EXECUTIVE SUMMERY

In general, warehouses are focal points for product and information flow between sources
of supply and beneficiaries. However, in humanitarian supply chains, warehouses vary
greatly in terms of their role and their characteristics.
Space organization means assigning space to an activity and systematically arranging all
the materials required for it. The important aspects of space organization are- allotting
space for the activity making available on the spot all that is required for the activity
arranging systematically all the materials and equipment required for the activity.
It is desirable that all the materials required for performing a specific task are stored
nearby so that you do not waste your time and energy in collecting the materials and
storing it back. Such an arrangement for storage is termed as functional storage.
Also, if two or more activities need to be performed nearby then their working areas can
also be organized in such a way that they can be performed simultaneously. For example,
if you want to wash utensils while the food is being cooked and the water arrangement is
in the kitchen, then both the tasks can be completed simultaneously and effectively. But if
water source is at a distance then unnecessary movements have to be made while doing
the two jobs together, or one will have to be performed after the other.

1
CITI SOLUTIONS WAREHOUSING & DISTRIBUTION PVT LTD

2
 CHAPTER NO.1

INTRODUCTION

We offer 3PL (Third Party Logistics) services to our customers, such as warehousing and
transportation services. Our warehouses are strategically located, compliant with the latest
technology and round-the-clock security. Our Services can be scaled and customized to
customer's needs, based on market conditions, demands and delivery service requirements
for their products and materials. We can receive products from suppliers, warehouse the
products and then distribute them according to our customer's requirements. Whatever
industry sector you operate in, Citi Solutions provides dedicated and shared warehousing
and distribution operations to ensure that you can deliver your service promise to all your
customers

3PL services with complete space management from floor to vertical racking
system

WMS - as technology is one of the pillar of our CITI a strong portfolio of

warehouse management systems and interface software to drive productivity and
enable faster and more reliable startups

Best practice operational processes, controls and management information

Transportation

Moving products from manufacturing plants to warehouses, between national, and

regional facilities and to distributors, can represent more than half of your total logistics
costs. Modes of distribution are mandatory for a smooth and successful supply chain. We
offer transportation services that can be scaled and customized according to customer
needs based on market conditions, demands and delivery service requirements.
Transportation management solutions give you the resources and visibility you need, at a
cost you can manage.

3
4
 Local and Upcountry distribution services

Undertaking product pick-up, warehousing and distribution responsibilities

responsibilities Ensure safe & timely delivery of your products

Value added Services Citi warehousing & Distribution is not just about holding stock.
There are a wide range of additional services that we offer, as part of an overall solution
that can improve the performance of your supply chain.

Pick and pack services

Shrink wrapping

Kitting ,Labelling & repacking

Stuffing and de-stuffing

Inspection and verification services Freight Forwarding

We have experienced team to handle all type of sea and air freight shipments with
an ease

We are having our own MTD ( MTO Bills of Lading ) license registered with
government India ( DG shipping)

Expertise in handling all kind of import and export shipments under different
INCO terms

Excellent rapport with all shipping lines , customs and port authorities in India

We can confidently handle heavy lifts and project cargos ,break Bulk shipments

5
 All kind of ODC (Odd dimension cargos ) shipments can be handle smoothly

Our USP is to handle Liquid Bulk cargos in ISO tank, Flexi Bags, IBCetc.

We have all expertise and knowledge to handle Hazardous and Non-Hazardous

shipment by Sea and Air.

Our specialty to handle Perishable and consumable goods by Sea and Air

Our experienced and reliable overseas network partners allow us presence all over
the globe.

We can handle cross-trade shipments with an ease. Shipping Agency

Representation

Our Team is having collective experience of more than 20 years in handling

various ISO Tank operators in world.

Currently representing couple of Top ISO tank Operators on NON-EXCLUSIVE

terms.

We are having exposure and experience of handling all type of ISO tanks like T11
and T50etc.

We also have resources and experience to handle GP, Reefer, Special Equipments
like OT, FR.etc.

We have all valid registration at Customs and port terminals, ICD to handle our
Principals equipments.

Good rapport with Feeder Operators and Shipping lines allows competitive slot
rates negotiations

6
 For smooth operations of the equipments/inventory we have good rapports with
CONCOR ,Port authorities , ICDs

Excellent relationship with all ISO tank Cleaning Depots in India.

With strong customer base and market knowledge in chemical industry we can
control maximum share of ISO tank business in India with the support of our
principals. Customs Broker

We are well verse with the import and export customs procedures at all key
customs points in India.

Updated knowledge about current EXIM policies in India.

