TECH TERRAIN COLLEGE

DIPLOMA IN LOGISTIC
MANAGEMENT

ASSIGNMENT (CARGO HANDLING)

PREPARED BY:
NURUL IMAN MARDHIAH BINTI GHAFAR LA8-014-22
FELLYCIA BINTI LORENS LA8-018-22
HAZELDE ASRINA JUMAHIT LA8-017-22
MISYELBIE DAPHNIE PONSIUN LA8-011-22

PREPARED FOR:
MS ANIS SHAFIQAH BINTI MOHD SAIDUN

DATE OF SUBMISSION
24 AUGUST 2022
BIODATA GROUP :
 TABLE OF CONTENT

NO CONTENT PAGE
1 Functions of Warehouse and Distribution 1
Department in Logistics Company
2 Classification of The Storage systems and Stock 2-6
Location
3 Appropriate illustration the Storage for Spare Parts 7-8
and Best Order Picking Process
4 Issues that can Impact the Effectiveness of Order 9
Picking Operations
5 References 10
 1. Functions of Warehouse and Distribution Department in
Logistics Company
The movement function of warehouse is subdivided into receiving, in-storage
handling, and shipping.
Receiving: Merchandise and materials arrive at the warehouse in quantities
larger than what is dispatched. The activities involved are, unloading the
materials from the transportation vehicle using hoists or cranes and the materials
are stacked on pallets to from a unit load for movement efficiency.
In storage handling: On receipt of the product, it becomes necessary to
transfer the merchandise within the warehouse to position it for storage pr order
selection. When the order is received, the required products are accumulated
and transported to a shipping area. This helps in the selection process for
grouping materials, parts, and products into customers’ orders.
Shipping: Shipping involves checking and loading orders onto transportation
vehicles. Shipping in unit loads leads to considerable saving of time in loading
the vehicle. Checking operations are required to be done when merchandise
changes ownership as a result of shipment.
Storage is another function performed in a warehouse. Storage can either be
planned or extended.
Planned storage: Storage for basic inventory replenishment is referred to as
planned storage. Its duration varies depending on the performance cycle length.
Planned storage must provide sufficient inventory to fulfill the warehouse’s
function within the logistical system.
Extended storage: Extended storage refers to inventory more than that planned
for normal warehouse operation. This becomes necessary as;
Sometimes storage may be required for several months before customer
shipment.
Seasonal items require storage to wait for demand or to spread across time.
Erratic demand, product conditioning, speculative purchases, and discounts call
for extended storage.
Distribution management manages the supply chain for a firm, from vendors and
suppliers to manufacturers to point of sale, including packaging, inventory,
warehousing, and logistics. Adopting a distribution management strategy is
important for a company's financial success and corporate longevity.
We can say that the main objective of distribution logistics is to reduce the cost of
supplying finished products to customers, maintaining or improving the level of
service provided.

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 2. Classification of The Storage Systems and Stock Location

2.1 The Storage System

One of the first steps that must be taken in order to craft a warehouse that’s
functional and organized is to select your storage system (or systems). Naturally,
this is not a choice that should be taken lightly; warehouse storage systems are a
major capital investment that, depending on the design and the way they fit into
your warehouse floor plan and processes, can either help or hurt your
throughput. Because there are several different categories of warehouse storage
systems on the market today, it’s key to get acquainted with the options before
being sold on one that might not complement your layout or support your need
for flexibility.

2.1.1 Static Shelving

As the name suggests, static shelves are
storage mechanisms that are designed to stay
in one place. For the most part, they are meant
to hold inventory that is fairly lightweight (a few
hundred pounds per shelf). It’s commonly used
for storing inventory that needs continuous
replenishment. Because they’re not compatible
with forklifts, static shelving is generally used
with inventory that must be manually picked,
placed, and/or organized. For your larger
inventory, invest in a wide-span shelving
system, which can hold more weight and can be
used in higher-elevation configurations.

2.1.2 Mobile Shelving

Similar to static shelving, mobile shelving is a
completely adjustable solution that is meant to
hold your manually-picked items, but the
difference here is that many of these systems
are designed to hold more items in less space.
With mobile shelving, shelves or cabinets are
mounted on carriage and rail systems,
eliminating fixed aisles and increasing
productivity by making inventory more
accessible, even when space is tight. Mobile
shelving designs typically include level tracks
that can either be manual or mechanized.
Some even come equipped with locking systems to control access to inventory.

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 2.1.3 Pallet Racking
For the busiest and largest warehouses, pallet
racking systems are usually treated as the
centerpiece of the operation. Typically, pallet
racking systems are made out of wood, metal,
or plastic and hold inventory that is received in
large boxes. Depending on the height, the
boxes are placed on the pallet racking system
with the help of a forklift or an automated
mechanism. There are a variety of sub-
categories of pallet racking systems, including
carton-flow racking, cantilever racking, coil
racking, double-deep racking, drive-in racking,
drive-through racking, high-bay racking, mobile racking, narrow aisle racking,
pallet live racking, push back racking, shuttle racking, and vertical racking. Most
often, warehouses will choose systems based on weight limits, flexibility, and
whether or not the system demands a change in infrastructure.

