REPORT INTERNSHIP 2 GEMADEPT LOGISTICS

IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management HOCHIMINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF INDUSTRIAL ENGINEERING & MANAGEMENT REPORT INTERNSHIP GEMADEPT LOGISTICS Name: Nguyễn Phan Hoàng Minh ID: IELSIU18078 Advisor: Dr Nguyễn Văn Chung Ho Chi Minh city, Vietnam May/2022 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Acknowledgement It is an honor for me to be able to express my deepest gratitude towards our department’s administration as well as Gemadept Logistics for the provision of an internship at Gemadept Song Than in the warehouse in charge of supplying Mega Market My regards are gratefully sent out to Mr Pham Ngoc Tuan, acting supervisor of Mega Market warehouse, along with the energetic and supporting staffs for their utmost consideration, enthusiasm and encouragement during my memorable two-month internship Thanks to them, not only have I been able to completed my internship smoothly but I have also gained considerable amount of knowledge in the field of supply chain and warehouse management IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Tables of contents List of acronyms .4 List of definitions Introduction 1.1 Overview 1.2 Mission & Vision 1.3 Company Structure 1.4 History & Development .10 Purpose 10 Business description 11 3.1 Mega Market Vietnam 11 3.2 Receiving process of normal finished good 12 3.3 Receiving process of normal finished PAXD 21 3.4 Centralized Stock Management 23 3.5 Picking 29 3.6 Dispatching 33 Tasks 37 4.1 Roles & main jobs 37 4.2 Obstacles & suggestion 44 Analysis .44 5.1 Analysis 44 5.2 Possible solution 45 Conclusion 46 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management List of acronyms Acronyms Expansion GMD/CJGMD Gemadept/CJ Gemadept VSE Vietnam Stock Exchange ICD Inland Container Depot DC Distribution Centers SEA South East Asia MMVN Mega Market Vietnam WMS Warehouse Management System DN Delivery Notice FG Finished Good SCM MMVN Supply Chain Management DEC Data Entry Clerk GR Goods Receiving GRN Goods Receiving Note CW Centralized Warehouse EDI Electronic Data Interchange VAS Value Added Service NCR Non-Conformity Report DPT Department IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management List of definitions Word Definition Supplier Product owner PO Purchase Order Article MMVN’s product code MU MM Unit MU/case Total quantity packed in a case The quantity of product that are stored on Ti*Hi pallet with the correct standard (level X high) RF Radio frequency for receiving the number of quantity into system by barcode scanned BBXD Break Bulk X – Dock GMS MMVN’s system CS Centralized Stock BRS Blind Receiving Sheet PAXD Pre-Allocate X – Docking Where we sort out and arrange the goods Store lane after we combine the goods on pallet by store Put picking label The document showing the details of goods to be picked and distributed Stickers indicating the description of Pick label products (Article, PO No, Description, barcode work unit, Quantity dispense the store) IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management INTRODUCTION 1.1 Overview Gemadept was established in 1990, accompanied by our country in the logistics start-up and became one of the first three companies selected by the government to pilot equitization in 1993 Experiencing a development journey for over three decades ever since being listed on Vietnam Stock Exchange in 2002 and taking pride in being a leading enterprise making way for connecting Vietnamese goods to the world Gemadept, steadfastly and strongly rose to become the leading port and logistics operator in the country With the scale of dozens of subsidiaries and joint venture companies, especially with significant contributions to the country's economy, Gemadept has been honored in the Top 500 largest enterprises in Vietnam for many consecutive years and the Top 1000 for many consecutive years enterprises that contribute the most to the national budget, Top 10 leading logistics enterprises in Vietnam, Top 50 effective enterprises, Top 50 best listed enterprises in Vietnam voted by Forbes, etc After more than 20 years of development, Gemadept has been providing customers with all the best services including multi-modal transport, storage, handling, customs clearance, bonded warehouse for agricultural products, serving domestic FMCG, import/export goods as well as project cargo Warehousing and distribution services have been strongly invested by Gemadept Logistics They are operating the largest warehouse system in Vietnam with a total area of more than 100,000 m2 at Vietnam’s largest economic zones such as HCMC, Binh Duong, Ha Noi, Hai Phong Their warehouse system is equipped with modern and intelligent management software under international standards and located on an area of over 10,000m2 in convenient locations such as Hai Phong and Binh Duong IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Figure 1: Gemadept’s services IS047IU Engineer Internship 1.2 