We guide and assist our clients to procure licenses from DGFT

We have expertise to handle factory stuffing as well as dock stuffing customs

clearances

Expertise in handling project cargos , break Bulk , Heavy lift , ODC shipments ,
Hazardous cargos and Perishable cargos.

We have experienced and well trained field staff to carry out customs examination
procedures round the clock.

We have knowledgeable personnels to prepare customs documentation and

process the same in the customs house.

CHAPTER NO.2
2.1 PURPOSE OF THIS STUDY

The purpose of this thesis work is to give an overview and to understand deeply the

7
concept of Warehousing, which is defined and interpreted in theory and practice. In
order to get an overview, both theoretical and empirical studies are conducted. The
theoretical study is conducted by carrying out a research work on relevant literature
through textbooks, scientific articles, internet etc. In the empirical study, we investigate
the present state of the warehouses and examine whether the case companies utilize the
practices that the literature points out based on theoretical background. The empirical
study is implemented by interviewing warehouse managers of four firms with the help of
a questionnaire.

8
2.2 OBJECTIVES OF STUDY

Give an overview and to briefly present the concept of Warehousing.

Emphasize on various terms related to warehousing and also to examine all

the operations which are performed in a warehouse.
Examine latest technologies available in Warehousing and discussing the
pros and cons of the available technologies.
To study and analyze the warehouse and logistics pattern at Citi
solution Pvt. ltd
To evaluate the reasons for low satisfaction level in warehousing and
ways to improve warehousing efficiency.
To strengthen the logistics network in India.
Strives to progressively improve overall organization performance and
capabilities.
Is engaged in continual search for potential customers as to have regular
increase in the volume of business.
To study the various ways to manage the space in the
warehouse so that the space would be used for some other
purpose
To analysis the different inward and the outward of the
products according to the requirement of the client.
To manage the floor in such a way that would minimize the
wastage in the floor management.
To analysis the function of the warehouse on day to day basis
and the arrangement done to fulfill the requirement.

Such work environment is created within the organization which is

conducive and beneficial to achieve better result.

2.3 SCOPE OF STUDY

1. Track exact stock location within one storage location with FIFO.

9
2. Provides put away functionality for palletizing etc.

3. Provides better picking functionality.

4. Allows for picking locations with replenishment when falls below a defined
quantity.

5. Allows segregation of stock types within a warehouse

6. This study will helps to the understand customers preference and their needs
expected from the business owners.
7. This study will not only help me as a student but it also assists to know the
satisfaction level of the organization.
8. And also investing the time into developing an efficient lead generation and
nurturing funnel is equally as important as the time spent in closing deals.

CHAPTER NO.3

RESEARCH METHODLOGY

10
This deals with the methods followed in order to write the thesis and also to give the
reader an overview of the methodology of the thesis work carried out in writing thesis
work. This chapter presents an ideology and concepts of different research strategies, main
scientific and research approaches. Finally, the methods which are relevant to this thesis
work are also explained briefly.

RESEARCH STRATEGY

There are mainly two types of approaches in writing a thesis work i.e. a theoretical or an
empirical one. The theoretical approach requires very intensive textual investigation and
the empirical approach requires extensive communication and interaction with people. Our
aim is to present a practical case which is based mostly on the theoretical studies. This
thesis mainly pays emphasis on the practical approach and at the same time to make it
possible, a good theoretical background is a pre-requisite.

DATA COLLECTION

The data used for a research work can be collected from several sources. The data which is
used for both theoretical as well as the empirical approach can be collected from various
sources such as archival records, interviews, observations, physical artifacts etc. This
collected data can be basically divided into two different types, primary and secondary
data.

PRIMARY DATA

The primary data implicates the collection of information through direct observation,
personal interviews, questionnaire and conducting conversation. This is basically the data
collected by the researcher during the project which is only used for the project for the
research work. The basic requirement for this work is that there is no previous
documentation on the ongoing research work. This data is very important to create an
understanding for an individual project.

OBSERVATION METHOD
11
Observation is way of gathering data by watching behavior, events, or noting physical
characteristics in their natural setting. Observations can be overt or covert. The benefit of
covert observation is that people are more likely to behave naturally if they do not know
they are being observed.

Things which observe at warehouse

Proper material managements (Rack system is used).

Proper manpower management
Proper utilization of space
Proper utilization of system.

