Thesis Archive

A system study on the warehouse operations of IDS logistics (Philippines), Inc. (2008)

Heidi Kate N. Bonifacio
Rosa Rio R. Edillo
Rhoda A. Salas.

Abstract:

-IDS Logistics (Philippines) is concerned with the business of providing contract logistics, warehousing and supply chain management services to customers throughout the Philippines. The area of concern for this study would be the Warehouse Department of IDS Logistics located in IDC Bldg. E. Rodriguez Jr. Ave., Ugong Norte Quezon City (QC) wherein various products of different principals like Proctor & Gamble (P&G), Mandom, Gillette and 3M are stored.

The inventory accuracy of the said warehouse was not able to meet the 100% target set by Key Product Indicators (KPIs) of the company indicating the occurrence of variance costing the company a total of Php45,724,546.82 for negative variance due to the 656,785 units of discrepancy found in the warehouse and the system records.

Using Why-Why and Failure Mode and Effects Analysis (FMEA) to determine the root causes of incurring variance from wrong pick which is further categorized into three parts: wrong serve, wrong barcode and short/over issuance. Evaluating each category, five causes were identified namely: different locations assigned for specific customers, inadequate pick list design, product placement for pallet utilization, inadequate lighting and unfamiliarity and confusion caused different bundling quantities of the products.

The new system is proposed to address the identified causes is composed of assignment of pickers to pick only on one location (1601 or 1608), regulating /controlling the method of releasing pick lists, redesigning the pick lists, changing of layout and changing of lights.

From the cost benefit analysis, the total costs needed to implement the proposed system was compared to the benefits the company and a net savings of Php 236,273.52 was obtained. The payback period for the said investments will happen shortly after 7 months from the implementation of the proposed system. The solutions were found to be feasible and could be implemented within three months.

Adviser:

Mr. Bryan Gobaco
[email protected]