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A STUDY ON EFFECTIVENESS OF WARE HOUSING SYSTEM IN

FLYTON XPRESS

CHAPTER 1
1.1

INTRODUCTION
A warehouse is a commercial building for storage of goods. Warehouses are used

by manufacturers, importers, exporters, wholesalers, transport,businesses, customs,


etc. They are usually large plain buildings in industrial areas of cities and towns and
villages. They usually have loading docks to load and unload goods from trucks.
Sometimes warehouses are designed for the loading and unloading of goods directly
from railways, airports, or seaports. They often have cranes and forklifts for moving
goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored
goods can include any raw materials, packing materials, spare parts, components, or
finished goods associated with agriculture, manufacturing, or commerce.
Logistics is the management of the flow of resources, not only goods, between
the point of origin and the point of destination in order to meet the requirements of
customers
information

or

corporations.

, transportation

Logistics

, inventory

involves

, warehousing

the

integration

of

, material

handling,

and

packaging, and often security. Today the complexity of production logistics can be
modeled, analyzed, visualized and optimized by plant simulation software, but is
constantly changing. This can involve anything from consumer goods such as food, to
IT materials, to aerospace and defense equipment.

Inbound logistics is one of the primary processes and it concentrates on purchasing and
arranging inbound movement of materials, parts and/or finished inventory from suppliers
to manufacturing or assembly plants, warehouses or retail stores.

Outbound logistics is the process related to the storage and movement of the final
product and the related information flows from the end of the production line to the end
user.

1.2

INDUSTRY PROFILE

We need different types of goods in our day-to-day life. We may buy some of
these items in bulk and store them in our house. Similarly, businessmen also need a
variety of goods for their use. Some of them may not be available all the time. But, they
need those items throughout the year without any break. Take the example of a sugar
factory. It needs sugarcane as raw material for production of sugar. You know that
sugarcane is produced during a particular period of the year. Since sugar production
takes place throughout the year, there is a need to supply sugarcane continuously. But
how is it possible? Here storage of sugarcane in sufficient quantity is required. Again,
after production of sugar it requires some time for sale or distribution. Thus, the need for
storage arises both for raw material as well as finished products. Storage involves
proper arrangement for preserving goods from the time of their production or purchase
till the actual use. When this storage is done on a large scale and in a specified manner
it is called warehousing. The place where goods are kept is called warehouse. The
person in-charge of warehouse is called warehouse-keeper.

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


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

Warehousing is one of the important auxiliaries to trade. It creates time utility by


bridging the time gap between production and consumption of goods. The effective and
efficient management of any organization requires that all its constituent elements
operate effectively and efficiently as individual SBUs / facilities and together as an
integrated whole corporate.

Across the supply chains, warehousing is an important element of activity in the


distribution of goods, from raw materials and work in progress through to finished
products .It is integral part to the supply chain network within which it operates and as
such its roles and objectives should synchronize with the objectives of the supply chain.
It is not a Stand-alone element of activity and it must not be a weak link in the whole
supply chain network.

Warehousing is costly in terms of human resources and of the facilities and


equipments required, and its performance will affect directly on overall supply chain
performance. Inadequate design or managing of warehouse systems will jeopardize the
achievement of required customer service levels and the maintenance of stock integrity,
and result in unnecessarily high costs.

The recent trends and pressures on supply chain / logistics-forever increasing


customer service levels, inventory optimization, time compression and cost minimization
have inevitably changed the structure of supply chains and the location and working of
warehouses within the supply chains network.

Certainly the old concept of warehouses as go downs to store goods has been
outdated. Warehouses perhaps better referred to as distribution centers; exist primarily
to facilitate the movement of materials to the end customer. There are exceptions such
as Strategic stock-holding, but in all commercial applications; effective and more
efficient movement of materials to the customer is the key, even if some inventory has to
be held to achieve this.
Warehouses are built in all shapes and sizes, form facilities of a few thousand
square meters handling modest throughputs, to-despite the previous comments-large
capital-intensive installations with storage capacities in the 1,00,000- pallet-plus range,
and very high-hundreds of pallets per hour throughputs.

1.3

Company Profile
Flyton Xpress is a pioneer in Logistics and Supply Chain Solutions in India.

