LSC801: WCS Warehouse Audit Report - Storage & Logistics Analysis

This report presents a comprehensive audit of the WCS warehouse, evaluating various aspects of its operations. The audit covers general storage and warehouse practices, including security measures such as perimeter fencing, surveillance cameras, and security protocols. It examines the implementation of the 5S methodology, warehouse layout, and the use of IT systems, including WMS and data backup. Equipment maintenance, planning processes, and quality control procedures, including inbound and outbound processes, are also assessed. The report further analyzes the stock location system, communication strategies, and green/sustainability practices. Health and safety practices, risk assessments, training programs, and warehouse performance metrics are evaluated, with a focus on performance awareness, data capture, and performance management procedures. The report concludes with recommendations for improvement, addressing areas such as IT system upgrades, and enhanced security measures to improve overall efficiency and operational effectiveness, especially in response to the global 2020 Coronavirus pandemic.

Running head: WCS warehouse report
WCS warehouse report
Student’s name
Institutional affiliation
Date

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Executive summary
Like any other business, warehousing is an essential business in the economy. It is
enriched with activities and which are tiresome. The warehouse is the determinant of most of the
firms in the economy of a nation. A warehouse must have all the required resources, and it must
meet the set standards. Ensure quality service in a warehouse, and frequent audits are conducted.
Here comes an audit report for a virtual warehouse visited. The discussion will internalize five or
six parts that have audited. The inspection was done based on external areas, internals areas,
systems and equipment, warehouse processes, Health and safety, and finally, housekeeping and
performance measurements.
Contents

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WCS warehouse audit report...........................................................................................................4
Company profile..............................................................................................................................4
Audit................................................................................................................................................4
General storage and warehouse practices........................................................................................5
Security........................................................................................................................................5
5S methodology...........................................................................................................................6
Warehouse layout.........................................................................................................................6
IT systems....................................................................................................................................7
Equipment maintenance...............................................................................................................7
Planning.......................................................................................................................................8
Quality process.............................................................................................................................8
Stock location system...................................................................................................................9
Communication..........................................................................................................................10
Green/ Sustainability practices...................................................................................................10
Evaluation of the warehouse health, safety practices, and risk assessment...................................11
Training......................................................................................................................................12
Register and practice..................................................................................................................12
Warehouse performance............................................................................................................12
Performance awareness..............................................................................................................13
Data capture...............................................................................................................................13

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Performance Management procedures..........................................................................................13
Planning.....................................................................................................................................13
Coaching....................................................................................................................................14
Reviewing..................................................................................................................................14
Action.........................................................................................................................................14
Conclusion and recommendations.............................................................................................14
References......................................................................................................................................15
Appendix 1#...................................................................................................................................17
WCS warehouse audit report
The audit is a quality assessment tool that ensures scrutiny of all the warehouse activities.
Moreover, it applies to all other business for quality measurement. It helps the management to
identify the upcoming challenges and also measure the quality of their effort. It determines
where the team should improve. It also applies to all transaction records, and hence it ensures
proper resource utilization (Beck, Francis, & Gunn, 2018). The purpose of this report is to outlay
all activities carried out in the WCS warehouse. WCS is a third-party logistics service provider.
It is specializing in temperature-controlled storage. On a brief history of the company, it was

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established in the 1980s, and it has been one of the leading innovators in the long term storage
industrial sector.
Company profile
WCS works under define policy as a distribution center that is demand-driven. It is long
term storage, which is also a supply-driven. It is situated on the south island in New Zealand.
The company deals in the room of a variety of agricultural, marine, horticultural, and some
processed products used in manufacturing processes. After storage, the goods are therefore
distributed to both international and domestic markets. It is closely located to the heart of the
Tasman fruit-growing region (Tawiah & Boolaky, 2019). Proximal to the port if Nelson, the
largest fishing port.
Audit
We managed to visit the company for an inspection, and a lot of information was
extracted. The company has several operating departments. Routines and official managing for
every sector. For a company to reflect good results or quality output, there is a need for
organized management. We audited the most crucial department that will always determine the
service provided to the customers. The company culture promotes innovations and inventions for
better services. Before digging deep into the main audit parts, the company has a factor
significant enough to motivate the workers. The company ensures salaries are paid in time, and
there is increased pay on the overtime (Nash, 2020). The company entirely supports workers and
has covered their lives, and hospital bills are catered. All the workers report direct to the chief
executive officer, and therefore there is immediate feedback. Those are some of the indicators of
a good management team. And hence success is adopted and well planted in the organization.

