Summer Internship Project Report

on

“Warehouse Management and its future prospects at OM Logistics LTD.”

In Partial Fulfilment of

PGDM FMG-XXVI

Submitted to Prof. Sumeet Kaur

Submitted by Ram Bangad

Roll no 261097

FORE School of Management, Delhi

July 2018

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Declaration

I am, Mr. Ram Bangad (Roll no.- 261097) have completed my summer internship at OM

Logistics Ltd. and have submitted this project report entitled “Warehouse management

and its future prospects at OM Logistics Ltd.” towards part fulfilment of the requirements

for the award of the Post Graduate Diploma in Management (FMG-26) 2017-2019.

This Report is the result of my own work, no part of it has earlier taken comprised any

other report, monograph, dissertation or book.

Date:

Ram Bangad Roll No: 261097

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 Certificate

This is to certify that Mr Ram Bangad Roll No.- 261097 has completed his summer

internship at OM Logistics ltd.., Delhi and has submitted this project report entitled

“warehouse management and its future prospects at OM Logistics Ltd,towards partial

fulfilment of the requirements for the award of the Post Graduate Diploma in Management

(FMG-26) 2017-2019.

This Report is the result of his own work and to the best of my knowledge, no part of it

has earlier comprised any other report, monograph, dissertation or book. This project was

carried out under my overall supervision.

Date: 04/07/2018

Place: New Delhi

Internal Faculty Guide: Prof. Sumeet Kaur

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 Acknowledgment

First of all I would like to thank all the staff of OM Logistics Ltd. That trained and guided

about the whole logistics process.

I would like to thank my faculty guide Prof. Sumeet Kaur, senior professor in Finance at

FORE School of Management, New Delhi, for her invaluable assistance.

A special acknowledgement towards Mr. Somveer Sharma (operations executive), my

Company guide, who inspired me to work hard and provided me with every possible

information required by me.

Ram Bangad

261097

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 Executive summary.

This project report gives the overview of the OM logistics and what business the OM

logistics is into and also gives brief information about the services offered by the OM

logistics limited. This report also put emphasis on the WMS (warehouse management

systems) which highlights the latest techniques in warehouse management.

The methodology of this report is divided into two parts viz.

Part A- The part A highlights the current warehouse management of the OM logistics

limited and explain the operations process at the Binola Hub of the OM logistics Ltd. i.e

how the material in the warehouse is managed and also highlights the hierarchy and roles

of different staff at OM logistics ltd.

Part B- The part B of the methodology highlights about the future prospects of the

warehousing in OM logistics Ltd. Using the chaotic warehouse management which uses

the barcoding and automates the warehouse. Big companies like Amazon and Alibaba

are already adopting the chaotic warehouse management systems.

It is recommended to OM logistics that it should adopt the chaotic WMS in order to

manage its warehouse more effectively and later it can enter into the B2C segment of the

logistics using its efficient supply chain network.

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ABBREVIATIONS

COF- Certificate of fact

POD- proof of delivery.

SPD- speed trucking

CN – consignment note

DDR- daily delivery report

WMS- Warehouse management systems

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Table of Contents

SR. Content Page

no. no.
1. Chapter 1 Introduction
1.1 Background 07
1.2 Services offered by om logistics ltd 09
1.3 Relevance of the Study 11

2. Chapter 2 Literature Review 11

2.1 Latest WCM techniques in warehouse management

3 Chapter 3 Objectives of the study 15

4 Chapter 4 Methodology 16
Part A- Warehouse management Binola Hub at OM logistics 16
Ltd.

A1. Introduction 16
17
A2. Workload at Binola Hub
17
A3. Operations process at Binola hub

A4. Hierarchy and roles at Binola hub 20

Part B Future prospects of warehouse management

(chaotic storage) 21

B1. How chaotic storage works 21

B2. Benefits of chaotic storage 22

B3. Implementation of chaotic storage 24

B4. Analysis 25

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 5 Chapter 5.1 Recommendations 26

References 27

1) Introduction

1.1) Background-

 “The company started in 1983 under the name Om auto carriers”

 The association with Maruti has diversified the scope for OM logistics, fusing OM

auto carriers with Om industries.

 The name OM logistics was introduced in 1991 by company chairman Mr. ajay

Singhal.

Other Business in which OM logistics is into are:

1.) Om infra construction- for both internal and external construction purposes

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2) Om telecom logistics ltd.

3) Om Trans - for overseas transport

4) OMX Info Management ltd.