Flyton Xpress, offer comprehensive custom designed logistics projects and supply chain
management services to our customers. Our highly experienced professionals at
various locations in India ensure sustainable growth and development to enhance
customer value and quality. We have set benchmarks in customer satisfaction and
service.
Within Flyton Xpress we take a consistent and systematic approach to Health and
Safety management within our operations, thus giving customers the confidence to
choose our services above all others.
Flyton Xpress has an established Global Health and Safety Team comprising regional
representation with direct accountability to the Regional and Global Leadership Teams.
This affords timely and effective reporting and management support for HSE initiatives.
The team is empowered to oversee and support company-wide compliance to a
growing list of industry, customer and legislative requirements.
Within Flyton Xpress we promote an open reporting culture involving collaboration and
active dialogue between all stakeholders to effectively manage Health and Safety risks.
We seek to encourage an environment of awareness, participation and continuous
improvement in all aspects of Health & Safety, which we call Constant Care.
A primary Health and Safety function within Flyton Xpress which sets us apart is that we
listen to the client to ensure Health and Safety initiatives bring added value to both
parties and further protect our mutual business interests. In achieving this we prioritize
Health & Safety as a core pillar within our business and decision making processes.
At Flyton Xpress we place a great emphasis towards safety of all persons working for or
with us including our customers by using a Lost Time Incident (LTI) reporting structure
augmented by a developing awareness to Near Miss reporting.

Flyton Xpress treats the handling of Dangerous goods very seriously. To keep abreast of
developing world markets, particularly those within mining, oil and gas exploration we
are constantly developing our robust dangerous goods competencies within relevant
core functions to meet customer needs.
Flyton Xpress encourages active participation with our customers to promote Health
and Safety guidance, and knowledge sharing.

Flyton Xpress provides

Cost-effective services - competitive rates and transit times

Greater capacity - on main lanes even during peak seasons

Adequate lead times - for improved inventory flow.

CHAPTER 2
REVIEW OF LITERATURE

Inmon (2005) says, that data warehouse is a data collection oriented to a


subject, integrated, changeable in time and not volatile, to provide support to the
decision making process. the classic bestseller that launched the data warehousing
industry covers new approaches and technologies, many of which have been pioneered
by Inmon himself addition to explaining the fundamentals of data warehouse systems,
the book covers new topics such as methods for handling unstructured data in a data
warehouse and storing data across multiple storage media Discusses the pros and cons
of relational versus multidimensional design and how to measure return on investment
in planning data warehouse projects Covers advanced topics, including data monitoring
and testing

Harjinder and Rao (2005) argue, that warehouse is a running process that
agglutinates data from heterogeneous systems, including historic data and external data
to attend the necessity of structured queries, analytical reports and decision support. A
data warehouse is constructed by integrating data from multiple heterogeneous sources
that support analytical reporting, structured and/or ad hoc queries, and decision making.
Data warehousing involves data cleaning, data integration, and data consolidations.
Barquini (2006) defines the warehouse as a collection of techniques and
technologies that together provide a systematic and pragmatic approach to solve the
end user problem in accessing information that is distributed in different systems inside
organization. Enterprises do analysis to produce business intelligence. Data
warehouses are todays principal platforms for analysis where intelligence is extracted
from an enterprises bits and bytes. Since the mid-1990s, Barquin International has
been fully dedicated to the design, implementation, deployment and operations of data
warehouses as the core of business intelligence solutions for Federal government
agencies.

Kimball et al. (2006) argue that, data warehouse is a source of an organization


data, formed by the union of all corresponding data marts.Kimball choice should have
nothing to do with dogma and everything to do with the characteristics of the two
approaches. And simply calling those characteristics pros and cons would be pejorative
if you choose a dimensional structure for a data warehouse, your choice will have a
number of consequences that can only be classified as pros and cons in the context of
the particular warehouse youre building.

