Products and Services DB Schenker offers a comprehensive range of products and services that cater to various aspects of logistics, supply chain management, and transportation.. Establi
Reason for choosing Topic
The choice of the topic "Analysis and proposing solutions for improving efficiency in intel’s warehouse operations system" stems from recognizing the significance of sales strategy in fostering competitiveness and ensuring sustainable development in an increasingly competitive business environment Intel Products is a reputable and evolving store that offers a range of premium technological products, which generates interest in how the warehouse executes its operation strategy Analyzing and improving the sales strategy at this store can yield valuable insights into challenges and opportunities, subsequently enabling the proposal of optimized solutions for business management and development.
Research Objectives
The primary objective of the thesis at Intel Products is to conduct a comprehensive and practical analysis of the strengths, weaknesses, opportunities, and potential threats in the future for the warehouse, sales processes, and business operations at Intel Products Warehouse This thesis aims to provide an in-depth understanding of how the warehouse operates, generates value for customers, and impacts the business success of Intel.
Scope of the Study
The scope of the study encompasses: Current State Analysis: Analysis and proposing solutions for improving efficiency in intel’s warehouse operations system based on the data of the first half of 2023 Identifying the strengths, weaknesses, opportunities, and challenges of the existing operation strategy
Proposal for Improvement Solutions: Building upon the current state analysis, suggesting improvement solutions to enhance the performance of the operation strategy This could involve optimizing the system, enhancing allocation processes.
Research Methodology
Descriptive Research Method: This is a research approach used to meticulously and accurately describe a phenomenon or situation This method focuses on collecting data about the characteristics and attributes of the subjects, events, or phenomena under
4 investigation The primary objective of the descriptive research method is to provide an overall picture of the current and unaltered state of the factors being examined
INTRODUCTION ABOUT INTEL PRODUCTS VIETNAM AND
Introduction to DB Schenker
DB Schenker is a global leader in logistics and supply chain management, renowned for its innovative solutions and comprehensive services that connect businesses to markets around the world With a rich history dating back to the 19th century, DB Schenker has evolved into a dynamic and customer-centric organization that plays a pivotal role in facilitating the movement of goods and information across the global marketplace
Schenker is the provider of warehouse management and transportation services for Intel, including:
FG is the department responsible for:
● Receiving finished goods from ATM to the warehouse (Receiving)
● Sorting goods into the designated storage area (Putaway)
● Managing the arrangement of accessories for outgoing goods
Positions in FG department of Intel’s warehouse
Source: Internal of DB Schenker
Positions in FG department of Intel’s warehouse:
Founded in 1872, DB Schenker is part of the Deutsche Bahn Group, one of the world's largest and most respected transportation and logistics companies Leveraging this powerful legacy, DB Schenker operates in over 130 countries, with a vast network of offices, warehouses, and transportation hubs strategically positioned to ensure efficient and reliable global supply chain solutions
DB Schenker offers a comprehensive range of services designed to meet the diverse needs of businesses in various industries From air and ocean freight to contract logistics and land transportation, the company excels in delivering customized solutions that enhance efficiency and reduce costs Their commitment to sustainability and environmental responsibility is also evident in their commitment to reducing emissions and pioneering innovative green logistics practices
As a forward-thinking industry leader, DB Schenker continually invests in cutting- edge technology, automation, and digital solutions to optimize the flow of goods and information, making supply chains more transparent, agile, and efficient This commitment to innovation has positioned DB Schenker as a strategic partner for businesses looking to thrive in the global marketplace
At the heart of DB Schenker's success is its unwavering dedication to customer satisfaction By providing tailored solutions, a global network of experts, and a deep understanding of the ever-evolving logistics landscape, DB Schenker enables businesses to focus on their core competencies while leaving their supply chain challenges in the hands of experienced professionals
In an era of increased globalization and interconnected markets, DB Schenker stands as a trusted partner, helping businesses of all sizes and industries navigate the complex world of logistics Their legacy of excellence, commitment to innovation, and global reach make DB Schenker an essential component of modern supply chains, driving efficiency, sustainability, and success in today's competitive business environment
Organizational Scale of DB Schenker Viet Nam
Source: Internal of DB Schenker
DB Schenker offers a comprehensive range of products and services that cater to various aspects of logistics, supply chain management, and transportation These services are designed to meet the diverse needs of businesses across different industries Below is an overview of the key products and services provided by DB Schenker:
Air Freight Services: DB Schenker offers air cargo solutions to expedite the transport of goods These services include general cargo, express, and special services for oversized or time-sensitive shipments
Ocean Freight Services: The company manages the movement of goods via sea, providing both Full Container Load (FCL) and Less than Container Load (LCL) options They offer a range of ocean freight solutions, including container shipping, breakbulk, and project cargo
Land Transportation: DB Schenker provides extensive land transportation services, including road and rail solutions This encompasses domestic and international freight transportation, ensuring the smooth movement of goods across borders
Contract Logistics: This service involves comprehensive supply chain solutions tailored to a client's specific needs DB Schenker takes charge of warehousing, order fulfillment, inventory management, and distribution, allowing businesses to focus on their core operations
Customs Brokerage: DB Schenker offers customs brokerage services to help clients navigate complex international trade regulations and ensure the efficient clearance of goods across borders
E-commerce Solutions: With the rise of e-commerce, DB Schenker provides services tailored to the unique needs of online retailers This includes last-mile delivery, order fulfillment, and returns management
Project Freight Management: For oversized, heavy, or specialized cargo, DB
Schenker offers project freight management services This includes planning, transportation, and project-specific logistics solutions
Industry Solutions: DB Schenker has expertise in serving specific industries, such as automotive, healthcare, aerospace, and more They offer tailored solutions to meet the unique requirements of each sector