5) Om Trax- packers and movers

OM Logistics strives to reach to every corner as its consumer desires. As per the

customers requirement. The company align to strategy to keep the brand on a go. The

company focuses on delivering operational excellence to provide feasible, economic

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solutions to the complex logistics problems. The company has a progressive mindset. “it

caters to every technological need for business with a modern touch, keeping the world

in motion.

OM Logistics is a 360-degree (from procurement to delivery to disposal) service provider

in the logistics industry.

1.2) Services provided by om logistics.

Air services-

OM Logistics is among the pioneers in India’s cargo space, offering the fastest and safest

way to deliver goods within the committed delivery time, to any part of the country, with

optimized & cost-effective solutions. Based on years of experience they have vast

expertise in offering reliable Air Cargo Services. Following a systematic framework, all

the procedures are carefully conducted right from storage to the delivery of the cargo.

The advanced track system of the om logistics allows customer to track their material.

multiple routing options are available to provide ‘Same Day Delivery’ & ‘Next Flight Out’

services to their clients, it deals with multiple Air Taxi Operators such as Jet Airways,

IndiGo, Air India and SpiceJet, who help Om logistics to maintain the best standards

Surface services

Om logistics consists of over 5000 dedicated fleet of vehicles and the drivers are trained

enough in order for the timely delivery. It can cater to any kind of logistics requirement

across the country with reliable, efficient logistics business.

According to the needs of the client company provides three types of delivery viz.

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 1. Surface delivery- charges 7/ kg and delivery is estimated to be done in 7 days from

Delhi to Chennai and in 6 days from Delhi to Maharashtra

2. Express delivery – it charges around 8/kg and delivery is estimated to be done in

8 days

3. Speed trucking (spd) - in speed trucking form of delivery, the delivery charge is

estimated to be 25/kg and the time of delivery is reduced according to the

convenience of the customer.

Rail cargo services

Om logistics hold more than 20 years of delivery in rail transportation. According to

the requirement of the customer, the goods can be delivered through the train whose

one compartment is taken on lease by the Om logistics for 1 year. They hold sound

expertise in safely transporting the consignment from one location to another via rail

transportation. Utmost care is taken to make sure that goods are delivered to desired

location without any kind of harm or damage. The usual rate per kg of the rail transport

is 28/kg,

Warehouse services at Om logistics Ltd.

Om logistics includes integrated pool distribution, cross docking, warehousing and

transportation solutions. World-class warehousing facilities are provided at key

industrial hub across India (ex. Gurugram, Tamilnadu, Pune etc.They manage more

than 15 million sq ft. Of warehouse space across the nation. Warehouses are taken

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 by various customers on rent from Om logistics I.e it consists of multi-client

stockrooms. (As evident from their Gurugram and Manesar warehouses)

The Warehouse services includes short term, long term as well as customized

solutions.

The clients also benefit from a delivery system which is co-op in which shared routes

are utilized which reduces the transportation expenses to a great extent.

1.3) Relevance of the study.

 This study will be relevant as it will challenge the traditional warehousing systems

of the OM logistics ltd. It would also highlight the shortcomings of the traditional

warehouse systems such as, there is always 1-2% material lost inside the

warehouse and with the implementation of Chaotic WMS, the OM logistics would

greatly enhance their speed, efficiency and effectiveness of the operations in their

warehouses and can also enter into the B2C segment by implementing the chaotic

as they have more than 1500 warehouses.

2) Literature Review

2.1) Warehouse Management Systems

All solutions in the WMS (Warehouse management systems) support basic core WMS

capabilities. Many also support various levels of extended WMSs. Core WMS capabilities

are the basic functions of receiving, put-away, storing, counting and picking, packing, and

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shipping goods. Extended WMS capabilities are value-added capabilities that supplement

core functions, such as labor management, slotting, yard management and dock

scheduling. Beyond functionality, there are additional considerations that influence the

positioning of WMS providers. These issues contribute to the positioning of WMS

providers within the WMS Magic Quadrant. In previous years, the most compelling issues

that positioned vendors in the Leaders quadrant were the breadth and depth of their WMS

offering, and the vendor's and product's ability to handle the most complex warehouse

operations. While this remains valid for the most sophisticated operations, we have

witnessed a bifurcation in the WMS market between the high-performance, complex and

Sophisticated end of the market and the mass market where "good enough" functionality

is "good enough." This is not because companies chose to sacrifice functionality, but

instead because globally the preponderance of warehouse operations are Level 3 or

below, and these warehouses do not require nor would they use advanced functionality.

