COSCO Improve warehouse

Table of Contents

CHAPTER 1 INTRODUCTION.....................................................................7 1.1 BRIEF DESCRIPTION OF THE COMPANY...............................................7 1.11 History.......................................................................................................... 7 1.12 Business Domain.......................................................................................... 7 1.13 Mission Statement of COSCO.......................................................................8 1.14 Organization................................................................................................. 8 1.15 COSCO Kunming Hongyun Warehouse (CKHW)............................................8 1.2 PROBLEM DEFINITION.......................................................................8 1.3 FISHBONE DIAGRAM..........................................................................9 1.3.1 Cause-effect Diagram Introduction..............................................................9 1.4 RESEARCH OBJECTIVE......................................................................10 1.4.1 Research Sub Goals................................................................................... 10 1.5 RESEARCH QUESTIONS ...................................................................10 Main Question: ................................................................................................... 10 Sub Questions:................................................................................................... 10 1.6 SUMMARY.......................................................................................11 CHAPTER 2 LITERATURE REVIEW............................................................11 2.1 INTRODUCTION...............................................................................11 2.2 LITERATURE OVERVIEW ..................................................................12 2.3 THEORY 1: WAREHOUSE HANDLING..................................................14 2.4 THEORY 2: BASIC WAREHOUSE FUNCTIONS......................................14 2.4.1 Receiving.................................................................................................. 14 2.4.2Putaway...................................................................................................... 14

2.4.3 Storage...................................................................................................... 14 2.4.4 Order-picking............................................................................................. 15 2.5 THEORY 3: DIFFERENT PICKING STRATEGIES IN A WAREHOUSE..........15 2.5.1 Zone picking (One order-Part of assortment)............................................16 2.5.2 Single order picking (One order-Whole assortment)..................................16 2.5.3 Progressive order assembly (Several orders-Part of assortment)..............16 2.5.4 Batch picking (Several orders-Whole assortment).....................................16 2.6 THEORY 4: SHIPPING STRATEGY: INNOVATING FOR SUCCESS.............17 2.7 THEORY 5: VALUE-ADDED WAREHOUSING.........................................17 2.8 THEORY 6: WAREHOUSE-A MULTI-FUNCTION OPERATION CENTER......18 2.9 THEORY 7: WAREHOUSE MANAGEMENT EVALUATION........................18 2.10 THEORY 8: NEW CHALLENGES FOR WAREHOUSE MANAGEMENT ......19 2.11 THEORY 9: WAREHOUSE MANAGEMENT SYSTEM (WMS)...................20 2.12 THEORY 10: INVENTORY CONTROL.................................................21 2.13 THEORY 11: MANAGING SUPPLY CHAIN INVENTORY: PITFALLS AND OPPORTUNITIES...................................................................................21 2.14 THEORY 12: DEMAND MANAGEMENT IN MPC SYSTEM......................22 2.14.1 Forecasting ............................................................................................. 22 2.15 THEORY 13: WAREHOUSE AUTOMATION..........................................23 2.15.1 Defining Electronic Data Interchange (EDI).............................................23 2.15.2 Defining Barcodes................................................................................... 24 2.15.3 Barcode Scanner..................................................................................... 25 2.16 THEORY14 HOW TO REDUCE WAREHOUSE ERRORS......................26 2.16.1 Defining Warehouse Error.......................................................................26 2.16.2 Mispicking................................................................................................ 26

2.17 CONCLUDING REMARKS.................................................................26 CHAPTER 3 METHODOLOGY...................................................................27 3.1 INTRODUCTION...............................................................................27 3.2 INTRODUCTION OF THE FRAMEWORK OVERVIEW...............................27 3.3 RESEARCH QUESTIONS....................................................................28 3.4 RESEARCH DESIGN .........................................................................28 3.4.1 Unit analysis ............................................................................................. 29 3.4.2 Unit of observation.................................................................................... 30 3.4 RESEARCH STRATEGY AND DATA COLLECTION..................................30 3.4.1 Design of Interview.................................................................................... 32 3.4.2 Design of questionnaire............................................................................. 34 3.5 RELIABILITY AND VALIDITY..............................................................36 3.6 SUMMARY.......................................................................................37 CHAPTER 4 RESEARCH FINDINGS...........................................................37 4.1 RESEARCH QUESTION 1...................................................................38 4.2 RESEARCH QUESTION 2...................................................................41 4.3 RESEARCH QUESTION 3...................................................................42 4.4 RESEARCH QUESTION 4...................................................................44 4.5 SUMMARY.......................................................................................48 CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS..............................48 5.1 CONCLUSIONS.................................................................................48 5.2 RECOMMENDATIONS.......................................................................49 5.2.1 Recommendations of Manpower management.........................................49

5.2.2Implant advanced software to improve warehouse planning system.........52 5.2.3 Upgrade warehouse order-picking process................................................53 5.2.4Upgrade checking process..........................................................................56 5.2.5 Implant CRM model to enhance communication and collaboration...........58 5.3 SUMMARY.......................................................................................58 CHAPTER 6 STRATEGIC IMPLEMENTATION..............................................59 6.1 IMPLEMENTATION PLAN..................................................................59 6.1.1 Implant a suitable Information system (Yonyou U8) for planning in CKHW ........................................................................................................................... 60 6.1.2 Upgrade the order-picking process within CKHW......................................61 6.1.3 Upgrade the order-checking process.........................................................62 6.1.4 Enhance communication and collaboration...............................................62 6.1.5 Strengthen employee training...................................................................63 6.2 TIMELINE........................................................................................64 6.3 CHAPTER SUMMARY........................................................................64 CHAPTER 7 REFLECTION........................................................................66

INTRODUCTION
Logistics is playing an important role in all industries nowadays. Companies are constantly trying to find ways to improve performance and warehouse operations which are areas supply chain managers can focus to maximize efficiency and minimize the related costs. To get the most out of the operation, a number of best practices can be adopted to become lean and agile. When considering the level of efforts involved in warehouse operations, the greatest expenditure of effort is in the picking process. To gain efficiencies in picking, the labor time to pick orders needs to be reduced and this can achieved in a number of ways. Companies with the most efficient warehouses have the most frequently picked items closest to the shipping areas to minimize picking time. These companies achieve their competitive advantage by constantly reviewing their sales data to ensure that the items which are stored close to the shipping area are still the most frequently picked.

Chapter 1 Introduction

1.1 Brief Description of the Company

China Ocean Shipping (Group) Company (COSCO), one of the major multinational enterprises in the world, is China's largest and the world's leading Group specializing in global shipping, modern logistics and ship building and repairing, ranking 327th in Fortune Global 500.

1.11 History
Established on April 27th, 1961, COSCO owns and controls over 800 modern merchant vessels with a total tonnage of 56 million DWTs and an annual carrying capacity of 400 million tons. COSCO's shipping lines cover over 1,600 ports in more than 160 countries and regions worldwide, and its fleet size ranks the first in China and the second in the world. COSCO is positioned the first in China and the fifth in the world by container fleet size, and is also the first in the world by dry bulk fleet. It takes a lead in the world for comprehensive strengths of professional bulk, multiplepurpose vessel and special vessel fleet. Oil tanker fleet of COSCO is one of the super tanker fleets in the world. COSCO owns and operates 32 terminals worldwide, with 157 berths offered. Statistics released by Drewry in July 2009 show that throughput of container terminals of COSCO Pacific affiliated to COSCO continues to rank among top 5 places in the world.

1.12 Business Domain

COSCO owns rich logistics facilities and resources. It operates more than 4,000 logistics vehicles, including large cargo transport vehicle with 289 axes and the largest carrying capacity of 8,000 tons, 2.49 million square meters of storage ground and 2.97 million square meters of warehouse. It provides high value-added services for customers in household, chemical, power and financing sectors. Besides, it also provides logistics services for many key projects home and abroad, such as Qinghai-Tibet Railway and Indian power station, setting many world records. COSCO is one of the earliest Chinese enterprises that enter international capital market. Early in 1993, COSCO Investment was listed in Singapore in form of backdoor listing. Currently, it holds controlling shares or shares of listed companies home and abroad including China COSCO, COSCO Pacific, COSCO International, COSCO Investment, COSCO Shipping, COSCO Container Lines, China Merchants Bank, etc. On May 30, 2010, Financial Times, a renowned financial media in the UK, released the latest FT Global 500 list, in which, China COSCO ranked the 450th, the third successive year for China COSCO to be included in the list since 2008.

1.13 Mission Statement of COSCO

We are consolidating and developing our world leading status in shipping, logistics and ship building and repairing by maintaining a relationship of integrity and trust with our customers, employees and partners, yielding best returns for our shareholders, the society and environment.

1.14 Organization
COSCO has formed a global structure with Beijing as the center, 9 regional companies in Hong Kong, America, Europe, Singapore, Japan, Australia, Korea, West Asia and Africa as the radiation points. It owns more than 1,000 companies and branches in over 50 countries and regions and hires 130,000 employees in total, of which, 400 are personnel permanently stationed overseas and 4,000 are foreign employees. Total assets of COSCO have exceeded 300 billion RMB, and overseas assets and income have exceeded half of the total, thus forming a complete global business chain comprising of shipping, logistics, terminal, shipbuilding and ship-repairing businesses.

1.15 COSCO Kunming Hongyun Warehouse (CKHW)

COSCO Kunming Hongyun Warehouse is located in the city of Kunming, China. It has 2500 of physical space with an extra 500 destined to administrative areas. This warehouse is in charge of receiving all the items that are sent to Malaysia, Japan, Brazil, USA and other countries, store them and, when requested by the dealers sent them to the different parts of the country. In total, this warehouse has 47000 items storage where the amount storage for each item is to cover 2 months of demand (COSCO Kunming Hongyun Warehouse, 2012).

