Warehouse Management System

Group Number-7

LOGISTICS & SUPPLY CHAIN MANAGEMENT

PROJECT ON

WAREHOUSE MANAGEMENT SYSTEM

Submitted to:

Prof. Pramod Shetty

Submitted by: Group - 7

Ayan Bose 07

Iqbal M. 17

Mohit Kawatra 27

Vaibhav Palaye 37

Sushant Shah 47

Sujitha Vattikonda57

K. J. Somaiya Institute of Management Studies and Research

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Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
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Warehouse Management System:

A warehouse management system, or WMS, is a key part of the supply chain and primarily
aims to control the movement and storage of materials within a warehouse and process the
associated transactions, including shipping, receiving, put away and picking.

The objective of a warehouse management system is to provide a set of computerized

procedures to handle the receipt of stock and returns into a warehouse facility, model and
manage the logical representation of the physical storage facilities (e.g. racking etc), manage
the stock within the facility and enable a seamless link to order processing and logistics
management in order to pick, pack and ship product out of the facility.

History:

Warehousing roots go back to the creation of granaries to store food, which was historically
available for purchase during times of famine. As European explorers began to create
shipping-trade routes with other nations, warehouses grew in importance for the storage of
products and commodities from afar. Ports were the major location for warehouses. As
railroads began to expand travel and transportation, the creation of rail depots for the
storage of materials became necessary.

World War II impacted warehousing in several ways, including the need to increase the size
of warehouses and the need for more mechanized methods of storing and retrieving the
products and materials. As mass production grew throughout manufacturing, the needs of
efficient and effective warehousing capabilities grew with it.

The warehouse industry found itself recovering from a recession at the start of the twenty-
first century, partially brought on by the hype of the dot-com bubble and the excess
production created after it burst. It also coped with new methods of distribution, such as
just-in-time (JIT) manufacturing—where warehousing is unnecessary because products are
shipped directly to customers.

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
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Global Current Scenario:

Warehousing companies are now striving to become more than simply storage facilities.
They are transforming themselves into "third-party logistics providers" or "3PLs" that
provide a wide array of services and functions. In addition to packing and staging pallets,
contemporary warehousing facilities offer light manufacturing, call centers, labeling, and
other non-storage options.

A significant trend is the continuing growth of 3PL providers as companies try to cut costs
and management issues by outsourcing their warehouse and distribution functions. An
outcome of increased 3PL activity is a wave of mergers that are consolidating the industry.
Customer demands for one-stop shopping and new technologies are a driving force behind
this consolidation.

According to a Warehousing Management survey, competition in warehousing has become

extremely tight because businesses seek warehouse firms with extremely thin margins.
Warehouse management system (WMS) requirement will help managements to take their
warehouse and company to the next level. An optimized WMS will play a key role in
allowing a company to better manage its warehouse operations.

In the past warehouse management was very paper-intensive in its coordination of a

multitude of activities. This has changed with the introduction of WMS which assist
managers in tracking products throughout the entire storage and distribution process. These
systems span from simple computer automation systems to high-end, feature-rich
management programs that improve order picking, facilitate better dock logistics, and
monitor inventory management. Warehouse management systems record all events and
activities in the receipt, handling and storage of products and orders in the warehouse or
distribution center, including the location of inventory

Companies are succeeding by remaining flexible and investing in technology. The main
issues or trends in warehousing include radio frequency identification (RFID), transportation
management systems, pick-to-light technology, and voice-activated receiving and packaging.

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
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A paperless warehouse management system (WMS) could cut costs by increasing

productivity and accuracy, which also improves customer service. But a good WMS is more
complex and expensive than most people have been led to believe. To avoid installation
problems, follow up-front-planning steps to select a cost-effective WMS.

The operational benefits that can be expected out of WMS installation are...