There is a very clear market for high-end WMS solutions where performance is critical

and cost is less of an issue. At the same time, there is another very large market where

other factors, like reliability, service and support, good-enough features, and lower cost

of ownership dominate. This is a very large WMS market for what Gartner's stratification

model would call Level 2 and Level 3 warehouse environments that would be satisfied by

a megasuite-vendor-provided WMS or a less functionally robust ISV WMS offering. At the

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other extreme, there is a healthy, although smaller, market for high-end WMS solutions

aimed at complex and sophisticated Level 4 and Level 5 operations.

Although functionality remains at the top of the list of user evaluation criteria, there's near-

functional parity for core WMS capabilities across WMS providers. Given the mature state

of the WMS marketplace, a combination of the following vendor and product topics affects

the position of vendors in this year's WMS Magic Quadrant:

 The vendor's market understanding and its vision for next-generation WMSs and

supply chain execution (SCE)

 The adaptability of the WMS's technical architecture

 The long-term viability of the vendor and product, given the long life span of WMSs

 Current and projected growth of both revenue and total numbers of clients

 Market awareness, name recognition and reputation

 Product or vendor differentiation

 Vendor commercialization of innovations

 Integration with other applications and support for cross-functional process

orchestration

 Deployment model options (e.g., on-premises/cloud or multitenant SaaS)

 Ability to translate business goals and objectives into specific WMS functional

requirements

 The ability of vendor to employ new investments to deliver enhanced business

value

 The vendor's ability to sell, implement and support global deployments

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  The vendor's ability to deliver value through service, support, consulting and

training

 The vendor's openness to, and support of, an ecosystem of partners

 Customer satisfaction

 SCE as a platform or SCE convergence

The following factors affect the WMS marketplace and also influenced vendor positioning

in this year's WMS Magic Quadrant:

 The marketplace for WMSs is becoming more global, with more Gartner WMS

inquiries coming from companies either domiciled in or with operations in emerging

markets. Consequently, for this Magic Quadrant, we had more stringent inclusion

criteria related to a vendor's global presence. This also affected the inclusion and

positioning of vendors.

 Business and product viability, which is always a concern for buyers, has increased

in importance, given the higher concern for risk and the longevity of investments.

This affects smaller vendors that might have robust WMS products but a current

size that influences their viability rating.

 We continue to place strong emphasis on innovation and thought leadership.

Furthermore, since SCE convergence is a compelling next-generation best

practice, this weighed heavily as well. However, these changes do not mean that

vendor capabilities necessarily deteriorated from previous years. Rather, what

factors influenced certain items, such as innovation, caused scores to change. For

example, five years ago, cloud was more of a distinguishing characteristic of

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 innovation, but, as most vendors developed cloud strategies, the influence of cloud

diminished.

 More emphasis continues to be placed on a vendor's ability to successfully serve

its customers with solid products, along with strong service and support. The

strength of a vendor's ecosystem of partners that can enhance its ability to serve

customer wants and needs is also important. While it is important for vendors to

have their own strong internal delivery, customers prefer vendors with ecosystems

of partners so they can alternatively source services if or when needed.

Objectives of the study

1) The first subjective of the study is to understand the current warehouse

management systems of the Om logistics ltd. and to know the whole process of

the warehouse management at OM logistics ltd.

2) The second objective of the study is to highlight is chaotic warehouse management

systems and its implementation feasibility in the logistics companies and scope

beyond the chaotic warehouse management systems

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 Methodology

Part

The Warehouse Management in OM logistics (Binola) at OM logistics

After spending 5 days in head office of the Om logistics, I went to Binola, Haryana hub of

the om logistics which is 10 km away from Manesar, Gurugram.

On the day 1, I learnt the process at the warehouse so as to how the warehouse work is

managed and when the Binola hub/warehouse is used to keep the belongings of the

customers (goods have to be used for the commercial purpose after delivery to the

consignee as the company deals in B2B).

The company mainly deals in auto-parts and it constitutes about 90 % of the company's

business.

The goods which are booked from Delhi or the places nearby Delhi in part load used to

come to binola and materials/goods which are booked in full load doesn't go to any hub

or warehouse as they go directly to the customers.