Chen, M.C., and Wu, H.P. (2006)

Order picking has long been identified as the most labour-intensive and costly
activity for almost every warehouse; the cost of order picking is estimated to be as much
as 55% of the total warehouse operating expense. Any underperformance in order
picking can lead to unsatisfactory service and high operational cost for its warehouse,
and consequently for the whole supply chain. In order to operate efficiently, the order
picking process needs to be robustly designed and optimally controlled.
War emius, P.M.J. (2007)
Warehouse entails many challenging decision problems. He begin by providing
definitions as well as qualitative descriptions of two actual warehouses. This will then
set the stage for an overview of representative operational research models and
solution methods for efficient warehousing. Problems which will be exposed can be
classified into three major categories: throughput capacity models, storage capacity
models, and warehouse design models. We conclude by identifying future research
opportunities

Jon DeCesare (2007)

Its not your fathers warehouse- more associates need of workers inside the fourwalls of a 250,000-sgure-food warehouse would total 12to15 today, warehouse are
frequently

referred

to

as

customization-centers

and/or

mini-manufacturing

operations. Their focus is to prepare floor-ready merchandise so retail store associate


dont have to spend valuable time in back rooms preparing products for shelves rather
than assisting customers. It is not uncommon today to find a 250,000-squre-food
warehouse operating with 0to75 workers performing value-added services.
Davis & Co., 2007
Warehouses are the final point in the supply chain for order assembly, value added
services and dispatch to the customer, represents approximately 20-24 per cent of total
logistics costs. The number of containers or package of materials unloaded from the
carrier's vehicle is checked against the carrier's manifest (freight bill or delivery order) to
ensure that all the full consignment or order has been delivered. All containers or
package of materials are also inspected for external damage
Baker, 2007
Warehouses are critical to the achievement of customer service levels.They act as the
nodes in the supply chainwhere customer orders are assembled and dispatched. It
includes equipments such as automated storage & retrieval systems (AS/RS),
automated guided vehicles (AGVs) and conveyorised sortation systems, but excludes
technology where warehouse operators are still necessary.

Christopher & Towill, 2008

Warehousing management in SC attributes for general sales growth by potential


improvements in productivity, order accuracy, reduced space requirements, increased
volume capacity, control of inventory and increased customer service. Warehouses play
a vital role in mitigating variations in supply and demand, and in providing value-added
services in a supply chain. However, our observation of supply chain practice reveals that
warehousing decisions are not included when developing a distribution plan for the supply
chain. This lack of integration has resulted in a substantial variation in workload (42220%)
at our industry partners warehouse costing them millions of dollars. To address this realworld challenge, we introduce the warehouse-inventory-transportation problem (WITP) of
determining an optimal distribution plan from vendors to customers via one or more
warehouses in order to minimize the total distribution cost

Lee R. Hockley,2008
Warehouses are significant investments for many companies and are long term fixed
assets by their nature. A company cannot easily change its warehouse network and
thus these often become sources of competitive advantage - or disadvantage if they do
not meet changing market conditions. Their role and design within the context of
modern supply chains therefore need to be fully understood. In the following sections,
the roles of warehouses are explored, indicating that a key role is to act as decoupling
Points in supply chains. Other roles, such as cross-docking and production
postponement, are also put into context. The need for flexibility is examined, together
with how warehouses can be designed and operated to fulfil this need. Finally, the
performance measurement of warehouses in dynamic situations is explored, together
with a framework for measuring warehouse flexibility.

Petersen, C.G, 2009 Order picking operations need to efficiently process orders in
todays competitive environment. Previous research generally assumed on even
placement of the cross aisles. This research examines the placement of cross aisles in

order picking operations and its effect on various storage policies. While previous
research has primarily examined cross aisles and storage policies separately, this
research looks at them simultaneously. The results showed no difference between even
and uneven placement of cross aisles and that within-aisle storage is better than
across-aisle and random storage. The results also showed that within-aisle storage
provides greater travel distance savings than the use of cross aisles.
Emmett, S., 2009 Warehouses are often seen as a necessary evil: places that stop the
flow of goods and thus increase costs without adding value. But the truth is that they
have a critical part to play in supply chain management, and warehouse managers
should be centrally involved in the strategic aspects of any business. Excellence in
Warehouse Management covers everything you need to know to manage warehouse
operations as part of a streamlined and holistic system, fine--tuned to serve the
customer and drive the bottom--line. With thinking points, self--assessment exercises
and case studies Stuart Emmett challenges you to consider your own operations in a
new way, and plot a course into the future.
Kathryn A. Dowsland, 2010
The current drive to reduce packaging waste has led many companies to consider the
use of multi-trip containers or shippers in which to transport their products in order to
reduce packaging waste. The efficiency of such systems obviously depends on
selecting shipper dimensions in such a way as to ensure high volumetric utilisation. As
is the case with many practical problems the efficiency / solution quality can be
improved if problem specific information is used to enhance the operation of a metaheuristic solution approach. The problem can be modeled as a p-median problem but is
too large to be solved in reasonable time without further modification.

