A system study on pinnacle dry warehouse operations of Jollibee worldwide service â logistics

• Main Authors: Maliwanag, Mark Richard, Ona, Mary Grace, Paez, Deniel Arc
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Jollibee Food Corporation; Warehouses > Management; Food > Storage.; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11089
• Institution: De La Salle University

Jollibee Worldwide Services Logistics is the logistics provider of Jollibee Food Corporation. As the logistics provider of the Jollibee Food Corporation, this company aims to successfully store and distribute items for the SBUs or Service Business Units of JWSL. These include Jollibee, Chowking and Greenwich. These SBUs serve as the clients of JWSL. JWSL warehouse serves as the central and only warehouse of JWSL. This warehouse is called the Pinnacle Warehouse. It operates continuously with two main operations: inbound and outbound. The inbound operations involve the delivery of items from suppliers into the warehouse while the outbound operations involve the flow of items outward from the warehouse to the stores for delivery. There are three different key performance indicators used to assess the warehouse performance. These are the Inventory Record Accuracy or IRA, Turn-Around Time or TAT and On-Time In-Full or OTIF. Based on the present system of Jollibee Worldwide Services Logistics, it was determined that the main problem was their unmet On-Time and In-Full key performance indicator. In order to solve this, a root cause analysis was done. It was then determined that the OTIF being unmet was mostly due to On-Time aspect, which was further analyzed until it was discovered that the root cause of the problem is the late start the loading because of the delay in picking the orders to be loaded. A combination of three alternatives was selected as a solution: implement a picked method alteration through the use of transparent plastic bag as a container in CLS picking, add new workers for picking operations, and implement a trucker swap policy for late truckers. The plastic transparent bag that would be used for the CLS picking would remove the assembly of the box that was in the previous system as well as help keep track of the items contained inside the transparent bag. A total of three workers would be added with regards to picking operations: two for CLS and one for bulk. This would help reduce the time needed for picking operations: two for CLS and one for bulk. This would help reduce the time needed for picking for both areas. The trucker swap policy for late truckers involves a fifteen minute duration wherein the trucker must arrive before his call time. If the trucker does not arrive within the said time before his call time, the late trucker is replaced with a trucker that is assigned to a route that would have to be dispatched at a later time. The late trucker would then be assigned to the vacant route. A proposed system was generated, which considers the adjustments needed to implement the recommend solution. The solution is proven to garner an annual savings of Php 750, 261, 16.01 minutes saved time per picker from the warehouse CLS picking operation and an improvement of 14.93 % in OTIF performance that will ensure renewal of contracts with their clients and avoid penalty charges from them if the solution is implemented.