 Misplaced or Lost stock

 Search Times
 Paperwork
 Human Error
 Labor and Overtime
 Need for Physical
 Inventory Taking
 Stock outs
 Shipping Errors
 On Hand Inventory
 Cycle Times
 Space Utilization
 Inventory accuracy
 Throughput
 Order/shipment Tracking
 Stock Rotation/Inventory
 Tums
 Customer Service
 Product Planning
 Fill Rate Performance
 Labor Productivity

Prospects:

The warehousing industry is a key component of the supply chain and will likely remain so as
long as there are manufacturers and consumers. Past supply chain solutions were limiting
due to their expense, closed architecture, lack of mobility, and inability to share with
partners. WMS Software as a Service delivery model, rapid implementation and easy
customization drive quick Return on Investment with minimal up-front investment. Now,
any size company can reduce cost while streamlining their supply chain and improving
service levels. A WMS has the potential to reduce errors, increase space utilization and
decrease labor costs by offering a comprehensive suite of capabilities and work with a range
of best-in-class software partners. Its state-of-the-art systems monitor and control all critical

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warehouse processes. They also provide support for transport and distribution operations
and communicate with customs and other authorities. The implementation of the WMS led
to the standardization of operations throughout distribution facilities.

 Access to, and influence over, leading-edge supply chain technology

 Access to best-in-class applications that are platform and database independent –
facilitating standardized business processes
 View real-time inventory status at each individual warehouse location or all locations
 Search by Part number or Lot number and Track Orders out of each warehouse by
Order Number, Ship to or Date. Print or download query results to a spreadsheet.
 Review Audit History to see chronological record of incoming and outgoing products.
 Rapid start-up and reduced risk in global deployment - including project delivery,
service management, supplier management, - integration and hosting
 Scalability and repeatability worldwide
 Unrivalled expertise in interfacing with your stock control, resource planning and
business information systems
 Proven, pre-integration with other supply chain partner systems - including visibility
and control

Regulations in Warehousing Management Services:

The Warehousing (Development and Regulation) Bill, 2005 was enacted in Parliament to
make provisions for development and regulations of warehouses in India. This act covers
warehouses in the whole of India except Jammu and Kashmir. Its scope includes negotiation
of warehouse receipts, establishment of a warehousing development and regulatory
authority and for matters connected to it. According to this Bill,

 A registration certificate in respect of the concerned warehouse is necessary for any

person starting this business. The authority will issue a negotiable certificate.
 A warehouseman is liable for loss or damage to goods for which he couldn’t take
necessary precaution. If the damage is not due to the negligence of the
warehouseman then he is payable to tune of the value of goods at the time bringing
it to the warehouse. If the damage is caused due to the negligence of the

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
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warehouseman then he is payable to the tune of original value of goods plus the loss
of profits caused to the holder of the receipt.
 Duties of the warehouseman are to keep the records and accounts of warehouse
business. Also the warehouseman is responsible for keeping the goods in safe
condition.
 Warehouseman has the special powers of dealing with perishable and hazardous
goods. He can take necessary action to remove the potentially hazardous goods.
 A warehouse receipt shall be a document of title to goods in writing if it contains
receipt number, warehouse registration number, name and address of warehouse,
date of issue of receipt, rates of storage and handling charges, market value of
goods, description of goods, name of the insurance company securing against fire,
flood, theft, burglary, riots, strikes or terrorism, whether the warehouse receipt is
negotiable or non-negotiable etc.
 Any warehouseman who knowingly issues a receipt without taking the actual
physical entry of goods in his warehouse is entitled for an imprisonment for a term
which may extend to up to three years. Also if warehouseman issues a duplicate
receipt then he is entitled to the same punishment.
 Whenever any offence is committed by a company under this Act, every person who
was present at the time when the offence was committed shall be liable for the
punishment accordingly.

Building Warehousing Competitiveness:

Central warehousing Corporation (CWC) tries to implement the best practices in the field of
logistics and warehousing in India. Warehousing accounts for 20% of domestic logistics
industry. Thus even a 1% reduction in warehousing cost could have a significant positive
impact on the national economy.

