Warehouse Management & Supply Chain Management

Summer Internship Report Submitted in

Partial fulfillment of MBA
2015-2016
By
VINOD KUMAR JAINT
14pmb21
to
School of Management
Gautam Buddha University
Gautam Buddha Nagar- 201 310

Warehouse Management & Supply Chain Management

GAUTAM BUDDHA UNIVERSITY

SCHOOL OF MANAGEMENT

SUMMER INTERNSHIP MANUAL

For

MBA III semester

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Declaration by Student

I am VINOD KUMAR JAINT Roll No 14pmb21 hereby declare that this project work is the
result of my own research and no part of it has been presented for any other degree in this
university or elsewhere. I am solely responsible for any error found in this work.

Date: .
Place: ..

Student Signature: .

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To Whomsoever It May Concern

This is to certify that Vinod kumar jaint, student of MBA 3

rd

Semester at School of

Management, Gautam Buddha University, Greater Noida has done a project work
entitled Warehouse Management & Supply Chain Management at our organization
from 01/June/2015 to 31/July/2015.

Signature of Co-Supervisor

Name and Designation of the Co-Supervisor

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Certificate from the Faculty Guide

This is to certify that the project titled Warehouse Management & Supply Chain
Management has been done under my supervision by Vinod Kumar Jaint Of MBA
III semester.

Name and Signature of the Faculty guide

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ACKNOWLEDGEMENT

This summer internship project at YCH logistics India pvt lmtd. has been a great learning
experience. The work done under the title Warehouse Management & Supply Chain
Management represents not just my efforts to realize the goal of learning & training; in fact
it reflects a combination of able guidance, recommendations & suggestions of a number of
people.
It has been one of the most enriching experiences for me to work along with employees of
one of the best-managed organization, a company rightly considered as one of the
Maharatnas in the public sector of the country.
I take this opportunity to express my sincere gratitude to Mr VIJIN KRISHNA. Branch
Manager (operation) who took great pains in going through the each step of this project and
made valuable recommendations and suggestions, which has helped to prepare this project on
time. To him I am especially indebted. I also want to thanks Mr. Vipin Sagar and
Mr. Amit and to all other employees of the department who had given their valuable time &
suggestions for the completion of this project.

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EXECUTIVE SUMMARY

The challenges facing warehouse management today has been greater than before due
to globalization, shorter lead time, high customer servicelevel and changing market
trends. As a result, the role of warehouse haschanged just from storing and issuing of
goods to important strategic roles.
Today warehouse must operate with high efficiency to meet the various requirements in
a logistics system. As a result, many companies areinvesting in information technology
tools such as warehouse managementsystem (WMS), bar code, RFID and EDI in their
operations to ensure theinformation flow is smooth to collect and plan the warehouse
operations.
Increasingly, organizations are taking advantage of modern communications and
transportation technologies in order to increase their competitive edge by producing and
selling goods in the global marketplace. To facilitate these activities, organizations
utilize supply chain management to efficiently connect the parties involved in a value
chain to minimize costs, enhance customer service capabilities, augment the
organizations knowledge base, maximize efficiency, and develop barriers to
competitors. Although supply chain management is a complicated process, it is made
more so by the compounding factor of dealing with manufacturers, suppliers, and
customers in other countries with different cultures, regulations, and tax and legal
systems. International supply chain management can help in this process by managing
the creation and dissemination of goods and services through specific, coherent
connections between processes, structures, and objectives of the members of the supply
chain.

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CONTENTS
Serial

Topic covered

Page no.

no.
1

List of sumbol & abbreviations

Introduction

Organization overview

15

Achievers pride

20

Literature review

23

Objective of project

28

Research methodology

29

Data analysis & interpretation

32

Findings

44

10

Conclusion

45

11

Suggestion & recommendations

47

12

Limitations

48

13

Refrences

49

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List of symbols & abbreviations

