load and unload merchandise. Smaller companies may do these tasks manually with the help of hand trucks. Regardless of the
Report all vehicle defects and equipment malfunctions. Oversee necessary repairs and test
equipment before returning the item to the warehouse floor.
Manage Warehouse Employees
Be sure the appropriate supervisor participates in this process. He will know whether the applicant
possesses the required skills and necessary experience.
Perform employee evaluations periodically.
Give praise for good performance, highlight strengths and reward good performance and behaviour.
Identify weaknesses and bad behaviour. Make suggestions and recommendations for immediate
improvement.
Follow up with the employee to discuss the steps taken to correct or improve areas of performance
or behaviour.
6.2 Conclusions
In this a summary of the key findings and discussion about the attained key findings is provided. It also expresses the final
conclusions which were developed on the theoretical, practical work and the analysis part of the internee work.
The purpose of this internee work is to give an overview and to understand deeply the concept of Warehouse Management,
which is defined and interpreted in theory and practice. In order to get an overview, both theoretical and practical work is
conducted. The theoretical study is conducted by carrying out a research work on relevant literature through textbooks, scientific
articles, internet etc. In the practical work, I investigate the present state of the warehouse management and examine whether
the case companies utilize the practices that the literature points out based on theoretical background. The practical work is
implemented by working on COATS Bangladesh Limited (Warehouse).
The present cases are facing some problems in the labour management in the warehouses. This can be due to the lack of
knowledge in managerial skills. These can be eliminated only by giving a rigorous training for the employees in order to reduce
the human errors in the system and also manage the resources and man power efficiently.
Even though, there are enormous numbers of technologies available in the market, the companies are still hesitating to upgrade
their warehouses due to the fear of high initial costs which are incurred due to the up gradation. The warehouses are playing a
safe game by implementing some new technologies but not completely switching to the modern warehousing concept which is
also called the paperless system. They are carrying on with the traditional warehousing concepts but at the same time improving
some areas where there is a need to do so.