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The audit was performed in terms of sectors, and each industry was treated as an independent
variable. The audit checklist is attached as appendix 1.
General storage and warehouse practices
All the company practices and storage factors were audited. The following aspects were
considered.
Security
The company has a very tight security day and night. The security department has
ensured that external is well secured with perimeter fencing, security gates, and Barrie's, which
are in good order. The perimeter wall is made of thick concrete and a live wire on top to ensure
no access to unauthorized persons. Security is very crucial since a warehouse contains lots of
expensive customer goods (Goyal, Routroy, & Singhal, 2019). The company has also installed
security lights. The security guards are vigilant about any access attempted by any suspected
person. The company has enhanced surveillance cameras all over the storage. It has both hidden
and seen cameras for top evaluation and monitoring of the company activities. The company is
also sensitive to any fire outbreak. It has several LPG gas and diesel for MHE kept in a suitable
location for safety. It has intruder alarm systems installed and inspected frequently. All exits are
very secure, and stock is adequately protected from theft and pilferage.
5S methodology
The company uses a five s method to organize warehouse activities for customer
satisfaction (Richards & Grinsted, 2020). The system methodology is utilized during the
handling of the goods in the company. The process begins with the sporting goods out to identify
the grades and qualities. After sorting out, they are now put in order depending on the ability of

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the products to be standardized. After straitening, the shining products are now put into the
standard for quality measures and then offered to the customers for sustainability.
Warehouse layout
The warehouse layout has the following sectors well laid out for operation purposes. It
has loading and unloading sectors in place. A reception area, storage area, picking area, and a
dispatch area. During auditing, the five regions were found to be well organized and spacious
enough to allow for the related operations.
IT systems
The company is currently operating under fourth-generation technology. It has installed
security cameras. The goods are coded with cordless sensitive codes, which enable them to be
monitored in the warehouse (Giama, Manoloudis, & Papadopoulos, 2020). The company has a

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system of network communication. It has machines and transport vehicles. There installed alarm
systems.
There are warehouse Management systems. The systems are adequate for the current operations.
No voice and scanning detectors. Data backup system with daily update and separate data store.
The company needs to launch fifth-generation technology, which will ensure all the operation
speed is improved. The company has a plan to establish an online catalog that will provide
clients can see the available services and the open space for convenience.
Equipment and maintenance
WCS operates based on a 24-hour notice from customers and plan their resources based on past
year seasonality trend and concluded contracts. To have the flexibility and right quantity of staff
for their seasonal operations, especially for seafood products (fish season and high-volume
operations), they balance out permanent forklift drivers with temporary ones, being flexible in
resource planning. Thus, they can switch from five days/week, eight hours/day operations to
seven days per week/twenty-four hours/day regime with short notice. According to WCS, they
encounter significant volatility in arrival by hours, as trucks are not coming on time. They also
wish that container movements (between seaport and WH) could be more equally spread by
weekdays for their side-lifter capacity optimization and human resources better planning.
Put away is performed based on empty rows, chambers data from WMS, and based on
their decision where to allocate stock to have separate product storage by clients (preferred not to
mix stock, especially, of similar products). They have a considerable amount of re-stacking
activities for seafood products, as they come loose in containers and need to be shipped back
free, too, but are stored on pallets in racks. Also, they may have to handle a pallet twice in a