WMS

Warehouse Management System

SCM

Supply Chain Management System

RFID

Radio-Frequency IDentification

EDI

Electronic Data Interchange

ISO

International Organization for Standardization

LIFO

Last In First Out

FIFO

First In First Out

JIT

Just In Time

ASRS

Automated Storage and Retrieval System

CAGR

Compounded Annual Growth Rate

FMCG

Fast-Moving Consumer Goods

AEC

ASEAN Economic Community

PUB

Public Utilities Board

SBS

Singapores Bus Service

ROL

Re-Order Levels

GRN

Goods Receive Number

RTO

Return to Origin

SUPC

Snapdeal Unique Product Code

ERP

Enterprise Resource Planning

EOQ

Economic Order Quantity

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INTRODUCTION

WAREHOUSE
A Warehouse is a commercial building for storage of goods. Warehouses are used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
They are usually large plain buildings in industrial areas of cities and towns. They come
equipped with loading docks to load and unload trucks; or some times are loaded
directly from railways, airports, or sea ports. They also often have cranes and for klifts
for moving goods, which are usually placed on ISO standard pallets loaded into pallet
racks.
Some warehouses are completely automated, with no workers working inside. The
palletsand product are moved with a system of automated conveyors and automated
storage and retrieval machines coordinated by programmable logic controllers and
computers running logistics automation software. These systems are often installed in
refrigerated warehouses where temperatures are kept very cold to keep the product from
spoiling, andalso where land is expensive, as automated storage systems can use
vertical spaceefficiently. These high-bay storage areas are often more than 10 meters
high, with someover 20 meters high.
The direction and tracking of materials in the warehouse is coordinated by the WMS, or
warehouse management system, a database driven computer program. The WMS is
used by logistics personnel to improve the efficiency of the warehouse by directing
putaway sand to maintain accurate in inventory by recording warehouse transactions.
For a warehouse to function efficiently, the facility must be properly slotted. Effectives
lotting addresses which storage medium a product will be picked from (pallet rack or
carton flow), and how they will be picked (pick-to-light, pick-to-voice or pick-topaper).With a proper slotting plan, a warehouse can improve its inventory rotation
requirements such as FIFO (First In First Out) and LIFO (Last In First Out)
controllabor costs and increase productivity.
Traditional warehousing has been declining since the last decades of the 20th
centurywith the gradual introduction of Just In Time (JIT) techniques designed to
improve thereturn on investment of a business by reducing in-process inventory. The
JIT system promotes the delivery of product directly from the factory to the retail
merchant or from parts manufacturers directly to a large scale factory such as an
automobile assembly plant, without the use of warehouses. However, with the gradual
implementation of offshore outsourcing and offshoring in about the same time period,
the distance betweenthe manufacturer and the retailer (or the parts manufacturer and the
industrial plant) grewconsiderably in many domains, necessitating at least one
warehouse per country or per region in any typical supply chain for a given range of
products.

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Recent developments in marketing have also led to the development of warehousestyleretail stores with extremely high ceilings where decorative shelving is replaced by
tall heavy duty industrial racks, with the items ready for sale being placed in the bottom
parts of the racks and the crated or palletized and wrapped inventory items being
usually placed in the top parts.
In this way the same building is used both as a retail store and a warehouse. Modern
warehouses are also used at large by exporters/manufacturers as a point of developing
retail outlets in a particular region or country. This concept reduces the end cost of the
product to the consumer and thus enhance the production sale ratio.Warehousing is an
age old concept which can be used as sharp tool by original manufacturers to reach out
directly to consumers leaving aside or by passing importers or any other middle
agencies or person.

Internet impact on warehouse:

The internet has had an influence on warehouses too. Internet based stores do not
require physical points of selling. However, warehouses are still required to store the
goods. Since direct contact with customers means many small orders, this is a different
situation where stores would be ordering large numbers of goods. Simply said,
warehouses change from shipping large quantities of goods to shipping large numbers
of small quantities of goods.Having a large and complex supply chain containing many
warehouses may be costly.Sometimes, it is beneficial to have one large warehouse per
continent. This warehouses hould be located at a central point, where transport is
available to all other destinations. At these continental hubs, goods have to be
customized for different countries. For example, goods get a price ticket in the language
of the country where it will go. Making small adjustments to goods at a warehouse is
called value added services.
Types of warehouse storage system
Some of the most common types of warehouse storage systems are:

Pallet rack: Including selective, drive-in, drive-thru, double-deep, pushback, &

gravityflow.

Industrial Shelving: Including metal, steel, wire, and catwalk.

Automated Storage and Retrieval System (ASRS): Including vertical carousels,

vertical lift modules, horizontal carousels, robotics,mini loads, and compact 3D.

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SUPPLY CHAIN MANAGEMENT

Since, the beginning of the 1990s, there has been a paradigm change in the busi ness
scenari o, m ai nl y du e t o t he l i beral i z at i on pol i c y of v ari ou s economies all
over the world, and revolutionary innovation in the field of science and technology.
Particularly, information technology and communication infrastructure hasresulted into
a continuous acceleration in the magnitude competition. To sustain themselves in such
an erratic environment, firms need to have door competency and productivity. That is
why firms are perceived to have more systemized activities related to movement and
storage of goods so as tomake them available at a short noticed with the lower
inventory level.
For instance, Godrej locks a division of Godrej & Boyce Company has toreduce i t
s orde r t o del i ver y c ycl e fr om t here weeks t o onl y t hr ee
da ys . Computers giant Hewett Packard has cut the duration of its cycle to deliver to
customers in India from the us by one
third, from 37
days, to 10 days. A l l
this happened because of higher and systematic. Supply Chain
Management the new and more Indian companies are jumping onto supply chain
management band wagons for the completive edge. S uppl y C hai n M ana gem en t
i s busi ness s yst em of ent e rpri se
st r at e gi es, b u s i n e s s p r o c e s s e s a n d
i n f o r m a t i o n t e c h n o l o g i e s f o r i m p r o v i n g t h e planning, execution and
collaboration of material flows, information flows, financial flows and workforce flows
in the supply chain. SCM is supported by modular software applications that integrate.
Activities across organizations, from demand forecasting, product planning, parts
purchasing, inventory control, manufacturing, product assembly to product distribution.

Supply Chain Management is the process of planning implementing, andcontrolling

the operations of the supplychain as efficiently as possible. Supply Chain Management
spans all movement and storage of raw materials, work-in-process inventory, and
finished goods from point-of-origin to point-of-consumption.
The definition one American professional association put forward is that Supply Chain
Management encompasses the planning and management of all activities involved in
sourcing, procurement, conversion, and logistics management activities. Importantly, it
also includes co-ordination and collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers and customers.
In essence, Supply Chain Management integrates supply and demand management
within and across companies.

