HANOI UNIVERSITY OF SCIENCE AND TECHNOLOGY

SCHOOL OF ECONOMICS AND MANAGEMENT

-------------------

INTERNSHIP REPORT II

TOPIC: ANALYZE INVENOTY AND WAREHOUSE

MANAGEMENT PERFORMANCE AT BEE SUPPLY
CHAIN SOLUTIONS COMPANY LIMITED
Instructor : Ph.D Do Tien Minh
Class : EM-NUK64
Name student : Le Van Son
ID student : 20198044

Hanoi, 2023
 ACKNOWLEDGEMENT

In the contemporary era, Logistics has been significantly developing in many

countries, playing a crucial role in the whole supply chain. “Logistics is the process of
planning, implementing, and controlling the movement and storage of raw materials, in-
process goods, finished goods, and related information from the procurement of raw
materials. until it is consumed, in order to satisfy consumer demand”. In simple terms,
Logistics is a chain of many activities revolving around goods such as: packing,
packaging, storing goods, warehousing, preservation, transportation of goods...
Businesses can save considerable savings. including transportation costs, avoiding the
"price tag" of products and increasing profits if implementing effective Logistics
activities.

After 3 years of studying and be trained by many excellent professionals of Hanoi

University of Science and Technology, I have learned a variety of valuable theories and
case studies related to my major. And the internship is totally a precious opportunity to
apply what I have learned into practice. Moreover, hands-on-training is the best way to
improve my critical thinking skills and communication skills when it comes to practical
situation. Though BEESCS is a start-up company, it represents for entrepreneurship spirit
from CEO to each and every individual. The company is always willing to create the best
conditions for employees to bring out their full potential, these factors are the reason I
decided to apply and challenged myself.

My first and deepest thanks go to all enthusiastic teachers in Hanoi University of

Science and Technology, thanks to your dedication to teaching and cultivating
knowledge, I have grown over time professionally. subject and social knowledge.
Secondly, I would like to express my deepest appreciation to Mrs. Thanh, Mrs. Luyen
and all enthusiastic supporters from BEESCS. They are the ones who are always willing
to help me to complete the internship report. I admit that the working space here is
absolutely fascinating when all staffs dedicated their effort to the development of this
company.

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 And now, I am confident in applying theory and practice. Through this, I would
also like to thank Mr. Do Tien Minh for his enthusiastic guidance and guidance to help
me complete this internship report and problems. And I sincerely thank you, Bee Supply
Chain Solution Co. Ltd wholeheartedly helped me during my internship.

The report includes three main parts:

Chapter 1: Fundamental theory of Inventory and Warehouse Management.

Chapter 2: Analyze the Inventory & Warehouse Management Performance at BEESCS

Chapter 3: Guideline and recommendation for inventory and warehouse management of

BEESCS

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 TABLE OF CONTENTS
CHAPTER 1: BASIC THEORY OF INVENTORY AND WAREHOUSE
MANAGEMENT.............................................................................................................9
1.1 Warehouse Management....................................................................................9
1.1.1. Introduction of Warehousing.........................................................................9
1.1.2. Types of Warehouses...................................................................................12
1.1.3. Location of Warehouses...............................................................................13
1.1.4. Function of the Warehouse..........................................................................14
1.1.5. Movement (Material Handling)...................................................................15
1.1.6. Storage (Inventory holding).........................................................................16
1.2. Warehouse Layout............................................................................................18
1.2.1 The Important of Warehouse Layout Design...............................................18
1.2.2. Components of a warehouse layout.............................................................18
1.2.3. Types of Warehouse Layout.........................................................................19
1.3. Storage Systems................................................................................................21
1.4. Tracking Inventory...........................................................................................25
1.5. Warehouse Procedure Management...............................................................26
1.6. Inventory Management and Control...............................................................27
1.6.1. Introduction of Inventory.............................................................................27
1.6.2. Role of Inventory and Inventory Control.....................................................28
1.6.3. Inventory Functions.....................................................................................28
1.6.4. Types of Inventories.....................................................................................29
1.7. Inventory and Warehouse Management Performance..................................30
CHAPTER 2: ANALYZE INVENTORY & WAREHOUSE MANAGEMENT
AND PERFOMANCE AT Bee Supply Chain Solution Company Limited...............31
2.1. BEESCS Warehouse.........................................................................................31
2.1.1. Location.......................................................................................................31
2.1.2. Types of Warehouses...................................................................................32
2.1.3. Warehouses Layout......................................................................................33
2.1.4. Warehouses Service Price............................................................................34
2.1.5. Types of Inventories.....................................................................................35

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 2.2. Storage System in BEESC................................................................................41
2.3. Warehouse Processes at Bee Supply Chain Solutions Company Limited....44
2.3.1. Process of Check and Stock-In Goods.........................................................45
2.3.2. Process of arranging and monitoring goods in the warehouse....................53
2.3.3. Process of handling damaged and missing goods........................................55
2.3.4. Process of picking and packaging goods.....................................................57
2.3.5. WMS Procedure..........................................................................................58
2.4. General Evaluation and Assessment of warehouse procedures...................61
2.4.1. Assessment of current number of Good Issues for business at BEESCS
Warehouse – Branch Hanoi......................................................................................61
2.4.2. Types of errors in receiving goods process at Warehouse...........................63
2.4.3. Types of errors in arranging and monitoring process at Warehouse...........65
2.4.4. Types of errors in Picking and Packaging Process at Warehouse...............67
2.4.5. Fishbone Analysis about error types............................................................70
CHAPTER 3: GUILDLINE AND RECOMMENDATION FOR INVENTORY
AND WAREHOUSE MANAGEMENT OF BEESCS................................................74
3.1. Guideline to improve inventory and warehouse management in Bee Supply
Chain Solutions Company Limited...........................................................................74
3.2. Recommend for Warehouse Layout................................................................75
3.3. Recommendation for Inventory and Warehouse Management in BEESCS
...................................................................................................................................... 77
3.3.1. Improving material and technical infrastructure in the warehouse................77
3.3.2. Organizing workforce development.................................................................77
3.3.3. Development IT system....................................................................................78
3.3.4. Improve coordination between warehouse and transportation.......................79
CONCLUSION...............................................................................................................80

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 LIST OF TABLES

Table 2.1: Price List for Warehousing services at BEESCS.............................................34

Table 2.2: List of Customers using BEESCS Service......................................................35
Table 2.3: List of some Inventory Items...........................................................................36
Table 2.4: Apply EOQ Model for Customer....................................................................38
Table 2.5: Vertical Storage System..................................................................................43
Table 2.6: Classify eligible and ineligible goods..............................................................51
Table 2.7: Regulation on the probability of goods inspection before import....................52

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 LIST OF FIGURES

Figure 1.1: Warehouses and Loading Dock.......................................................................9

Figure 1.2: Four Categories of Warehouse Costs.............................................................10
Figure 1.3: Sequence of Warehousing Decisions.............................................................11
Figure 1.4: Material Movement in Warehouse.................................................................15
Figure 1.5: Components of Information Transfer.............................................................17
Figure 1.6: U-Shaped Warehouse Layout........................................................................19
Figure 1.7: I-Shaped Warehouse Layout..........................................................................20
Figure 1.8: L-Shaped Warehouse Layout.........................................................................21
Figure 1.9: Block Stacking Storage..................................................................................22
Figure 1.10: Drive-in and drive-through racking Storage.................................................23
Figure 1.11: Push back Racking Storage..........................................................................23
Figure 1.12: Warehouse Equipment.................................................................................24
Figure 1.13: Barcode........................................................................................................25
Figure 1.14: Function of Inventory..................................................................................28
Figure 2.1: Warehouse Location in Hanoi........................................................................31
Figure 2.2: Warehouse Layout.........................................................................................33
Figure 2.3: Proportion of Inventory Units by Customers.................................................37
Figure 2.4: The classic wooden pallet..............................................................................39
Figure 2.5: Drive-Thru Rack............................................................................................39
Figure 2.6: The electronic scale.......................................................................................40
Figure 2.7: Forklift truck..................................................................................................41
Figure 2.8: Storage Label.................................................................................................41
Figure 2.9: Storage System..............................................................................................42
Figure 2.10: General Warehouse Procedure.....................................................................44
Figure 2.11: Check and Stock-In Process.........................................................................45
Figure 2.12: Customer Good Receipt...............................................................................47
Figure 2.13: Check the appearance and take pictures of the incoming container/truck....48
Figure 2.14: Goods Inspection Appearance......................................................................49

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Figure 2.15: Procedures for arranging and monitoring goods..........................................53
Figure 2.16: Process of handling damaged and missing goods........................................55
Figure 2.17: Process of picking and shipping goods........................................................57
Figure 2.18: WMS Process...............................................................................................58
Figure 2.19: Warehousing Activity on WMS...................................................................59
Figure 2.20: Receive Form Creating................................................................................59
Figure 2.21: Put away and Storage...................................................................................60
Figure 2.22: Pick Goods to fulfill customer order............................................................60
Figure 2.23: Shipping Form Creating...............................................................................61
Figure 2.24: Number of Goods Issues of a Customer in 2023 January............................62
Figure 2.25: Pareto chart for error types...........................................................................64
Figure 2.26: Pareto Chart for error types in Arranging and Monitoring Goods Process...66
Figure 2.27: Pareto Chart for error types in Picking and Packaging Process....................68
Figure 2.28: Fishbone Analysis on Warehouse Performance...........................................70
Figure 2.29: WMS Error and Wrong Exported Analysis..................................................71
Figure 2.30: Warehouse Procedure Complication............................................................72
Figure 2.31: Wrong information about the issue date.......................................................72
Figure 3.1: Warehouse Layout – L-shaped Layout..........................................................75

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 CHAPTER 1: BASIC THEORY OF INVENTORY AND WAREHOUSE
MANAGEMENT

1.1 Warehouse Management

1.1.1. Introduction of Warehousing

Warehousing refers to the activities involving storage of goods on a large-scale in a

systematic and orderly manner and making them available conveniently when needed. In
other words, warehousing means holding or preserving goods in huge quantities from the
time of their purchase or production until their actual use or sale.

Warehouses play a significant role in the distribution of goods along the entire supply
chain, from raw materials and work in progress to finished goods. It is a crucial
component of the supply chain network in which it operates, and as a result, its roles and
goals must be in line with those of the supply chain. It is not a standalone activity, and the
entire supply chain network as a whole cannot have it as a weak link. Warehouses are
used by manufacturers, importers, exporters, wholesalers, transport businesses, customs,
etc.

Figure 1.1: Warehouses and Loading Dock

Because warehousing requires expensive facilities and equipment as well as human

resources, the effectiveness of the supply chain as a whole is directly impacted. The

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achievement of necessary customer service levels and the maintenance of stock integrity
will be compromised as a result of improper design or management of the warehouse
systems, which will also lead to unnecessarily high costs.

