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Operator logistical Salvadorian Case Solution & Answer

Operator logistical Salvadorian Case Solution

Introduction

Company

Operator Logistics Salvadorean (OPLS) founded in 2004, a third-party logistics company (3PL). Imports, packaging, warehouse control, complementary facilities, and delivery were among the services offered by OPLS. Operations, manufacturing and efficiency, ordering, communications, back office and fleet were among the company’s numerous operating sectors. It employed 154 full-time staff and 270 outsourced associates in total. The largest warehouse in Santa Luca DC was split into the 5 parts, 1 for each of the product family look (exhibit 2).The OPLS had to work with a lot of different product families that couldn’t be stored together. To prevent the cross-contamination, the agricultural products, such as: wheat flour, should be stored as far away from the detergents and other cleaning supplies as much as possible.Separating storage parts was also achieved in order to increase the capacity’s density. Section five, for example: contained toilet paper, which could be kept without shelves due to its light weight and vast length. Receiving merchandise (goods-in), put-away, packaging, order picking, and delivery were all main activities at this distribution center.

Problem Statement

Mr. Zablah, the general manager, had to make shifts in corporate practices in 2012 in order to outsource the Christmas for the state’s biggest grocery chain. This choice would necessitate receiving 80 containers over the course of three months, holding 4,000 SKUs, and supplying 87 locations. To that end, Mr. Zablah directed the process Supervisor to study into the worldclass efficiency measurements& storage practices and compare them to OPLS’s. He also requested that the Operations boss present warehouse alternatives for running the Christmas service. Mr. Zablah have to classify the growth prospects &select a warehouse using this basic information. According to Zablah, the warehouse options must have some versatility in terms of both storage space and lease duration.

Critique

Analysis of Current Strategy

Warehouse storage management process have several stages:

Receiving Goods

Santa Lucia DC, the factory, has a monthly capacity of 50 barrels. Because of its seven docks, it can also accept 40-foot containers. Its warehouse pre-receiving procedure includes the client contacting the warehouse after the shipment is cleared from customs, and then the warehouse is set up for incoming material. The inspector inspects the container when it arrives.

Compliant goods are stored in their designated areas, while non compliant products are placed in a temporary location until they can be picked up for replacement or refund. The FIFO inventory approach is used to have a better understanding of OPLS. A dedicated area was assigned to a commodity that required value-added services, such as: labelling or special assembly.

Put-Away

OPLS’ top management chose branch’s head to be the in charge of SKU’s storage location assignment. Counterbalance lift trucks carried pallets directly from the container to their target segment, while loads arriving on the pallets belonged to the same area of storage.Based on the form of pallet rack that was to be used, a range of equipment were used. Pallets, for example, were mounted on the 2ndfloor of the “double-depth” shelving, with the assistance of a forklift with a double-reach. Put-away staff followed OPLS’ FIFO resource management strategy to the letter, moving older pallets to lower shelves and new pallets to higher shelves.

Storage

The storage at the Santa Lucia DC was split into five parts, each housing a different product family.

Consumer goods with a high turnover rate, such as: coffee and sweets, were housed in the Zone 1.

The groceries, condensed milk,sweets, liquors, candles, bottled water, beers, & pasta were allocated to Zone 2 because it has a lower turnover rateas compared to Zone 1.

Zone 3 contains materials that are susceptible to contamination, such as: wheat byproducts, i.e. rice, biscuits, and cereals.

Zone 4 has a stringent plague prevention scheme in place, & a barrier between zone-3 and zone-4 to avoid crosscontamination of the other materials, such as: detergents &lubricants.

Finally, zone-5 contains the high volume objects like the toilet-paper that needs a significant amount of space as well as other big items, like: washing machines, refrigerators, & other household appliances.

Order Picking

At OPLS, the order picking method for each delivery route was built on a single order. The delivery path delegated to suppliers was used to classify the orders from manufacturers. Order pickers also completed a majority of the bill for (SKUs) that were not shipped due to stock outs.Re-supply was the responsibility of the imports department, and forecasts were made based on turnover statistics, seasonality characteristics and replenishment periods.  This information is used to position orders with the suppliers of each OPLS customer……………………….

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