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Reverse supply chain

Reverse Logistics is the process of planning, implementing and controlling the
efficient, effective inbound flow and storage of secondary goods and related
information opposite to the traditional supply chain direction for the purpose of
recovering value or proper disposal. Reverse Logistics is also referred to asAfter
market Customer Services. In other words, anytime money is taken from acompanys
Warranty Reserve or Service Logistics budget, that is a Reverse Logistics Operation.
Component of supply chain management system
Our Global Supply Chain Management practice focuses on four key solution areas:Adaptive Execution
We transition your supply chain into a high-speed, low-cost, rapid-response engine to
increase visibility and response from procurement to fulfillment and replenishment.
Supply Management
Our technologies and collaborative business processes improve sourcing, procurement,
contracting, purchasing, invoicing and analysis.
Customer-Supply Synchronization.
Integrate SCM with marketing, sales and customer management and youll see high
availability and low costs that can increase sales and eliminate rush shipments and
back-orders.
Securing Supply Chains
Comply with security requirements and speed container inspections with solutions that
offer tracking, analysis, alert capabilities, and process and policy documentation.
A SYSTEM OF SUPPLY CHAIN MANAGEMENT
Supply Chain Management is a social or soft system which has goals, components,
processes and boundary.
Goals of SCM.
To reduce inventory cost. To increase sales To improve the coordination and the
collaboration with suppliers, manufactures and distributor.
Components of SCM System- The components of a supply Chain System consist of
1.Supply Chain Software and Hardware,
2.Supply Chain Business processes and Users of SCM System.

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SCM Software and Hardware

The core of an SCM System is SCM software. Supply Chain Software is module
based application. Each software module automates business activities of a functional
area in the Supply Chain.
UNIX
is the most common operating system for running SCM software.
Business Processes
Business processes of supply chain includes supply chain planning,execution and
collaboration and operationalcontrol.
Users
The users of SCM systems are workers of supply chain participants at all levels.
PROCESSES OF SUPPLY CHAIN MANAGEMENT
Demand Planning and Forecasting A critical success factor to supply chain management is accurate demand forecasting.
Supply chain software systems utilize sophisticated mathematical models for
predicating future demand from historical data.
Procurement This is the process of choosing the suppliers that will deliver the goods and services
you need to manufacture or assembly your products or create your services. It involves
price negotiation, receiving, and verifying the shipments.
Manufacturing and Assembly Raw components are assembled into final products or raw materials are manufactured
into finished goods.
Distribution This is the process of delivering your products or services consumers. Distribution
involves warehousing, delivering, invoicing and paymentcollection.
Return Return and refund are important parts and also the problem pats of supply chain
management.
Boundary of the SCM systems
- The boundary of a SCM system is he boundary of extended enterprise which includes
the company, suppliers, partner, distributors and customers.

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LOGISTICS MANAGEMENT INTRODUCTION

Logistics is the management of the flow of resources between the point of origin
and the point of consumption in order to meet some requirements, for example, of
customers or corporations. The resources managed in logistics can include
physical items, such as food, materials, equipment, liquids, and staff, as well as
abstract items, such as time, information, particles, and energy. The logistics of
physical items usually involves the integration of information flow, material
handling, production, packaging, inventory, transportation, warehousing, and
often security. The complexity of logistics can be modeled, analyzed, visualized,
and optimized by dedicated simulation software. The minimization of the use of
resources is a common motivation.

LOGISTICS INDUSTRY IN INDIA

India has become the prime destination for logistics service providers all over the
world. The demand for logistics services in India has been largely driven by the
remarkable growth of the economy. The growth is being projected at 9-10 per
cent in next few years, with the CAGR(compounded annual growth rate) expected
to grow at a rate of 7-8 per cent. This growth is expected to gain greater
momentum due to the exponential growth of the Indian economy. India is also
experiencing a big retail boom as the buying capacity of the middle and upper
middle segment of the population has scaled new heights. Many large
multinationals from the retail industry are planning to set up operation in India
and large local retailers are also planning to expand their operations. But with the
infrastructure largely under-developed and incapable of catering to a growing
economy, logistics management in India becomes too complex. The poor
condition of infrastructure directly translates to higher turnover, pushing up the
operating costs and reducing efficiency. There are other problems such as
complex regulatory compliance and limited adoption and utilization of

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technology, which has resulted in increased paperwork and inability to

communicate effectively with customers.

In spite of dismal infrastructural scenario, the hopes of the logistics sector are
kept up by the various upcoming infrastructural projects like logistics parks and
hubs and other initiatives by public and private sector. The future of the logistics
sector depends not only on the continued development of infrastructure but also
on the capability of the service providers in adapting themselves and making
optimal utilization of technology. India is emerging as one of the worlds leading
consumer market with the raise of middle income group. Estimated at US$991
billion in 2020, Total consumption expenditure is expected to grow to nearly US$
3.6 trillion in 2020. Food, housing & consumer durable and transport
&communication are expected to be the top 3 categories, accounting for 65% of
consumption in2020. The FMCG sector alone is expected to grow at a base rate
of 12 % annually to become an INR 4000 billion industry by 2020. The logistics
sector is expected to play an important role in accessing this emerging market and
enabling this growth.

