faisal 4 sem project report

8/7/2019 Faisal 4 sem PROJECT REPORT

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PROJECT REPORT

ON

WAREHOUSE MANAGENENT SYSTEM OF

GATI LOGISTICS


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EXECUTIVE SUMMARY

In todays competitive environment warehouse management has got

a special importance for getting edge in the business and succeeding

in the same. There is a heavy cost investment associated with the inventories about 80%

of working capital is blocked in the inventories and other related activities associated it.

The associated activities include warehousing of the inventories and production or

conversion process of the same. Warehouse management transformations are for making

the firm more efficient and improve its customer service. The importance of fulfilling the

increasingly demanding customer expectations and competitive edge is much higher than

providing services.

A typical warehouse management is concerned with controlling the movement of

materials and the storage of materials. managing warehouse operations is to control

inventories, provide better costumer service, and managing caring cost , is now more

important then ever. Though these functionalities are very basic but it takes lots of efforts

for effective management of available of resources. Space management in the warehouse


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is another important issue. One has to use the available space effectively in order to

accommodate maximum commodities in the specified area.

The main objective of the project is to study material handling system to implement it on

one of the assembly line in the company n also to set up a warehouse temporarily in the

assign area m.h is a very efficiency efficient way of controlling d inventory on d

production line . it is one of the tools of lean manufacturing system. This project is itself

a real time problem and highlights the implementation of these stated objectives which

ultimately leads to the secondary objectives of the project......

INTRODUCTION

A warehouse management system, or WMS, is a key part of the supply chain and

primarily aims to control the movement and storage of materials within a warehouse and

process the associated transactions, including shipping, receiving, put away and picking.

The systems also direct and optimize stock put away based on real-time information

about the status of bin utilization.

Warehouse management systems often utilize Auto ID Data Capture (AIDC) technology,

such as barcode scanners, mobile computers, wireless LANs and potentially Radio-

frequency identification (RFID) to efficiently monitor the flow of products. Once data

has been collected, there is either batch synchronization with, or a real-time wireless

transmission to a central database. The database can then provide useful reports about the

status of goods in the warehouse.


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The objective of a warehouse management system is to provide a set of computerized

procedures to handle the receipt of stock and returns into a warehouse facility, model and

manage the logical representation of the physical storage facilities (e.g. racking etc),

manage the stock within the facility and enable a seamless link to order processing and

logistics management in order to pick, pack and ship product out of the facility.

Warehouse management systems can be stand alone systems or modules of an ERP

system or supply chain execution suite.

The primary purpose of a WMS is to control the movement and storage of materials

within a warehouse you might even describe it as the legs at the end-of-the line which

automates the store, traffic and shipping management.

In its simplest form, the WMS can data track products during the production process and

act as an interpreter and message buffer between existing ERP and WMS systems.

Warehouse Management is not just managing within the boundaries of a warehouse

today; it is much wider and goes beyond the physical boundaries. Inventory management,

inventory planning, cost management, IT applications & communication technology to be

used are all related to warehouse management. The container storage, loading and

unloading are also coved by warehouse management.

Warehouse management today is part of SCM and demand management. Even

production management is to a great extent dependent on warehouse management.

Efficient warehouse management gives a cutting edge to a retail chain distribution

company. Warehouse management does not just start with receipt of material but it

actually starts with actual initial planning when container design is made for a product.

Warehouse design is also part of warehouse management. Warehouse management is part

of Logistics and SCM.


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Warehouse Management monitors the progress of products through the warehouse. It

involves the physical warehouse infrastructure, tracking systems, and communication

between product stations

Warehouse management deals with receipt, storage and movement of goods, normally

finished goods, to intermediate storage locations or to final customer. In the multi-

echelon model for distribution, there are levels of warehouses, starting with the Central

Warehouse(s), regional warehouses services by the central warehouses and retail

warehouses at the third level services by the regional warehouses and so on. The

objective of warehousing management is to help in optimal cost of timely order

fulfillment by managing the resources economically. Warehouse management =

"Management of storage of products and services rendered on the products within the

four wall of a warehouse"

Warehouse management system helps companies like yours:

Reduce inventory 5 to 20%

Increase labor productivity 15 to 40%

Improve shipping accuracy 2 to 5%

Increase inventory accuracy 99+% at location level

Boost perfect order rates

Reduce direct operating costs and increase overall revenue


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NEED FOR WAREHOUSING

Warehousing is an integral part of the logistic system. In the entire supply chain network

the storage and handling of the products takes place primarily at the nodal points.

