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CHAPTER 1 INTRODUCTION

1.1 General
CRF Process:
CRF is a process of reverting back to customer complaints once the product is delivered to customer from the warehouse. A fitter moves from the store for fitment to customers place. During fitment if fitter finds any problem or if the customer is not satisfied with the product, he raise a complaint to the fitter through feedback from which fitter submits at store. Also if the customers product is damaged during usage and if it is under warranty then the customer raise a complaint to corresponding store from where he has purchased the product. The store then understands the nature of complaint and verifies it with the customer. If the problem can be solved at store level then it is handled by incharge at store else the complaint is forwarded to corresponding team at head office through CRF form. The incharge at head office go through the nature of complaint and takes the decision as to how the complaint can be solved. Once the approval is done from head office the CRF form is sent to warehouse stating the nature of problem and solution to it. The RL team at warehouse takes action as mentioned in CRF form. They move the corresponding product from 10 location to 10 block and deliver the part to the customer as mentioned in CRF form and pick the damaged product from customer and repair it and then the product is moved to 10 location for sale.

10 block:
Three types of location are available in warehouse 1. 10 location (343 sap code) 2. 10 block(344 sap code) 3. 90 location

10 location: It is a virtual location in SAP which resembles goods which are in good condition and which are saleable. These goods are visible to all stores to take orders for it. 10 block: It is a virtual location in SAP which resembles goods which are in damaged condition but can be repaired and sold. 90 location: This location resembles goods which are totally damaged and which cannot be repaired.

10 block movement:
Three types of movements take place in 10 block 1. PDI rejection 2. CRF 3. SIT goods

PDI rejection:
Goods which are rejected by the PDI team are moved to 10 block so that it is not visible to stores for sale. The reasons for PDI rejections are 1. Handling damage 2. Manufacturing defect

CRF:
Goods served for CRF are moved to 10 block and corresponding part required is taken from full set to serve the customer. The damaged part returned by customer is handover to RL team to repair and add in the incomplete set and then move the complete set to 10 loc. SIT : Stock in transit(SIT) resembles those stock received from mother warehouse but are in damage condition. The warehouse receives the goods and moves it to 10 blocks so that it is not visible for stores for sale. 2

Stock control analysis:


Stock control is a process of matching the physical stock control available in warehouse to the stock shown in SAP. If the stock does not match, reason behind it is found and necessary action is taken.

1.2 Background of the store/format:


Future Supply Chain Solutions Ltd, the logistics and supply chain vertical of Future Group, is India's first end - to - end consumer Logistics Company. Future Supply Chains was established in APRIL 2007, born from the need to have a specialized end - to - end supply chain for consumer products. Over the years, the company has developed competencies in managing the various operations involved in supply chains across different product categories. Future Supply Chains is distinct because it is an end - to - end supply Chain Company delivering millions of pieces to millions of consumers on a daily basis. It takes over the entire task of managing the supply chain; enabling its clients to concentrate on their core business.

Our Vision: We shall deliver everything every time for every Indian
consumer in the most profitable manner.

Our Mission: To increase the profitability of our customers through our


SCM solutions (SC Design, Movement, Storage and Inventory Management) with the shortest time to market and the lowest cost to market.

Our Services:
Warehousing and Distribution: The Storage & Fulfillment vertical of Future Supply Chains provides storage & handling solutions through a current warehouse footprint of over 3.5 million sqft across 67 locations - the largest of any Supply Chain player in India. This vertical includes supply chain network modeling, processes, layout & systems designing, capital procurement, installation & operation for MHE & technology (Racking, Reach Trucks, Sorters, 3

Conveyors, RF Scanners, other automation etc.); and productivity & cost optimization. The key differentiators in warehousing are: Low cost operations based on the company's ability to lease large spaces and offer mechanization Enhanced service efficiency based on WMS enabled multi level storage and seamless integration with customer ERP Service efficiency arising out of the company's ability to handle Each picking i.e. picking of individual pieces as against case-wise Ability to handle widely differentiated product groups; and their seasonality, cyclicality, and demand patterns Ability to minimize obsolescence 24x7 Operations Managing sales and business commercials of customers. Testing, Packaging, refurbishing, bar coding and other value added multiple SKUs picking

services Future Supply Chains core competency is creating an efficient

replenishment system - the most critical function for any supply chain backend. This finely honed capability of the company, is being offered to its customers, so that they can gain from its experience and expertise Future Supply Chains capability enables it to handle an average of 1.5 million pieces everyday with peak single-day transactions reaching 4 million pieces. Express Logistics Services: The Movement vertical takes care of Factory-Gate logistics involving pickup of goods from suppliers across the country, National Distribution of goods, and City Logistics that include store deliveries and home deliveries. Future Supply Chains is the first organized intra-city transportation services 4

company - carrying out not only B2B deliveries but also B2C deliveries in the form of thousands of home deliveries every day across the country, especially for Furniture and Consumer Durables. Future Supply Chains offers the following uniquely differentiated products: Metro Connectivity with door to door service- Metro First Within the City Movement - City Express Intercity trucking Future Supply Chains service offerings would be based on its own infrastructure and that of its business partners in the areas of FTL, PTL, Express, and Rail & Air Cargo. Low cost and seamless operations would be conducted based on: Hi Cube - Lowest weight vehicle combination Lean Infrastructure GPS enabled trucking integrated with TMS Flexible Product offerings based on line-hauls running on fastest

transit times -

Future Supply Chains customers have the option of selecting services with differing transit schedules with differential costing