Seven Rs of logistics:
a. Getting the right product,
b. to the right customer,
c. in the right quantity,
d. in the right condition,
e. at the right place,
f. at the right time,
g. with the right cost

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ORGANIZATION OVEREVIEW

COMPANY PROFILE

YCH Group

Founded in 1955

YCH Group is the leading integrated end-to-end supply chain partner to some of
the world's largest MNCs and aspiring growth companies, including Dell,
Motorola, Samsung, LG, Exxon Mobil, Unilever, LVMH and Royal Fries land
Campina.
Focused on boosting productivity and sustainability for customers, YCH's proprietary
suite of award-winning solutions are best-in-class across industry clusters from
consumer and electronics to chemical and healthcare.
A strong proponent of innovation, YCH is recognized for its 7PL
seamlessly integrating supply chain strategy with execution.

TM

approach in

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Head branches of YCH in world

Singapore
Malaysia
Thailand
Indonesia
Philippines
Vietnam
Australia
Korea
India & Greater China

Head branches in India:

Chennai
Bangalore
Mumbai
New Delhi
Gurgaon

KEY PEOPLE ASSOCIATED WITH YCH:

Robert Yap, Chairman & CEO

Bennett Neo, Chief Executive Officer

Catherine Yap, Executive Director , Corporate Services

YCH handling companies in India

Snap deal
Dell
Shopclues
Ncr etc

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HISTORY
Since 1955, YCH has evolved from its humble beginnings as a passenger
transport company, to a partner in total logistics, and today an award-winning
end-to-end supply chain management solutions partner to world-class companies
throughout Asia Pacific.
The true constant amid the progressive and changing landscape has been the
companys devotion to its corporate philosophy of RISE, to serve as a beacon in
Going and Growing with our customers and partners to where they want to be.
With RISE our focus on developing the core strategic pillars of people,
technology, and quality, will empower us to create value and innovations to shift
the paradigms in the supply chain industry.
The Journey over the past 50 years has instituted a very rich heritage in the DNA
of the organization. Unwavering in our commitment towards our corporate
philosophy of RISE, we have established a strong foundation in developing
people, technology and quality excellence in every fabric of the company. This
has catalysed our boundless passion for supply chain excellence and in many
ways, with our expanding network, scaleable business models and cutting-edge
innovations, we are seamlessly connecting ideas, connecting, businesses, and
connecting markets across the region, living true to our destiny of being right at
the heart, where supply chain connects!

YCH Brand Evolution - Our Logo Over the years, the YCH brand has come to
represent reliability and integrity. As the company evolved, so did our brand
identity.

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MILESTONE

th

YCH recognised for best HR practices at the 6 May Day Model Partnership Awards

Expanding into Iskandar Malaysia

Industry Talent Development

YCH China to launch new supply chain facility with Qingdao Iron & Steel Group

Dr. Robert Yap speaks at the ASEAN Economic Community (AEC) 2015 SME Forum

Dr. Robert Yap shares latest industry observations at The Asian Banker Summit 2014

Sharing with the Chinese public on the nature of supply chain management

A long term partnership with Shanghai AUSTRAQUAL in providing one-stop cold chain
management

Our Humble Beginnings1955 to 1980s The YCH Story started way back in the
1950s when the company was only doing passenger transportation. Known as Yap
Chwee Hock Transport and General Contractors, we ferried workers from the
Public Utilities Board (PUB) and British soldiers to and fro their workplaces.
Then in the 1970s, the company faced its first crisis when it lost its main business
contract of ferrying the PUB workers. Coupled with the set-up of Singapores Bus
Service (SBS), YCH was left with 103 empty trucks and hardly any passengers.

Your Partner in Total Logistics: Early 1980s to 1990s Refusing to give up and
leave his workers jobless, the late Mr Yap Chwee Hock roped in his oldest son
and current CEO of YCH Group, Dr. Robert Yap, to join the company and help
salvage the business. Freshly graduated from university, Robert saw new
opportunities to turn the company around by leveraging on the growing trade
activities of the Singapore Ports. This marked the start of the company's venture
into the cargo transportation business, which from then on grew rapidly to include
extended logistics services such as freight and warehousing management.
Together with the company's change in direction, was a change in our name to
Yap Chwee Hock Transport Pte Ltd, which marked the company's new suite of
services.

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50

Regional Expansion - Going Where You Want To Be: 1995 to 2005 Building
on this strong foundation, Yap Chwee Hock Transport Pte Ltd began its forays
into the region and also started exploiting IT by developing proprietary
applications to integrate the various logistics services. This pioneering effort
paved the way for the company to develop a solid logistics network with state-ofthe-art DistriParks. The 90s marked the organisations transformation into a
Supply Chain Management Company, as the company embarked on providing
award-winning solutions for its MNC clientele. Accompanied by another
rebranding effort, the company was from then known simply as YCH, with the
mantra of growing and going with our customers where they wanted to be.

Asia Pac's Leading Supply Chain Company: 2006 till date Throughout YCH's
history, the organisation has never backed down in the face of challenges, but
continued evolving to forge new break throughs in the supply chain industry.
YCH has over the years garnered international recognition and end or sement
from the industry, governments and its MNC clientele. Having grown to become
Singapore's largest home-grown Supply Chain Solutions Company today, YCH
prides it self in seamlessly connecting complex supply chain systems for its
world-class customers, enabled by award-winning solutions and comprehensive
Asia Pacific presence. As a leading player in the industry, YCH's keys to success
have always rested on being right at the heart of 'supply chain'. By combining
advanced IT capabilities, a collaborative approach with partners and six decades
of passion for supply chain excellence, YCH is committed to continuously
innovate and stay at the forefront of the industry; because YCH is - where
supplychain connects.