Global Forwarding: As a global freight forwarder, DB Schenker arranges the transportation and logistics of goods on behalf of clients They coordinate shipments, choose optimal routes, and handle all necessary documentation
Supply Chain Management: DB Schenker provides end-to-end supply chain management solutions that optimize processes, reduce costs, and improve visibility within the supply chain This includes inventory management, demand forecasting, and strategic consulting
Green Logistics: In line with sustainability efforts, DB Schenker is committed to environmentally responsible logistics practices They offer eco-friendly transport solutions and work to reduce emissions and the carbon footprint of their operations
Digital Solutions: DB Schenker leverages technology and digital platforms to enhance transparency, efficiency, and real-time tracking within the supply chain This includes online booking systems, shipment tracking, and data analytics
Introduction to Intel Products Vietnam’s Warehouse
Intel Products Vietnam (IPV) is a subsidiary of Intel Corporation, a globally recognized leader in semiconductor manufacturing and technology innovation Established in 2006, Intel Products Vietnam plays a pivotal role in Intel's global supply chain network, contributing to the company's mission of delivering cutting-edge technology solutions to the world One of the critical components of this mission is the state-of-the-art warehouse facility that IPV operates in Vietnam
Intel Products Vietnam's warehouse is more than just a storage facility; it's a vital part of Intel's commitment to delivering world-class products to its customers and partners worldwide This warehouse is strategically located in the Saigon Hi-Tech Park in Ho Chi Minh City, one of Vietnam's major economic hubs This prime location ensures efficient logistics and easy access to international transportation routes, making it an essential link in Intel's global supply chain
Source: Internal of DB Schenker
Here are some key aspects of Intel Products Vietnam's warehouse:
Cutting-edge Technology: The warehouse is equipped with the latest technological advancements in inventory management and logistics Automated systems, real-time tracking, and precise control mechanisms are in place to ensure the efficient handling of Intel's products
Environmental Responsibility: Intel is well-known for its commitment to sustainability, and this extends to its warehouse operations The facility is designed with eco-friendly measures in place to minimize its environmental footprint This includes energy-efficient lighting, waste reduction programs, and responsible sourcing practices
Security and Quality Control: The warehouse maintains strict security protocols to safeguard Intel's valuable products Access is limited to authorized personnel, and extensive quality control checks are conducted to ensure that only top-quality products are shipped to customers
Global Connectivity: Intel Products Vietnam's warehouse is interconnected with Intel's global network of manufacturing, distribution, and research and development centers This interconnectedness allows for real-time data sharing and streamlined operations, enhancing the speed and efficiency of the entire supply chain
Skilled Workforce: The warehouse is staffed by a highly skilled and dedicated workforce, who undergo continuous training to ensure they are up-to-date with the latest industry standards and Intel's quality expectations
Scalability: In line with Intel's dynamic business needs, the warehouse is designed for scalability It can handle a wide range of products and adapt to changing demands, ensuring Intel's products reach their global destinations on time
Customer-Centric Approach: At its core, Intel Products Vietnam's warehouse operates with a customer-centric approach It's committed to providing timely deliveries, accurate order fulfillment, and responsive customer support to meet the specific needs of Intel's diverse customer base
According to Dave Piasecki (2001), a WMS's primary functioning has not improved even while it continues to add new features Controlling the flow and storage of items within an operation and handling associated transactions are the main goals of a WMS
The three main functions of the WMS are directed replenishment, directed picking, and directed stock put away Because of the complexity of their operations in managing the demands of several customers, 3PLs needed such WMS features
According to Faber (2002), a warehouse management system is defined as one or more pieces of equipment that are utilized to carry out different warehouse functions For instance, a "storage system" could consist of nothing more than rows of pallet racks or it could also include static shelving, pallet racks, and floor space designated for storing multiple pallets of a single title The requirements of almost every department inside the company have an impact on how the warehouse operates, especially if those departments are housed in the same structure
Intel Products Vietnam's warehouse is not just a storage facility but a critical component in Intel's ability to bring innovation to the world By maintaining a relentless focus on quality, efficiency, and sustainability, this warehouse contributes significantly to Intel's global reputation for excellence It stands as a testament to Intel's commitment to delivering world-changing technology while upholding the highest standards of corporate responsibility and environmental stewardship
LITERATURE REVIEW
ERP System in Intel’s warehouse
WMS stands for Warehouse Management System It is a software and technology solution used in warehouses and distribution centers, including those at companies like Intel Products Vietnam (IPV), to manage and optimize various warehouse operations WMS plays a crucial role in improving efficiency, accuracy, and productivity within the warehouse environment
Ramaa (2012) states that the primary functions of a warehouse management system, or WMS, are to process pertinent operations such as receiving, put-away, picking, and shipping as well as to monitor the movement and storage of commodities within a warehouse
A warehouse management system, or WMS, is a database-driven computer program that tracks warehouse activities and directs putaways to maintain high inventory accuracy Its purpose is to increase the efficiency of warehouse operations Additionally, the systems have controlled and directed the stock holding by using real- time data on bin utilization status
According to Phillips (2010), supply chain management and demand management both include warehouse management The way warehouses are managed has a big impact on even production management Retail chains distribution companies can get a competitive advantage through efficient warehouse management The beginning of warehouse management involves more than just receiving materials; it also involves designing the product's container
Inventory Management: WMS software helps in tracking inventory levels in real- time This includes monitoring the movement of products in and out of the warehouse, as well as their current locations This real-time visibility is essential for ensuring that Intel's products are always available and ready for distribution
Order Fulfillment: WMS systems are instrumental in streamlining the order fulfillment process They help pickers and packers locate the right products quickly and ensure accurate order assembly This minimizes errors in order processing and improves customer satisfaction