1.2 Problem Definition

According to the COSCO Kunming Hongyun Warehouse (CKHW)s record in the year 2012 (table 1.2), four types of key errors occur inside the warehouse as following chart (Table 1.2), which are less quantity, excess quantity, wrong part number, missing item, and others. These errors lead to increased cost to COSCO and delay in delivery to the customers.

Table 1.2: Information from CKHW about the warehouse errors in the year 2012

1.3 Fishbone Diagram

To clarify the problems, a cause-and-effect diagram can be presented:

Figure 1.3: Ishikawa Cause-effect Diagram

1.3.1 Cause-effect Diagram Introduction

It can be shown in this Ishikawa diagram that the main problem is the warehouse errors, and there are four main factors within CKHW logistics activities lead to the warehouse errors. Manpower-- Related personnel professional level and quality of the work. Planning -- Enterprise resource planning and the order-picking route.

 Technology -- Warehouse automation technology include RFID, Barcodes and EDI. Communications Information flow between different departments of CKHW warehouse and the communication between CKHW and their client will be discussed.

1.4 Research Objective

The objective of this research is to provide a better understanding about CKHWs warehouse activities, identify key errors within logistic process, and optimize related warehouse processes to reduce errors.

1.4.1 Research Sub Goals

To improve employees professional standards to reduce human errors. To identify the importance of the warehouse automation system. To optimize and upgrade the order-picking route within CKHW warehouse to reduce picking errors. To strengthen the communication and cooperation within departments, maintain relationship with customers.

1.5 Research Questions

Main Question:
What types of control mechanism and warehouse handling processes should CKHW adopt to minimize cost and eliminate errors?

Sub Questions:
A. How to improve the quality and motivation of employees to reduce human errors? B. Whether the processes for the picking of goods need to be upgraded to increase the efficiency of warehouse activities? C. What kind of checking process need to be done to minimize the technology errors?

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D. What are the best practices to strengthen internal communication within departments and external communication with customers?

1.6 Summary
The thesis Includes 4 chapters and also the references and appendix in the end. Chapter1 is Introduction, in this part a short summary based on the current situation of COSCO warehouse, and introduce the problems that can be identified. The main and sub research questions also will be introduced in the first Chapter. Chapter2 is Literature review. In Chapter2, I will mention several theory resources and methods that can support this thesis include the warehouse management, Causal model and the fish bone diagram. Chapter 3 is the Data analysis. Chapter 4 is the final conclusion and recommendation part, give some advice will be given to solve the current problems and improve the business in the future.

Chapter 2 Literature Review 2.1 Introduction

The Chapter 1 introduced the background information of this research with the statement of the problem and discussion of research purpose. The significance of this research was presented. The Chapter 2 reviews the earlier literature on the issue of warehouse management. The relation between warehouse functions and related possible warehouse errors in each stage is discussed, and the importance of warehouse automation is presented. The present chapter also discusses the connection between warehouse errors and communication factors. The tools of analysis will be described in the end of this chapter.

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2.2 Literature Overview

This section includes the basic theories will be used in this proposal and also the following paper. The theories are mainly about warehousing management and technologies used in inventory management. The research and followed recommendation are built on these evaluated and summarized sources. These sources and works are collected aiming to cover all of the research on this given topic: warehousing management. For the purpose of covering this topic adequately, many technical materials will be applied into the final paper. As for the warehousing section, the Warehouse distribution & operations handbook (Mulcachy, 1994) and World-Class Warehousing and Material Handling (Frazalle, 2002) will provide related professional explanation and inspiration. Additionally, the Contemporary Logistics (Paul R. Murphy, 2008), Fundamentals of Supply Chain Management (Mentzer, 2004) and Logistics and Supply Chain Management (Chritopher, 2005) will provide a general guideline for accomplishing the final paper.

The following table will make a directly overview of the main references that will be applied in the final paper:

Theory
Planning

Reference
1. Strategic business forecasting : the complete guide to forecasting realworld company performance 2. The Inventory Optimization - How to Classify Your Products and Define Your Strategy 3. Picking or Order Preparation 4. Demand Management Supply Chains in Global

Author
1. Shim, Siegel, 1995 2. Clarke, 2008 3. Mulcachy, 1994 4. Evren Ozkaya, 2006

Warehousing warehousing management

and

1. 2. 3.

Warehouse distribution & operations handbook World-Class Warehousing Material Handling and

1. Mulcachy, 1994 2. Frazalle, 2002 3. Moeller, 2001 4. Jacobs, 2008,

Distributed warehousing using Web technology : how to build a more costeffective and flexible warehouse Product Complexity: Theoretical Relationships to Demand and Supply

4.

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Chain Costs

Supply management

chain

1. Fundamentals Management 2. Logistics and Management

of

Supply Supply

Chain Chain

1. Mentzer, 2004 2. Chritopher, 2005 3. Ballou, 2004 4. Killingsworth,2011

3. Business logistics / supply chain management : planning, organizing, and controlling the supply chain 4. Design, analysis, and optimization of supply chains : a system dynamics approach Automation 1. Warehouse Automation What is Really working for Pallet, Case, and Piece-pick Operations 2. How to reduce warehouse errors 3. RFID for Energy and Utility Industries 4. Towards a framework for evaluating the benefits of RFID adoption in supply chains Motivation & performance KPI 1. The Time, Space & Cost Guide to Better Warehouse Design 2. Measuring and performance Managing logistics

1. AberdeenGroup, 2007 2. Kenneth 1997 B. Ackerman,

3. Dipankar Sen, 2009 4. Cremona. L, 2011

1. Maida Napolitano,, 2003 2. John Mangan, Chandra Lalwani, Tim Butcher, 2008 3. Tompkins & Smith, 1998 4. Heizer & Render, 2008 5. RS Kaplan, 2001

3. Warehouse management evaluation 4. Operations Management 5. The Strategy-Focused Organization Table 2.1: Reference List

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2.3 Theory 1: Warehouse Handling

Warehouses are defined as the function of storing a variety of product categories that have a small or large quantity of storage units between the time that the product is manufactured and the time that the product is required by a customer or by a work station within your manufacturing facility (Mulcahy, 1994). This makes the warehouse an important unit in the supply chain, developing several tasks through the different processes that they perform.

2.4 Theory 2: Basic Warehouse Functions

Warehouse functions includes several activities, the most basic ones are described below: Receiving, Putaway, storage, order-picking, and shipping. The correct organization of the warehouse and the correct development of the processes done will help to keep the whole operation in a normal workflow. For the control of this, the warehouse management has to evaluate the performance of following base functions (Heizer & Render, 2008):

2.4.1 Receiving
Receiving is the setup for all other warehouse activities; if units are not properly received it will be very difficult to handle it properly in put-away, storage, order picking and shipping. And if damaged or inaccurate deliveries are allowed then it is likely that damaged or inaccurate units will be shipped. In this process the CKHW warehouse receives the materials and introduces them into the system. The main point here is to register all the incoming material in order to have the knowledge of what is inside the warehouse. An error here can make the company have the wrong concept about what they really have and make them ask material when they do not need it, or lose a sale when the company actually has the material.

2.4.2Putaway
Putaway is the action of transporting units from receiving area to the storage area. Putaway is order picking in reverse. Internal logistics process of warehouse from receipt of a load to when it is stocked in its final destination within the CKHW warehouse. Activities of this process within CKHW warehouse include: inspection, breaking down the load into more separate packaging, determining the appropriate destination, preparing the destination location, transporting the items, and physically stocking them.

2.4.3 Storage
Storage is the activity that provides a unit, with a warehouse location, from where it

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later on can be accessed and picked to an order. After the material is received it has to be located inside the warehouse. If the materials are not well located the warehouse the orders might not be picked, and this will produce problems in the related shipment process.

2.4.4 Order-picking
An employee is required to manage the order-pick activity. The responsibility of the employee, picker, is to pick the correct articles in the correct quantities as specified on an order. The order-pick activities include: listing order-lines, travelling to pickup points, removing units from the pick-up points, verify the inventory reduction and transporting the units to stage or shipping area. For the preparation of the order the warehouse needs to know what they have to offer to the clients. The order picking or order preparation operation is one of a logistic warehouse processes.http://en.wikipedia.org/wiki/Order_picking - cite_note1 It consists in taking and collecting articles in a specified quantity before shipment to satisfy customers orders. It is a basic warehousing process and has an important influence on the supply chain's productivity. This makes order picking one of the most controlled logistic processes. Order-picking process requires employees responsibility and related technic skills to handle it. In this research, the efficiency of order-picking process within CKHW will be discussed in the following chapter and the method to minimize the related possible human errors will be presented.

2.5 Theory 3: Different Picking Strategies in a Warehouse

Picking strategies in a warehouse can be defined by the combination of the number of orders being picked together and how large part of the warehouse being picked from at the same time. There are four fundamental combinations that all modern picking strategies can be derived from. These can be seen in Figure 2.5 Picking methods.

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Figure 2.5: Picking methods

2.5.1 Zone picking (One order-Part of assortment)

This method splits an order into several orders answering to the zoning of the warehouse. The pickers work in a given area, zone, and pick their portion of articles. Then the next picker picks their share, and so on. The size of a zone is determined by the amount of goods being picked in the area and speed of picking relative to storage method. The advantage of this method is that distance per order row is decreased. The downside is that extra sorting is needed.

2.5.2 Single order picking (One order-Whole assortment)

This strategy is characterized by that one picker is responsible for the completion of a full order. The drawback of this strategy is the low picking effectivity due to the long distances the picker must travel. The gain is that errors are reduced since orders are kept separately and no area, or personnel, is needed for sorting.

