Report: Analyzing Value Chain Issues in XXX Limited's Warehouse

This report analyzes the operational issues within the warehouse of XXX Limited, a leading electronics organization in Australia. The study identifies key problems, including inefficiencies in the delivery chain, incorrect quantities of goods, and dispatching the wrong products. Through root cause analysis, the report uncovers issues such as a lack of effective ERP systems, inadequate employee training, and poor warehouse layout. Recommendations are provided to address these challenges, emphasizing the importance of implementing an improved ERP system, providing employee training, redesigning the warehouse layout, and introducing new machinery. The report concludes that a holistic approach is crucial for improving warehouse efficiency and customer satisfaction, offering actionable insights to resolve operational bottlenecks and reduce customer complaints.

Running head: VALUE CHAIN
Value chain
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to analyze the existing issues with the operations in the warehouse of
XXX limited. Analysis is being done to identify the major issues. Recommendations are also
being provided accordingly. It is been concluded that the effective implementation of the
recommendations will help to overcome the issues and enhance the effectiveness of the
warehouse.

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Table of Contents
Introduction......................................................................................................................................3
Identification of the issues...............................................................................................................3
Suggestions and recommendations..................................................................................................4
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................7
Appendix..........................................................................................................................................8

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Introduction
For the contemporary business organizations, supply chain management is an important
aspect to be considered in order to provide seamless and effective flow of the products in the
market. Xxx is one of the leading electronic organizations operating in Australia. They are
having 20,000 square meter of distribution centre from where they supply their products to the
end customers and wholesalers. However, in the recent time, they are having some issues in their
distribution center due to the which, more customer complaints are coming. This report will
analyze the data being gathered from their database in order to determine the issues and will
recommend solutions accordingly.
Identification of the issues
In terms of the complaint types, the top three issues being identified are the delivery,
wrong quantity and wrong product. Root cause analysis will be used in order to identify the
origin of the problems. Initiating root cause analysis to determine the issue with delivery shows
that the design of the delivery chain is not effective. The products should be in a chain process
which is not currently happening in the warehouse. One the other hand, the deliverymen are
receiving the products from the other side of the packaging department. Thus, it is involving
more time. Further investigation showed that Lack of transporting machinery in the warehouse is
also incurring more time due to manual transportation of the goods. Moreover, it is also being
seen that the staff are not even trained well to operate the existing machinery in the warehouse.
Another issue being identified is the wrong quantity of the goods being delivered to the
customers. Investigation shows that the outbound facilities are not effective in delivering the

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goods to the customer. Further investigation shows that there is a serious lag in coordination
between the customer representatives and the outbound employees. Thus, the exact customer
requirement is not been effectively transmitted to the outbound department. Delivering wrong
product is another identified issue. Root-cause analysis of this issue shows that lack of
coordination as discussed earlier is responsible for this. In addition, it is been seen that the
warehouse layout is not designed properly and due to this, wrong products are being dispatched
to the customers. However, investigation shows that there are no complaints being found from
the side of the CSR staffs.
Suggestions and recommendations
The prime aspect that should be considered in enhancing the effectiveness of the
operations in the warehouse is to implement an effective ERP system (Schniederjans and Yadav
2013). Root cause analysis showed that the existing ERP system being used in the warehouse is
not effective and is not well coordinated with all the employees in the operations. The existing
ERP system cannot able to transmit the information from inbound to the outbound facilities
effectively. Thus, implementing new and improved ERP system will help to enhance the
coordination in the warehouse (HassabElnaby, Hwang and Vonderembse 2012). Another
recommendation that is also important in enhancing the effectiveness of the ERP system is the
training of the employees in handing the system. Investigation showed that there is a lack of
training for the employees in handling the operation in the warehouse. Thus, it is important to
provide proper training to the employees to enhance their effectiveness and productivity.
The layout of the warehouse should also be changed and modified to increase its
effectiveness. The exiting layout is involving more time in releasing the goods. An ideal

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warehouse layout should be in a proper sequence (Accorsi, Manzini and Maranesi 2014). It
should be designed in such a way that, the goods will enter from the inbound facilities and will
go through the various departments in its way and finally will be released through the outbound
facilities. It will help to reduce the time being consumed in the process along with reducing the
probability of error in the process due to its sequential pattern. Another area of improvement that
should also be considered is the implementation of latest machinery in the warehouse (Hamberg
and Verriet 2012). This is due to the reason that lack of machinery in the warehouse is causing
loss of time due to manual transportation. Thus, initiation of transporting machinery will help to
transport the gods in large quantity at a time and in less time. Thus, the issue of late delivery can
be solved.
Data mining of the ERP data being received from the organization also shows that
customers have complained about receiving damaged goods also. Thus, initiation of the
employee training in effective handling of the operation will help to enhance the productivity of
the employees as well as decreasing the rate of error in handling the operations (Elnaga and
Imran 2013). New and improved technology is required for the packaging purpose also. This is
due to the reason that, few customers have complained about the quality of the packaging of the
goods. It also causes damaging of the goods in transit. Thus, initiation of new technology in
packaging will help to reduce the rate of damage in transit as well as enhancing the customer
satisfaction.
Conclusion
Having analyzed the data being received from the ERP system of the organization, it can
be concluded that a holistic approach is required to prevent the existing issues in their

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warehouse. Major issues being identified are the delivery of wrong products in wrong amounts
and more time being consumed in delivering the product. These issues are thus creating
dissatisfaction among the customers which is leading to increase in the number of customer
complaints. Thus, recommendations are being provided according to the issues being identified.
Effective implementation of the recommendations will help to enhance their effectiveness of the
operations in the warehouse along with raising the level of the customer satisfaction.

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Reference
Accorsi, R., Manzini, R. and Maranesi, F., 2014. A decision-support system for the design and
management of warehousing systems. Computers in Industry, 65(1), pp.175-186.
Elnaga, A. and Imran, A., 2013. The effect of training on employee performance. European
Journal of Business and Management, 5(4), pp.137-147.
Hamberg, R. and Verriet, J., 2012. Automation in warehouse development. Springer.
HassabElnaby, H.R., Hwang, W. and Vonderembse, M.A., 2012. The impact of ERP
implementation on organizational capabilities and firm performance. Benchmarking: An
International Journal, 19(4/5), pp.618-633.
Schniederjans, D. and Yadav, S., 2013. Successful ERP implementation: an integrative model.
Business Process Management Journal, 19(2), pp.364-398.

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Appendix
Other
Invoice Error
Quality of workmanship
Damaged
Poor Response
Packaging
Wrong Product
Lost In Transit
Wrong Quantity
Delivery
0 50 100 150 200 250
Total Complaint Types
Figure: 1 Total complaint types
PF6
PF9
PF11
PF15
PF14
PF3
PF2
PF12
0 10 20 30 40 50 60 70
Total Customer Complaints raised by
Product Family
Figure: 2 Classification of the product family