Categories of Warehouse Costs

Handling Storage

Warehouse
Cost
Operation General Administrative
Administration Expenses

Figure 1.2: Four Categories of Warehouse Costs

The uses of Warehouse

- Seasonal Production: Although agricultural products are harvested during

specific times of the year, they are consumed or used all year long. As a result, these
commodities need to be properly stored or warehoused, where they can be supplied as
and when needed.
- Seasonal Demand: There are some products that have a seasonal demand, such as
woolen clothing in the winter or umbrellas in the rainy season. To meet the seasonal
demand, these products are produced all throughout the year. Therefore, it is necessary to
keep these items in a warehouse so that they are accessible when needed.
- Large-scale Production: In the case of manufactured goods, production now
occurs to satisfy both current and future product demand. To take advantage of the
advantages of large-scale production, which is more cost-effective, manufacturers also
produce goods in enormous quantities. Therefore, until they are cleared by sales, the
finished goods, which are produced in large quantities, need to be properly stored.

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 - Quick Supply: A few specific locations produce both industrial and agricultural
goods, which are then consumed all over the nation. Therefore, it is crucial to keep these
items on hand close to where they will be consumed so that consumers can access them
right away when they are needed.
- Continuous Production: In order for factories to continuously produce goods,
there must be a sufficient supply of raw materials. Therefore, it is necessary to maintain a
sufficient amount of raw material stock in the warehouse to ensure continuous
production.
- Price Stabilization: It is necessary to keep enough stock in the warehouses in
order to keep the price of the goods on the market at a reasonable level. The market price
of goods may rise if there is a shortage of them. Again, excessive production and supply
may result in a decrease in product prices. By ensuring that the supply of goods is
balanced, warehousing helps to stabilize prices.

Warehouse Selection

Physical distribution and warehouse management are crucial supply chain network
activities for flow control. Regardless of how effectively the aforementioned activities
have been carried out, these activities have a significant impact on how well the overall
level of customer service is achieved.

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 Figure 1.3: Sequence of Warehousing Decisions

Selecting suitable warehouses is extremely important for every business since they
contribute to their operation. An owner has responsibility of warehouse selection which
builds a private warehouse or rent this service from other company. This decision
depends on types of business they are working in, which market they are involved in.
Therefore, it is necessary for them to carefully calculate the purpose of warehousing
products. Both private warehouses and public ones have their pros and cons, which vary
from the number of warehouses and locations. When finishing the first stage, they must
determine how many warehouses that they want to build or rent. Centralized warehousing
is when a company elects to have all inventory in a single warehouse or a few major hubs
that cover a large region. Decentralized warehousing is the opposite–a company elects to
have small amounts of inventory spread across many different warehouses.

In the following stage, the location of warehouse and its size or layout must be taken into
consideration. An appropriate facility will optimize costs and reduce the transport time
effectively. As all stages are finished, the final step is managing the warehouse by sorting

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products in different bins to control the inventory. The following points to be ascertained
during the progression of making warehousing decisions are

1.1.2. Types of Warehouses

The different types of warehouses may be classified as follows:

- Private Warehouses
- Public Warehouses
- Government Warehouses
- Bonded Warehouses
- Co-operative Warehouses

Private Warehouse: are owned and operated by manufacturers or traders for their own
inventory. They are built close to fields, business hubs, or factories and offer appropriate
amenities for the type of goods stored. Farmers, wholesalers, and retailers are among the
main users of these warehouse.

Public Warehouse: Public warehouses store goods for the general public who pay rent
to store their goods. These warehouses are owned by individuals, companies,
partnerships, or other entities and require a government license to operate. The
government governs their functions and activities, and manufacturers, wholesalers,
exporters, importers, and government organizations mainly use them.

Government Warehouse: Government warehouses are owned, managed, and controlled

by the central, state, or local government. They store government goods but can also be
rented by private entities. These warehouses may also serve as storage for food or
agricultural products.

Bonded Warehouse: Bonded warehouses are owned by public and private organizations
and require a government license for private warehouses. Imported goods that have not
had the appropriate import duties paid are kept in bonded warehouses near ports owned
by dock authorities. Importers cannot remove goods until duties are paid.

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Co-operative Warehouse: Co-operative societies own, operate, and maintain control
over these warehouses. For the most affordable prices, they offer their society's citizens
warehousing facilities.

1.1.3. Location of Warehouses

All customers or potential customers cannot be equally close to the seller. The movement
of goods from seller to buyer is also severely constrained by space and time. Therefore, it
is crucial to consider where the seller's production and distribution facilities are in
relation to the customers' locations.

It is not easy to determine the most cost-effective location and size for distribution
warehouses. It can be necessary to employ a linear programming transportation method,
which is frequently enhanced by computer output. Factors like accessibility to ports,
railroad lines, the condition of the roads, the availability of power, etc., become crucial
concerns in circumstances where warehouses store finished goods. In addition to the
aforementioned criteria, the warehouses should be built with enough flexibility to
accommodate future growth requirements.

The following considerations determine the location of a warehouse:

- Market service area and cost of distribution from the warehouse to the market
service area.
- Satisfaction of transport requirements and facilities available in the form of rail,
link roads and road vehicles.
- Transportation rates prevailing in the area and distribution costs per unit.
- Availability of power, water, gas sewage disposal and their cost.
- Labor supply and labor costs in the area.
- Industrial relations climate and labor productivity.

1.1.4. Function of the Warehouse

A warehouse is a location with the specific purpose of providing effective storage for
resources and goods. Almost all types of businesspeople and organizations, including
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manufacturers, wholesalers, exporters, importers, etc., use warehouses. Warehouses are
necessary for a variety of businesses, including the transportation and customs industries.
Warehousing has three basic functions:

- Movement
- Storage
- Information transfer.

1.1.5. Movement (Material Handling)

S
h
g
n
ip
k
c
s-de
R
v
ro
Cfti
a
T
u
P
/Oltw
y

Figure 1.4: Material Movement in Warehouse

Receiving: this involves physically unloading inbound transport, inspecting,

documenting receipts, and determining where to store the received products in the
warehouse.

Transfer or Put away: Binning and storing the goods in their respective locations,
including the temporary locations, from the receiving docking area.

Order picking / Selection: To fulfill client orders, products are chosen from order
picking stock in the necessary quantities and at the proper times.

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Cross-docking: Transfer goods from receiving (incoming truck to shipping dock,
outgoing truck) immediately.

Shipping: The chosen items are gathered and packaged in accordance with the
customer's order specifications. It is delivered in accordance with customer orders and
designated locations.

1.1.6. Storage (Inventory holding)

Temporary storage: emphasizes the movement function of the warehouse and includes
only the storage of product necessary for basic inventory replenishment. Temporary
storage is required regardless of the actual inventory turnover. The extent of temporary
storage depends on the design of the logistics system and the variability experienced in
lead time and demand. A goal of cross-docking is to utilize only the temporary storage
function of the warehouse.

Semipermanent storage: is the storage of inventory in excess of that required for normal
replenishment. This inventory is referred to as buffer or safety stock. The most common
conditions leading to semipermanent storage are:

- Seasonal demand,
- Erratic demand,
- Speculation or forward buying, and
- Special deals such as quantity discounts.

Information Transfer

Information transfer, the third major function of warehousing, occurs simultaneously with
the movement and storage functions. Not only does the movement and storage of goods
have to be managed in warehousing, but the information that goes along with the
movement and storage also has to be managed. A successful warehouse business depends
on this kind of information, as well as statistics on space usage, customer and personal
information, and other vital information.

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 Transaction Management

Information Transfer Inventory Balance Accuracy

Warehouse Capacities

Figure 1.5: Components of Information Transfer

Warehouse Operations – Centralized or Decentralized

In a multiple warehouse, the warehousing operations can either be centralized or

decentralized.

In decentralized warehousing operations, each warehouse is considered as a separate

entity. Therefore each warehouse will have a separate safety stock, there will be orders
from the lower warehouse to the upper warehouse and there will be in-transit stocks.
Each warehouse will optimize inventory individually. The advantages of such a system
are:

- This prevents obsolescence and also prevents accumulation of surplus material.

- This offers service where it is needed.

Alternatively, in a centralized system of warehousing operations, order processing,

storing of safety stocks and control stock movements will be done centrally by a central
warehouse. The important requirement for this centralized system is a well-established
information system. This system has the following advantages:

- Orders for multiple items on a single source can be bunched together.

- There will be a reduction in safety stock.
- Similarly total inventory cost is also reduced.

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1.2. Warehouse Layout

A warehouse layout is a planned layout of a warehouse intended to simplify operations as

a whole. The production and distribution process should flow more smoothly with the
correct arrangement. It is tremendously difficult to oversee a warehouse's entire
workflow. For this reason, several businesses use warehouse management software to
streamline the procedure. Tools for warehouse management make it easier to trace the
movement of goods between locations and to see how warehouse operations are generally
performing.

1.2.1 The Important of Warehouse Layout Design

- Optimize warehouse space: The aim is to maximize the use of available space to
expedite processes and manage inventory efficiently.
- Increase productivity: The ideal layout design streamlines processes, reduces
errors or bottlenecks, and ensures efficient order fulfillment.
- Utilize labor and budgets effectively: Understanding available resources, such as
materials and employee placement, is crucial to choosing a cost-effective plan and
distributing resources efficiently.
- Improve overall warehouse management: A well-designed layout creates an
organized environment for inventory management, speedy restocking, fair
treatment of staff, and successful order fulfillment.

1.2.2. Components of a warehouse layout

A warehouse design must consider a few key components. These spaces are used to store
inventory, arrange stock, get things ready for shipping, and get things in that need to be
put in the warehouse system.

Each warehouse flow has 5 main components it houses:

- Dynamic storage holds all inventory that doesn’t have a fixed warehouse
location. Items contained here are usually ones with high demand that need to be

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available closer to the packing areas. Because supply and demand are ever-changing, so
are the contents of dynamic storage.
- Static storage holds all inventory products that have a specific location within the
warehouse. This storage area has a definitive organization method and items within it are
rarely moved around. Items are usually organized on racking systems to stack and fit
materials in the warehouse storage space provided.
- Staging area is used to address any incoming or outgoing packages. Before a
package is shipped, staging is used to pack those materials and prepare them to be picked
up from the warehouse. When a package is received, staging is used to unbox the items
and determine where they should be placed within the warehouse inventory system.
- The shipping area takes completed order packages and loads them onto shipping
trucks to be delivered to customers or retailers.
- The receiving area is where staff can unload incoming trucks, admit the items
received, and record packages as they arrive at the warehouse.

1.2.3. Types of Warehouse Layout

U-shaped warehouse Layout: is the most common of the three. It has been recognized
as the best layout for warehouse beginners. All components are arranged in a semicircle
with shipping and receiving on parallel sides and storage in the middle.

Figure 1.6: U-Shaped Warehouse Layout

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The U shape is used to keep major warehouse traffic flow separate and streamlined.
Keeping the incoming and outgoing materials on parallel sides of the operation helps to
avoid bottlenecks. This flow of goods is also helpful in minimizing the available space
necessary. With both the entrance and the exit sharing the same side of the building, less
space is needed for packages, and employees can quickly move products between
receiving and shipping.