2.5.3 Progressive order assembly (Several orders-Part of assortment)

Pickers in an organization using progressive order assembly are accountable for picking parts of several orders at the same time. The strategy is often implemented in systems using mechanized conveyors. The major benefits from using this method is that greater volumes and order sizes can be managed and that an order can be completed faster, since a number of persons are picking at the same time.

2.5.4 Batch picking (Several orders-Whole assortment)

When using this method pickers are responsible for completing several orders at a time. Sorting of the goods can either be done during picking or afterwards. The primary benefit of this strategy is the reduction of movement per order row. The

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downside is the added equipment, area and personnel needed for sorting.

2.6 Theory 4: Shipping Innovating for success

Strategy:

The objective of the shipping function is to make sure that order-picks have been correctly performed, in the aspects of articles and quantities. Activities carried out here include scheduling of delivery trucks, sorting, consolidation, packing, addressing manifesting and loading. After collecting the materials they are put together to be sent to each client trying to reduce the size of the shipment. If this process is not well managed, the units could be sent to wrong clients.

2.7 Theory 5: Value-added Warehousing

There are several types of warehouses in the supply chain, with different methods to add value to the operation. The different types of warehouses are (Frazelle, 2002): o Raw material and component warehouses: Keep the raw material near a production point. Work-in-process warehouses: Hold semi-finished products in several points of the production system. Finished good warehouses: Keep inventory of finished products as a buffer point to respond at the variation of the demand. Distribution warehouses: They receive the products from several production points for combined shipment to common customers. Fulfillment warehouses: Respond orders for individual consumers. Local warehouses: Located near the customers for rapid responses, shortening the transportations distance. Value-added service warehouses: Is a warehouse where customizations are done, like labeling, pricing and packaging. key product

o o

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2.8 Theory 6: Warehouse-A function Operation Center

Multi-

Due to significant change in global business environment, a warehouse does not only perform as a storage area, but as a multi-function operation center such as distribution center or packing center (Lam, Choy, & Chung, 2010). This establishes the warehouse as a middle point of the operation that works as a buffer between two processes. This condition makes them as one unit that requires high operating efficiency. This is why the main objectives of the warehouse management are to reduce costs and improve operations time to respond in the best way possible to the customers demands.

2.9 Theory 7: Warehouse management evaluation

To improve the processes the warehouse management must evaluate the following aspects (Tompkins & Smith, 1998): o Customer service: This must be the basic concern of the management. The warehouse management must always try to respond at the highest amount of customers. Control systems: Here the management must evaluate how information is stored, how the system responds to special requests and what material is produced to support the data. Inventory accuracy: It is important that the management has the necessary inventory and that the inventory is well registered so all levels of the supply chain may have the necessary information. Space utilization: It is important to check that the space in the warehouse is being used properly. Labor productivity: It is important to analyze the performance of the personnel and their use of their working time. Facility layout: It is importance to analyze how well is the inventory distributed and the effect that the distribution of the inventory has over the performance of the operators. Equipment methods: In the warehouse, the equipment must be used properly. If

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the equipment is used correctly it will last longer and the operation will be easier and safer. o Equipment utilization: This is calculated by each type of equipment, and it is important for knowing which the key equipment in the operation is. Building facilities: It must be evaluated factors as lighting, personal services (like bathrooms and resting areas), fire protection, dock capability, catering and others. Housekeeping and safety: The safety measures are compared with the standards established by the company and by the government.

Rating these aspects will help the management to have a clear idea of the warehouse performance. This will help to know it actual state, what improvements do and which are the strong and weak points in the operation.

2.10 Theory 8: New Challenges warehouse management

for

Currently, warehouses do more than storing goods: they need to perform more activities and at the same time improve their processes. From this, the warehouse manager it is asked to establish higher objectives as the base to develop the operation. These objectives are (Frazelle, 2002): o o o o o o Execute more, smaller transactions. Handle and store more items. Provide more products and service customization. Offer more value-added services. Process more returns. Receive and ship more international orders.

But at the same time, today the warehouses have (Frazelle, 2002): o o Shorter times to process orders. Smaller margins of error.

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Improving the operation performance may lead to increase in customer satisfaction. Therefore, it is necessary to measure the warehouse operation performance continuously to evaluate the service level and operation efficiency of the warehouse (Lam, Choy, & Chung, 2010). The main objectives of the CKHW warehouse management are to reduce costs and improve operations time to respond in the best way possible to the customers demands. Warehouse errors mean customer dissatisfaction and loss, because the cost of errors in warehousing is high. In order to survive in the competitive environment, CKHW needs to find deficiencies in original management methods, solving problems to improve management capacity and maintain the competitive advantage.

2.11 Theory 9: Warehouse management system (WMS)

For the correct performance of the processes it is necessary a system that allows the warehouse management to organize their personnel and to establish the best flow possible of material through the process. For this, the warehouse management has the support of warehouse management systems.

Warehouse management system provides, store and reports the information necessary to efficiently manage the flow of products within a warehouse, from the time of receipt to the time of shipping (Faber, Koster, & Velde, 2002). This system will allow the warehouse management to sign in the orders they receive from their clients. So with this information they may plan their picking and shipment operations. The main function of WMS is to manage the inventory through tracking the movements of products, storing of materials within a warehouse and sharing accurate inventory information with the client (Kim, K.H., & J., 2008). A warehouse management system (WMS) is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking. The systems also direct and optimize stock put away based on real-time information about the status of bin utilization. A WMS monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations (Piasecki, Dave, 2003).

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2.12 Theory 10: Inventory Control

To define the inventory strategy needs the specifications for all aspects of the inventory management process, including customer service level, forecasting, controlling skill and so on. Each product line or Stock Keeping Unit (SKU) has to be treated differently (Clarke, 2008). Once the products are classified, the strategy can be made for each product segment. In the logistics area, inventory is the set of items that an organization holds for later usage. An inventory system is a set of policies that monitors and control inventory. It determines how much of each item should be kept, when low items should be replenished, and how many items should be ordered or made when replenishment is needed (Chandra Bose, 2006). There are two types of inventory: independent demand goods and dependent demand goods. Independent demand is the demand for end-product items. Dependent demand is the demand for items involved in manufacturing process. Since the case company manufactures independent goods, the demand forecasts use historical demand patterns as reference. There are four reasons to hold inventory (Terry P& Hau L. Lee, 2005): 1. to meet variations in demand; 2. to allow flexible production schedules; 3. as a safeguard against variations in delivery time; 4. to get a lower price. However, there is certain cost can occur in inventory while holding it: 1. the holding cost; 2. Setup costs; 3. Ordering costs; 4. Shortage costs.

2.13 Theory 11: Managing Supply Chain Inventory: Pitfalls and Opportunities
Out-of -stock Out-of-stock is a situation in which the demand or requirement for an item cannot be fulfilled from the current inventory. Dead-stock A term used to describe merchandise that was never sold to or used by consumers before being removed from sale, usually because it was outdated. Dead stock is often warehoused, but it can also subsequently be offered for sale and typically retains its original package and tags Excess-stock Excess-stock is the result of poor management of stock demand or of material flow in process management. Excessive stock is also associated with loss of revenue owing to additional capital bound with the purchase or simply storage space taken.

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Excessive stock can result from over delivery from a supplier or from poor ordering and management of stock by a buyer for the stock any inventory above the minimum manually specified or system-calculated level required supporting production and distribution operations. Excess inventory definitions may include any inventory above zero, above a defined safety stock level, or over a defined number of days supply.

2.14 Theory 12: Demand management in MPC system

Demand management is a gateway module in the MPC system. The company gathers information from the market and makes forecast on the demand and make decisions on the product manufacturing. More specific, "It is in demand management that we gather information from and about the market doing things like forecasting customer demand, entering orders, and determining specific product requirements. Moreover it is through this module that we communicate with our customers by promising delivery dates, confirming order status, and communicating changes. Demand management is also concerned with identifying all sources of demand for manufacturing capacity, including service-part demands, intercompany requirements, and promotional inventory buildup or other needs for pipeline inventory stocking (Vollmann, 2004). Although customer behavior can be influenced by price, advertisement, and sales activity and so on, customers are the final person who made decisions on replenishment products when it comes to the end. Which means that the company needs to get the product specifications from the customers and make them into manufacturing. In the case, cloth is the product sensitive for the seasonal in which they meet a need increases in a specific time of a year. All the demand sources have to be accounted in the MPC system.

2.14.1 Forecasting
Managers need forecasts for making decisions. Managers in a manufacturing environment have to forecast the supply for the demand and the inventory amount. The past trends can be used as reference during the forecasting process. Since cloth demand is seasonal demand, the shifting trend should be available for changing to make sure the forecasting is effective. And forecasting is most effective in short term, because long term forecasting may become inaccurate according to the quick change of customer demand. In this thesis, COSCO Kunming Hongyun warehouse management system (WMS) is a key part of the supply chain and primarily aims to control the movement and

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storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking. This system will allow the warehouse management to sign in the orders they receive from their clients. So with this information they may plan their picking and shipment operations. The main function of CKHWs WMS is to manage the inventory through tracking the movements of products, storing of materials within a warehouse and sharing accurate inventory information with the client. Demand and forecasting management will be discussed in the following chapter to support this research. Forecasting error and demand management mistakes will relate to planning errors directly, which will lead to following three situations: Out-of-stock, excess-stock and dead-stock.