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ACHIEVERS PRIDE

Innovation Awards:Embracing innovation as our way of life, YCH is committed to achieving supply chain
excellence through shifting paradigms and delivering value to our stakeholders.

Y3 Tianjin RFID Innovation Centre Govt. Grant Award 2012

ASEAN Business Awards 2010 Most Admired Large Enterprise (Innovation)
IDC Enterprise Innovation Awards 2010 Top Winner
CIO 100 Awards 2010 Initiative SCM II: Project Cloud Hub
CIO 100 Awards 2009 Supply Chain Nerve Centre
National Infocomm Awards 2008 RFID/SCM Nerve Centre
ZDNet Smart50 Awards 2006
CIO 100 Awards 2006
Singapore Innovation Class 2006
National Infocomm Awards 2004 V-Hub
IT Leaders Award 2003
eSCM Award 2003
Innovation Development Award 2002
Mobile Innovation Award 2002 ePOD
Intelligent 20 Award 2001
EDB Business Headquarters Award 2001

EDB Innovation Development Awards Intrabutor (1999), Intributor (1999),

The LOVA (LOgistics Value-Added) Simulator (1997), Intribution (1996) IDA
Awards 1992 National IT Award

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Enterprise Awards:At the heart of every organization lie its people, who continuously drive the company
to greater heights.

Supply Chain Asia 'Overall Partner of the Year' 2014

May Day Model Partnership Awards 2014
e2i IGP (Inclusive Growth Program) Productivity Grant Award 2013
Singapore Business Awards 2011 Enterprise of the Year
Supply Chain Asia Awards Asian 3PL of the Year 2010, 2009, 2008, 2007

Frost & Sullivan ASEAN 4 Logistics Awards Best Domestic LSP & Best
IT/Electronics LSP 2008, 2007
Community Chest Awards 2006 Corporate Gold
Asia Logistics Award Hall of Fame 2003
Community Chest Awards 1998 Corporate Bronze
Singapore Quality Class 1997
Singapore Institute of HR Management Corporate HR Award 1997
National Training Award 1994

Ops Excellence Awards

World-class solutions must go hand-in-hand with quality execution; which is why we
constantly aim to improve our operations to better serve our valued customers.

SCA Security Excellence Award 2014

Halal Certification (MUIS) 2014
DuPont Responsible Shipper Award 2012
ExxonMobil Operational Excellence Award 2012
Molexs Contract Logistics Supplier of the Year 2011
Samsungs Great Effort Award 2011 (Malaysia)
Model Work-Safety Enterprise 2011 (Tianjin)
Integrity & Quality Enterprise 2011 (Tianjin)
Chinas Top 100 Food Logistics Enterprise 2011 (Chengdu)

Page 21 of 50

Shanghai FTZ Awards Top 100 Enterprise 2010 (Shanghai)

SCIC Responsible Care Awards 2010
Tianjin FTZ/ALP Work-Safety A Class Enterprise 2010 (Tianjin)
Tianjin FTZ Top 100 Corporations 2010 (Tianjin)
Outstanding Singapore Enterprise in Xiamen 2010 (Xiamen)
Customs AA Class Certification 2010 (Tianjin)
SCIC Responsible Care Awards 2010
AA Enterprise Certification 2009 (Xiamen)
SCIC Responsible Care Awards 2008
ISO 28000:2007 Excellent Security Management 2008
Regional Winner of AAA Cold Storage Plant Category (Philippines) 2008
SCIC Responsible Care Awards 2005
Top Importer in Tianjin 2005 (Tianjin)
Tianjin Top 50 Exporter 2005 (Tianjin)
IE Approved Cyber Trader (ACT) Status 2002

Page 22 of 50

LITERATURE REVIEW

Stock is the supply of anything or asset utilized as a part of an association. A

stock framework is the situated of approaches and controls that screens levels of
stock and figures out what levels ought to be kept up, when stock ought to be
renewed, and how vast requests ought to be, (Chase and Aquila no, 1995:546).
Then again, administration is a demonstration of hierarchical outline. The
fundamental elements of administration are to distinguish for a central business
association territories of pivotal possibilities and limitations so that the business
association can make auxiliary reactions to incorporate these requirements and
possibilities inside its limit.
Stock administration along these lines has been characterized from numerous
points of view by numerous creators. Obviously, these creators characterized
stock administration in view of their impression of the topic. Nwandu,
characterizes stock administration as a manifestation of organization control that
is especially fundamental in all assembling, wholesale and retail associations. The
quintessence of stock as per Nwandu is, "to have the right products quality and
amount, at the correct place and time". The embodiment of stock administration
for a contemporary association. This methodology is required as a piece of store
network system to secure generation framework against any sort of unsettling
influence. Orga characterizes stock control as a methodology of guaranteeing that
the right nature of the applicable stock is accessible at the ideal time and in the
perfect spot. Nweze , all alone part characterizes stock control as the method for
guaranteeing that real stream of stock in an association accommodates with
arrangement .From the prior thusly, one gathers that stock administration is the
demonstration of guaranteeing that adjusted things of stock are kept up at the
right amount, quality, place and time in an association, to guarantee hierarchical
Business continuum.

