Optimizing Warehouse Management and Distribution Through Automated

Systems.
CASE: CARGO CENTER LIMITED

Rony Kanti Dey

Master of Business Administration

Pre-task Spring 2024

International Business Management

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ABSTRACT
Tampereen ammattikorkeakoulu
Tampere University of Applied Sciences International Business Management
Rony Kanti Dey
Optimizing Warehouse Management and Distribution Through Automated
Systems.
Case: CARGO CENTER LIMITED
Master's pre task 51 pages, appendices 2 pages March 2021
This master's thesis was done to find out the existing problems This thesis digs into the issues
posed by current warehouse management and distribution systems and presents a comprehensive
solution through the integration of automated technology. The logistics business is experiencing a
growing need for simplified and efficient operations, which has led to an investigation of innovative
solutions to tackle current inefficiencies.

The process entails a careful examination of the state-of-the-art warehouse management

techniques, pinpointing areas prone to delays, mistakes, and bottlenecks. The study then looks at
how automated systems, such as robotics, AI, and Internet of Things gadgets, can be used to
optimize several facets of warehouse operations. A thorough analysis is conducted on the
application of these technologies, taking into account aspects like affordability, scalability, and
adaptability to various warehouse structures and sizes.

The study's main conclusions point to a significant increase in overall operational effectiveness, a
decrease in human error, and improved real-time tracking capabilities. In addition to speeding up
order fulfilment, automated systems also significantly lower operating costs and boost customer
satisfaction.

This thesis offers a road map for the effective integration of automated technology into warehouse
management and distribution procedures, which adds significant insights to the logistics sector.
The results highlight how crucial it is to adopt new technologies to remain competitive and satisfy
the ever-increasing needs of a market that is changing quickly.

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 Table of Contents
PAG
PARTICULARS E NO.
Title Page 5
Abstract 5
DC Operations 7
| 1.1 Significance of Warehouse Management 7
| 1.1.1 Warehouse Management Importance 7
1.1.2 Challenges in Traditional WMS 8
1.2 Problem Statement 9
1.3 Objectives of the Study 9
1.4 Scope of the Study 10
1.5 Significance of the Study 10
Chapter 2: Literature Review | 15 | 11
2.1 Overview of Warehouse Management Systems... | 16 |
2.1.1 Traditional WMS Overview | 16 | 12
2.1.2 Limitations of Traditional WMS 12
2.1.2 Limitations of Traditional WMS | 18 | 12
2.2 Automation in Warehouse Management | 20 | 13
2.2.1 Automated Systems Overview | 20 | 13
2.2.2 Studies and Implementations | 22 | 14
2.3 Benefits of Automation | 25 | 15
Chapter 3: Methodology | 28 | 15
3.1 Research Design | 29 | 16
3.2 Data Collection | 30 | 17
3.3 Data Analysis | 32 | 65
3.3 Data Analysis | 32 | 15
| 15
| 7.2 Conclusions | 58 | 16
| 7.3 Recommendations | 60 | 17
| References | 62 | 65

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Chapter 1: Introduction
1.1 Background

Cargo Center Ltd. is a prominent cargo management and handling firm in Bangladesh, offering
tailored services for both internal firms and external organizations. Currently serving both internal
firms (EFL, FOL, WAC, ULL, CFL, APS, & BIL) and external organizations (CEVA, FITS, FSL & B-
Tex), Cargo Center specializes in adjusting to the unique requirements of each consignee

1.2 DC Operations

Cargo Center efficiently runs both inbound and outbound operations simultaneously within its
Distribution Center (DC). The operations are divided into two major functional areas, ensuring a
smooth and intelligent workflow.

1.3 Inbound Activities

Inbound activities involve the receiving, processing, and storing of shipments for outbound
formalities. This section encompasses various activities such as receiving shipments, challan room
activities, and weight updating processes.

1.4 Receiving Shipments & Challan Room Activities

The process involves ensuring the accuracy of documents and receiving shipments through a
series of steps, including the verification of required documents and addressing challenges faced
in the challan room.

Finding upon Unloading token is

everything okay issued to get the
& satisfying shipment unloaded
Shipper Challan room person
reports to receive & check all the
challan room required docs as per
with docs consignee & SOP

Finding anything
wrong or missing

CRM will advise Notifying mail will

with the required be sent to the
or revised docs or concerned CRM
solution with details

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1.5 Weight Updating Activities

A crucial part of inbound operations, weight updating activities involve a meticulous process of
updating weight and dimensions in the system. The accuracy of unloading tokens and proper
closure of shipments are essential steps.

2. Selecting ++++ 4. Inputting

1. Assigning an 3. Taking weight
+assigned required data
Unloading token at & dimension
HAWB/booking and dimension
Bay point through physically
from weighing into WMS as
DCMS. through DCMS.
scale. found.