VNU-International University School of Industrial Engineering & Management Mission & Vision Figure 2: Pyramid illustration of Mission – Vision – Core values – Culture IS047IU Engineer Internship 1.3 VNU-International University School of Industrial Engineering & Management Company structure Figure 3: Organizational structure Figure 4: Coporate governance IS047IU Engineer Internship 1.4 VNU-International University School of Industrial Engineering & Management History & Development • 1995: Established Phuoc Long ICD, the first inland port in Vietnam • 2002: Officially listed on VSE • 2008: Invested the first private Container Port in Dung Quat, Quang Ngai Province • 2009: Grand opening of Nam Hai Port in Hai Phong • 2011: Initiated Logistics strategy, developed large-scale and modern DCs • 2015: Constructed cold-chain logistics project in the Mekong Delta – the single largest cold DC in SEA Launched Nam Hai ICD in Hai Phong • 2016: Established first joint venture of Automotive Logistics in Vietnam • 2017: Cooperated with CJ Logistics – the leading Korea Logistics Partners • 2019: Construction of Gemalink – the biggest deep-sea port in Cai Mep, Ba Ria – Vung Tau Province • 2021: Gemalink was officially put into operation after trial operation Purpose During the two-month internship, my position was an intern at the Mega Market Vietnam Warehouse sector in Distribution Center of Gemadept Logistics Song Than The main responsibility varied according to the role that was assigned in each week including data importing, document processing, product checking and stamping There are several objectives for participating in this internship: + Get to familiarize myself with the working culture, the physical flows of product and the digital information flows at MMVN Warehouse at Gemadept Song Than For instance, the operational model, how orders are processed, the inbound and outbound flow of product and information, etc + Broaden my understanding of the operational procedure in an actual warehouse as well as accustom myself to the working condition and software that are currently applied in one of the leading logistics services in Vietnam + Improve my soft skills such as teamwork, interpersonal communication, critical thinking and problem-solving skills through the working experience during the internship 10 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management list, if more goods need to be put on this pallet, it is obligatory to stick symbol “X” inside frame attached to dispatch label on pallet picking • Scanner must create pallet picking and attach on pallet of goods Then, Scanner will use RF machine to input data into systems via barcode on “picking label” (Type of pick is full pallet picking to use pallet picking “full pallet”, Type of pick is case and piece picking to use pallet picking “case picking” 3) Scanner must tally per “picking label” to finish their work 4) Mover will scan pallet ID by RF to know store number The system displays the store’ inventory locations Mover moves pallet for specific store to store lane and scan store lane number 3.6 Dispatching The procedure is established to cover the process of loading goods onto truck/container to ensure the right products get on the right truck with the right processes The responsibility of dispatching goods falls upon: • Warehouse Manager: responsible for the entire procedure of dispatching • Dispatch Supervisor: supervise outbound checker and controlling the loading process; using RF to scan Container ID into the system; seal truck • Outbound checker: check truck’s condition, count the physical products and compared with Pallet Picking ID, scan container ID into Truck ID by RF • Loader: responsible for loose loading 33 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Figure 23: Flow chart of dispatching process Procedure requirements 1) Outbound Checker receives “Dispatch Note” from Transport Team including information such as: Truck number, type of truck, driver’s name, load number, seal number and truck ID 34 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management 2) Outbound Checker will check truck’s condition base on Dispatch Note • If truck’s condition is good, Outbound Checker will dispatch goods • If truck’s condition is not good, Outbound Checker will inform to Dispatch Supervisor He will coordinate with Transport Department to solve this issue 3) Outbound Checker check goods base system on tablet, and check at store land to arrange suitable truck 4) Outbound Checker update load ID on tablet, including: Gate Number 5) Outbound Checker will move pallets goods from store lane to dock and record information on Dispatch Note 6) Outbound Checker checks quantity of physical goods and compares with quantity on Pallet ID base the quantity on Tablet’s system, record the quantity of Pallet Picking ID And, Outbound checker will check sensory goods • If the quantity of physical goods and information on pallet ID are not matched, outbound checker will inform to their supervisor He will coordinate