Optimizing Storage: WMS software can help determine the most efficient storage locations for different products It considers factors like product dimensions, weight, and turnover rate to ensure that products are stored in the most space-efficient and accessible areas
Labor Management: WMS can track the performance and efficiency of warehouse personnel This information can be used to optimize labor resources and identify areas for improvement in staff training and task assignment
Task Scheduling: WMS systems can automate and optimize the scheduling of warehouse tasks, such as replenishment, picking, packing, and shipping This leads to a more organized and efficient workflow
Real-Time Data and Reporting: WMS provides real-time data and reporting capabilities, allowing warehouse managers to make informed decisions based on up-to- date information This includes reports on inventory levels, order status, and overall warehouse performance
Security and Compliance: WMS can enforce security protocols, ensuring that only authorized personnel have access to specific areas within the warehouse It can also help manage compliance with industry regulations and safety standards
Integration: WMS systems are often integrated with other systems used in the warehouse, such as Enterprise Resource Planning (ERP) systems and Transportation Management Systems (TMS) This integration allows for seamless data exchange and coordination between different aspects of the supply chain
According to Faber (2002), inventory was once seen to be a good indicator of a company's prosperity in the days of warehouses Unfortunately, that is no longer the case in modern times Rather, a lot of businesses are aware of how expensive it is to keep inventory In their most basic form, warehouses serve as transshipment locations for receiving and distribution, where goods are kept for brief periods of time Furthermore, fulfilling consumer expectations and demand are among the primary elements that make it challenging to run a business without inventory
By rearranging and showcasing items in the warehouse in the most practical and efficient manner, WMS warehouse management software assists you in making the most use of available space
With the help of this capability, companies may effortlessly modify the location and arrangement of products, raw materials, and supplies in the warehouse to guarantee efficient operations The warehouse management system (WMS) will compute and plan the warehouse area based on industry standards and the kind of products the company sells
A TMS system, or Transportation Management System, is a software solution used in warehouses and logistics operations to efficiently plan, manage, and optimize transportation and shipping processes
Source: http: WWW.SAP.COM
Intel Products Vietnam's warehouse and supply chain operations, a TMS system would serve several key functions:
Carrier Selection: TMS software helps in selecting the most suitable carriers for shipping Intel's products based on various factors, such as cost, service levels, and carrier performance
Route Planning: TMS systems optimize the routes and schedules for product shipments, considering factors like delivery windows, fuel efficiency, and traffic conditions This optimization helps in reducing transportation costs and improving delivery times
Freight Consolidation: TMS can consolidate shipments to maximize the use of available space in trucks or containers This not only reduces transportation costs but also minimizes the environmental impact of shipping
Description of the existing duties of an Admin
2.3.1 Receiving Finished Goods from ATM to the Warehouse
The process of receiving finished goods (FG) from the manufacturing facility (ATM) to the warehouse involves several steps:
At the manufacturing plant (ATM), finished goods are loaded onto transport vehicles or cages These loaded cages are then placed in the receiving area of the warehouse When a sufficient number of cages have arrived, a notification is sent to the warehouse to initiate the receiving process
The call-in schedule for receiving finished goods is as follows: 2 AM/PM, 4:45 AM/PM, 6 AM/PM, and 10 AM/PM During these specified times, the warehouse is alerted to expect the arrival of finished goods
Personnel Making the Call: The individuals responsible for making the call to the warehouse during these scheduled times are the Admin and Sup (Supervisor)
Operators Responsible for Transporting Goods from ATM: All operators involved in the management of the FG warehouse are responsible for moving the goods from the manufacturing facility to the warehouse
Preparation and Inspection: Before the goods are transported from the manufacturing facility to the warehouse, the Receiver is responsible for preparing and inspecting the cages and, if necessary, cleaning them
Entry into the System: The Receiver is also responsible for entering the received goods into the inventory management system
Direct Arrangement of Goods: The final step involves the direct arrangement of the received goods within the warehouse This is a collaborative effort between the Driver and the Receiver
The process of receiving finished goods from the manufacturing facility is a crucial aspect of warehouse operations It requires a coordinated effort between different roles to ensure that goods are received efficiently and accurately The call-in schedule, with its specified times, allows the warehouse to allocate resources and manpower effectively, minimizing delays and ensuring that goods are promptly available for distribution
The responsibility of preparing, inspecting, and cleaning cages falls on the Receiver, emphasizing the importance of maintaining the quality and cleanliness of incoming goods Additionally, the Receiver plays a pivotal role in updating the inventory management system to reflect the arrival of new goods, which is essential for maintaining accurate stock records
Once the goods arrive at the warehouse, the Driver and Receiver collaborate to arrange the items in their designated storage areas, ensuring that the goods are easily
25 accessible and well-organized for order processing and distribution This collaborative effort is essential for the efficient functioning of the FG department within the warehouse
2.3.2 Putting Goods Away into Storage Area (Putaway)
After receiving goods from the manufacturing facility, the Receiver is responsible for entering the received items into the system (within a maximum of 6 hours from the time the goods arrive at the warehouse)
Once the goods have been successfully logged into the system by the Receiver, the Driver takes over to put the goods away into the designated storage areas, a process referred to as "putaway." Each box or container has a specific location in the system that corresponds to its physical position in the warehouse
The "putaway" process is a critical step in managing goods within the warehouse efficiently It ensures that items are not only received into the inventory system promptly but also physically organized in their designated storage locations
Having a specific location in the system that corresponds to the actual physical placement of items is essential for quick and accurate retrieval during order processing This organized system minimizes errors, reduces the time needed to locate items, and enhances overall warehouse operations
