DELHIVERY – DAMAGE

REDUCTION
IIM Calcutta

SEPTEMBER 30, 2019

MBAEX
IIM Calcutta, Joka
Contents
Stacking – Palletizing ..................................................................................................................................... 3
A Guide for Palletizing Freight: ................................................................................................................. 3
Use a Slip Sheet ..................................................................................................................................... 3
Put Boxes in Stable Position .................................................................................................................. 4
Stack in Columns ................................................................................................................................... 4
Strap for Extra Safety ............................................................................................................................ 4
Use Stretch Wrap .................................................................................................................................. 4
Help from Labels ................................................................................................................................... 4
Stack in Pyramid .................................................................................................................................... 4
Neglect Wide Gaps ................................................................................................................................ 5
Interlock Boxes ...................................................................................................................................... 5
Create an Overhang .............................................................................................................................. 5
Effective Packaging ....................................................................................................................................... 5
Handling Freight ............................................................................................................................................ 6
Training the Ground Crew............................................................................................................................. 8
Step 1: Conduct a Training-needs Assessment ..................................................................................... 8
Step 2: Determine the Warehouse and Logistics Training Methodologies .......................................... 8
Step 3: Run Pilot Programs or Courses ................................................................................................. 9
Step 4: Create a Schedule and Implement the Training ....................................................................... 9
Step 5: Check if Employees can Apply What they Learn..................................................................... 10

Delhivery Logistics – Observations

No Fire Safety equipments were observed at the premises of the warehouse.

Since most of the items at the warehouse are flammable, including paper cartons, fire safety is of
utmost importance.

Fire can have a devastating effect on a business and poses a serious risk to the safety and welfare of
building occupants. Fire can cause expensive damage to property and equipment and destroy important
data. This may result in lengthy and expensive downtime while repairs and rebuilding take place. To help
warehouse and facility managers protect against fire, we offer the following recommendation:

1. Conduct a fire safety audit to highlight potential fire risks around the facility. This will help to
determine the fire protection solution required.

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 • Hazards will vary depending on the facility but can include electrical equipment, flammable
liquids, combustible waste material or heavy vehicles and machinery.

• Consulting a fire protection specialist can help to ensure all hazards are identified and the
most appropriate fire protection solution is installed.

2. Keep up to date with regulation and legislation. Warehouse and facility managers must know their
responsibilities when it comes to ethical and legal fire safety requirements. Australian legislation and
standards relating to fire safety change regularly so it’s important to stay on top of things. • Keep up to
date on all national and state-based fire safety regulations and standards in relation to fire protection
equipment, maintenance or training. It’s a good idea to contact a fire protection specialist. • Develop a
fire prevention plan in accordance with Australian Standard AS3745:2010 “Planning for Emergencies in
Facilities”.

3. Install adequate fire protection equipment. Fire protection equipment can include basic fire
extinguishers or fire hose reels, passive fire solutions such as fire doors or more advanced fire detection
and suppression systems. When deciding on the most suitable fire protection solution, considerations
include:

• legislation and standards

• size and type of building

• materials being handled on the premises Check whether trucks, forklifts and other mobile
plant and machinery on site require specialised vehicle fire suppression systems.

4. Service and maintain: A high level of reliability is essential when it comes to fire protection. Fire
protection systems and equipment should always perform to the standard to which they were originally
designed and installed.

• Regular testing can validate the functionality of the systems and equipment and help uncover
any faults or issues that may cause malfunction.

5. Provide appropriate signage for all hazards, fire protection equipment and emergency exits.

• Fire extinguishers and other fire safety equipment should be clearly marked.

• Emergency exits signs should be visible so that in the event of an evacuation, all building
occupants, including less mobile residents, can be directed to escape quickly.

6. Train: A confident team that is able to respond appropriately in the event of a fire is an invaluable
investment and can substantially reduce the impact of a crisis.

• Warehouse staff should know how to respond to a fire emergency and how to use the fire
equipment onsite.

• Fire safety training can be included in staff induction where new employees are briefed and
trained on what to do in the event of a fire. This includes temporary and casual warehouse staff, who
should be briefed on emergency response procedures.

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 • Maintain an accurate entry system to track staff moving and out of the warehouse. In the
event of a fire, this can help in conducting an emergency evacuation head count.

• Fire wardens should be fully trained on their responsibilities, fire equipment and the
emergency warning and communication systems in their premises.

How to train your employees for effective logistics management?

An effective training and development program can greatly improve logistics management within a
company. Relevant skills and knowledge are critical to run logistics efficiently. Logistics training
programs usually cover subjects such as management, managerial decision-making, distribution and
logistics and supply chain management. It is up to companies to opt for training and development
programs that guarantees positive outcomes.

