lgc logistics
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LGC (LOGISTICS INC)
AGSB MBAH Batch 8
MIXED NUTS (Group IV)Candice Rachel U. Canlas, M.D.
Lorelynn Dacanay-Papa, D.D.M. Anna Sofia Victoria S. Fajardo, M.D.
Maria Agnes G. Fulo, R.N.Frederick Mars B. Untalan, M.D., FPSOHNS, FPAHNS
Rudolfo C. Villarin, M.D.
OUTLINE COMPANY BACKGROUND CURRENT PRACTICES
◦ PRODUCT & SERVICE DESIGN◦ PROCESS ANALYSIS & MANAGEMENT◦ QUALITY MANAGEMENT◦ INVENTORY CONTROL◦ SCHEDULING & CAPACITY PLANNING
ANALYSIS RECOMMENDATIONS
COMPANY BACKGROUND LGC Logistics is a member of the Lina Group
of Companies It is a global company which believes that
moving forward means going where the customers are located.
November 14, 2002◦ Granted by the Philippine Export Zone Authority a
status of “Ecozone Facilities Enterprise”◦ 1st CY/CFS inside PEZA in CALABARZON
VISION LGC Logistics is envisioned to reduce
processing time, give quick turnover of goods and increase customer confidence so the customer can do business in real time.
MISSION LGC Logistics offers stripping/de-
consolidation, consolidation, delivery to end-user, inventory management system, domestic freight system, and complete logistical services under one roof at your doorstep.
LGC (Logistics Inc) Services
PRODUCT & SERVICE DESIGN STRIPPING /
DECONSOLIDATION◦ Unpacking contents of a
container,also called devanning.
CONSOLIDATION◦ Combine more than one
shipment into a container;serves as consolidation point for export shipments.
DELIVERY TO END-USER◦ Deliver to ultimate
consignee
PRODUCT & SERVICE DESIGN INVENTORY MANAGEMENT
SYSTEM◦ A 24/7 efficient use of web-
order based application DOMESTIC FREIGHT
SYSTEM◦ Proof of Delivery (POD)
Tracking System COMPLETE LOGISTICAL
SERVICES◦ PO management,
inventory management, control, packaging and crating, sorting, labeling and re-labelling, with nationwide distribution
INFRASTRUCTURE
THE LGC CY/CFS ADVANTAGE SAFE
24/7 security guards8 units of CCTV surveillance
cameras strategically located throughout the warehouse
FAST2-day transfer to CFS, upon
arrival on the port of dischargeDelivery to the end-user is one
day upon releasing of goods ACCESSIBLE
Location reduces product stress and avoids traffic congestion
GREAT VALUEServices are effective &
competitive
Located in CARMELRAY INDUSTRIAL PARK 2 Barangay Punta, Calamba, Laguna 4027
Inside a Philippine Export Zone Authority area in CALABARZON
59 km from Manila Internat’l Container Port 64 km from North Harbor 15 km from PEZA zones
LGC (Logistics Inc) Location
VICINITY MAP
ACTEX
FACILITY LAYOUT
FACILITY LAYOUT
PROCESS ANALYSIS
PROCESS ANALYSIS
CARGO RECEIVING Cargo receiving process involves the
activity being performed by the warehouseman upon arrival of items at the warehouse.
The responsibility involves checking of items against documents on its description and quantity.
It is during this process that the actual condition of the outside packing of the items is being determined.
CONTROL OF DOCUMENTS Electronic documents / files are required for
back-up quarterly. This process is done to ensure that
electronic documents are available during power interruption, hardware crash or computer systems failure.
Another process involves the use of passwords to ensure the reliability and security of files and documents.
CARGO LOCATION This involves the process wherein the
warehouseman checks the inventory location of actual cargo that will be delivered to the end-user.
start
Locate cargo
located NY
Correct Quantit
yThoroughly
Check
N
B
Y
YCorrect
Correct Qty
NThoroughly
check
Complete
N
Y
N
CARGO LOCATION
D
CY
CONT’D
D
Notify acct handler
Thoroughly physical check
100%
found
Yc
Re-positioning of shipment to staging area
Sign waf and forward to transport dispatch
N
c
CONT’N CARGO LOCATION
END
This process involves the documentation of items that is being requested by the client to deliver to their respective end users.
The withdrawal documents are essential in applying for Farm-out.
This form is forwarded to PEZA zone representatives for processing
PREPARATION OF THE WITHDRAWAL OF DOCUMENTS
CARGO DISPATCH This involves the process of receiving of the
withdrawal documents from the warehouseman together with the cargo.
It also involves inspection of the truck being used to ensure cleanliness, maintenance and good working condition.
This process also involves the preparation of a Gate Pass.
Quality Management• ISO 9001 is the
internationally recognised standard for the quality management of businesses.