2.15 Theory 13: Warehouse Automation

2.15.1 Defining Electronic Data Interchange (EDI)
Electronic data interchange (EDI) is a method for transferring data between different computer systems or computer networks. It is commonly used by big companies for e-commerce purposes, such as sending orders to warehouses or tracking their order. It is more than mere e-mail; for instance, organizations might replace bills of lading and even check with appropriate EDI messages. It also refers specifically to a family of standards (James L. Burrow, 2008). The warehouse operator, like every other link in the chain, must cooperate in providing the visibility that the owner of the inventory demands. EDI is the mechanical way in which visibility or control in maintained (Kenneth B. Ackerman, 1997). Electronic data interchange in the third-party warehouse includes at least 15 standard transactions. The following table describes a typical transactions format. While the goal from the beginning has been to develop a standard protocol, that goal is far from being reached. Very few EDI users have adopted all 15 of the protocols listed in the table, users report that they frequently must modify their system to meet the needs of a particular client. In 1996, the National Institute of Standards and Technology defined electronic data interchange as "the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media." It distinguishes mere electronic communication or data exchange, specifying, "In EDI, the usual processing of received messages is by computer only.
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Human intervention in the processing of a received message is typically intended only for error conditions, for quality review, and for special situations. For example, the transmission of binary or textual data is not EDI as defined here unless the data are treated as one or more data elements of an EDI message and are not normally intended for human interpretation as part of online data processing." (Burrow, 2008). EDI provides a technical basis for commercial "conversations" between two entities, either internal or external. EDI constitutes the entire electronic data interchange paradigm, including the transmission, message flow, document format, and software used to interpret the documents. EDI standards describe the rigorous format of electronic documents. EDI and other similar technologies save a company money by providing an alternative to, or replacing, information flows that require a great deal of human interaction and materials such as paper documents, meetings, faxes, etc. Even when paper documents are maintained in parallel with EDI exchange, e.g. printed shipping manifests, electronic exchange and the use of data from that exchange reduces the handling costs of sorting, distributing, organizing, and searching paper documents.

EDI and similar technologies allow a company to take advantage of the benefits of storing and manipulating data electronically without the cost of manual entry.EDI documents generally contain the same information that would normally be found in a paper document used for the same organizational function. EDI can be formally defined as the transfer of structured data, by agreed message standards, from one computer system to another without human intervention

2.15.2 Defining Barcodes

The barcode is a technique to sign in data with images made by combinations of parallels bars and spaces of different width. This lines and spaces represent numbers that can be readied and decoded by optical scanners. This code is useful to identify the products in a unique way because allows to connect a product with some specific data gather in a data base. This system is commonly used in all the levels of the supply chain, basically because if we compare and operator introducing the number of the piece and an scanner reading it we get that in average the operator makes 1 error for each 300 numbers introduced, while the scanner makes one wrong reading in a trillion of codes read (Sabater, 2003). Basically, the code works by assigning numbers (according to the system) to a

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certain amount of lines and space, where lines represent in computer language and spaces represent 0. With this, the code in general (see figure 5) has a beginning that helps to define the space between each line to establish how many lines are actually represented in the image. With this first part of the code the system establishes the long that each line has and then translates the information in the code to the numbers or letters that they represent to singing in the computer.

Figure 2.15.2: Linear barcode

2.15.3 Barcode Scanner

For the reading of the barcodes it is necessary the use of some optical scanners that can translate the bars in the specific numbers or letters that they represent. In general, they emit a light that reflects the patterns of the lines in the code that then are transformed in an electrical signal that is transformed in the 0 and 1 that are interpreted by the computer, to give the real information written in the barcode. There are different types of scanners that may need or not to enter in contact with the barcode to read it. A common example of the scanners used can be seen in figure 6.

Figure 2.15.3: Scanner CD3000AK / PS2

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2.16 Theory14 warehouse errors

How

to

reduce

2.16.1 Defining Warehouse Error

In many warehouse operations, errors are the worst problem that management faces. Errors not only mean lost customers in a few situations, an error can mean the loss of a life. Regardless of the consequences, as long as human beings work in the warehouse, there will be some errors. Still, it is managements job to reduce them to the greatest possible extent. In most warehouse operations, a decrease in errors may be the best way to increase overall productivity. One of the best ways to improve productivity is to get every job done right the first time. The cost of errors in warehousing is high, the cost of an order-picking error, for example, has been estimated as ranging from $30 to $70 for each occurrence. These costs are derived by considering the write-offs of undiscovered warehouse shortages caused by picking mistakes, the cost of handling returns, cost of supplemental shipment to replace shortages, cost of receiving errors caused by substitution of the wrong product, correspondence to handle credits and adjustments, and, finally, the almost immeasurable cost of customer dissatisfaction or loss of confidence.

2.16.2 Mispicking
The mispicking errors are those made by the operators that filter through the checking process to the client. These errors refer to the difference between the information given by the warehouse about what they sent and the pieces that the client actually received. In base on that, the objective of analyzing the data that refers to these errors will allow see the main aspects to be improved in the picking and checking processes, which are the main processes to prevent these errors occur.

2.17 Concluding Remarks

The present chapter discussed the definition and functions of warehouse and the relation between warehouse errors and communication factors. The different processes of warehouse activities were found in earlier literature. The warehouse management system and Electronic Data Interchange technologies were also discussed in terms of earlier theories and findings. The hypotheses and conceptual framework with regard to reviews of literature were proposed. The next chapter discusses the methodology used in conducting this research.

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Chapter 3 Methodology
The following chapter focuses on the research methods and discusses the methodological choices that have been made in order to achieve the purpose of the thesis. The chosen data collection method, research question design, interview, and the design of questionnaire are discussed in detail and the reliability and the validity of the thesis is analyzed.

3.1 Introduction
The research is designed to identify the main causes to the warehouse errors and to minimize the warehouse errors by improper warehousing management in order to make CKHW being competitive in Logistics industry is mainly conducted as a qualitative research which will comprise observation, secondary data survey, interviews and literature study approaches. The purpose of the research design is to help designing the system of the collecting data and information in the proper way.

3.2 Introduction of the framework overview.

A good research design will give clear direction on how to collect information properly and easily. There are two main research approaches namely quantitative and qualitative methods. These two research methods are applied in different research project depending on its nature and objective of each research. Base on the nature and objective of this research, the qualitative research will be applied. Qualitative research begins with the assumptions of a problem study. Then the problem study is viewed from an overall perspective of people. After that, all possible theories related to the problem study are searched. Finally, the study of

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the research problem is conducted in order to investigate the prior assumptions. To study the problem, the inquired data and information from the participants are collected and analyzed. At the end, the final written report is provided. The report includes the voices of participants, the reflexivity of the researcher, and a complex description and interpretation of the problem (John W. Creswell, 2012)

3.3 Research Questions

According to the aforementioned part, the objective of this research paper and main questions of this works research can be made. The objective of this research is to provide a better understanding about CKHWs warehouse activities, identify key errors within logistic process, and optimize related warehouse processes to reduce errors. The main question of this research is: What types of control mechanism and warehouse handling processes should CKHW adopt to minimize cost and eliminate errors? In order to answer the main question, the sub-questions are as follows: A. How to improve the quality and motivation of employees to reduce human errors? B. Whether the processes for the picking of goods need to be upgraded to increase the efficiency of warehouse activities? C. What kind of checking process need to be done to minimize the technology errors? D. What are the best practices to strengthen internal communication within departments and external communication with customers?

3.4 Research Design

The research is designed to identify the main causes to the poor warehouse control and to minimize the cost generated by improper warehousing management in order to make CKHW being competitive in Logistics industry is mainly conducted as a qualitative research which will comprise secondary data survey, interviews and sampling research approaches. The purpose of the research design is to help designing the system of the collecting data and information in the proper way. A good research design will give clear direction on how to collect information properly and easily. There are two main research approaches namely quantitative and qualitative methods. These two research methods are applied in different

28

research project depending on its nature and objective of each research. Base on the nature and objective of this research, the qualitative research will be applied. Qualitative research begins with the assumptions of a problem study. Then the problem study is viewed from an overall perspective of people. After that, all possible theories related to the problem study are searched. Finally, the study of the research problem is conducted in order to investigate the prior assumptions. To study the problem, the inquired data and information from the participants are collected and analyzed. At the end, the final written report is provided. The report includes the voices of participants, the reflexivity of the researcher, and a complex description and interpretation of the problem (John W. Creswell, 2012).

3.4.1 Unit analysis

Unit of analysis is the major entity which will be analyzed. In this case, this research chooses Divisions and Departments as the unit of analysis. On the one side, this article will analyze the various systems of different department as groups. Specific numbers of personnel of each group will be involved and information will be collected and analyzed. On the other side, this article also wants to research which of its divisions is the most effective and efficient one, and which is the worst one. Here, the performances of each division will be examined. After that, the information will be aggregated and the integrated data will be analyzed. The unit of analysis refers to the level of aggregation of the data collected during the subsequent data analysis stage. It is necessary to decide on the unit of analysis even as we formulate the research question, since the data collection methods, sample size, and even the variables included in the framework may sometimes be determined or guided by the level at which data are aggregated for analysis. In this research, the problem statement is related to department quality and effectiveness, thus the unit of analysis will be at the department level. In this thesis to reach the objectives, information from 4 departments need to be collected. They are human resource department, planning department, operations department and customer service department. We are comparing different departments in the CKHW organization, then the data analysis will be done at the departmental level - that is, the individuals in the department will be treated as one unit - and comparisons made by treating the department as the unit of analysis. By comparing different errors adopted in the 4 departments within CKHW, the key error can be identified. Individuals in each department will provide personal opinions to help us find the solution solving the main question. This research is to provide methods to improve the current situation of COSCO Kunming Hongyun Warehouse and minimize the warehouse errors. The unit of analysis is the supply chain processes within warehousing and distribution department in this research.