with pallet Picking Team to solve the issue • If finding damaged goods, Outbound checker will inform their supervisor, make record and handover damaged goods to CS Team 7) Outbound Checker will guide Loader to stack goods into truck base on Unloading Process 8) Outbound Checker scan Pallet ID to truck ID by tablet scanner to record real time dispatch of pallet, The purpose is recheck CCTV if any problems/claims When truck is full, Outbound checker will adds total actual case and compare with total system case on tablet, recheck actual weight and CBM of truck/container 9) Outbound Checker closes Truck ID on tablet, handover document to Data Department and seal truck 10) Remark • Quarantine goods: Outbound checker receives information from QA department/Dispatch Team Leader, such as: Pallet ID, quantity’s carton, store number, truck number Outbound checker moves pallet quarantine goods from quarantine area to dock 35 IS047IU Engineer Internship • VNU-International University School of Industrial Engineering & Management Warehouse transfer goods: Outbound checker receives information from Data: Load number, quantity’s carton, store number Outbound checker moves pallet goods from store lane to dock and count quantity of goods If quantity of physical goods is matched up with information from Data, Outbound checker will record Load number and quantity of goods on Dispatch Note Then, Loader will stack goods into truck If quantity of physical goods is not matched up with information from Data, outbound checker will inform to their supervisor to solve • PAXD: PAXD team will handover PAXD goods to Outbound checker Outbound checker will record PO number, quantity and supplier’s name on Dispatch Note Figure 24: Dispatch product check list 36 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Tasks 4.1 Roles & main jobs Despite having a considerable amount of aspect to be taken part in, an inexperienced intern such I myself was only assigned to simple roles, which was rotated in interval throughout the internship, specifically: • Inbound checker • Stamper • Scanner • Inbound document checker In this section, due to the confidentiality policy imposed by the company, I can only make illustrations figures and these not reflect the real warehouse layout, software interface, etc Week (01/03 – 04/03) First and foremost, I learnt that due to safety reasons, every personnel enter the warehouse sector must wear the standard protective shoe and reflective jacket During this week, the WMS of Gemadept had experienced a critical malfunction in its connectivity to the online database putting the whole warehouse operation in a turmoil The staff all had their hands full so it was natural that the intern such as myself was not able to gain any practical experience in this week However, we were lucky to be instructed by one of the supervisors to stand and watch how the receiving process proceeds and grasp the overall operation through the clear guidance of the supervisor Week 2-4 (07/03 – 25/03) In this period, I got to familiarize myself with the procedure of an Inbound Check As mentioned above in section 3, there are products with expiry date and there is none Due to this, the intern was only able to be tasked with orders having no product with expiry date After the supplier representative finished having the document checked with the personnel from the data room, the product checking form will be moved to the working desk while the representative drives his/her truck from the gate into the dock The checking process starts once the driver has finished unloading their goods onto pallets and settle them in the vacant lanes At the working desk, Inbound Checker, which is myself, will use the product checking 37 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management form to call the representative through the speaker then the two will proceed to the lanes where the order is settled and start checking Data room A8 A7 A6 A5 A4 A3 A2 A1 Working Desk Dock Door Dock Door Dock Door Dock Door Figure 25: Illustration of the receiving area Along with the product checking form (Figure 7), I will carry a bunch of pre-printed information notes containing the information regarding the goods in the order that needs to be filled once I am done checking each article: ASN, Number of carton (actual quantity received), Article number, Checker name ASN Article number Quantity Name Figure 26: Information note Firstly, it is my job to open the boxes of each article based on the barcode printed on the piece of paper sticked to the exterior of the box and count to see if the number of case per box matches with what is written in the checking form (Figure 7) If it is correct, I will mark the three columns (MU/case, Case/Thùng, MU đơn vị MM) with column “MU đơn vị MM” equals column “MU/case” times column “Case/Thùng” Then at column “Số thùng thực nhận & MU lẻ có” and column “Actual Qty Received”, I will tick them In case there is loose MU then I will write down in the “Số thùng thực nhận & MU