Академический Документы
Профессиональный Документы
Культура Документы
Farjad Khan
Mohammad Ahmed
M. Hammad Mehmoodi
Acknowledgment
First of all, we would like to thank Almighty Allah, the most Beneficent and Merciful
for giving us the opportunity and strength to complete this project. Secondly, we would like to
thank our parents for providing us with necessary resources whenever needed. Thirdly, we
would like to thank Muhammad Ali Jinnah University and our respected supervisor Sir Humair
Ali for giving us a chance to work and present this project. Lastly we would like to thank the
management of Falcon World Lines, who despite their tough schedule gave us time to conduct
our visits and interview the employees. Special thanks to Ms Saima (HR Manager) and Mr
Omair (Warehouse Incharge) who gave us their precious time and provided us with necessary
In the end, we hope that this project will carry out all the necessary requirements.
However, suggestions and feedback for improvements will be thankfully welcomed and
acknowledged.
Regards,
Farjad Khan
Mohammad Ahmed
M. Hammad Mehmoodi
Table of Contents
Introduction ................................................................................................................................ 6
Economic Outlook ................................................................................................................. 6
Industry Outlook .................................................................................................................... 7
History................................................................................................................................ 7
Economic Contribution. ..................................................................................................... 8
Trends. ............................................................................................................................... 8
Challenges .......................................................................................................................... 8
Competitors ............................................................................................................................ 9
DHL. .................................................................................................................................. 9
TCS. ................................................................................................................................... 9
Costa Logistics. ................................................................................................................ 10
The Firm, History & Background ........................................................................................ 10
Our Vision. ....................................................................................................................... 10
Our Mission. .................................................................................................................... 10
The Firm........................................................................................................................... 10
Definition & Related Theories ............................................................................................. 12
Warehouse........................................................................................................................ 12
Warehouse Management:................................................................................................. 13
Inventory control theory: ................................................................................................. 13
Picking process theory: .................................................................................................... 13
Order management theory: .............................................................................................. 13
Feasibility............................................................................................................................. 13
Detailed Organization Opportunity/Problem ........................................................................... 14
Lack of Technolgy ............................................................................................................... 14
Non-Compliance of International Standards ....................................................................... 15
Small Warehouse size .......................................................................................................... 16
Health and Safety ................................................................................................................. 17
No proper racking system .................................................................................................... 18
Less Space ............................................................................................................................ 19
Methodology & Procedure Adopted ........................................................................................ 19
Data Collection .................................................................................................................... 20
4
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
Executive Summary
Supply chain is now considered to play a vital role in the success of any organization.
efficiently and effectively will minimize cost and provide satisfactory service to the customers.
Warehouse Management is the key part of Logistics, which plays an important role in Supply
Chain. Warehouses are used to store raw materials and finished goods. If the goods aren’t
The main aim for this project was to pick an organization that has a warehouse, investigate the
problems in the warehouse and propose solutions for the problems. For this purpose, we chose
Falcon World Lines Pvt Limited, which is a 3rd party logistics provider. We conducted our
visits to their warehouse. Mr Omair (Warehouse Incharge) guided and briefed us about the
warehouse. We interviewed him to find how they work, the process and practises they use. We
inspected the warehouse in detail to find out the problems. The problems that we found were
Lack of technology, not following international standards, no racks, health & safety, non-
expandable warehouse, lack of space. For these problems we proposed various solutions after
discussion within ourselves and with the management of Falcon World Lines. No software for
data analysis like SPSS is used. There isn’t any questionnaire filled as this is a business project.
Data collection, data analysis and solutions are all based on observations and group discussions
only.
6
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
Introduction
Economic Outlook
distribution, trade, production, consumption of goods & services etc. According to World
Bank, Pakistan’s economy grew by 5.8% (2018) whereas in 2017, the economic growth of
Pakistan was 5.4%. IMF has predicted that due to CPEC, Pakistan’s economy is expected to
grow even further. Other factors that influence the increase in economy of Pakistan are
improvement in different sectors including manufacture, agriculture & service sector. On the
other hand, Pakistan is facing several problems including, terrorism, water shortage, energy
Survey of Pakistan, 2017-2018). Agriculture sector’s contribution has been increasing over the
past few years due to using better seeds and efficient plantations. Manufacturing sector of
Pakistan in contributing 20.91% in the GDP of Pakistan, it had a growth of 6.24%. (Economic
Survey of Pakistan, 2017-2018). The service sector has the biggest contribution in the GDP of
Pakistan. It contributes 60.23% to the GDP which is more than the contribution of Agriculture
Pakistan is a developing nation. It is also the country with 6th largest population. The Population
of Pakistan is 200.83 Million. It has a GDP of $ 304.952 Billion (2017), and a GDP per capita
of $ 1547.85 (World Bank, 2017). Pakistan had a 5.8% GDP growth rate which was the highest
in the last 13 years. This was because of tremendous work and investment done on CPEC.
According to World Bank, the GDP growth rate of Pakistan will decline in 2019. World Bank
Forecasts that in 2019, The GDP growth rate of Pakistan will be 5%.