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freezer, not stretch wrapped and after wrapping, changing storage location, leading to double
handling.
The mechanical handling of the equipment is maintained to favor the excellent condition
of the material. The staff has a correct license for type truck operated. There are responsible staff
trained to perform MHE. The MHE is serviced regularly with the service and repair records well-
kept and up to date. The lifting equipment is inspected every six months. All defects are
reported to the employer immediately. Safe working load limits are strictly observed for the
safety of the material (Kashmanian, 2019). The equipment is alternatively used, and the company
has never faced chain breakage out of the failed machines.
Planning
There is contingency planning for risk mitigation. All contingency plans are recorded for
all necessary parts. The equipment downtime is registered to ensure no risks during operation.
System downtime is also recorded for improvement and decision making. Labor issues are
recorded and handled by the management team for necessitating the working environment.
Supplier issues are also recorded and felt with the management team to ensure there is an
excellent working regime (Chang & Stone, 2019). The emergency contacts are listed. It is kept
exposed to all the workers for immediate response in case of any risk occurrence. The
contingency team is readily available
Quality process

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There is an inbound process manual available for all the workers to know their roles.
Vehicle booking in the system is well utilized. Vehicle arrivals are scheduled for order and
priority. There is a pre-notification of goods to be received (Rocchi et al., 2018). Vehicles are
also immobilized during unloading. There are proper delivery instructions issued right at the site
before distribution. They are in multiple languages. And cars are immobilized during unloading
for safety purposes. The inbounds goods have instructions on handling. The dock area is bright
and of stored materials obstruction. There is sufficient stock of empty pallets available. And the
palate space is ample the pallets are useful for holding goods. There is adequate space to lay
products for checking and repackaging. There is a process to identify pallets for docking goods.
There is an area set aside for dispatching of the cross-docking pallets. The received pallets are
recorded. A system checks the production quantity. The log of supplier non-conformance is kept,
some of which are incorrect paperwork, quantities, products, condition of goods, packaging, and
pallet overhang. There is sufficient handling of equipment. The handling equipment system is of
a high standard and is tailored to ensure no wastage of time and resources.
The number of stock stored is managed, and the number of layers of pallet stacks high is
depended on the type of goods to be stored and the available space. However, some shelves do
not allow racking. The process is continued with the recording of the themes to stock. There are
quarantine areas for non-compliance. The quarantine areas are kept to curb situations like the
covid-19 outbreak. The company has isolation chambers for both goods and people suspected or
imported from affected areas. The coronavirus outbreak has a tremendous negative impact on the
business, and therefore changes are needed between the situations. The quality control area is
primarily provided and fitted with the appropriate systems. The non-conforming stock is dealt
with immediately.

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Stock location system
The high value goods are stored securely, and the stock location is identified using
operational bar codes that are cordless. Non-moving products are regularly reviewed; there is
perpetual inventory taking place. The stock counting accuracy is measured, and the systems are
maintained frequently. The errors are thoroughly investigated and highly avoided. Location IDs
are marked clearly. The system management directed put away. The FIFO stock rotation is
followed correctly (Alfi & Triyani, 2019). The goods are best before the date stick management
system is observed. There is a double interleaving undertaken. The system slotting is used
efficiently. The random location system is used. The stock is transferred between locations based
on the ABC analysis. The location cubes are well utilized. With racking of some goods. The
space utilization is closely monitored to ensure no wastage. The part pallets are consolidated
where possible. Product tacking is enhancing to ensure there is no out of stocking for reliability.
The damaged items are identified during the quality inspection and dealt with immediately.
Details are stored such that they do not need overhung pallets. The company has a stock
locations systems.
Communication
WCS has incorporated employees' internal communication boards. The induction board
informs the employees about the main hazards and risks. The site team, fatal disease information
i.e., Covid-19 outbreak. The personal protective equipment like a minimum requirement. There
is a board for tracking the leading key performance indicators. The other communication
department is the third board, which is responsible for planning staff vacation. During lunchtime,
the urgent updates are announced. (Henry et al., 2018). The company has typically been
embracing both vertical and horizontal systems of communication. The vertical transmission