Vidette Poe, 2011

The difference between operational and analytical processing; architecture and


infrastructure for the data warehouse, and examples of how they are currently being
implemented within corporations; and the Decision Support Life Cycle - from gathering
requirements, modeling the data, and designing the database to application
development, staff training, and implementation. Building a Data Warehouse for
Decision Support also teaches a database design for large warehouses called Star
Schema. This highly flexible structure will allow you to create a system capable of
growing with your organization and its needs. This book is for project managers,
database designers and administrators, programmers, analysts, and system and data
architects.
David Goomas,2011
The field at two auto parts distribution centers, order selectors picked auto accessories
(e.g., fuses, oil caps, tool kits) into industrial plastic totes as part of store orders.
Accurately identifying all store order totes via the license plate number was a
prerequisite for the warehouse management system (WMS) to track each tote to the
correct sorting lane, the correct shipping door, the correct route, the correct store, and to
invoice the store. Using voice technology, the order selector uttered the license plate
number; however, in the event the utterance did not match the license plate number
affixed to the lid of the tote, the tote was routed to a penalty area of the sorting lanes
as a misidentified

Need for the study


Warehouse is important concept in Supply chain management. Location is helpful and
most effective concept of warehousing. The location of the warehouse is one of the
most important features which a customer (client) would look for while choosing the
specific company. In supply chain process we have to move the goods to customers
quickly but the goods produced in various place like industrial as well as agricultural
goods are produced at some specific places but consumed throughout the country. So
the warehouse is must place in conventional location for a quick supply to the
customers. And also Continuous production of goods in factories requires adequate
supply of raw materials. So there is a need to keep sufficient quantity of stock of raw
material in the warehouse to ensure continuous production. The warehouse location
should be placed in the perfect place near to the supply area and also production area.
The purpose of the study is to understand the various location factors which the
customer will look in Flyton Xpress
To understand the issues which arise in effectiveness of warehouse and to
analyze the overall impact in customer services
To find the features of an ideal warehouses viz., distribution warehouse and
storage warehouse
To ensure continues production as well as dispatching the product of
manufacturing industry should require the location of warehouse.

STATEMENT OF THE PROBLEM

This warehouse study faced two problem one warehousing cost and
transportation cost. If we are reduce warehouse cost transportation cost will increase
else we are reduce transportation cost warehouse location cost will increase.
Transportation cost is variable but warehouse cost is standard. So its only based on
warehousing .

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:
To study the Effectiveness of Ware Housing system in Flyton Xpress

SECONDARY OBJECTIVES:

To identify the issues in the warehouse and its impact of customer service

To find out the factors influencing ideal warehouse system.

To analyses which is suitable for various goods like FMCG, perishable


goods, machinery & electronic goods, agriculture products, garments
products, Auto mobiles products, chemical products

To identify which place is the convenient place of warehouse to use both


distribution and storage of goods.

SCOPE OF THE STUDY

The Effectiveness of Ware Housing system can be analyzed from the


factors like Warehouse storage having individual location number, picking
sequence, type of use (picking, reserve storage, etc.), type of storage (each,
case, pallet), location size or capacity, storage restriction (flammable, hazardous,
high value materials, outdoor, etc.), etc.; in the Flyton Xpress.

RESEARCH METHODOLOGY

In order to accomplish the objectives of the study, it is essential to articulate the


manner in which it is to be conducted, i.e., the research process is to be carried-out in a
certain framework. The Research Methodology, which follows, is the backbone of the
study. An Exploratory Research with the secondary data study was conducted. Primary
data was collected with the help of a questionnaire. A conclusive research was also
conducted, which involved Causal research in the field. Research Methodology is a way
to systematically solve the research problem. The Research Methodology includes the
various methods and techniques for conducting a Research.
SAMPLE SIZE
120 samples collected from various clients in Flyton Xpress and the sample type is
random sampling. Its a non-probability data collected methods.
Sample technique: Simple random sampling method is used in the study for data
collection
SOURCES OF DATA: The data collection is the activity of gathering facts of information
about a subject in a research study. There are two types of data.
Primary data
Single data compiled and studied for a specific purpose is known as primary
data. In this primary data has been collected through a questionnaire to meet the
objectives of the study.
Secondary data
The data which someone else has already collected and which have already
been passed through the statistical processes, Secondary data are also used the
research study are obtained from external source by internet, magazines and various
journals. The researcher has collected secondary data through websites, journals,
books etc
STATISTICAL ANALYSIS