I-shaped warehouse layout: is favored by large corporations with bigger warehouses.

This is because larger companies typically experience higher production volume and the I
shape is valuable for its clear in and out workflow. Receiving to shipping and vice versa
flow directly in an I-shaped warehouse. This configuration is thought to maximize
optimization because it makes use of the entire length of the warehouse, organizes similar
products into an assembly line, and reduces bottlenecks by preventing back and forth
movements.

Figure 1.7: I-Shaped Warehouse Layout

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L-shaped warehouse layout: is considered the least common of the flow types. Its
configuration is very unusual and is generally chosen to specifically accommodate an L-
shaped building. The L shape features the shipping area on one side and the receiving on
the adjacent side at a 90-degree angle. The L-shaped flow and I-shaped flow are
relatively similar in their advantages.

Figure 1.8: L-Shaped Warehouse Layout

The L shape also minimizes congestions by avoiding back and forth movement and
effectively separates products with inbound and outbound docks on opposite sides. The
most significant disadvantage of the L-shaped design is how much space is needed to run
this flow effectively.

1.3. Storage Systems

1. Block Stacking

Block storage does not use any storage equipment. Loaded pallets are placed directly on
the floor and built up in stacks, one pallet on top of another to a maximum stable height.

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The pallet loads must be capable of carrying the superimposed pallets, and the top of each
load should be flat enough to provide a stable base for the next pallet.

Block stacking is suitable for that part of the product range where there are few product
lines, each with high stock level, and where very strict FIFO (first-in-first-out) movement
of stock is not required. The advantages are good use of area, flexibility to change the
layout of the blocks and quick to stock for rapid throughput.

Figure 1.9: Block Stacking Storage

2. Drive-in and drive-through racking

There should only be one product line in each row, and the effective utilization of the
pallet positions is about 70%. The racking structure supports the weight of the pallets, so
this system is suitable for high stock product lines, where strict FIFO (first-in-first-out)
movement is not required, but where the pallet loads are not strong enough or of regular
enough shape to carry superimposed loads.

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 Figure 1.10: Drive-in and drive-through racking Storage

3. Push back Racking

This type of racking is a comparatively recent development. Like-drive-in racking it

gives high-density storage and can be built to any height up to the maximum lift height of
the lift trucks accessing it. Pallets can be stored up to about four deep in the racking, on
either side of the access aisle. There should be no mix of product lines in any one lane,
but there can be between the lanes in any row.

Figure 1.11: Push back Racking Storage

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Warehouse Equipment

Warehouse equipment refers to the tools, machines, and devices that are used in a
warehouse to help with the movement, storage, and transportation of goods. Some
examples of warehouse equipment include:

- Forklifts
- Conveyor belts
- Shelving
- Loading dock equipment
- Packaging equipment
- Material handling equipment

Figure 1.12: Warehouse Equipment

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1.4. Tracking Inventory

Efficiently run businesses require many operations to flow seamlessly and without
hindrance. Automatic Identification or "barcodes", as the industry is more often referred
to, makes these steps more efficient and accurate. A barcode does not change how a
business operates, but it makes procedures faster and more accurate, providing useful
management information in a timely manner. Barcodes can be employed in virtually all
organizations and all professions to increase the productivity, efficiency, and accuracy of
specific business processes.

Figure 1.13: Barcode

A barcode is simply a set of symbols used to represent alpha-numeric information.

Basically, instead of seeing the number "1", or the letter "A", people would see a series of
bars, both fat and thin, used to represent that number. The amount of data that can be
encoded in a linear barcode symbology is more limited than that of a 2-D barcode
symbology. Each item stored in warehouse will have unique SKU to control the
inventory.

Benefits of Bar coding:

- Accuracy: Bar coding increases accuracy by reducing the likelihood of human

errors from manual entry.

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 - Ease of use: Barcodes are easy to use as long as the appropriate hardware and
software components are in place to maximize the process of automatic data
collection.
- Timely feedback: Bar coding promotes timely feedback of data captured in real
time, enabling decisions to be made from current information.
- Improved productivity: Barcodes improve productivity in that many manual
activities and tasks become automated, enabling resources to be utilized in other
ways to increase efficiencies.
- Barcode technology can be translated into three primary functions: tracking,
inventory management, and validation.

1.5. Warehouse Procedure Management

Warehouse procedure management refers to the process of managing the operations and
activities of a warehouse in a systematic and efficient manner. This involves developing
and implementing standard procedures and processes for receiving, storing, handling, and
shipping goods within the warehouse.

- Develop standard operating procedures (SOPs): This involves creating step-by-

step guidelines for each task performed in the warehouse, from receiving goods to
shipping them out. SOPs should cover safety procedures, quality control checks,
and other important details.
- Train employees: Once SOPs have been created, it's important to train employees
on how to follow them. This includes training on safety protocols, equipment uses,
and quality control procedures.
- Implement inventory management systems: Accurate inventory management is
crucial for a well-functioning warehouse. Implementing an inventory management
system can help keep track of inventory levels, identify slow-moving items, and
prevent stockouts.

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 - Optimize warehouse layout: The layout of the warehouse can have a big impact on
efficiency. By organizing products in a logical and easy-to-access manner,
warehouse operations can be streamlined and made more efficient.
- Utilize technology: There are many technologies available to help improve
warehouse operations, such as barcode scanners, RFID systems, and warehouse
management software. Utilizing these tools can help automate tasks, improve
accuracy, and speed up operations.
- Regularly review and improve procedures: As the warehouse evolves and new
challenges arise, it's important to regularly review and update warehouse
procedures to ensure they remain effective and efficient.

1.6. Inventory Management and Control

1.6.1. Introduction of Inventory

Inventory is a modern trend. To avoid stockout in business, companies carry inventory

both for raw materials and finished goods. And Inventory Management can be defined as
the sum total of those related activities essential for the procurement, storage, sale,
disposal, or use of material. Utilities are created in goods when the right product is
available at the right place, at the right time, at the right quantity and is available to the
right customer. Inventory management deals with all these problems, placing importance
on the quantities of goods needed.

Inventory managers have to keep stock when required and utilize available storage space
resourcefully, so that the stocks do not exceed the available storage space. They are
responsible in maintaining accountability of inventory assets. They have to meet the set
budgets and decide upon what to order, when to order, how to order so that stock is
available on time and at an optimum cost. Inventory managers have acknowledged that
some of these objectives are contradictory; but their job is to achieve an economic
balance between these conflicting variables. But to achieve this economic balance, a clear
understanding of many interconnected variables is required i.e. functions, types of costs,

27
problems etc. The following sections provide an insight into these variables. Further, it
elaborates upon various aspects of inventory control in physical distribution systems.

1.6.2. Role of Inventory and Inventory Control

IN THE SUPPLY CHAIN

Inventory exists in the entire supply chain because of disparity between supply and
demand. This disparity is intentional at a steel manufacturer where it is economical to
manufacture in large lots that are then stored for future sales. The disparity is also
intentional at a retail store where inventory is held in anticipation of future demand. An
important role that inventories plays in the supply chain is to increase the quantity of
demand that can be satisfied by having product ready and available when the customer
wants it. Another significant role of inventory is to optimize cost by exploiting economies
of scale that may exist during both production and distribution.

IN THE COMPETITIVE STRAGEGY

Inventory plays an important role in a supply chain‘s ability to support a

company‘s competitive strategy. If a company‘s competitive strategy requires a very high
level of responsiveness, a company can use inventory to achieve this responsiveness by
locating large amounts of inventory close to the customer. Conversely, a company can
also use inventory to make it more efficient by optimizing inventory through centralized
stocking. The latter strategy would support a competitive strategy of being a low-cost
producer.

1.6.3. Inventory Functions

Figure 1.14: Function of Inventory

28
Keeping a steady supply of materials on hand for operations is inventory's primary
purpose. Businesses should look for an ideal range between too much and too little
inventory in order to effectively fulfill this function and avoid ever running out of stock.

1.6.4. Types of Inventories

Raw Material Inventory: The materials, from which the final product of the company is
made, are the raw materials. The material does not include any material that supports
production; these materials are called indirect materials.

Work-In-Process Inventory (WIP): All materials that have been transformed from their
raw materials stage by some manufacturing process but are not final products are work
in-process goods. Sometimes, what may appear to be a final product is still really an in–
process good if the final production step is a packaging one. It is an in-process until it is
in the form that can leave the plant.

Finished Goods Inventory: Finished goods inventory consists of all the stock that is
ready for dispatch. This finished goods inventory acts as a buffer between the production
department and the marketing department. The higher the stock levels of finished goods
results in a higher inventory cost.

Maintenance, Repairs and Operating Inventories (MRO): Maintenance, repairs and

operating supplies which are consumed during the production process and generally do
not form part of the product itself (e.g. oils and lubricants, machinery and plant spares,
tools, and fixtures, etc.) are referred to as MRO inventories.

Safety stock inventory: Safety stock inventory is a buffer of extra inventory that
businesses keep on hand to prevent stockouts or delays in production. This type of
inventory may be used to address unexpected increases in demand or supply chain
disruptions.

Consignment inventory: Consignment inventory is held by one company on behalf of

another company, with the understanding that the second company will pay for the

29
inventory only when it is sold. This type of inventory can be useful for reducing the
financial risk associated with holding excess inventory.

Dead stock inventory: Dead stock inventory refers to products or materials that are no
longer usable or sellable due to damage, obsolescence, or other factors. This type of
inventory can create significant costs for businesses and may need to be disposed of or
recycled.

1.7. Inventory and Warehouse Management Performance

Warehouse Standards:

- Efficiency (standard picking hours)

- Utilization (capacity available for bin picking team)
- Daily Capacity (data elements for bin picking team)

Warehouse Performance Measurements:

1. Throughput: Refers to the volume of product storage and retrieval transactions that
can be accomplished in a given unit of time.
2. Order Filling: Determined by lines filled without error, orders filled without error,
and orders on time.
3. Shipping Accuracy: Determined by comparing lines packed accurately, total orders
packed completely, orders packed and shipped on time, and incidence of packing
damage.
4. Inventory Accuracy: Measurements for isolating the root cause of inventory error
and devising the appropriate action to be taken to eliminate the error from
reoccurring.
5. Storage Utilization: Metric that assist managers to effectively utilize and evaluate all
warehouse storage space.
6. Labor utilization: the effectiveness of labor usage in the warehouse.
7. Equipment Utilization: The usage and efficiency of warehouse equipment, such as
forklifts, pallet jacks, and conveyors.

