Business Process

Re-engineering
Freight Links
International (PTE) Ltd

30.03.2023
Scope of the engagement
Expectations of Freight Links International

Locations
Review HR strategies & current practices and
implement suitable structures and processes
Head Office
Services Biyagama Zone office Review current business processes & identify
opportunities for BPR
Meegoda LBCL office
Logistics
LBCL-Biyagama Office Review existing system capabilities & identify
changes required to align system
Air/Ocean Freight Vinatage office requirements to meet current and future
Trico Office business needs.
Freight Links Warehousing
International Kandana-Haulage
(Pte) Ltd Distribution
Biyagama warehouse
Identify Gaps
Supply Chain Katunayake Air cargo
village office Recommendations to bridge the gaps via
roadmap with milestones
Ace Yard -Wattala
Drive implementation through project
steering committee to ensure desired future
state
2
What We Did
Our Visits Discussions and observations Our Actions
17 January ( Kick off)
18 January Stakeholders covering,
● Sales and marketing 1. Understand the current
23 January
25 January ● Air freight business model and
27 January ● Cargo village process - Discussions
30 January ● Haulage Kandana /observations
06 February ● Warehouse 2. Business process mapping
08 February ● Head office 3. Create Recommendations
10 February operations
11 February
● Finance
16 February
● IT
21 February
01 March ● HR
03 March
08 March
10 March
14 March
15 March
16 March
Key Process Mapping

4
Lean Organization - Introduction to 8 wastes
Over-processing
Transport • Unnecessary paperwork or processing
• Moving goods inefficiently
• Can lead to increased costs and delays
• Can result in higher costs and longer
lead times

Inventory
• Excess inventory or inefficient
inventory management
Overproduction
• Can lead to increased storage costs, • Producing more than is needed
obsolescence, and the risk of • Can lead to increased costs and delays
damage or loss

Motion
• Unnecessary movement of human
• Can lead to increased time spent
Defect/ Rework
searching and increased risk of
• Errors or damage in the process
accidents
• Can lead to increased costs, delays, and customer
dissatisfaction
Waiting
• Idle time in the process
• Delays in shipping or customs clearance Skills
can lead to increased lead times and • Underutilized employee skills or lack of
costs training
• Can lead to Employee and customer
dissatisfaction
6
KEY FINDINGS AND OUR
RECOMMENDATIONS
Lack of standardization in documentation process - Documents
Department

Inconsistencies in information entering to LIMS:

leading to document searching delays
Ex. Bill of lading entered as “BoL , B/L, B.L.

Rework due to incomplete initial documentation:

Ex: Missing information in the shipment manifest
Limited access to real-time data document collection file lead to delays in creating the
Operations department lack access to real-time data and they shipment manifest.
are unable to monitor shipment's progress or issues during
transit.
Ex: Delays caused by customs clearance, accidents or theft

Major Lean Waste

● Waiting
● Defects
● Overprocessing

8
 Observations and Recommendations - Documents Department

Observation Recommendation Impact of recommendation

● Conduct training sessions for employees to provide

comprehensive understanding on the purpose of

each document field.

Lack of standardization in ● Visually display the sample document completion Ensures consistency in documentation and

documentation process standards at each of the work station reduces errors

● Introduce document checklists

● Assign a documentation specialist

● Utilize technology to automate documentation

9
Inefficient use of time and resources due to manual
documentation processes - Documents Department
Manual data entry into multiple systems:
Documentation submitted to several parties, Paper-based processes:
including customs agents, shipping lines, and High usage of physical documents, if a document is
consignees : Data manually entered into each misplaced or lost, it can lead to delays in customs clearance
system, and additional fees.
Ex: Bills of lading and commercial invoices

Inconsistent document formatting:

Ex: Multiple & different file naming conventions
leads to difficult to locate and access documents
when needed.

