Name: - Nikhil Gupta

College: - Kohinoor Business School

City: - Mumbai

1. State the 5 key parameters of warehousing design.

Ans: -

a. Design keeping in mind present & future Material Handling Equipment: -

While designing a warehouse, we put much emphasis on the storage and
processing space. Space allocated for processing and storage activities should
be more compared to space left for other minor activities. In your design,
consider the current trends. Nowadays, the technology provides equipment,
which can stand alone, and does not require wall support. That means you do
not have to construct a durable wall, just put up a flexible wall that you can
change it if need be. You will also discover it is cheaper to build such a wall
and easy to go with the current changes.
b. Design keeping in mind retrieval: - Before setting up on a particular design
layout, consider the amount of money at hand. You must make sufficient
budget that will facilitate the construction from the foundation up to roofing.
Do not to engage in a project that may fail on the way. Some of the design
layouts are more expensive than others. Consider a layout, which is
economically friendly. In most cases, a costly solution will automatically result
in profitable production. Other factors including management and work
coordination are involved in achieving the optimum productivity.
c. Design wrt peak level material flows: - Your storehouse must be designed to
allow for free movement of products. We have activities that precede another
in the warehouse. All the closely related activities, or events that precede one
another, must be placed together conveniently. This process is to avoid time
wastage. You must consider having a system with minimum clashes, which has
a very smooth flow of goods, traffics, and people. A design that can achieve and
maintain good flow also serves to provide convenience in accessing products.
d. Design keeping in mind Safety Health & Environment guidelines: - An
existing building can determine a design layout. In some circumstances, an
owner might decide to improvise an existing building, to change it into a
warehouse. In such an event, owners must ensure that the building meets
almost all the necessary requirements. It should be spacious and safe. All in all,
existing building significantly affects the design layout; and it is evident that it
 will not completely match an ideal warehouse design. The chances are that it
will be attached to very many controversies. Also, the design layout is affected
by close buildings. Other neighbouring buildings might have been constructed
with protruding structures that eat into the space belonging to the expected
warehouse structure. In such conditions, the storage design layout must adopt
some carvings to fit into the surroundings.
e. Design for facilities & allied needs: - We are not just focusing on whether or
not we can access the product. We want to get products in the required
amount. Constructing your warehouse in a design that can allow easy access of
every pallet is very essential. The layout should provide not only access of the
pallet in arrow but also individual pallets. The whole space in the warehouse
must be put into proper use to give quick access to items. For pharmaceutical
product, the arrangement of the goods on the shelf should be in a friendly
manner to facilitate fast and easy identification, along with removal from the
shelf.

2. What are the 4 buckets of performance metrics?

Ans

a. Best in Class Customer Service: - Customer satisfaction is one of the primary

measures of business growth. Small and medium-sized businesses constantly
try to improve their customer service, as satisfied customers are typically the
long term stream of generating revenue. While companies are innovating new
ways to boost customer satisfaction, the basics are often overlooked. If a
customer is unable to purchase the stock he needs or finds the order process
difficult, there are high chances he might shift to another supplier. This is
when effective warehouse management comes into play. Timely and
accurate order fulfilment has a powerful impact on customer satisfaction. Be it
delay in delivery, or an inappropriate dealing with goods, numerous things can
hamper the reputation of your business. You have to ensure your customers
are not let down. Warehouse management is one such thing that if done the
right way, can take your business to new heights altogether. We are here to
help you with the top five ways to improve customer service through effective
warehouse management.
b. Commercial Compliance – Stock: - Companies with a focus on operational
excellence view all aspects of the supply chain holistically. The focus is driving
costs out of each leg of producing and selling goods. Apple and technology
leaders are typically product-oriented. These companies are generally focused
on commodity goods and delivering the best value at minimal cost. On a daily
 basis, Product Excellence companies are primarily concerned with the supply
chain’s flow, its reliability, and its cost.