Expertise in In-city deliveries and customer interface management International Logistics: Our International Logistics vertical offers services like Freight Forwarding, Custom Clearance & Brokerage, Warehousing, Transportation/Trucking and LCL Consolidation. We move cargo across boundaries by sea, by air, and by road with a strong and seamless network of global logistics services. Our own offices in China, Malaysia and Turkey and network offices in other countries, we have the expertise to manage the movement of cargo from anywhere in the woRLd to across the globe 5

efficiently and cost-effectively. We engage in International Freight Forwarding by sea, air or combined means, Ocean Consolidation, Distribution, Warehousing, etc. and other value added services.

RDC Hoskote (furniture warehouse):


RDC Hoskote provides warehousing service to the company Home Solution Retail India Limited (HSRIL). HSRIL supply goods to two companies 1. 2. Pantaloon retail India limited Future value retail India limited

All the home town stores come under PRIL and the big bazaar stores come under FVRIL. Soon FVRIL is being merged into PRIL. RDC Hoskote is a 436000sqft warehouse in which 33600sqft is dedicated to PRIL and 10000sqft to FVRIL. It mainly supplies three types of goods 1. 2. 3. 4. Furniture Sofa Home interior and home dcor Modular kitchens RDC Hoskote supplies goods to the following city distribution center which again supplies to the stores at the respective cities.

Apart from these stores it also supplies to stores at Belgum, Hubli, Dharwad, Hassan and Mysore directly. Apart from delivering to stores it also does home delivery directly to customers (explained in detail in further chapters).

It has the following departments:


1. Inward department 2. Quality check 3. Inventory 4. PDI 5. Outward 6. Reverse logistics The detailed explanation about these departments is given in chapter 2. They are 100 employees working in warehouse. The employee distribution is as follows:

CHAPTER 2
2.1 Profiling of the Warehouse Manager:
The key result areas of warehouse managers are studied and the knowledge, skills and abilities required on the part of warehouse manager are understood. The main functions of manager are 1. To monitor all the activities of various departments at warehouse to ensure smooth functioning. 2. To ensure a proper customer service and thus enhance customer satisfaction 3. To maintain a good relationship with all stores and solve their problems by ensuring delivery of goods in right time at right place. 4. To handle all the issues and complaints in a smooth and efficient manner. 5. To motivate the employees and drive them to work.

Competencies Required:
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To deliver their best DMs need to have the following knowledge, skills and abilities: 1. Category Knowledge Manager need to have complete knowledge about the operations of the warehouse. They should be aware of all the SOPs related to the warehouse operations. 2. Engagement Skills Manager need to lead and motivate their teams by transparency and unbiased managerial style. They must take the team along and integrate thinking of all members. 3. Change Management Manager need to cope with rapid pace of change and high level of uncertainty. They must withstand pressure and chaos while remaining focused on overall objective. 4. Drive and Resilience Manager must be self motivated, prompt, proactive and committed to his work. They must maintain high energy levels and spread positive vibes among the team.

2.2 Store Analysis:


RDC Hoskote (furniture warehouse) has the following departments: 1. Inward department 2. Quality check 3. Inventory 4. PDI 5. Outward 9

6. Reverse logistics Inward department: The main function of inward department is to receive the goods coming to warehouse and doing the put away. Good are received from two places: 1. Vendor 2. Stock transfer from mother warehouse Goods received from vendor: The following procedure is followed for inwarding goods from vendor 1. The inward incharge check the purchase order (PO) and ASN (advance shipment note) issued by the category team to vendor. 2. After checking the forms the goods are unloaded from vehicle. 3. Both the inward incharge and a security person checks the number of boxes unloaded from vehicle 4. Once the unloading is done the goods are moved to quality check department. 5. Once the goods are approved by the QC department then the GRN (goods received note) is done in SAP and stock in moved to 10location. 6. Then the inward team does the put away of goods into racks.

