Supply chain, Infrastructure & Logistics Specialists. A Presentation by ARIF A. SIDDIQUI Founder & Director Coign Consulting

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1 A Presentation by ARIF A. SIDDIQUI Founder & Director Coign Consulting

2 DISCLAIMER SMART Warehousing should not necessarily mean Heavy Capital Expenditure. CHALLENGE ACCEPTED. - Coign Consulting

3 *Image from Coign Consulting s Project Gallery

4 3PL Scenario in India % Currently, India spends around 14.4% of its GDP on logistics and transportation as compared to less than 8% spent by the other developing countries. The logistics firms are moving from a traditional setup to the integration of IT and technology to their operations. The industry as a whole is moving to the positon where they (dream to) provide end to end supply chain solutions to their customers. The competition to the organized players is from the unorganized markets. The market, as a whole, is highly fragmented and dominated by local logistics service providers. *Source :

5 3PL Scenario in India % Due to Government policies with respect to Infrastructure development, FDI in logistics and the implementation of GST, it is estimated that the Logistics cost will be reduced by 20.0%. The analysts forecast that the Third-party Logistics market in India will grow at a CAGR of 21.16% over the period Because of the above initiatives, the 3PL logistics market in India is expected to be worth US$ billion by [Estimated market size in 2016 USD 140 Billions] The warehouse market in India is expected to grow at a CAGR of 10% whereas freight forwarding market is expected to grow at a CAGR of 12.0% till *Source :

6 *Image from Coign Consulting s Project Gallery

7 Our definition of SMART

8 SMART Location & Facilities 1. Geographically well positioned 2. A Building with proper Approvals and Certifications 3. An Infrastructure with proper External Accessibility 4. Availability of properly functioning Services 5. A Building with quality Infrastructural element Specifications & Flooring

9 *Image from Coign Consulting s Project Gallery

10 SMART Layout Designing the layout of the warehouse in line with the operations to be carried out in the facility (post detailed study of the Operations process) including Warehouse office and support Services. INTERNAL LAYOUT - Maximum capacity utilization Space optimization Throughput & Process integration to Physical layout Lean & Coordinated Man & Material movement Avoidance of Cross-traffic and bottlenecks Provision of Buffer areas between process steps Scalable and Sustainable Layout designing Efficient Scrap management *Image from Coign Consulting s Project Gallery

11 SMART Layout EXTERNAL LAYOUT BASIS Throughput analysis of vehicles Gate-In Process Estate road widths Pedestrian walkways and car parking facilities Truck terminals Requirements for parking / queuing of executive vehicles Common Facility Centers *Image from Coign Consulting s Project Gallery

12 *Image from Coign Consulting s Project Gallery

13 SMART Quantification PRODUCTIVITY RECEIVING PUT AWAY STORING PICKING & PACKING DISPATCHING QUALITY COST CYCLE TIME UTILIZATION

14 SMART Quantification Output of Work : Input of Resources. - Productivity Indicators of Productivity i. Output (Transactions / Time) ii. Capacity Utilization iii. Supply Chain Profitability Productivity is not about cutting Cost. Productivity is about continual improvement. Productivity = Efficiency + Effectiveness

15 What does not define Productivity? PERFORMANCE PRODUCTION PRODUCTIVITY ONLY LABOUR PRODUCTIVITY

16 The Right way + 1. Bought a Reach Truck 2. The Productivity hasn t gone up yet?! 3. What am I missing?! 1. Bought BOPTs to feed the Reach Truck 2. Now the RTs performing at its highest Efficiency

17

18 SMART Process is the seamless integration of Man and Material to the Infrastructure such that it fulfills the processes with high efficiency and effectiveness.

19 SMART Processes 1. Process Analysis & Optimization i. Manual Processing ii. Automated Processing 2. Selection of Storage System or a combination of Storage Systems 3. Selection of Material Handling Equipment or a combination of Equipment 4. Building Intelligence

20 SMART Attitude Using the Cube efficiently Avoiding One Size Fits All approach Avoiding Non-Value added tasks Inconsistencies Resource Overburdening Doing more in less or same space Having enough Dock doors Providing adequate space for accumulation and storing at the Docks Designing furniture ergonomically for speedy operations & optimal utilization of time Maintaining flexibility in Operations and Layout Minimizing congestion and interference

21 SMART Process Furniture PACKAGING STATION QUALITY CHECKING STATION *Image from Coign Consulting s Project Gallery

22 *Image from Coign Consulting s Gallery

23 BEFORE AFTER Turning radii Gates Staging Area 2 Side Docking Vehicle & Human Entries Parking & Docking External connectivity *Image from Coign Consulting s Project Gallery

24 SMART Benefits % % ORDER FULFILMENT RATE DOCK TO STOCK TURN AROUND TIME HUMAN RESOURCE DEPLOYED DOCK OCCUPATION TIME

25 SMART Benefits INCREASED AVERAGE MHE SPEED % USE OF KERB STONES AT DOCKS MINIMAL CRISS-CROSS OF MAN AND MATERIAL SEPARATION OF INWARD AND OUTWARD STAGING AREA

26

27 Mechanization VS Automation MECHANISATION Conveying systems which require human intervention and cannot function intelligently on its own. AUTOMATION Mechanization with Intelligence.

28 SMART Scanners, Sorters & Mergers Packaging Station Conveyors Consolidation Stations Spiral Conveyors for backup Colour based Bin Sorters Consolidation Long Span Shelves QC Stations Consolidation Stations *Image from Coign Consulting s Project Gallery

29 Telescopic & Spiral Conveyors and Sorters *Source :

30 SUMMARY India is rapidly evolving towards world class infrastructure, in attitude and actions. The ultimate warehousing productivity is also determined by its geographical positioning. The intra-warehouse layout should always be planned keeping current and future expectations from the warehouse in mind. Process flows should be smooth and ergonomic in nature. It is important to continually quantify and enhance the performance standards. Last but not the least, understanding that Automation is not always about heavy expenditure towards complex artificial intelligences.

31 That some achieve great success, is proof to all that others can achieve it as well. - Abraham Lincoln

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