lẻ có” column the number of carton and the loose MU number; for instance, “1T + lẻ” Secondly, I will fill the information note based on the information that has been checked in the check form Then I will reseal the box using tape and stick information note while resealing This process is repeated for all the article in the order, Thirdly, after finish checking the whole order I will write down on the checking form the Door, Line where the goods of the order are settled, License Plate, Check name, Check-in time, Arrival time at Dock, Time of unloading, Time finish unloading, Time of receiving 38 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management (checking process), Time of finish receiving In order to keep up the KPI, the time gap between Finish Unloading and Time of receiving should not exceed 30 minutes The conclusion of the order is to be written regarding how many PO the supplier delivers, how many article, and the total quantity received based on the sum of column case/thùng Figure 27: Finished checking form Last but not least, when the data room has finished with the data entry, I will have to sign the release form in order for the representative to exit the truck out of the dock Week (28/03 – 01/04) During this week, I took on a new role as a stamper This role basically involves stamping the above-mentioned header per item label (Figure 19) next to the information note (Figure 26) which was taped with the box in the checking process The first thing I need to is to look for the lane where the goods of that order are at by looking at the lane’s name, which is in the format of a letter and a number, on the header wave of the label (Figure 18) This part of the stamp only serves as the overall cover of the order and an indicator of which lane the order is placed 39 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Figure 28: Lane indicator in Header wave of label Move on to the stamping, I will check to see if the ASN on the header per item label (Figure 19) matches with the ASN on the information note (Figure 26) Next, I need to check if the quantity received on the information note (Figure 26) matches that of the label because sometimes the ASN matches but the quantity received does not due to the article being split into different portion for different MM store My responsibility only extends to this point, as for the stamping of the remaining stamp having the store indicator onto the box is the job for the employee who is more accustomed to doing it than myself 40 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Figure 29: ASN and Quantity received on the header per item label Week (04/04 – 08/04) In this week, I was assigned to the role of a Scanner My responsibility during this week is to check the pallet containing the goods after the sorting process has been properly carried out to see if there is any difference from what has been available on the WMS Due to confidentiality policy, I cannot show any image relating to the WMS interface that I was working on during my time as a Scanner In order to make it clear, the sorting process is the process in which the worker reorganize the boxes of different article from the supplier into a pallet along with the other having the same destination, which is one of the stores of MM 41 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Figure 30: Store indicator on the stamping label To proceed with the scanning process, I first scan the pallet ID which has been taped on one of the boxes on the pallet This way, the WMS interface will move forward to the next one where it can verify whether the box has been scanned and matched with the data on the database or not To scan the box, I need to find the label that was stamped on the box and scan its QR code If the box has yet to be scanned, the WMS will continue to proceed otherwise a notification will pop up saying “Error” After each scan, I was instructed to take a marker and mark on the label so as to indicate that the box has been scanned, note that the mark should not intercept the QR code in case I need to rescan After scanning all the boxes on the pallet, I need count the total number of boxes so I can compare it with the data on the WMS If the number of boxes counted matches with the data then I can move on to the next pallet otherwise I either need to recount or rescan in case I missed any box Week 7-9 (11/04 – 29/04) In this week, I was assigned to the role of a Document Checker My responsibility during this week is to check delivery document, supplier information against booking report and 42 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management other requirement related to the specific delivery document Due to confidentiality policy, I cannot show any real image relating to the Excel work sheet interface that I was working on The rule at the document checking table is First Come First Served, the supplier representative submitting their document first will be checked first First and foremost, we look at the name of the