Warehouse Management: Types, Functions, Activities, and KPIs

This document provides insights into warehouse management, including the types of warehouses suitable for Bata Malaysia's central warehouse, the functions of different areas in a warehouse layout, major activities carried out by the PAL warehouse in the Port of TanjungPelepas, and key performance indicators (KPIs) that illustrate PAL's superior service. The content discusses the importance of choosing the right warehouse type, the operations functions of different areas in a warehouse layout, the types of activities carried out by the PAL warehouse, and the KPIs that demonstrate PAL's excellent service. The document also includes references for further reading.

WAREHOUSE MANAGEMENT
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Table of Contents
1. Types of warehouse suitable for Bata Malaysia’s central warehouse....................................3
2. Explanation of the operations functions of the four areas of a warehouse layout:-...............3
3. Types of major warehouse activity carried out by the PAL warehouse in the Port of
TanjungPelepas..........................................................................................................................4
4. Two (2) functions performed by PAL warehouse in the Port of TanjungPelepas.................5
5. Two (2) KPI that illustrate PAL’s superior service...............................................................6
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1. Types of warehouse suitable for Bata Malaysia’s central warehouse
Bata Malaysia wants to increase its distribution in all over West Malaysia, by establishing a
central warehouse in Klang Valley. The integration between the cities through the Klang
Valley is very high. Also, it provides a very developed road network and the rapid transit
system and making the most convenient way for cars and buses. The sales of Bata Malaysia
is low throughout the year, though in some months the volume of the sales increases.
Contract warehouse combines all characteristics of both public and private. Also, this
warehouse provides the benefits of expertise, flexibility and many other things. So the
contract warehouse is the suitable central warehouse for Bata Malaysia to be built in Klang
Valley (Richards and Gwynne 2017)Because of the starting of the December the demand of
the production of Bata Malaysia is very high and also the starting of the school season when
all students have come to the store. But in other months the sale of the products is not quite
well so Bata stores all the products in the central warehouse in the Klang Valley. So they
arrange the products very well in this warehouse and also it cuts the total cost. So the
economic condition of the Bata will not effect. Contract warehouse provides better
transportation services and the return processing services to the Bata (Yener et al. 2019).
Therefore, they distribute many products to the Bata store.
2. Explanation of the operations functions of the four areas of a warehouse
layout:-
Seasonal goods storage: seasonal goods are the goods that fluctuate because of the demand
for the products due to the weather, some events and the holidays in the year. So the seasonal
effect of the goods observes throughout the year (Fielding et al. 2019). Finding out the
seasonal products and the trend in purchasing of the production will be helpful for the
company. Bata Malaysia stores some seasonal products in the central warehouse in Klang ,
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and when the customers demand these products, then it would not affect its sales. And there
will be no shortage of products.
Reverse logistic storage: Good reverse logistic services help the warehouse to reduce the
risk of return of the item by the better handling returns of the incorporating cost and also the
cost of the initial item (Hufschmid et al. 2017). This system helps the Bata Malaysia to track
products sold to the customers and return of the products in the warehouse which eventually
helps to reduce the risk of returns.
Quarantine goods storage: quarantine items are separated for the special and emergency use
and it is not available for the sale and the other requirements of the company. The Bata
Malaysia keeps separating its special products in the central warehouse in Klang Valley. Bata
does not sell this product to all of its customers. On the basis of special demand of the
customers this product has sold by Bata (Deng et al. 2018). The warehouse supports the Bata
to store special products and make it profitable for the company.
Warehouse aisles between storage areas: this system affects the efficiency of the operation
of any business and fulfilment of the assembly of the order (Atieh et al. 2016). The central
warehouse of the Bata helps to the operation of the shipping of the products from the
warehouse to the stores and also helps to make a layout of the warehouses.
3. Types of major warehouse activity carried out by the PAL warehouse in
the Port of TanjungPelepas.
Basically the warehouse has been made for the long term storage place for the materials. PAL
provides the services for Volkswagen for its part distribution in south-east Asia. The two-year
deal was signed between PALK & VW in 2016. It has set up the distribution centre in the
port of Tantung pelepasin Johor.
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The PDC operated by Pal is used to increase the reliability of the automotive parts delivery to
the distributor of the VW in South East Asia (Lyon et al. 2017). Pal provides the services of
the warehouse in Port of Tanjungpelepas. This requires:
i) Receive the parts of the all manufacturer all over the world and proper checking
the stability of the products.
ii) To check the preliminary quality of the products.
iii) Discard the products and also learn the activities of material storage such as the
exact location of the stock storage and warehouse management.
iv) Proper shipping and distribute the parts to the VW distributor.
4. Two (2) functions performed by PAL warehouse in the Port of
TanjungPelepas.
To improve the customer satisfaction of the VW’s Pal warehouse in the PTP will the cargo
shipments of the automotive parts. PAL’s distribution services provide the services to the
VW's distributor at the major city centre’s for ordering and receiving the automotive parts at
the most in two or three days. This develops the service level of the VW and also reduces the
service time of the products. Also the satisfaction level of the owner of VW’s also increases
(Baruffaldi et al. 2019).
Through the PAL warehousing process and distribution shipping process is by providing
these kinds of services to the automotive manufacturers in south-east Asia. PAL also display
the excellent ability on how to implement the possibility plan in the occurrence of the
unexpected situation.
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5. Two (2) KPI that illustrate PAL’s superior service
KPI is the performance indicator that evaluates or measures the value of the success of the
organization in a particular activity. This KPI indicator shows the two indicators that are
financial metrics and customer metrics to define the PAL’s superior service. PAL’s strength
in the automotive and machinery sectors is that PAL warehouse ships the product to the
VW’s distributor efficiently. The distributor services of the PAL enables the VW’s
distributor at the city centre to order and receive the parts at most two or three days .that
helps the profit of the organization VW’s. Also help to reduce the service time about two or
three days, consequently the satisfaction level of the vehicle owners also increase. The New
service by the PAL’s also reduces the inventory of the automotive parts which helps to the
distributor.(Deng et al. 2018).The PAL's ability in implementing the solution is the vital
attribute.
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Reference
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Fielding, Alex, Kevin C. Hall, Kirk H. KNIGHT, and Kimberly LEMBO. "Integrated
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Hufschmid, David, and Gordon Carter Collett. "Integrated warehouse management, shipping,
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