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Sorts of Inventory
Ile opines that stock is ordered into three sorts which incorporate;
i. Crude Material stock
ii. Work-in-advancement stock
iii. Completed merchandise stock

Crude material stock:

This incorporates all things bought by an association for handling. For example,
Flour, yeast, eggs and so on are all piece of crude materials stock of a sweet shop
association.
Work-In-Progress Inventory
This is additionally called merchandise in-advancement stock. This is a
transitional phase of crude material stock that is yet to be done by the plant to go
into another phase of handling. These are materials that have been mostly
transformed however are yet uncompleted.
Completed Goods Inventory
This is the load of completed products. These could be load of products
anticipating shipment or in the stockroom; the level of completed merchandise
stock is a matter of co-appointment between the creation and deals branches of
the association.
As indicated by Bangkok, producing associations convey inventories for a mixed
bag of reasons. Inventories perform critical capacities in the aggregate generation
framework and since "it is physically inconceivable and monetarily impracticable
for every load of thing to arrive precisely where and when it is required", there is
have to keep some measure of stock anytime. The way an association has the
capacity keep up its expenses at low levels the better it is for the year end
Page 24 of 50

benefits, Wisner, Tan and Leong. Associations purchase and offer their stock;
there dependably emerges equalization toward the end of the year which should
be extended to the following year.

Re-Order Level as associations endeavor to attain to effectiveness, they ought to

have the capacity to comprehend their Re-Order Levels (ROL) which empowers
them know when to request and when not to request. This can be attained to
through the utilization of quantitative strategies which require fitting stock
administration. Bathetic, Plebian, Saccani and Synthetics (2010) contends that
stock administration need to be sorted out in a legitimate manner so that the
association can have the capacity to know when to request and the amount to
request. This must be attained to through the Economic Order Quantity (EOQ)
reckoning.
A study was embraced somewhere around 1981 and 2000 in the US to investigate
stock administration and was discovered that associations that kept an excess of
stock in their stockroom worked a wasteful inventory network, while those that
kept not very many stock in their distribution center were exceptionally proficient
Lai and Cheng, said. Colleagues and Rutgers (2005) concur that having stock in
your store has an included point of interest for the association since clients will be
fulfilled right away prompting enhanced execution rating.

.COSTS ASSOCIATED WITH INVENTORY

Production cost.

Capital cost.

Ordering cost.

Carrying cost.

Shortage cost.

Page 25 of 50

INVENTORY CONTROL
The primary target of stock control is to accomplish most extreme productivity
underway & deals with least interest in stock.
Stock control is an arranged methodology of figuring out what to request, when to
request and the amount to request and the amount to stock, with the goal that
expenses connected with purchasing and putting away are ideal without intruding
on creation and deals.
INVENTORY CONTROL TERMINOLOGY

Demand:
It is the number of items required per unit of time. The demand may be either
deterministic or probabilistic in nature.

Order cycle:
The time period between two successive orders is called order cycle
Lead time:
The length of time between placing an order and receipts of items is called lead
time.

Safety stock:
It is also called buffer stock or minimum stock. It is the stock or inventory
needed to account for delays in materials supply and to account for sudden
increase in demand due to rush orders.

Inventory turnover:
If the company maintains inventories equal to 3 months consumption. It means
that inventory turnover is 4 times a year i.e., the entire inventory is used up and
replaced 4 times a year.

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ECONOMIC ORDER QUANTITY

A choice about the amount to request has extraordinary hugeness in stock
administration. The amount to be bought neither ought to nor be little nor
enormous on the grounds are that expenses of purchasing and conveying
materials high. Monetary request amount is the extent of the parcel to be acquired
which is financially feasible. This is the amount of materials which can be bought
at least expenses. For the most part financial request amount is the time when
stock conveying expenses are equivalent to request expenses. In deciding
financial request amount it is accepted that cost of overseeing stock is made up
singularly of two sections i.e., requesting cost and conveying expense. The
expense connections are demonstrated in underneath figure.

FORMULA FOR CALCULATING ECONOMIC ORDER QUANTITY

(EOQ)

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OBJECTIVE OF THE PROJECT/STUDY

Primary objective:

A Study on the importance of the quality and timely delivery of inventory

reference SnapDeal.
Secondary objective:

To discover whether the stock control system embraced by firms has served to
manage stock issues.

To discover whether the stock controls firms influences their execution as far as
benefit.
The main objective of this projrct are:

To understand the world class operations and procedures in the warehouse

To know how efficiently the warehouses are managed throughout the world.

Manually maintain the records of :

The purchases
Reorder Levels

Supplier and Customer monetary positions and

Other related transactions made at the warehouse

The main objective of this project report is to get the practical knowledge of
functions in logistics.

To know the significance of Warehouse management in the logistics industry.

To find the strength, weakness, opportunities, threats of the warehouse

management system.

Page 28 of 50

RESEARCH METHODOLOGY

Source of data : secondary data

Type of method used: observatory method

Methodology is the systematic, theoretical analysis of the methods applied to a field of study,
or the theoretical analysis of the body of methods and principles associated with a branch of
knowledge. The process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research, interviews, surveys
and other research techniques and could include both present and historical information.
A methodology does not set out to provide solutions but offers the theoretical underpinning
for understanding which method, set of methods or so called best practices can be applied
to a specific case.