Stock transfer from mother warehouse: The following procedure is followed for inwarding goods from mother warehouse: 10

1. Goods are unloaded and verified against stock transfer not (STN). 2. Then directly GRN is done and put away is done to racks. Issues: 1. No proper handling of goods while unloading 2. No proper handling of goods during put away 3. No proper usage of material handling equipment 4. Goods received from mother warehouse if damaged and put in transit (SIT) and moved to 10 block. They take long time to close this SIT and goods remain in damage condition at warehouse. 5. Stacking of goods is not done according to instructions on boxes. Suggestions: Proper training is to be provided for handling of goods and Material handling equipments Goods in transit to be cleared as soon as possible Instructions on boxes are to be followed while stacking in racks

Quality check:
The main faction of this team is to check the quality of goods received from the vendor and handover the warehouse team to inward the good. The following procedure is followed: 1. The inward incharge handovers the goods to qc team after unloading 2. The QC team do a random checking of every 3 out of 10 articles by doing the fitment 3. If the three articles are good then the rest all are approved. 11

4. It is then hand overed to warehouse team to do GRN. 5. If any damage is found in any sample then the whole stock of that particular vendor is rejected 6. Then the vendor is given an intimation to come and rectify. 7. If the vendor does not turn up in 21 days then the goods are sent back to the vendor. Issues: 1. No 100% check is done. 2. Many damages are made by the fitter during fitment.

Suggestions: 1. Training is to be provided to the fitter to do the fitment propeRLy. 2. Quality check should be made struck to avoid loss.

Inventory:
The main function of inventory team is to tally the physical stock available in warehouse to that of SAP stock. Issues: 1. No cycle count or global count is performed. Suggestions: 1. Stock count is to be done a weekly basis. 2. FKS stock count is to be done on a regular basis.

PDI (Pre Delivery Inspection):

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The main function of PDI team is to check the goods which are to be delivered to customer and make sure that there is no damage or missing parts in order to serve the customer better. The following procedure is followed: 1. The picking team picks the goods to be delivered next day and handover it to PDI team. 2. The PDI team checks each and every article by opening the box for any damage or missing parts. 3. If the goods are in good condition then PDI team handovers it to outward team. 4. If there is any damage in good then PDI team rejects that article and handovers it to reverse logistic team for repair. Issues: 1. PDI is not done propeRLy 2. No proper use of blades for opening the boxes which would again cause damage to goods 3. Repacking of goods is not done propeRLy. Suggestions: 1. Proper training is to be provided in opening of boxes and repacking 2. PDI of goods are to be done propeRLy to avoid complaints from customers.

Outward:
They are two main function of outward department: 1. Home delivery 2. Store delivery 13

Home delivery: The following procedure is followed: 1. The picking team picks all the goods and handovers it to the PDI team one day before the delivery of goods 2. After being approved by the PDI team the goods are then stacked on pallets at the outward dock 3. Then the outward incharge makes the route planning and calls the customer for confirmation of their availability 4. Once the customer confirms, the pick list is put route wise. 5. Next day the loading incharge take the list and loads the vehicle according to route wise. 6. All the required documents are premade by the warehouse team. 7. If any goods are not delivered then those are returned back to warehouse by night. Issues: 1. No proper picking of goods 2. PDI is not done propeRLy 3. Loading of goods in not done according to instructions on boxes 4. Goods are moved many times before delivery which may cause damage 5. Sometimes delay in documentation leads to delay in delivery to customer. Suggestions: 1. Proper training is to be provided for proper handling of goods 2. Loading of goods is done with atmost care 14

3. Goods should be kept at loading dock in pallets according to routes to avoid many movements of goods. 4. Instructions on boxes are to be followed 5. Glass items should be kept separately both at loading dock and in vehicle 6. Make sure that all the equipments required for documentation are functioning propeRLy and it should be done as soon as possible

Store delivery:
The following procedure is followed: 1. Goods are picked and kept on pallets at loading dock one day before delivery 2. Next day the loading incharge makes the route plan and load the goods in vehicles accordingly 3. All the required documentation is prepared by warehouse team Issues: 1. Complaints are received from store regarding missing of panels and hardware Suggestion: 1. PDI is to be done for goods delivered to store also to avoid complaints.

Reverse logistics:
The main function of RL team is to repair the damaged goods and moves them to 10 location. Goods are moved to RL for two reasons 1. PDI rejection 2. Goods served for CRF 15

The following procedure is followed: 1. Goods rejected by PDI team are handovered to RL team for repair and the corresponding article is moved to 10block in SAP 2. And also the goods returned from customer against CRF are handover to RL team 3. The RL team repairs the goods and hand it over to warehouse team and corresponding articles are moved back to 10 location. Issues: 1. Many goods are left without repairing for longer time 2. No proper movement of goods to 10 block is done in SAP 3. No proper RL team in warehouse 4. No proper track of goods present in 10 block Suggestions: 1. A proper RL team is to be formed 2. Proper movement of goods in SAP is to be done 3. A proper tracker of goods in RL is to be made 4. Daily targets are to be set for RL team

CHAPTER 3
3.1 Objective of Study:
1. To understand the CRF process, find the root cause of CRF and methods to make the process effective.