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3.4.2 Unit of observation

Unit of observation is the unit that will collect data. In this article, the researcher will collect data from the warehousing and distribution departments of COSCO Kunming Hongyun Warehouse. The operational and organizational performances, the situation of electronic data interchange technology and management information system, as well as the effectiveness and efficiency of stuffs will be observed.

3.4 Research strategy and data collection

Research strategy of this thesis is quantitative research. The data collection methods are desk research and field research. The deductive approach process begins with development of a theory and a hypothesis, followed by information collection and a research strategy to test the hypothesis. This paper reviews three data collection methods: observation, survey, interview, and organization documents. Descriptions of various techniques used for data collection provide readers with practical approaches to consider when developing technical and operational management methods within COSCO Kunming Hongyun Warehouse. Observation method used in this work, researcher got into about the current warehouse errors within COSCO Kunming Hongyun Warehouse to identify the possible caused factors. It becomes a scientific tool for research when we use observation in a systematic manner with a scientific attitude (Ranjit Kumar, 2010). It implies accurate watching of phenomena as they occur in nature with regard to cause & effect relationship. In observation the researcher goes to places where the event is taking place & record the finding. In this research, survey methodology as a scientific field seeks to identify principles about the data collection instruments, statistical adjustment of data, and data processing, and final data analysis that can create systematic and random survey errors. (Groves, R.M, 2009) The qualitative research interview seeks to describe and the meanings of central themes in the life world of the subjects. The interviewer can pursue the in-depth information around the topic based on their stories. (Doorewaard, 2010) The interviews will be organized in order to gather the inquired information. In this case, 10 interviews will be taken to answer the sub questions, and 50 surveys involved for this research. A number of participants in each question are varies due to the size of the company; how many employees currently work in the CKHW, what departments are involved in.

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Interview will get a deep answer or even an effective solution of the research questions. On the other hand, questionnaire survey will get a wide answer from the organization manager, first line employees and the client of CKHW. There are many different methodologies used in various types of research and the term is usually considered to include research design, data gathering and data analysis. Observation Observation is the basic method of getting into about any event. It becomes a scientific tool for research when we use observation in a systematic manner with a scientific attitude (Ranjit Kumar, 2010). It implies accurate watching of phenomena as they occur in nature with regard to cause & effect relationship. In observation the researcher goes to places where the event is taking place & record the finding. Survey In this research, survey methodology as a scientific field seeks to identify principles about the data collection instruments, statistical adjustment of data, and data processing, and final data analysis that can create systematic and random survey errors. (Groves, R.M, 2009) Interview The qualitative research interview seeks to describe and the meanings of central themes in the life world of the subjects. The interviewer can pursue the in-depth information around the topic based on their stories. (Doorewaard, 2010) The interviews will be organized in order to gather the inquired information. In this case, 10 interviews will be taken to answer the sub questions, and 50 surveys involved for this research. Details are shown in table 1.6. A number of participants in each question are varies due to the size of the company; how many employees currently work in the CKHW, what departments are involved in; what kinds of questions will be asked, and who the participants of those questions are. The following table explains how the research questions will be answered and who the participants in the interviews are in this case: A. Question: How to improve the quality and motivation of employees to reduce human errors? Methods: Interview , survey and literature review Participants: Interview the manager of HR department and 5 employees prefer younger employee who has the knowledge in logistics field. Survey 30 employees and 4 managers. B. Question: Whether the processes for the picking of goods need to be upgraded to increase the efficiency of warehouse activities?

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Method: Interview Participants: Interview planning manager and 4 employees of order-picking and order-taking group. C. Question: What kind of checking process need to be done to minimize the technology errors? Methods: Secondary data analysis, survey and interview. Participants: Interview 4 managers and 6 employees. Survey 30 employees and 4 managers. D. Question: What are the best practices to strengthen internal communication within departments and external communication with customers? Methods: Interview and survey. Participants: Interview customer service manager, survey 30 employees.

3.4.1 Design of Interview

Interviews are basic fact-finding interactions where one individual asks questions while another responds. By conducting interviews, researchers obtain a clearer understanding of an individuals background and experience. Knowledge of this experience helps the researcher better understand the context for an individuals behavior and decision-making rationale (Seidman, 1998). Depending upon the type of information sought, interviews can be informal or formal. Informal interviews elicit purposeful conversation by soliciting responses that may lead the interview down an unplanned or unexpected path. Compassion, empathy, flexibility, and reciprocity from the interviewer to the interviewee are necessary in order for informal interviews to succeed (Seidman, 1998). According to Patton (1987), interviewing becomes an art and science requiring skill, sensitivity, concentration, interpersonal understanding, insight, mental acuity, and discipline. Using informal interviews, researcher can gather data to enhance the understanding of current situation of COSCO Kunming Hongyun warehouse. Structured interviews are done with 4 managers and 2 office employees and 4 frontline employees. The aim of this approach is to ensure that each interview is presented with exactly the same questions in the same order. This ensures that answers can be reliably aggregated and that comparisons can be made with confidence between sample subgroups.

There are 10 questions about the warehouse errors and related activities, and their answers are recorded to help find the possible solutions to optimize CKHW

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warehouse in the future. Interviewees: o HR Manager (Mrs Sun) of COSCO Kunming Hongyun Warehouse, before the interview, we came to an agreement that she stands for her own personal point of view only Planning Manager and company coach of integrated logistics department (Ph.D. Zheng) of COSCO Kunming Hongyun Warehouse. Operations Manager (Mr Liu) of COSCO Kunming Hongyun Warehouse Customer Service Manager (Mr Zhang) of COSCO Kunming Hongyun Warehouse 2 office employees: both of come from integrated logistics department one is responsible for delivery and related works; the other one is responsible for dispatch activities. 4 staffs are randomly selected from the frontline employees, they are: warehouse supervisor (Mr Li), fork truck driver (Mr Wang), new hire (Mr Zhou) and (Mr Chen)

o o

Interview questions: What is the average staff educational status and age within the COSCO Kunming Hongyun Warehouse? Explanation: Understand the basic situation of employees. From your perspective, why was the human error made within logistics departments within in our warehouse? Explanation: Research the possible reasons lead to human errors. Please share me the method you used to collect the necessary information (order details, client requirement, schedule, etc.) to complete your mission within the warehouse. Explanation: Research the information flow of warehouse activities within CKHW. How is the information shared with other departments? In your experience, which is the most effective way of sharing information? Explanation: Look for how they build mutual trust, respect and cooperation. What are the most frequent non-human mistakes or errors occur within the COSCO Kunming Hongyun Warehouse?

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Explanation: Identify the key errors of the warehouse handling process. In your experience, which factors are most likely leading to the wrong part number errors? Explanation: Research the most frequent error type and relate to the key errors. What are the main steps within the current order-picking process? From your perspective, is there anything needs to be improved to reduce the possible errors? Explanation: Research the order-picking process and reduce the human errors and technology errors.

What kind of value-added logistics service does CKHW provide to maintain the relationship with client? Explanation: Research the physical handling value-added logistics service of revenue growth.

3.4.2 Design of questionnaire

In this research, survey methodology as a scientific field seeks to identify principles about the data collection instruments, statistical adjustment of data, and data processing, and final data analysis that can create systematic and random survey errors. (Groves, R.M, 2009) The following questionnaires survey 35 participates include 5 department managers and 30 employees who are random selected from the COSCO Kunming Hongyun Warehouse on the day 19 June 2013. The questionnaires consist of 4 dimensions: planning, communications, technology, and manpower, which are closely related to the main issues of research questions.
COSCO Questionnaire Age: A .few than 30 Gender: Female B. 3050 C. Above 51

Male B. 6 months to 1year C. More than 1

Working age: A. Less than 6 months year Working position: A. HR manager manager D. Staff

B. Planning manager

C. Customer service

1.1 What is the inventory turnover rate in the warehouse? A. Once a week B. Once a month C. Once a season D. Once a half year 1.2 How many in/outbound movements of goods per day in average? A. <1 B. 1-5 C. 6-10 D.11-20 D.>21

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1.3 How often does the Picking Error happen? A.Several per day B.Several per week C.Several per month

1.4 How much time does from receiving order to loading on truck spend? A. Less than 30 mins B.30-60 mins C.60-90 mins D.More than 90mins

1.5 Which of the following factors has the most significant impact on warehouse efficiency? A. Manpower B.Information updates E.Order-checking C.Classification D.Order-picking

1.6 Is the capacity of staff enough to the growing business? A.Enough B.Not enough

2.1 What is the main way to receive orders? A.Online B.Telephone C.Face to face

2.2 Do you agree employees are capable of well handling the required technical skills in the related operating process? A.Yes B.No C.I have no idea

2.3 Which is the most frequent of the following technology errors occurred in current warehouse handling processes? A.Data errors B.RFID errors C. Picking errors

3.1 Do you think the current information system is efficient to handle the order changes? A.Yes B. No C. I have no idea

3.2 How often do you get complaints from your partners or customers? A.Several per day year None B.Several per week C.Several per month D. Several per

3.3 Is it convenient and fast to contact the partners or customers? 1 2 3 4 5

3.4 Does the organization fast and completely react to the complaints? 1 2 3 4 5

3.5 Do you think the communication among departments is efficient and effective? 1 2 3 4 5

4.1 How often does the Human errors happen?

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A.Several per day

B. Several per week

C. Several per month

4.2 Whether the employees lack of abilities in their positions? A.Yes B.No C.I have no idea

4.3 How often does the company host the staff training? A.More than once a month B.Once a month E. Less than once a year C.Once a season D.Once a year