2.1.4 Multi-Tier Racking

A great choice for large stocks of items that
have small unit sizes, multi-tier racking is a
system that is designed to capitalize on
vertical space. Because no warehouse is
one-size-fits-all, many multi-tier racking
options are flexible, with the ability to add or
remove tiers depending on your current
needs. Mostly, multi-tier racking concerns
relatively lightweight items that are picked
and organized manually. To get the most out
of this warehouse storage system, organize
each tier strategically and pack items as
densely as possible, while at the same time
paying attention to weight limits and ceiling-
to-rack height compliance guidelines.

2.1.5 Mezzanine Flooring

If you have the budget and your strategic
warehouse layout allows for it, mezzanine
flooring is an effective and space-saving
storage option. Essentially, mezzanine
flooring is a second (or third, or fourth) floor
that is constructed above the main warehouse
floor. Because of the intrusive nature of the
build, this is likely one of the more expensive
options that a warehouse can choose, but it

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also has the most potential for customized features, such as lighting, lift-systems,
and conveyors.

2.1.6 Wire Partitions

While mezzanine flooring is one of the
more high-tech options, wire partitions are
on the other end of the spectrum. Wire
partitions are, effectively, strategically-
placed wire cages that are meant to be
installed and torn down quickly and easily.
Often, the inventory that is housed within
wire partitions are the items that may need
special security. Some warehouses are
even known to use wire partitions to
construct makeshift, temporary offices for
managers who work on the floor.
As you can see, there is a nice range of warehouse storage systems available
and, as we move into the future, warehouse storage systems are only getting
more lightweight, affordable, and technologically-advanced. As mentioned, don’t
be sold on a system that doesn’t fit your needs; instead, select one that
possesses enough flexibility to support your operation as it flourishes and grows.
The warehouse consists of a warehouse for storing goods, transportation
facilities (such as cranes, elevators, slides, etc.), transportation pipes and
equipment for entering and leaving the warehouse, fire protection facilities, and
management rooms.

2.2 Stock Location

The warehouse consists of a warehouse for storing goods, transportation
facilities (such as cranes, elevators, slides, etc.), transportation pipes and
equipment for entering and leaving the warehouse, fire protection facilities, and
management rooms.

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 2.2.1 Wholesale warehouse
The wholesale warehouse is mainly used to
store goods that are imported from the
procurement supply warehouse or
purchased locally. This type of warehouse
is generally close to the commodity sales
market, and the scale is generally smaller
than that of the procurement supply
warehouse. Also engaged in the zero-
removal supply business.

2.2.2 Procurement supply warehouse

The procurement and supply warehouse is
mainly used to centrally store goods
purchased from the production department
and imported and exported internationally.
Generally, the warehouses in this category
are located in large and medium-sized
cities where commodity production is
concentrated, or where the commodity
transportation hub is located.

2.2.3 Processing warehouse

In the past, after talking about the
functions of the warehouse, the processing
delay function of the warehouse has been
mentioned. Generally, the warehouse with
the product processing capability is
become the processing warehouse.

2.2.4 Transit warehouse

The transit warehouse is in the middle of the cargo transportation system, and
stores the goods waiting for transshipment. The general cargo is only temporarily
parked here. This type of warehouse is generally located near the port of the
road, railway and waterway to facilitate the cargo. Waiting for shipment here.

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2.2.5 Retail warehouse
The retail warehouse is mainly used for
short-term storage for the commercial
retail industry, generally providing store
sales, the scale of the retail warehouse
is small, and the stored materials are
fast.

2.2.6 Reserve warehouse

Such warehouses are generally set up
by the state to keep national emergency
reserves and war preparations. Goods
are generally stored in such warehouses
for a long time, and the stored materials
are regularly updated to ensure the
quality of the materials.

2.2.7 Bonded warehouse

A bonded warehouse is a warehouse
that is set up on the land of a country
but outside the Customs border for the
needs of international trade. The goods
of foreign enterprises can go through
the customs declaration procedures
without tax in and out of such
warehouses, and after approval, they
can process and store the goods in the
bonded warehouse.

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3. Appropriate Illustration The Storage for Spare Parts and Best
Order Picking Process

3.1 The storage for spareparts

3.1.1 Boltles Rack Malaysia

Boltless rack Malaysia offers a vast selection
of heavy load to light load racks. They are
designed to minimize the set-up time for the
packages and save your money too. These
boltless racks are fast to install and can be
dismantled according to the client’s
requirements.

3.1.2 Cantilever Racking System

The cantilever racking system is a perfect choice
for oversized, long, and bulky materials. Our
cantilever storage racks are multi-level and high-
density storage racks and handle different types
and sizes of products without column obstruction.
They are made of steel and flexible enough to
accommodate your material.