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2. To understand the movement of goods from 10 location to 10 block and finding the reasons behind it. 3. To understand the current process stock control at w/h and suggest any further ways to make the process effective.

3.2 Scope of Study:


This study would help the w/h management to find flaws in the current process followed by them and suggest ways to improve the process to make it effective.

3.3 Methodology:
Sources of the data: There are mainly two important sources through which the whole data is collected. Primary Data: The primary data is collected by interacting with people working in the w/h and understanding the process followed by them. Secondary Data: The secondary data will be collected from the past records maintained at w/h and analysis it.

3.4 Observations:
3.4.1 CRF process: 17

CRF is a process of reverting back to customer complaints once the product is delivered to customer from the warehouse. A fitter moves from the store for fitment to customer place. During fitment time, if fitter finds any problem or if the customer is not satisfied with the product, he raise a complaint to the fitter through feedback form which fitter submits at store. Also if the customers product is damaged during usage and if it is under warranty then the customer raise a complaint to corresponding store from where he has purchased the product. The store then understands the nature of complaint and verifies it with the customer. If the problem can be solved at store level then it is handled by the store incharge else the complaint is forward to corresponding team at head office through CRF form. The incharge at headoffice go through the nature of complaint and takes the decision as to how the complaint is to be solved. Once the approval is done from head office the CRF form is sent to warehouse stating the nature of problem and solution to it. The RL team at warehouse takes action as mentioned in CRF form. They move the corresponding product from 10 location to 10 block and deliver it to customer the part as mentioned in CRF form and pick the damaged product from customer to repair it and move back that product to 10 location for sale. CRF process according to sop: 1. Store to fill up the Cannibalization Request Form and send it to warehouse and category for approval. 2. After category approval, fitter goes to customers place and dismantle and repack the part (original package if possible) and bring it back to the store. 3. HD Section In-charge locates the same article in the warehouse and takes out the part required for replacement. The remaining article to be moved to the respective location (Cannibalized location). 4. Fresh part to be delivered to store along with the next delivery against returnable gate pass. 5. Store to arrange fitter accordingly

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Time approved to carry each process: Step s 1 Complaint forwarded by Call Within 12 hrs after Store DMS center or through direct Complaint received through a Call 2 Complaint received / attended Within 24 hrs/ 1 Store DMS by Store RL Fitter / Expert day Complaint reported 3 Store DMS to Fill the CRF Within 4 to 12 hrs Store DMS Complaint reported after Call to the Store DMS Activity process Timeline responsibility

based on Job card / Complaint after received & send it for Approval in the form of CRF 4

Approval/ Rejection of CRF with Within 24 hrs after Service cell - HO reasons / justification receiving receipt which completely accurately filled of the CRF is and

Warehouse

- RL send

Team a

at Within 48 hrs after Warehouse RL of CRF

warehouse to

Fitter approval

equipped with required tools receipt ( power screwdriver etc) along with a dedicated CRF Vehicle 6 RSO Request & Approval - Any Within 24 hrs after Store change in the Product / Only CRF Approval 19 DMS /

Service Cell HO

Pickup of Product 7 RL Technician (Fitter) would do During the fitment (if required) only if Execution any part / panel is to be replaced & the product is in Assembled state. Whenever the product is in dismantled state (CKD), RL Fitter would replace the required part / product & intimate the Store team for the fitment to be done accordingly 8 RL Technician should (Fitter) be would During packed CRF Warehouse RL CRF Warehouse RL

ensure that any part / panel / Execution product properly before it is lifted from the customer's place 9 Execution Process of CRF - Within 48 hrs after Warehouse RL receipt

Closure of Customer Complaint CRF subject to availability of the Approval required material 10

Once the material (part / panel Within 24 hrs after Warehouse RL / product ) is cannibalized / CRF removed from the warehouse, Approval that product should be parked in 10 block ; Approval for which would be along with the CRF Approval itself receipt

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Once the material (replacement Within 7 days after Warehouse RL / cannibalized) is returned to the should be converted material in is the warehouse, Repairable Stocks received into warehouse saleable stocks through RL & 20

then

transferred

to

10

Loc

whereas Non- Repairable would go to 90 loc 12 Resolution of pending CRF - Within 24 hrs after Store Dym / S & M ( Not in Stock Cases ), Dym CRF should take a decision Deadline consulting with the Sourcing team & commit timelines to the customer accordingly or issue a Credit Note 13 CRF Execution Tracker is to be Daily shared Zone 14 Any PDI rejected material Within 24 hrs after Warehouse - 12 Noon material Within 24 hrs Service cell - HO with all the served by that RDC in that Basis - Warehouse Incharge Incharge / RL Execution

Stores Morning / Evening

should be intimated / informed rejection reported Incharge for parking in 10 Block 15 Any PDI rejected

once intimated / requested for after Request parking in 10 Block should be received - 5 PM approved by HSRIL - Service cell HO Cat Table 1 : Time line of CRF process

