SOURCING AND LOGISTICS

Final Report
Topic: Warehousing

Submitted by:
Ayesha Zahid
Falak Ur Rehman Siddique
Fasih Ahmed
Kanza Adil
Mahhum Mirza
Syeda Sameen Zehra
BBA 8-B
Introduction
For our project, we would setup a hypothetical warehouse. This report would encompass all
aspects of setting up a warehouse.

Our company is named E2E Warehousing, a limited liability company which would be 100%
owned domestically by six owners and is managed one local director. It would have approximately
20 to 30 employees once the operations commence. The company does not perform any foreign
trade activities. First step would be to reserve name, get the company registered, and get the NTN
number through Securities and Exchange Commission of Pakistan (SECP) and Federal Board of
Revenue (FBR). This procedure requires up to 22 documents. Register with EOBI, Excise and
Taxation department and Sindh Employment Social Security Institution is also required.

The fully furnished rented facility would be located in Port Qasim Industrial Zone. The rent would
be Rs. 5,000,000 monthly with monthly maintenance cost of Rs. 500,000. We chose Port Qasim
Industrial Zone because it enjoys the benefits of being a Special Economic Zone (SEZ) i.e.,
exemption from many sort of taxes and duties. While choosing the facility it would be made sure
that the infrastructure is modern and has water and sewerage connections and electricity lines
installed.

The facility would be approximately 14,000 sq. ft. single story and will be used to store general
consumer goods and medical device equipment. Company’s main clients would be P&G, National
Foods, Abbot Pharma and Abbot Nutritionist

Warehouse layout design

E2E facilitate value added logistics services for catering to any requirements of clients who need
to sub-contract their logistic and administrative processes. We have access to and provide to our
clients all-inclusive warehousing facilities both for importing or exporting cargo. We have the
capabilities and facilities to provide the appropriate storage for every type of cargo including food
items, non-perishable items such as few Abbot Products and National foods products.

The main structure of a warehouse is made from steel. The steel is in the form of interlocking poles
and pipes, which are welded together to create a tall yet durable frame for the cladding and roof to
be affixed to. The walls are made from corrugated plastic. Its main benefits are that it is cheap
and readily available, lightweight, durable, and very easy to replace or maintain. The area it covers
is 14,000 sq. ft. with single story design and aisles which are in a form of a-z like,

 Aa Ab Ac…….
 Ba Bb Bc……

The center aisle goes up to A-F and extreme right and

extreme left will have A-E aisles. The aisles are of
typical width that is 10.5 ft. The warehouse has 18,000
locations.

Our warehouse operation works in a following way,

The reception area is where incoming inventory is processed as it comes in. Here, the warehouse
team identifies, inspects, and documents all incoming items for QA and logistical purposes. Once
a shipment is “officially” received, the warehouse team will determine the optimal storage space
for the inventory.

A warehouse’s storage area is where inventory is held in preparation for outgoing delivery.
Depending on the physical makeup of the items in question, inventory may be stored directly on
the floor, stacked together, or placed on racking units (aisles) whichever method provides the most
convenience (without sacrificing quality assurance).

The picking area is where inventory lives before being delivered, allowing our team to make any
necessary modifications to orders as placed. This may involve picking multiple items to be shipped
together or picking items to be personalized before shipping.

Within the dispatch area, fully-prepared shipments are housed before being delivered. Unlike
storage, the items being held in dispatch have already been ordered, and are guaranteed to be sent
out within a relatively short period of time. Dispatch areas should be placed in a location that
allows flow of inventory from storage to loading.

Then the docks, our warehouse has 15 docks inbound and outbound. The docks are designed in a
manner that are human friendly infrastructure such as slopes in docking area are as small as
possible: the gentler the slope, the less chance of errors and accidents, as a warehouse is going to
be used by large volume vehicles. Most docks for industrial vehicles are built to a height of 3.9 ft.
However, there are many trucks whose cradle (the platform on which the trailer or container rests)
is considerably higher or lower than this level. As our dock are used for high-volume trucks, it is
designed for cradles ranging in height from 2.9 ft. to 5.1 ft.