3.1.3 Drive In and Drive Through Racking

Our drive-in and drive-through racking systems
are self-supporting racks and free-standing,
allowing drive-in access to your stored
products. The drive-thru racking system and the
drive-in racking solution store products in cubic
space, minimize the pallet per square cost and
enable FIFO inventory control.

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 3.2 Best Order Picking Process

Warehouse order picking is a simple concept, but in practice, it can be quite

complex. Simply put, warehouse order picking refers to the necessary labor and
parts involved in pulling an item from inventory to fulfill a customer’s order. It’s a
process that might sound like the most uncomplicated aspect of your business,
but when you crunch the numbers and realize that it amounts to an average of
55% of operational costs within any given distribution center, budget-conscious
warehouses quickly find that ineffective systems could stop them from further
innovation.
If your business fulfills orders, it’s key that you develop a warehouse order
picking strategy that emphasizes speediness, order pulling accuracy and
organization, as well as investments that might aid the three points as your
demand shifts in the future.
Generally speaking, order picking and order selecting falls entirely under the
umbrella of warehouse logistics, but that doesn’t mean your current practices
must always be assessed by the decision-makers at the top. For instance, if your
competitors are undercutting you in terms of fulfillment time or you have received
public online complaints concerning order accuracy from customers, the first
factor you need to reassess is your warehouse order picking process.

3.2.1 The pickers are physically and mentally able to perform work in the
long-term
Most successful warehouse picking requires the worker to move from task-to-
task in the most timely manner possible. It might not be a trying job when it
comes to strategy or innovation, but it is one that requires some physical and
mental prowess. Make sure that each prospective employee knows exactly what
the job entails in terms of physical expectations, walking speed, lifting
requirements and efficiency before you move them forward in the hiring process.

3.2.2 The pickers understand the job’s low margin for error

Picking is not a job for those who cannot follow directions. This might be a hard
thing to determine in the hiring process, but their application, previous experience
or general behavior might be good indicators as to just how meticulous they will
be in the warehouse.
3.2.3 The pickers are put through adequate training
If your company is at all interested in precision, it’s key that you supply your
picker with the most thorough training possible before you put them on the line,
and on-the-job, they should be provided with tools that give them constant
feedback.
These might be common-sense hiring techniques, but they are all integral in
guaranteeing that the right products get into the hands of your customers in the
timeliest fashion possible.

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 4. Issues that can Impact The Effectiveness of Order Picking
Operations

4.1 Not finding the correct items in the locations.

Impact : If an item is not where it should be in the warehouse, this means the
picker needs to spend time looking for it. This delays the order fulfillment, which
can lead to an unhappy customer and negative reviews. On top of that, it also
makes for a highly inefficient warehouse operation.

4.2 Pickers make mistakes which means the wrong items or

quantities are picked.
Impact : If the wrong items or quantities are picked, time is wasted at the pack
bench where, hopefully, the error is noticed. If the fault is not realized, the wrong
items are despatched which will then require a refund or replacement. As well as
costing money, it also paints a poor picture of your brand.
To calculate the cost of those mispicks, multiply the number of mis-shipments per
week by the cost of a miss-shipment and you will see how much money is
wasted. When calculating the cost of a miss-shipment, don't forget to consider
shipping costs, returns costs, labor time to re-pick, customer service work, and
time spent rectifying bad online reviews.

4.3 Have paper-based picking.

Impact : With this kind of operation, the paper must be printed and carried with
the picker. This is not only a lengthy process, but it is also highly inefficient and
leaves a large margin for error due to lost or unfulfilled orders.

4.4 No prioritization when picking.

Impact : If your orders are not prioritized then often the most recent sales order
items are picked first by default. This can mean that older orders or more
important orders are neglected or delayed.

4.5 Labor-intensive picking - 'We've always hired more staff as we've

grown and this can't go on forever.'
Impact : If you have too many pickers working at the same time, you will likely be
spending more money on labor than you are getting back in return. Overtime is
starting to creep in and sometimes deadlines for fulfillment are missed.

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5. REFERENCES

1. https://lapyue.com.my/product/ ( Lap, Yeu Trading, 2000 )

2. https://6river.com/what-is-picking-in-a-warehouse/ (Chris Conway, 11

February 2021 )

3. https://www.camcode.com/blog/types-of-warehouse-storage-

systems/ ( Selly Stazzone, 1 March 2022 )

4. https://www.cemat-

asia.com/industrynews/shownews.php?lang=en&id=3521 ( cemat

Asia, 4 November 2022 )

5. https://www.mbaknol.com/logistics-management/warehousing-

function-of-logistics/ ( MBA Knowledge Base, 2021 )

6. https://www.peoplevox.com/blogs/10-common-problems-with-order-

picking-and-how-to-solve-them ( Jonathan Bellwood, 01 June 2021 )

7. https://www.investopedia.com/terms/d/distribution-management.asp

( Adam Hayes, 25 June 2022 )

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