Warehousing is often called as transportation at zero kilometers per hour. The need for

warehousing arises because it is practically impossible that a product is consumed

immediately after it is produced. Such a situation can arise if there is a perfect supply and

demand co-ordination with a perfectly reliable transportation system, which can deliver

the goods with zero delivery time. It is impossible to archive such a situation and

therefore firms keep stocks to improve supply- demand co-ordination and to lower

overall costs. To keep the stocks, the warehouse as well as material handling system is

needed

ROLE OF WAREHOUSING

A Warehouse is used for four basic reasons

1. To economize on production and transportation costs

2. To co-ordinate supply and demand

3. As a help in production

4. As a help in marketing


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ECONOMY IN PRODUCTION- TRANSPORTATION COSTS

The economies of scales achieved in the high volume of production adequately

compensate for warehousing charges, which are consider as additional costs .The higher

the production volume, lesser is the manufacturing cost per unit. This saving is much

more than the warehousing and transportation charges and therefore warehousing helps to

economize on production and transportation charges.

SUPPLY AND DEMAND CO-ORDINATION:-

Warehousing enables the companies with highly seasonal production to co-ordinate the

supply and demand effectively. The best examples are air conditioners, water coolers.

Diwali Gifts etc. These companies tend to stockpile production output in order to meet

the surge in demand during peak season.

PRODUCTION NEEDS:- Sometimes warehousing is a part of production process. For

example fruits like mangoes and banana need to be matured before they are consumed.

Such products are kept in the warehouse for ageing. Also warehousing is used for

delaying the payments of duties and taxes. The importer may not want to pay the import

duty immediately. He may want to secure customers for his cargo before he takes the

delivery of cargo. In such case the goods are kept in custom bonded warehouse and the

importer can get the goods released as per his convenience.

MARKETING NEEDS:- I n todays business environment, the speed of delivery is

crucial, buyers gives minimum possible lead time to seller and the seller who promise to

deliver the fastest wins the order. To achieve this, the goods are kept in readiness near to

the point of consumption. The improved customer service results in the increased sales.


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FUNCTIONS OF WAREHOUSING

The basic warehousing functions traditionally have been considered to be as follows:

1. receiving;

2. identification and sorting;

3. dispatching to storage;

4. placing in storage;

5. storage;

6. retrieval from storage;

7. order accumulation;

8. packing;

9. shipping

10. Record keeping.

In designing warehousing systems it is desirable to maximize :

1. space utilization;

2. equipment utilization;

3. labor utilization;

4. accessibility of all materials;

5. Protection of all materials.

TYPES OF WAREHOSING

Warehouse may be classified on the following criterion:

1. Ownership

2. On the basis of services

Ownership: in general in Asian perspective, warehouse may be classified


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Into three categories

(a) Government: This is, owned by government of countries or state to hold materials

for their own use viz., ordnance depots, ammunition depots, depot mainly owned by

the armed forces

(b) Public warehouse: A public warehouse-like owned by port trust, railways etc.These

are also retend out to public on a contractual basis for a definite period of time,

depending upon the need of licensee.

(c) Private warehouse: In fact, these days private warehouse of the manufactures are on

the decline. Private warehouse comprises warehousing facilities operated by and

owned or leased by private company handling its own goods.

2. (a) Bonded warehouse: It is licensed and authorized by the custom authorities for

storing of goods till import duty due on it is paid-owned either by the government

or private parties.

(b) Cold storage: It is another type of warehouse which provide facility to the perish

ability of goods against payment of a storage charge for the space utilized by different

parties.

(c)Distribution warehouse: These warehouses are generally located near to the market

owned or leased by the manufacturer to stock their final products for immediate

supply to the market.


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(d)Buffer storage warehouse: These ware houses are built at strategic locations with

adequate transport and communication facilities and goods are stored in huge

quantities and further transmitted to distribution warehouse.

(e)Export and Import warehouse: These warehouses are located near ports from

where international trade is undertaken. They provide transit storage facilities for

goods awaiting onwards.