Departments
E2E warehouse has 4 major departments.
1. Client Service:
The client service department mainly run on the software. In E2E warehousing we use Warehouse
management system (WMS). CS department receives all the information about inbound and
outbound from the clients via software as well as on email. Basically, the WMS is integrated with
client’s software. If the client has the same software, then it is easy process. If the client does not
have the same software, then electronic data indicator (EDI) is used as bridge for connection. For
inbounds CS department generates Advance Shipment Notification (ASN) and for outbound
shipment orders are generated. ASNs and SOs both are given to the operation department for their
operations in the warehouse.
Furthermore, the pallet ID’s are also generated by CS department for inventory management
purpose. Another KPI of this department is to give clearance to the client’s transporter by creating
a challan for authenticity. Another KPI of this is to close all the inbounds in the system.
2. Operations:
Operation department is the backbone of the E2E warehousing private limited. All other
departments are its supporting pillar. Operation department works on the information provided by
the CS department. All the inbounds, store and outbound are handled by operations department.
For the inbounds, Operation department receives Advance shipment Notification (ASN) from CS
department which has all the necessary information like client name, quantity of the finished good,
SKU, number of pallets, inbound number vehicle number etc. that is about to be received by E2E.
As operation department receives ASN it plans everything like on which dock the vehicle is going
too parked for the unloading. According to our SOP’s the warehouse assistant would get the
vehicle parked near to the dock that is near to dedicated aisle of the client. Every client book aisle
which has many locations according to their requirement and the dock in front of the aisle are
reserved for that client exclusively.
Once the inbound vehicle arrives and parked on the dedicated dock, the warehouse assistant checks
the seal of the vehicle and then break it and removes the finished good pallets from the vehicle.
Matches the quantity with the ASN, then put system generated ID’s on the pallets and then put
away all the pallets in empty location in the effective way and record everything in the receiving
sheet and then update in the warehouse management system (WMS).
For outbound the CS department generates shipment order (SO) usually a day before the outbound
vehicle arrives and give it to the operation department. SO has all the details like location of the
finished good, SKU, ID number, quantity, vehicle number, transporter name, outbound number
etc. 2 hour before the vehicle arrives for the shipment the warehouse assistant under the supervision
of its team lead put out all the finished good from the locations and put it on the stage. Another
warehouse assistant re check the items of the shipment. Once the vehicle is docked the items again
gets rechecked and then put it in the vehicle. Then the team lead locks the door of the vehicle
container and put the company seal on it if the shipment is for the up country. If the items are to
be shipped within the city to retailers then the clients’ representative is there to inspect the shipment
before the vehicle left the premises.
3. Inventory
We keep finished goods and they all are non-perishable items such as Mospel (Abbott Pharma),
ensure and Pedia Sure (Abbott nutrition), and pickles (Achaar), masala packets, vermicelli,
ketchup (NFL, National Foods Limited), in different SKU’s.

4. Inventory Management

Inventory department has all the data related to all the stock whether inbound, outbound or the
stock which is currently present in the warehouse. Inventory dept. has all the records about the
SKU’s, their location, quantity, batch no., item codes etc. this record keeping is done through
W.M.S(Warehouse Managing System). This department looks after if any location of any pallet is
being changed due to any reason, such as this usually happens when the warehouse is almost full
and we have to do CO MATRIX (any items which are not allowed by the customer to kept together
in same Aisle for more than a day, when these items are kept together it is known as CO MATRIX).
Since this department has all the records so if any stock gets misplaced and are customer ask us
informs us about the missing inventory then there are three ways through which we can find 1)
Location which is mentioned in the record is checked, 2) Then stage also known as free area is
checked, whether that pallet might be left over there, and still if it’s not found then 3) we check
are cameras which are present at every dock to check if the inventory was loaded or not, if it was
loaded then we are clear. To check whether the inventory is at its right place or not IRA (Inventory
Record Accuracy) also known as cycle counting is done on a monthly basis, manually. What we
do is, we note down the locations, batch no., SKU and quantity and verify it with the information
present in W.M.S.

5. Quality Assurance (Q.A)

Quality Assurance department has to assure that any standards, policies or procedures provided by
our management, ISO (International organization for standardization), GWP (Goods warehouse
practices), any guidelines provided by our customers, or any pharmacy related DRAP
requirements, to implement them and to ensure its compliance. And for this we do following:

1) Make SOPs, then take approval from management and finally implementing them. Such as no
dust on racks, labelling of location should be visible, windows of warehouse should be covered,
and any person entering in operations department must wear safety shoes, vest and helmet.
2) To train operation department for how to handle products carefully according to customer’s
guidelines.
3) Work permits are given by this department in case of digging, welding, and any work which
is being done on an extra height limit. First the risk is assessed and related precautions are
done.
4) Conducting different Drills for all employees and to check on their attendance during the drill.
5) Q.A department do random accuracy for cross checking of IRA,
6) During picking, receiving or shipping MHE’s are used so there is a chance that MHE might
hit pallets and they might fall down or someone can get injured, so keeping these risk in mind
there are some quality controls such as, speed of MHE should be limited (5 Km/hr.), use horns.

Future of E2E Warehousing:

In the future E2E is planning to expand its business further to transportation all over Pakistan then
on the global level via sea and air routes. Furthermore, freight forwarding, custom clearance,
packaging and customer value added service will be the part of this expansion. To be precise E2E
warehousing will cater all the aspect of logistic.