The time constraint of 6 hours for entering goods into the system emphasizes the importance of real-time or near-real-time data entry to maintain the accuracy of inventory records Accurate and timely record-keeping is fundamental for maintaining inventory control, preventing stockouts, and ensuring that orders can be processed smoothly
Overall, the putaway process is a critical link in the chain of warehouse operations, ensuring that items are not only received but also stored in a manner that optimizes space, accessibility, and operational efficiency
Orders, referred to as Delivery Notes (DN), are created by CBA (Intel) on SAP and are then automatically downloaded into WMS The order processing workflow includes several steps:
Source: Internal of DB Schenker
1 GC ( Ground Controller) checks ISET and works on the order
2 GC provides a pick list to the driver
3 Driver picks the items and brings them to the processor
4 Processor verifies the order, ISET, and the actual items
5 Processor performs partial box operations and applies labels if necessary
6 Items are scanned into the system
7 The order is then passed to the packer
8 The packer completes the packing and loads it onto a pallet
9 The Dockyard team retrieves the items and moves them to the shipping area
Note: Checking ISET involves verifying the customer's requirements regarding the age of the items, label types, packaging methods, and other specific details
The order processing workflow detailed here is a critical phase in the warehouse's operations It is where customer orders are received, prepared, and readied for shipment Each step in this process is designed to ensure accuracy, quality, and efficiency
Each warehouse may have a variety of uses and should be built to the specifications established by its supply chain Nevertheless, a lot of warehouses perform similar tasks The literature characterizes these basic procedures as receiving a shipment, storing the goods, selecting the products that the customer requests, and shipping the goods to the consumer
Source: adapted from de Koster et al (2007)
Driver and Processor Collaboration: The collaboration between the driver and processor ensures that the correct items are picked and that they match the customer's order The processor further verifies the order's accuracy, streamlining quality control
Allocation Logic
The WMS (Warehouse Management System) will automatically allocate based on the following principles:
First: WMS will remove inventory that does not meet the ISET conditions, such as age (assy seal DTE Age), T/P/W-lot
After that, WMS will select inventory that meets the ISET conditions and will pick them in order of priority: it will choose full boxes first and then select partial boxes
Prioritizing the selection of full boxes according to the FIFO (First-In-First-Out) principle:
Priority 1: The production date of the individual chip (oldest = longest age)
When choosing full boxes, the primary consideration is the production date of each individual chip The system will favor chips with the oldest production date, which implies that chips manufactured earlier will be allocated first This ensures that the inventory is used in the order it was produced, promoting a First-In-First-Out approach
Priority 2: The date of sealing the silver bag (BSD): oldest = longest age This applies to Chipset and TNR (Tape and Reel) products
For Chipset and TNR (Tape and Reel) products, in addition to the production date, the sealing date of the silver bag (BSD) becomes a crucial factor The system will prioritize chips that have been sealed in silver bags the longest This means that among products within the same production date range, those with the oldest sealing date will be selected first
Priority 3: The longest time since the goods were received = the farthest from the current date
When there are still multiple options with the same production and sealing dates, the system will further prioritize the full boxes based on the length of time they have been in the warehouse Boxes that have been in the warehouse the longest, or are farthest from the current date, will be chosen first This ensures that older inventory is used before newer inventory, maintaining the integrity of the FIFO system
Note: The concept of "box partial" does not apply to Chipset products and items in the Tape and Reel category.
Inventory Management
The process of supervising and managing the purchase, storage, and utilization of an organization's inventory is known as inventory management This covers the handling of components, raw materials, and completed goods in addition to their processing and storage Inventory management aims to keep expenses down and productivity up while making sure a company has the appropriate products in the proper quantities for sale Maintaining a balanced supply chain, satisfying customer expectations, and reaching operational efficiency all depend on effective inventory management.
Introduction to PIP
The systems mentioned are interconnected through data transmission signals, commonly referred to as "Pip."
SAP (System, Applications, and Products in Data Processing) → TMS (Transportation Management System) → WMS (Warehouse Management System)
ERP systems applied in Intel’s warehouse
Source: Internal of DB Schenker
Source: Internal of DB Schenker
In this chain, data and information flow from the SAP system to the TMS system, and subsequently from the TMS system to the WMS system, allowing for seamless communication and coordination between these different components of the supply chain This interconnected setup ensures that relevant data, such as order information,
31 inventory status, and transportation details, are efficiently shared and managed across the systems, optimizing the overall logistics and warehouse operations
WMS (Schenker) and SAP (Intel) communicate by transmitting information through various PIP types using a gateway known as the Interface
PIP flow between 3-PL, ECC and SAP
Source: Internal of DB Schenker
PIP 3B2 ASN (Advanced Shipping Notice): This PIP serves as a prediction and notification of the quantity of goods to be sent from the Intel factory to the storage warehouse Administrators use the information from this PIP to make forecasts about the amount of goods to be received and manage them in the Outstanding system before the actual receipt of the goods
PIP 4B2 Finalization: After receiving the quantity of goods as indicated in the
Waybill system, administrators perform the final confirmation in the WMS to ensure that the goods have been received correctly and successfully Through this PIP, information about the receipt of goods is transmitted to the SAP system to update the status of the goods
PIP 3B12 and 3B12R: PIP 3B12 is used to transmit information about the quantity of goods for which delivery notes (DN) have been created in the SAP system to the Transportation Management System (TMS) The TMS will create a Freight Order (FO) and shipping documents based on the DN Once a Shipping Document (SD) is available, PIP 3B12R is transmitted to the WMS system to notify the arrangement and preparation of goods for delivery
PIP 3B13: This PIP is used after the Delivery Note (DN) has been pick-packed in the WMS system It transmits information to the SAP system to trigger the creation of delivery documents PIP 3B13 automatically generates the necessary documentation for orders that have been packaged in the warehouse
PIP 3B2 PGI (Post Goods Issue): When a Delivery Note (DN) has left the warehouse, the Shipping Controller (SC) performs the "Ship out" action in the WMS system and triggers PIP 3B2 to notify the goods issue Subsequently, Customer Service (CS) carries out the "Post Goods Issue" process in the SAP system The PGI process confirms that all goods have been shipped out on that day
