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Logistics and Operations Management LOM301

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Added on: 2024-10-07 12:04:21
Order Code: CLT328731
Question Task Id: 0
  • Subject Code :

    LOM301

Introduction

Pacificomm New Zealand is one of the leading logistics and distribution companies, focusing on technology products' supply chain management services. As a subsidiary of the private equity investment group Millennium Corp, Pacificomm has taken advantage of over 25 specializations in the New Zealand market (Pacificomm, 2024).

Company Overview

Pacificomm was inaugurated in 2012 and is located in Auckland, New Zealand; this company aims to deliver product and service solutions in the Oceania region. The company's strategy is to extend the value propositions of supply chain management to become competitive assets for the partners by accumulating significant amounts of data, implementing cutting-edge technologies, and possessing profound knowledge of the industry (Pacificomm, 2024). Their operational philosophy emphasizes respecting and adding value to the products being handled, which their motto encapsulates. Yet phrases such as "respect the box, move the box, add value to the box" are still actively introduced.

Services and Capabilities

Pacificomm offers a diverse range of services that include:

  • Distribution of Technology Products: It offers different devices, such as handsets, tablets, laptops, and accessories, from recognizable brands, such as Huawei and Blue Microphones.
  • Supply Chain Management: They offer end-to-ended-to-end services that drive visibility and continuous improvement via Information Technology applications such as WMS and TMS.
  • Global Reach: Pacificomm has been established in more than 15 countries in the Pacific Rim and has developed well-systemized logistical support for sales and delivery. Some of its deployments are in significant consumption markets such as Australia and New Zealand and several countries in the Pacific region.

Competitive Edge

What makes Pacificomm unique is that it is focused on a customer-oriented approach and cutting-edge automation tools. This includes:

  • Collaborative Partnerships: Pacificomm has good relationships with upstream and downstream partners, providing services specific to clients' needs.
  • Continuous Improvement: The Company has always encouraged fundamental values and approaches within its teams to ensure that operations occur cohesively while avoiding the rigidity of bureaucratic structure. At the same time, the company has always been able to adapt to changing market environments.


Task 1: Cost Analysis of 3PL Services

Current Budget:

  • Warehouse Leasing and Projected Expenditures: $920,640/year

Inventory and Sales Data:

  • Average Inventory: 98,050 cartons
  • Annual Estimated Sales: 407,000 cartons

3PL Quoted Fees:

  • One-off taking over current inventory: Free
  • Following Receivals: $0.20 per carton
  • Picking, Packing, and Dispatching: $1.50 per carton
  • Storage: $0.20 per carton per month

Cost Calculation for 3PL Services:

1.Receiving Costs:

Receiving Cost=Annual Estimated Sales Fee per carton
= 407,0000.20=81,400

2.Picking, Packing, and Dispatching Costs:

Picking,Packing,andDispatchingCost=AnnualEstimatedSales Feepercarton
= 407,0001.50
=610,500

3.Storage Costs:

StorageCost=AverageInventoryFeepercartonpermonth12
= 98,0500.2012
=235,320

4.Total Annual Costs for 3PL Services:

Total3PLCosts=ReceivingCost+Picking,Packing,andDispatchingCost+ Storage Cost
=81,400+610,500+235,320
=927,220

Using the third-party logistics (3PL) provider will incur total annual expenses of $927,220. In comparison, leasing an empty warehouse facility would cost $920,640. Since utilizing 3PL services amounts to $927,220, which is higher than the existing budget for leasing the warehouse by $6,580, it is advisable to find more cost-saving techniques or try negotiating with 3PL providers for lower rates to keep 3rd party costs in line with existing budget.

Task 2:

Flowchart Steps

Screenshot_529-1728301292.jpg Screenshot_530-1728301425.jpg

Task 3:
Forklift Truck

Description:
A forklift could be described as powered equipment utilized in transporting large loads and lifting them within a short distance. The front part has two forks, which are adjustable and used to lift pallets and other loads.

Tasks Performed:

  • Picking heavy pallets from the floor and placing them on the shelving area.
  • Moving materials and stocks from one place to the other within the warehouse.
  • Organising materials in vertical filing systems.

Photograph:

Screenshot_531-1728301511.jpg

Pallet Jack

Description:

A pallet jack or pallet truck is a stand that lifts and moves pallets. It can be operated manually or by electric power. The jack has forks that glide underneath the pallet and is wheeled for easy and enhanced mobility.
Tasks Performed:

  • Transporting loads of products from one part of the warehouse to the other.
  • Transporting pallets from one location to another especially from the delivery trucks.
  • Short-distance transport of materials.

Photograph:

Screenshot_532-1728301576.jpg

Conveyor System
Description:

A conveyor system is an arrangement of power conveyors, such as belts, rollers, or other means, that help move products from one place to another in the warehouse. There are two types: powered and gravity-fed.

Tasks Performed:

  • Transporting goods from one warehouse zone to another on a conveyor mode has been expected.
  • About sorting objects that need to be packed and sent somewhere.
  • Reduction of manual handling and increase of the effectiveness of the material handling process.