Last minute follow ups: Manual tracking of documentation:

If a shipment is missing a required document, staff Lead to inefficiencies in meeting with the deadlines.
manually follow up with the shipper or consignee to Create additional work to correct mistakes and potential
obtain it penalties for FLI
Major Lean Waste
● Waiting
● Overproduction
● Motion

10
 Observations and Recommendations - Documents Department

Observation Recommendation Impact of recommendation

Inefficient use of time and resources ● Invest in a feasible software

due to manual documentation ● Provide employee training Increases efficiency and reduces errors

processes ● Create guidelines for electronic documentation

11
 Lack of visibility and tracking for shipments during transit -
Operations Department
Inadequate tracking technology:
Outdated tracking technology result in limited visibility
for shipments during transit. FLI relies heavily on
manual updates or non-automated systems.
Ex: Possible delays and inaccuracies in tracking

Limited access to real-time data:

Operations department lack access to real-time data and they Lack of customer support:
are unable to monitor shipment's progress or issues during Adequate customer support was not observed.
transit. Ex : Customer notifications on shipment's location and
Ex: Delays caused by customs clearance, accidents or theft status, Customer service is not available 24/7

Major Lean Waste

● Waiting
● Defects
● Overprocessing

12
 Observations and Recommendations - Operations Department
Observation
Lack of visibility and tracking for
shipments during transit
Recommendation Impact of recommendation
● Select and implement a shipment tracking system
Improved customer satisfaction, reduced risk
● Train staff on how to use the system
of shipment delays, and proactive issue
● Develop a process for proactively addressing any
resolution during transit
issues identified through the tracking system
13
Capacity constraints during peak shipping seasons - Operations
Department

Shortage of skilled labor:

At peak shipping season this can put a strain on the FLI’s
workforce, especially if there is a sudden increase in demand.
Ex: lead to a shortage of skilled labor, which may result in a
decline in service quality and delays.

Not having a contingency plan:

At peak shipping season not having a contingency plan will lead towards
a lot of caos. Operations department needs to have a contingency plan
in place for peak shipping seasons. This plan should include a strategy
for managing increased cargo volumes, staffing needs, equipment
requirements, and logistics. The plan should also include a
communication strategy to keep clients informed about any delays or
changes to shipment schedules.

Major Lean Waste

● Skills
● Waiting
● Overprocessing

14
 Observations and Recommendations - Operations Department

Observation Recommendation Impact of recommendation

Reduced risk of shipment delays and ability

Capacity constraints during peak ● Develop a contingency plan to manage capacity
to handle higher volumes of shipments
shipping seasons constraints
during peak seasons

15
 The sales team has a limited understanding of the freight
forwarding industry and regulations - Sales, Marketing
Difficulty in identifying the most cost-effective shipping
methods: Missed opportunities for cross-selling:
Without a solid understanding of the industry and regulations, If the sales team doesn't understand the full range
the sales team may not be able to accurately determine which of services that the company offers, they may miss
shipping methods are most cost-effective for different types of opportunities to cross-sell and upsell to existing
shipments. This could lead to lost business or reduced customers.
profitability.

Inability to differentiate the company from

competitors:
The team struggle to articulate what sets FLI apart from
competitors. This could make it harder to win new
business and could lead to price competition rather
than value-based selling.

Major Lean Waste

● Overprocessing
● Motion
● Overproduction

16
 Observations and Recommendations - Sales, Marketing

Observation Recommendation Impact of recommendation

● Provide training on industry regulations and trends Improve customer engagement, reduce the
The sales team has a limited
● Conduct workshops on industry-specific topics risk of errors and fines, enhance the
understanding of the freight forwarding
● Provide access to industry publications and news reputation of the company and improve
industry and regulations.
sources. market share

17
 There is a lack of clear communication and coordination
between the sales and operations departments - Sales, Marketing
Incorrect shipment details:
Sales representatives may not be communicating all the Capacity constraints:
necessary details about a shipment to the operations team, such Sales representatives may be promising delivery
as the type of goods, their weight and dimensions, and any timelines or volume commitments that are not
special handling requirements. This can lead to operational feasible based on the capacity of the company's
issues, delays, and additional costs. logistics network. This can result in overbooking,
missed deadlines, and customer dissatisfaction.

Inaccurate pricing:
Sales representatives may not have up-to-date
information about the cost of transportation, customs
duties, or other fees and charges, which can lead to
inaccurate pricing and loss of profitability for the
company..