PIP 3B14R and 3B14C: These PIPs are used to cancel Delivery Notes (DN) when there are requests from customers or when there are Logistics and Customer Service Requests (LCSR) related to cancellation
PIP 4C1 QAN-HOLD: This PIP is used to communicate the holding of goods when quality issues are detected by the Intel manufacturing plant This process ensures that goods not meeting quality standards are not dispatched
PIP 4C1 Reconciliation: This PIP is used to verify the matching and reconciliation of goods data between the WMS and SAP systems to ensure data accuracy in the warehouse
THE CURRENT OPERATIONAL ISSUE AT THE INTEL
ISET checking manually
Numerous approaches have been put out thus far to deal with the three main duties listed above There are three categories into which these input data preparation techniques can be divided: The three methods depicted in Figure are manual, semi-automatic, and intelligent—that is, not just semi-automatic but also adaptive to the application context
Three categories of input data preparation methods for geographic models
Source: adapted from ISPRS International Journal of Geo-Information 2019
ISET Verification: The note about ISET checking emphasizes the importance of meeting the customer's specific requirements This includes ensuring that the products meet certain age specifications, are packaged according to the correct standards, and have the right labels attached
Step 3: Login to ISET site
After filling the DN number to the blank a ISET table will pop up for filling
Source: Internal of DB Schenker
Step 4: Adding information into DN in WMS
Pros of the Current Deployment Strategy ( Manually apply I-set )
Customer Satisfaction: Because of the strict constraints of the Special Instruction and I-set of the customer, the company can easily satisfy everyone An optimal deployment strategy often results in faster delivery times, better service, and more accurate order fulfillment, which can lead to higher customer satisfaction and loyalty Control: Manual data entry allows for human oversight and control over the information being transferred This can be valuable when dealing with critical or sensitive data
Customization: Manually entering information allows for customization You can tailor the data entry process to meet specific customer requirements or unique circumstances
Comment: WH’s daily orders usally reach 700 orders with different customers, admins need to read carefully the text in the Special Intrustion box inorder to fullfill the requirements
Immediate Updates: If the Intel I-set site is continually updated, manual entry can ensure that the latest and most accurate information is included in the delivery notes immediately
Low Implementation Costs: Manual data entry typically involves minimal initial costs compared to implementing automated data integration systems
Flexibility: Manual entry is adaptable and doesn't rely on complex software or hardware systems It can be employed quickly in a variety of situations
Training Opportunities: Manual data entry can be a training opportunity for employees, helping them develop attention to detail and data accuracy skills
Avoidance of Technical Issues: Automation can sometimes be susceptible to technical problems, such as software bugs or system failures Manual entry avoids these potential technical issues
Cons of the Current Deployment Strategy ( Manually apply I-set )
Data Entry Errors: Manual data entry is prone to human error Typos, incorrect quantities, or other mistakes in the delivery note can lead to shipping the wrong items or quantities to the customer
1 Why are there data entry errors?
➢ Because the data entry process is prone to mistakes
2 Why is the data entry process prone to mistakes?
➢ Because the process involves manual input of complex data with multiple fields
3 Why does the data entry process involve manual input of complex data with multiple fields?
➢ Because the system lacks automation or user-friendly interfaces to simplify data entry tasks
4 Why does the system lack automation or user-friendly interfaces for data entry?
➢ Because the organization has not invested in updating or modernizing the data entry system
5 Why has the organization not invested in updating or modernizing the data entry system?
➢ Because decision-makers prioritize other areas for investment, and there is a perception that the current system is functional enough
Manual Input of Complex Data with Multiple Fields:
• Data entry involves manual input of detailed information across numerous fields, increasing the likelihood of human error
• Complex data entry requirements may lead to confusion or oversight, especially during high-volume processing
Lack of Standardized Procedures for Data Entry:
• Absence of standardized guidelines or protocols for data entry processes can result in inconsistent practices and varying levels of accuracy
• Lack of clear procedures makes it difficult for operators to follow best practices and minimize errors
Overly Detailed or Convoluted Data Entry Requirements:
• Data entry forms or requirements may be overly detailed, requiring operators to navigate through unnecessary fields or complex validation rules
• Simplifying data entry requirements can streamline the process and reduce the risk of errors
System Lacks Automation for Data Entry Tasks:
• Data entry tasks rely heavily on manual input without sufficient automation tools to validate data or automate repetitive tasks
• Automation solutions such as data validation scripts, OCR (Optical Character Recognition), or workflow automation can significantly reduce errors
Limited Integration with Existing Systems for Automated Data Capture:
• Insufficient integration with other systems (e.g., CRM, ERP) hinders the ability to automate data capture and validation
• Seamless integration between systems can streamline data entry processes and improve accuracy
Outdated Software or Technology Infrastructure for Data Entry:
• The data entry system relies on outdated software or technology that is prone to compatibility issues or performance limitations
• Investing in modern software solutions and infrastructure upgrades can enhance reliability and efficiency
Legacy Systems Incompatible with Modern Data Management Practices:
• Legacy data entry systems may not align with current data management standards or industry practices, resulting in inefficiencies and errors
• Migration to modern systems that support agile data management practices is necessary to improve accuracy and efficiency
Deferred System Upgrades or Maintenance Due to Resource Constraints:
• Limited resources or budget constraints may lead to deferred system upgrades or maintenance, causing the data entry system to fall behind in functionality and reliability
• Prioritizing resources for system upgrades can mitigate risks associated with outdated technology
Lack of Awareness About Impact of Data Entry Errors on Operations:
• Decision-makers may underestimate the significance of data entry errors and their impact on overall operations, leading to low priority for system improvements
• Raising awareness about the consequences of data entry errors can garner support for investment in system enhancements
Focus on Short-Term Cost Savings Rather Than Long-Term Efficiency Gains:
• Emphasis on immediate cost savings may overshadow the long-term benefits of investing in data entry system improvements