In designing a warehouse, due attention should be given on how to pick best orders, how to
plan the pickup time, how to use sales data to plan the product line, etc. Lay outing is
therefore an important aspect of a warehouse design. Automation and modern equipment
will make warehouses more efficient. E.g. Sun City and Sri City.

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
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Warehouse services providing companies:

We are mentioning a few domestic and international players who are providing warehouse
management services.

Domestic Players:

1. AB Sea Container Private Ltd: They are providing goods warehousing services, industrial
goods warehousing, commercial goods warehousing and automotive warehousing services.
They are located in New Delhi.

2. Falcon Freightlink Pvt. Ltd: They provide 3PL services to the customers. They also offer
cargo warehousing services, customized logistical solutions, expedite cargo transportation
services. They are located in New Delhi

3. Threestar Solutions And Services Private Ltd: They provide international warehouse
services, commercial warehousing, warehouse management services. They are located in
Mumbai.

4. Mars Shipping Agency: They provide general warehouse management services, inventory
management system, goods storage service, safe goods storage services, dock stuffing
services. They are located in Mumbai.

5. Pace Carrier Private Ltd: They provide warehousing services, warehouse consultation
services, goods storage services, bulk storage services, industrial goods storage services and
electronic goods storage services. They are located in Ghaziabad.

6. Trinitys Clearing and Shipping Agencies: Apart from the regular warehousing services,
their specialties include expedite cargo transportation services, packing services, moving
facilities to exporters and importers in India. They are located in Chennai.

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
 Warehouse Management System
Group Number-7

International Players:

1. Admiral Logistics (INDIA) Pvt. Ltd: They provide warehouse management services, freight
forwarding services, air freight services, freight shipping services, Cargo services, custom
clearance services. They are an Indonesian company and operate in Hyderabad in India.

2. Anjie International transportation Co Ltd: They provide warehouse management

services, Air freight services, and customs clearance services. They are a Chinese company.

3. Mamufa Global Ltd: They provide warehousing management services, shifting services,
air and sea freight forwarding services, international freight services. They are a Nigerian
company.

4. PWC Logistics: They provide warehousing and logistics services. They are a Kuwaitian
company.

5. Network Logistics: They provide warehousing and transportation services. They are an
American company.

Companies using Warehouse Management Services:

1. Procter & Gamble:
P&G is one of the top players in manufacturing, distribution and marketing of nearly 300
brands related to baby, feminine and home care products. Procter & Gamble is concerned
more about storing the manufactured products undamaged. It realised that accurate case
picking and pallet making will keep the shipments free from damage. So P&G implemented
AutoPallet3 system to enhance its case pick operation. It takes order data and converts it
into instructions to pick a high-cube damage-free pallet. Since then, P&G was able to cut
down case picking time in its warehouses dramatically and has created opportunity to ship
damage-free truck loads.
Also in China, P&G invested and improved its warehouse management system by using
mobile computing technology. It enabled the sales orders to enter in to an Integrated
Distribution System and transfer the information to warehouse workers. So implementation
of this technology enhanced productivity for a more efficient warehouse management
system which led to further cost savings in supply chain.