4.4 Do you think the current training programs are enough? A.Yes B.No C.I have no idea

4.5 Are these trainings helpful to the related work? A.Yes B.No C.I have no idea

Table 3.4 COSCO Questionnaire

3.5 Reliability and Validity

The issue of reliability and validity is important for the objectivity and credibility of the research. Reliability is the degree to which the finding is dependent of accidental circumstances of research (Kirk and Miller, 2006).The reliability describes whether the researcher would expect to obtain the same finding if he or she tried again in the same way (Perkyl, 2006). Kumar (2010) describe reliability as the ability of an instrument to produce consistent measurement. The instrument is considered to be reliable if the same set of information is collected more than once by using the same instrument under the same or similar conditions getting the same and similar result. According to Silverman (2001, p. 227-8, cited in Perkyl, 2006) reliability is closely related to assuring the quality of recordings and transcriptions and the reliability of the analytic research. The reliability issue when dealing with data gathered through interviews is closely connected with bias. Saunders et al. (2003) mention several forms of bias which can influence the quality of the data. Interviewer bias means certain behavior from the side of the interviewer which can influence received answers. Interviewee or response bias involves unwillingness of the interviewee to disclose some information which in turn can result in incomplete picture about the research topic. Bias can occur also from improperly done sampling (Saunders et al., 2003). In this thesis we tried to minimize interviewee bias by choosing 4 departments which were willing to participate in it and therefore comparatively willing to disclose information. Interviewer bias was minimized by trying to behave as neutral as possible by us and to give the time for interviewees to answer the question uninterrupted.
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Several factors affect the reliability of a qualitative research; the wording of questions, the physical settings, the respondent mood, the nature of interaction and the regression of the instrument. The wording of questions and statements can affect the reliability since the respondents may interpret the questions differently at different times which may result in different responses. The physical setting refers to the change in the settings at the time of the repeat interview which may affect the responses and the overall reliability. The mood of the respondents when responding to the questions may also affect the reliability. Furthermore, the interaction between the interviewer and the interviewee can affect the responses and the respondents attitude towards an issue may affect the reliability (Kumar, 1999). For each department included in this research more than one person was interviewed and therefore the possibility that a respondents personality, mood or specific interpretation of the questions had a significant influence on the gathered data was reduced. However, it should be still noted that answers of each individual respondent cited in this thesis possibly is not always in full accordance to the official opinion of the COSCO Company they represent. It may be difficult to ensure full reliability since both questions and answers can be interpreted differently depending on which positions the respondents have in the department, level of experience and background. To lower the risk of misunderstanding the Methodology respondents answers on the questions given to them, each interview was electronically recorded. The interviews were later transcribed and compiled into the empirical study. The compiled material was sent back to the respondents in order to give each the opportunity to correct the information if something was misunderstood or misinterpreted by us.

3.6 Summary
This chapter mainly discussed the research methodology, the data collection and data analysis methods are discussed. The next chapter presents the results, data analysis and the research results.

Chapter 4 Research Findings

The following chapter presents the findings from the desk research and research. The findings are a result of the conducted interview and survey participates and a summary of the respondents answers. This chapter will start the general information of COSCO Kunming Hongyun Warehouse and continue field with with with
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discussing research findings. Theoretical concepts introduced in chapter 2 will be used to analyze the findings.

4.1 Research question 1

Question: How to improve the quality and motivation of employees to reduce human errors? Answer: The Key performance indicator (KPI) scorecard can be a powerful measurement tool (RS Kaplan, 2001) to allow for assignment of goals and objectives to all individuals and focuses accountability on the relevant individuals and departments. (Table 4.1) It can help ensure that the right measures are utilized and encourage good management. Job-relevant training and practice Good human factors engineering of control systems processes, building facilities and work environment. Appropriate supervision related to the task and process control issues. Strengthen the communication with employees Provide the advanced study opportunity for the key staff. From the desk research of warehouse documents, the measurements of staff performance evaluation within COSCO Kunming Hongyun Warehouse are there indicators: absenteeism, quantity and staff team assessment every year. Some other important indicators of performance are necessary for managers evaluate staffs such as productivity, quality of work, creativity, leadership, and self-Appraisal. Labor productivity is important to analyze the performance of the personnel and their use of their working time. Inventory accuracy (Tompkins & Smith, 1998) is important that the management has the necessary inventory and that the inventory is well registered so all levels of the supply chain may have the necessary information. Table 4.1 Key performance indicator scorecard is presented for CKHW warehouse. Six indicators include absenteeism, process cost, cost, HR, activities, quality and service, and productivity.
Question 1.5 Which of the following factors has the most significant impact on warehouse Answer Manpower (28.6%) Explanation Manpower is the most important resource of a company, high quality and efficient human resource

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efficiency? 1.6 Is the capacity of staff enough to the growing business? Not enough (94.3%)

can maintain competencies.

the

core

Most of participants believe the current employees are not enough. Excessive workload might lead to human errors. Technical skills of RFID and warehouse automation are required for warehouse handling. More than half participants are not confident about the staffs technical skills. Communication channel is good, and there is still room to improve. per Human errors happen very frequently.

2.2 Do you agree that employees are capable of well handling the required technical skills in the related operating process? 3.4 Do you think the communication among departments is efficient and effective? 4.1 How often does the Human errors happen? 4.2 Whether the employees lack of abilities in their positions? 4.3 How often does the company host the staff training? 4.4 Do you think the current training programs are enough?

Yes (48.6%)

Score 4 (68.6%)

Several week (85.7%) Yes (25.7%)

Employees ability need to be improved.

Once a year (82.9%) No (71.4%)

Training opportunities for employees are not enough. To strengthen employee training from an authoritative and professional institution is necessary The effect significant of training is

4.5 Are these trainings helpful to the related work?

Yes (97.1%)

Table 4.1 Questionnaire related to research question 1

Building facilities (Tompkins & Smith, 1998) must be evaluated factors as lighting, personal services (like bathrooms and resting areas), fire protection, dock capability, catering and others. So the practice to improve the work quality and

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reduce the human errors include: keep good building facilities, appropriate supervision related to the task and process control issues, one experienced staff can be the coach of three young staff, supervise their work and give their related training lectures. Strengthen the communication with employees Provide the advanced study opportunity for the key staff. The interview result showed that the average staff educational status within the COSCO Kunming Hongyun Warehouse is high school, and the organization documents indicate that average age of the warehouse is 36.2. In the logistics departments the average age of experienced staff is above 42 and the average staff educational status of them is high school. The average educational status of young staff under 30 years old is Bachelor degree, but their average work year is less than 3 years. A key performance indicators (KPI) scorecard is a solution that allows organizations to manage their organizational performance by linking operations with strategy. Key performance indicator (KPI) scorecard can be utilized at all levels of an organization including executives, managers and staff. In addition, the scorecard establishes accountability to appropriate individuals (Cremona. L, 2011) and enables visibility to up and down an organization from executive management to operational levels. Benefit and advantages of Key performance indicator include: present a compelling picture of performance that is not distorted an individual issue (Cremona. L, 2011), translate strategy into concrete terms and help track its execution encourage the right balance of operational and strategic factors. The correct organization of the warehouse and the correct development of the processes done will help to keep the whole operation in a normal workflow (Frazelle, 2002). For the control of this, the warehouse management has to evaluate the performance of following base functions (Heizer & Render, 2008): Receiving, Putaway, storage, order-picking, and shipping . Even in organizations with successful quality programs, minimizing human error is an ongoing challenge (FDAnews, 2009). Experienced people working on established processes sometimes make costly errors in spite of the most diligent efforts to avoid them. To identify human errors occur in COSCO Kunming Hongyun Warehouse, the researcher learnt the annual report and the work log of March 2012. According to the report, current operational human errors include procedurerelated errors, Human factor engineering related error, supervision related errors, communications related errors and individual errors. The reasons lead to above human errors include: Poor lighting or other Environmental impediments, Fatigue, Communication failures, Excessive workload.

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4.2 Research question 2

Question: Whether the processes for the picking of goods need to be upgraded to increase the efficiency of warehouse activities? Answer: Order-picking process requires employees responsibility and related technic skills to handle it (Mulcahy, 1994). The responsibility of the employee, picker, is to pick the correct articles in the correct quantities as specified on an order. The order-pick activities include: listing order-lines, travelling to pick-up points, removing units from the pick-up points, verify the inventory reduction and transporting the units to stage or shipping area. According to the questionnaire related questions 1.3 to 1.5
Question 1.3 How often does the Picking Error happen? 1.4 How much time does from receiving order to loading on truck spend? 1.5 Which of the following factors has the most significant impact on warehouse efficiency? Answer Several per week 71.4% 60-90 minutes 62.9% Orderpicking 54.3% Explanation Picking error is the most frequent error occurs in warehousing process. To gain efficiencies in picking, the labor time to pick orders needs to be reduced. 19 participants chose orderpicking, researcher will try to find the solution to minimize picking time and re-size the picking flow.

Table 4.2 Questionnaire relative to research question 2

Current picking process (COSCO Kunming Hongyun Warehouse, 2012): o o o o o o Print a label work assignment for each work cycle. In the beginning of the cycle the picker reads the barcode from the work assignment. The system will recognize the picking cycle from the work assignment. The screen shows the first location and the unit number of the item to pick. The picker takes the items from the location in the correct amount. The picker reads the barcode of the items he picked.

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o o

The picker puts the items in the box and reads the barcode from the box (process of transferring the items from the location to the box). Repeat until the end of the picking cycle.

