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Part A

Ans 1) a) In this problem, the S&OP will be unchanged given that the Sales Department must not have an inking about
the change which is implemented. The current LSP will continue for the first 2.5 months, till which time the new one will
be onboarded and put into implementation from 2.5 months onwards. The planning (Manpower) for the 3 rd month can
be done by dividing the month into 2 parts: The first part is to be done by the current 3 PL and the latter part can be
done by the new one.

Onboarding of new 3 PL/4 PL


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Ju Au Se
Description l g p
Initiative: 3 PL Training and Onboarding      
Task 1 Sourcing a new 3 PL firm (by looking for appropriate players)      
Task 2 Determining your bargaining power      
Task 3 Fixing of Contractual Terms and KPIs to be fulfilled      
Task 4 Negotiations regarding prices      
Task 5 3 PL Onboarding      
Task 6 Training and making the 3 PL getting accustomed to the Company processes      
Task 7 Final Onboarding      
         
Initiative: COVID-19 prevention      
Task 1 Looking for vendors providing prevention services/Janitorial Services      
Task 2 Buying and installation of Tunnel Sanitization Systems      
         
Initiative: Selection of Warehouse Premises      
Task 1 Perform ABC Analysis of different SKUs      
Task 2 Determine annual stock incoming and outgoing based on S&OP      
Task 3 Determine requirements like Dock doors, MHE, manpower needed      
Task 4 Determine space for Storage Area, Pallet Area and get the total area required      
Search for appropriate space for the Warehouse (Based on Distribution
Task 5 Strategy, Flow will be I shaped)      
Task 6 Negotiation of prices with appropriate Property Dealers      
Task 7 Purchase and float tenders for Construction      
         
Initiative: Technological Integration      
Task 1 Gathering of data on the faults of current WMS Systems      
Task 2 Onboarding new technologies like Blockchain supported WMS      
Task 3 Installation of CCTV camers to avoid pilferage      
Task 4 Implementation and Continous Improvement      
In order to tackle the various KPIs, the new 3 PL can be trained on the following:

i) Inventory Accuracy: They can be trained on the proper picking and placing strategy, they can also be trained
on the WMS System and give them a brief training regarding the new Blockchain enabled WMS system with
professionals, in the future IoT systems can be implemented.

Ans 1 b) Selection of Warehouse premises (Already mentioned in the Gantt Chart previously)

Initiativ  J Au Sep
e: Selection of Warehouse Premises ul g  t 
Task 1 Perform ABC Analysis of different SKUs      
Task 2 Determine annual stock incoming and outgoing based on S&OP      
Task 3 Determine requirements like Dock doors, MHE, manpower needed      
Determine space for Storage Area, Pallet Area, Utility Area and get the total area
Task 4 required      
Search for appropriate space for the Warehouse (Based on Distribution Strategy,
Task 5 Flow will be I shaped)      
Task 6 Negotiation of prices with appropriate Property Dealers      
Task 7 Purchase and float tenders for Construction      

The area of selection should be such that there is proper infrastructure (roads etc.), should have a proper internet
connection, should be large enough to accommodate trucks for unloading. Since, it’s an FMCG company an I-shaped
warehouse should be preferred because the volumes are very high. The loading parameters of the ground will not be a
major constraint because products are light. Since, the volume of products is high stringent WMS systems should be
implemented to avoid pilferage. Also, care should be taken to accommodate some space for Returns since Returns are
expected to be sizable due to Expiry or Damage of Goods.

Ans 2 A) The garments can be packed in the following way: Receiving garments-> Hand-tagging-> Folding->Compressing
the air-> Cartoning-> Taping-> Bar-coding and finally Packing

The route it shall take is: Ludhiana to Mumbai (via Western Dedicated Freight Corridor)-> JNPT-> Arabian Sea-> Indian
Ocean->Atlantic Ocean-> Gulf of Panama-> Port of Texas City

MHE Used: Fork Lifts, Trailers for unloading into the ship

Multi-modal Systems used: Trains and Ships (Documentation: Cargo Manifest, Freight Manifest)

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