7
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
Industry Outlook
A warehouse can be interpreted operable as an edifice or a building where to store bulk or mass
productions and goods (wares) for commercial purposes. Throughout the all these times the
built up form or structure of a warehouse depends upon many different contexts; technologies,
History.
Warehousing actually has a long history it all started from prehistoric civilizations as
humans needed to survive and thrive in the nature they required raw materials, food and all
basic necessity to stock up or to store somewhere safe from the hardships of the atmosphere.
(tonder, 2018).Though times things changed and warehousing became an industry and from
just mass storage of goods and produce in a safe house or a "WAREHOUSE" what we say it
today became an enormous industry that not only store goods for domestic consumption but
has transformed into a supply giant throughout the globe so far and is now helpful in trading
across the globe new trends and features are introduced such as freight, cargo, pallets and
everything has a different and unique way for storing different and unique goods. In Pakistan
warehousing was not a new thing in the past when Britishers were ruling we had many
businessmen in subcontinent holding the goods for East India Tea Company and for their own
selves and concerns as well but it was never like the modern day warehousing. Due to lack of
modern warehousing facilitations results in huge post-harvest depletion ranging from 15% to
20% for food cereals and touch 40% for vegetables in fruits. Let’s just take example of one
crop that is wheat, wheat annual production is exceeding up to 25 million tons, it is valued
around 7.75 million ton rupees(PKR). Pakistan has approximately 5 millions of tons of wheat
storage capacities or facilities. The Remaining output due to lack of warehouses unfortunately
kept in open without any shelter which results in stale of up to total of 25% production before
Economic Contribution.
The biggest and the largest contributor to Pakistan’s economy (GDP) is international
freight forwarding in service sector (Role of freight forwarding and logistics industry of
Pakistan, 2018). These are the services provided by the international freight forwarding
companies facilitate exports that mainly include textiles, cotton CP goods and its made-up stuff,
leather and leather goods. Sports goods, surgical, rice, fruits, vegetables and seafood
collectively these all generate over 80% of the country’s foreign exchanging.
Trends.
Warehouse now a days are now focusing on using Artificial Intelligence and Robotics
to increase the efficiency and effectiveness of the warehouse. Using Artificial Intelligence and
Robotics instead of Human resources decreases human error increasing the efficiency and
effectiveness of work done. Amazon Inc. is using Artificial Intelligence and Robots in their
warehouse which has increased the productivity and accuracy of their warehousing function.
(Granato, 2018)
Challenges
Policy recommendations
The policies that are made by the government does not favor the freight forwarding
industry at all. The government must know the loss the country has to bear every year annually
due to lack of facilities and land for storing the productions we are losing.
The country’s geographical location gives it an advantage for transit and transport but
due un-manageable trafficking and not properly built route freight forwarding industry faces
delays for days even for weeks sometimes however CPEC seems to be guarantee of the proper
Competitors
A competitor is any person or organization that is contending with any other for something.
products or services. The competing organizations compete with each other for the market
share. When there are more competitors in the market, the price of product or service is reduced
• DHL
• TCS
• Costa Logistics
DHL.
DHL was founded by Adrian Dalsey, Robert Lynn and Larry Hillblom in 1969. DHL
has an employment of 360,000 people in over 220 countries and territories worldwide. DHL
has achieved success due to their excellent customer service. They provide top quality service
satisfying their customers. DHL provides multiple services including; Parcel & document
Insurance. DHL is the Leader in Logistics worldwide. Other than the services mentioned, DHL
TCS.
TCS was found in 1983 with its headquarters in Karachi. Since then it has been the
leader in courier and logistics industry of Pakistan. It has achieved and sustained its success
through, passion, commitment and innovation. TCS currently operates in Pakistan, UAE &
London with over 140 offices. It has 2 dedicated chartered planes, over 200 satellite tracked
Costa Logistics.
Costa Logistics was founded in 2010 by Muhammad Zeeshan. It is one of the leading
packaging and moving company in Karachi. It offers various services including; Courier,
packing and moving, Freight services, Logistics solution, Warehousing and distribution
services, Customs regulation, China to Pakistan and many more services. Their motto is to
provide their clients with uncomplicated services so that their client can freely focus on its core
business.
Our Vision.
Our Mission.
The Firm.
Falcon World line Pvt ltd is a third party logistics that launched its services in Pakistan
in 2016. They have International as well as local customers. They provide distribution services
to Samsung Pakistan, Changhong Ruba, Sharp Electronics, Ghani Glass and many others.
Falcon Worldlines currently have 32 Business Clients worldwide. They have 240 fleets
available and a workforce of 120 employees. The services they provide include;
11
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
any land moving vehicle. Falcon World Lines uses its fleet of 240 vehicles to deliver your
cargo safely to all places possible in Pakistan. It provides one of the most reliable land Cargo
services in Pakistan.
Global Logistics.
Global logistics is responsible for connecting the key components of the supply chain
from the origin of the product i.e raw material to its consumption point so that goods can be
distributed from the producer to consumer effectively and timely. Falcon Worldlines has a
global logistics division that ensures that your goods will be delivered on time no matter where
Warehousing Solutions.
dedicated warehouse in Karachi for this purpose. They provide safe and secure warehousing
for goods. The stuff is expertly trained to keep the goods safe and have an effective material
handling process.