8. Preparing 7. Transferring 6. Going to cargo 5. Clearing &

complete weight weight details into receive list in closing a token
sheet with whole SOL after perfectly DCMS to transfer once it is
set of required checking updated weight details successfully
docs & tally. data. into SOL. done.

9. Taking picture of 10. Sending & Finding any problem at any

dimension, shipment & storing the level of work relating to
scanning data of shipment in the WMS or DCMS, for
solution
shipment where it is designated solution, please
applicable. storage area. communicate innoweb
team immediately and CRM
for shipment related issues.

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1.6 Quality Controlling & Accuracy Management

Quality control plays a pivotal role in ensuring that weight and dimension details are accurate. This
step involves rigorous checks, corrections, and reporting discrepancies to maintain accuracy.

2. Checking SOL has been 3. Checking dimension of

1. Checking gross weight &
updated as required as each shipment has been
total carton quantity of each
per the documents. updated as per weight
booking.
sheet.

6. Finally, complete 5. Sending SRF, revised 4. Checking dimension in SOL

inspection putting signature FCR, picture or has been updated as per
of responsible person with a dimension of carton PO/Style, no shortage or
QC seal on the weight sheet. once it is required. surplus of carton in PO/style.

SOLUTION

Going for solution immediately finding upon any

problem because it is very urgent for us to solve.

Chapter 2: Outbound Activities

2.1 Introduction

Outbound activities focus on the movement of goods from the Distribution Center to the Airport.
Various workstations, such as controlling PC, sticker printing, and C&F coordination, contribute to
efficient outbound operations.

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2.2 Activities of Controlling PC

The controlling PC acts as the centralized hub overseeing and coordinating all activities. It
manages loading plans, communicates, and resolves problems, ensuring a smooth flow of
operations.

2.3 Receiving & Updating Loading Plan/Advice

The PC controller receives and updates loading plans, playing a crucial role in maintaining
communication and solving issues between different teams and units.

2.4 Communicating & Solving Problems

Effective communication, both inbound and outbound, is vital for problem-solving. The PC
controller facilitates communication within the team and with external partners, ensuring prompt
solutions.

2.5 Loading Activities & Formalities

The loading process is a critical part of outbound activities. This involves following a set plan and
procedures for efficient loading, ensuring accuracy and adherence to cargo handling guidelines.

3. Communicating &
1. Receiving 4. Arranging
2. Updating all taking advice from
loading plan cargo forwarding
the released our APT colleagues
from CRM formalities as the
plans in our for loading &
with priority requirement of
reporting file. dispatching
& time line. APT.
guidelines.

Communicating CRM 6. Updating

7. Sending 5. Printing
through mail and over plan cargo
updated all the master sticker
phone for solution if report after
Solu required as per asking
we get any problem at forwarding
tion reports before shipment by
any working level or shipment to
a shift end. APT.
points. APT.
2.6 Printing Master Sticker

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Printing master stickers is a service provided for identifying freight efficiently. This involves a
systematic process to generate and attach labels to shipments.

2.7 C&F Coordination & Customs Formalities

Collaborative coordination with Customs and Freight (C&F) agents is essential for efficient
customs clearance. The flow chart illustrates the steps involved in completing customs formalities.

2.8 Issuing Loading Challan & Dispatching

The final step in outbound activities is issuing a delivery challan for dispatching shipments to the
Airport. The process includes creating a delivery challan with accurate details for a smooth
handover.

2. Strat loading and

1. Create 3. Updating 4. Finished
updating all the
challan with challan as per loading &
required
the desired the recorded Confirming
information in
master/s. tally. challan.
challan.

6. Taking 7. Handover the Finding upon any

5. Extracting
authorized final challan copy problem
challan copy
signature on in the hands of communicate
from system
challan copy for driver to go to Innoweb team for
for print.
approval. Airport. immediate solution.

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Chapter 3: Methodology
3.1 Research Design

The research design outlines the approach used for the study, providing insights into the
experimental or case study methodology employed.

3.2 Data Collection

Details the methods used for data collection, including interviews, surveys, and case studies, to
gather relevant information for the study.

3.3 Data Analysis

Describes how collected data will be analyzed, ensuring a systematic and insightful interpretation
to draw valid conclusions.

This structure provides a comprehensive overview of the research and operations at Cargo Center
Ltd., emphasizing the importance of both inbound and outbound activities in the cargo
management process.

1.1 Significance of Warehouse Management and Distribution in Supply Chain Operations:

Warehouse management and distribution play a pivotal role in ensuring the smooth operation of
supply chains. Efficient warehouse management is crucial for several reasons. It aids in
maintaining optimal inventory levels, reducing lead times, minimizing costs, and enhancing overall
customer satisfaction. Additionally, an effective distribution system ensures timely delivery of
products to the end consumer, fostering customer loyalty and trust.