30
 CHAPTER 2: ANALYZE INVENTORY & WAREHOUSE MANAGEMENT
AND PERFOMANCE AT Bee Supply Chain Solution Company Limited

2.1. BEESCS Warehouse

2.1.1. Location

Address: Minh Phu Industrial zone, Co Nhue 2 Ward, Bac Tu Liem District, Ha Noi City

Acreage: 3000 square meters

Location: distance from the main road: 32km, distance from the inner city: 7km, from

7 km
13 minutes
7km

Noi Bai Airport: 20km, and from Hai Phong Port: 100km

Figure 2.15: Warehouse Location in Hanoi

The establishment of a warehouse in Bac Tu Liem District is the most optimal

option for BEESCS because of its convenience and cost saving. Bac Tu Liem District is
one of the largest areas in Hanoi City, it has not only high population rate, but also
connects with the inner city with numerous main road such as “32 roadways”. Another
benefits when setting facilities at this location is cost saving.

Bac Tu Liem District is an ideal location for BEESCS due to its strategic positioning in
Hanoi City. The district is well-connected with major roads, making it easily accessible
for transportation and logistics. This would help streamline the supply chain process for
31
BEESCS, enabling them to deliver their products to customers more efficiently.
Moreover, Bac Tu Liem District is a densely populated area, which would provide
BEESCS with a large customer base. This would not only increase their sales but also
help them establish a strong presence in the market.

In terms of cost savings, setting up a warehouse in Bac Tu Liem District would reduce
transportation costs for BEESCS. The proximity to major roads and the city center would
mean less time and money spent on transportation, ultimately reducing overall expenses
for the company. Overall, the benefits of establishing a warehouse in Bac Tu Liem
District make it the most optimal option for BEESCS, providing them with a strategic
location, a large customer base, and cost savings opportunities.

2.1.2. Types of Warehouses

As a third-party logistics provider, BEESCS offers a public warehouse with reasonable

price and optimal management system which allow customers to check their inventory as
well as daily report about the number of input and output. By doing this, customers can
reorder items so that they can reduce the holding cost. Moreover, BEESCS renting fee
depends on the using time, which is very efficient for short-term partners who have
seasonal products such as mooncake, bears, etc.

Each warehouse used by BEESCS is treated as a separate entity because the company
uses decentralized warehousing operations. As a result, there will be in-transit stocks,
orders from the lower warehouse to the upper warehouse, and a separate safety stock for
each warehouse. Inventory will be optimized for each warehouse separately.

BEESCS changes the renting fee for different types of customers and apply special
discount for new partners. For examples. SAV is one of new customers of BEESCS, they
are offered a free holding cost for 2 months at the beginning of year. This special
discount seems to be appealing for many customers when they can reduce renting costs
significantly.

32
2.1.3. Warehouses Layout

BEESCS has a warehouse with an area of 1,600m2 (Width: 40m, Length: 40m, and
Height: 65m). The total capacity area is 104,000m3, which is quite large. However, the
current layout only occupies approximately 800m2, accounting for only 50% of the
available space. This percentage is quite low, and there is a need to make this layout more
effective.

Figure 2.16: Warehouse Layout

The warehouse has 6 drive-thru racks and 1 single rack, with each aisle being 3.2m apart,
making it easier for warehouse staff to store goods onto double dives. This is a well-
designed feature as it allows for easy movement of goods and faster processing times.
However, the unoccupied space can be utilized more effectively to improve the overall
efficiency of the warehouse.

The warehouse has two main doors for receiving and shipping goods, with the dynamic
storage area having three tracks opposite the entrance. This is a good feature as it allows

33
for easy movement of goods in and out of the warehouse. However, the unoccupied space
can be utilized more effectively to improve the overall efficiency of the warehouse.

2.1.4. Warehouses Service Price

Table 2.1: Price List for Warehousing services at BEESCS

I Holding Cost      
Cost
  Storage Types (VNĐ) Unit Note
  500 Đ/package/day  
  Finished Products 35,000 Đ/m3/day  
  60 Đ/kg/day  
  High-value Products 300 Đ/kg/day  
  Minimum Inventory Value 100,000 Đ/day  
— Method of calculating inventory by day (if any) = Items present + Items stock in - Items stock
  out previous day
  — Light goods occupying a large volume will be converted to kg = L*W*H (cm) / 4000
  — Each pallet contains only 1 lot of products, will be rounded to 1 pallet (charge by pallet)
  — Maximum loading/pallet: 1m*1,2m*1,4m, each pallet carrying <=1,000kg (charge by pallet)
II Handling Cost and Unloading Charge from Transport Vehicle
Activity Cost
  (Loading/Unloading) (VNĐ) Unit Note
Loading and Unloading fee from
  container/truck to gate 2,500 Đ/package/once  
Loading and Unloading fee from
  gate to container/truck 2,500 Đ/package/once  
  Minimum Load/Unload 100,000    
  Maximum Load/Unload 100,000    
III Stock in and Stock out Charge
  Handling In 100 Đ/kg
Charged for all import
Tally the goods, load the goods
transactions (including
on the pallet, paste the pallet tag
return import, stamp
and put the goods in the storage
import, ..)
  shelf position    
  Handling Out 150 Đ/kg Charged for all export
Picking up goods, arranging transactions (including
goods, counting, and clearing return export, stamp
  goods to the gate     export, ...)
Apply for spare part,
  Stock out Cost of single product 5,000 Đ/SKU loose items
IV Other Service Charge
Other Activity Cost
  (If customers need) (VNĐ) Unit Note
Order processing fee on the
  system Free Đ/Order Import & Export Orders
  Stamp printing fee 500   Import stamps,

34
 Vietnamese sub-stamps
Stamps provided by
  Stamping fee 500   customers
Customer's price
  Good Insurance 0.15% %Value declaration
Customer's price
  Management Inventory fee 0.20% %Value declaration
V Overtime Charge
  Working Hour : Morning (8:00-12:00), Afternoon (13:00-17:00) (Monday-Saturday)
  17:00-21:00 (Monday-Saturday) 150% Standard rates for each type of service
  After 22:00 (Monday-Saturday) 200% Standard rates for each type of service
  Sunday 200% Standard rates for each type of service
  Special Occasions 300% Standard rates for each type of service
Source: Internal Information

In general, BEESCS provides customers with a wide range of prices. For different types
of customers, we will always suggest the most reasonable prices and give details in every
charge to help them fully understand the processes of warehouses.

Table 2.2: List of Customers using BEESCS Service

Customer Services
SAV Company Warehouse and Transportation
Chinoiserie Décor Warehouse and Transportation
2M COMPANY Warehouse
DZ GROUP Warehouse
GA GROUP Warehouse
HONGPHAT Warehouse and Transportation
2M Company Warehouse
Vin drink Company Warehouse and Transportation
Source: Database exported from Mickey System

2.1.5. Types of Inventories

In general, the items stored in BEESCS Warehouse are finished goods, these items can be
classified as following categories:
- Consumer goods: drinks, clothes, agricultural products, …
- Capital goods: machinery, equipment for machinery, …
- Luxury goods: ceramic furniture, …
- Digital goods: electric products, …

35
 Table 2.3: List of some Inventory Items

Actual Estimated
Barcode Items Name Unit
Inventory Inventory
10601161 RED BULL Nước tăng lực 150ml 493 476 Package
T50
10622343 RED BULL Nước tăng lực nắp 162 306 Package
đen 150ml T50
10622344 RED BULL Nước tăng lực nắp đỏ 126 215 Package
150ml T50
12500639 NESCAFÉ 3in1 Cà phê rang xay 403 256 Package
hòa tan Đậm vị cà phê hộp 20 gói
12500639 NESCAFÉ 3in1 Cà phê rang xay 376 292 Package
hòa tan Đậm vị cà phê hộp 20 gói
18935039500506 Bột ngọt Ajinomoto 454g 353 478 Package
18935049502231 Nước ngọt có gas Coca Cola - 143 433 Package
320ml/lon
18936036020134 Bánh Orion Custas 282g 263 431 Package
18936036020387 Bánh Orion Chocopie 396g 317 459 Package
18936136161157 Tương Ớt Chinsu chai 500 240 284 Package
18936136163311 Nước mắm Nam Ngư 750ml 337 270 Package
18936136164967 Mắm nam ngư 900ml 157 429 Package
18996001303075 Danisa 681g 195 397 Package
18996001303464 Bánh quy Danisa Gold Edition hộp 300 351 Package
thiếc 792g
18996001303624 Danisa 454g 307 204 Package
18996001303655 Danisa 908g 370 209 Package
18996001303747 Bánh quy bơ Danisa choco cashew 250 269 Package
hộp giấy 90g
18996001303761 Danisa 200g 494 456 Package
18996001306007 Bánh quy bơ Danisa cranberry hộp 180 495 Package
giấy 90g
216367 Bia 333 mẫu tết 105 271 Package
216367 Bia 333 mẫu tết 176 318 Package
321445 Danisa Melody 992g 183 408 Package
324312 Danisa Nam Việt Quất 405g 460 486 Package
326527-000 Adapter for Z7 39x38x29cm 377 282 Package
327483-000 Hot Faucet Assembly-B4 462 244 Package
39x38x29cm
327484-000 Normal Faucet Assembly-B4 224 427 Package
39x38x29cm
333585-000 HOT TANK ASSY,0.8L 355 272 Package

36
 39x38x29cm
333589-001 Thermal sensor for Z7 435 342 Package
39x38x29cm
335082-000 VALVE,SOLENOID,24V DC, 414 286 Package
Normal Faucet Assembly-B4, Hot
Faucet Assembly-B4 39x38x29cm

335189-000 Main Circuit Board for P6, Main 490 273 Package
Circuit Board for P7,RESET
BOARD 39x38x29cm
335189-001 Main Circuit Board for P7 478 384 Package
39x38x29cm
335237-000 RESET BOARD 39x38x29cm 158 248 Package
335400-000 Mehanical faucet for C1,C2 103 391 Package
39x38x29cm
335400-000 VALVE,DIVERTER,INTEGRAT 416 456 Package
ED 0.25 INCH FOR P6/P7,
ASSEMBLY,CHECK
VALVE,INHOUSE, Mehanical
faucet for C1,C2 39x38x29cm

Source: Database exported from WMS

Inventory by Owners
1456

4500
2563
250

1900

5820 2500

SAV GA 2M Décor
Hồng Phát Vin Drink DZ

Figure 2.17: Proportion of Inventory Units by Customers

As we can see, Vin Drink Company is the owner who store the largest number of
products in BEESCS Warehouse with 5820 packages of total number, accounting for
approximately 30%. Vin Drink’s Products are soft drinks, candys, teas which used in

37
many marts or supermarkets in every part of Vietnam. All these products are considered
as finished products and packed in a package so that it makes easier for us to manage the
inventory as well as suggest Vin Drink Company whether they should stock in more
inventory. By doing this, they can minimize the inventory costs significantly.

Take Vin Drink Company is a clear example, the most effective way to control the
inventory unit that BEESCS recently apply for customers with average monthly demand
units is EOQ model:

Average Monthly
Unit
Demand

Demand 2000 Package/month

Order Cost 800,000 Đ/times

Holding Cost 15,000 Đ/package/month

Table 2.4: Apply EOQ Model for Customer

By applying EOQ model for Vin Drink Company, the EOQ is approximately 461
packages per month to minimize the inventory costs.

