Task 6 Warehouse & Inventory - Answer

Memo
To: Olga Kosyak

From: Francois Damba
Date: 15 December 2022
RE: TASK 6 – WAREHOUSE & INVENTORY
From the handover report and your observations of the warehouse at Chagong, you have
recognised that information on the performance of the warehouse and the information you
will need to manage the warehouse is currently not produced.
Identify what information you will need to manage the warehouse and what measures you
would put in place to monitor its performance.
Regards
Francois
To answer this task, you will find the following the learning material sections helpful
Managing Warehouse Operations/Defining the Control Requirements
Dear Francois,
In order to properly plan warehouse operations in Chagong, the following information should
be obtained:
1. We need to identify the workload in order to properly plan the resources. In order to do this we
need the following information on day-by-day basis:
- inbound workload of the warehouse in Chagong: the volumes of goods that

warehouse received on day-by-day bases, the handling groups of goods to be received,
e.g. palletized goods, loosed cartoons, loose sacks, etc., the time shipment
requirements for each goods, e.g. immediate shipment, to be placed on stock. We also
need to know the schedule of deliveries and to have the analyses of their timeliness in
order to make decision if we need to work with suppliers and contractors in order to
improve this issue and make them stick to the agreed schedule.
1
- storage requirement for the goods delivered to the warehouse: volume of goods
to be received, variety of handling groups of goods, volume of fast moving items (this will
allow to properly allocate storage area for each group of items).
- outbound workload of the warehouse in Chagong: picking methods and picking

quantities for individual items and for bulk consignments should be identified in order to
properly plan the resources, packing needs and methods for individual items as well as
quantities of individual items for each packing method. We need to know transport
loading schedule in order to work out the schedules for picking and packing activities
which are the most time consuming and resource consuming activities in the warehouse.
The quantities of goods for loading and dispatching should be also identified.
2. In order to determine resource requirements and proper calculate them we need to have the work
rates per hour for each work cycle in the warehouse such as goods receipt, put away, picking,
packing, goods dispatch.
3. We need to identify the mechanical handling equipment, operatives and packing and palletising
equipment, space for different operations.
4. We need to properly study and follow the local legislation on labour, warehousing and storage of
items, quarantine and quality inspection, transportation of goods, security, vehicles,
communication equipment, disposal of goods, incl. food and medical items, etc.
5. We need to have inventory lists of available technical resources in the warehouse with detailed
information regarding their condition, scheduled maintenance, etc.
6. Information of human resources available as well as their specialization, trainings attended,

qualification. Their current working schedules and salaries.
7. Roster of suppliers that can provide:
- hired resources incl. technical and human resources, their price lists and catalogues.
-warehouse supplies, such as pallets, packing supplies, furniture, IT equipment,
communication equipment, household and hygienic supplies, chemicals for pests control
- maintenance services for the equipment
8. We also need to have control information for each operating area as well as information on
overall flow of goods through the warehouse in order to control the work of the warehouse and to
increase efficiency and productivity, accuracy of the paperwork, reliability of information.
- Information for Goods Receipt operation area:
- Goods receipt schedules incl. arrival time. Items and quantities, type of load.
- Proper purchase orders and inventory system to effectively reconcile received items and
quantities.
- Records on movement to the bulk storage.
- Requirements regarding control checks of goods or quarantining of goods.
- Volume data and resource hours to calculate the utilization and performance.
- Information for Bulk Storage:
- What goods can be moved directly to the picking area
- Stock that needs pick face replenishment or despatch
- System for detection, tracing and reconciliation of errors
- Product and unit load information
- Space information and allocation
- Volume data and resource hours
 Page 2
- Information for Picking and Load Assembly:
- Picking locations and bulk storage locations.
- Consignments requirements.
- Proper picking lists based on consignments requirements and minimum travel time for
picking.
- Information on the volume of orders to plan the resources
- Information on when the replenishment of the resources is needed.
- Volume data and resource hours.
- Load planning system to determine system and sequence for picking consolidation of orders
and loading.
- Information for Goods Dispatch:
- Load planning schedules with numbers, size, volume of vehicles, loading times.
- Estimate resources for the scheduled activities.
- Volume data.
There four operational areas require constant control and monitoring. In order to properly
monitor the operational performance and to measure the effectiveness of management
actions I would suggest to establish two kinds of measurements. Together they will give us
proper and almost complete information on where we need improvement and how the
operations are managed:
1. Service level measurement system: we need to control and measure % of on-time
consignments, the fill rate of the consignments, picking accuracy.
2. Utilisation of resources: we need to measure the cost efficiency of the warehouse operations in
Chagong, incl productivity of resources versus productivity ‘standard’ (e.g. items handled per
person per day); utilisation of resources, e.g. % of warehouse space use comparing to space
available, etc.; goods wastage, e.g. % of goods lost due to damage, loss or theft.
Hope the proper information flow and control measurements established will help to make
the work of the warehouse more efficient.
Best regards,
Olga
 Page 3

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Memo

To: Olga Kosyak

Managing Warehouse Operations/Defining the Control Requirements

- inbound workload of the warehouse in Chagong: the volumes of goods that

- outbound workload of the warehouse in Chagong: picking methods and picking

6. Information of human resources available as well as their specialization, trainings attended,

7. Roster of suppliers that can provide:

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