Case : Warehouse Optimization to Increase Productivity

1 CWT Integrated Pte Ltd Case : Warehouse Optimization to Increase Productivity Corporate Profile CWT, a leading warehouse operator in Singapore; has more than 8.5 million ft2 of warehouse space locally. Depending on the cargo nature and customer requirements, CWT will recommend the most suitable type of warehouse accordingly. As such, CWT is also constantly looking at more efficient ways to operate its warehouse to increase productivity. At one particular location, CWT has to manage few customers within this multi-‐user warehouse. General Information: 1. There are about 2-‐3 customers at the CWT’s warehouse 2. The products handled are of similar nature but different sizes and handling requirements 3. Time taken for the loading and unloading is also different for each customer Information Provided: 1) Typical Pallet dimensions (LxBxH) -‐ 1.3m x 1.1m x (1.9m -‐ 2.1m) -‐ 1.1m x 1.1m x 1.3m 2) Number of SKUs Product Type Product Packaging Cargo Stackability Average Storage Volume DDI (number of days inventory in warehouse) 3) 20'ft internal container dimensions (LxBxH) 5850mm x 2350mm x 2350mm Product weight Range from 1375kg to 1500kg Range from 650kg to 800kg Approximately 100 Commodity: Polymer Resin 1) 25kg bags (40-‐60 bags per pallet) or 2) Flexi-‐con bag (650kg to 800kg) Ranges from Single layer stacking to 3 high stacking 5000 tons 45 days 20'ft container maximum payload 28 tons 2 40'ft internal container dimensions (LxBxH) 12000mm x 2350mm x 2350mm 40'ft container maximum payload 28 tons 4) Typical warehouse inbound receiving operations include: Loaded Container arrival, check docs, forklift unload, tally clerk check cargo with docs. Once confirmed, sign off on doc. Forklift driver proceed to bin in cargo into location. Pass details to Warehouse CS, do receiving in Warehouse Management System (WMS). Inbound is usually in 40'ft container and takes about 30-‐40 mins to unload and bin-‐in location. include: Typical warehouse outbound issuing operations Empty Container arrival, forklift picking based on Pick list, tally clerk check cargo at staging area, fill up stuffing form and stuff container. Pass details to Warehouse CS to do issuing in Warehouse Management System (WMS). Outbound is in both 20'ft and 40'ft. Time taken to load a 20'ft container is approximately 35-‐60 mins, depending on whether loose or palletized or whether value-‐added services such as lashing is required. Time taken to load a 40'ft container (palletized) is approximately 40-‐60 mins, depending on whether value-‐added services such as lashing is required. Requirements Based on the data and the research, the team is required to work out the optimum way to run the warehouse operations. It should include but not limited to the following: 1. Propose warehouse size & layout to efficiently store the respective customers’ products. a. Show the product flow layout and also to include Staging area for both inbound and outbound. b. Allocate an area for damage cargo or loose cargo (less than full pallet). Propose ways to minimize damage occurrence in warehouse. 2. Proposed optimum resources required – both manpower & equipment a. With the current labour crunch, study the productivity of the warehouse operations and propose ways and measures for improvements. Areas to look at include how to cross-‐train and deploy manpower. 3. Research on current market technological improvements and trends, and propose similar technological application to our operations. (Review a potential for automation) 3 4. Propose and set Key Performance Indicators (KPIs) to continuously track warehouse performance.

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