Lack of flexibility:
Sales representatives may be unwilling or unable to
Major Lean Waste make adjustments to shipment details or schedules,
● Transportation
● Waiting even when it is necessary to ensure smooth operations.
● Inventry This can create unnecessary complications and delays
for the operations team, as well as unhappy customers.
18
 Observations and Recommendations - Sales, Marketing

Observation Recommendation Impact of recommendation

● Set up regular meetings between sales and

operations teams This would reduce the risk of errors and

There is a lack of clear communication
● Develop communication protocols for sharing delays in the shipment process, improve
and coordination between the sales and
information and updates customer satisfaction, and increase sales
operations departments
● Monitor effectiveness and adjust protocols as revenue.

needed as continuous improvement

19
The sales team relies heavily on manual processes, which
can lead to errors and inefficiencies - Sales, Marketing
Order Processing Errors:
Manual processing of orders can lead to errors Inaccurate Sales Forecasts:
in data entry or missed information. Without accurate and up-to-date sales data, sales forecasts
Ex: Incorrect or incomplete shipments, which can be inaccurate. This can result in over or
can lead to lost revenue, damaged reputation, underestimation of sales, leading to missed revenue targets
and customer dissatisfaction. and inefficient allocation of resources.

Slow Response Times:

Manual processes can be time-consuming and
lead to slower response times to customer
inquiries or requests for quotes. This can lead to
lost business opportunities and decreased
customer satisfaction.

Inefficient Lead Management: Lack of Data Analysis:

Manual lead management can lead to lost or unqualified Manual processes make it difficult to collect and analyze
leads. This can result in missed opportunities to generate data. This can result in missed insights and opportunities to
new business and decreased revenue. optimize sales and marketing strategies.
Major Lean Waste
● Inventory
● Defects
● Waiting

20
 Observations and Recommendations - Sales, Marketing

Observation Recommendation Impact of recommendation

● Rollout digital processes in implementable areas

The sales team relies heavily on manual This would increase efficiency, reduce the
● Research and select digital tools and resources to
processes, which can lead to errors and likelihood of errors, and provide a more
support the sales team
inefficiencies. scalable solution for future growth.
● Train the sales team on how to use same

21
 Insufficient shipment tracking visibility - Air Freight

Incomplete Tracking Information:

Lack of Real-Time Tracking:
The tracking system does not provide sufficient information about the
The tracking system does not update in real-time,
shipment's current location, status, or expected delivery time. This can
making it difficult to track shipments in transit. This can
create uncertainty and delays in the shipment's delivery, as well as
result in delays in identifying any issues with the
difficulty in communicating accurate information to customers.
shipment, as well as difficulty in communicating
accurate information to customers.

Insufficient Customer Visibility:

The tracking system does not provide sufficient visibility to
customers, making it difficult for them to track their
shipment's progress or receive updates. This can lead to
frustration and dissatisfaction with the service provided.

Major Lean Waste

● Overprocessing
● Defects
● Waiting

22
 Observations and Recommendations - Air Freight

Observation Recommendation Impact of recommendation

● Develop a mobile app for customers to track their

shipments in real-time
Improve shipment tracking accuracy and
● Implement a proactive notification system for
transparency, leading to increased customer
Insufficient shipment tracking visibility stakeholders on any shipment delays or exceptions
satisfaction and retention, and improved
● Provide an online tracking dashboard for customers
internal efficiency.
and stakeholders to access the shipment tracking

information.

23
 There is a lack of clear communication and coordination
between the sales and operations departments - Sales, Marketing
Manual documentation:
Lack of real-time tracking:
FLI rely on manual documentation processes, such as printing and filling
While some air freight companies offer tracking
out paper documents, which can be time-consuming and prone to
services, the information may not be updated in
errors. Digitizing these processes could increase efficiency and reduce
real-time or easily accessible. Automating tracking
errors.
processes could provide customers with up-to-date
information on the status of their shipments.

Limited use of analytics:

Implementing analytics tools could help FLI make data-driven
decisions to improve their operations.

Manual data entry:

Major Lean Waste
Automating data entry through electronic data interchange
● Waiting
● Defects (EDI) systems could increase accuracy and efficiency.
● Overprocessing

24
 Observations and Recommendations - Air Freight

Observation Recommendation Impact of recommendation

Reduce labor costs, increase operational

efficiency, and improve the accuracy and

Limited use of automation and
● Develop an automation system for document speed of air freight operations, leading to
digitization in air freight operations
processing and data entry increased customer satisfaction and

retention.

25
 Lack of personalized communication with customers - CRD

Generic communication: Limited communication channels:

The company sends out generic The company only communicates with its customers through
communication to all its customers, such as a limited number of channels, such as email or phone,
mass emails, newsletters, or promotional without considering the customer's preferred method of
offers, without tailoring the message to each communication.
customer's specific needs or preferences.