Research Design:
A research design is the blue print of the study. The design of a study defines the study type
i.e. descriptive, correlational, semi-experimental, experimental, review, meta-analytic and
sub-type i.e. descriptive-longitudinal case study, research question, hypotheses, independent
and dependent variables, experimental design and if applicable, data collection methods and a
statistical analysis plan. Research design is the framework that has been created to seek
answers to research questions.
They are concerned with turning the research question into a testing project. The best design
depends on your research questions. Every design has its positive and negative sides. The
research design has been considered as a "blueprint" for research, dealing with at least four
problems: what questions to study, what data are relevant, what data to collect, and how to
analyze the results. The research design used for the study is descriptive research design.
Page 29 of 50

In this project the study on importance of quality and timely delivery of inventory at YCH
logistics with reference to SnapDeal Noida. Further the inventory management is calculated
on the basis of EOQ.

PERIOD OF STUDY:

The study was conducted for the period of Three Months i.e. from February 2015to April
2015

Method of data Collection.

The data collection is an activity of gathering fact of information about a subject in a
research study. There are two types of data.
A. Primary Data.
Single data compiled and studied for a specific purpose is known as primary
data. In this project primary data has been collected through interacting with
the various YCH logistics officials and my project guide Sir. Karthikeyan to
meet the objectives of the study.
B. Secondary Data.
The data which somebody else has already collected and which have been
passed through the statistical process is called secondary data. Secondary data
are also used for the research study are obtaining from external sources by
internet, magazines and various journals. The researcher has collected
secondary data through websites, journals, books etc.

Page 30 of 50

Scope of study

Doing quality check soon after GRN is done till doing putaway of the inventory.

To segregating the goods according the category.

Managing the inventory and replenishing it when stocks go to a buffer level.

To ensure timely delivery of the cargo by forwarding the same to the packing unit and
forwarding the same to for dispatch respectively of the pick lists and invoices
generated.

To ensure goods pertaining to Return to Origin are checked for any faults and damage
and return the same to the vendors for it disposal.

Page 31 of 50

DATA ANALYSIS AND INTERPRETATION

Quality assurance in the warehouse is a way of testing and checking

the products in the warehouse so that the items and groups of items
are what they should be. The idea is that at the end or other locations
in the warehouse the items are checked, either by weight or size or
other means, to make sure that it matches what is on the system. By
automating the system the software can check within certain
parameters, for example within a selected weight band, to make sure
that the item is what it should be. An example would be a box that is
tracked by the system using the specific barcode, should have 3 x 50
kg items in. Then having a weighing check that the box passes over
would check that the box weighs in at around 150kgs.
Advantages of warehouse automated control
*

Quantity accuracy. Automated quality control will help you

monitor the quantity of your packages. Manual inspection is a
thing of the past. No human error, no wasted delivery charges for
the wrong item.

Weight accuracy. Any discrepancy on the package weight

means quality issue. As early as the time it was detected, you
will be able to correct it. This is the time manual checking is
done.

Safe and intact inspection. Inspection of goods or items

sometimes passes several tests from production until it is
shipped to the customer's door. In any
case, it can get damaged or depreciate through various handling
and inspection, the good thing about automated warehouse
quality control is its ability to inspect through computers and
with minimal help from manual inspection.
* Time saver. Save time by eliminating manual inspection. These

items can pass one inspection through computer monitors and

they are ready to be shipped.

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* Excellent inspection capability. Automated quality inspection

offers 100% accuracy on items inspected. Anything that does not
comply with the standard quality assurance is immediately
rejected as a precaution. This will enhance delivery of good
quality products to the customer. The automated quality checker
can be installed by a conveyor system company and connected
to work with your warehouse management system. The WMS
should be able to track the progress of the box and check that
the pickers have done their job and that the items are in the box.
Having this soon pays for itself after the initial investment as the
checks make sure that the accuracy of the items is increased
and problems on delivery are cut.
In the below table, security stock for the different parts
computed are demonstrated. Genuine interest is given for every
segment for a time of 1 year and the lead-time is figured at a
most extreme of days & typical 100 of 60 days and these were
changed over into every annum. Thus, from computation of
wellbeing stock, we can ready to decide how much the
organization can hold the stock available for later stock every
annum.

Page 33 of 50

Process of GRN to Dispatch

Inbound - GRN
GRN create
GRN

Enter purchase order no.

/invoice no.
(PONA/ASR)

Page 34 of 50

Add new GRN

Enter PO no. & date

Enter SUPC code

Check product price ,image

& item
name on Snap deal site

Page 35 of 50

Inbound QC
GRN Quality
check

Search item
(enter item
code)

Enter GNA
no.

Check product price

,image & item name
on Snap deal site

Page 36 of 50

Inbound Put away

QC Put away

Category of put away -GRN

Create Put away

Enter GNA
no.

Page 37 of 50

Add to Put away

Auto created PTNA no.

Take print out

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Inventory
Search item

Create pick list

Pick
list

Page 39 of 50

Dashboard - Invoicing
Fulfillment pick list
i

Search concern
pick list

Page 40 of 50

Pick list open for invoicing

Scan item code for invoicing

take print & product handover to packaging team

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Returns Manifest
fulfillment

Start manifest

Create manifest

Minimum quantity

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Close manifest

Total quantity of manifest with tracking no.

Take print out

Page 43 of 50

FINDINGS

Throughout the period of project carried on ABC analysis is done to segregate

goods on the basis of their value i.e. High Value, Medium Value and Low Value.

Contribution of ERP to choose SCM patterns.