The mispicking errors are those made by the operators that filter through the checking process to the client (Dipankar Sen, 2009). These errors refer to the difference between the information given by the warehouse about what they sent and the pieces that the client actually received. In base on that, the objective of analyzing the data that refers to these errors will allow see the main aspects to be improved in the picking and checking processes, which are the main processes to prevent these errors occur. The events that are considered as mispicking errors are (COSCO Kunming Hongyun Warehouse, 2012): o Wrong part/item number: This is when the item that is sent does not correspond with the one ordered by the client. Less quantity than ordered: This is when the operator marks in the picking note that was a certain amount of that item sent but actually it was sent less. Missing item: This is when an item was allegedly sent, but there is no item received by the client. Excess quantity: Is similar to the case of less quantity but more pieces are sent than those ordered. Other: Any other error that may have been made inside the warehouse when sending the pieces.

4.3 Research question 3

Question: What kind of checking process need to be done to minimize the technology errors? Answer: According to the current checking processes, an upgraded checking process flow is presented as figure 4.3. Checking process (COSCO Kunming Hongyun Warehouse, 2012): o In the sort station the operator reads the barcode of the box and the system
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identifies it content. o o Scan the barcode of one item. In the screen of the scanner will appear the customer to whom the item will be sent. Put the items in the box that will be sent to the customer. Read the barcode of the box that will be sent to the customer. Repeat the process until all the items of the box are relocated to their destinies.

o o o

Checking process ( Chritopher, 2005) The main tool for the realization of this work is a portable barcode scanner. The model of scanner that was acquired in the CKHW warehouse is the Symbol MC-3000 In the figure 4.2.4 can be seen the components of the scanner

Figure 4.2.4: Scanner model Symbol MC-3000 from CKHW

Figure 4.2.5: Picking label of CKHW

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Scan windows: In this area is located the light that emits the scanner to scan the barcodes. Screen: Is the scanners touchscreen in which it can be seen the barcodes lecture and that allows the interaction of the user with the scanner. Indicator LEDs Bar: This light indicates when the scanner is in the process of scanning a barcode Scan buttons: With the use of any of these buttons it is started the scanning process.

This scanner also has a pencil which allows manipulate the screen of the scanner and a battery which gives the autonomy necessary to be used in the warehouse. The program which the scanner is being controlled is done by the departments system of CKHW. This allows that the scanner can be constantly adapted to the requirements of the processes. The upgraded scanner reading processes presented as figure 4.2.2 and 4.2.3, the objective of the upgraded scanner reading processes is to minimize the technology errors and improve the efficiency of picking activities.

4.4 Research question 4

Question: What are the best practices to strengthen internal communication within departments and external communication with customers? Answer Establish the Customer Relationship Management model (CRM) based on the current ERP system database to strengthen communications with departments and customers to achieve a win-win situation. CRM is a model for managing a companys interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support (DestinationCRM.com, 2009). CRM as an Information Integration System can gather customer information coming from across channels into one database effectively, and the customer information database is shared among the various departments in the organization. The customer database contains client basic information, transaction records, order details, the register of delivery, customer feedbacks. Every department manager who participates in the transaction can check and update the latest relevant information.
Question 2.1 What is the main Answer Online Explanation Variety of communication channels

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way to receive orders? 3.1 Do you think the current information system is efficient to handle the order changes? 3.2 How often do you get complaints from your partners or customers? 3.3 Is it convenient and fast to contact the partners or customers? 3.4 Does the organization fast and completely react to the complaints? 3.5 Do you think the communication among departments is efficient and effective?

(68.6%) No (54.3%) Most of participants are not satisfied with current information system, information update speed need to be improved. Not high frequency, establish a customer-centric information system can help reduce complaints. Communication channel need to be upgraded Faster response for complaints is necessary to maintain partner and customer relationship Communication among departments is not efficient enough

Several per month (57.1%)

Score 4 (34.3%) Score 5 (74.3%)

Score 4 (31.4%)

Table 4.4 Questionnaire related to research question 4

The CRM model can help extend collaboration; improve Customer Satisfaction, Customer Experience; and Automate, Connect and Extend reach. The advantages of CRM systems integrate demand driven supply chain applications improving resource utilization, productivity, branded customer communities to nurture and extend reach, enhancing customer experience, voice of customers through social channels augmenting CRM, and applications driving customer self-service and increasing customer experience. Interview result shows that there are several communication methods with customers, such as face to face contract, indirect contact from partners, telephone, email, and Internet. Therefore Information consistency became a challenge among different departments. CRM can provide consistent data and the latest customer information gathering from above multi-channel. As a Customer-centric system, our clients can choose the communication channel according to their own preferences. CRM provides sales force automation functions (SFA). SFA aims basically to enhance automation degree of sales activities and improve work efficiency. The functions of SFA model typically includes calendaring and scheduling, contact and account

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management, commission management, business opportunities and delivery channel management, sales forecasting, the proposed generation and management, pricing, field division, expense reports, etc. Currently, warehouses do more than storing goods: they need to perform more activities and at the same time improve their processes. From this, the warehouse manager (Frazelle, 2002) it is asked to establish higher objectives as the base to develop the operation. The objectives include: offer more value-added services, smaller margins of error, Shorter times to process orders. Improving the operation performance may lead to increase in customer satisfaction. Therefore, it is necessary to measure the warehouse operation performance continuously to evaluate the service level and operation efficiency of the warehouse (Lam, Choy, & Chung, 2010) Forecasting error and demand management mistakes will relate to planning errors directly, which will lead to following three situations: Out-of-stock, excess-stock and dead-stock.The figure (Evren Ozkaya, 2006) shows the position of demand management in MPC system.

Figure 4.4.1: Demand management in MPC system

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The purpose of demand management is to coordinate and control all sources of demand so the supply chain can be run efficiently and the product delivered on time. The resource of demand can be divided into two parts: dependent and independent. The dependent demand is the demand for a product or service caused by the demand for other products or services. The independent demand is the demand cannot be derived directly from that of other products (Jacobs, 2008) . Demand management is a gateway module in the MPC system. The company gathers information from the market and makes forecast on the demand and make decisions on the product manufacturing. More specific, "It is in demand management that we gather information from and about the market doing things like forecasting customer demand, entering orders, and determining specific product requirements. Today's enterprises are creating value networks that take a more global view of risk and opportunity, integrating multi-enterprise business processes across the four major spheres of activity: product/services innovation, demand management, supply management and human capital management. The above four domains have more self-renewing interactions between them.

Figure4.4.2: Information flow of warehouse management system Customer service (Tompkins & Smith, 1998) must be the basic concern of the management. The warehouse management must always try to respond at the highest amount of customers. Control systems: Here the management must

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evaluate how information is stored, how the system responds to special requests and what material is produced to support the data.

4.5 Summary
In this chapter 4 questions are answered and data collected by different methods are analyzed with related theories. Key errors are identified, and recommendations will be discussed in the following chapter.

Chapter 5 Conclusions and Recommendations

5.1 Conclusions
In this work the warehousing operations of COSCO Kunming Hongyun Warehouse was analyzed with the objective of presenting a proposal for optimize the warehousing automation system to reduce warehouse errors.

The first analysis was about the processes within CKHW warehouse. Four types of errors occur within CKHW warehouse and the most frequent one named Wrong part number. To identify the key errors, human errors and technology errors are discussed in the following research. To find the solutions of the main problem, warehouse errors are divided into four elements: Manpower, Planning, Technology, and Communications (Figure 1.3: Ishikawa Cause-effect Diagram). Furthermore, research questions relative to the fishbone are carried out to help answer the main question. The research methodology focuses on the research methods and discusses the methodological choices that have been made in order to achieve the purpose of the thesis. The chosen data collection method, research question design, interview, and the design of questionnaire are discussed in detail and the reliability and the validity of the thesis is analyzed. The report includes the voices of participants, the reflexivity of the researcher, and a complex description and interpretation of the problem.

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The findings are a result of the conducted interview and survey with participates and a summary of the respondents answers. Desk research and field research are the main research methods that research questions are answered. The objective of this research is to provide a better understanding about CKHWs warehouse activities, identify key errors within logistic process, and optimize related warehouse processes to reduce errors. Five main recommendations according to the research findings are discussed in the following report.

5.2 Recommendations
5.2.1 Recommendations of Manpower management
The Key performance indicator (KPI) scorecard can be a powerful measurement tool (RS Kaplan, 2001) to allow for assignment of goals and objectives to all individuals and focuses accountability on the relevant individuals and departments. (Table 4.1) It can help ensure that the right measures are utilized and encourage good management. Job-relevant training and practice Good human factors engineering of control systems processes, building facilities and work environment. Appropriate supervision related to the task and process control issues. Strengthen the communication with employees Provide the advanced study opportunity for the key staff. KPI Scorcard Descripti on Absentee ism Key data Identify the number of hours effectively worked by the warehouse's operative HR (exclude holidays, absenteeism, training) Receiving HR (temporary & proper workers) + Equipment Detailed calculation Total of nonworked hours / total hours (%) Cost per pallet (homogeneous, heterogeneous, container) received... Cost per line, ton, prepared order m3... N of pallet bulk / person / hour Productivity

Processe s cost

Order picking HR (temporary proper workers) + Equipment

&

N of order lines / person / hour

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Cross docking HR (temporary & proper workers) + Equipment

Cost per pallet, ton, m3... cross docked Cost per pallet, ton, m3 shipped Cost per controlled item

N of crossdocking pallet / person / hour N of expedition / person / hour N of items controlled / person / day

Shipping HR (temporary & proper workers) + Equipment Stock control HR (temporary proper workers) + Equipment Cost Cost evolution vs. budget (at cost) Evolution of cost in % flow value vs. budget Rent or annual amortization of the warehouse Racks, sprinklers, automatized preparation, ' amortizations Total cost rent + Equipment Warehouse capacity use rate % &

/m2/year /m2/year /m2/year N of pallets stored in warehouse / warehouse capacity in N pallets

HR Activity

% temporary worker / total HR Seasonality (monthly, weekly, daily) and trend Follow Up of order picking lines number, trucks, m3 or tons shipped Flow identification HR capacity Flow identification HR capacity Flow identification HR capacity vs.