A1. Workload at Binola Hub

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On Monday, the load of work at Binola Hub is pretty low as the manufacturer generally

closes the operations on Sunday and hence from the manufacturers side, the goods are

not delivered on Sunday and the materials are out for delivery on Monday and Generally

reaches on Tuesday and from Tuesday onwards the workload increases as the

manufacturers again starts the operations from Monday and due to which the workload

increases from Tuesday and workload is at peak on Saturday and Sunday as the

Operation in the Om logistics depends upon the manufacturers business

A2. Process at Binola Hub

 When the truck/lorry comes to the binola hub from the places nearby, it requires to

provide a challan in order to enter the hub and when it enters the hub,

 After sometime the seal in the lorry is opened and the lorry is ready to be unloaded.

 On the front side of the Binola Hub, the material is unloaded depending upon the

priority I.e if the material is booked in the form of Speed trucking, (spd which costs

25/kg, also depending upon different company's relationship with different

customers) the material will be unloaded quickly and then also loaded quickly as it

has to be delivered on the priority basis as per the requirement of the customer.

 If the material has to be delivered in air cargo or the train cargo then also the

material is quickly unloaded and then loaded because the material which is booked

to be delivered via Air or Train, will be out for delivery from the binola hub on an

urgent basis

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  But if the material is booked in surface or express mode then generally the material

is kept for 6-7 days as per the demand of the customer

 When the lorry comes at the front side, the material is unloaded by seeing the CN

number of the package. Material comes in the form of part load I.e there can be

material of different customers.

 The materials can go to different places and on basis of place for which the material

has to be delivered, the material will go different to different location inside a Binola

hub.

 For ex. The material which is booked for Chennai, or any other place will go to the

space which has been allotted to Chennai. And is kept for 6-7 days if it is an

express or a surface material and the respective material will go their respective

spaces for ex. the material which is booked for Bhopal will go to space decided for

Pithampur, Madhya-Pradesh

 One supervisor is assigned per truck and about 3 labors are also assigned to

unload the truck. The supervisor checks if all the materials are correctly unloaded

and also ensures that materials go to the right Spaces and if all the materials with

the same CN (consignment note) are unloaded, then the supervisor makes tick

mark on that CN number.

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  And if the certain material is lost or damaged the supervisor will report to higher

authority I.e the operations in-charge of the Binola hub who in turn will report to the

booking office from which the material is booked.

 And if the material is lost or damaged the COF of the material will be prepared

which would be prepared by the Om logistics ltd. Which helps customer to claim

the insurance of the lost or damaged material.

 If a material is found in excess the supervisor will write excess while preparing

daily report of unloaded materials in the system.

 On the back side of the Binola hub the material is loaded which has to be delivered

to Delhi and the places near-by.

 Same process takes place as the unloading but the materials which are to be

delivered first would be loaded outwards inside the lorry and the material which

are to be delivered at the end are loaded inwards inside the lorry

 As soon as the material is out for delivery the status in the systems is updated and

the daily delivery report is made by the supervisors of the respective lorries

 The heavy material inside the lorry is lifted by means of forklift & the normal

material is moved by pallet jack

Forklift

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 Hierarchy of the binola Hub

Hub manager

POD head HR manager Accounts head

Traffic control dept. Operation In-

Senior Supervisor
charge

Super-visor

Roles of different staffs at the Binola warehouse.

HUB Manager- looks after whole affairs of the HUB maintains good relationships with the

important customers, co-ordinates with the other branches.

HR manager- looks after the employee policy of the hub. Distribute portfolios to the staff.

Operations in-charge looks after the internal operations of the warehouses.

Traffic control department- clears the work load at the Binola Hub and decides which lorry

will depart and when it will depart.

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POD department- POD department looks after the POD’s received by the Om logistics

from the customers (consignee)

Super-visor looks after the loading and unloading of the lorry and also ensures that the

material has been kept at the proper space.

Part B

Future prospects for Warehouse Management at OM Logistics Ltd

“The Chaotic Storage Warehouse Management Systems”

B1. How chaotic storage works.

Identifying products and locations

A chaotic storage is possible only with warehouse management software. The software

is able to aggregate information about specific products and their locations by employing

the use of barcodes and barcode scanners. These systems allow users to print barcodes

that can be used to organize and track inventory across multiple warehouses. Barcodes

hold data that can be appropriated by a barcode scanner and used to differentiate and

track of individual items within multiple warehouses.

Warehouses with inventory management software are able to designate locations in their

warehouse via barcoding. Users are also able to generate a type of barcode called stock

keeping units (SKUs) to identify specific products. These SKUs are scanned into various

locations throughout the warehouse. After SKUs or barcodes are scanned, the

warehouse’s inventory management system then keeps detailed records of which items

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are where, how many items are located in a specific location, and anytime an item is

added or removed from a location.