2.1.6. Warehouse Facility Management

- A pallet (also called a skid) is a flat transport structure, which supports goods in a
stable fashion while being lifted by a forklift, a pallet jack, a front loader, a jacking
device, or an erect crane. A pallet is the structural foundation of a unit load, which
allows handling and storage efficiencies.
- Pallets are commonly made of wood with dimensions of 1219x1219mm and
1016x1016mm.

38
 Figure 2.18: The classic wooden pallet

- Drive through rack: Drive In racking is a storage solution with extremely high
density. Aisle space is minimized to increase the amount of stored goods, so
forklifts move directly into the rack for loading and unloading. Each level has
guide rails to guide and place the pallets inside the system.

Figure 2.19: Drive-Thru Rack

- The electronic scale used in warehouses is usually called an industrial electronic

scale or a pallet scale. This is a type of electronic scale with the ability to

39
 withstand heavy loads and is often used to weigh heavy materials or products in
warehouses. Pallet electronic scales are often large in size and can handle loads
ranging from a few tons to tens of tons depending on the intended use. These
scales are typically designed with high precision and can be integrated with other
devices in the warehouse management system to ensure accurate and efficient
weighing.

Figure 2.20: The electronic scale

- Forklift truck: is a powered industrial vehicle that is used to lift, move, and stack
materials, goods, and products. It is also commonly known as a forklift, lift truck,
or a fork truck. Forklifts are used in a variety of settings, including warehouses,
manufacturing plants, construction sites, and retail stores, to transport heavy
materials and loads from one location to another.
-

40
 Figure 2.21: Forklift truck

2.2. Storage System in BEESC

Figure 2.22: Storage Label

41
 A1
01 02 03 11

A2

A3

B1

B2
01 02 03

B3

Figure 2.23: Storage System

Storage in Horizontal Way

Imagine walking into a bustling warehouse where every inch of space is maximized for
efficiency. Your eyes scan the rows of towering drive-thru racks, each one labeled with a
unique identifier. A1, A2, A3, B1, B2, and B3 are all dedicated to goods with high
demand and unstable demand, requiring constant activity.

In area A, you'll find everything from agriculture products like refreshing drinks to
essential ingredients. Meanwhile, area B is reserved for luxury goods, such as high-end
furniture and electric components. And just when you thought this warehouse couldn't get
42
any more impressive, you spot the lone C rack, housing a vast collection of machinery
components and low-demand products. It's clear that every inch of this warehouse is
meticulously organized for maximum efficiency.

Storage in Vertical Way

Table 2.5: Vertical Storage System

B1 B1 A1
B1.01.04 B1.02.04 A1.01.04
B1.01.03 B1.02.03 A1.01.03
B1.01.02 B1.02.02 A1.01.02
B1.01.01 B1.02.01 A1.01.01
Source: Internal information about WMS

Different storage bins are labeled a specific number to monitor goods location.
Traditionally, there are 4 floors in each drive-thru rack, and goods will be located on
pallet, then the forklift transfer pallet onto arranged location. These activities are taken
place after the data entry clerk completes all information confirmation about the quantity,
quality and choose location for goods.

By labeling all goods position, all picking and put away process are easily to operate and
this can help reduce the risk of misplace goods as well as reduce a large amount of time
to sort goods location.

43
2.3. Warehouse Processes at Bee Supply Chain Solutions Company Limited

GENERAL WAREHOUSE PROCEDURES

Receiving

Storage

Picking

Packing

Shipping

Inventory Management

Quality Control

Figure 2.24: General Warehouse Procedure

- Receiving: This involves receiving goods or products from suppliers, which are
checked for quantity and quality.
- Storage: The goods are then stored in designated locations within the warehouse,
based on their size, shape, and weight. The warehouse should be organized in a
way that makes it easy to locate and access the stored goods.
- Picking: When an order is received from a customer, the goods are picked from
the warehouse shelves and brought to a staging area for packing.
- Packing: The goods are packed into boxes or containers, ready for shipping to the
customer. The packing process may involve labeling, weighing, and securing the
goods.
- Shipping: Once the goods are packed, they are loaded onto trucks or other
shipping vehicles for transportation to the customer's location.

44
 - Inventory management: Throughout the entire process, it's important to keep track
of inventory levels and make sure that there is enough stock on hand to fulfill
orders. This involves regular monitoring, tracking of inbound and outbound
shipments, and restocking when necessary.
- Quality control: Finally, it's important to maintain a high level of quality control
throughout the entire warehouse process. This involves regular inspections of
incoming and outgoing shipments, as well as regular maintenance of the
warehouse and its equipment to ensure that everything is working properly.

2.3.1. Process of Check and Stock-In Goods

Figure 2.25: Check and Stock-In Process

Task responsibilities:

- Warehouse Manager: Responsible for reviewing and approving operations related

to warehousing of goods.
- Warehouse Supervisor: Responsible for assigning work, supervising the process of
warehousing goods.

45
 - Data Entry Clerk: Responsible for receiving/entering order information, checking
documents, ensuring data on the system is always accurate.
- Storekeeper / Warehouse Staff: Responsible for checking goods according to
standards, classifying and arranging goods when entering the correct import
location.

STAGE 1: CUSTOMER SENDS THE INFORMATION ABOUT GOODS

RECEIVED

Responsibilities for implementation: Customers / Sales Coordinators

Activities: Customer sends import information to Warehouse department: goods name,

quantity, batch number, expiry date (packing list), product test note (COA), type of
transport, delivery time via email upon request. following request:

- Email subject according to the structure: "send date of import plan yymmdd -
Customer name – Goods received plan."
- Email address to receive:
 Northern warehouse: vanhanh.MB@beescs.com
 Central warehouse: vanhanh.MT@beescs.com
 Southern warehouse: vanhanh.MN@beescs.com
- CC email: Thuat.matthew@beescs.com; email sales in charge of customers.

Processing Time: Notice at least 24 hours in advance.

Related Documents:

- Packing lists /List of goods

- COA
- PO/receipt from customer's warehouse (hard/soft) - Ex-warehousing document (if
any) and Bill
- Certificate of Inspection

46
STAGE 2: RECEIVING AND CHECKING DOCUMENTS

Responsibilities to Implementation: Dana Entry Clerk

Activities:

- Receive goods receipt.

- Check document information:
 If the documents are complete, move to step 3: proceed to make a notice of goods
receipt.
 If the voucher is incomplete, missing/incorrect: contact the customer to
supplement. In case the customer is not able to add properly and sufficiently,
notify the customer to refuse to goods receipts.

Processing Time: In a spot as soon as receiving information.

Related Documents: Documents in Stage 1

Figure 2.26: Customer Good Receipt

STAGE 3: MAKE AN STOCK-IN NOTICE

Responsibilities to Implementation: Dana Entry Clerk

Activities: Make a notice to supply goods to the stockkeeper.

Processing Time: Immediately after completing the goods receipts check.

47
Related Documents: Goods receipts (BM.WH.01.01)

STAGE 4: ARRANGE PERSONNEL TO IMPORT GOODS

Responsibilities to Implementation: Warehouse Supervisor

Activities: Receiving information, based on the quantity and type of goods, arrange
human resources for loading, unloading, inspecting, and importing goods. Monitor the
delivery process to ensure there are no errors.

Processing Time: In a spot as soon as receiving information.

Related Documents: Documents from stage 3

STAGE 5: CHECK GOODS BEFORE STOCKING

Responsibilities: Stockkeeper

Activities: Check the appearance and take pictures of the incoming container/truck:

- Container still sealed (container number, maintenance number), outer condition of

container (transport vehicle)
- Whether the goods loaded on the container (transport vehicle) are broken, dented,
the goods are shifted, the packaging is torn ... and notify the customer.

Figure 2.27: Check the appearance and take pictures of the incoming container/truck

48
Responsibilities: Staffs

Activities: Goods inspection

- Check the box (packaging): The box (packaging) is still sealed, there is no sign of
damage (perforation, tear, dent ...) or change in shape.
- Check labels, product names must be clear, not smudged, packaging must be
intact, not torn or punctured.
- Inspection of storage conditions must clearly indicate storage conditions,
production batch number, production date, expiry date, registration number
(VISA), import license number (QUOTA), name and address of the importer.
- Scan the serial number of the product (if the customer requires management by
serial number).

Figure 2.28: Goods Inspection Appearance

Responsibilities: Staffs / Stockkeeper

- Check the details of the received goods, including the product name, specification,
batch number, expiry date, manufacturer, and supplier, against the accompanying
documents such as invoice, packing list, customs declaration, delivery record, and
test note (COA).
- If any signs of deviation, damage, or suspicion of non-standard are detected,
request a detailed inspection by opening the box and inspecting each unit.

49
 - Sample the goods by taking one vial or one box (for products) or bags of
ingredients (for raw materials) in the box for sensory inspection, label according to
the specified conditions and requirements, and write in the check sheet.
- Make a record of any damaged goods or excess goods detected using the
appropriate form and notify the Storekeeper and Head of Department warehouse to
assess the extent of loss and damage of goods and carry out the necessary
activities. Take pictures for follow-up and work with the manufacturer. In case of
serious abnormalities, report to superiors, relevant departments, and customers for
timely resolution.
- If the received goods are cold goods, check them as required in Article 8 of the
procedure.

Processing Time: As soon as the goods arrive at the warehouse.

Related Documents: Documents from stage 3

- Image of container number, lead number. Image of goods stacked on a container.

- Check sheet before receiving goods into the warehouse (BM.WH.01.02)
- Minutes of damaged goods, surplus goods (BM.WH.01.03)
- Documents from stage 3

STAGE 6: STOCK GOODS

Responsibilities: Stockkeeper / Staffs

Activities: Goods after checking (Eligible/Ineligible/Defective or damaged)

Excess / Shortage -> put into waiting area to recheck.

50
 Table 2.6: Classify eligible and ineligible goods.

Eligible Goods: Ineligible Goods:

- All documents are completed, stocking - Warehouse supervisor and

items in to arranged location in Stockkeeper jointly make a report on
warehouse. detecting non-standard, redundant
- Update inventory data to system goods (BM.WH.01.03) and return it to
Data Entry Clerk to notify relevant
Particularly for goods subject to special
departments, suppliers, and
control, arrange goods in separate
transporters. for prompt handling
storage areas with signs at the warehouse
within 24 hours.
for each type.
Damaged goods must be affixed with a
red tag of “DEFFECTIVE” and
transferred to a quarantine area, not to be
stored with qualified goods waiting for
further processing.

Source: Internal information about warehouse activities

Processing Time: In a spot as soon as receiving information.

Related Documents: Documents from stage 3

- Pallet tag (BM.WH.01.05)

- Minutes of damaged goods, surplus goods (BM.WH.01.03)

STAGE 7: UPDATE ON SYSTEM STOCK

Responsibilities to Implementation: Data Entry Clerk

Activities: Based on the information of the Notice of Goods Receipt, Data Entry Clerk
will enter into the system and print out the product receipt (BM.WH.01.04) and then
transfer it to the Warehouse Manager and Warehouse Supervisor for confirmation. If the
goods need to be affixed with additional labels, Data Entry Clerk will transfer the goods
to the warehouse area and wait for the labels to be stamped on the system.