supplier on the document to search for the content of the delivery on the Excel work sheet All the delivery of a working day has been put onto the database the previous day so I just need to type the name of the supplier into the search bar then select the supplier and the delivery content will show up The delivery content will show how many POs have been made by MM and each one has its own PO number Next, we check the document For normal FG, we need to check to see if the number of PO and the PO number matches what has been booked or not If the document lacks the required information, then it will be sent back to the representative and the company will reject the receiving of that delivery As for those that meet the requirement, I will print the BRS enclosed with delivery document and assign the priority for receipt based on the delivery status (on time; early, late) For KPI purpose, the one with on time status is marked as < 50 while early and late status are marked as > 50 in the Excel work sheet The more orders that are on time the better the KPI performance For PAXD goods, the related document is more sophisticated I need to check the PO number, ensure that the Delivery Notes from Supplier designed by MM’s “PAXD Delivery Note” are included, copies of invoice (in case of Import goods) After that I need to see if the delivery happens on the allowed date or not For PAXD delivery, it will be rejected if delivered later than days since the date of booking even though the date of delivery is still within the deadline of receiving For instance, if the supplier made a booking with GMD on the 3rd of the month and the deadline of receiving is on the 13th then the delivery must happen between the 4th and the 11th of the month Even though the 12th is still before the deadline of receiving but it has exceeded days from the date of booking so the delivery on this day will be rejected If the delivery is valid then I will stamp the seal of approval by GMD onto the first and fifth PAXD delivery note at the “Xác nhận từ CJ GMD” section PAXD delivery does not require BRS so I just proceed to update the time status of the delivery onto the Excel file 43 IS047IU Engineer Internship 4.2 VNU-International University School of Industrial Engineering & Management Obstacles & suggestion During my work as the three laborious roles of Inbound Checker, Stamper and Scanner, it is clear that an individual physical aspect is quite heavily required due to the constant standing and walking If a person is not physically adept for labor job, he/she may easily experience fatigue as well as possible black out due to the hot and humid atmosphere inside the warehouse In order to address this problem effectively, newcomers must be thoroughly assessed both in medical and physical aspect to ensure their capability to work in such a role Sufficient time slot for them to effectively adapt to the new environment is also recommended Another aspect that can cause confusion to the newly appointed employee is that the WMS is rather complicated in term of its many procedures Even though I am a student major in the field and a part of the generation with much exposure to new technology, the WMS that is being applied in the company is still unquestionably hard to comprehend In addition, the data room is quite small and the operation has been a norm for the employee so the rookie would be faced with even less chance to get used to the WMS As a solution, training course on using the WMS should be arrange for the new recruit to get a hold of what they will be using during their time working there Analysis and Improvement Suggestion 5.1 Analysis The first thing that I think to be one of the existing drawbacks of MM Warehouse is that the atmospheric condition inside the warehouse is rather troublesome Since MM Warehouse regulate and transfer goods from supplier to the MMVN on a daily basis, there are a considerable amount of employees taking part in different roles of the operation yet the working condition is yet the most ideal During noon and early afternoon, the air inside the warehouse feels considerably hot and humid which can easily cause fast dehydration due to excessive sweating Moreover, when the time approaches evening, approximately 17:00, the visibility is greatly diminished despite the current lighting system The second drawbacks, in my opinion, is the lack of automation in certain aspect of the operation, namely sorting Currently, sorting process in MM Warehouse is being done by outsourced worker which is considered not as cost-effective and time-saving as automation 44 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management In addition to the drawbacks, the inbound checking process can be more time-saving As I have mentioned, this process is entirely manual from the checking to writing the information note (Figure 26) by hand This is undoubtedly time-consuming and if we can reduce the time used for writing on the information note we can somewhat decrease the overall time spent