 Total cost of goods sold

 Supply chain cost per unit sold
 Labour utilization
 Warehousing and transportation costs
 Enterprise software performance

c. Commercial Compliance – Invoicing & Receipts: - Warehouse document

management speeds the retrieval and access of paper documents, so that staff
can answer questions faster and warehouse inventory can move quicker.
In accounting, immediate access to files supports faster billing. Maintaining
valid certificates, and complying with regulatory controls, requires a keen
monitoring of deadlines, expiration dates, and other warehouse document
milestones. Records management tools and reminders help automate the
process for renewals and re-certifications, so people stay informed before it is
too late. Turn paper-based invoice processing into an organized and
structured paperless system. Invoices are quickly converted into the digital
system, routed for approval, and readied for processing. Fast turnaround
improves cash flow.
d. Safety & Morale: - Top management should set in place procedures to define,
document, and endorse a formal EHS policy for an organization. The policy
should clearly outline the roles and expectations for the organization, faculty,
EHS personnel, and individual employees or students. It should be developed
in communication with laboratory personnel to ensure that all major concerns
are adequately addressed.
The EHS policy should state intent to

 prevent or mitigate both human and economic losses arising from

accidents, adverse occupational exposures, and environmental events;
 build EHS considerations into all phases of the operations, including
laboratory discovery and development environments;
 achieve and maintain compliance with laws and regulations; and
 Continually improve EHS performance.
The EHS policy and policy statement should be reviewed, revalidated, and
where necessary, revised by top management as often as necessary. It should
be communicated and made readily accessible to all employees and made
available to relevant interested parties, as appropriate.
3. Why are 3 warehousing agreements made by companies?

Ans : - Contracts are a necessary part of defining expectations and securing excellent
results in the logistics industry. However, negotiating them isn't always a
comfortable process. You might be tempted to "sign on a handshake" or leave
important considerations undefined to preserve a business partnership, but this
could leave you in a difficult position if a problem arises. Make no mistake: you
absolutely need a well-written logistics services contract, and it should have these
four important functions to provide you with the most trustworthy business
protection.

a. Damages:- When a box arrives to your customer in a damaged condition, or a

component is shattered in transit, your customer is most likely going to look
to you as the manufacturer or distributor to “make it right” regardless of who
delivers it. This is why it's so important to have respective damages and
liability responsibilities clearly defined in your 3PL agreement. Without these
expectations clearly spelled out, much will be left to chance. A good 3PL
partner will, of course, will help make sure explicit contractual language exists
to ensure there are no miscommunications in the process.

b. Contract Term and Termination Obligations: - Just as you may enter into
volume contracts and obligations with your supply chain partners to secure
discounts or consistent delivery, a 3PL needs commitment to thrive. They
need to sign dedicated contracts with staff and facilities to build customized
infrastructure, secure equipment, capital expenditures, and real estate, and
they will need a specific obligation from your company to do so–a defined
term of service in the contract and how outstanding obligations are to be
addressed at the end of the business relationship or contract term. A defined
term allows your financial team to anticipate costs accurately; allowing your
company to grow sustainably and also supports your business relationship
with your 3PL. The length and depth of those terms will vary widely
depending on your industry and logistics needs, but your logistics partner can
make suggestions and explain their requirements to speed up the process.
This results in a win-win for both parties and important cost savings for you.

c. Warehouse Lein: - No business has a goal to "go under," but it's an unfortunate
reality of business that can happen. A warehouse lien in your contract offers a
smart solution: a uniform commercial code process to confirm status as a
secured creditor in the event of bankruptcy, and freedom to liquidate a
portion of held product to satisfy the debt. In bankruptcy, this process must go
through bankruptcy court to enforce the lien, providing a distinct timeline to
keep everyone on the same page. Unlike a transportation lien which only
covers the product on a truck, a warehouse lien extends to the entire product
in a warehouse, giving your 3PL flexibility for satisfying the outstanding debt.
 d. Compensation: - The type of compensation you'll be negotiating is perhaps the
most obvious item of importance for your contract. Whether you're opting
into a management fee with costs passed to the consumer, or choosing a static
rate based on unit volume, including a well-explained compensation plan will
help you define your expenses and your 3PL partner's financial expectations.
Part of your contract negotiations should be a detailed discussion about any
and all value-added warehousing services your company anticipates using, in
order to break out those costs. From product handling services to overtime for
warehouse staff during your busy periods, hashing out these costs beforehand
keeps the machine of logistics-driven commerce working.