51
Processing Time: As soon as receiving information from the storekeeper.

Related Documents: Warehouse receipt (BM.WH.01.04).

STAGE 8: UPDATE DOCUMENTS

Responsibilities to Implementation: Data Entry Clerk

Activities: Data Entry Clerk is responsible for keeping all relevant import documents.

Processing Time: Right after entering the goods on the system.

Related Documents: Documents from stage 1 to 6

Table 2.7: Regulation on the probability of goods inspection before import

Number of packages Number of inspected packages

<50 1
51 - 100 2
101 - 200 3
201 - 300 4
301 - 500 6
>500 8-10
Source: Source: Internal information about warehouse regulation

Regulations when inspecting refrigerated goods:

Check the temperature of refrigerated goods immediately upon receipt and record the
results on the Check Sheet before receiving goods into the warehouse (BM.WH.01.02)

- The process of checking and importing goods must be conducted in the cool
storage area and must be completed within 04 hours from the time the goods are
unloaded.
- Check the temperature of cold goods with a heat gun: open the product box, use a
heat gun to measure the temperature of the goods by shooting at the center of the

52
 product box, the distance from the heat gun to the box of goods is ~ 30cm, read
and record the temperature readings on the heat gun.
- In case the shipment has a temperature recording device, the warehouse staff must
record the time of unloading, read, and record the temperature indicator on the
device, and immediately transfer the temperature recording device to the
Warehouse keeper.
- If the temperature of refrigerated goods is outside the range of 2-8oC, immediately
notify the Storekeeper. The warehouse keeper makes a record of unqualified
goods/overstocked or deficient goods (BM.WH.01.03) and reports it to the Head
of the Warehouse Department for handling measures. This product must be kept in
a cold storage area pending processing.

2.3.2. Process of arranging and monitoring goods in the warehouse

Figure 2.29: Procedures for arranging and monitoring goods

When finishing inspections, goods will be placed at waiting area and prepared for storage
function. This this stage, goods are stored in different pallet and attached tag in order to
determine position and monitor the inventory. There are some regulations when using
pallet for warehouses:

53
 - Goods, after checking the quantity and quality of the bonded goods, meet the
standards.
- Staff receiving goods choose plastic pallets (or treated wooden pallets, with COA
test certificate).
- Arrange the goods on the pallet neatly, with aesthetics, do not put excess goods
outside the edge of the pallet. Maximum pallet height 1.5m: weight of each pallet
containing goods < 1 ton.
- Labeling goods always turn to the outside, in the right direction.
- Heavy goods (>0.7 tons; <= 1 ton) stored on the 3rd floor or below; Fragile bottles
on the 1st floor.
- Cargo boxes are lined up in the right direction of the arrow, the number of layers is
printed on the box. Wrap the shrink film (tie) around the pallet to make sure it
doesn't move when lifting the goods onto the shelf.
- The odd box is placed on the top so that it is outside so that it is easy to recognize
and distinguish that the odd box is not the whole box.

At the following stage, staffs will stick tag on pallet and update information on the
system. After loading the goods into the pallet according to the specifications, the
consignee must paste the pallet tag according to the pallet tag form (BM.WH.01.05).

54
2.3.3. Process of handling damaged and missing goods

Figure 2.30: Process of handling damaged and missing goods

Stage 1: Detecting damaged or missing goods (crushed, dented, dirty, expired,

underweight, etc.).

Causes could be:

- During transportation of the goods

- Handling and circulation of goods in the warehouse
- Storage of goods
- Order fulfillment, packaging, and delivery
- Inventory management

Warehouse operators are responsible for reporting to the warehouse supervisor.

Stage 2: Checking and creating documents.

Warehouse supervisor conducts physical inspection of products and makes a record of

non-standard goods, surplus goods.

Stage 3: Transferring to pending area.

55
the warehouse operator will tag the inventory as "Special Goods" and transfer it to the
designated storage area for further processing. They will also notify the Warehouse
Manager/Data Entry Clerk to create a transfer order on the system.

Stage 4: Informing for Suppliers

Warehouse manager/data entry clerk, promptly contact suppliers, Board of Directors,

importers, carriers, insurance companies, accountants… within 24 hours.

Stage 5: Confirmation of request

The entire damaged and missing inventory in the warehouse has been verified and
confirmed in the report. The supplier/Warehouse manager will proceed to approve and
provide a solution.

Stage 6: Updating Inventory

All damaged goods, missing goods, based on the approval of the supplier/Board of
Directors, admin makes inventory adjustments on the system.

56
2.3.4. Process of picking and packaging goods

Figure 2.31: Process of picking and shipping goods

- To begin with, the first step involves receiving the customer's order either through
Zalo or Gmail, and then checking all the necessary information regarding the order
such as the quantity, types of goods, and receiver information. The Warehouse
Data Clerk will then create a notice and send it to the Warehouse Supervisor.
- In the second step, the Warehouse Supervisor will review the notice to ensure that
all the information is correct, and then check the inventory using the Odoo
System.
- If the quantity of goods is sufficient to fulfill the customer order, the manager will
assign staff to pick the goods and sort their location. However, if the quantity is
insufficient, the Warehouse Clerk will inform the customer and request a change
in the issued quantity while creating a new PO.
- In step 4, the Warehouse staff will retrieve the goods as per the Warehouse
Supervisor's instructions and check their quality.
57
 - If the goods meet the required standards, the staff will pack them and tag the
transport bill, after which they will be delivered to the customer, and the Data
Entry Clerk will update the inventory accordingly. However, if the goods are
damaged or there are shortages, they will be moved to the quarantine area and
rechecked. A notice will be sent to the customer to verify the information.
- In step 6, if the customer approves the notice about the damaged goods, the
products in the quarantine area will be dealt with according to the damaged goods
procedure. If the customer requires further quality checks, the items will be
checked again before further action is taken.

2.3.5. WMS Procedure

IN INT PICK OUT

Receive Put away Pick Ship

Figure 2.32: WMS Process

- The procedure of WMS (Warehouse Management System) which includes the
steps of Receive, Arrange, pick for issue, and Ship, is a widely adopted and
efficient method for managing warehouse operations.
- The first step, Receive, involves receiving and processing incoming goods,
including checking the quantity and quality of the received items, verifying the
accuracy of the order, and updating the inventory accordingly.
- The second step, put away, involves organizing the items in the warehouse based
on their characteristics, such as size, weight, fragility, expiration date, or other
specific requirements. This step ensures that the goods are stored properly,

58
 minimizing the risk of damage or loss, and enabling quick and accurate retrieval
when needed.
- The third step, pick, involves selecting the required items from their storage
location based on a specific order or request, such as a customer order, an internal
transfer, or a production order. The process of selecting items from the warehouse
to fulfill an order. This step requires careful planning and coordination to optimize
the picking process, minimize errors, and reduce the time and effort required to
complete the order.
- The final step, Ship, involves preparing the selected items for shipment, including
packaging, labeling, and documentation, and arranging for their delivery to the
designated destination. This step requires compliance with various regulations,
such as transportation laws, customs regulations, or other legal requirements.

Figure 2.33: Warehousing Activity on WMS

Stage 1: Receive

Figure 2.34: Receive Form Creating

59
In this stage, Stockkeeper will create a Receive Deviation which followed this rule
“MB***IN/#####” – MB stands for North Branch (*** is the Seri of Warehouse). For
example, Warehouse in Hanoi has Seri “MB101”). And ##### is the Seri Number in
system to manage the order. Warehouse in Ho Chi Minh City is “MN”.

Stage 2: Put away.

Items which are pin with specific code will be transferred to arranged locations. This
stage call storage and items can be stored in the bin A, B, C.

Figure 2.35: Put away and Storage

Stage 3: Pick

Figure 2.36: Pick Goods to fulfill customer order

When an item is picked up to staging area for shipping activity. The status will change
from “INT” to “Output” associated with previous code to manage the accuracy of items.
Then new PICK Command will create in system.

60
Stage 4: Ship

Figure 2.37: Shipping Form Creating

Finally, a command “OUT” will be created. If all information is correct, the dana entry
clerk will confirm then items will be transferred from the staging area to shipping area.
They then are loaded in trucks and deliver to customers. All processes of WMS are
integrated into the same system that connects with TMS to manage the shipment’s status.
Both warehouse manager and transport operator need this data to evaluate performance.

2.4. General Evaluation and Assessment of warehouse procedures

2.4.1. Assessment of current number of Good Issues for business at BEESCS

Warehouse – Branch Hanoi

Table 2.7: Total number of goods issues in January 2023

Time Goods Issues

1/2/2023 21
1/3/2023 40
1/4/2023 34
1/5/2023 27
1/6/2023 23
1/7/2023 24
1/9/2023 33
1/10/2023 43
1/11/2023 127
1/12/2023 136
1/13/2023 49
1/14/2023 30

61
 1/16/2023 53
1/17/2023 32
1/18/2023 28
1/27/2023 27
1/28/2023 21
1/30/2023 30
1/31/2023 171
Source: Database exported from WMS

Goods Issues
180
160
140
120
100
80
60
40
20
0
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02 02
2 /2 3/2 4/2 5/2 6/2 7/2 9/2 0/2 1/2 2/2 3/2 4/2 6/2 7/2 8/2 7/2 8/2 0/2 1/2
1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/2 1/2 1/3 1/3

Figure 2.38: Number of Goods Issues of a Customer in 2023 January

The quantity of goods issues during the early days of January was relatively low due to
the forecasted challenging economic climate in 2023, with trading activities being
predominantly affected by these issues, rendering it difficult for companies to locate
potential customers. Consequently, the average number of goods issues recorded until 8th
January 2023 was approximately 30 issues, a reasonable figure given the prevailing
economic conditions. Nevertheless, from the 12th to the 14th of January, a marked
increase in the number of goods issues was observed. This can be attributed to the
upcoming Tet Holiday, where numerous customers allocate funds to prepare for this
special occasion, resulting in the uptick of goods issued during this period.

