Memo

From: Francois Damba

Date: 27 November 2023

RE: UNIT 2 – TASK 6 - INFORMATION REQUIREMENTS & MONITORING

PERFORMANCE

From the handover report and your observations of the warehouse at Chagong, you have
recognised that information on the performance of the warehouse and the information you will need
to manage the warehouse is currently not produced.

1. Identify what information you will need to manage the warehouse and what measures
you would put in place to monitor its performance.

For me to manage the warehouse, I will define a number of management aspects and
the associated information that will be of good guidance for me to carry out such
warehouse management. There are specific information that will be needed for me to
manage each aspect of the warehousing activities.

Before proceeding further in writing down the different information that I will need in
managing the different working areas of the warehousing process , there will be a
number of information that I have to know initially . This information is as follows:

 The Actual Capacity of the warehouse.

 The type of materials that are in the stock and that will be stocked in future .
 The environmental features and storage properties for each type of materials .
 The actual and current configuration of the warehouse to hold the materials .
 The current level of each material in the stock .
 Turnover of each type of materials and the hierarchical order of such turnover
to know which material has the highest level and that has the lowest level of
turnover.

Then afterwards, I will define the different working areas and the activities in each
area to have a complete knowledge about the workloads and the working rates that

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 will guide me in determining and allocating the required resources in such a way that
will achieve cost efficiency . Such definition job will be carried out as follows:

 Goods Receipt Area .

The activities that should be carried out in this working area and the information that
will be needed are as follows :

 Checking delivery details

 Unloading of vehicles
 Moving stock to receipt area
 Quality control of receipts
 Repackaging/palletization requirements
 Clearing receipts.

The workload is defined and planned during this working area through knowing the
volume of the received goods on daily basis besides the information about any goods
that is required to move immediately to the next stage of the supply chain or to the
beneficiaries .Moreover , the information about the handling groups and the
immediate shipment requirements will be needed to help me allocate the correct
resources .

The work rate in this working area is determined by the units unloaded and received
per hour.
In this working area , there is some kind of confusion that may happen due to
unplanned and unannounced deliveries that require a flexible resources deployment.

 Putting Away Area

The information that must be known in this working area are as follows :
 Identifying required stock location.
 Moving stocks to location.
 Notifying inventory/stock control of the storage location.

The workload is defined and planned during this working area through the previous
identification of the stock before its arrival so that the pre-allocated space is made
available to hold such stock .This can be done by the goods handling groups .

Working rate is determined in this working area by units moved to bulk storage per
hour.

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  Assembling Consignments Area

The activities carried out and information needed in this working area are as follows:
 Receive pick lists.
 Pick items.
 Pack consignments.

The workload during this working area can be defined through the following activities :
 Identifying the picking quantities
 Identifying the bulk picking quantities

 Identifying the packing quantities

 Creating picking and packing schedules

The working rate is determined by units picked per hour.

 Dispatching Working Area

The activities carried out and the information needed in this area are as follows:

 Consolidating consignments

 Locating consignments for loading

The workload in this working area is defined and planned through Identifying loading and
dispatching requirements .
The working rate is determined by units loaded and dispatched per hour.

Ultimately, the resource requirements in each working areas will be calculated by

dividing the amount of work to be done in the required time by the work rate for the
relevant work cycle.

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 PERFORMANCE MEASURMENTS
Actually , any work must be evaluated in line with pre-prepared criteria which play a
key role in controlling and monitoring the work in the course of time . The evaluation
measures the final performance of the managerial actions and decision during the
different stages of the ongoing work .In other words , the performance measurements
are considered to be key work factor by which the areas of work improvements can
be found out as such in our warehouse management job will have a direct result on
the operational cost and the success of our humanitarian assistance and getting the
end beneficiaries satisfactorily assisted .This means that the incorrect and accurate
performance measurement will lead to impossible improvement and achievement of
the optimal efficiency . In the current Chagong warehouse management , two types of
performance measurement can be defined as follows :

 Service-Level Measurements
These measurements are focusing on achieving the desired efficiency that is mainly
achieved through storing the right quantities, in the right times , in the right locations
and delivered on the right times with the right quantities .

 Utilization Of Warehouse Resources Measurements

These measurements are focusing on achieving the following :

 The highest level of productivity through establishing standards of productivity .

 The highest utilization rate of the warehouse spaces .

 The highest level of goods utilization without any inventory loss .

Since Chagong warehouse is known by its small size and storing capacity , then the
performance measurement that will be considered currently is the Service- Level
Measurement as this is required in all cases regardless the size and storing capacity of the
warehouse with focusing on achieving productivity through the optimal processes of the
goods handling during the different working phases.

Ultimately , there are a number of KPIs that must be defined in the different working areas
of the Chagong warehouse operations which are necessarily obtained for achieving the
optimal efficiency in the service -level activities . These KPIs can be shown as follows:

Receiving Efficiency

The receipt goods activity is an important part of the warehouse operation that needs
tracking and measuring with the associated performance indicator to get the cost

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 efficiency met . Closing attention to the time must be done in this working area during
every individual activity that takes place as part of goods receipt process . Therefore , the
KPI in this working area is the time spent for carrying every individual activity that should
be efficient.

Picking Accuracy

Carrying out the picking order must be done accurately since the incorrect picking will
result in returning and re-correcting processes .This kind of inaccurate work means
inefficient utilization of the resources will lead to increasing the operational
cost .Therefore , for achieving the optimal efficiency , an accurate picking up is of great
contribution to a such .

Carrying Cost of Inventory

The longer the inventory stays in the bulk storage, the more they cost the warehouse
operation . This KPI shows how much holding the goods in the warehouse will cost our
organization during a specific period of time.

Inventory Turnover

The frequency of specific articles movement during the a period of time is another
indicator of performance . The more movement frequency , the more efficient performance
. Having accurate track of such frequency will help in taking an effective and efficient
purchasing decisions.

Order Lead Time

The longer time it takes to get the order delivered , the more cost our organization
incurs. Consequently , one measure of efficient performance is to get the ordered goods
received and delivered to the end beneficiaries in the suitable time to be of value for us
and for the beneficiaries as well.

Regards

Francois

To answer this task, you will find the following learning material section helpful:

2.6. Managing Warehouse Operations

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