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Actual process followed: Store: Fitter gets complaint from customer through feedback form

Fitter submits that form to CRF incharge at store

CRF incharge goes through the nature of complaint

He then consults a senior fitter to know if the problem can be solved at store level

CRF is raised and send to HO for approval

No

At sto re

Ye s

Problem is solved by store people by taking necessary action

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Fig 1 : CRF process at Store At WAREHOUSE: Pre delivery process: CRF approval is received from HO Corresponding article is picked from 10 locations Check whether stock is in good condition or not Ye s Availability of stock is checked manually checked SAP

Stock is handovered to RL department for repair

N o

Ye s

N oo oo oo

Store is informe d Store informs to HO/category Order is placed to vendor

Product is moved from 10 to 10B in SAP

PDI of corresponding part of the product is served Product is then repacked and moved to dispatch

Tax invoice, delivery note and gate pass is prepared

Pc to pc

Replacem ent is pc to pc or only part 23

Part

Delivery note and gate pass is prepared for required part

Out ward

Out ward

Fig 2 : CRF pre delivery Process Post delivery: After delivery of good

No product is returned

Nature of complaint is missing or damage

The damage product is brought to warehouse in same vehicle Damaged part is moved to RL for repair

RL repair it and handover it to inventory incharge along with the whole set moved from 10 loc earlier Cross verification is done and product is moved from 10b to 10 location

Fig 3 : CRF post delivery process

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CRF Analysis: Reasons and nature of complaints received from customers: Reason: Customer usage i) Nature : (i) Broken

(ii) Damage (iii) Making noise (iv) Fitting problem

(v) Missing part (vi) (vii) (viii) (ix) Scratches Glass damage Fungus infected Lezer bonding

Reason: Manufacturing defect Reason: Transit damage (1)Nature : (i) Scratches

(ii) Crack 25

(iii) Damage (iv) Broken

(v) Mirror broken (vi) (vii) Improper placing in vehicle Sofa torn

(viii) Chip off (ix) Missing(transit claim)

Reason: Quality issue (1)Nature : (i) Cracked (ii) Broken (iii)Stains (iv) Cushion compressed

(v) Size mismatch (vi) Reason: PDI failure Reason: handling damage Reason: storage (stacking issue) Reason: wrong delivery (1)Nature : 26 Color mismatch

i. ii. iii.

Wrong delivered Box mismatch Box of same articles send double(both 1/1)

Root cause of CRF:


1) PDI failure: Issues: No proper PDI is done Improper usage of blades for opening the packaging Repackaging is not done well Example: Proof of product approved by PDI:

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Fig 4: Above figure is a form filled by PDI team approving the product is in good condition before delivering it to customer.

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Fig 5 : Above is an image of sofa which was approved by PDI team but later was found damaged at customers place while delivery.

Suggestions: 100% PDI is to be done so that CRF complaints can be reduced to some extent. Corresponding employees should be properly trained on usage of blades for opening packaging. Repackaging of goods is to be done in same manner as done by the vendor.

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Transit damage: Issue: Goods are not loaded properly in vehicle. Example:

Fig 6: vehicle laoded for home delivery 30

Goods are not handled properly while loading in vehicle. Glass items are loaded along with the hard furniture. Transporter is not debited for transit damage. Instructions mentioned on box are not followed properly. Examples: All boxes have arrow marks showing how the box has to be placed whether vertical or horizontal. Instead all boxes are loaded placing vertically.

Fig 7: Showng instruction on boxes. No proper checking is done by home delivery boy while delivering at customers place. Suggestions: Once the damaged part is brought to warehouse it should be checked whether it is really transit damage or usage, photos of damage part are to be sent to HO to rectify the nature of complaint, if it is transit damage then transporter should be debited for it. 31

Delivery boy should get the pod signed by customer after doing open delivery of goods. Training is to be provided as to load the goods properly. Instructions mentioned on boxes are to be followed properly. A proper padding is to be done on trucks. Goods should be open delivered by home delivery boy so that if any damage is found then corresponding product can be brought back to warehouse immediately instead of raising CRF, this would reduce cost. Quality check: Issue: QC is not done properly. Example: Two panels of left side were found instead of right panel in same box during PDI (QC team has not found it). Repackaging after QC is not done properly. Fitment during QC is not done with care. Example: Damage was found during PDI in product which was approved by QC team. (Damage was caused during fitment done by QC team). Suggestions: QC to be done with utmost attention. Repackaging is to be done in exact way as done by the vendor. Proper training is to be provided to fitter who does fitment during QC. 32

A QC team can also be formed at vendor so that products are properly checked at vendors place itself. Action is to be taken against vendor. Business team should take up a call on quality of product supplied by vendor. Handling of material at warehouse: Issues: No proper handling of goods according to instructions mentioned on boxes. Improper usage of material handling equipments. Glass items not handled separately. Lack of knowledge among workers as to how to handle different products. Picking and put away is not done properly. Suggestions: Workers handling the goods should be trained properly. Explain them various ways of handling different products. Proper training is to be provided as to how to use MH equipments. Clear instructions are to be mentioned on glass items so that people can recognize it and handle it carefully.