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ensures directives from the topmost official are prioritized. The smooth communication is
passed between the same levels of management.
Green/ Sustainability practices
For sustainability, the company has ensured there are efficient building heating systems:
controlled, monitored, and turned off when the warehouse is not in use. Eco lights are also used,
and the views are also switched off when the area is not in use. The waste receptacles at the end
of each aisle.
Moreover, there is a process for disposing of surplus packaging. It is sold locally for the
maintenance of the inventory. The waste disposal arrangement is in place and closely monitored.
Goods like cardboards, stretch wrap, and papers are recycled. The resource management act of
1991, which states that there should be smart consideration of the discharge of contaminants into
water, air, or land, is ensured—the action of hazardous substances. And the new organisms’ act
of 1996 is observed (Tsatsakis et al., 2017). The company provides no waste disposal to the
water earth or air to ensure no environmental pollution.
Evaluation of the warehouse health, safety practices, and risk assessment
For safety and health-related issues and practices, the workers are aware of the following
regulations which guard the operations of the company and legislation practices as well:
 Health and safety at work act 2015 of new Zealand (Sissons, 2016)
 Ensure safe stacking and storage based on the best practice guide of 1999 (Shelley,
2019).
 Ensure signage for premises storing hazardous substances and harmful goods

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 There is a code of practice for manual handling, and the team is aware of the system.
Failure to obey the workers is accountable for their mistakes, and hence the can be fined
or fired.
 The forklift has an approved code of practice to avoid an accident during operation,
which may result in an accident.
 There are a power-operated elevating work platform and the appropriate power backups
to avoid accidents in case of a power cut out.
 The workers are advised to work safely and ensure minimal mistakes to zero units.
By knowing the requirements of the system, workers can work appropriately. They help avoid
risks and accidents.
The warehouse safety policy document is available for inspection and displayed to ensure
no safety measure is neglected. The risks reassessed, and the records are inspected frequently.
There are adequate updating of the near-miss records, accident booklets, among others. There are
visitors to record books for signing. All visitors are subjected to inspection before entering the
premises. And the place is restricted to unauthorized persons. The company has monitoring
devices all around.
Training
The company sponsors workshops for the workers depending on the department of
specialization or operation. There is also annual training for the new workers. And even the
experienced workers are trained for the update on trends and innovations. The training
ensures all the workers are critically aware of what they are expected of from the objectives.
It is also tailored to ensure they know how to achieve the goals and all of the alternatives.
Staff is trained regularly, and accurate records of such pieces of training are kept in a

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register. For instance, there are specific requirements by the United States Occupational
Safety & Health Administration (OSHA) concerning forklift operator training and license.
Register and practice
All workers and persons dealt with are registered with the company care department for
accountability. The company has different registers for all the entry departments. The new
vehicles are also recorded, and also, the original goods are registered for tracking purposes
(Minassian et al., 2019).
All assessment is done by the quality management team, which ensures high quality
standards are kept with the company. The workers' records are also added to determine whether
there is enough workforce for any innovation.
Warehouse performance
The company's performance is measured. The production is indicated through different
aspects. The first aspect is the cash inflow and the profit margin. The WCS has now kept a
record that none of its competitors has achieved. The profit margin is currently raging between
25-30 percent (Balk, de Koster, Kaps, & Zofío, 2017). The profit is maintained through the
eradication of the overheads. The company has ensured that the chain of supply will be direct. It
means that the company will directly deal with its customers to maximize profits. The company
has kept minimum inventory safe on the inventory costs.

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Performance awareness
The company ensures that the workers are stakeholders are aware of the company's
performance. Excellent performance has been motivating the workers, and hence no losses are
frequently recorded.
Data capture
The company deals ultimately with customers, and thus there is immediate feedback. The
management team, with CEO having all the officials in the lower rank reporting to him, has been
able to get very reliable information. The company, therefore, offers gifts for workers who have
pregnant and imperative ideas (Loomis, Wallace, Weisenburger, & Janky, 2018). The awarding
is based on the level of the innovations the worker has availed. The views are reported directly to
the CEO, who works closely with the financial officer and technology department.
3. Performance Management procedures
The company has a four-step management procedure. The process begins by planning,
coaching, reviewing, and finally, action. The steps can be explained below.
WCS performs weekly data capturing of the following information: Volumes handled, # of
pallets processed, containers loaded, receipts, person-hours used, claims closed vs. total and
other useful statistics; energy used (electricity). They monitor their performance via key
performance indicators (KPI) board, reports, and track the following main themes. Safety: lost
time injury (sick leave hours), accidents (staff injuries), near misses (dangerous conditions or
behavior notices), incidents (equipment involved). Quality: non-conformities raised, closed,
open; DIFOT (delivered in full on time): actual performance vs. planned, traced separately for
big clients, like Farm-Terra, for marginal products, like, seafood, for high potential costs