Challenges Faced by Traditional Warehouse Management Systems:

Traditional warehouse management systems encounter several challenges, including:

1. Inefficient Processes: Manual processes can be time-consuming and error-prone, leading

to inefficiencies in managing inventory, orders, and shipments.
2. Limited Visibility: Lack of real-time visibility into inventory levels and warehouse
operations can result in inaccurate stock information and delayed decision-making.
3. High Labor Costs: Reliance on manual labor for tasks such as order picking, packing, and
inventory tracking can contribute to high operational costs.
4. Scalability Issues: Traditional systems may struggle to adapt to the growing demands of
an expanding business, leading to scalability issues.

1.2 Problem Statement:

The thesis aims to address the challenges faced by traditional warehouse management systems,
emphasizing the urgent need for automation to enhance efficiency, accuracy, and overall supply
chain performance.

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1.3 Objectives of the Study:

The research aims to:

1. Investigate the limitations of traditional warehouse management systems.

2. Evaluate the role of automation in overcoming these limitations.
3. Assess the impact of automated systems on warehouse management and distribution
efficiency.

1.4 Scope of the Study:

The study will focus on the implementation and impact of automation in warehouse management
systems, specifically addressing robotics, IoT, sensor technologies, and artificial intelligence. The
research will encompass various industries to provide a comprehensive view.

1.5 Significance of the Study:

This research contributes to existing knowledge by highlighting the transformative potential of

automation in warehouse management. The findings will guide businesses in understanding the
benefits of adopting automated systems, thereby improving supply chain efficiency and customer
satisfaction.

Chapter 2: Literature Review

2.1 Overview of Warehouse Management Systems (WMS):

This section will provide an insight into traditional WMS, outlining their functions, features, and
limitations.

2.2 Automation in Warehouse Management:

Explore existing automated systems, including robotics, IoT, sensors, and artificial intelligence, and
review relevant studies and implementations.

2.3 Benefits of Automation:

Discuss the advantages of automation, such as improved accuracy, reduced operational costs,
enhanced efficiency, and better decision-making capabilities.

Chapter 3: Methodology

3.1 Research Design:

Describe the research design, emphasizing the case study approach to assess real-world
implementations of automated warehouse systems.

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3.2 Data Collection:

Explain the methods, including interviews, surveys, and case studies, used for collecting data on
the implementation and impact of automation.

3.3 Data Analysis:

Outline the data analysis techniques, including qualitative and quantitative methods, to draw
meaningful conclusions from the collected data

Conclusions: Cargo Center Ltd. emerges as a key player in the cargo management
and handling sector within Bangladesh. They also talked about how to properly
organize business processes in the warehouse. The fact is that there is no universal
method, everyone decides for himself what he should do in relation to his
warehouses in this or that situation. However, the generally accepted and very
important steps are to determine the type and size of the warehouse depending on
the needs, hire the right people, and have a verified plan of all processes, such as
organizing the reception of goods, their placement, packaging, and dispatch.

Recommendations: In light of the challenges identified and the evolving landscape of

cargo management, Cargo Center Ltd. is advised to consider embracing advanced
technologies and automated systems. This could significantly enhance the overall
efficiency, accuracy, and adaptability of its operations, ensuring a seamless
experience for both internal and external clients.

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9 References

Abby Jenkins. 2020. What is Warehouse Management? Benefits, Processes, & Strategies. [Online]
Available at: https://www.netsuite.com/portal/resource/articles/erp/warehouse-management.shtml
[Accessed 12 September 2022].

Alec Porco. 2022. Creating a Competitive Advantage Through Warehousing. [Online] Available at:
https://www.wavepoint3pl.com/2022/03/09/creating-a-competitive-advantage-through-warehousing/
[Accessed 12 September 2022.

Syed Ammar Arshad. 2021. Warehousing: The crucial link in modern supply chains [Online] Available
at: https://www.maersk.com/news/articles/2021/09/29/warehousing-the-crucial-link-in-modern-supply-
chains [Accessed 10 September 2022].

Sylvia Marak. 2018. Top Warehouse Management System Benefits and More. [Online] Available at:
https://www.selecthub.com/warehouse-management/warehouse-management-system-software-
benefits/ [Accessed 10 September 2022].

Appendices:

Supplementary materials, such as survey questionnaires, interview transcripts, and additional data,
are included in the appendices section. These resources provide further insights and support for
the research conducted in this thesis.

Cargo Center Ltd. stands out in the industry due to its commitment to delivering customized
services. The organization's adaptability and focus on meeting the unique requirements of
consignees contribute to its success in the competitive landscape of cargo management in
Bangladesh.

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