Shortcomings of ERP in supporting other SCM patterns.

Introduction of new techniques to warehousing.

RTO (Return to Origin) reverse logistics or reverse methodology of the

shipments.

YCH Noida warehouse is biggest warehouse with 43000 Sq.ft.

Automated storage and Retrieval System.

Hands-on Experience on Uniware software.

Page 44 of 50

CONCLUSION
This study sort to answer the inquiries what is the degree of stock administration procedures
application, how to focus the effect and difficulties of stock administration systems on
inventory network execution and how to focus the difficulties of stock administration
methods Inventory Management is extremely imperative to the achievement and development
of associations. The whole benefit of an association is fixed to the volume of items sold
which has a direct association with the nature of the item. Administration does a considerable
measure to present a decent association to general society regarding quality production. Good
stock administration in any assembling association, spares the association from low quality
creation, disillusionment of prepared clients, loss of benefit and great social obligation. This
is finished by guaranteeing auspicious conveyance of crude materials to the processing plant
and dispersion of wrapped up
Products, in place of creation to the distribution center. On the off chance that stock
administration is not enough maintained, production can't meet the goals of clients which is
loss of income to the association. Right from procurement to the time of handling, nature of
crude material is the boss determinant of the productive efficiency of any assembling
concern. This differs from association to association.
In Emanate, the crude materials are unstable and primarily bond which is acquired
provincially. The transforming machines and innovation are, however foreign made. In
Hardies and Drumheads, the crude materials are numerous, and are up to 90% mainly
sourced. Exceptional chemicals are in any case, imported. In the Nigeria Bottling Company,
the primary crude materials are shading and Reagent, which is imported. Other crude
materials are water and sucrose which are locally sourced. The associations consolidate the
First-in-First-out (FIFO) and Average Methods in their stock distributions.
A superior stock administration will unquestionably be useful in tackling the issues the
organization is confronting as for stock and will clear route for lessening the immense venture
or obstructing of cash in stock. From the examination we can presume that the Company can
take after the Economic Order Quantity (EOQ) for ideal buy and it can keep up wellbeing
stock for its parts keeping in mind the end goal to evade stock-out conditions & help in
persistent generation stream.
This would diminish the expense and improve the benefit. Additionally there ought to be
tight control practiced on stock levels in light of ABC investigation & keep up high rate in
Page 45 of

50

quick moving things in inventories according to on FSN examination for proficient running
of the stock. Since the stock Turnover proportion demonstrates the expanding pattern, there
will be more interest for the items later on periods. On the off chance that they could
legitimately execute and take after the standards and methods of stock administration, they
can improve the benefit with least cost.

Page 46 of 50

SUGGESTIONS & RECOMMODATIONS

1. Installation of Warehouse Management System.
2. Integrated RFID-based technology that will improve the entire inventory handling
process.
Warehouse Management System can:

Scan & verify deliveries as they are received-right on the dock

Execute real-time inventory transactions, with full bin/serial/lot support

Manage the picking process from a single screen - without the need to print pick
tickets

Verify Goods as they are packed & shipped, automatically generating bills of
lading

Automate the Billing Selection process

Support a wide range of wireless radio frequency data collection devices to enable
accurate, efficient tracking of any product
Warehouse

Management

System

(WMS)

helps

distributors,

retailers,

exporters/importers, and 3PL companies run more productive, efficient, and

profitable warehouse operations. It helps strengthening customer relationships,
reduce operating expenses and increase warehouse and distribution efficiencies.
WMS is an intelligent investment that will bring instant accuracy in warehouse
operations and yield long-term financial benefits.

Proposed Solution:
The proposed solution is to create a Warehouse Management System with an
integrated RFID-based technology that will improve the entire inventory
handling process by providing an automated, systematic and accurate warehouse
management cycle that is error-free, efficient and updated real-time.

Page 47 of 50

LIMITATIONS

Scalability & Rapid Regionalization

o The data was collected only through interacting with various YCH Logistics
Officials and my project guide Sir. Karthikeyan and websites so accurate data
is not known.
o Data interpreted relating to inventory handled at YCH Logistics is not accurate
and may vary as.
o The research was conducted only for a limited period i.e. three months which
was not sufficient.
o

Achieving growth or expansion in accelerated time

Maintaining consistency in org. culture

Institutionalizing knowledge

Accountability measures

Page 48 of 50

Refrences

Edwards, M. and Holmes, D. (1996). Beyond The Magic Bullet: NonGovernmental Organization Performance and Accountability in the Post-Cold
War World. Kumar an: Hartford CT.
Felix, L. (2011). Sustainability Strategies Adopted by Non-Governmental
Organizations in Nairobi, Kenya. University of Nairobi, School of Business.
Nairobi: Unpublished MBA Project.

Fellows, P. and Rutgers, A. (2005). Business Management for Small-Scale AgroProcessors. Agricultural Management, Marketing Management and Finance
Service (AGSF). FAO of the United Nations, Agricultural Support Systems
Division. Rome: Food and agricultural Organization of the United Nations.

Farm, S. (2003, March 05). Vendor Managed Inventory (VMI): Three Steps in
Making It Work. Retrieved May 12, 2013, from Pertinent and Timely Articles to
Cultivate Your SCM Knowledge: http://scm.ncsu.edu/scm-articles/article/vendormanaged-inventory-vmi-three-steps-in-making-it-work.

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