OBJECTIVE OF THE STUDY

`THE MAJOR OBJECTIVE OF THE STUDY IS TO FIND OUT HOW THE

WAREHOUSE MANAGEMENT SYSTEM IS CARRIED OUT IN GATI

LOGISTICS.


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RESEARCH METHODOLOGY

The research was carried out by collecting data from secondary sources.

Secondary data were collected from reliable sources such as past record various book and

website.

While carrying out our research I had gone through following steps.

1) Defining the problem and research objective

As I have chosen the topic warehouse management system of GATI

LOGISTICS

I have clearly defined the background problems and research objective

2) Developing of research plan before carrying out the actual research plan

was formulated.

SECONDARY RESEARCH:

A wide theoretical study was done in order to get the necessary information. It was done

by going through books.

A lot of matter is collected by me through internet, visiting libraries etc


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COMPANY PROFILE

HISTORY

Gati Corporation was incorporated on April 25.1995 with the registered office at

Secunderabad with a paid up capital of Rs.7000/- consisting 700 Equity Shares of Rs.10/-

each. The company received the certificate for commencement of business on May 5,

1995. The name of the Company was changed from Gati Corporation Limited to Gati

Limited with affect from October.10,.2000.GATI Desk to Desk Cargo was launched as a

division of Transport Corporation of India Limited(TCI) on November 14th, 1989. In the

year 1998, Gati Desk to Desk Cargo and Shipping divisions of TCI were transferred to

Gati Corporation Limited with effect from 01.04.96 pursuant to the Scheme of

Arrangement approved by the Hon'ble High Court of Andhra Pradesh. Pursuant to the

Scheme, Gati allotted 2501899 equity shares of Rs.10/- each to the shareholders of

Transport Corporation of India Limited on 12.09.1998.

Gati has over 4000 vehicles on road covering 603 out of 611 districts, mechantronic

warehousing facilities of 2 million sq. ft. across all major cities thus offering truly world

class single window solutions to the customers. Be it flexible point-to-point distribution

solutions or complex end-to-end integrated logistics solutions or supply chain

management, Gati does it all with great effectiveness and reliability, and enjoys the trust

of a large customer base.

In 1996, Gati tied up with Indian Airlines to facilitate speedy delivery of shipment with

the launch of the co-branded (Air India Gati ) air cargo and courier service. This lethal

combination demonstrates the value the customers can derive from the synergies of the

two majors in air and surface networks.

Gati was also the first to run the millennium parcel express train in October 2001

between Mumbai and Kolkata with 10 VPUs. The initiative to run a parcel express train


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between KYN (Mumbai) and NGC (Guwahati) was again taken by Gati - this is a classic

example of PPP (Public Private Partnership).

The Gati advantage of seamless connectivity across air, road, ocean and rail has resulted

in a plethora of offerings to the customer unmatched in the industry. Besides having a

strong network in India, Gati has a strong market presence in the Asia Pacific region and

SAARC countries. Today, Gati has offices in China, Singapore, Japan, Dubai, Hong

Kong, Thailand, Nepal and Sri Lanka and has plans to foray into other markets.

Gati's shipping division, Gati Coast to Coast based at Chennai, with two decades of

experience in the industry has many firsts to its credit: first in operating direct service to

Yangon; first in operating a direct container service from Ranong Port, Thailand; and the

first in operating direct container service from Penang, Malaysia.

Having started out with a liner service of 4000 DWT, Gati Coast to Coast today has a

tonnage of 43,581 DWT and a fleet strength of six vessels

MV GATI I: 4821 DWT

MV GATI SUVIDHA: 6084 DWT

MV GATI ZIPP: 6779 DWT

MV GATI PRESTIGE: 8161 DWT

MV GATI MAJESTIC: 10736 DWT

MV GATI PRIDE: 7000 DWT

Gatis business model is well aligned with the customers' need, which is why the core

businesses have grown to meet the evolving needs of the customer, and this has resulted

in consolidation of services and in the development of core and critical infrastructure,

thus propelling Gati to the forefront in the logistics segment


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INFRASTRUCTURE FACILITIES AND UTILITIES

Infrastructure:

Branches:

Gatis Network of branches/offices covers the entire country. It has five Zonal Offices,

61Express Centers, 109 Depots, 160 Franchisees, 54 Customer Convenience Centers, 20

Surface Transit Centers, 19 Air Transit Centers and 5 Rail Transit Centers. The booking

and delivering is transacted through the branches. The Zonal Offices control the

administrative activities and hubs operate routes through which the cargo is moved from

one place to another. GATI has its network Spread over 580 districts out of 590 districts

of India and has 3827 Extra Service Stations (ESS).Office Locations across India and

Abroad.