Stacking of goods in warehouse: Issues: Instructions on boxes are not followed during stacking. 33

Example:

Fig 8 : Instruction on boxes No proper stacking at dispatch area. Example:

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Fig 9 : In above picture glass item is stacked at bottom in dispatch area. Stacking level defined on box in not followed. Example: Each box has an instruction has to how many more boxes can be placed on it. These instructions are not followed. Suggestions: Proper training is to be provided to workers. Instructions on boxes are to be followed. Glass items are to be stacked separately.

Fitment problem:
Issues: Fitters at stores are not well experienced. Fitters do not have complete knowledge of products. Miss communication between fitter and customer leads to wrong CRF. Huge gap between delivery date and fitment date. 35

Example: In many cases, fitment is done after a week or month after the delivery of goods to customer. This may cause damage of goods at customers place. Suggestions: Fitters are to be well trained and given complete knowledge of all products. Fitter should have complete knowledge as to how many planks or hardware does a product has so that he can check it before he starts fitment at customers place. Proper action should be taken against fitter if damage occurs by the fitter. A feedback should be taken from customer about his complaint rather than blindly believing fitter. Fitment should be done the very next of delivery to avoid damage by customer.

Manufacturing defect:
Issues: Many planks miss in the box from vendor side. Packaging of goods is very poor. Proper instructions are not printed on many boxes. Hardware get missed from many products. Suggestions: A QC team is to be formed at vendors place. Proper action is to be taken against vendor to improve quality of product. 36

Proper action is to be taken to improve packaging. Proper handling and stacking instructions are to be mentioned on boxes.

Customer usage:
Issues: CRF is served for goods even after warranty period. Example: Bed compressed.

Suggestions: Nominal charges are to be taken to serve good after warranty period. Customers should be given proper guidelines on how to use the product.

Problems faced by store people in serving CRF:


1) No standard procedure is followed at all stores to serve CRF 2) Fitters appointed at store are not well experienced. 3) More man power is required at store 4) No camera is available to take pictures of damaged parts at customers place 5) Sometimes there is miscommunication from customer side, this leads to wrong CRF service 6) No proper coordination from warehouse 7) Basic accessories are not available at store

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8) Delay in approval of CRF from HO , which leads to customer dissatisfaction Suggestions: 1) A standard procedure should be followed at all stores. 2) Fitters should be provided training, so that they have complete knowledge of all products. 3) Camera should be provided so that the store person can understand the nature of complaint properly 4) An audit team should be appointed which goes to customers place to verify the complaint given by customer so that they would have clear understanding of nature of damage 5) Basic accessories should be made available at store so that small complaints can be served directly from store instead of forwarding it to warehouse 6) A proper coordination should be provided from HO and warehouse so that customer could be served at earliest.

Problems faced at warehouse:

Pre delivery problems: 1) CRF form is just in the form of excel sheet which can be edited by anyone. 2) Nature of complaint is not mentioned properly in CRF form. 3) No clear discretion as to CRF should be served from PRIL or FVRL 38

4) Two stores raise CRF on same number causing confusion 5) No proper team available at warehouse to look after CRF process 6) No proper tracking is maintained at warehouse. 7) Only one person takes up all works including picking of product, doing phi, preparing documents and delivery. 8) Customer is not informed before serving CRF 9) The CRF vehicle leaves the warehouse by 3 in afternoon which leads to pending of most of the delivery cases. 10) Only one vehicle is available to serve CRF so it cannot cater

to all routes, which leads to delay in serving the customer. 11) Due to improper description of problem one CRF is served

many times which leads to loss of money. 12) Sometimes stock of particular product is not available at

warehouse which leads to delay in serving the customer. 13) No proper communication between warehouse and store.

Security problems: 1) Security inward and outward register of CRF is not maintained properly. 2) Lot of errors due to manual entry Transportation problems: 1) The vehicle comes to warehouse only by afternoon which causes delay to serve CRF 2) Only one vehicle is available so it cannot cater to all routes

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Post delivery problems: 1) No proper 10 block movement is done for CRF being served, which causes product visible to store for sale 2) Damaged part returned from customer is kept in vehicle in drivers place in night and is brought to warehouse the next day 3) Many non delivery cases brings huge cost in serving it again. 4) Some CRF which are served through store, the damage part is not returned to warehouse early. Suggestions: 1) A standardized CRF form is to be developed which cannot be edited by anyone. 2) A separate team is to be formed at warehouse to handle CRF process. 3) Store should make sure that the description and nature of complaint is correct to avoid repeated delivery of same CRF. 4) At least two dedicated vehicles are to be provided to serve CRF so that more routes could be covered. 5) CRF to be served for next day is to be picked and PDI is done on previous day so that the vehicle can start from warehouse earlier to avoid non delivery cases and the damaged part is returned to warehouse on same day. 6) Customer should be informed before planning the delivery. 7) Store should make sure that stock is available at warehouse before raising a CRF. 8) Security people are to be trained to maintain the register in a proper way. 40