SECONDARY DATA

The secondary data means the study of documents, biographies, websites, textbooks,
scientific articles and other historical and documentary records which are relevant for the
research study. This type of data can be assembled from already existing documentation.
Basically all the data which is collected for a specific research area is called secondary
data. We used primary as well as the secondary information to support our thesis work.
The warehouse managers were kind enough to answer most of the questions in the
questionnaire and we have got lots of valuable information about warehouse management
system. The secondary data about the research area was mainly gathered from some of the
textbooks based on warehouse management and some of the theory was also collected
from many scientific articles related to the research topi

12
 CHAPTER NO.4

4.1 COMPANY PROFILE

CITI SOLUTION WAREHOUSE

Citi Solutions Warehousing & Distribution Pvt Ltd

Sai Krishna Complex,

Warehouse No A & H (Approx 2 Lakhs sq. ft),

Opp. Dashmesh Petrol Pump,

NH-3 Highway,

Kukse Village, Bhiwandi - 421302

Maharashtra, India.

Contact: 09158885940 / 09167782161 / 09987717579

13
CITI SOLUTIONS WAREHOUSING & DISTRIBUTION PVT. LTD.

We are a professionally managed 3PL company. Our Goal is mentioned in our name
itself...CITI i.e. Cargo Integrity Technology & Innovations All our Warehouses are State
Of Art facilities, dust free, equipped with all new & modern infrastructures like PEB
structure (center height min 30 ft), floor with point load capacity of 5 to 7 tons per sq mtr.,
fast operating docks with hydraulic Dock levelers, 3phase electricity with power backup
of DG Set, PVC curtains on entry gate to maintain dust free nature, high speed
connectivity & CCTV cameras We have balance ratio of Floor & Heavy Duty Racking
area, with all required Material Handling Equipment (MHE) & Operating equipments
which help smooth functioning of inside warehouse operations, we have best set of
skilled, semi skilled & unskilled labors who have deep understanding of customers
operations requirements, all our Staff, Executives, Managers are well trained & have
experience to handle cargo of all verticals of Industry... with help of all this we offer wide
range of high quality & efficient services in Loading, Unloading, Product Storage ,
complete inventory management system & Warehouse Management System.

14
Our Distribution network is widely spread across nation, our strength is Local &
upcountry... We design and provide customize distribution solutions to all our customers...
we provide per piece, per trip, per day, per month, LTL, FTL shared & dedicated solutions.

Being a customer focused organization; we take complete responsibility for service

excellence. In order to deliver top quality service we build and maintain several best
practices, this makes service excellence possible and worthwhile. We have a team of
highly skilled professionals headed by couple of very experienced people with excellent
operational and industrial knowledge in servicing and maintaining 3Pl Services

"Safety" Our primary focus while providing services will be on human safety, client
product safety, infrastructure safety & environmental safety - managed by our Expert
Safety Team Our slogan is "Safety comes first".

Citi Solutions Warehousing & Distribution has backing of good Strong Multiple Investors
who has belief & confidence in our capacity to deliver. We are committed to our
commitment for them.

15
4.2 PROCESS OF THE COMPANY

16
 4.3 USE OF IT IN CITI SOLUTION

SAP SE (Systems Applications Products Societas Europaea) is a European multinational

software corporation that makes enterprise software to manage business operations and
customer relations.

The company's best-known software products are its enterprise resource planning
application systems and management (SAP ERP), its enterprise data warehouse product
SAP Business Warehouse (SAP BW), SAP Business Objects software, and most recently,
Sybase mobile products and the in-memory computing appliance SAP HANA.

SAP SE used for

INVOICE& BILLING,

GOODS RECEIVED NOTE,

INWORD,

OUTWORD,

DISPATCH,

17
 4.4 VISION AND MISSION

VISION

Our aim is to make our customers, employees, investors & Society happy, more successful
& help them to achieve & grow more. We believe that Society plays an important role in
establishment of all new ventures & we have an obligation to act for the society at large,
hence Social Responsibility is our duty, we are committed to contribute to the Society &
have big plans for the same. We will always demonstrate respect when achieving our
results.

OUR MISSION

Our vision is to create innovative and lasting partnerships with our customers, enabling
continuous improvement in the systems and services we provide. Our success is
guaranteed by the contributions of our professional team who take great pride in all of
their endeavors

OUR VALUES

Our vision is to create innovative and lasting partnerships with our customers, enabling
continuous improvement in the systems and services we provide. Our success is
guaranteed by the contributions of our professional team who take great pride in all of
their endeavors.

How we accomplish our mission is as important as the mission itself. Fundamental to our
success are those basic shared values: Satisfy our customers with the highest quality and
services available Preserve the trust, integrity and accountability that our customers have
expected from us for over a century and a half Respect the skills, dedication and initiative

18
of every member of the Belt's team Maintain financial stability through a fair and
reasonable return for our efforts

CHAPTER NO.: 5

WHAT IS FLOOR MANAGEMENT?