Gati has a nation -wide network of branches and offices and a presence in 580 districts

out of the.590 in India. The company serves 3,827 locations through its branches and

extra -service centers (ESS). The company also has its offices in Sri Lanka, Singapore

and Nepal.

Fleets strength of over 1350 aerodynamic LCVs, for in-city pick up and delivery, no. of

vehicle snowed by the Company 107 and no. of vehicles outsourced by the Company are

about 640, 30.containerized HCVs, refrigerated vehicles and tractor-towhead which

provide the cutting edge to the business. As and when the need arises, the existing

Facilities of the company can be enhanced depending on the demand, by way of setting

up extension counters, taking trucks on hire etc. With the present infrastructure, GATI is

delivering Cargo in over 580 districts.

(1) Marketing & distribution Management

Gati Limited, one of the major players in express cargo management and supply chain

management and distribution solutions, is today transcending borders and reaching new

pastures. It has a reach of 580 districts out of the 590 in India .Gatis marketing strategy


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aims at attracting new customers and retaining old ones. A series of activities are

involved in order to serve the customers and make them long term clients of Gati.

Gati has built the brand over a period of years, with active participation in the media,

exhibitions and other promotional activities on the warehousing front; Gati is

transforming its existing warehouses into modern express distribution centers.

The gati@web was launched for a smoother functioning and has ensured effective and

faster means of communication among all Gati offices and real-time information for the

benefit of its customers

(ii) Business Strategy

The company's vision and mission is to be the leader in Asia-Pacific, and a globally

preferred provider of India-centric supply chain services and solution to delight

customers with quality service by setting new trends through innovation and technology.

The Company proposes to be the preferred Organization for all its stakeholders and are

responsible corporate citizen with unwavering commitment to environmental protection

and conservation.

The Company aims to be one-stop service provider in logistics solutions, focusing on

warehousing and infrastructure, Express Distribution Centers, Central Distribution

Centre, Information technology and human resources.

The major focus will be on setting up state of the art warehousing mechantronics

facilities in all major cities and locations close to markets and creating infrastructure to

handle the increased volume of business and provide customized solutions to the

customers.

The company is also developing automated EDCs/CDC in metros and mini-metros for

taking advantage of increased business in logistics segment. The establishment of the

EDCs will result in reduction of operational cost and manpower and will improve

handling and trans-shipment. Besides, it also reduces damages and pilferages.

Information Technology:


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Gati has implemented a state-of-the art web based ERP calledgati@web, comprising

GEMS (Gati Enterprise Management System), a custom-developed application, Oracle

CRM and Oracle Financial. This is completely a centralized and on-line application. In

order to connect to this application, 120 plus locations have been networked through

lease lines and VSAT. This implementation has helped Gati work pro-actively and also

provide a very high level of customer satisfaction through reverse flow of information

through the

Website, e-mail, SMS and toll free number.Gati is in the process of setting up an alternate

site (Disaster Recovery Site) for business continuity as the entire IT operations depends

on the Central Server at the Data Center at Head Office, Secunderabad. Also, as a logical

extension, Gati will be implementing a Business Intelligence and Data Warehouse

Solution which apart from providing other benefits will give a dashboard facility on Key

Performance Indicators (Kepis) to the senior management

Human Resources:

The Company has launched a series of innovative HR- development initiatives including

e-HR, which gives complete emoluments and related information of every gati.The

company has strength of more than 2000 trained manpower that is committed to the

growth of the organization. The training continues to be the thrust area of HR.

Competition

The Company has three divisions viz., Cargo, Shipping and Fuel stations, which in itself

is a unique structure and cannot be compared with one particular industry or company.

There are companies like Blue Dart, DHL, etc. which are also in cargo business, but

when compared, 70-80% of their turnover is from the courier business and 20-30% from

the cargo business.

Whereas, Gatis turnover is 70% from logistics division, 7% from shipping division and

23% from petrol Fuel stations division. Out of 70% of logistics division, 98% comes

from cargo and rest 2%from courier business. Hence, these companies are not directly

comparable to GATI.


