A system study on the warehouse operations of North Trend Marketing Corporation's Manila Warehouse

• Main Authors: Ang, Colin Royce D., Antonio, Anton Rafel V., King, Raymond Benedict J.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: System analysis; System engineering; North Trend Marketing Corporation; Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9135
• Institution: De La Salle University

North Trend Marketing Corporation is an authorized tire and lubricant distributor operating nationwide in 7 different branches around the Philippines. The company distributes several tires of all sizes for all kinds of vehicles being used in the Philippines. Tire brands distributed include Maxxis, Michelin, Presa, and CST. The Manila Tire Warehouse, handled by Manila Warehouse and Logistics Department, delivers to clients located within Luzon. The Manila Warehouse aims to accurately store and deliver high quality products to the utmost satisfaction of the company's clients within Luzon. After documenting the Manila Warehouse's system, a SWOT analysis was used to determine any problems within the company. The issues and concerns found by the proponents were ranked and prioritized using a WOT-SUG analysis. The highest ranked problem that the company was seen to have was the amount of returns due to nonconforming goods that deviated from the tolerable rate of 0.5% by 0.82%, incurring a total cost of P4,745,528.46 in the year 2017. This problem of returns due to nonconforming goods was prioritized and was considered to be the problem statement. With the main problem of the warehouse identified, why-why analysis is used to identify the root causes of the problem through interviews, research, and data analysis. The inital why-why analysis is validated and reconstructed for a final analysis on the root causes of the system. The root causes have been identified to be the improper tire inspection, dirty tires, high tire stacks, tire mishandling, and overlooking of tire spoilage. Alternative solutions are selected. The selected solutions are the addition of a new standard inspection process with inspection team, implementation of cleanliness job with employee rotation, new tire stacking policy, 5S housekeeping system, and color sticker application. All the solutions chosen were assumed to have an effectiveness of 90% to leave room for human errors as they are not unassailable. The proposed solution would then result in 90% reduction of cost incurred due to returns due to nonconforming goods. This would save the company a total amount of P4,326,755 annually. Based on the cost benefit analysis done, the payback period of the proposed system would be 0.020 years or 8 days.