Receiving flow / capacity

Order picking flow / capacity

vs.

Shipping flow / capacity

vs.

Quality and

Warehousing discrepancies

Products lost value (at cost) / total products

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service Warehousing discrepancies

shipped value (at cost) Products lost value (at cost) / total products stored value (at cost) N of order lines delivered in dispute/ Total N of order lines delivered Goods amount delivered in dispute/ Total goods amount delivered N of order lines shipped on time / total N of order lines shipped or

Dispute (for suppliers and clients)

Dispute (for suppliers and clients)

Service rate

Productiv ity

N of lines heterogeneous/homogeneous pallets received per man hour

N of lines or pallets put away per man hour N of lines picked per man hour N of lines or pallets shipped per man hour Table 5.2.1 KPI scorecard for COSCO Kunming Hongyun Warehouse

Training: For the proper application of a more complete quality system it is necessary to teach the operators the proper methods that need to apply. Base on this factor, it is necessary to prepare the different trainings that will be necessary to apply for the new processes work properly. Besides, in the moment of evaluate the performance of the operators, if it is necessary any reinforcement of the processes there must be always open the possibility of retrain the operator so the basic concepts might be fortified. The third-party training institution is a good choice to improve technical skills and reduce the related human errors in operational handling processes.

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5.2.2 Implant advanced software warehouse planning system

to

improve

Planning errors are defined in demand forecasting errors and order-picking process design defect. To minimize the forecast mistakes made by manpower, based on the precious ERP system, the researcher suggests to implant a professional software to improve the forecast accuracy, and avoid the possible related human errors. Professional financial software Yonyou U8 is an integrated ERP solution designed for small and medium-sized enterprises. Yonyou U8 helps SMEs smoothly synchronize front and back office business management functions.

Figure 5.2.2 Yonyou Software functions

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5.2.3 Upgrade warehouse order-picking process

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Figure 5.2.3 upgraded order-picking process within COSCO Kunming Hongyun Warehouse

Figure 5.2.3.1canner reading of picking label process

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Figure 5.4.3.2 Scanner reading of part/unit number process

5.2.4

Upgrade checking process

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Figu

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re 5.2.4 Upgraded Warehouse

Checking

process for COSCO Kunming

Hongyun

5.2.5 Implant CRM model to enhance communication and collaboration

CRM as an Information Integration System can gather customer information coming from across channels into one database effectively, and the customer information database is shared among the various departments in the organization. The customer database contains client basic information, transaction records, order details, the register of delivery, customer feedbacks. Every department manager who participates in the transaction can check and update the latest relevant information. The CRM model can help extend collaboration; improve Customer Satisfaction, Customer Experience; and Automate, Connect and Extend reach. The advantages of CRM systems integrate demand driven supply chain applications improving resource utilization, productivity, branded customer communities to nurture and extend reach, enhancing customer experience, voice of customers through social channels augmenting CRM, and applications driving customer self-service and increasing customer experience.

5.3 Summary
The present chapter gives the conclusion of this research and recommendations according to research findings. The main question is answered and a roadmap for COSCO Kunming Hongyun Warehouse (CKHW) will be discussed in the following chapter.

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Chapter 6 Strategic implementation

The chapter 6 Strategic Implementation is going to be a roadmap for COSCO Kunming Hongyun Warehouse (CKHW). In this chapter, implementation plan and timeline are involved to describe feasible and actionable. First, Implementation plan will accordance with recommendations and based on the research themes. And then timeline of each recommendation will be showed.

6.1 Implementation plan

Based on the Chapter 5five main recommendations are suggested to COSCO Kunming Hongyun Warehouse are as following: o o o Implant information system for planning Upgrade warehouse order-picking process Upgrade checking process

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o o

Enhance communication and collaboration, and implant CRM model. Strengthen employee training and ensure a good working environment.

6.1.1 Implant a suitable Information system (Yonyou U8) for planning in CKHW
To implement ERP system (Yonyou U8) in CKHW includes three periods: beforebuying period, buying-period and after-buying period. Firstly, before-buying period, CKHW planning department need to research general information of Yonyou Company and the function performances of U8 system. They can contact with Yonyou customer service by telephone or email, they also can visit Yonyou Company. When the software has decided, both parties are going to discuss price, implantation and after service. Then the make an agreement. Buying-period: after the agreement has made, the next is to carry out the payment. A project group of Yonyou will observe the conditions of CKHW and then set up U8 system into the company system. The main task of this group is to implant ERP system and to train employees. Furthermore, there will be two weeks probation to adapt and test. Figure 6.1 shows the process of implant the planning software.

Last but not least, the after-buying period. Yonyou providers the after sale service with 5 years for free. The service includes fieldwork support, emergency support, data renovation etc.

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Figure 6.1.1 Yonyou software service

6.1.2 Upgrade the order-picking process within CKHW

To upgrade the order-picking process, it starts with the information collection step. The upgrade collection and dispatch, dealer register, and Error register information files need to be updated in the database. Figure 6.1.2 shows the necessary files details. When information database is upgraded re-design of picking process and re-size the picking strategies can be done. The related scanner reading system needs to be redesigned at the same time. Then the operators can start training from the checking system. Train two or three operators to use them as test subjects of the process. Testing the checking system in operation and making necessary adjustments to the system. Finally, training employees to operate the scanner system and start to use the upgrade order-picking process.

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Figure 6.1.2 Files for upgrade order-picking process

6.1.3 Upgrade the order-checking process

The steps to carry out upgrade order-checking process are similar to the 6.1.2 upgrade the order-picking process. To optimize the checking process, researcher takes the advice from the experienced staff and it is an integrated process combined with previous checking process and packing process, which will reduce the labor time and improve the efficiency.

6.1.4 Enhance communication and collaboration

Communication and collaboration barriers are presented as following factors: communicate between internal and external are not timely and effective. 2. Lack feedback and information collection from customers and partners. With the help CRM model these two factors can be improved in order to satisfy customers and optimize warehouse operations. 1. of of to

The feedback from partners and customers from different communication channel need to be collected in a uniform format, and the Table 6.1.4 shows a sample of

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feedback form. this form will be send to customers in 7 days when they receive products. The feedback channel could be e-mail or letters.

Table 6.1.4 Feedback form

6.1.5 Strengthen employee training.

For the proper application of a more complete quality system it is necessary to teach the operators the proper methods that need to apply. Base on this factor, it is necessary to prepare the different trainings that will be necessary to apply for the new processes work properly. Besides, in the moment of evaluate the performance of the operators, if it is necessary any reinforcement of the processes there must be always open the possibility of retrain the operator so the basic concepts might be fortifiedTo strengthen employee training from an authoritative and professional institution is necessary. Here the training aims at the frontline employees. Researcher considers it is better to implement training by a third party. There are two reasons: first, COSCO Kunming Hongyun Warehouse does not have training system. Second, CKHW does not have enough human resource to implement, which means enough coach available for training.
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A possible training plan for short-term to help new hire adapt to the operational work could be internal small group training. One experienced staff is the coach of 3 new hires. The training course lasts 7 to 15 days, when the new hires can handle the related work independently, the group coach supervise their job to control the quality.

Kunming Shunda training institution provides both technical skill and knowledge skill courses, which is suitable for CKHW. As a professional and authoritative training institution, Shunda could provide CKHW a high level training system to fulfill employees demand. First, Shunda will design a course and schedule relative to CKHWs current situation. The training course takes two weeks for about six months. After six months, they get training once a season in average. All the courses will focus on CKHW operations and employees conditions.

6.2 Timeline
Table 6.2 shows the timeline of the implementation based on recommendations. The five main recommendations are described as short, middle and long term actions. Implant information system for planning, upgrade warehouse order-picking process, and upgrade checking process. Furthermore, enhance communication and collaboration, and strengthen employee training. Implementation will be carry out step by step and the testing period might be even longer than expected, researcher considers if all the recommendations are implemented at the same time, it is hard to coordinate and accommodate.

6.3 Chapter summary

In this chapter, researcher reported the implementations of each theme which are based on recommendations. Implementation plan and timeline are involved to describe feasible and actionable. This roadmap is a useful tool for optimizing COSCO Kunming Hongyun Warehouse operations and how to step by step achieve the research goal.

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Table 6.2 Timeline

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Chapter 7 Reflection
In the last chapter, researcher will make conclusions for whole the thesis process. It includes reflection on the competencies, lessons learned throughout the process and improvement points. Furthermore, the personal feelings of doing the research will be described as well.

Reflection on the competencies In the process of completing the research report, researcher takes a lot of time on resource collection which includes general information of COSCO Kunming Hongyun Company, research methodology and theories. This information assist researcher to start research in ordered. A good plan allows people to do the heavy lifting up front in the process. On the other hand, researcher improved the personal competencies on many sides. First the significant progress of communication skills. The thesis report is based on consultancy for a real company, and the conversation requires clear ideas and timely response. However, the first task is to find a suitable company which can match with the research topic. Researcher communicated with company managers and explained how this process supposed to be. Furthermore, Research Company will provide information as researcher required, because of the distance, the mainly ways of communication are by e-mail, telephone, and video calls. Researcher should give shape to her ideas and questions. Sometimes the communication skills could make a better work. Secondly, personal independence ability is tempered. It is the first time for researcher to complete a report independently. Whatever conception or implementation, researcher will consider a lot on it and be competent at an important work. These two improvements are the biggest advantages for researcher in the future work and study.

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