A system study on the logistics and warehouse operations of Logistics Forwarding Company (LFC)

• Main Authors: Amurao, Daniel Eric C., Li, Charlie S., Valera, Gideon Noel S.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Industrial engineering; Logistics Forwarding Company
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7471
• Institution: De La Salle University

Logistics Forwarding Company (LFC) is an accredited international freight forwarder in the Philippines which imports various products from other countries. Currently, LFC is dedicated into importing and selling three brands of cement: 1. Halong cement 2. Buffalo cement and, 3. Lam Thach cement, all over the Philippines. Part of LFC services were delivering the product to its customer from their designated warehouses ensuring the best quality they can provide. Based on their present system, logistics and warehouse operations of LFC were assessed particularly their largest warehouse located in NSD compound at Subic Bay Freeport, Argonaut Highway, Olangapo, Zambales. Upon conducting SWOT and WOT-SURG analysis, it was seen that the company is facing unfulfilled customer orders with delivery deviated from the target of 2% by 3.61%. this result to a monthly opportunity loss of 234,394.88 pesos. By further analyzing the root causes of the problem, through the why-why analysis, interviews with some of the LFC personnel, work observation and time study, computation of KPI performances, Pareto analysis, it has been found out that four major root causes were linked to the problem—1. Scheduling system 2. Methods of unloading of supply 3. Late with the schedule 4. Delivery of expired products amounting to 93% of the total problem. Hence solutions were diverted with these four major causes. After assessing several solutions through Kepner Tregoe decision analysis backed up with simulation results, four major solutions were proposed: . range-constraints scheduling policy 2. Night-shift truck scheduling and weekend extension 3. Assigning two forklifts through facility lay outing and, 4. Poka-yoke system. This proposed system constitutes a new concept of scheduling policy that is proven to be more systematic for the processes of the company, quicker way of unloading the supply, easiness of material handling inside the warehouse, and better KPI performances. With the application of cost and benefit analysis in the system, a net cash flow of ±454,481.80 per month will be obtained. Moreover, implementing the solution will have resolved 78.10% of the unfulfilled customer orders of ±3,413,745 total opportunity loss, increased truck efficiency to 73.39%, and decrease the inventory turnover by 11.08 days. Investment cost were solved to be redeemed after 0.2308 months.