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WAREHOUSE CONCEPT WRONG ????

Warehouse why its reqd ? Bulk Breaking Uncertain high in sales forecast Stock reqd in case of emergency But Why Only reqd is proper planning. Lets take a example Small amount of materials reqd Answer :- PTL service is there Need to distribute to large no of retailers Answer :- B to B service provider is there Seasonal Product Answer :- Make good Super stockiest who can lift the materials Uncertain Sales Answer :- Look after the competitor , or wrong planning, if monopoly customer need to wait. Bulk Breaking   Answer :- Transporter warehouse ids there. Need to store for few days Answer :- Give detention, materials at vehicle only I am not against warehousing concept, nurture all alternative before indulging one Warehouse can lead to FIFO mismatch Extra rental cost Extra manpower cost Theft / pilferage Handling inefficiency leading to product damage Extra insurance coverage Electricity, local issue, ...

FREIGHT COST REDUCTION ( Own or Hired )

The challenges in every day life of logistics dept is to reduction of freight cost. So the homework need to be done on How ? Lets took   example If it’s a daily route somewhat near to warehouse its better to use own or dedicated vehicle Good Service 24*7 availability Proper coordination If there is some return goods can be managed on same freight Points known so less chance in delay Only thing need to consider if paying on per km , need to calculate on variables ( Fuel Price Escalation , Maintenance etc ) But on the same scenario If it’s a far of place & frequency is less Up Down costing will be more Long distance time coordination will be a issue Frequency is less so liability will also be less. On any scenario need to calculate, but always if the service is own its better but on serviceability point not on cost always . Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies...

VENDOR DEVELOPMENT

What’s is mainly vendor development? Is it’s a science or arts The answer will be arts ?   something new always need to inculcate among the new vendor Vendor selection mainly depends not based on his past performance but his skill. Vendor must not be big enough loyalty reduced. Vendor must have his own skill, but did not depend on others Vendor must be nearby for any emergency its better. Vendor its better if local as the service & time get reduced. Vendor Development To develop a vendor Keep the vendor your part of the team Love the vendor not try to negotiate Share the pain & agony Keep him as a part of the concern. If reqd help the vendor ( Financially / Technically ) Don’t give stress on contract , be wise . Vendor development is a long term process, give time, keep patience in the long run benefits will come. Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies ...

DRIVER HEALTHY ENVIRONMENT

In any sought of transportation healthy environment is important, mainly in case of Road transportation, the whole ball game mainly depend on the driver only. The life of the driver is very tough, the person has to move long distance ( Day /Night ), every one in hurry . The person has to receive ph call, no proper sleeping/ bathing/ eating. The job specification might be that, but at least on last mile & 1 st file we can do something. Give a proper place for driver to rest at the time of loading & unloading. Some food & water packets for the journey . At least offer some water & sitting place if other option not available. Be polite , listen some feeling of the concern. Don’t make him wait , he also might be in hurry. Make a health checkup for the concern because your entire materials on his hand. Thinks to remember 1.        The concern his doing a job which is beneficial...

TRANSPORTATION ON WAY BRANDING

It’s a new concept , where we can get on way branding of the materials , a clear coordination with warehouse and Branding Dept. For example Make the Finished goods box some attractive color :- Only a outer cartoon is not for safety, a colorful box will attract roadside people attraction on the product. A orange box travelling long distance , every signal, biker, passers by car, bus curve there attention on the product, a silent branding. After loading , stick a sticker on the backside of the container mentioning “ Carrying XYZ brand ), where ever truck stand the backside people can visualize the same. Give a cap & T shirt to the driver, driver moves various place a branding will happen. A good message written with a brand logo also creating a impact. A goods move from Factory – Warehouse – Super stockiest or Wholesaler – Distributor – Retailer. Lets think how much visibility your product will took place .   The ...