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
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2. Pfizer Pharmaceuticals:
Pfizer is a global pharmaceutical company which is consistently ranked in top 3 in the world.
It is based in New York city. Pfizer started its warehousing services in Chicago in 1882. It
built a new state-of-the-art automated warehouse and distribution centre at Kent in UK in
2001. This new warehouse provided storage for raw materials for both bulk and the dosage
form drugs from manufacturing plants along with providing storage and order fulfilment
services for bulk exports and for finished pack sales of pharmaceutical and animal health
products. All these warehouse functions are accomplished by using a number of automated
systems and managed by a computerized warehouse management system. This facilitated
services like direct to hospital and direct to clinic deliveries of medicines.
3. Wal-Mart:
Wal-Mart, famous multinational retailer achieved and is maintaining its differentiation, cost
leadership position mainly due to its innovative warehousing system. It has a flexible
regional warehousing system. In a retail business like Wal-Mart warehouses are necessary
to restock the stores frequently. Also, the warehouses should be as close to the stores as
possible. Wal-Mart’s warehousing system solved the problem of contrast of few warehouses
coupled with short distances and reduced overheads which significantly reduced production
costs. This made the goods available for customers at lower prices.
4. Maruti Suzuki:
Maruti Suzuki, with its headquarters in Delhi is the first Indian company to produce and sell
million cars. Its entire logistics and supply chain system especially it’s warehouse
management system played a vital role in its success. It has a single main warehouse at
Gurgaon where the components of its finished cars are stored. Its warehouses are fully
automated with latest equipment and technology required for material identification,
periodic stock taking and inventory carrying cost analysis. This system was devised to ensure
quality and was highly successful because dealers order spare parts along with the cars.
Now, Maruti is decentralizing its warehouse management system with warehouses in every
region of the country due to increased competition.

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
 Warehouse Management System
Group Number-7

Future Prospects in Warehouse Services:

 Outsourcing: Many companies are already opting to outsource their warehousing
functions to Third party logistics providers (3PL). This move not only cut down the
costs of warehousing for the company but also provides the ability to leverage on
the expertise of 3rd party service providers.
 Labour Management Systems: These can be used to track the performance of the
employees working in a warehouse. Accordingly incentives can be provided along
with enhancing the efficiency of working.
 Decision Support Tools: These tools provide the ability to design key performance
indicators that can be tailored to achieve specific goals. These are usually web-based
and deliver their metrics through graphical dashboards.
 Reverse Logistics: Reverse logistics help the companies to increase the efficiency of
operations of returns from first customer interaction to final product disposition. It
also increases the service levels of a company.
 Slotting: Slotting of packages is done to allow operations to optimize product
location with respective warehouses for increased picking efficiency.
 RFID(Radio Frequency Identification): Famous retailers like Wal—Mart is already
using this technology due to its potential to help supply chains lower operating costs,
improve inventory accuracy, increase throughput, reduce inventory levels and
increase visibility in warehouses. But the usage is limited because of high cost of
implementation. It is expected to be one of the dominating technologies in the
coming years.

Future needs of Warehousing Industry:

Current shift to goods and services tax (GST) will have a positive impact on the warehousing
industry. It will help the industry to work more efficiently. Also free trade warehouse zones
(FTWZs) should come up.

In the longer run, the growth will come from space optimization, use of new technologies,
efficient tax policies, IT adoption, value added services, use of appropriate storage types,
adoption of right architecture, installation of surveillance and security systems and skills

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management
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training. Warehouses should not just stock goods. It should also equip itself to receive
goods, break shipments, and prepare for shipments.

Warehousing industry is hampered by lack of capital and sufficient funding options are not
available. Hence government should consider introducing tax holidays that might attract
private equity players to the industry. The industry players will also do well to get listed on
the secondary markets. Also the government should consider granting industry status to
warehousing, which will improve the funding prospects.

The bigger challenge for the industry would be to bridge the skill gap. This is because the
major part of the industry is unorganized and there is deficit of industrial skills development
centers in the country.

References:

1. http://www.ciilogistics.com/building_warehousing_adopt_the_best.pdf

2. The warehousing (Development and Regulation) Bill, 2005

3. http://dir.indiamart.com/indianservices/s_wareh.html

4. http://www.exportersindia.com/foreign-services/warehousing-storage.htm

5. http://www.warehouseoptimization.com

6. http://logisticsweek.com/feature/2011/02/eye-for-innovation

7. Excellence in Warehouse Management- Stuart Emmet

Roll No: 07, 17, 27, 37, 47, 57 Logistics & Supply Chain Management