Nowadays, more and more global organizations are choosing digital learning as a form of training, which
includes solutions such as: webinars, gamification, scenario-based video training, micro-learning etc.
Such innovative forms of learning have proven to be very engaging and interesting for learners. They are
more likely to complete their training and at the same time apply what they are learning directly to their
jobs. Besides, digital learning has gained increased popularity due to its practicality, accessibility and
flexibility

Such training can help improve your logistics and therefore lead to smooth and efficient operations.
Appropriate logistics management results into increased revenue. Improved customer service can bring
a good reputation to a company’s brand and generate more business, and supply chain visibility creates
opportunity for major cost savings in operations. Additionally, logistics management will give a company
control over inbound freight, keep inventory at optimal levels, organize the reverse flow of goods, and
utilize freight moves on the proper transportation modes – all of which can cut costs significantly.

Stacking – Palletizing
We observed that no items in the warehouse were properly stacked. TVs were thrown on the ground
and cardboard cartons of music systems were damaged beyond repair. Hence we present the
recommendations below

A Guide for Palletizing Freight:

Use a Slip Sheet
This is a plastic sheet, used to protect cargo on the bottom of the pallet. On wooden pallets, spaces
between decks can be up to 4 inches, which results in no support of the boxes’ bottom. To avoid
compression strength deprivation, use slip-sheets to cover the bottom of the pallet.

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Put Boxes in Stable Position
It’s a simple physics law: create a stable base layer by placing the heaviest boxes on the bottom of the
pallet. The top layer should be full for steadiness, but if there are not enough boxes to fully stack a
pallet, place the last few along the outside edge.

Stack in Columns
For greater stability, boxes should be stacked in columns with one box directly over the other. To reduce
the danger of damage, stick items as close to each other as possible. Column stacks prove to be the best
way to make pallets stable and safe for shipment.
Strap for Extra Safety
Use metal strapping or plastic wrap to secure individual pieces over 150 pounds to the pallet. Keep
banding and straps close to the load to minimize damage.

Use Stretch Wrap

Putting boxes into columns can make the load sensitive to shifting. The best solution to this problem is
to use a stretch wrap. It can be applied manually or with the help of a wrapping machine.

Help from Labels

For correct palletizing, print a visual reminder of proper pallet patterns and place it on the container or
provide it to the staff. Also, don’t forget to label all shipment pallets with an address and phone number.

Stack in Pyramid
Pyramid-shaped loads may appear to be stable, but it is a less secure and less steady form of palletizing.
The top boxes in a pyramid have a high risk of damage. Don’t build pyramids.

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Neglect Wide Gaps
Some wooden pallets have wide gaps between boards, around 4 inches. When you bridge this gap with
a box, you create an overhang situation which reduces a box’s compression resistance potential.

Interlock Boxes
Interlocking can reduce strength by 50% and lead to freight damage. Since 2/3 of potential compression
strength is in vertical edges and corners, it is important to stack boxes edge-to-edge and corner-to-
corner.

Create an Overhang
Overhang happens when boxes are hanging over the edge of the pallet. When this happens, two edges
of the box that are not hanging get all the work for load support. Overhanging exposes freight to
damage and decreases a pallet’s strength. Pallet overhang can reduce top to bottom compression up to
30%.

Effective Packaging

Packaging has a significant impact on the efficiency and effectiveness of retail supply chains, where
improvements can be achieved through the adaptation and development of the concept of packaging
logistics. In order to enable these improvements, models are needed that facilitate evaluations along
the supply chain and show the activities involved in the packaging logistics process. The knowledge and
awareness of the importance and potential of the packaging logistics activities along the supply chain is
low. Case studies involving companies from the Swedish and the Dutch retail industry were conducted
to identify packaging logistics parameters along the retail supply chain. The concept of packaging
logistics is explained, and the paper discusses how a systematic evaluation model from a packaging
logistics perspective should look like. Finally, a conceptual analysis model for packaging logistics is
presented.

And to ensure, that your products are safe in their journey, packaging of the goods play a vital role. In
here we are discussing the importance of packaging in logistics.

1. Products Are Protected

Products that get damaged in the transportation process can create significant difficulties. It will not
only cost you the value of the damaged product and shipping cost but, there is also a possibility you also
need to send replacements. Which gives you an additional cost.
Damaged goods upset clients, and gives the company a poor name. A good logistics packaging keeps
products safe, and ensure that your product arrives at their address in the perfect form and free from
any damage.

2. Give vital information to the customers

A distributor requires a lot of information about the product. And a transportation packaging is a

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suitable position to display the same.Numerous things can be printed on the packaging boxes. Simple
things, like which way up the transportation package required to put, or the products in the package are
fragile or not. One can also give detailed handling guidance, for example, an appropriate temperature
range for the products which is getting delivered.