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operations, like, devanning of containers (seaport demurrage possible fees), with the usage of
ABC (activity-based costing) classification and prioritization, to trace activities that impact their
business most; Inventory: random cycle counts every day: actual inventory vs. stock records;
People: planned vs. actual absenteeism. Based on captured statistics and KPI boards, they
analyze their performance in three main aspects (we were not provided with copies of such
analysis but have been told about it). Financial, productivity: volumes handled vs. workforce and
electricity consumed/used; Safety and quality of their operations; Customer service level and
client's obligations. Their regional manager was proud to give examples of workforce
optimization (described earlier) and energy usage reduction. Sometimes he referred to quick
wins like establishing a rule to keep refrigerated doors always closed (and installing open doors
sensors).
He was proud to refer to the so-called bottom-up approach of management when staff comes up
with improvement opportunities and suggestions, various initiatives. An example of this was the
usage of rubber mats in battery charging room for optimized battery changing procedure (safer
operations and longer battery lifetime). During his eighteen months in the position, be managed
to reduced WH's fixed and variable costs substantially, which made their fees more attractive to
customers, and the WCS Richmond site is prospering financially. Based on what we saw and
what their regional manager has told us, the following processes are the source of competitive
advantage for WCS. Safety and quality systems; Capacity and ability to handle and store: a wide
choice of storage options and types nation-wide; Usage of innovations and leading-edge
technologies in equipment, processes, and constructions; Customers relations and customization;
Efficiency in workforce usage (ten permanent forklifts drivers for sixteen thousand pallets
storage vs. five for one thousand pallet storage in another WH we visited for an audit);

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Environmental and financial sustainability; Ability to measure and monitor their actual
performance and set challenging targets; Expertise and motivation of their team.
Planning
Planning takes place in three phases. The stages are defining stage where the human
resources and management has to comprehend long and short term goals. Identify the key
objectives and develop are well-stipulated objectives to be assessed. Goals are set very clear and
detailed. After defining the system, the employees are now given a chance to provide input on
the materials. And give feedback on whether the decision is appropriate. After all, they are the
people to work with the choice (Faber, De Koster, & Smidts, 2018). They now help the company
achieve the set objectives. After the feedback from the workers, the management team can soon
approve the resolution.
Coaching
The company can organize a meeting to discuss the set objectives, and the coaching
process takes place. The company now provides the necessary training and coaching solutions.

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The accountability is always made positive and favorable to the employees so that they will be
motivated to take part. Solicit feedback on both sides is also discussed. If they are viable, the
process continues. There is now revisiting the objectives and fundamental approaches. The
process involves reviewing employer performance and the entire system. The production is now
laid open to human resources and management.
Reviewing
Reviewing is based on employee performance. They are referred to as performance appraisal.
There are monthly check-ins to view the employees' performance. The performance process is
also considered and evaluated. The purpose is to ensure that all the steps were met and all aspects
are factored. The overall goals completion are also viewed. Actionable feedback is given after
the appraisals.
Action
The excellent work and we'll performing employees are awarded and recognized. All
employees are allowed to explain and account for their level of operational performance. After
awarding the employees together with the performance Management team usually set the next
year's stage of production, and that marks the end of the performance cycle.
Conclusion and recommendations
The company has a well-organized layout and operational systems. All departments
conspire to achieve the company objectives. The company uses the discrete simulation model to
scrutinize problems causes whenever they occur. The company has several units of operation,
each with a sand alone management team for specialization.