• It applies to the processes that create and control the products and services an organisation supplies.
• Prescribes systematic control of activities to ensure that the needs and expectations of customers are met.
• It is designed and intended to apply to virtually any product or service, made by any process anywhere in the world.
The Operations, a vital part of LGG Logistics, lnc. that plays the primary role of achieving the company's Vision of providing quality service in logistics and warehousing services. Will guarantee that it will attain the following objectives:
Monthly lnventory 99.7% accuracy of monthly inventory against actual cargo on
hand On-time Delivery 98% delivery of items to end-user within stipulated conditions
per zonePerfect Receiving ZERO incidences of wrong, short and over deliveries to end-
user Service Analysis Report Average rating of 4.20 for SAR conducted annually to all
accounts 100% Equipment Preventive Maintenance Schedule
Monitoring
Quality Management of LGC
ON-TIME DELIVERYAREA OF DELIVERY
ESTIMATED TRANSIT-TIME
ESTIMATED TIME OF ARRIVAL TO END-USERS
ZONE 1 (LAGUNA AREA)
30 - 45 mins 45 mins to 1 hour
ZONE 2(CAVITE AREA)
1 - 1.5 hours 1.5 - 2 hours
ZONE 3(PARAÑAQUE / FTI AREA)
1.5 - 2 hours 2 - 2.5 hours
ZONE 4(BATANGAS AREA)
1 - 1.5 hours 1.5 - 2 hours
EQUIPMENT PREVENTIVE MAINTENANCE SCHEDULE
This involves a process of using a Daily Maintenance Master Checklist Form
It provides on-time advice to the supplier / facilities and maintenance department for immediate preventive maintenance scheduling.
INVENTORY IN THE SYSTEM This is the heart of the warehouse
operations which tells the actual quantity of items on hand.
The system generates this information based on the encoded information by the account handler.
The company’s inventory system is Warehouse Operating System (WOS).
Monthly physical inventory is being performed
◦ Actual vs System
INVENTORY MANAGEMENT
Bar codes are assigned to each item or a group of items.
Fast-moving items are stored on the ground floor, while slow-moving & condemned items are on the 2nd floor.
Labels are used for each area and item.
A warehouse directory is readily available.
INVENTORY MANAGEMENT Access to the warehouse
is given only to the warehouseman.
Cycle counting is done on a monthly basis.
ALL inventory transactions are documented.
A process manual is available for inventory control.
Different levels of cold storage and warehouse storage are available to fit customer’s needs.
WAREHOUSE DIRECTORY
CAPACITY PLANNING To avoid lost sales, capacity must be set to
match peak demand
CAPACITY PLANNING
RACKING POSITIONSGF1CIP A 721CIP B 561CIP C 1201CIP D 1081CIP E 841CIP F 36
TOTAL 476
CAPACITY PLANNING
RACKING POSITIONS2F2CIP A 322CIP B 962CIP C 872CIP D 962CIP E 962CIP F 962CIP G 48
TOTAL 551
CAPACITY PLANNING
RACKING POSITIONS2TC2CIP H 302CIP J 602CIP K 602CIP L 602CIP M 30
OTHERS 13
TOTAL 253 + 551 + 476 = 1,280
Scheduling The customer is in the production schedule
and must be accommodated. The warehouse operates from 7 am to 7
pm. The administration office operates from 8
am to 5 pm. FIFO - FIRST IN, FIRST OUT System is
applied to customers
ANALYSIS OF LGC LOGISTICSDESIGN HIGH / LOW CONTACT SYSTEM
FACILITY LOCATION Operations near customer
FACILITY LAYOUT Should focus on production efficiency
PRODUCT DESIGN Environment and physical product define the nature of the service
PROCESS DESIGN Stages of production process have a direct, immediate effect on the customer
SCHEDULING Customer is in the production schedule & must be accommodated
QUALITY CONTROL Quality standards are measurable and fixed
CAPACITY PLANNING Storable output permits capacity at some average demand level
RECOMMENDATIONS
The group agreed to the ff observations made by an external auditor:
Include performance of cargoes in overall tabulation of performance monitoring of deliveries.
Acquire a copy of results of strategic quality planning conducted by the organization for ease of checking if plans and programs formulated were implemented.
Request a copy of results of evaluation performance for some outsourced service providers serving the site.
Install a secondary containment or catch basin for chemicals stored.
AGSB MBAH Batch 8MIXED NUTS (Group IV)
Candice Rachel U. Canlas, M.D.Lorelynn Dacanay-Papa, D.D.M.
Anna Sofia Victoria S. Fajardo, M.D.Maria Agnes G. Fulo, R.N.
Frederick Mars B. Untalan, MD, FPSOHNS, FPAHNSRudolfo C. Villarin, M.D.
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