9) A proper tracker of inward and outward of CRF to be maintained by warehouse team. 10) 10 block movement for all CRF to be done on the day of

serving the CRF to avoid confusion. 11) Proper coordination is to be maintained between warehouse

and store

3.4.2 10 block movement:


Three types of location are available in warehouse 1. 10 location (343 SAP code) 2. 10 block (344 SAP code) 3. 90 location 10 locations: It is a virtual location in SAP which resembles goods which are in good condition and which are saleable. These goods are visible to all stores to take orders for it. 10 block: It is a virtual location in SAP which resembles goods which are in damage condition but which can be repaired and sold. 90 location: This location resembles goods which are totally damaged and which cannot be repaired. 10 block movement: Three types of movements take place in 10 block 1. PDI rejection 2. CRF 3. SIT goods PDI rejection: 41

Goods which are rejected by the PDI team are moved to 10 block so that it is not visible to stores for sale. The reasons for PDI rejections are 1. Handling damage 2. Manufacturing defect Handling damage: Handling damage occurs due to improper handling of goods by people at warehouse while put away and picking of goods. The nature of damage could be like a. Chip off b. Broken(glass) c. Crack d. Bended e. Wet condition Manufacturing defect: This problem is occurred from the vendor side. The nature of damage could be like a. Hardware missing b. Part missing c. Rust d. Color mismatch e. Finishing is not good Issues: No particular team to handle 10 block movement.

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Movements are not done in SAP properly. RL team takes longer time to repair and return the goods to 10 loc. Suggestions: Workers are to be trained properly for handling of goods in warehouse. Steps are to be taken to make sure goods are received in good condition from vendor. CRF: Goods served for CRFare moved to 10 block and corresponding required part is taken from full set to serve the customer. The damaged part returned by customer is handovered to RL team to repair and add in the incomplete set and then move the complete set to 10 loc. Issues: No proper team to handle this work. 10 block movement is not done on same day of CRF delivery. Articles are not moved against correct CRF number. Goods movement is done earlier then the CRF delivery date No clear description as to articles are moved against which CRF number Most of the movements are done late (after serving CRF); on the day when the goods are returned back by the RL team after repair. RL team take very longer time to repair and return the goods In many cases, goods are moved to 10 block but are not returned to 10 loc still. Same article was moved twice to 10 block against same CRF number 43

SAP stock of 10 block is not equal to the physical stock available and vice versa. o Reasons: a) Most of the stock is incomplete from many years. b) Damaged Home interior stock is kept in 10 block from many years c) Stocks which are physically not available is warehouse are also moved to 10 block d) Stock which cannot be repaired and are in scrap are also moved to 10 block

Suggestions: A separate incharge is to be appointed to carry out this task Articles served against CRF are to be moved to 10block on the same day of CRF delivery Targets are to be set for RL team on daily basis A fixed lead time is to be given to RL team to repair and return the goods to 10 loc Proper tracking of movement is to be maintained A weekly check of SAP stock and physical stock of 10 block is to be carried out A separate RL team is to be formed with a supervisor along with two helpers who will be working on incomplete sets. They would prepare the material required or get it from vendor and make the sets complete and move back to 10 loc. 44

Sets which cannot be completed can be used to make some other articles from it and make available for sale so that loss can be minimized. SIT: Stock in transit (SIT) resembles those stock received from mother warehouse but are in damage condition. The warehouse receives the goods and moves it to 10 block so that it is not visible for stores for sale. Issues: Most of the SIT stock is in 10 block for longer period. Suggestion: An immediate action is to be taken against SIT stock and make it saleable.

3.4.3 Stock Control Analysis:


Stock control is an activity to match the physical stock available in warehouse to the SAP stock. It gives a complete picture on stock available in warehouse. Issues: No cycle count is done No global count is done Suggestions: A proper cycle count is to be done FKS stock count is to be done on regular basis.