Freight Forwarding.
to the market or the consumer. They don’t move the goods themselves but acts as an expert in
logistics and provide the business with shipment or container to move their goods. Falcon
Car-moving Service.
Falcon World lines provides sophisticated and stress free car-moving service to
transport your vehicle to any part of the world in a safe and secure method.
12
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
Falcon World Lines has a separate Air Freight division that is dedicated in providing
you with efficient Air Freight. It provides economical, fast and secure Airplane for the delivery
of your goods.
Packaging & Moving service providers pack your goods and take them from one place
to another. Whether you want to relocate your home or want your office goods to be packed
and transported, trained professionals will come to your door step, pack your goods and safely
Distribution Services.
Distribution is the process of delivering the product or service to areas that is easy
World Lines provides distribution services to business delivering their clients products to the
consumer markets.
When importing and exporting goods, dealing with custom clearance and shipping is a
headache. Falcon World Lines provides an easy solution for this problem. They will deal with
all the problems and documentations and transport your good to and from your doorstep.
Warehouse.
A land or large part of area which is specified and utilized usually for storing of raw
materials or manufacturing goods before their distribution of sale. These warehouses are used
by importers, exporters, industrialists, transporters, manufacturers, custom etc. These are large
Warehouse Management:
warehouse operations from when goods are arrived to be stored until it gets dispatched to their
picking process.
Inventory control management look after the flow of goods from manufacturer to
warehouses and after these facilities the point of sale. Inventory management does not only
deal with the operations but it also sees the tracking materials and automate a report how much
Picking process is the process of pulling the products from warehouse to the desired
place i.e the customer to fulfill order. Picking process is mainly sorting the product range
according to the order received and picking through the shelves where they are kept.
Order management involves the picking of order from various channels with inventory
databases, data collection. Order management includes management quotation info, checking
stocks, lot management, dealing with purchase orders, accepting orders, processing orders etc.
Order management can easily be defined as the process of taking, organizing, tracking and
fulfillment of orders.
Feasibility
For this project, we chose a 3rd party logistics provider and worked on it to for the betterment
of the company. For this purpose, we chose Falcon World Lines Pvt limited and inspected their
warehouse for problems and propose solutions for it. We will be focusing on analyzing the
14
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
warehouse processes, how they store goods, how the records are kept, tracking and tracing of
goods stored, what technology is being used in the warehouse. After analyzing we will suggest
how to make their current practices better and propose solutions to the problems identified. We
will also be offering our services in implementing the solutions. In this project we put our
maximum efforts to make the company meet the service standards in the given and particular
time frame as it is the logistics company so it is the core business of the company to provide
services to its customers. We have initially suggested the design of the warehouse that how the
warehouse should be designed which help in reducing the time of picking parcels from the
shelf.
Lack of Technolgy
The first and main problem that has been recognized after visiting Falcon World Line’s
Warehouse is that there is little use of technology. The world is moving forward at a high pace
with competition getting tougher. Competitors are always researching to find ways to gain
competitive edge over the other competitors. The best way to get a competitive advantage is
through using cutting edge technology. Using the same technology that’s being used in the
market doesn’t guarantee you success but using technology that’s not being used anymore will
guarantee failure. This is the case with Falcon World Lines. They are behind the competitors
in terms of technology. Falcon World Lines has to start using contemporary approach if they
wish to survive in this competition. 3PL industry in Pakistan is growing. It grew by 3.8% in
2017-2018. (Economic Survey of Pakistan, 2017-2018). With the industry growing there are
more and more companies entering the market. Falcon World Lines aim to become their
customer’s preferred logistics partner by providing services in innovative ways. Their aim
cannot be achieved with the current technology they use. Falcon World Lines don’t have a
proper software or portal for their working. All their work and data is done manually and
15
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
maintained on Microsoft Excel. Falcon World Lines has to provide logistics solutions to its
customers, but using such technology will act as a barrier for customer growth. Customers
require efficient and effective management of their goods which cannot happen using the
current technology. By continuing to use old technology, Falcon World Lines might end up
losing customers. Lack of technology is the biggest threat for a company in any industry, but
in 3PL industry this threat is high as the customer require efficient management of their goods
which can be achieved only through the use of technology. Falcon World Lines lack the
technology to efficiently transfer their goods, track & trace the goods. This will prevent Falcon
The second problem that has been identified after visiting Falcon World Line’s warehouse is
that they are not working according to international standard. The procedures and processes
being used in Falcon World Lines doesn’t match the standards being followed worldwide and
among competitors. There is no quality standard in Falcon World Lines. Quality standard was
nowhere to be found upon our visit to Falcon World Line’s warehouse. The cartons were torn
apart and in poor condition. Working with such poor quality will be an obstacle for earning
bigger customers as for top companies, quality is the top priority and they don’t compromise
on it. The material handling is also not according to standard. There is only one forklift to carry
the materials. Most of the material picking is done manually through hands which is more time
consuming increasing costs. Warehouse design isn’t as per standard as well. According to
international standard, there should be different loading and unloading docks which should be
parallel to each other, but in Falcon World line’s warehouse, there is only one dock which is
used for both Loading and Unloading. This could result is wastage of time if multiple containers
have to load and unload at the same time. In such a condition, a container has to wait until the
other container is done loading goods and then the other container will unload its goods. This
16
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
process is time consuming and would only result in increasing costs. Falcon World Lines can
have problems by not working according to the standard that is in the market. Not having the
technical advantage over competitors can create hurdles for Falcon World Lines in their
journey for success. Lack of standard creates weakness for Falcon World Line and their
standards are made so that companies can maximize their outputs using their resources
efficiently. This is what management of Falcon World Lines need to consider and start working
according to standards.