Picking

At a company like Amazon and Alibaba, plenty of orders come so it is not enough for

pickers to just know product locations. In order to keep up with orders, pickers need

optimized routes and processes. Data collected on products and locations is used to map

out the most optimal routes for pickers.

Instead of picking orders one at a time, pickers can pick orders in batches. So, instead of

running all over the warehouse to fulfill orders, management software will inform

employees so as to how many orders need to be picked, where it is, and the best route

to get it. This eliminates wasted time on overlap created by going to the same location

multiple times to complete separate orders and a also the manual work. These feature

alone are a tremendous help, but they’re really just a fraction of inventory and warehouse

management systems capabilities.

B2. Benefits of chaotic storage

Coupling chaotic storage and an inventory management software enable you to take

control of your warehouse and provide a wide range of benefits. These benefits may not

be obvious, but they are plenty. They include:

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  Flexibility: Empty storage space if filled up immediately, which means the

warehouse becomes more averse to the market’s demand, and you save money

by not wasting valuable storage space.

 Space: Implementing chaotic storage forces owners to organize their locations

more efficiently which enables you to store more products better.

 Accuracy: While it may seem odd to stock your products at random, this actually

helps employees avoid mix-ups, i.g., grabbing the wrong size or color item, which

would ruin an order. So, keeping a T-shirt next to the books acts as an added layer

of protection against picking errors.

 Simplicity: For new employees, it can be difficult to learn where everything is within

a warehouse. Inventory management takes the guesswork out of the picking

process and tells employees exactly where to go and what to pick. This makes it

easier to employee and train new hires.

 Optimization: Warehouses can be overwhelmingly large. Chaotic storage

eliminates the wasteful back and forth movements to fulfill an order with varied

contents. These management systems can compute an optimized fulfillment route

B3. Implementing the chaotic storage

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Now that some of the benefits of the chaotic storage are evident and possibilities of

chaotic storage the company may be itching to get started.

First things first, a company needs to look current warehouse structure and make some

assessments. If the company does not have an inventory or warehouse management

software start shopping around.

After the company decides what management software syncs with the business you are

ready to get to the real work

. Implementing a management system can take some time hence, the company will want

to make sure it is ready to implement the WMS. The company needs a master list of all

the products that includes information like item numbers, unit of measures, descriptions,

purchase cost, vendor info, and other pertinent information. Gathering this information

ensures that the company will have all the information you need to import into a

management system.

Now it’s time to put those barcode printers to work. The structure of the warehouse can

be rebuilt by establishing locations with unique barcode identifiers. These locations will

serve as storage space for the products which will also be barcoded. Then create SKUs

are created to identify products placed in these locations. After the WMS is implemented

in a warehouse , and have scanned the company’s newly barcoded products into now

established locations, it is good to go.

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B4.Analysis

One common trait among entrepreneurs is that they are always on the lookout for more

functionality from their systems. It may be noticed that In this article inventory

management and warehouse management are used interchangeably, but in actuality,

these systems are not the same.

At a base level, all there is a need to achieve chaotic storage is an inventory management

system, the guess is that the company would prefer something that is able to satisfy those

needs and more. If this is true, then the company may be more interested in warehouse

management systems like skuvault that is able to perform all of the things an inventory

management software can and more.

The biggest difference between these management systems is that a warehouse

management system provides more functionality. Warehouse management system have

can integrate entire OM logistics through powerful integrations. These integrations

automate different areas of the business such as accounting, shipping, inventory

management, and more. By automating different areas of the OM logistics can get a more

streamlined, organized, and error-free business structure that will boost the overall

performance and greatly enhance the efficiency of the Warehouse.

5. Recommendations to the OM logistics ltd.

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1.) Today big players like amazon and other big logistics companies are adopting the

latest warehouse management systems and introduced the chaotic warehouse

management systems.

2.) Rather than clinging to the traditional warehousing techniques, the company should

adopt the chaotic warehouse management systems and automate the whole

warehousing operations

3) As the company adopts the chaotic WMS by making use of barcodes it can also enter

into the business of B2C logistics in addition to B2B logistics.

References

https://www.skuvault.com/blog/amazon-warehouses-how-to-harness-chaos

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja

&uact=8&ved=0ahUKEwil_730nIXcAhUMPo8KHXdsAPsQFggmMAA&url=http%3A

%2F%2Fomlogistics.co.in%2F&usg=AOvVaw0slMd0pUnchL5azOXhQ0On

https://www.tradegecko.com/learning-center/inventory-management-techniques

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