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CHAPTER 4 Analysis of data


4.1 CRF: For analysis of the CRF process, two months data was considered (June & July). But the June data was incomplete so only July data was used. The analysis was done on the basis of following factors: a) The inward and outward movement of articles against CRF b) Nature of complaints c)Time between sales order and home delivery d) Time between delivery and fitment e) Time between sales order and CRF raised f) Time between CRF raised and Approval g) Time between CRF delivery and return date Inward and outward movement: Data was analyzed on the basis of the outward movement of articles and inward movement of the damaged articles from customer. The below table gives the information about number of non delivery, missing, returned and not returned cases. This would help to monitor the inward movement of damaged goods returned by customers. Table gives the status of each inward movement of each CRF being served by w/h. not delivery status missing replaced and Table 2 returned replaced and not returned 37 21 69 2

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Fig 10 : Gives the percentage of each case. Nature of complaints: The below table gives the different types of complaints for which CRF is raised and the number of complaints received in July month. mfg defect Transit damage pdi failure handling damage usage Table 3 60 33 14 5 2

Fig 11 : The percentage of different complaints received in July Time between sales order and home delivery: Below table gives the time difference between the day customer order the product and the day in which it is delivered to customer. 47

(Data considered for month of July). Table 4 Time between sales order and home delivery No of Description times Done in one day 87 Done within a week 14 More than a week 5 Exception cases(20 & 93) 2 Details not clear 23 total 131

Fig 12 :Time difference between sales order and home delivery Time between delivery and fitment: The below table shows the time difference between the day the product was delivered to customer and the day fitment was done by the fitter.

Time between delivery and fitment


Description Done within 48 hours Within a week 48 More than a week (11,17,18,20 days) Exceptional(28,58,64,20 0days) Total No of times 100 24 9 4 137

Table 5 & Fig 13

Time between sales order and CRF raised: The below table shows the time difference between the day customer purchased the product and the day customer raised a complaint. Time between sales order and CRF raised No of Description times Fresh Delivery(within 15 days) 75 Usage (Within warranty) 30 Usage (after warranty) 2 Details not clear 28 Total 135 Table 6

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Fig 14 Time between CRF raised and Approval: Table below shows the time difference between CRF raised and CRF approved by the head office. Time between CRF raised and Approval No of Description times Approval done within 48 hours 79 Approval done in a week 38 More than a week(15 to 35) 9 Exceptional(37,48,55,9 2,112) 6 Total 132 Table 7

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Fig 15 Time between CRF delivery and return date: Table below shows the time difference between CRF delivery date and the date damaged goods are returned to w/h. Time between CRF delivery and return date No of Description times Returned within a day 103 More than one day 14 Missing 21 Total 138 Table 8 & Fig 16

4.2 10 block:
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For analysis of 10 block movement the CRF movement for month of July was considered. The analysis was done based on following factors: 1. The status of articles in 10 block 2. Movement done after serving the CRF 3. Movement done before serving CRF 4. Time taken to return goods from 10block to 10 loc The status of articles in 10 block: Table below shows the number of articles returned and not returned from 10 block to 10 location and the number of articles for which no movement was done in SAP. returned not returned no movement done Table 9 56 21 33

Fig 17

Movement done after serving CRF: 52

Table below shows the number of days taken to move articles to 10 block in SAP after serving the CRF. Movement done after serving CRF Movement done in 1-2 days Movement done in 3-7 days Movement done in 10-15 Time >15 days No movement done Table 10
35 30 25 20 15 10 5 0 m ovment done in 1-2 days m ovm ent movem ent tim > days no m e 15 ovement done in 3-7 done in 10-15 done days
Series 1

No of articles 27 18 3 7 33

Fig 18 Movement done before serving CRF: Table below shows the number of articles moved to 10 block in SAP before serving the CRF. Movement done before serving CRF Movement done in 1-2 days Movement done in 3-7 days Movement done in 10-15 Time >15 days No movement done Table 11 No of articles 6 8 1 2 33

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Fig 19

Goods handoverd to 10 from 10b: Table below shows the number of days taken to repair the goods in 10 block and returned back to 10 location. Goods handoverd to 10 from 10b Goods returned within 7 days Goods returned within 15days Goods taken more than 15 days Goods not returned Goods not moved Table 12 No of articles 46 4 2 21 33

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Fig 20

CHAPTER 5

Recommendations and Suggestions


1. All the employees working at warehouse should be trained with knowledge of SOP 2. Safety standards to be mentioned in SOP and employees to be trained accordingly. 3. Proper training is to be provided for workers to handle products, handle MHE, loading and unloading of goods from vehicles.
4. A proper team is to be formed to look after CRF and 10block

movement process. 5. A proper tracking of all the activities at warehouse is to be maintained. 6. Delivery boys to be trained with complete knowledge of products, so that he could do the open delivery of goods thereby avoiding customer complaints. 7. A proper action is to be taken against vendors for improving the quality of products and its packaging. 8. A PDI team can be formed at vendors place also to avoid damage and missing of parts. 9. A proper RL team is to be formed to look after the goods present in 10 block. 10. A proper training is to be provided to fitters at store to avoid

damages.
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11.

Stores are to be provided with basic equipments so that they complaints.

can solve minor

CHAPTER 6

CONCLUSION

CRF process has been studied and root cause of CRF was found and improvements are suggested.

Movement of goods from 10 location to 10 block was observed and reasons were studied.

Stock control process at w/h was studied.


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Bibliography/References

SOP of furniture warehouse Data taken from SAP Data collected from security registers

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