Ignoring customer requests:

The company does not respond to customer
requests or concerns in a timely manner or does
not address them adequately, leading to
frustration and a lack of trust in the company's
ability to provide quality service.

Lack of follow-up: Inconsistent communication:

The company does not follow up with customers after the The company's communication with customers is sporadic
initial interaction, such as after a shipment has been or inconsistent, leading to a lack of trust and uncertainty
delivered, to ensure customer satisfaction or to ask for about the company's commitment to the customer.
feedback. Major Lean Waste
● Overprocessing
● Waiting
● Defects

26
 Observations and Recommendations - CRD

Observation Recommendation Impact of recommendation

● Regular check-ins from the account manager

● Personalized email newsletters with relevant
Lack of personalized communication
product updates
with customers
● Special offers or discounts for long-term profitable
Build stronger relationships with customers,
increase customer satisfaction, and ultimately
lead to increased loyalty and repeat business.

customers.

27
 Slow response time to customer inquiries - CRD

Delayed shipment tracking information: If customers are unable to Late response to pricing inquiries:
get real-time information on the location and status of their shipments, Customers may reach out to inquire about pricing for
they may become frustrated and lose trust in the company's ability to specific shipping routes or services. If the company
deliver on time. takes too long to respond, customers may look
elsewhere for a faster and more reliable service.

Slow response to general inquiries:

Customers may have general questions about the services or
processes of FLI. If the company takes too long to respond,
customers may become frustrated and may feel that the
company does not value their business.

Major Lean Waste

● Waiting
● Defects
● Overprocessing

28
 Observations and Recommendations - CRD

Observation Recommendation Impact of recommendation

● Automated email response acknowledging receipt of

inquiry Increase customer satisfaction and

Slow response time to customer
● Guaranteed response time within a certain period demonstrate the company's commitment to
inquiries
● Option for customers to schedule a call-back from a providing excellent customer service.

customer service representative.

29
 Failure to adapt to changing market trends- Product Pricing

Failing to account for changes in shipping costs:

The cost of shipping goods can fluctuate depending on a variety of
Sticking to outdated pricing models: If FLI doesn’t
factors, including fuel prices, labor costs, and regulatory changes. If a
adjust their pricing models to reflect changes in the
freight forwarding company fails to regularly assess these costs and
market may find charging prices that are no longer
adjust their pricing accordingly, they may find themselves either
competitive. For example, if a new technology emerges
overcharging customers or losing money on shipments.
that makes shipping more efficient, companies that
haven't updated their pricing models to reflect these
efficiencies may lose business to competitors who offer
lower prices.
Ignoring changes in customer demand:
If the company fails to conduct regular market research to
understand changes in customer demand, they may miss out
on new opportunities and be slow to react to changing trends.
For example, if a new market emerges that requires different
shipping methods or pricing structures, a company that hasn't
kept up with market trends may lose business to competitors
who have adapted to the new demands.

Major Lean Waste

● Defects
● Overprocessing
● Overproduction

30
 Observations and Recommendations - Product Pricing

Observation Recommendation Impact of recommendation

● Monitor market trends

Failure to adapt to changing market ● Conduct regular surveys and focus groups Ensures relevance and competitiveness in

trends ● Adjust pricing strategy based on customer feedback the market

and market trends

31
Inability to compete with larger companies - Product Pricing

Not inquiring on Packaging services:

FLI can offer specialized packaging services, such as customized crates
or containers for fragile or oversized items. This can not only help to
protect the goods during transit but also differentiate the company
from competitors who do not offer such services.

Not providing Insurance services:

FLI can provide insurance coverage for the goods being transported. This can
provide peace of mind to the customers and help to minimize the risks
associated with shipping goods. By offering this service, the company can
differentiate itself from competitors who do not provide insurance or provide
limited coverage.

Major Lean Waste

● Waiting
● Defects
● Motion

32
 Observations and Recommendations - Product Pricing

Observation Recommendation Impact of recommendation

● Offer customized packaging options Increases competitiveness and attracts

Inability to compete with larger
● Provide insurance coverage customers looking for more than just basic
companies
● Offer shipment tracking services services

33
Insufficient risk management processes- Haulage

Inadequate training for drivers:

It is essential to provide proper training to drivers to ensure that they
are aware of the risks involved in transporting goods and know how to
handle any potential problems. Failure to provide adequate training
can lead to accidents and damage to goods.