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The Company faces competition from small time regional players on account of lower

pricing policy implemented by them, but they are unable to match the standards of Gati in

services. They give the competition on regional basis only because Gati has network

covering 580 districts and 3827 locations delivering anything anywhere and is expanding

towards covering all districts in India. The Company's strength is its network,

information technology, trained manpower and infrastructure.

Competitive strengths

A Company with rich experience and good reputation in Cargo Management.

Team of Professionals with rich experience at various levels in the Company.

Network reaches up to 580 districts out of 590 districts in India.

Tie up with Indian Airlines, for assured space in specified routes - only one of its kinds in

the domestic express Cargo Industry.

IT initiative - implementation of gati@web (ERP) - for cost reduction, better information

Management and enhancing customer satisfaction - this will enhance competitiveness.

Custom Brokerage/Clearing facilities.

The shipping division of Gati Ltd. has launched a direct container service between

Chennai and Yangon, which is beneficial for the import of items that are frequently

traded between Myanmar and India. Insurance

The Company has 33 properties situated across the country. All the Properties are

insured. The insurance premium payable on the above properties including the service tax

is Rs 108854

VISION and MISSION:

Be a globally preferred provider of India-centric supply chain services and Solutions and

a leader in the Asia Pacific region Delight customers with


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Quality service by setting new trends through innovation and technology the most

preferred organization for all stakeholders be a responsible corporate citizen with

unwavering commitment to environmental protection and conservation

MILESTONES OF THE GATI

First logistics company in India to be awarded ISO 9001 certification

In 2003Gati was voted The Best Logistics Company and bagged the Frost & Sullivan

Voice of Customer award

Gati's chief information officer, GS Ravi Kumar, was given the Champion CIO award for

the less than Rs. 1000 crore category of the Enterprise Connect Award- 2005

Gati was awarded the Amity HR-excellence award in 2005

Bagged Awarded the 'Best Logistics Partner' by HCL Info systems for 2005 -2006

Bagged Indira's Super Achievers award for training and development in Gati 2005

Awarded the 'Best Logistics Partner' by HCL Info systems for 2005 -2006

Awarded Consumer Super Brand status in the logistics category for 2006-2007

Nominated for NDTV ' Business leadership Awards ' 2006 in logistics category

SERVICES IN INDIA

Over the last decade, Gati has developed competence in ensuring customer centric cargo

management solutions. It is the only cargo management organization in India to make an


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effective use of multi-modal connectivity, employing all four modes of transport - Road,

Air, Rail & Sea. It has 5 rail transit centers, 9 Air Transit Centers and 21 surface transit

canters across the countries which together cover a vast web of 3.20 lakh kilometers daily

with a fleet of nearly 2000 surface vehicles. This is supported by a deep and wide

network that has enabled access to the remotest corners of the country.

WAREHOUSE MANAGEMENT SYSTEM OF GATI

Gati's web-based warehouse management system provides both functionality and

flexibility for customers to manage warehouse operations. The web - based WMS can be

updated online thus allowing customers a real - time picture of their inventory. The WMSgives precise, detailed, real - time information about every aspect of customer operations.

The WMS application has the functionality to take care of multi - company / multi -

location capabilities. And, the multi - warehouse system has been designed so that every

warehouse can write its own rules.

The central focus is the powerful inventory control and management system - making the

management of diverse inventory holdings less complex and more organized

.

The web - based WMS has resulted in:

Improved inventory accuracy

Decrease in order processing time

Improved customer service levels

Elimination of put away and picking errors

Less return

Reduced shipping errors

Capacity utilization


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Mumbai, June 8, 2006 - Cisco, the worldwide leader in networking for the Internet,

today announced that GATI, the leader in the express cargo industry in India, has selected

Cisco-powered integrated Wide Area Network (WAN) that connects over 400 locations

(120 Locations through Terrestrial Links and the remaining through Remote Access

Server (RAS) or through Internet) across the country for running centralized web-based

applications.

Speaking on the deployment, G.S.Ravi Kumar, Chief Information Officer, Gati Limited,

said, "Our aim was to enhance our capability for delivering nationwide express cargo

services and offer value-added services to our customers at competitive prices, like online

tracking and real-time reporting of the progress of shipments along the delivery cycle.