• Demonstrating the ROI (Return on Investment) of system upgrades in terms of improved efficiency and reduced errors can shift focus towards long-term gains
Competing Priorities for Budget Allocation Across Organizational Functions:
• Limited budget allocation and competing priorities across different organizational functions may lead to challenges in securing funds for data entry system enhancements
• Making a compelling case for the strategic importance of data entry system improvements can help prioritize investments
Inaccurate Information: The data on Intel's I-set site may change over time Manually updating delivery notes with this information may lead to discrepancies between what's on the note and the actual inventory, causing confusion and potential customer dissatisfaction
Comment : Somtime due to the high amount of tasks, Admin usally overlooked the information of the order and result in lacking of labels
Delayed Updates: If Intel's I-set site data is not updated in real-time or if there's a delay in updating the delivery notes, it can result in customers receiving outdated or incorrect information
Compliance Issues: Incorrect data on delivery notes can result in compliance and legal issues, particularly in regulated industries where accurate product information and documentation are required
Customer Dissatisfaction: Errors in the delivery note can lead to delays, incorrect shipments, and misunderstandings, which can negatively impact customer satisfaction and the business's reputation
Operational Inefficiencies: Manually transcribing data from one system to another can be time-consuming and labor-intensive, potentially leading to inefficiencies in the order fulfillment process
Inventory Management Challenges: Inaccurate data in delivery notes can affect inventory management, as it may not reflect the actual state of the inventory, leading to overstock or stockouts
Reconciliation Difficulties: Mismatches between the information in the delivery notes and the actual inventory can make it challenging to reconcile records and track orders accurately
Increased Costs: Resolving errors in delivery notes, addressing customer complaints, and potential returns can result in increased operational costs and reduced profitability
Potential bottlenecks
Manually entering data takes a lot of time, especially when dealing with a lot of information This can slow down the process of getting orders ready and cause delays in delivering products to customers
The bottleneck happens when a document called a Delivery Note (DN) has problems that need to be fixed When this occurs, the DN is put on hold, and we have to wait for guidance from the people in charge This waiting period adds even more time to the process
This wait can make the whole process take longer, and sometimes, it can cause us to miss the deadline for delivering orders This can make customers unhappy and hurt our company's reputation
In summary, manual data entry is slow, and when issues with Delivery Notes come up, it can make things even slower This can lead to missing delivery deadlines, which is not good for our customers or our business To solve this, we often look for ways to make data entry faster and get quicker decisions when there are issues with Delivery Notes
Human error is a significant risk when manually entering data Ensuring data accuracy requires careful proofreading and validation, which can be a bottleneck in itself
When people enter data manually, there's a significant chance of making mistakes These errors can be small, like typos or incorrect numbers, or more significant, like entering the wrong information To make sure the data is correct, it's essential to carefully read and double-check everything that's been entered This process of proofreading and validation is crucial, but it can also be slow and can create delays in the workflow For instance, if someone enters the wrong address or product code, it may lead to sending the wrong item to a customer, causing frustration and extra costs to fix the error
To improve data accuracy, businesses can consider implementing software that automatically checks for errors as data is entered This way, the system can catch mistakes in real-time and reduce the need for manual proofreading, making the data entry process more efficient and reliable Additionally, providing training and clear guidelines to employees can help them understand the importance of accurate data entry and reduce the occurrence of errors in the first place
PROPOSING SOLUTION TO IMPORVE THE OPERATIONAL
Analysis of the current number of errors during allocation DNs in this
4.1.1 Before apply auto filling ISET
Total DNS of 15 days (Sep 2, 23 to Sep 17, 23):
Total DNs matched Cus Requirements
Total DNs do not matched Cus
Sum of allocation in 15 days in September
The table presents data for a series of dates from September 2, 2023, to September
17, 2023, and includes information on the total number of delivery notes (DNs) processed each day It also shows how many of these DNs matched customer requirements and how many did not
On most days, there is a substantial number of DNs, with the highest being 1008 on September 16, 2023
The majority of DNs typically match customer requirements, with the highest number being 1002 on September 10, 2023
However, there are also a small number of DNs that do not match customer requirements, with the highest being 33 on September 6, 2023
Overall, this table provides a snapshot of daily DN processing and the extent to which they meet or do not meet customer requirements over a specific period in September 2023
4.1.2 After applying auto filling ISET
Comment: This solution will shorten the current task of an Admin and reduce the process, requestor now only checking if after auto calling I-set there are any lack of information or not
Total DNS of 15 days (Oct 2, 23 to Oct 17, 23):
Total DNs matched Cus Requirements
Total DNs do not matched Cus Requirements
Sum of allocations in 15 days in Octorber
The table provides information on the total number of Delivery Notes (DNs) processed, the DNs that met customer requirements, and those that did not, over a period of 16 days from October 2, 2023, to October 17, 2023
Overall, it is evident that the majority of Delivery Notes met customer requirements, with only a few instances of non-compliance The highest number of discrepancies occurred on October 8, 2023, where six DNs did not match customer requirements Conversely, on October 5, 2023, and October 13, 2023, all processed DNs successfully met customer specifications
Sum of Allocation in 15 days (Oct)
Total DNsTotal DNs matched Cus RequirementsTotal DNs do not matched Cus Requirements
Table showing the calculations for each date (Sep 2, 23 to Sep 17, 23):
Total DNs matched Cus Requirements
Total DNs do not matched Cus Requirements DPMO
Calculate the Defects Per Million Opportunities (DPMO) for each date using the formula:
Calculate the Sigma level using the following formula:
Table showing the calculations for each date (Oct 2, 23 to Oct 17, 23):
Total DNs matched Cus Requirements
Total DNs do not matched Cus Requirements DPMO
Calculate the Defects Per Million Opportunities (DPMO) for each date using the formula:
Calculate the Sigma level using the following formula:
Conclusion: Overall the solution have a very small affectiveness on reducing the number of “incorrcet” orders to customer The average Sigma Level increased from
4.14 to 4.40 after apllied auto calling I-set.