Lack of contingency planning:

Haulage must have contingency plans in place to deal with unexpected events
such as accidents, delays, and other disruptions. Without proper planning, the
company may face significant losses and damage to its reputation.

Major Lean Waste

● Skills
● Defects
● Overprocessing

34
 Observations and Recommendations - Haulage

Observation Recommendation Impact of recommendation

Reduced potential for losses and legal

● Conducting regular risk assessments
Insufficient risk management processes liabilities, improved overall business
● Implementing contingency plans
performance

35
Inadequate training for staff- Haulage

Lack of knowledge about regulations:

Transport department staff may not be fully aware of the various
regulations and requirements that apply to their work, such as rules
around weight limits, hazardous materials handling, and driver hours
of service. This could result in non-compliance and potential legal issues
for the company.

Poor communication with customers:

If staff are not trained on how to communicate effectively with customers, they
may struggle to provide timely and accurate information about their shipments.
This could result in customer complaints and loss of business.

Major Lean Waste

● Skills
● Defects
● Waiting

36
 Observations and Recommendations - Haulage

Observation Recommendation Impact of recommendation

● Providing training on new technologies Improved employee performance and job

Inadequate training for staff
● Cross-training employees in different departments satisfaction, reduced errors and turnover

37
 Poor communication between Head Office and subsequent
departments- Haulage
Inaccurate billing:
Haulage does not receive accurate and complete information about the
Lack of coordination:
services provided to the customers from the Head Office, it can result in
The Head Office and the transport department do not
inaccurate billing. This can cause disputes with customers and
have a clear communication plan in place, it can lead to
negatively impact the company's reputation.
a lack of coordination. This can cause confusion among
employees, result in missed opportunities, and
negatively impact the company's performance.

Delayed or missed shipments:

Occasionally, the Head Office fails to communicate the
shipment details, including the pickup and delivery times, to
the transport department in a timely manner, it can lead to
delayed or missed shipments. This can cause inconvenience to
customers and result in financial losses for the company.

Major Lean Waste

● Waiting
● Defects
● Overprocessing

38
 Observations and Recommendations - Haulage

Observation Recommendation Impact of recommendation

Poor communication between Head Improved cross-functional collaboration,

● Implementing regular team meetings
Office and subsequent departments reduced misunderstandings and errors

39
 Lack of standardization in procurement process- Procurement

Variations in purchase orders:

Inconsistent vendor selection criteria:
FLI does not have standardized purchase order
IFLI does not have standardized criteria for selecting vendors. This can
templates or procedures. This can result in variations in
lead to poor quality products, higher prices, and delayed deliveries.
purchase orders. Confusion among vendors and delays
in processing orders can be a result of this.

Inaccurate inventory management:

Accuracy of the inventory is questionable due to lack of
standard procedures. lead to inaccuracies in inventory data.
This can result in overstocking or understocking of items.

Major Lean Waste Inefficient use of resources:

● Inventory Disparate processes can lead to redundant tasks,
● Defects inefficient use of staff time, and unnecessary expenses.
● Overprocessing

40
 Observations and Recommendations - Procurement

Observation Recommendation Impact of recommendation

● Develop a standardized template for procurement

requests

Lack of standardization in ● Establish a standard timeline for procurement Improved consistency and efficiency in the

procurement process process steps procurement process.

● Implement consistent approval processes for all

procurement requests.

41
 Procurement decisions made without clear understanding of
overall strategy- Procurement
Lack of supplier diversity:
FLI doesn’t have a diverse range of suppliers. It may limit the company's
ability to adapt to changing market conditions or customer demands.
Ex: If the company only works with one supplier for a specific product,
and that supplier experiences an issue that causes a delay in deliveries,
it can negatively impact the company's ability to fulfill orders.
Failure to negotiate effectively:
The department does not have a clear understanding of
the company's overall strategy. It may not be able to
negotiate effectively with suppliers which results in
,higher costs and lower-quality products or services.

Purchasing without considering long-term needs:

Procurement department makes purchasing decisions based
solely on immediate needs without considering long-term
needs and overall strategy, which can lead to inefficiencies
and waste.
Ex: purchasing a cheaper but lower-quality product may save
money in the short term, but it may need to be replaced
sooner, ultimately costing more in the long run.