The third problem that has been identified after visiting Falcon World Line’s warehouse is that
their warehouse is small with respect to horizontal size. This will ultimately result in lack of
space in the future. Lack of capacity will act as one the biggest hurdle in customer growth for
Falcon World Lines. To get new and bigger customers, Falcon World Lines would have to
increase their warehousing capacity. This can’t happen with the current warehouse they have.
Their current doesn’t have the capacity to expand horizontally. If Falcon World Lines wants to
enhance their warehouse capacity by enhancing their building size, they will have to reconstruct
the building from the start or they will either have to buy or rent a new warehouse. Falcon
World Lines has to start it from scratch by reconstructing it from initial level. Constructing a
new warehouse requires a lot of resources including time and capital. If Falcon World Lines
wants to construct a new warehouse, they will have to have all the resources required.
Constructing the new warehouse would require Falcon World Lines to invest their time in it.
They would also have to bear all the expenses in constructing the warehouse from scratch.
Constructing a new warehouse will be costly but will be highly beneficial. Lack of space around
their warehouse will cause higher cost when increasing space. If there were space around their
warehouse building, the cost for increasing the warehouse capacity would have decreased
17
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
drastically. This is why choosing the ideal location and size for the warehouse to be situated is
considered an important step and requires a lot of strategic thinking. Choosing the correct
location and size for warehouse doesn’t guarantee success, but choosing the wrong location
and size guarantees failure as it’ll be costly. Working in the wrong condition can give poor
performance, but moving can be difficult enough. The only option to avoid the costs is to
choose the correct location facility in the first place. (Waters, 2003)
The fourth problem that has been identified after visiting the warehouse of Falcon World Lines
is that they don’t have facilities to provide safety for the employees working in the warehouse.
In case of fire, there are no fire sprinkles installed for fire emergency in the warehouse. Fire
sprinkles are useful in controlling fire and reducing the level of fire. Being a 3PL organization,
the warehouse stores almost all types of goods including highly flammable goods as well. In
case of fire, the goods will be caught in fire increasing the level of fire and the fire can become
deadly and take lives. There is no fire exit in the warehouse. There is only 1 gate in the
warehouse that is used for loading, unloading, entering and exiting the warehouse. In case fire
blocks the gate, everyone in the warehouse will get trapped inside and can die. Upon our visit
we also saw that the employees were smoking cigarettes within the warehouse premise. This
is an extreme fire hazard as cigarette ash can cause fire. The cartons stored can catch fire easily.
There were oil barrels also stored in the warehouse that are highly inflammable. The employees
were smoking cigarettes care freely around the oil barrels without any thought. Such an attitude
is hazardous and can cause serious incidents in the warehouse. There is not any First aid in the
warehouse. In case of any accident with employee and the employee get injured, first aid can’t
be applied immediately. If the injury is serious, then it requires first aid treatment immediately.
If the person doesn’t get first aid immediately, the injury can turn deadly and life threatening.
Warehouse requires safety measures to be installed in the warehouse as the goods stored inside
18
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
are the liability of the Warehouse. In case of pilferage or any harm to the products, Falcon
World Lines will be held responsible and have to pay for the goods to the customer. This is
costly in terms of monetary value and risk of losing the customer as it will dissatisfy the
customer. To avoid such costs, Falcon World Lines needs to upgrade the safety and security
The fifth problem that has been identified after visiting the warehouse of Falcon World Lines
is that they don’t have racks to store the goods. There is only a small area in the warehouse that
has racks in it. The rest of the warehouse have no racks. Goods are stored on pallets in their
warehouse. Goods are even stored on the floor which is against the warehousing standard. The
cartons are stacked up upon one another up to the height that its touching the roof. The goods
are stored so close to each other that there is no passageway for the lifter to go through and
pick up the cartons. To pick up cartons, employees have to pick up each carton by hand and
put it on the lifter to move it. Working in this process is time consuming and requires more
man power. This increases the cost of working for Falcon World Lines. If they wish to transfer
the cartons in bulk quantity, it will be an issue as they don’t have the technology nor facility to
move the goods in bulk quantity from one place to another. Storing the goods on floor will
negatively impact Falcon World Lines. Customers who are quality cautious and work
according to standard wouldn’t hire Falcon World Lines for their logistics solutions as a
cautious customer wouldn’t want its products to be stored on floor like this. Without using
racks to store goods, Falcon World Lines will lose potential customers who want their goods
to be handled in proper way. The world is focused on satisfying customers. With competition
growing stronger day by day, the only way to retain and gain new customers is by satisfying
them. Falcon World Lines won’t be able to satisfy their customers with the current facilities
they have. Using racks to store goods in the warehouse will give the warehouse an organized
19
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
look attracting more and better customers. Lack of facility to transfer goods from one place to
another in bulk quantity is a major weakness for Falcon world line’s warehouse.