on checking process As a result, it can fasten the time of stamping as well as put away and clear the lane for the next supplier representative Last but not least is the booking schedule When I was in the role of a document checker, I noticed that the majority of a day’s booking falls in the time frame of 9:30 – 11:30 while before 9:30 and in the afternoon there are few deliveries from the supplier Consequentially, a lot of document from various supplier are packed in that time frame causing unnecessary pressure to the document checker and this can easily cause error to occurs 5.2 Possible solution For the first drawback, it is recommended that GMD should reventilate there warehouse in order to create a more suitable environment for the workers’ condition by making more side windows for the air from outside to get in Moreover, this can help the middle section of the warehouse receive more natural sunlight during the day as well as cut down on unnecessary use of lighting in daytime For the visibility issue in the late noon, GMD can invest more lighting since there are quite few lights that are in use in the warehouse To address the second one, GMD can invest in buying an automation conveyor system which can scan the barcode on the label to determine which store in the MMVN system the box needs to be transported to and redirect them to the assigned station of each store This can reduce the workers need for manual sorting, all it needs is worker at the end station to put the boxes onto the pallet For the checking process, I suggest investment in the portable printing device that are currently being used by the electricity recorder This can help the checker focus more on thoroughly checking the content of the order and once they finish checking an article and make note through the touch screen the information note will be automatically printed out Lastly, in order to address the bottle neck during document checking, I think the booking team should be more flexible and arrange the booking in different available time slot instead of cramping all the booking into one specific time frame Not only can this cut down on the pressure from the representative on the document checker but it can also reduce risk of error 45 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Conclusions Thanks to this internship, not only have I gained an immense amount of practical experience working in an actual warehouse, but I have also greatly improved my soft skills from time management to problem-solving skills Furthermore, I was able to get accustomed the labor hardship as well as working under pressure I am grateful to be able to attend this internship since it allowed me to understand more about warehouse operation and help me approach the working culture as well as the current operational model and technological software applied in warehouse management In addition, after the two months working at GMD, it dawned on me that I need to be braver and step out of my comfort zone in order to reach new height and improvement on interpersonal communication needs to be made so as to be able to leave better impression on colleagues as well as effectively create stronger bond with other people All in all, my goals set for this internship have been met without any drawbacks, and I am undoubtedly satisfied with what I have learnt and experienced during these months 46 IS047IU Engineer Internship VNU-International University School of Industrial Engineering & Management Advisor Evaluation Ranking: Excellent = 5, Good = 4, Fair = 3, Poor = 2, NO = Not Observe = Scoring Criteria Advisor (Các Tiêu chí Đánh giá) (Hướng dẫn) Personal Qualities (Phẩm chất Cá nhân) Critical thinking, priorities setting (Tư phân tích, xếp cơng việc) Enthusiasm for work (Nhiệt tình cơng tác) Willingness to ask for and follow guidance (Sẵn sàng tìm hiểu tuân thủ hướng dẫn/ nội quy) Professional Abilities & Work Habits (Năng lực Làm việc) Analysis, problem solving skills (Kỹ phân tích giải vấn đề) Ability to organize, plan and work well with others (Kỹ tổ chức, hoạch định làm việc tốt với người khác) Responsibility (Tinh thần trách nhiệm) Job Performance (Hiệu Làm việc) Report contents (Nội dung Báo cáo) Report timelines (Thời hạn báo cáo) Report frameworks (Cấu trúc báo cáo) Additional comments (Nhận xét thêm): Advisor Signature (Chữ ký Người Hướng dẫn): Note (Ghi chú) Evaluation Date (Ngày đánh giá): The intern Signature (Chữ ký Sinh viên Thực tập): 47 ... Vietnam • 20 02: Officially listed on VSE • 20 08: Invested the first private Container Port in Dung Quat, Quang Ngai Province • 20 09: Grand opening of Nam Hai Port in Hai Phong • 20 11: Initiated Logistics. .. 3 .2 Receiving process of normal finished good 12 3.3 Receiving process of normal finished PAXD 21 3.4 Centralized Stock Management 23 3.5 Picking 29 ... Established first joint venture of Automotive Logistics in Vietnam • 20 17: Cooperated with CJ Logistics – the leading Korea Logistics Partners • 20 19: Construction of Gemalink – the biggest deep-sea