Photograph:

Screenshot_533-1728301659.jpg

Stacker Crane

Description:
A stacker crane is an automatic equipment for loading and unloading goods in a warehouse. It is usually established in high-bay storage systems and may be operated by a computer.

Tasks Performed:

  • Pallets of different types of products are placed in automated vertical racking systems.
  • To provide the order fulfilment information that is accurate and promptly retrievable.
  • Minimizing handling effort and occupancy of storage space with good stock space.

Photograph:

Screenshot_534-1728301778.jpg

Task 4:
A

Screenshot_535-1728301828.jpg

B:

Screenshot_536-1728301921.jpg

C:

Screenshot_537-1728302107.jpg

Task 5:

Warehouse claim procedures and its policies

Overview

There is also a claims section that states how and when to fill claims involving damaged, lost, or incorrect goods received in the warehouse. These procedures are put in place to enable efficient claim processing while ensuring that the company has not lost its core values and focus on customers.

Claim Procedures
Notification of Claim:

  • Who: The receiving personnel must inform the Warehouse Manager or Claims Coordinator as soon as he reaches the end of the receiving process and realizes they have received a damaged, lost or incorrect item.
  • How: It can be oral or in writing through mail to notify the details of the issue.

Documentation:
Required Documents:
Delivery receipt
Any other physical and photo-graphical evidence of the extent of damage (if any)
Further product data, including SKU number, product description, and number of products with each SKU number.
Submission: Any documentation must be provided to the Claims Coordinator no later than 24 hours after the problem is discovered.

Claim Assessment:

  • Initial Review: The Claims Coordinator should process the documents submitted with the patients within 48 hours.
  • Investigation: If required, the delivery carrier will inspect the warehouse, or processes may also be checked.

Resolution:

Outcomes: If the claim is valid, the remedies available are refund, replacement or credit for the subsequent purchases. If then the claim deserves rejection, the company will likewise send the Claims Coordinator to explain in writing to the party affected.

Communication:

  • Notification of Decision: The Claims Coordinator will notify the Claimant of the decision within seven business days of receiving the first claim.
  • Follow-Up: The Claims Coordinator will then close the file but follow up with the client to gauge their satisfaction with the outcome.

Record Keeping:

  • Documentation: A copy of all the claims and related documents will be kept in the electronic tracking and auditing system.
  • Review: Preliminary decisions relating to compensation shall be made quarterly to assess trends and adjust procedures.

C. Policies

  • Eligibility for Claims: Returns will be accepted only when the products were damaged during transportation, when they did not arrive at all, or when the client received the wrong items.
  • Timeliness: To be valid, any claims must be made within 48 hours of receipt of the goods.
  • Responsibility: In this case, the receiving personnel are responsible for physically checking all the shipments as they receive them and reporting any anomalies.
  • Fraud Prevention: Any entries considered as having been produced fraudulent will be investigated, and proper disciplinary measures will be taken.

Task 6:
Team Formation and Benefits of Teamwork

Since executing the tasks launched for the warehouse project requires cooperation with the company's staff members who work in divisions, I suggest forming a project team (Massachusetts, 2024). The selected team members are: The selected team members are:

  • Warehouse Manager: He is in charge of the general supervision of the institution and its daily operation.
  • Logistics Coordinator: They have good knowledge of local transportation and should have dealt with the supply chain by now, with a perfect understanding of handling inventories.
  • Inventory Analyst: This position will also evaluate inventory capacity and help determine the storage setup and control flow.
  • Quality Assurance Officer: It effectively ensures that operations and claims processing comply with safety and quality standards.
  • IT Specialist: Supports the implementation of technologies in managing warehouses and other automated equipment.
  • HR Representative: This person deals with aspects such as the team environment, training needs, and training at the workplace.

Benefits of Teamwork

  • Diverse Skill Sets: When employees in a particular organization belong to different departments, they contribute their knowledge to handling multiple problems. Every individual comes with different ideas for problem-solving, hence generating new ideas.
  • Improved Communication: Working as a team means keeping key communication channels open so that there will be minimal misunderstanding while all stakeholders understand the project's goals and objectives.
  • Increased Efficiency: If the team is adequately organized, it can divide its work according to skills, minimizing time to complete projects. This efficiency is very important, especially when there are tight schedules in the warehouse activities.
  • Enhanced Problem-Solving: Being in a group encourages individuals to generate more ideas and make joint decisions. If the group encounters problems, all the members can contribute their ideas to create effective solutions.
  • Employee Morale: Teamwork can promote morale and motivation when a lot of people are grouped together to work on a certain project. Team members feel a sense of belonging and are admired for this, hence improving the quality of work developed within the team.
  • Accountability: Team members can easily be called upon to explain their contributions, which makes everyone on the team committed to ensuring the organization achieves its objectives.

Establishing a cross-functional project team benefits the operation aspect within the organization and creates a supportive organizational culture that results in overall organizational performance in warehousing.

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  • Uploaded By : Nivesh
  • Posted on : October 07th, 2024
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