A shop floor management system plays a key role in managing the flow of materials inside
the plant. An effectively-implemented shop floor management system serves as a mediator
between production control and the shop floor. An effectively-implemented Shop Floor
Management system serves as a mediator between production control and the shop floor.
It allows you to manage and track manufacturing work orders. It uses data from the shop
floor to maintain and communicate status information regarding materials, work centers,
routing instructions, and end operations that are required to complete the production
requests. A traditional shop floor uses dispatch lists, capacity requirements, finite
scheduling, capacity planning, capacity simulation, and optimization. Some companies
might also use bar coding, kanban, and just-in-time manufacturing processes on the shop
floor.

WHAT IS SPACE MANAGEMENT IN WAREHOUSE?

The areas that should be planned are both the general storage areas and the areas for goods
receipt, consignment picking and goods dispatch. It is also desirable that space should be
set aside for the following activities:

Equipment maintenance and parking;

charging of equipment batteries such as pallet trucks;

refueling of trucks;

19
 an area for garbage disposal e.g. empty packaging;

a quarantine area for keeping rejected goods, goods to be sent back or destroyed;

20
 5.3 WAREHOUSE OPERATION

MATERIAL INWARD

Inward materials involves Finished goods, Sales return inward, Sample return inward,
Defective materials returned back in the warranty period. Free alert is send to the general
warehouse about the goods to be received by them. The materials are first cleared at the
Custom Clearance Agent where all the invoice, bill of entry are been verified the goods are
then given a new seal no. in the document and send to the warehouse, the materials are
unloaded and are physically verified with the seal no at the warehouse if the material are
matched with the document the materials are accepted if not photos are been taken and
send to the client and materials are kept in rejected area for return. Inspection of materials
is done and scanning of the materials take place in order to update material in the system
simultaneously a checklist is generated in which all the details of materials are filled in the
presence of the transporter. The materials are then kept in their appropriate location.
Average numbers of inward materials are 6-7 containers. A report is maintained of the
incoming materials and is send to the client on daily basis.

MATERIAL OUTWARD

According to purchased order received from the customers the materials are retrieved from
their location and are scanned to update the materials to be dispatched in the system. The
materials are then kept ready in the dispatch area, invoicing of the material is done and
material is loaded in the vehicle. Average number of material outward is 4-5 containers. A
report is maintained of the outward material and is send to the client.

GRN

A goods received note is a receipt given to the supplier to confirm delivery or acceptance
of goods by the customer. After the supplier receives this note, a payment invoice is sent
to the customer. The Goods Received Note is completed in the warehouse where goods are
received. Once registered goods can then be put into stock or issued from the warehouse

21
Goods Received Note creation/fields

Main section
GRN No.:

This is the Goods Received Note number. The number is automatically generated when
you save leave blank.

GRN Date

This is the date that the Goods Received Note is entered in the system. Use the calendar
button starting with the month, year followed by date.

GRN Status

This is the status of the transaction in the system.

Draft can be used for incomplete transactions but cannot be progressed to other
transactions.

Active can be used when the transaction is complete and ready to be progressed to the
next stage.

22
DELIVERY NOTE

A document that accompanies a goods shipment and lists details about the goods
delivered. A delivery note explains what the contents of a package are. If some goods that
were ordered are not enclosed (due to lack of stock, unavailability, etc.) they will also be
listed on the delivery note.

TRANSFER ORDER

An instruction to move materials from a source storage bin to a destination storage bin in a
warehouse complex at a specified time a transfer order consists of items that contain the
quantity of the material to move and specifies the source and destination storage bins. A
transfer order can be created based on a customer delivery, a transfer requirement, or a
posting change

PICKING AND PACKING

Pick and pack is a part of a complete supply chain management process that is commonly
used in the retail distribution of goods. It entails processing small to large quantities of
product, often truck or train loads and disassembling them, picking the relevant product
for each destination and re-packaging with shipping label affixed and invoice included.
Usual service includes obtaining a fair rate of shipping from common as well as
expediting truck carriers.

Pick and Pack services are offered by many businesses that specialize in supply chain
management solutions.

Case picking is the gathering of full cartons or boxes of product. This is often done on a
pallet. In the consumer products industry, case picking large quantities of cartons is often
an entry level employee's task. There is, however, significant skill required to make a good
pallet load of product. Key requirements are that cartons not be damaged; they make good
use of the available cube (space) and are quick to assemble.
23
FIGURE NO. 3: PICKING PROSESS

24
 PURCHASE ORDER

If you receive a delivery for which no purchase order exists, you can still post the goods
receipt. In this case, the system generates an automatic purchase order at the vendor, if this
has been set for each movement type in Customizing. The goods receipt is valuated at the
price defined in the purchasing info record in the first instance. To do this, a purchasing
organization must be assigned to the receiving plant. You cannot post movements into GR
blocked stock with this function. In the automatic generation of purchase order process,
you can also verify an invoice immediately after the goods receipt is posted. This function
is useful if a vendor delivers urgently required material for which you could not enter a
purchase order for time reasons.