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Recommendation #1. Risk management: the company should now realize that the global
pandemic coronavirus, which is highly contagious and therefore reduce its activities and
population. The company should recognize that due to this situation, most of the consumers are
affected financially, and Health hence should ensure they provide personal protective equipment.
They should create more rooms for isolation in case of any suspected case.
References
Alfi, R., & Triyani, W. (2019). Design of stock location database system for optimizing the stock
accuracy of beverage company packaging warehouse. Industria: Jurnal Teknologi dan
Manajemen Agroindustri, 8(2), 117-132.
Balk, B. M., de Koster, M., Kaps, C., & Zofío, J. L. (2017). An evaluation of cross-efficiency
methods applied to measure warehouse performance. Christian and Zofío, Jose L., An
Evaluation of Cross-Efficiency Methods, Applied to Measuring Warehouse Performance
(December 6, 2017).

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Beck, M. J., Francis, J. R., & Gunn, J. L. (2018). Public company audits and city‐specific labor
characteristics. Contemporary Accounting Research, 35(1), 394-433.
Chang, Y.-T., & Stone, D. N. (2019). Proposal readability, audit firm size, and engagement
success. Managerial Auditing Journal.
Faber, N., De Koster, R. B., & Smidts, A. (2018). Survival of the fittest: the impact of fit
between warehouse management structure and warehouse context on warehouse
performance. International Journal of Production Research, 56(1-2), 120-139.
Giama, E., Manoloudis, A., & Papadopoulos, A. M. (2020). Towards integrated energy and
environmental management of commercial buildings: The Onassis Cultural Centre
(OCC) case. Paper presented at the IOP Conference Series: Earth and Environmental
Science.
Goyal, S., Routroy, S., & Singhal, A. (2019). Analyzing environment sustainability enablers
using fuzzy DEMATEL for an Indian steel manufacturing company. Journal of
Engineering, Design, and Technology.
Henry, P. S., Barnickel, D. J., Bennett, R., Gerszberg, I., Barzegar, F., & Willis III, T. M. (2018).
Method and apparatus for arranging communication sessions in a communication system.
In: Google Patents.
Kashmanian, R. M. (2019). Company engagement with supply chains to protect biodiversity and
rare, threatened, and endangered species. Environmental Quality Management, 29(2), 7-
35.
Loomis, P. V. W., Wallace, G. C., Weisenburger, S. D., & Janky, J. M. (2018). Mobile
ionospheric data capture system. In: Google Patents.

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Minassian, C., Williams, R., Meeraus, W. H., Smeeth, L., Campbell, O. M., & Thomas, S. L.
(2019). Methods to generate and validate a Pregnancy Register in the UK Clinical
Practice Research Datalink primary care database. Pharmacoepidemiology and drug
safety, 28(7), 923-933.
Nash, R. (2020). Tourism in peripheral areas: the use of causal networks and lesson drawing as
analytical methods.
Richards, G., & Grinsted, S. (2020). The Logistics and Supply Chain Toolkit: Over 100 Tools for
Transport, Warehousing, and Inventory Management: Kogan Page Publishers.
Rocchi, R., Mascini, M., Sergi, M., Compagnone, D., Mastrocola, D., & Pittia, P. (2018). A
crocins pattern in saffron detected by UHPLC-MS/MS as a marker of quality, process,
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Shelley, M. (2019). The Care and Handling of Art Objects: Practices in The Metropolitan
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Sissons, J. (2016). A bad day at the sausage factory: The Health and Safety at Work Act 2015.
New Zealand Journal of Employment Relations, 41(2), 58.
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Tsatsakis, A. M., Nawaz, M. A., Tutelyan, V. A., Golokhvast, K. S., Kalantzi, O.-I., Chung, D.
H., . . . Yang, S. H. (2017). Impact on environment, ecosystem, diversity, and Health
from culturing and using GMOs as feed and food. Food and Chemical Toxicology, 107,
108-121.

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Appendix 1#

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TOTAL SCORES
SHEET AUDIT 1 AUDIT 2 AUDIT 3
DATE
EXTERNAL 74
INTERNAL 1 89
INTERNAL 2 89
INTERNAL 3 84
INTERNAL 4 67
EQUIPMENT 78
PLANNING 40
INBOUND 90
INBOUND 2 & STOCK 66
PUTAWAY & STORAGE 85
PICKING 85
DESPATCH & HOUSEKEEPING 85
H & S 80
H & S 2 85
Total 1097