3. A good packaging makes storage of goods possible

A suitable packaging allows to store products easily. It really does not matter what the size of the
product, or how delicate a product is if the right packaging is done.

4. Product packaging can even help you in increasing your sales figures
If the packaging of your product is retail ready, your goods can be displayed on the counters in their
custom display. By selecting packaging that highlights brand colors, product information, and other
information, which is required to know by a customer, the chances of sales goes up are quite bright.

Handling Freight

When designing a material handling system, it is important to refer to best practices to ensure
that all the equipment and processes—including manual, semi-automated and automated—in a facility
work together as a unified, system. By analyzing the goals of the material handling process and aligning
them to guidelines, such as the 10 Principles of Material Handling, a properly designed system will
improve customer service, reduce inventory, shorten delivery time, and lower overall handling costs in
manufacturing, distribution and transportation. These principles include:

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1. Planning: Define the needs, strategic performance objectives and functional specification of the
proposed system and supporting technologies at the outset of the design. The plan should be
developed in a team approach, with input from consultants, suppliers and end users, as well as from
management, engineering, information systems, finance and operations.

2. Standardization: All material handling methods, equipment, controls and software should be
standardized and able to perform a range of tasks in a variety of operating conditions.

3. Work: Material handling processes should be simplified by reducing, combining, shortening or

eliminating unnecessary movement that will impede productivity. Examples include using gravity to
assist in material movement, and employing straight-line movement as much as possible.

4. Ergonomics: Work and working conditions should be adapted to support the abilities of a worker,
reduce repetitive and strenuous manual labor, and emphasize safety.

5. Unit load: Because less effort and work is required to move several individual items together as a
single load (as opposed to moving many items one at a time), unit loads—such as pallets, containers
or totes of items—should be used.

6. Space utilization: To maximize efficient use of space within a facility, it is important to keep work
areas organized and free of clutter, to maximize density in storage areas (without compromising
accessibility and flexibility), and to utilize overhead space.

7. System: Material movement and storage should be coordinated throughout all processes, from
receiving, inspection, storage, production, assembly, packaging, unitizing and order selection, to
shipping, transportation and the handling of returns.

8. Environment: Energy use and potential environmental impact should be considered when designing
the system, with reusability and recycling processes implemented when possible, as well as safe
practices established for handling hazardous materials.

9. Automation: To improve operational efficiency, responsiveness, consistency and predictability,

automated material handling technologies should be deployed when possible and where they make
sense to do so.

10. Life cycle cost: For all equipment specified for the system, an analysis of life cycle costs should be
conducted. Areas of consideration should include capital investment, installation, setup,
programming, training, system testing, operation, maintenance and repair, reuse value and ultimate
disposal.

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Training the Ground Crew

Step 1: Conduct a Training-needs Assessment

The first thing you will need to do is identify the most important skills required to improve efficiency and
effectiveness of each team in your warehouse and logistics operation. You’ll need to conduct a gap
analysis, by identifying competency goals for each relevant skillset, identifying current competencies
and prioritizing training efforts where the gap between current and desired levels is widest.

Step 2: Determine the Warehouse and Logistics Training Methodologies

Different training needs need different approaches. For example, you can’t effectively train forklift-
truck-operators to work more safely or efficiently without putting them on a truck. However you can

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decide whether to use an external training company or whether to have some of your own people
certified as trainers and then run an internal training program.
On the other hand, many warehouse and logistics training needs can be met using online materials or
PC-based training packs. Others might need to be covered off with classroom training.
For any topics you decide to train using in-house resources, you will also need to develop appropriate
training material or, have a specialist provider develop it for you.

Step 3: Run Pilot Programs or Courses

It makes sense to test each training program or course that you develop, with a pilot class comprising a
good cross-section of employees, especially if it’s a program that will be delivered to people from
multiple teams. Use feedback from the trainers and the trainees to adjust and refine the content,
delivery method, and materials before you implement in earnest.

Step 4: Create a Schedule and Implement the Training

Now you should be good to go. You will need to plan your training workshops and courses to a schedule
that enables all relevant employees to benefit as soon as possible, without leaving you short of staff to
keep your operation running while your warehouse and logistics training takes place. Once
implemented, you should continue to gather feedback about the training process and make adjustments
as necessary.

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Step 5: Check if Employees can Apply What they Learn

Apart from gathering general feedback from trainees, it’s vital to ensure that your training is actually
proving useful and that your employees can apply their new knowledge in the course of their work. This
is probably the most important measure of training effectiveness.
One way to evaluate this is to have employees create and follow an action plan with goals and
measurements indicating how well they apply the skills in which they have been trained. If more than
one or two trainees seem to be struggling, this may indicate a need for some tweaks to the training
program.

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