SERVICES OFFERED

WAREHOUSING

We offer 3PL (Third Party Logistics) services to our customers, such as warehousing and
transportation services. Our warehouses are strategically located, compliant with the latest
technology and round-the-clock security. Our Services can be scaled and customized to
customer's needs, based on market conditions, demands and delivery service requirements
for their products and materials. We can receive products from suppliers, warehouse the
products and then distribute them according to our customer's requirements. Whatever
industry sector you operate in, Citi Solutions provides dedicated and shared warehousing
and distribution operations to ensure that you can deliver your service promise to all your
customers

3PL services with complete space management from floor to vertical racking system

WMS - as technology is one of the pillar of our CITI a strong portfolio of warehouse
management systems and interface software to drive productivity and enable faster and
more reliable startups

25
 Best practice operational processes, controls and management information

VALUE ADDED SERVICES

Citi warehousing & Distribution is not just about holding stock. There are a wide range of
additional services that we offer, as part of an overall solution that can improve the
performance of your supply chain.

Pick and pack services

Shrink wrapping

Kitting ,Labeling & repacking

Stuffing and de-stuffing

Inspection and verification services

SECONDARY TRANSPORTATION

Moving products from manufacturing plants to warehouses, between national and regional
facilities and to distributors, can represent more than half of your total logistics costs.
Modes of distribution are mandatory for a smooth and successful supply chain. We offer
transportation services that can be scaled and customized according to customer needs
based on market conditions, demands and delivery service requirements. Transportation
management solutions give you the resources and visibility you need, at a cost you can
manage.

Local and Upcountry distribution services

undertaking product pick-up, warehousing and distribution responsibilities

Responsibilities ensure safe & timely delivery of your products

26
 QUALITY OF SERVICE AND EXECUTION

We provide Solutions design and analysis to help you improve your bottom line and stay
flexible in the face of changing business needs. A range of dedicated and multi-customer
transportation solutions to meet your service needs. We also maintain best practices in our
organization in order to provide timely delivery

OPERATIONAL EFFICIENCY

As Innovation is one of the 4 pillars of CITI... We have a strong operational team having
huge experience & knowledge in handling Complex business having products of all
different vertical. Starting with a thorough analysis of your specific business requirements,
our operational teams design, implement, operate and with help of innovations improves
dedicated warehousing and distribution operations that deliver value to your business...

RELIABILITY

Integrity is one of 4 the Pillar of CITI... Owing to our ethical and transparent business
policies, big past experience, face value, ambition to be a long term player, quality of
services and client centric services, we have been able to conquer the trust and satisfaction
of our clients.

COMPETITIVE PRICE

We precisely understand the customers requirement & design appropriate solutions...

mostly all work on general terms of market, we actually put extra mile effort in sourcing
(warehouse, manpower, assets etc) & source all with better than market (general) price &
pass that advantage to our customer & also manage to keep our overheads in control hence
can offer highly competitive pricing for all our customer & services keeping our profit
intact based on the current market standards / values

PROBLEMS FACED:

27
Too Much of the Right Product

An abundance of the right product appears positive in terms of customer service and order
fulfillment goals, as product is readily available to fill customer orders. Yet, as the sales
staff and buyers celebrate making customers happy by fulfilling every order 100%, the
warehouse operates well below established productivity and safety standards. A look into
this type of warehouse will reveal pallets of product stored in aisles, stacked in dock areas,
placed on rack end caps, or multiple SKUs of product mixed in single bin locations.
Blocked visibility creates safety hazards, lack of ease in locating inventory, decreased
labor productivity and multiple handlings of product. The upside is that these products
usually move quickly through the warehouse and space problems exist for only several
weeks.

Too Much of the Wrong Product

Having too much of the wrong product is often an indicator that sales projections and/or
production planning were incorrect, but it also frequently indicates that the warehouse is
not managing inventory levels or obsolete product properly.