Less Space
The sixth problem that has been identified after visiting the warehouse of Falcon World Lines
is that there isn’t enough storage capacity in the warehouse. Due to not having enough capacity,
Falcon World Lines doesn’t use racks to store goods. Instead they use pallets and even store
goods directly on floor. Falcon World Lines can’t install racks in the warehouse as they don’t
have enough space available in their warehouse. Not having enough space is a problem that’s
a cause for other problems in the warehouse of Falcon World Lines. Due to not having enough
space, Falcon World Lines store goods close to each other. This causes congestion in the
warehouse making it difficult to moves the goods. If cartons that are at that back has to be
moved out, then the workers have to take out each carton by hand. This is time consuming and
increases cost. Due to low space in the warehouse, the goods are racked up upon each other up
to the roof. Stacking good up to such height has a risk of damaging the goods. If the cartons
are stacked too high, removing a carton or even slightly bumping into the stack can cause the
whole stack to fall down resulting in damaging the goods inside and also cause injury to the
worker. Lack of space is the biggest hurdle for Falcon World Lines in achieving economies of
scale. Without having excessive space in the warehouse, Falcon World Lines won’t be able to
store more goods in their warehouse limiting Falcon World Lines to increase their customer
base. If Falcon World Lines wishes to increase their customers and store more goods, they will
In this chapter we have studied and compare the warehouses of different companies who are
dealing in the courier industry and their process of managing the flow of work done in
warehouse. As now a day world is moving towards the simplification of processes performed
20
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
in warehouses. The courier industry is growing with high rate of growth just because of the
technological advancement in the industry which is the major helping hand in simplifying the
process, traceability, on time deliveries of parcels throughout the world. The culture of adopting
the technology is prevailing in the industrial society very rapidly and it is the main reason of
ease and efficiency in the process of Supply Chain of courier industry. Some of the companies
Data Collection
The data for this research is primary data. For collection of data of Falcon Warehouse, we
visited the warehouse and interviewed the Warehouse Incharge Mr Omair. Most of our data
was collected through observation of the warehouse. We observed and inspected the warehouse
completely to find out the problems in the warehouse of Falcon World Lines.
Data Analysis
The data gathered for this project is verbal data instead of statistical data so statistical means
cannot be used to analyze the data. We analyzed the problems in the warehouse by comparing
it with international standards and how the competitors are working. For this purpose, we have
conducted interviews of several persons working in this industry and try to understand the
process of doing work in warehouse and try to find that how the warehouse system plays the
role in the productivity or performance of the company. The companies we have visited are
TCS, DHL, M&P, COSTA Warehousing, Leopard and Fed-Ex. The purpose to visit these
companies is that these are main companies of the courier industry in Pakistan and most of the
companies have the warehouses and the management system as per the standards of
warehousing.
21
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
TCS
TCS has established its warehousing and distribution center in 2004. The purpose of
establishing this division is to provide the third party logistic service to the clients and it is for
the very first time any company is providing such services in Pakistan. The clients of TCS are
from different industries and TCS is managing the products and its warehousing on behalf of
these companies. The warehouses are set to provide the extra ordinary services to the
companies in their respective industry anywhere in the country. The warehouses of TCS are
spread over the area of approximate 650,000 square feet in different cities of the country
offering the services efficiently in the very reasonable rates. The material storage and the
equipment handling are performed on behalf of the clients of the company. The contemporary
techniques in warehousing and highly efficient (out of the box) distribution model is steadily
achieving the key performance indicator (KPI) put by the customers. The process of
WMS. It helps to provide the real time information about the process and increase the
percentage of transparency in the process. The specialized process in which TCS is involved
in is Warehousing, bar-coding, value addition and stock repacking, Reverse logistics. The
process of bar coding help to identify the product and its area of delivery and through bar
coding the special number is automatically generated which help in the tracing of the parcel.
LEOPARD
It is another third party logistic service provider company working in Pakistan. The
company has divided the whole country into eight zones where they have established their
warehouses. Leopard has introduced the concept of mobile express in the country where they
had the products of their clients. The purpose of these mobile express is to minimize the lead
time of the deliveries of product. They have segmented the warehouse into several portions
22
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
categorized as (gifts, lifesaving drugs and the heavy machineries). The traceability of the parcel
is done through a unique code generated by the system installed in the warehouse where they
assigned the code to each and every product at the time of booking.
FED-EX
FED-EX is operating in Pakistan and providing the third party logistics services in the
country. The company manages the warehouse and the re packaging of the material on behalf
of their clients. The warehouses are as per the international standards the parcels are assigned
a system generated codes used for tracking the parcels. FED-EX is managing the Omni-channel
supply chain on behalf of company in which they are involving their top tier warehouse officers
and warehouse management system through which they are getting the continuous excellence
or success.