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2.4.2. Types of errors in receiving goods process at Warehouse

In general, each activity experiences some errors in process, and process of Check and
Stock-In Goods including some errors:
- Quantity Errors: These errors occur when the quantity of goods received does not
match the quantity ordered. For example, if a purchase order calls for 100 units of
a product but the warehouse only receives 90 units, there is a quantity error.
- Documentation Errors: These errors occur when there are mistakes in the
paperwork associated with the receiving process. For example, if a purchase order
lists the wrong product or incorrect delivery date, there is a documentation error.
- Quality Control Errors: These errors occur when the received goods do not meet
the quality standards established by the warehouse or the customer. For example,
if a shipment of food products is contaminated or spoiled, there is a quality control
error.
- Damage Errors: These errors occur when the received goods are damaged or
broken during the shipping process. For example, if a pallet of fragile items is
dropped during transit and several items are damaged, there is a damage error.
- Information Error: These errors occur when the information of drivers or
containers are incorrect, causing the
- Timing Errors: These errors occur when the received goods are delivered later
than expected. For example, if a shipment of goods was supposed to arrive on
Monday but does not arrive until Wednesday, there is a timing error.
Table 2.8: Error in Receive and Stock in Process in 2022
Error types Frequency Percentage Cumulative
Percentage
Quantity Errors 11 17% 17%
Documentation Errors 9 14% 31%
Quality Control Errors 15 23% 54%
Damage Errors 15 23% 77%
Information Error 10 15% 92%
Timing Errors 5 8% 100%
Source: Internal information in warehouse record
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 16 120%
14
100%
12
80%
10
8 60%
6
40%
4
20%
2
0 0%
tio
n ity ng es ys m
s
nt eli ag ela Ite
le ec ua ab m D
S Q isl D
a len
ng to
tem ro
M
r S
ctI W to
rre s
co Lo
In

Frequency Percentage Cumulative Percentage

Figure 2.39: Pareto chart for error types

The most common type of error is Quality Control Errors, with a frequency of 15 and a
percentage of 23%. This indicates that the quality of the received goods is a significant
concern in the warehouse. The second most common type of error is Damage Errors, with
the same frequency and percentage as Quality Control Errors. This suggests that the
warehouse needs to improve its handling of goods during the receiving process to
minimize damages.
Quantity Errors and Documentation Errors have relatively lower frequencies and
percentages compared to Quality Control Errors and Damage Errors. However, they are
still significant and indicate the importance of accurate record-keeping and order
fulfillment. Information Errors and Timing Errors have the lowest frequencies and
percentages, with 10 and 5 occurrences, respectively. Nevertheless, they still need to be
addressed to ensure smooth operations and customer satisfaction.
The cumulative percentage shows that Quality Control Errors, Damage Errors,
Information Errors, and Timing Errors account for the majority (92%) of all errors in the
receiving process. This highlights the need for the warehouse to focus on improving these
areas to reduce errors and increase efficiency. Overall, the data suggests that the

64
warehouse needs to pay particular attention to quality control and handling of goods
during the receiving process. Improvements in these areas can reduce damages, improve
customer satisfaction, and prevent delays in production. Accurate record-keeping and
order fulfillment should also be a priority to minimize quantity and documentation errors.

2.4.3. Types of errors in arranging and monitoring process at Warehouse

There are a variety of error types in the storage process:

- Misplacement of items: This occurs when items are stored in the wrong location,
making it difficult for workers to find and retrieve them when needed.
- Overstocking: When too many items are stored in one location, it can lead to
damage, spoilage, or loss of inventory. Overstocking can also cause delays in
fulfilling orders, as workers have to spend more time searching for items.
- Understocking: The opposite of overstocking, understocking occurs when there
are not enough items in stock to fulfill customer orders. This can lead to missed
sales opportunities and dissatisfied customers.
- Inaccurate inventory records: If inventory records are not updated in real-time, it
can lead to discrepancies between what the records say is in stock and what is
actually available. This can lead to overstocking, understocking, and lost sales.
- Theft: Theft can occur when employees or outside individuals gain unauthorized
access to the warehouse and steal items. This can result in significant financial
losses for the business.
- Damaged items: When items are not stored properly, they can be damaged or
destroyed. This can happen due to factors such as improper stacking, inadequate
packaging, or exposure to environmental hazards.

65
 -
Table 2.9: Error types in Arranging and Monitoring Goods Process
Cumulative
Error types Frequency Percentage
Percentage
Misplacement of items 7 23% 23%
Overstocking 6 19% 42%
Understocking 3 10% 52%
Inaccurate inventory records 6 19% 71%
Theft 1 3% 74%
Damaged items 8 26% 100%

Source: Internal information in warehouse record

16 120%
14
100%
12
80%
10
8 60%
6
40%
4
20%
2
0 0%
tio
n ity ng es ys m
s
nt eli ag ela Ite
le ec u a ab am D
S Q isl D len
m ng M S to
Ite ro r
ct W to
o rre Lo
s
c
In

Frequency Percentage Cumulative Percentage

Figure 2.40: Pareto Chart for error types in Arranging and Monitoring Goods Process
The data shows that misplacement of items is the most common error in inventory and
warehouse management, accounting for nearly a quarter of all errors. This type of error
can result in wasted time and resources as employees search for misplaced items and can
also cause delays in fulfilling customer orders. To address this issue, it may be beneficial
to implement better organization and labeling systems, such as using barcode scanning
technology or automated storage and retrieval systems.

66
The second most common error is damaged items, accounting for a quarter of all errors.
This type of error can result in product loss, decreased customer satisfaction, and
increased costs associated with replacing damaged items. To mitigate this issue, it is
important to implement proper handling procedures, such as using appropriate packaging
and transportation methods and providing adequate training to employees.
Inaccurate inventory records and overstocking are also common errors, each accounting
for 19% of the total errors. Inaccurate inventory records can lead to stockouts or
overstocking, both of which can negatively impact customer satisfaction and operational
efficiency. To address this issue, it is important to implement regular inventory checks
and invest in inventory management systems that allow for real-time tracking and
accurate record-keeping.
Understocking, although less frequent at 10%, can also negatively impact customer
satisfaction and result in lost sales. To address this issue, it may be beneficial to
implement demand forecasting techniques to ensure adequate stock levels are maintained.
Theft is the least common error, accounting for only 3% of the errors. Nonetheless, it is
important to implement security measures, such as surveillance systems and employee
training programs, to prevent theft and protect inventory.
Overall, this data highlights the importance of effective inventory and warehouse
management practices, as errors can negatively impact customer satisfaction, operational
efficiency, and profitability. Addressing these errors requires a combination of process
improvements, employee training, and investment in technology and systems.

2.4.4. Types of errors in Picking and Packaging Process at Warehouse

- Incorrect Item Selection: This error occurs when a picker selects the wrong item to
be shipped. It could happen due to similar-looking items, similar SKUs or UPCs
or due to the misinterpretation of the picking list or order.
- Wrong Quantity: This error happens when the picker selects the wrong quantity of
a particular item. It could result in customers receiving too many or too few items
or the wrong package size.
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 - Mislabeling: This error happens when the picker places the wrong label on a
package or box. It could lead to confusion and misidentification of the item during
shipping.
- Damages: This error occurs when the warehouse personnel do not properly handle
the items during the picking and packing process, leading to damages during
shipping.
- Delays: This error happens when the warehouse team misses the shipping deadline
due to late picking or packing of the items.
- Lost or Stolen Items: This error occurs when the warehouse staff loses or steals
items during the picking and packing process, leading to a significant loss for the
company and inconvenience for the customer.
Cumulative
Error types Frequency Percentage
Percentage
Incorrect Item Selection 8 18% 18%
Wrong Quantity 10 22% 40%
Mislabeling 5 11% 51%
Damages 2 4% 56%
Delays 15 33% 89%
Lost or Stolen Items 5 11% 100%
Table 2.10: Error types in Picking and Packaging Process

Source: Internal information in warehouse record

16 120%
14 100%
12
10 80%
8 60%
6 40%
4
2 20%
0 0%
tio
n ity ng es ys m
s
ec ant beli ag ela Ite
el u a am D
len
S Q isl D to
m ng M S
Ite ro r
ct W to
o rre Lo
s
c
In

Frequency Percentage Cumulative Percentage

68
 Figure 2.41: Pareto Chart for error types in Picking and Packaging Process
Based on the data provided, it appears that delays are the most frequent error type,
accounting for 33% of the total errors. This could be due to a variety of reasons such as
inefficient warehouse management, inadequate staffing, or issues with the supply chain.
The second most frequent error type is wrong quantity, accounting for 22% of the total
errors. This suggests that there may be issues with the accuracy of the picking process or
inadequate quality control measures in place.
Incorrect item selection and mislabeling errors account for 18% and 11% of the total
errors, respectively. These errors could be caused by a lack of proper training, inadequate
labeling systems, or insufficient quality control measures.
Lost or stolen items and damages are the least frequent errors, accounting for only 11%
and 4% of the total errors, respectively. However, these errors could still result in
significant losses for the company and inconvenience for customers.

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2.4.5. Fishbone Analysis about error types

Figure 2.42: Fishbone Analysis on Warehouse Performance

Causes:
- Manpower:
Table 2.11: Number of warehouses Staffs

Warehouse Staff Number of Staffs

Warehouse Manager 1
Data Entry Clerk 1
Warehouse Supervisor 2
Warehouse Operation Staff 20
Stockkeeper 10
Total 34
Source: Internal information of HR Department

Table 2.12: Staff profile

Academic Qualification Number of Staffs Percentage

Postgraduate degree 10 29%
University graduate 5 15%
High school graduate 19 56%
Total 34
Source: Internal information of HR Department

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Though this data, we can see that general warehouse staffs are high school graduates and
lack of academic knowledge about warehouse. Therefore, this point can lead to poor
warehouse performance when staffs are not suitable for these jobs, causing damage and
delay receiving or picking time.
- Machinery:
 Outdated or poorly maintained equipment: Equipment is old, outdated, or
poorly maintained, leading to breakdowns and reduced efficiency.
 Insufficient or inadequate material handling equipment: The equipment used to
move and store materials is not adequate for the volume or type of products
being handled, leading to delays and safety issues.

Figure 2.43: WMS Error and Wrong Exported Analysis

- Method:
 Poor inventory management processes: Inventory levels are not accurately
tracked, leading to stockouts, overstocks, and errors in order fulfillment.
 Inefficient receiving and shipping processes: The warehouse does not have
efficient processes for receiving and shipping products, leading to delays and
errors in order fulfillment.

71
 Figure 2.44: Warehouse Procedure Complication
For each customer, the entire warehouse management system must operate separately,
leading to time-consuming and inefficient.
- Material:
 Document Errors: Wrong quantity when receiving for shipping goods,
misspelling documents, and errors in inventory record.

Figure 2.45: Wrong information about the issue date

72
 Table 2.13: Possible Solution to improve Warehouse Performance base on fishbone
analysis

Cause Possible Solution

Manpower Increase staffing levels to ensure that there are enough personnel to
handle the workload.
Provide comprehensive training and development programs to ensure
that all warehouse personnel have the necessary skills and knowledge to
perform their duties effectively.
Implement incentives and recognition programs to improve morale and
motivation among staff.
Machinery Develop a maintenance schedule and ensure that all equipment is
regularly maintained and repaired as needed.
Upgrade WMS, frequently upgrade the system.
Method Implement robust inventory management processes, including regular
stock counts and cycle counting, to ensure accurate inventory levels.
Develop and enforce safety procedures to minimize the risk of accidents
and injuries in the warehouse.
Streamline receiving and shipping processes by eliminating bottlenecks
and ensuring timely and accurate shipments
Material Use appropriate packaging materials that are suitable for the product and
can withstand the rigors of transportation and handling.
Cooperate with customer to ensure all information be correct.