Major Lean Waste

● Inventory
● Defects
● Overprocessing

42
 Observations and Recommendations - Procurement

Observation Recommendation Impact of recommendation

● Clearly define procurement objectives and how they

relate to overall company goals

Procurement decisions made without ● Develop a procurement budget aligned with Greater alignment between procurement

clear understanding of overall strategy company financial goals decisions and company goals and objectives.

● Establish key performance indicators (KPIs) for

procurement activities to measure success.

43
 Heavy reliance on key suppliers- Procurement

Limited negotiation power: Vulnerability to supplier risk:

FLI heavily relies on a few key suppliers, it can limit the procurement Heavy reliance on key suppliers can make the
department's negotiation power. The suppliers may be aware of their procurement department vulnerable to supplier risk. If
importance to the company and use it as leverage to charge higher a key supplier experiences financial difficulties,
prices or dictate unfavorable contract terms. operational disruptions, or other issues, it can impact
the company's ability to provide services to its
customers.

Limited cost savings:

Heavy reliance on key suppliers can limit the procurement
department's ability to achieve cost savings. The suppliers may
not be willing to offer discounts or reduce prices if they know
that they are the only option for the company. This can make
it difficult for the department to achieve its cost-saving goals
and objectives.

Major Lean Waste

● Waiting
● Defects
● Overprocessing

44
 Observations and Recommendations - Procurement

Observation Recommendation Impact of recommendation

● Identify alternative suppliers for critical goods and

services Increased competition and leverage in

Heavy reliance on key suppliers
● Develop a process for evaluating and qualifying new procurement negotiations.

suppliers

45
 Lack of standard operating procedures and guidelines for
shipment consolidation- Shipment Consolidation
Inaccurate shipment documentation:
Safety hazards:
In the absence of standard operating procedures for
Without standard operating procedures and guidelines for
shipment consolidation, employees may not maintain
shipment consolidation, employees may not follow proper safety
accurate shipment documentation. This can cause
procedures. This can result in accidents and injuries to employees,
delays in customs clearance and result in penalties for
as well as damage to the goods being transported.
the company.

Inconsistent labeling and marking:

Without guidelines for labeling and marking of shipments,
employees may not follow consistent labeling and marking
practices. This can lead to confusion among employees and
result in misdirected or lost shipments.

Inconsistent shipment consolidation:

Without standard operating procedures and guidelines for
Major Lean Waste
● Waiting shipment consolidation, employees may consolidate
● Defects shipments in an inconsistent manner. This can result in
● Overprocessing inefficient use of space, increased handling costs, and longer
transit times for the shipments.
46
 Observations and Recommendations - Shipment Consolidation

Observation Recommendation Impact of recommendation

Lack of standard operating procedures ● Develop standard process for consolidating

Ensure consistency and safety in the
and guidelines for shipment shipments
shipment consolidation process.
consolidation. ● Develop guidelines.

47
 Inefficient communication channels resulting in delay in
response time to customer queries- Shipment Consolidation
Slow email response:
Unresponsive phone lines:
The shipment consolidation department relies on email as the
The department does not have enough staff to answer
primary communication channel with customers, a delay in
customer calls and the phone lines are not monitored
response time can occur if emails are not monitored and replied to
regularly. This can lead to delays in response time.
promptly. This can result in missed opportunities and a negative
Customers may be frustrated and lose confidence in the
impact on the company's reputation.
company's ability to handle their shipments.

Lack of real-time tracking:

The department does not have a system in place to provide
customers with real-time tracking information. The customers
may need to contact the department for updates. This can
lead to a high volume of customer queries, resulting in a delay
in response time.

Inadequate training:
Staff, adequately trained in customer service was not evident.
Major Lean Waste
● Skills This can lead to a delay in response time. Staff may not know
● Defects how to handle difficult customer queries or may not have the
● Waiting necessary information at hand to provide a prompt response.

48
 Observations and Recommendations - Shipment Consolidation

Observation Recommendation Impact of recommendation

● Implement a customer portal to allow customers to

track their shipments and communicate with the

Inefficient communication channels department

resulting in delay in response time to ● Establish a dedicated customer service team to Increased customer satisfaction and loyalty.

customer queries. handle customer queries

● Provide regular updates to customers on their

shipment status.