A good example of this lack of inventory management occurred at a mid-sized consumer

goods supplier. Upon reaching a full warehouse condition at both their manufacturing and
distribution center (DC), the company brought in a consultant who, after examination of
their inventory, discovered that 600 of the 3,000 pallets at the manufacturing center had
not been used for production in the last 12 months. At the DC, over 400 of the 4,500
pallets on-hand had no sales in the previous three years. Another 500 pallets had zero sales
activity in the past 12 months. Too much of the wrong product was solved with
management approval to take a one-time hit to the bottom line. Obsolete inventory has
little to no value on the open market, but the earlier it is identified, the quicker a company
can cover any losses and better manage its assets. 26

28
POORLY UTILIZED WAREHOUSE SPACE

This condition is usually caused by steady growth, changing storage requirements (change
in product mix) and ever increasing service requirements. Poorly utilized space is a
common occurrence that happens in all warehouses occasionally and is non-exclusive of
the inventory type or storage conditions in the warehouse.

Traditionally, warehouses are built and equipped to handle projected volumes, a set
number of products and limited unit loads. Then they are expected to adjust to customer
demands as well as be more efficient over time. To accomplish these conflicting goals,
warehouses generally accept long-term penalties to accomplish short-term goals like
creating customized floor-ready merchandise for end-cap displays, hand-pricing a key
customers merchandise at the piece level, or creating mixed loads to simplify customer
processing when goods traditionally ship in full case or full pallet quantities.

All of these customization steps take valuable floor space and labor from primary
warehouse functions. Other common instances of poor space utilization include low
vertical space utilization, wide aisles (over nine feet), and multiple products in single bin
locations and/or partial unit loads being stored in full unit load locations. These types of
problems should be addressed with physical layout and workstation design changes.

29
 SOLUTION TO THE PROBLEM

WAREHOUSE REDESIGN

It can be said that the warehouse redesign process is more art than science and more
common sense than theory. The primary objectives of warehouse redesign are to:

Use space efficiently

Allow for the most efficient material handling

Provide the most economical storage in relation to costs of equipment, use of space,
damage to material, handling labor and operational safety

Provide maximum flexibility in order to meet changing storage and handling

requirements

Make the warehouse a model of good housekeeping

Eight steps are required to make this happen:

1. Measure the space you have to work with

2. Define the fixed obstacles (columns, walls, doors, clearances, etc.)

3. Understand the product stored and handled

O Define storage condition zones

O Throughput/replenishment requirements

O Unit handling loads

4. Establish the material flow paths

30
5. Determine auxiliary facility requirements (offices, dock staging, hold and inspection,
etc.)

6. Generate alternatives

7. Evaluate alternatives

8. Recommend and implement improvements

31
VERTICAL CUBE UTILIZATION

To increase the number of pick faces and storage density, the first step is to ensure that the
facilitys entire vertical cube is effectively utilized. Vertical cube includes all space above
loads, total building clearance and space above cross aisles, space above work and pick
areas, and space above docks.

Within the rack, the opening height should be approximately six inches larger than the
load height to facilitate easy and safe loading and unloading of product. A quick formula
to check this is to take a sample of unit loads stored in the warehouse and divide a typical
vertical bay of product height by the clear height in that area of the building. If the space is
utilized less than 50 percent, a great opportunity for improvement exists. If the space is
utilized between 50 to 75 percent a moderate opportunity for improvement exists. A well-
designed facility will have approximately 75 to 80 percent vertical utilization. In order to
recapture lost space, the location opening sizes should be changed to meet the existing unit
load dimensions. This means creating multiple opening heights and implementing a re-
warehousing program to move partial slow moving pallets into shorter locations.

If product is received and stored in less than one-half pallet loads, decked rack and case
flow rack locations should be considered. Typically, the pallet accounts for 10 percent of
the storage requirement of a unit load. By hand stacking cases on decked rack or into case
flow rack, the pallet is removed from storage. The density of the pick faces then increases
dramatically by narrowing the pick face dimension from a pallet width down to a single
case width. Both decked rack and case flow rack may be utilized with pallet rack to
optimize vertical cube utilization. It is often found that gains of 20 to 50 percent in vertical
utilization can be obtained by simply moving a few beams and adding a small amount of
decking or case flow rack.

32
As shown above, the warehouse operation is composed of four key work activities:

Goods receipt

Storage

Picking

Goods dispatch

To estimate the resource requirement for the whole warehouse, one should start by
estimating the requirements for each of the key work activities in turn and the level of
demand. Then, the resource requirements for all activities should be combined together,
taking into account the way that the activities are phased during the working day, in order
to make an estimate of the total resources required.

TECHNOLOGIES THAT CAN BE USED

33
BARCODE TECHNOLOGY

A label with a barcode is applied to loads. Depending on the standard, the barcode can
encode any information such as product profile, expiration date and others. It is used for
unique identification of the loads. A barcode is a series of varying width vertical lines
(called bars) and spaces. Barcode technology encompasses the symbol that encode data to
be optically read, the printing technologies that produce machine-readable symbols, the
scanners and decoders that capture visual images of the symbol and convert them to
computer-compatible digital data, and the verifiers that validate symbol quality. Coupled
with the improvements in data accuracy that accompanies the adoption of bar code
technology over keyboard data entry, bar code systems are critical elements in conducting
business in today's global economy. Tracking physical assets, inventory, and personnel
with automated systems can save money and improve operations.