GREEN SUPPLY CHAIN

The topic now a days is very hot due to global warming, carbon foot print etc. It doesn’t mean only writing or spreading message like “ Save Paper Save Trees “ will get effect. 1.        Every goods traveled, a hard copy invoice, Lr, E Waybill will be there. 2.        Goods vehicle traveled on non-renewal resources so pollution will be there. So what to do Give stress on pollution checking paper of vehicle at the time of loading, if the same is not ok refuse to give load. Avoid packing materials in plastics or use of biodegradable plastics if necessary Give stress on E receiving for transportation bill, at least some paper can get saved. Ask the vehicle at the time of loading to emphasis on Fast Tag not on toll slip, a vehicle move long distance, every place a toll slip save paper. Change mode of transportation via train Short distance send materials via cycle va...

VEHICLE TRACKING

On every day logistics scenario vehicle tracking is a tough job Contemporary way Call the diver frequently:-   Can prone to accident Ask the transporter for daily mis :-   Excel work ,need to accumulate and circulate Keep some GPS devise inside vehicle :- Costly , chance of devise mishandling But the scenario is old. As my blog is not sponsored , I am not stating any name, but a technology is there in the market. At the time of invoice only from your ERP a message will go to the customer, only need to put the driver no, vehicle no at the time of invoice. Driver need to give a miss call to a certain no and the tracking process start via driver mobile sim location. No need of internet or smartphone , it’s a sim based tracking, tracking done from nearest tower. It might not be exact , but a brief idea can be received, and always from the portal reports are available. In my carrier I have seen organization keep people to track...

WAREHOUSE SAFETY

Warehouse is a place where the human and machine intervention is more. Hand Pallet truck, Fork Lift, S tacker etc The safety of the manpower is a great concern. Case Study 1 1 truck getting loaded, driver sitting at the steering thought that the backside container door is closed, he just started the vehicle and inside 1 loader remain. The container doors are open, the door thrash near by vehicle and the doors slashed back. It has been found thumb finger of the worker got smashed by the door, he has been taken to hospital. On the full scenario SOP of the warehouse need to get altered SOP At the time of loading / unloading keys must be with security personnel Stopper must be at vehicles Tyre Double checking reqd with bay security personnel and loading supervisor Case Study 2 Lift in the warehouse got stuck between 2 nd & 3 rd floor, 1 manpower travelling via goods lift got stuck, faulty lift suddenly fall, the worker has been t...

VEHICLE PLACEMENT

The placing vehicle from Third party on time is a every day challenges for logistic dept. The failure rate is high Advance notice reqd Fail to place a vehicle lead to loss of sale. Lead time increase Searching alternative also again time taking How can it get reduced Take a note on which route the failure rate is high ? If all route :- Selection of the vendor is wrong If on some particular route which means the selected vendor is wrong or after changing vendor also the situation remains same then Search for other mode like from road to rail Check the prevailing mkt rate if you are paying less service will get effected. Visit the route and found on road hurdle, like road jam is common or not Check food is available on the route or support driver with food packet The route might be accident prone, train the driver , don’t make him hurry decrease dispatch times and pay incentives. Check the route, the situation may ...

PRODUCTION PLANNING

The production planning, demand forecasting is always wrong, use what ever technic like Weighted Avg, Delphi etc. By doing math's with probability, statistical tools will not become perfect. There are numerous software in the mkt but supply chain person are running behind Right Product , Right Place At Right time. Is it possible ? Answer Yes   How ? The following step need to inculcate 1. Take out past data 2. Do weighted avg calculation 3. Then Follow Delphi and expert opinion 4. Proper Sales/Supply Chain /Production coordination if possible a meeting reqd. No method or way is right, it depend on the mkt so to make thing right internal coordination reqd. From vertical top down approach communication to horizontal communication reqd. Need to change the thought process, Don't run after market or sales , be confident on your system, time will prove its wright or wrong , some gap will always be there , even Six Sigma doesn't guarantee 100%. Confidence...