49
 Poor inventory management- Warehouse

Inaccurate inventory records:

Inefficient order fulfillment:
Due to improper tracking of products, errors in manual record-keeping,
Products are not properly organized or are difficult to
inaccurate inventory records for seen. . Inaccurate inventory records
locate, due to inventory management not in place. it
can lead to incorrect order fulfillment, delayed shipments, and
can lead to delays in order fulfillment. This can result in
increased costs due to the need for manual inventory audits.
dissatisfied customers and lost revenue for the
company.

Inefficient use of warehouse space:

Poor inventory management leading to inefficient use of
warehouse space was evident.

Major Lean Waste

● Inventory
● Transportation
● Motion

50
 Observations and Recommendations - Warehouse

Observation Recommendation Impact of recommendation

Improved accuracy and efficiency of

Poor inventory management ● A cloud-based inventory management system
inventory tracking

51
 Ineffective order management- Warehouse

Lack of communication:
Inefficient picking and packing:
The department does not have clear communication with other
The warehouse does not have an efficient system in
departments, such as sales. This can lead to mismanaged orders. This
place for picking and packing orders. This can lead to
can cause confusion among employees, delays in order processing, and
delays in order processing and shipment. This can
negatively impact customer satisfaction.
negatively impact customer satisfaction and result in
lost sales opportunities.

Poor inventory control:

There wasn’t an effective system in place to manage
inventory levels. This can lead to overstocking or
understocking of products. This can result in lost sales
opportunities, increased storage costs, and negatively
impact the company's profitability.

Order inaccuracies:
Major Lean Waste Order inaccuracies in order processing were evident. This
● Waiting can cause delays in shipments, incorrect product
● Defects deliveries, and negatively impact customer satisfaction.
● Inventory

52
 Ineffective order management- Warehouse

Lack of communication:
Inefficient picking and packing:
The department does not have clear communication with other
The warehouse does not have an efficient system in
departments, such as sales. This can lead to mismanaged orders. This
place for picking and packing orders. This can lead to
can cause confusion among employees, delays in order processing, and
delays in order processing and shipment. This can
negatively impact customer satisfaction.
negatively impact customer satisfaction and result in
lost sales opportunities.

Poor inventory control:

There wasn’t an effective system in place to manage
inventory levels. This can lead to overstocking or
understocking of products. This can result in lost sales
opportunities, increased storage costs, and negatively
impact the company's profitability.

Order inaccuracies:
Major Lean Waste Order inaccuracies in order processing were evident. This
● Waiting can cause delays in shipments, incorrect product
● Defects deliveries, and negatively impact customer satisfaction.
● Inventory

53
 Observations and Recommendations - Warehouse

Observation Recommendation Impact of recommendation

● Order processing software

Improved order accuracy and faster order
Ineffective order management ● Automated order routing
processing times
● Real-time order tracking

54
 Lack of Budgeting Processes- Finance Department
Forecasting:
Without a budgeting process, it can be
Cash flow management:
challenging to forecast revenue and expenses
Without a budgeting process, it can be difficult to manage
accurately. This can lead to inaccurate
cash flow effectively. This can lead to a lack of liquidity,
financial projections, making it difficult for the
resulting in delayed payments to vendors or suppliers, and
company to plan for the future and make
negatively impacting the company's credit rating.
informed decisions.

Missed opportunities:
A lack of budgeting processes can result in
missed opportunities.
Ex: FLI may miss out on potential revenue
streams or cost-saving initiatives because there is
no budget allocation for them.

Inefficient resource allocation:

Accountability:
Ex: Without a budget allocation for training or
technology upgrades, employees may not have access to It can be challenging to hold departments and employees
the tools they need to do their jobs efficiently. This can accountable for their spending. This can result in a lack of
result in wasted time and decreased productivity. financial responsibility and a lack of ownership over budget
Major Lean Waste management.
● Waiting
● Defects
● Overprocessing

55
 Observations and Recommendations - Finance Department

Observation Recommendation Impact of recommendation

● Utilize Budgeting Software

● Increase Collaboration Among Departments

More Accurate Financial Planning and
Lack of Budgeting Processes ● Implement Rolling Forecasts, Conduct Regular
Improved Decision Making
Budget Reviews

● Conduct cashflow meetings

56
 Financial data is not being analyzed effectively to identify
trends and patterns in revenue and expenses- Finance Department
Missed revenue opportunities:
If the finance department fails to analyze sales data to identify trends Overspending:
and patterns in customer behavior, it can result in missed revenue If the finance department does not track and analyze
opportunities. expenses data, it can result in overspending.
Ex: The finance department does not track which services or routes are Ex: The department does not analyze vendor invoices to
most profitable. So the company may not be able to adjust pricing or identify cost-saving opportunities or monitor budget
marketing strategies to capitalize on those opportunities. performance, FLI may continue to overspend on certain
expenses without realizing it.