RFID

RFID systems work very much the same way as barcode systems, except that a clear line
of-sight between the scanner and the tag is not necessary, because product information is
read by a wireless reader instead of scanning a label. The information that is transmitted
via radio signals is able to travel through most materials. RF tag, RFID scanner and a
decoding device (computer) are the attributes of RFID. RFID allow for non-contact
reading and are effective in manufacturing and other hostile environments where bar code
labels could not survive. The technology is able to track remote and moving objects and to
encode more information in comparison to usual bar code label. Wireless networking and
mobile computers are an integral part of a bar code or RFID data collection systems.

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 LITERATURE REVIEW

1 INTRODUCTION

This chapter reviews the existing literature mostly available on World Wide Web. Various
researches are appraised in line with their objectives, modus operandi and findings.

3.2 WAREHOUSE MEANING

Warehousing refers to the activities involving storage of goods on a large-scale in a

systematic and orderly manner and making them available conveniently when needed. In
other words, warehousing means holding or preserving goods in huge quantities from the
time of their purchase or production till their actual use or sale. Warehousing is one of the
important auxiliaries to trade. It creates time utility by bridging the time gap between
production and consumption of goods.

Warehouse can play a key role in the integrated logistics strategy and it builds and
maintains good relationships between supply chain partners. Warehousing affects
customer service stock-out rates, firms sales and marketing success. A warehouse
smoothens out market supply and demand fluctuations. When supply exceeds demand, a
demand warehouse stores product in anticipation of customers requirements when
Demand exceeds supply the warehouse can speed product movement to the customer by
performing additional services like marking prices, packaging products or final
assembling. Warehousing can be defined as a location with adequate facilities where
volume shipments are received from production centers, which are then broken down into
Particular order and shipped onwards to the customers. Warehousing is an integral part of
any logistics system. The warehouse is a link between producer and the customer. Out-
bound warehouse help consumers buy on demand without a nearby production plant
warehousing cost are about 10% of total integrated logistics costs for most companies.

Warehouse Management provides the insight into your inventory and the warehouse
management tools to help you increase customer satisfaction and reduce costs. Warehouse
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Management exchanges information with many other functional areas in the solution
including logistics, production and trade to help improve our overall business
performance.

In order to meet their requirement various types of warehouses came into existence, which
may be classified as follows.

I. Private Warehouses

II. Public Warehouses

II. Government Warehouses

IV. Bonded Warehouses

V. Co-operative Warehouses

I. Private Warehouses - The warehouses which are owned and managed by the
manufacturers or traders to store, exclusively, their own stock of goods are known as
private warehouses. Generally these warehouses are constructed by the farmers near their
fields, by wholesalers and retailers near their business centres and by manufacturers near
their factories. The design and the facilities provided therein are according to the nature of
products to be stored.

II. Public Warehouses - The warehouses which are run to store goods of the general
public are known as public warehouses. Anyone can store his goods in these warehouses
on payment of rent. An individual, a partnership firm or a company may own these
warehouses. To start such warehouses a license from the government is required. The
government also regulates the functions and operations of these warehouses. Mostly these
warehouses are used by manufacturers, wholesalers, exporters, importers, government
agencies, etc.

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III. Government Warehouses -These warehouses are owned, managed and controlled by
central or state governments or public corporations or local authorities. Both government
and private enterprises may use these warehouses to store their goods. Central
Warehousing Corporation of India, State Warehousing Corporation and Food Corporation
of India are examples of agencies maintaining government warehouses.

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IV. Bonded Warehouses - These warehouses are owned, managed and controlled by
government as well as private agencies. Private bonded warehouses have to obtain license
from the government. Bonded warehouses are used to store imported goods for which
import duty is yet to be paid. In case of imported goods the importers are not allowed to
take away the goods from the ports till such duty is paid. These warehouses are generally
owned by dock authorities and found near the ports.

