A system study on the warehousing and outbound processes of Ninja Van

• Main Authors: Barangan, Luis Antonio B., Cordova, Felix Richard C., Jr., Tan, Marc Kevin Y.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Delivery of goods; Scheduling; Business logistics; Root cause analysis; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18655
• Institution: De La Salle University

Ninja Van, Inc., is a multinational logistics startup and is Southeast Asia's fastest growing last-mile logistics company, particularly for e-commerce clients. Originating from Singapore, the company now operates in 5 other countries. Rapidly growing in demand over the course of its growth, the company has delivered over 17 million parcels worldwide, delivering 2 million parcels a month and gaining over 6,000 merchants as clients. In the Philippines, the country has over 500 employees and 88 station hubs, effectively covering 91.9% of the country. The company aims to eventually cover the entire nation and execute deliveries without failure. In 2018, demand is still expected to grow. Growth from January to September 2018 parcels delivered saw a growth from 388,538 parcels to 2,260,918 total parcels pushed off. After constant site visits and data analysis, the WOT-SUG method was used to analyze several observed problems in the company's warehousing and outbound operations. The results of the WOT-SUG indicated that delayed deliveries was the most prevalent problem. The amount of delayed parcels from January 2018 to September 2018 is 177,872 out of 1,025,307 parcels which deviated from the tolerable rate by 2.35%, costing the company an average loss of ₱546,769.55 per month. Given the large costs incurred with the subsequent loss of sales, this was identified to be the most serious and urgent issue among the company's other issues. This would, in turn, lead to becoming the problem statement of the study. To investigation in finding the leading causes of the problem was done with the generation of a Why-Why diagram. With this, the main causes were found to be the failure of deliveries and late departure of riders from the hub. In developing alternatives and decide on a solution, Kepner Tregoe Decision Analysis will be utilized to analyze all developed alternatives. The alternatives chosen to effectively engage the problem were proper scheduling of deliveries through software development and 5S implementation. Furthermore, an implementation plan and cost benefit analysis was developed, with the total costs for the implementation involving P343,3 78.00 in initial costs and P91,295.16 in recurring costs. The benefits of the solution involve a total benefit of ₱4,419,906.55, with a total NPV of ₱3,666,773.78.