The following are the statistical tools that are used for analysis purpose.
Percentage analysis
Weighted average method
Chi-square method

PERCENTAGE ANALYSIS
Its used to give a tabulated representation of the respondent view point.
Percentage = [Number of Respondents / Total No of Respondents] * 100

WEIGHTED AVERAGE METHOD


Weighted average method is used to sum up the views of the various to obtain means
score for the particular statement.
Mean score = Total score / Number of Respondents
Where, Total score = Number of respondents * weighted average

CHI-SQUARE TEST
A chi-squared

test,

also

referred

to

as chi-square

test or

test,

is

any statistical hypothesis test in which the sampling distribution of the test statistic is
a chi-squared distribution when the null hypothesis is true, or any in which this
is asymptotically true, meaning that the sampling distribution (if the null hypothesis is
true) can be made to approximate a chi-squared distribution as closely as desired by
making the sample size large enough.
The formula for computing chi-square is:

O= observed frequency
E= expected or theoretical frequency.
Table value independent:

, (n-1),

, (r-1) (c-1)

Chi-square is a statistical test commonly used to compare observed data with data we
would expect to obtain according to a specific hypothesis. For example, if, according to
Mendel's laws, you expected 10 of 20 offspring from a cross to be male and the actual
observed number was 8 males, then you might want to know about the "goodness to fit"
between the observed and expected. Were the deviations (differences between
observed and expected) the result of chance, or were they due to other factors. How
much deviation can occur before you, the investigator, must conclude that something
other than chance is at work, causing the observed to differ from the expected? The chisquare test is always testing what scientists call the null hypothesis, which states that
there is no significant difference between the expected and observed result.
LIMITATIONS OF THE STUDY

Warehouses is the lack of space available, especially during the peak times of the year,
such as holiday seasons

QUESTIONNAIRE
1) Name of the person..
2) Name of the warehouse with place.
3) Experience in this field
<1yrs
1-3yrs
3-5yrs
5-10yrs
10<
4) Which type of warehouse are you using now?
Private warehouse
Public warehouse
GOVT warehouse
Pounded warehouse
5) Which type of goods are you storing in the warehouse?
FMCG
Perishable goods
Machinery & electronic goods
Agriculture product
Garments product
Auto mobiles
Chemical products

others

6) What is the most important feature which you look while approaching Warehouse?
Location
Infrastructure
Transport Facility
Offers
Cost
Others

7) What is the time taken by the goods to reach the customers from warehouse?
0-15minutes
15-30minutes
30minutes- 1hour
Above 1 Hour

8) How do you rate basic facility provided by the warehouse like a transport, man power,
electricity, safety, etc.?
Excellent
Very good
Good
Average
Poor

9) Do you think location is the most important factor of Warehouse?


Agree
Disagree
10) According to you mention the choice of location of the warehouse so that is efficient
and profitable
Near to Industrial Area
Near to Market Area
Near to Port
Near to the City
Near to Agriculture Area
Out of the City

11) Is the climate provided in the warehouse is suitable for your product?
Yes
No

12) How do you rate the transportation infrastructure which is provided by the
warehouse?
Excellent
Very good
Good
Average
Poor

13) Does the warehouse provide advance IT facilities like a RFID, GPS?
Yes

No

14) Which type of warehouse is suitable for storing the following products?
Location /
Product

Near to
Industrial
Area

Near to
Market
Area

Near to
Port

Near to
the City

FMCG
Perishable
goods
Machinery &
electronic goods
Agriculture
product
Garments
product
Auto mobiles
Chemical
products
Others

15) What type of bottleneck do you face in the Warehouse?


Transport
Location
Cost

Near to
Agriculture
Area

Out of
the
City

16) Are you using cold storage warehouse?


Yes
No

17) Where is your product stored and the location of your current warehouse?

Near to Industrial Area


Near to Market Area
Near to Port
Near to the City
Near to Agriculture Area
Out of the City

18) Which location is mostly preferred by you for warehousing?


Urban
Sub urban
Rural