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 CHAPTER 3: GUILDLINE AND RECOMMENDATION FOR INVENTORY
AND WAREHOUSE MANAGEMENT OF BEESCS

3.1. Guideline to improve inventory and warehouse management in Bee Supply

Chain Solutions Company Limited
Inventory and warehouse management are essential components of any logistics and
supply chain operation. For BEESCS, effective inventory and warehouse management is
even more critical as they are responsible for managing inventory on behalf of their
clients.
One of the most critical aspects of inventory management in BEESCS is accuracy.
Implementing a robust inventory management system that accurately tracks inventory
levels, identifies inventory discrepancies, and optimizes inventory levels is essential.
Using barcoding, RFID tagging, or other technologies to facilitate accurate inventory
tracking can minimize errors and improve accuracy.
Warehouse layout optimization is another key component of inventory and warehouse
management in BEESCS. An efficient warehouse layout helps maximize storage space
and minimizes the time required for order picking and packing. Techniques such as
slotting and zoning can be used to improve efficiency and reduce the risk of errors.
Standard operating procedures (SOPs) are also crucial in warehouse management.
Developing and implementing SOPs for warehouse management, including receiving, put
away, picking, packing, and shipping, helps ensure consistency, reduce errors, and
increase productivity. Training warehouse staff on these SOPs, inventory management
systems, and operating material handling equipment can improve efficiency and reduce
errors.
Quality control measures are essential to minimize errors and ensure that orders are
accurately picked, packed, and shipped. Implementing quality checks, random sampling,
and audits to identify and correct errors before they result in customer complaints can
help minimize errors.

74
Continuous improvement is another crucial component of inventory and warehouse
management in BEESCS. Monitoring and reviewing warehouse and inventory
management processes to identify areas for improvement and using data analytics to
optimize warehouse and inventory management processes can help improve efficiency
and reduce errors.
Finally, integrating technology such as warehouse management systems, inventory
management software, and transportation management systems can improve accuracy,
efficiency, and productivity. Using data analytics to identify trends and patterns and
optimize warehouse and inventory management processes can help identify inefficiencies
and optimize processes.

3.2. Recommend for Warehouse Layout

Figure 3.46: Warehouse Layout – L-shaped Layout

BEESCS’s warehouse should be constructed follow L-shape because this layout can be
an effective way to maximize space and improve the efficiency of warehouse operations.

75
 Table 3.1: Pros and Cons of L-Shaped Warehouse

Advantages Disadvantages

- Space efficiency: L-shaped - Limited flexibility: L-shaped layouts

warehouse layouts can optimize the can be less flexible than other
use of space by making the most of warehouse designs, with less room to
available floor space. maneuver and fewer options for
- Easy to organize: The layout can reconfiguring the space if needed.
help to make it easy to organize the - Potential bottlenecks: If the layout is
warehouse, with the L-shape not carefully planned, an L-shaped
providing a clear separation of warehouse can create bottlenecks,
different functions and making it especially at the junction of the two
easier to allocate areas for storage, wings.
packing, and shipping. - Reduced accessibility: In some cases,
- Efficient material handling: With an L-shaped layout can make it more
the L-shape layout, it's possible to difficult for workers to access certain
organize the flow of materials and areas of the warehouse, which can slow
equipment to reduce movement and down operations and increase the risk
minimize the time it takes to move of accidents.
goods from one area to another. - Higher costs: Creating an L-shaped
- Better visibility: An L-shaped layout layout are more expensive than other
provides a clear line of sight for warehouse designs, especially if it
managers, making it easier to involves custom construction or
monitor warehouse activities and modifications to an existing building.
track inventory.

One way to optimize the warehouse layout is to introduce dynamic storage systems.
Dynamic storage systems are automated systems that move pallets and other goods
automatically, eliminating the need for manual movement of goods. The introduction of
76
dynamic storage systems can help to reduce processing times, increase efficiency, and
reduce the need for manual labor.

3.3. Recommendation for Inventory and Warehouse Management in BEESCS

3.3.1. Improving material and technical infrastructure in the warehouse

- Generally, the material and technical infrastructure of BEESCS’s warehouse meets

the requirements to adequately store goods in terms of both quantity and quality.
However, it is necessary to install a camera surveillance system inside the
warehouse to facilitate the receipt of goods and enhance competitiveness with
competitors.
- Regularly inspect and maintain, replace the machinery system at the warehouse:
maintain forklifts, shelf systems for goods, cranes... to avoid breakdowns that can
damage goods and compromise the safety of warehouse personnel.
- Increase security measures: Although theft was the least common error, it is still
important to implement security measures, such as surveillance systems and
employee training programs, to prevent theft and protect inventory. This can help
prevent loss of inventory and ensure a safe and secure workplace for employees.

3.3.2. Organizing workforce development

- Enhancing the skills of workers as well as their ability to interact with customers
to achieve higher job efficiency. Training experienced workers will be more
effective, reducing unnecessary costs and saving time, bringing more success to
the company.
- Training for warehouse staff on professional regulations and warehouse
operations. Short-term training courses need to be planned and organized
regularly, especially for new employees.
- Clearly analyze tasks and responsibilities for each employee and department to
stimulate their creativity and interest in their work. This will make employees
more attached to their work or the company's upcoming plans.

77
 - On-the-job training needs to be emphasized and incorporated into the training
process. Encourage, develop, and create conditions for group activities. Promote
professional exchange of information between departments within the company.
- Develop organized and labeled storage system: Misplacement of items was the
most common error in inventory and warehouse management. To address this
issue, it is recommended to implement an organized and labeled storage system.
This can include using barcode scanning technology or automated storage and
retrieval systems, which can improve accuracy and reduce the time and effort
needed to locate items.
- Develop proper handling procedures: Damaged items accounted for a quarter of all
errors. To mitigate this issue, it is important to develop proper handling
procedures, such as using appropriate packaging and transportation methods,
providing adequate training to employees, and conducting regular inspections to
identify and address any issues.

3.3.3. Development IT system

Invest in inventory management systems: Inaccurate inventory records and overstocking

were both common errors. To address these issues, it is recommended to invest in
inventory management systems that allow for real-time tracking and accurate record-
keeping. This can help prevent stockouts or overstocking, leading to improved customer
satisfaction and operational efficiency.

Implement demand forecasting techniques: Understocking was identified as a less

frequent error but can still negatively impact customer satisfaction and result in lost sales.
To address this issue, it is recommended to implement demand forecasting techniques to
ensure adequate stock levels are maintained, leading to improved customer satisfaction
and reduced inventory costs.

78
3.3.4. Improve coordination between warehouse and transportation.

Communication: Establish clear and open lines of communication between the warehouse
and transportation teams. Ensure that both teams have a clear understanding of each
other's roles, responsibilities, and timelines. Use technology such as email, phone, or
messaging apps to facilitate communication.

Collaborative Planning: Involve both the warehouse and transportation teams in the
planning process. Consider factors such as transportation schedules, warehouse capacity,
and shipment volumes when planning shipments. Collaborative planning can help
identify potential issues early, prevent delays, and improve overall efficiency.

Real-Time Tracking: Use technology such as GPS tracking or radio frequency

identification (RFID) to track shipments in real-time. This technology can help both
teams stay informed about the location and status of the shipment and make any
necessary adjustments to schedules or delivery routes.

Efficient Data Sharing: Ensure that both the warehouse and transportation teams have
access to up-to-date information about inventory levels, shipment volumes, and delivery
schedules. This can be achieved through the use of a centralized data management system
that both teams can access.

Performance Metrics: Establish performance metrics to track the efficiency and

effectiveness of both the warehouse and transportation teams. These metrics could
include on-time delivery rates, order accuracy, and shipment damage rates. Regularly
review these metrics and provide feedback to both teams to help them improve their
performance.

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 CONCLUSION

During my internship at BEESCS, I observed that there were some errors in the
warehouse management process and the management structure was not following the
principles, leading to loss and damage of stored products. Issues such as missing items
and incorrect product labeling still occurred during operations, which affected the overall
process.

However, the warehouse itself was spacious and well-ventilated, making the process of
importing and exporting goods convenient. The process of loading and unloading goods
into the warehouse was also facilitated. In addition, the technical infrastructure of the
warehouse was quite complete, and BEESCS had invested in modern and high-quality
equipment to improve the storage and transportation capabilities of the warehouse. The
strict management of document and goods circulation, along with the support from the
Odoo software, helped the warehouse administrator to effectively control the operations
of BEESCS's Hanoi branch warehouse and other warehouses in the system.

Improving warehouse management in any company is extremely important and greatly

affects the production and business efficiency of the company. Although there are still
some limitations, overall, the operation of BEESCS's warehouse has significantly reduced
logistics costs for the company. With the continuous efforts of all employees in the
company, it is hoped that the company will continue to achieve success in the coming
years.

Researching the topic "Inventory and Warehouse Management in Bee Supply Chain
Solutions Company Limited" is a precious opportunity for the author to learn, study, and
synthesize theory and practice to improve the quality of research and learning at the
master's level, which will lay a foundation for future research work. The current situation
of warehouse management at BEESCS is also a common issue in the logistics industry in
Vietnam. Therefore, the contributions and feedback from this thesis will also be useful
for businesses and manufacturers throughout the country in warehouse management.

80
Finally, I would like to sincerely thank Prof. Do Tien Minh and all the colleagues at the
company who helped and provided opportunities for me to complete this internship
report. I hope to receive comments and suggestions from the professors to help me
improve the report and make it better.

81
 REFERENCE

1. Shing Collage. (2020). Inventory and Warehouse Management.

2. Bhushan Sudhaker, Rajesh Chowdhary and Clemet Sudhakar. (2015).
Logistics and Supply Chain Management). Pondicherry University
3. Gwynne Richards. (2011). Warehouse management. Kogan Page Limited
4. Robert Adzija and Michael Kukhta. (2000). Introduction to Logistics. Third
Party and Fourth Party Logistics.
5. Scott Keller, Brian Keller. (2013). The definitive guide to warehousing:
managing the storage and handling of materials and products in the supply
chain (3e) by the advice of supply chain management professionals. Pearson
FT Press.
6. Internal Documents of Bee Supply Chain Solution Company Limited (2022)
7. How a small company can become a top 6 logistics firm and CEO Bee
Logistics' dream of 20,000 billion VND”. (2022).
8. John J. Coyle, Edward J. Bardi, C. John Langley. (2003). Management of
Business Logistics: A Supply Chain Perspective. South-Western College
Pub.
9. https://www.odoo.com/vi_VN

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 APPENDIX

ID Document CODE

1 Notification of goods arrival BM.WH.01.01

2 Pre-receiving goods inspection form BM.WH.01.02

3 Non-conforming/excess/missing goods report BM.WH.01.03

4 Goods receiving form BM.WH.01.04

5 Pallet tag BM.WH.01.05

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QT.WH.01

84
QT.WH.02

85
QT.WH.03

86
QT.WH.04

QT.WH.05

87