Cash flow management:

If the finance department does not analyze cash flow data to
identify patterns and trends, it can be difficult to manage cash
flow effectively. This can lead to a lack of liquidity, resulting in
delayed payments to vendors or suppliers, and negatively
impacting the company's credit rating.

Compliance issues:
If the finance department does not analyze financial data to
Major Lean Waste ensure compliance with regulations and laws, it can result in
● Waiting compliance issues.
● Defects Ex: The department does not track expenses related to
● Overprocessing
regulatory compliance, the company may be at risk of fines or
legal action. 57
 Observations and Recommendations - Finance Department

Observation Recommendation Impact of recommendation

● Use your database to identify cost savings

opportunities in shipping routes

Financial data is not being analyzed Improved analysis of financial data can lead
● Analyze revenue trends to identify new sales
effectively to identify trends and to cost savings, revenue growth, and
opportunities
patterns in revenue and expenses. improved decision-making.
● Use data to forecast future expenses and adjust

budgets accordingly.

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 TECHNOLOGY GAP
ANALYSIS AND
RECOMMENDATIONS
 LIMS - Inhouse built software solution

User friendly application:

LIMS, built, modified and is being used at freight Links is user friendly
and supports its current operation.
Architectural and technology barriers:
Industry has become more competitive in recent years
and the existing application provides less support to
gain competitive advantage with its architecture and
technologies.

Built on early technologies:

LIMS is Built on a desktop technology -Delphi
(Delphi is a specialised language and difficult to find
resources)

Enhance or create a new software solution

Recommendation Trying to upgrade or enhance is not recommended due to

technical barriers.
Select a Cloud
application or SAAS Creating a new application for the freight industry is not
(Software as a Service) recommended because of the initial investment, R&D and
integrations required with the other stakeholders
60
 Recommendation for selecting a new logistic software
solution (Evaluation Criterias)

● Functionality: The software should ● Integrations: Cloud application that is ● Scalability: The software should be able
provide all the necessary features and integrated with stakeholders and feeds to handle the needs of FLI as it grows
tools for all core business functions in live data to the system (Airlines /
and expands. We recommend a cloud/
managing freight, including tracking Shipping Lines / Authorities/ Clients).
shipments, generating invoices, Freight is an industry where many SAAS application which has a strong R&D
managing inventory, stakeholders get involved in a business focus and a budget.
scheduling,deliveries, Accounting and operation. Live information updates gain
Finance etc. a competitive advantage for the
organisation to provide a quality service
to its clients.

61
Recommendation for selecting a new logistic software
solution (Evaluation Criterias)

● Integrity of Information - When
information is entered from one screen
that information should be able to reuse
throughout the processes.
● Accessibility - software solutions should
be accessible for the users to gain
competitive advantage in the market.
Cloud applications with 24/7 accessibility
,for users and mobile accessibility for
customers would be an added
advantage.
● Security: The software should have
strong security measures in place to
protect sensitive data, such as shipment
details, customer information, and
financial data.

● Ease of Use: The software should be

intuitive and easy to use, with a
user-friendly interface that requires
minimal training.

62
Recommendation for selecting a new logistic software
solution (Evaluation Criterias)
● Customer Support: The software
provider should offer reliable customer
support, including phone and email
support, online documentation, and
training resources.
● Cost: The software should be ● Support in termination - In case FLI
cost-effective, with transparent pricing decides to move to another application,
and no hidden fees. It should also offer a ability to get data from the cloud
good return on investment, with the
potential to improve efficiency and
reduce costs in the long run.
● Ability to create business insights by
analysing the data through tools like
power BI -
Ex : Ability to review and monitor
transaction level
Productivity
63
CURRENT STATE OF PROJECT
ITEM DELIVERABLE STATUS

1 Human resources strategy for FLI

2 Process review and BPR Recommendations

3 Technology GAP analysis and Recommendations

4 HR roadmap implementation

65
THANK YOU