DHL
DHL is one of the biggest companies operating in Pakistan. The warehousing system
of DHL is an example of an ideal warehousing in Pakistan. From the storage of the goods to
the consumable items, finished goods and etc everything is managed by the DHL as they are
one of the biggest solution and service providers. They share the warehouse or create dedicated
operations to improve the efficiency of the work. The services DHL is providing regarding
warehouse are WMS implementation to facilitate the visibility of the inventory and tracking of
order fulfillment, green warehousing, cross docking, raw material management, storing of
finished goods and raw material. DHL is also providing the temperature controlled
warehousing facilities to their clients as per the need of their product. DHL also provide the in-
M&P
Muller & Phipps is another service provider company working in Pakistan. They are
managing the products of other companies on their behalf. The warehouses are categorized
according to zones and district and connected through a centralized system. The warehouse
management system is connected through an enterprise resource planning system in which the
supplier distributor and the warehouse staff are integrated. The labeling is done to categorize
COSTA
Costa warehousing provides the warehouses to their clients as per their demand, they
managed and customize the warehouse according to the nature of the product to be stored in
warehouse. When it comes to the customization of warehouses COSTA provides the multi-
principals warehousing and single principal warehousing. They managed warehouses with full
sprinkle system maintained annually. The stock record is fully computerized with batch and lot
number assigned to it. They allow their clients to visit their premises 24/7 a week. Through the
computerized system the process of immediate reporting of the parcels is done. The area of
warehouse is approx. 500000 sq. ft. the spacing between the pallets and the racks is as per the
The purpose of looking particularly in this sector of courier companies is to identify the gaps
that where the newly established companies are lacking which is causing harm to their business.
Falcon world-line is established about two years before and is still in the phase of development.
The purpose of these interviews with different companies is to fill the gaps and rectify the
problems facing by Falcon World-line. The purpose is to make the process of supply chain
smoothen as warehousing is the key element in the success of supply chain so the focus of this
project is to identify and rectify the gaps and flaws in the process and design a structure of
24
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
warehouse as per the standards which will help to increase the efficiency in performance of the
organization.
Warehousing Standards
To know the level at which Falcon World Lines Pvt Ltd is working on and what standards they
follow and what standard they aren’t following we took a look at the international standards
being followed worldwide. For this we looked at standards made by United Kingdom
Warehouse Association and compared it with the standards and processes being followed in
Floor Markings.
There should be proper markings on the floor to identify the area of storage and proper
boundaries. It helps to determine where to store goods and which areas to leave for passageway.
Doors.
There should be sufficient loading doors in the warehouse according to the traffic
involved. Ideally there should be a minimum of 2 doors, one for loading and the other for
unloading and they should be parallel to each other. There should also be separate door for
personnel use.
Fuel Storage.
Oil Barrels and Bottled gas should be stored separately in a locked cage/room.
Heating.
The warehouse should be adequately ventilated and there should be thermal insulation.
The pipes, tanks and heating units should be securely and safely located and protected.
Loading Area.
The loading area should be free from obstructions. There should be nothing else in that
area. There should be enough space available to allow the vehicles to turn a circle easily.
25
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
Handling Equipment.
There should be sufficient equipment available for the tasks, and should be regularly
maintained and serviced. Small items like chain, ropes etc should be stored under a cover when
not in use.
Fire Protection.
They should be properly marked and escape route defined. Staff and employees should be
properly trained periodically to use fire equipments and fire drills. There should be a strict No
Stacking.
Carton stacking should be done according to the bottom carton. Cartons should be
stacked up according to the how much weight the bottom carton can hold without getting
damaged.
The processes and procedures currently being used in the warehouse are old and time
consuming. The world is moving at a fast pace with technology advancements being done.
Warehousing plays an important role in minimizing costs for a company. With the current
practices being performed in the warehouse, Falcon World Lines is having the issue of data
inaccuracy and problems in tracing data. It takes them hours or even a day to record data of
orders. This results in late order fulfillment and due to this they have lost some customers like
Shan Foods & Kemei. Companies like Samsung and ChanghongRuba have also limited their
business with Falcon World Lines. To tackle and solve these issues, there’s a need for
restructuring the warehouse of Falcon World Lines and for this purpose we have proposed
some solutions to make the warehouse better and attract more and better customers.
26
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
Problems mentioned earlier were identified upon our inspection of the warehouse during our
visit to the warehouse of Falcon World Lines. Now we discuss the possible solutions to the
problems which can be implemented and make the warehouse more efficient.
