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Warehouse Report

Company’s Name: PUMA India Pvt. Ltd.

Warehouse: Indo Arya Facility as Hassangarh.

Area: 50,000 sq ft.

Management: Indo Arya

Introduction
The report entails the activities done in the warehouse during the stock count. This
was one of those special operations launched as an immediate measure to counter
the problems which surfaced due to the inventory mismanagement. A team was
made, which consisted of PUMA employees, mainly related to Supply chain,
warehouse management & Sales Operations, which all report to the finance head.

PUMA India pvt. Ltd has two warehouses, one in Kirti Nagar (Delhi) and
another in Bangalore. The Bangalore warehouse is entitled for Imported Footwear
and Imported Accessories & Apparels. The Delhi warehouse had locally made
footwear and apparels. Due to recurring problems in Delhi warehouse and high cost,
the warehouse was shifted at Hassangarh and the operational charge was given to
Indo Arya. So a 3rd party system is followed. The Bangalore warehouse is handled by
DHL (which by the way, never had any problem).

Poor management of Indo Arya and bad follow up by


the warehouse manager of PUMA, the company has incurred a loss of approximately
half a crore. So for the immediate rectification, a team of the employees was sent,
headed by a finance person & the supply chain manager. There were persons from
Bangalore warehouse to help and a warehouse expert to straighten out things. IT
support was also there to assist in the process of scanning and collating the data.

Reasons for being in warehouse:

• The whole of the ware house was completely messed up.

• Stock could not be found easily, reducing the overall efficiency of the
warehouse, including In warding (space problem), Dropping DNs, SRN issue
along with some other problems which are a byproduct of mismanagement of
Warehousing facility.

Job at Hand:

• To manually scan every article, so as to match the physical stock and book
stock.

• Allocating the pallet and bin location, for easy pickings.

• Reconciliation of the stock.

• To reorganize the entire facility for smooth functioning and better inventory
management.
How the action unfolded

1. The first job at hand was to clear some space to work. There was no space in
between aisles, so in the beginning, the boxes were arranged in rows.

2. In the meanwhile, the current stock report was downloaded from SAP, which
showed a figure of 3.5 lakh of stock. That gave us an idea, what we are
dealing with and what is that we need to achieve.

3. Then pallet locations were identified, and barcodes were made for the
respective.

4. To begin on Day 1, teams were made and in the meanwhile some of the
manpower placed barcode on every pallet which depicted its location
(covered it with transparent tape, to make it last long).

5. Every team was then assigned a row to scan. This was managed by the
supply chain manager. This was important to have a proper man-
management and to ensure that he constantly mapped the whereabouts and
the work done at the respective rows (The resources are to be used
optimally). This was the floor operational end of the project and one of the
keys to its successful completion.

6. The work initially started on pallet area. Different teams had their team
leaders, assisted by a supervisor and two pickers. Every team had one
scanner. Began the scanning. Every article in the pallet was scanned an after
the completion of the pallet the file was saved. So there was one file for
every pallet.

7. Data management was also very important, as it would be taking into


account of all the scanned stock. When the number of teams increased,
another person was added to make it a two man team. The responsibility of
this team was to collate the data, according to pallet area. The final collated
data would be representing every article in every pallet. So the report that
would be generated at the end of the physical scanning would contain every
product in warehouse, with its respective pallet location. Also the same report
would be used to upload on SAP.

8. The files were submitted to the data manager, who downloaded them from
the scanners.

9. Same was done for the bins.


10.SRN section was scanned again and was considered a part of good stock. The
stock which could not be scanned was kept aside in a different pallet.

11.After the complete physical scanning, whose data was constantly being
downloaded into the system was collated.

12.A excel file was made, where each cell depicted a pallet. Another file was
made in which physical count was put against the scanned count. The
difference was checked again and reconciled.

13.Now after the final figure was received, it was compared with the last
available (before the stock take) figure. The difference is checked. The
difference then is checked in terms of total value.

14.The new file is sent to Austria/Germany to be uploaded on to SAP would be


ready for use.

Day by Day:

Day 1: 30,000 (Articles Scanned)

Day 2: 70,000

Day 3: 1,00,000

Day 4: 88,000

Day 5: 60,000 & 60,000 Socks

How it helped:

• The location of the articles were identified which would save a lot of time.

• The exact picture of the inventory became clear to the management, which
would help in taking better decisions i.e Finance team, Merchandising teams
etc.

• It would also lead to better buying and overall planning.


At any given time the physical stock and the book stock can have a difference of
+- 0.3%. This is the allowed figure. If something exceeds this, then there is a
problem. Although for the practical purposes it should be allowed to 0.5%.

The deviation in the stock was much lesser than it was anticipated. But still it
was a solution to a huge problem.

Conclusion:

In spite of giving this control to third party, it should be run by the company
itself. A different department, i.e. supply chain has to be there. Finance
department, Supply chain and Merchandising Department should work closely.
Flow of information is also very necessary. Unless information is not provided to
Supply chain team about the future buys and plans, it cannot function and serve
its actual purpose.

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