4. Explain the remuneration types

Ans: - The term "remuneration" means compensation or pay, but it has a broader
meaning than just basic pay. It can also include not just base salary or bonuses
but commissions and other payments, as well as deferred compensation or benefits
paid under the terms of an employment contract. It's important to understand how
each type of remuneration needs to be accounted for in terms of taxes, so that you
don't underpay or overpay and make sure that you claim the remunerations in the
appropriate tax years, using the correct forms. Businesses can set up their own
remuneration systems as long as they comply with federal and state laws. It goes
without saying that businesses should treat their employees the same regardless of
race, gender, and other issues to avoid discrimination and lawsuits, always assuming
they work in the same type of position or capacity.
Types of remuneration are: -
a. Minimum Wages: - Minimum wage is one type of remuneration. It is the
lowest amount that can legally be offered for a specific position or to do a
certain job. It is maintained by the federal government, and, while minimum
wage can vary from state to state or region to region, the lowest amount
offered can’t fall below the minimum wage set by the federal government.
Historically, the minimum wage tends to rise with inflation, though this isn’t
always the case.
b. Minimum Guaranteed Commission – Staff Salaries: - A salary is a form of
payment from an employer to an employee, which may be specified in
an employment contract. It is contrasted with piece wages, where each job,
hour, or other unit is paid separately, rather than on a periodic basis. From the
point of view of running a business, salary can also be viewed as the cost of
acquiring and retaining human resources for running operations, and is then
termed personnel expense or salary expense. In accounting, salaries are
recorded on payroll accounts. Salary is a fixed amount of money or
compensation paid to an employee by an employer in return for work
 performed. Salary is commonly paid in fixed intervals, for example, monthly
payments of one-twelfth of the annual salary.

c. Handling Rate / Ton – Labour Costs: - The cost of labour is the sum of all
wages paid to employees, as well as the cost of employee benefits and payroll
taxes paid by an employer. The cost of labour is broken into direct and
indirect (overhead) costs. Direct costs include wages for the employees that
produce a product, including workers on an assembly line, while indirect costs
are associated with support labour, such as employees who maintain factory
equipment. When a manufacturer sets the sales price of a product, the firm
takes into account the costs of labour, material, and overhead. The sales price
must include the total costs incurred; if any costs are left out of the sales price
calculation, the amount of profit is lower than expected. If demand for a
product declines, or if competition forces the business to cut prices, the
company must reduce the cost of labour to remain profitable. To do so, a
business can reduce the number of employees, cut back on production, require
higher levels of productivity, or reduce other factors in production cost.

d. Secondary Transportation: - Secondary transport movements typically involve

lower volume movements from an organisation’s delivery warehouses to its
customers. They will often be multi-drop deliveries, either going to regular
fixed locations as is the case with retail store deliveries, or to locations that
vary every day. As a key element of many logistics networks, secondary
transport movements offer several opportunities for improvement and
optimisation.
When optimising secondary transport routes, we typically take the following
factors into account:
 Customer locations
 Vehicle capacities and availability
 Driver availability
 Access restrictions e.g. maximum vehicle size
 Time windows during which a delivery may take place
 Special handling e.g. vehicle mounted fork lift or tail lift
 Driver’s hours restrictions including needs for overnight breaks on long
runs.

e. Performance based Incentives – Performance Dashboard: - Performance-

based incentives include both monetary and non-monetary incentives to
encourage health-related actions or achievement of performance targets.
Supply-side PBIs are used to improve the quality and availability of services.
They are given to health care providers or managers at the facility, district, or
national level, and are conditional on achieving service delivery or public
health goals. Supply-side PBIs are now often being incorporated into national
public health delivery systems, social insurance schemes, contracts with
service delivery organizations, and safe motherhood schemes in low- and
middle-income settings.