Raw Material Space Utilization
Source: Internal of DB Schenker
The growing volume in the raw materials (RM) section signals a need for strategic optimization to ensure efficient storage and retrieval processes To address this challenge, we must focus on utilizing rack bays more effectively and maximizing available storage space By doing so, we aim to not only accommodate the increasing volume but also enhance overall warehouse efficiency
J Temple Black, 1992 provides insightful information about the design ideas and methods that make contemporary manufacturing facilities successful In the fields of operations management, manufacturing, and industrial engineering, it is an invaluable resource for professionals and students It offers helpful advice on how to create
55 factories that can adjust to shifting market conditions, maximize output, and achieve long-term sustainability
E Frazelle (2016) offers in-depth analysis of productive and successful material handling and warehousing techniques The book discusses a number of warehouse management topics, such as technology integration, inventory control, picking techniques, and layout design It provides helpful advice and industry best practices for boosting customer service, increasing efficiency, and streamlining warehouse operations The real-world examples and the author's extensive knowledge of the subject matter make this book an invaluable tool for managers and professionals in the logistics and supply chain sector
In order to optimize storage assignments in warehouses and reduce travel distances, Chiang et al (2012) suggest using data mining The writers examine previous order data using data mining techniques in order to spot trends that can guide more effective storage allocations To assign products to storage locations in a way that minimizes the total trip distance for order picking activities, they create heuristics based on these patterns Simulation studies are conducted to illustrate the usefulness of the suggested strategy, revealing notable improvements in journey distance when compared to conventional storage assignment methods
The study demonstrates how data mining can be used to optimize warehouse operations and offers practitioners insightful information to improve the effectiveness of their storage assignment techniques
A genetic algorithm-based heuristic approach for storage assignment in pick-and-pass warehousing systems is proposed by J C.-H Pan et al (2015) In a pick-and-pass system, several orders are picked concurrently as a single batch The suggested approach seeks to optimize the storage assignment in order to reduce the amount of time and travel needed for order picking
Source: Internal of DB Schenker Implementing a comprehensive storage solution that includes u-shape shelving, drawers, board bins, and a solder-ball shelf can significantly enhance the capacity of your rack system while maximizing available space Here's a breakdown of the benefits and considerations for each component:
A storage location assignment mechanism for big distribution centers is proposed by Jimenez et al in 2020 The goal is to minimize travel distances during order picking and increase operational efficiency by allocating products to storage slots as efficiently as possible
The advantages of using a correlated assignment technique in order picking operations are covered by Frazele et al (1985) Using the correlated assignment technique, different orders are given to the same picker according to how close the objects are to being picked The authors contend that order pickers may have to go farther and experience inefficiencies as a result of using conventional order picking techniques like zone picking or batch picking They suggest using a linked assignment technique as a way to raise order choosing operations' general effectiveness
According to Y Zhang (2016), storage policies in a warehouse are the set of regulations that specify how inventory items are kept and arranged inside the building These regulations are essential for maximizing space use, guaranteeing effective inventory control, and promoting seamless warehouse operations
According to G Buxey (2006), there are a number of techniques that can be used to classify inventory items in class-based storage, including ABC analysis, XYZ analysis, or other criteria that are particular to the operating needs of the warehouse The process of classification aids in determining the volume, frequency, and criticality of each item, empowering warehouse managers to allocate storage in an informed manner
According to F Bindi (2007), class-based storage has a number of benefits First off, it makes effective use of available space by arranging popular or quickly moved commodities in convenient locations close to shipping docks or pickup locations This lowers order fulfillment travel time and boosts overall operational effectiveness On the other hand, less desirable places can be used to store slower-moving or less-demanding commodities, making the most use of the available warehouse space
Class-based storage has a number of benefits, according to F Bindi (2007) First off, by arranging high-demand or quickly-moving commodities in conveniently accessible locations close to shipping docks or pick-up locations, it enables effective space use As a result, order fulfillment trips take less time, and overall operational effectiveness increases Conversely, low-demand or slower-moving commodities can be kept in less desirable places to maximize the amount of warehouse space that is available
Murphy, L (2020), Class-based storage also improves picking and retrieval procedures When goods are arranged according to class, warehouse staff may move throughout the facility more quickly By concentrating on locating products within particular categories, they can shorten search times and improve choosing precision Increased productivity and order accuracy as a result eventually translate into happier customers
Jain, A and others (2015) Demand forecasting, which involves projecting future consumer demand for goods or services, is an essential component of inventory management and corporate planning It makes use of statistical models, market trends, historical data, and other pertinent information to forecast the anticipated demand for particular time frames Boylan, J E et al (2008) Businesses can decide on production, procurement, inventory levels, pricing, and resource allocation with knowledge thanks to accurate demand forecasts
- Efficient use of vertical space: U-shape shelving allows for vertical stacking, making use of the entire height of the rack
- Accessibility: Items on U-shape shelves are easily visible and accessible, reducing retrieval times and improving overall efficiency
- Versatility: U-shape shelves can accommodate various types and sizes of items, providing flexibility for different storage needs
- Weight capacity: Ensure that the u-shape shelves are designed to handle the weight of the stored items