Lack of Technology
Upon our visit to the warehouse office, the first thing that we noticed there was the lack of
technology. Warehouses should be having latest technology to ensure that the employees can
work efficiently and effectively. Microsoft Excel is still being used in the warehouse to manage
and track data which is time consuming and contain a risk of human error and data
manipulation. When we discussed this problem with the management of the Warehouse and
Falcon World Lines, they told us that they are a new organization and working on small scale
which doesn’t require high-end technology to work efficiently. On small scale using and
implementing it would be costlier. This is a reasonable argument but in our opinion they need
big, using Microsoft Excel would drag the organization down and make working slow. Using
WMS will make managing the warehouse efficient and effective. Implementing it now will
make it beneficial in the long run. If Falcon World Lines implement a WMS after the
organization grows big, then it will cost them more because the implementation cost, training
Non-compliance to standards
Another big problem that we identified upon our visit to the warehouse was that Falcon’s
Warehouse isn’t working as per standards. There isn’t any proper palletization. Goods are also
being stored on floor which is strictly against the standards. According to standard, Goods
stored shouldn’t be place on floor, they should either be placed on pallets or in racks. (UKWA,
2008). Cartons are stacked up upon one other up to the roof. According to stacking standard,
27
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
multiple cartons can be stacked upon each other but the weight should be bearable by the carton
that’s the base. When we inspected the carton, some cartons that were below were in a bad
condition as they couldn’t bear the weight (Safe Stacking and Storage, 1988). They don’t
maintain any quality standard as well. Cartons stored are in poor condition and torn apart. Upon
discussing these matters with the management, they told us that they don’t have enough pallets
to place them all over the warehouse, for stacking they told us that there isn’t enough space in
the warehouse so they have to use every space possible to store goods. Due to this they stack
The third main problem that we identified and proposed a solution for was the health and safety
issue in the warehouse. In case of fire there are no fire sprinkles or a fire exit. There’s only one
door in the warehouse which is the main door used for every purpose. There aren’t any first aid
boxes in the warehouse in case of any incident, the employee won’t be able to receive proper
first aid in time. The employees aren’t trained enough as well as they were smoking inside the
warehouse which is dangerous as due to the ash, the goods can catch fire. When we visited the
warehouse, there were oil barrels stored in the warehouse but the employees were smoking
carelessly which is highly dangerous as oil is a highly inflammable liquid. Upon discussing
this issue with the management of Falcon World Lines, they told us that to handle a fire
situation there are fire extinguishers installed in the warehouse that are enough to handle the
situation, it is a reasonable argument but in our opinion, fire sprinkles are needed as it sprinkles
water on fire as soon as the fire starts. Fire sprinkles wouldn’t let the fire intensity grow and
will minimize the damage further. Upon further discussion regarding the fire exit, they told us
that they don’t have space to make a fire exit in the warehouse. There are buildings on each
side of the warehouse except for the front which has the main gate. They informed us that there
28
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
are first aid boxes in the warehouse, but they are in the desks inside the office. First aid boxed
Lack of Space
Upon our inspection of the warehouse, we found out that they are having space issues in their
warehouse. Falcon World Lines lacks space to store the goods in their warehouse. Due to this
lacking the goods aren’t stored on pallets and stacked up upon each other. The warehouse
cannot expand neither vertically nor horizontally. Upon discussing this problem with the
management of Falcon World Lines, they told us that the management is well aware of this
problem which is why they allow the goods to be stored in such a way to maximize the use of
available space. We suggested them to buy or rent a bigger and better warehouse which can be
expanded in the future if needed. They replied back by saying that there isn’t enough finance
available to implement this suggestion but they will implement it in the future when the
Benefits of Restructuring
The major chunk of the business is disturbed due to the issue of space shortage and other
inefficiencies in the warehouse but after the implementation of this software in there warehouse
the company is successful to regain some of its clients that are Avior Pharma, Mehran Spices
By the implementations of the proposed solutions we get several perks and benefits, just by
implementing the Warehouse Management System in the warehouse we have gained several
benefits i.e. (space saving, increase in customer satisfaction and Service, and enhance the
Space Saving
When the goods or inventory in the warehouse is managed properly it reduces the
chance of wrong pickings. We can say that it enables the accurate stocking, and stocking of
products can easily be forecasted on the basis of transactions of stocks. It helps to reduce the
over stock and save the space in warehouse. Now the excess space provides the opportunity to
Falcon Worldline Pvt Ltd to engage more clients with them like (Mehran Spices, Avior Pharma
and Pak Arab) which results in increase in business of Falcon Worldline Pvt Ltd.
By the implementation of WMS the customer satisfaction of Falcon Worldline Pvt Ltd
is also increased because of the order fulfillment under the given time period. The clients like
(Samsung Pakistan, Sharp electronic, and etc.) also allow them to increase the order picking of
their companies. The service of the staff improves because of the reducing errors in the work
process.
workers increases because they know where the particular product is placed which saved the
extra time which was been wasted previously in the absence of WMS. Now workers can pick
more order in less time which results in the increase in profit of the company.
Pallets
The benefit of palletizing is that the space saving can easily be done and it helps to
expand the warehouse horizontally as well as vertically. By providing vertical space it is very
easy to pick the pallets by the help of forklift. Previously the movement of vehicles in the
warehouse was not possible due to the improper management of warehouse but after the
30
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
arranging the warehouse in a proper way the movement of forklifts become easy and the good
Managerial Implications
We have visited the warehouse of Falcon World-line several times to rectify the basic problems
which are causing the disturbance in the operations of the organization. The suggestions we
have given to the company is to standardize the process according to the international standards
of warehousing.
• The use of modern techniques and we also suggested them to use the Warehouse
management system (WMS) to make the process smoother and efficient. We had
meetings with their head of the department in which we have discussed the
problems which they are currently facing and suggested them the possible
their products, proper space between the racks should be there, proper vehicles
should be used to avoid any damages or accident in warehouse which can hurt the
company financially and can also be the cause of health and safety issues in
warehouse so, to avoid these issues we suggested them to hire the trained,
certified and licensed drivers which can run their operations in efficient manners.