V. Co-operative Warehouses - These warehouses are owned, managed and controlled by

co-operative societies. They provide warehousing facilities at the most economical rates to
the members of their society

Storage Space Utilization

If any organization finds it has storage space concerns, it can benefit from looking at two
different but related elements of space utilization, specifically

1. The storage capacity of the building itself, that is directly a function of the physical
aspects of the layout, the width of the aisles, the storage methods, the types of storage
aids, etc.; and

2. How well the storage capacity is being utilized, that is directly a result of how these
resources are managed.

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Storage Capacity

The foundation and relatively fixed storage capacity in a warehouse is directly a

consequence of the layout and equipment (rack, shelving, etc.). To optimize the storage
capacity of each warehouse requires an understanding of the unique mix of inventory that
will be stored in it, and the level of activity expected within it. To calculate the storage
capacity of a warehouse we develop the ratio of the cubic storage capacity of the storage
aids or storage space (where materials are stored on the floor), divided by the total cubic
volume of the portion of the building occupied by the storage, (or the inverse). The
following measures are the elements for developing the ratio. To develop the volume of
the building I measure the dimensions of the inside of the building; the length, width, (less
the offices, rest rooms, etc.), and maximum stack height. This is the total building space
we can work with. Based on the characteristics of the inventory and the material handling
(cranes, ASRS, etc.) and storage (sprinklers, placement of lighting, etc.) requirements we
can develop several layout options within this space

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CHAPTER NO.6
DATA ANALYSIS AND INTERPRITATION

Q: 5 Do you satisfied with warehouse with stock of different plants?

Different plants

Agree
Disagree

INTERPRETATION:

Regarding warehouse with stock of different plants 85% people are satisfied or agree
where 15% are not satisfied. There for the people are satisfied with the stock of different
plants.

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Q: 7 Do you agree using warehouse control system/ subsystems? Do you plan to connect
this system with the R/3?

Warehouse Control System

Agree
Disagree

INTERPRETATION:

Regarding warehouse control system 70% people are satisfied or agree where 30%are not
satisfied. There for the people are satisfied with the warehouse control system.

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Q: 7 are you agree to using bar code / RFID system and interface with sap?

Bar code / RFID system

Agree
Disagree

INTERPRETATION:

Regarding using bar code / RFID system 95% people are satisfied or agree where 05% are
not satisfied. There for the people are satisfied with the using bar code / RFID system

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 CHAPTER NO: 7
7.1 FINDINGS

From the research carried out the findings are as follows:

1) Proper Inventory management.

2) Proper rack system is utilizing for handling and storing product.
3) Software used in warehouse is SAP and MS-EXEL which leads to,

i) Increase labor productivity,

ii) Avoid paper work,
iii) Easy to find product at warehouse,
iv) Reduce lead time.

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7.2 LIMITATION OF STUDY
1. Increased master data maintenance.

2. Additional process step for receipt and picking.

3. Requires expert knowledge to configure for maximum benefit.

4. More complex to resolve problems caused by incorrect processing.

5. Citi solution provides better automation of processes, particularly with RF, but
requires more maintain and process discipline.

6. It is recommended that you used floor and space management only if the standard
logistics functionality is insufficient for your needs.

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45
 CHAPTER NO.8
CONCLUSION

Floor and space management is one important function in the every warehouse today. No
marketing, manufacturing or project execution can take place without warehouse logistic
and inventory support.

Due to competition, Globalization & information availability, warehouse has gained extra
importance. The availability of technology is another boon. Thus, the only area where one
can score over the others is warehousing.

Warehousing is one of the areas of the every business i.e. growing at a tremendous case as
the Internet and E-Commerce is drastically changing the range, delivery time and the
speed of information as well as ordering procedures and processes.
Floor and space management is a constant requirement of doing business successfully.
Procedures for pulling, receiving, and replenishing stock should be established, with
considerations made for your particular environment.

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 QUESTIONNAIRE

QUESTIONNAIRE FOR FLOOR AND SPACE MANAGEMENT

Q1) List down storage location relevant for floor and space Management

Ans:

Q2) Do you have storage locations, which are not relevant for Warehouse

Ans:

Q3) Will you use storage locations for more than one plant? Name these storage
locations and the relevant plants.

Ans:

Q4) Describe the structure of your warehouse!

Ans:

Q5) Do you have warehouses with stock of different plants?

Ans:

Q6) List down picking define in the system?

Ans:

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 Q7) Are you using bar-code / RFID system and interface with SAP?

Ans:

Q8) Are pallets managed in the system with a unique number?

Ans:

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 BIBLIOGRAPHY & WIBLIOGRAPHY

Books:

Donald J Bowersox, David J Closs, M Bixby Cooper. Supply Chain logistics

Management. New York: McGraw Hill, 2002

Articles:

Tobiah R. Master (2009), Warehouse Redesign of Facility Layout, Racking

System and Item Classification, 5-47

India Logistics & Warehousing Research (2014). A Definitive View on

Mumbai and Pune Warehousing Markets

Don Beson, Storage Space Utilizati

WEBSITE:
WWW.CITISOLUTIONWD.COM

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