With the objective of consolidating our information resources and improving inter-office

connectivity, we were looking for a technology partner who could build an integrated

voice and data network that was robust, scalable and secure."

"After rigorous evaluation, Cisco emerged as the vendor-of-choice for deploying 'Gati

Net'. We felt that Cisco was one vendor who could provide an end to end solution for

connectivity and network security. Cisco products are highly reliable and the support

offered by the partner is very good. And a key benefit is that all these products coming

from a single vendor, which helps in integration and management and gives better return

on investment", he added.

The 400 Gati office locations were distributed under 11 Major Concentration Points and

nearly 120 locations would connect to these Concentration Points. All other locations

connect through Remote Access Server (RAS) or through Internet to the Central Servers

for carrying out online transactions. All the concentration points connected through a

VPN service provider.

In addition to data traffic, Gati Net also runs the Voice over IP (VOIP) solution over

Cisco IP Phones and Call Manager for connecting domestic as well as international

locations. A key constraint that Gati faced was that most of its physical locations were

situated outside the city limits where it was difficult to get terrestrial links as well as

maintain high uptime. With the new solution, Cisco IP phones are being used in remote

areas over Vast. Besides easing inter and intra office communications, the Cisco IP

Phones also facilitate the Central Help Desk for Gaits internal customers.


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Being an early adopter of technology, the organization implemented a web-based ERP

solution in 2003, Gati Enterprise Management System (GEMS) - that runs on a

centralized architecture and ensures seamless information flow across all locations. The

Cisco network integrates all key solutions like GEMS and CRM, and supports other

applications such as the Warehouse Management System, Centralized Mail Server (Lotus

Notes) and an interactive customer portal.

Commenting on the deployment, Jangoo Dalal, Senior Vice President-Enterprise, Cisco

India & SAARC said, "Gati's primary requirement was for setting up a Wide Area

Network for running online applications - and the VOIP solution was an additional

benefit in Cisco's proposition. We are happy that Gati chose Cisco's IP-based network

solution that not only fulfilled all of its current requirements but also set the framework

for network up gradation and expansion in the future."


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SCOPE OF THE STUDY

The research covers a study of existing system of warehouse management at GATI

LOGISTICS .The warehouse management is based on principle of Selective warehouse

management techniques and material handling equipment and later on actually

conducting an analysis on the warehouse management.

The facts obtained were compared with the existing system of the company

The objectives were to point out the drawbacks in the existing system of the company

SUGGESTIONS

1) Appoint the skillful operators to operate the system correctly who are well aware of

computer knowledge and system.

2) Maintain the daily records of the result obtained by each in separate

Files

3) Always check the system regularly.

4) If a system gets failed, contact to experts immediately.

5) While repairing the system, maintain data manually

6) Connect the system to the SAP as early as possible to use 100% efficiently


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7) Lead times of the tools are fluctuating, so as to maintain constant lead-time.

8) Take corrective action whenever requires to monitor warehouse system.

9) Keep inter department relations regularly and optimizes form.


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CONCLUSION

It is concluded from the project that the warehouse management one of the major areas

where every organization should have to provide due importance. As by using scientific

warehouse management system of an organization can effectively reduce the investment

in warehouse and uses the fund effectively. Gati is one of the largest logistic providing

company in India. It is well equipped with modern tools and technology to meet present

day requirement. The eminence of gati as a logistic company can be felt as it conquered

about one third of the entire logistic market of India. It is attired with sophisticated

computerized system like ERP and SAP as per the requirement of the branches. The

warehouse management system became very efficient by the use of such software. There

is no space for human error after implementation of these gizmo. The sluggishness of the

warehouse system has vanished away and it is working at a good pace now a days.


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BIBILIOGRAPHY

TEXT BOOK OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

: D.K. AGRAWAL

LOGISTICS MANAGEMENT

: RAJIV ASERKAR

WWW.WIKIPEDIA.COM

WWW.TOOLBOX.COM

WWW.INVENTORY.COM

WWW.GATI.COM
http://www.wikipedia.com/http://www.toolbox.com/http://www.inventory.com/http://www.gati.com/http://www.wikipedia.com/http://www.toolbox.com/http://www.inventory.com/http://www.gati.com/


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faisal 4 sem project report

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