• Tracking of products in warehouse is key process because order picking can create
the difference so we have suggested them to integrate the process. As they also
provide distribution services for Samsung Pakistan, Changhong Ruba and other
top as in the season of summer the demand of air conditions usually gets high due
31
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
to high heat wave so in order to cope up excess demand they must keep safety
• Success is not that much easy as it looks like, behind the success of any
suggested them that they must train their staff and workers through training and
increasing the productivity of their labour which will be beneficial for the
company.
• Integrating their whole operations was a high end suggestion which was made.
ease and suits their organization as making the right order picking will directly be
impactful to the supply chain productivity so this is the point which must not be
taken lightly. And as both inward and outward freight can result the high changes
for warehouse slotting system; all parties and systems must communicate
words, this means that the system and the team both must provide information
which is critical for each shipment, but this must be enough for successful
• Storing plus retrieving products are the large parts of the business so as a result
rewarding system, especially in pick and pack areas can encourage being doing
reduce inventory handling time and make the best use of warehouse storage. For
businesses like this same type of repair and procedures can help to cut down time
• More likely it was also suggested that they must invest in quality equipment rather
than that low quality machinery which is of no use and waste our precious time by
purchased in order to low down the cost. Minimizing errors could also lead to
make out best results so unlimited man hours and huge amount are lost every year
in this industry due to wrongly labelled items and incomplete or incorrect orders.
By choosing right technology it will allow them to trim all sources of waste, a
proper warehouse management system will define you the errors, identifying
accuracy issues and include maintenance plan to keep warehouse organized and
clean.
Conclusion
The conclusion of this project is that we have chosen the courier industry and have picked up
the company that is in its growing phase or period. We had a detailed conversation with the
officials and chosen the Warehouse department for our research purpose. We have visited their
warehouse several times to identify the problems the company is currently facing which are
causing harm to their business. The problems we have identified in their warehouse are that the
company is unable to follow the international standards of warehouse due to which the
company is facing difficulties in the expansion of their warehouse. The company is lacking in
the technological advancements due to which problems are occurring like wrong picking, stock
counting issues due to these problems the company is facing the issues of late deliveries. Health
33
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
& safety issues, no proper fire exit plans. The solutions we have provided to the company are
that the use of WMS software instead of EXCEL, which will help to integrate all the functions
related to warehouse internally and externally as well. The proper check and balance can be
done through this software. We have offered the company to redesign the warehouse according
to the standards of warehouse followed internationally. The report concluded the problems and
their solutions as the world is moving towards the modernization adapting technologies to
simplify the work process so it is very important to be the beneficiary of the technological
advancements. It is the way to achieve the goals in more simple and efficient way just by
simplifying the process through the use of technology. We asked them to use the proper
firefighting plan to deals with any uncertain incident if occurred by the installation of fire
sprinklers in the warehouse. These are some of the highlighted points which we have discussed
in this report.
Limitations
The biggest limitation and challenge while working on this project was response issue of the
organization as this a competitive era full of competitors and extreme tough work schedule
which make it hard for employees to help and guide university them about the business. Due
to this we had to conduct many short visits to the warehouse to get more and more information
about the warehouse, its structure, the processes and practices they use.
Another limitation for us was that we had to get information through interviewing and
observation only. We couldn’t use any research papers for this project and couldn’t use any
software to analyze data as we don’t have any statistical data. We had to identify the problems
The time limit for this project was only 4 months and few days. Due to lack of time we focused
on Falcon World Lines only. The limit for this project is that it is only till Karachi. Due to time
34
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
constraints we couldn’t visit their warehouse in Lahore which could have made this project
better.
Getting information from the employees and management was hard as they were afraid the
information will be leaked. They didn’t provide us with any confidential information which
References
https://www.shapecut.com.au/blog/7-benefits-of-warehousing/
Barry, B. (2017, 8 7). 15 Ways to Improve Warehouse Space Utilization. Retrieved from
http://multichannelmerchant.com/blog/15-ways-improve-warehouse-space-utilization/
Chand, S. (n.d.). Warehousing: Function, Benefits and Types of Warehousing. Retrieved from
management/warehousing-function-benefits-and-types-of-warehousing/27952
Granato, R. (2018, october 4). 7 Reasons for Using Autonomous Robots in Your Warehouse.
http://www.supplychain247.com/article/7_reasons_for_using_autonomous_robots_in
_your_warehouse
https://www.islandpacific.com/purchase-order-management/
36
RESTRUCTURING WAREHOUSING OF FALCON WORLD LINES
Order Picking In The Warehouse - Supply Chain / Logistics . (n.d.). Retrieved from The
warehouse-2221190
Pallet racking solves the space problems of clothing wholesaler SanMar in its distribution
(n.d.). Review of wheat storage and grain issues. FAO Investment centre.
Role of freight forwarding and logistics industry of Pakistan. (2018, september 17). Retrieved
(1988). Safe Stacking and Storage. Wellington : Occupational Safety and health service.
tonder, e. v. (2018, April 18). How did Ancient Human Presernve Food? Retrieved from
humans-preserve-food/
https://www.tradegecko.com/learning-center/what-is-inventory-management
Appendix