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Imdad-Logistics 4PL Logistics Consultancy in the Middle-East. Services: Logistics Management Logistics Audit Logistics Business Plans Offices: Riyadh (Servicing the Gulf Region) Beirut & Erbil (Servicing the Arab Levant & North Africa)
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IMDAD Logistics
5 Stages Logistics Cooperation Proposal
This Plan emphasises on warehousing, for Freight Forwarding and Distribution please contact us on:
www.imdadlogistics.com
Outline• Introduction to Logistics Management• Problems in Standard Warehousing• Solution: Modern Warehousing Practices• Proposed Logistics Cooperation Plan• Plan in 5 stages of Stage1/Pilot Project• Key Benefits• Time Table (All Stages)• Frequent Q & As
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Intro to Logistics Management• Part of the Supply Chain MGT• Manages the flow of Goods and Information
from sourcing raw materials to end consumer• This presentation highlights the Warehousing
part of Logistics Management
WarehousingManufacturing ConsumerRetailerSupplier
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Problems in Warehousing• Under Utilization of Space, Equipment and
Manpower
Results: • Requiring additional warehouse space, equipment
and manpower (Increase in Operating Cost)• Increases in order fullfilment times leading to
delays in delivery (Unsatisfied Customer)
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Problems in Warehousing• Under Utilization of Space, Equipment and
Manpower
• Low accuracy in Inventory Balances
Results: • Low fullfilment rates (Unsatisfied Customers)
• Increase in Inventory Levels to insure stock availability (Higher storage cost and Cash Flow problems)
• Low Accuracy = Real Losses reflected in P&L
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Problems in Warehousing• Under Utilization of Space and Manpower• Low accuracy in Inventory Balances• Improper Inventory Cycle & Lack of
Visibility
Results: • Stock Expirations (Increase in Damage Cost)• Servicing Customers with Near Expiry items, lower
shelf age (Unsatisfied Customer)
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Solution:• Implementing Modern Warehousing
Practices:A combination of Expertise, Technology and
Management.Will be discussed in the Stage 1 of plan
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Logistics Cooperation Overview
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Logistics Cooperation Plan Overview• Stage1:
Pilot ProjectNo Additional investments in fixed assets or
manpower needed, being the implementation phase in 1 small warehouse after which the successful model will be generalized to all warehouses
Will lead to stage 2 only after its Deliverables are duly rendered
Will be described in details further on in this presentation
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Logistics Cooperation Plan Overview• Stage2:
Based on results from Stage1Successful model from Stage1 will be
generalized and implemented in all Warehouses.
• Stage3:Could start in parallel with Stage2Developing an In House (or partnership) Freight
Forwarding platform and becoming a prime customer/partner for a multinational FF network
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Logistics Cooperation Plan Overview• Stage4:
Setup for the Local Distribution systemManagement of the Fleet of vehicles and
related staff
• Stage5:Eventual goal of centralizing the logistics
activitiesMajor Investments will be required
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Stage1: Scope of Service• IMDAD Logistics will:
Introduce Modern concepts and Standards in Logistics
Prove Efficiency of a proper Setup of Logistics Management
• Does not Require any Fixed Assets
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Stage1: Deliverables• Implementation of a Clear Operational Cycle• Implementation of a WMS• Standard Reports providing full visibility• Introduction to Warehousing KPIs• Health & Safety awareness• In House training, Motivation, and Development
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Clear Operational Cycle• Deliverables:
Written ProcessesTraining and
Development of Manpower
Proper segregation of duties within the warehouse
• Elements of Cycle:
Receiving & Putaway Inventory & Quality
ControlOrder processing &
PickingLoading and Shipping
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Operational Cycle: Facility
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Operational Cycle: Receiving
PO: Purchase Order
ASN: Advanced Shipment Notice
RTS: Receiving Tally Sheet
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Operational Cycle: Putaway
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Operational Cycle: Control• Inventory and Quality Control• Insures stock accuracy
• Multiple Interdependent processes:Receiving & Putaway Quality
CheckCycle (PI), Full and Random
CountsOrder Picking Quality Check
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Operational Cycle: Order Processing• Order Processing is a key part of the
operational cycle, since it will
insure proper cycling of stock
• Available stock is allocated to
orders at this stage
• WMS helps tracking inventories following any inventory method of customer’s choice FEFO, FIFO& LIFO
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Operational Cycle: Picking
SO: Shipment OrderLoc: Location SlotDrop ID: Picked Pallet
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Operational Cycle:Loading & Shipping
DTM: Detailed Truck Manifest
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Warehouse Management System• IMDAD Logistics will provide Customers
a WMS Software• WMS will include functionalities to
support the concepts of Modern warehousing processes
• Possibility of Adding and Customizing Reports
• Possibility of Interfacing with existing applications (such as Accounting or ERP)
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Standard Reports• Receiving Summary Report• Receiving Discrepancy Report• Expected Receiving Report• Volume by Storer• Volume by SKU• Near Expiry Report• Shipping Discrepancy Report• SKU Transaction Reports
Ability to add reports on request
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Key Performance Indicators• KPIs are metrics used to measure
organizational performance
• Warehousing KPIs can cover the following Categories:
Operational Volumes Facility Utilization Manhour Utilization Operational Hours
Utilization
Productivity Activity Accuracy Customer Service Safety Resources
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Key Benefits Lower cost & More Satisfied Customers by:
Increased utilization of storage capacity Increased utilization of manpower & Equipment
Increased accuracy of Inventory BalancesLive visibility of Inventory BalanceReduction of Inventory Levels Improved stock cycles and diminished stock
expirations Increased order fulfilment ratesReduced order fulfilment times
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Time Table (All Stages)
Stage Description Implementation Period
1 Pilot Project 3 months
2 Other Warehouses 1 month for each
3 Freight Forwarding Department In parallel with stage 2
2 months setup
4 Organization of Distribution 3 months
5 Centralization of Logistics Activities Special Investments required
N/A
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Frequent Q&As:
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1. Q: How to make sure that the Logistics Organization Plan lead by Imdad will not be a waste of funds?A: The first Stage doesn’t require any Investment from the customer, and regarding the implementation cost Imdad will only start billing its first stage remuneration one month after start-up effective date after the first deliverables and results start showing.
2. Q: What is the added value of Implementing the plan?A: Visibility, Accountability & Quality is what could describe the most our plan value. Growth targets and development objectives should be built on solid basis and Logistics being the veins connecting the business structure, should be held healthy and efficient at all times.
3. Q: Is it a high maintenance plan?A: Quality always pays off, it will protect your inventory from damage, theft and errors keeping an almost perfect accuracy. Preventing losses resulted from such inefficiencies will cover all potential costs, not only the plan maintenance and support but the implementation cost as well.
4. Q: Does Imdad provide a post implementation support?A: 4PL and co investment in Logistics Development is the core mission of Imdad and that covers in addition to financing development the pre implementation consultancy in Logistics Development, Logistics and Organization Plans and Systems implementation and post implementation support and management.
THIS PLAN EMPHASISES ON WAREHOUSING, FOR FREIGHT FORWARDING AND DISTRIBUTION PLANS OR ANY OTHER INQUIRIES PLEASE EMAIL US ON:
Thank You
www.imdadlogistics.com