- Accessibility: Consider the ergonomic aspects to ensure ease of access for employees
Source: Internal of DB Schenker
- Enhanced organization: Drawers facilitate the categorization and organization of smaller items, minimizing clutter and streamlining inventory management
- Space optimization: Drawers can be efficiently stacked to optimize space utilization within the rack
- Improved security: Lockable drawers provide added security for valuable or sensitive items
- Drawer weight limits: Be aware of weight restrictions to prevent overloading and ensure smooth operation
- Accessibility: Choose drawers with smooth gliding mechanisms for easy opening and closing
Source: Internal of DB Schenker
- Efficient for flat items: Board bins are ideal for storing flat items such as boards, panels, or sheets
- Accessibility: These bins allow for easy visual identification and retrieval of specific items
- Space savings: Board bins can be stacked to save floor space and maximize storage capacity
- Size considerations: Ensure that the board bins are appropriately sized for the items you plan to store
- Structural integrity: Opt for sturdy bins that can withstand the weight and dimensions of the stored items
Source: Internal of DB Schenker
- Dedicated storage: A solder-ball shelf provides a specific space for storing solder balls, preventing them from rolling or scattering
- Easy identification: Clear visibility allows for quick identification and retrieval of solder balls
- Space efficiency: Integrating a solder-ball shelf ensures that space is used optimally, preventing wastage
- Size and capacity: Choose a solder-ball shelf that matches the volume and dimensions of your solder ball inventory
- Accessibility: Ensure that the shelf design facilitates easy access to solder balls
Source: Internal of DB Schenker Overall Considerations:
- Space Planning: Prioritize a well-thought-out space planning strategy that considers the dimensions of each storage component and their optimal placement within the rack
- Employee Training: Provide training to employees on the efficient use of the new storage components to maximize their benefits
- Regular Maintenance: Implement a maintenance schedule to ensure that the storage components remain in good condition and continue to function effectively
By integrating u-shape shelving, drawers, board bins, and a solder-ball shelf, you create a comprehensive storage solution that not only increases capacity but also optimizes the overall functionality of the racking system
Conclusion
In conclusion, the exploration into the analysis and proposed solutions for improving efficiency in Intel's warehouse operations system has been driven by a recognition of the pivotal role that sales strategy plays in fostering competitiveness and ensuring sustainable development in the dynamic landscape of technological retail The focus on Intel Products, a reputable and evolving store offering premium technological products, underscores the significance of understanding and enhancing the warehouse's operational strategy
Throughout this thesis, the research objectives centered on conducting a comprehensive and practical analysis of the strengths, weaknesses, opportunities, and potential threats facing the warehouse, sales processes, and overall business operations at Intel Products Warehouse The ultimate goal is to provide a nuanced understanding of how the warehouse functions, delivers value to customers, and contributes to the broader business success of Intel
The scope of the study encompassed a detailed current state analysis, drawing from data spanning the first half of 2023 This involved identifying the strengths, weaknesses, opportunities, and challenges inherent in the existing operation strategy Moving beyond analysis, the report extended to propose improvement solutions aimed at optimizing the warehouse's performance These solutions could involve refining the system architecture and enhancing allocation processes, aligning with the overarching objective of advancing operational efficiency
In essence, this internship report not only delves into the intricacies of Intel's warehouse operations but also strives to offer actionable insights and solutions that can propel the business towards greater success By addressing challenges and capitalizing on opportunities, the proposed improvements aim to elevate the warehouse's contribution to Intel's overarching sales strategy, thus ensuring sustained competitiveness and development in the ever-evolving technological retail landscape.
Direction for further research
The exploration of Intel's warehouse operations system and sales strategy presents numerous avenues for further research Future studies could delve into the integration of advanced technologies such as artificial intelligence and machine learning to
64 optimize warehouse processes, assess customer-centric elements through surveys and feedback analysis, and investigate the resilience of the supply chain to disruptions Additionally, researchers might explore opportunities for enhancing environmental sustainability, evaluate the impact of warehouse operations on employee satisfaction, analyze global market dynamics, and promote cross-functional collaboration within Intel Long-term performance metrics, benchmarking against industry standards, and strategies for market expansion are essential areas for continued investigation, collectively aiming to refine and adapt Intel's warehouse operations in the ever-evolving technological retail landscape.
Limitations Of The Thesis
While this thesis endeavors to provide a comprehensive analysis and propose valuable solutions for improving efficiency in Intel's warehouse operations system, it is important to acknowledge certain limitations inherent in the study Firstly, the findings and recommendations are based on data collected during the first half 2023, and as such, may not fully capture the dynamic nature of the technological retail industry The scope of the study is also confined to Intel Products, limiting the generalizability of the proposed solutions to other contexts Additionally, the accuracy of the analysis is contingent upon the availability and reliability of data, and any constraints in data collection may impact the robustness of the conclusions Furthermore, the report's effectiveness is contingent on the successful implementation of the proposed solutions, and unforeseen challenges in execution could affect their practicality Finally, the perspectives presented in this report are subject to the understanding and interpretation of the researcher, and variations in interpretation may influence the applicability of the proposed solutions Recognizing these limitations is crucial for a nuanced interpretation of the findings and underscores the need for ongoing research and adaptability in addressing the complexities of warehouse operations in the rapidly evolving technological retail landscape
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