Logistics Efficiency Development in Distribution and Damage Control
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S
S -V -M -S strongest m -Very good strategic presence in m -In policy m Opportunity and
increasing standard of leaving prospect in BD -In washing powder economies of scale driven locost leadership can make UBL monopolist -Unilever can launch its high-end brands in BD -Price of dollar increase which decline the -Due to high inflation people losing their -Very high competition on hair care and herbal kin care Brands -Bangladesh's emerging economy -Unilever food and beverage has got very good
-Entrance of regional and global FMCG brands profitability purchasing power. s 31
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Append dix 2 Detail M Meaning of U Unilever Log go: In 2005, logo was story of brands, t represent Unilever de s also planne Unilever an the idea of ted below. ecided to cha ed to match w nd vitality. It f vitality an ange their lo with the 75th t brings tog nd the benef
ogo to repres h anniversar ether 25 dif fits Unileve sent their ne y of the com fferent icons er brings to w theme of mpany. The n s expressive o consumers energy. The new logo tell Unilever an s. The icon e new
ls the nd its
s are
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Appendix 3 Categories of UBL Brands of Unilever Bangladesh Categories of UBL Personal Care Home appliance Home care Water filter Soup
Tea Household Care Fabric Wash Personal Product
Hand Wash Body wash Oral care Deo Hair Care Skin Care Personal Wash Food &Beverage
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Appendix 4 Customer Development Department Structure Customer Development Director Regional sales manger(RSM) Customer Development operation manager Trade category manger
Merchandising Manager
Trade marketing manager
Rural Business Manager
Intern (My
position )
Territory Manager
Area sales manager
Sales Training Manager
Project manager Sales
Administrative manger
Sales analysis and reporting manager 36
Appendix 5 Types of Chanel Urban general Store Urban Neighborhood Grocer Urban Channel HPC Tong Urban wet market Grocer Priority cannel Rural wet market Grocer Rural
channel Rural Neighborhood Grocer UBL
Chanel Emerging Chanel
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Shoping Complex Modern Trade Whole saler Rural cosmetic store
Chairman & Managing Director
Director
Supply Chain
Director Brands & Development Director
Customer Development
Director Human
Resources
Director Finance
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Appendix 6 Channels of Unilever Bangladesh Limited
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Appendix 7 TPM Guideline TPM at Warehouse Background Warehouse is a heart of a distribution house. So it should be maintained efficiently. Mismanagement in warehouse can be a major cause of failure for a distribution process. A proper distribution house requires adequate space to handle the stocks efficiently. There is two processes through which we can maintain inventory at ware house. One is “First in first out (FIFO)” and the other is “Last in first out (LIFO)”. LIFO is a typical stocking method for items that have no 'sell-by' date associated with them. On the other hand items which have expiration should be maintained FIFO method while stocking. Unilever business is growing at a double digit rate in last 6 years which has been the accumulated result of distributors’ individual growth. In this consequence distributors stock cover is increasing in every year which in turn require more space in warehouse. But reality is cost of real state is increasing massively in last few years which is affecting the investment of our distributors. In this circumstance we need to think something new to manage the inventory in a better way without involving huge cost. Space optimization becomes the most urgent action to overcome the crisis. To optimize the space and improving the efficiency at ware house we need to implement the TPM process.
TPM is a maintenance process developed for productivity. Goal of TPM is continuously improve all operational conditions, within a process, by stimulating the daily awareness of all employees. TPM will provide practical and transparent ingredients to reach operational excellence. Objective of TPM at warehouse 1. Create warehouse within warehouse 2. Efficiency improvement 3. Better management of FIFO method 4. Damage control 5. Pilot period: 40
August – October 2010 in must win geographies (Area Head Quarters) TPM at Warehouse Warehouse condition
The warehouse should preferably be constructed of RCC. The floors of the warehouse should be made of concrete or cement and be very smooth. The walls and the floors should be moisturizer proof and wooden palate should be out on the floor, so that the products do not get damp.
If for any cause, the walls get dampen, then wooden partition have to be put up between the wall and the stock so that the products do not get damaged, and the products have to be stored at least 6 inches distance from the wall. Ventilation & Lighting Warehouse should be a well ventilated building with exhaust fans and lights.The vents should have wire mesh for insect protection. The exhaust fans must be on during the night and throughout the day during monsoon. Ventilation is preferred on the upper half of the wall and the vents should be covered with mesh to stop insects from flying in.Warehouse should be well illuminated during working hours and minimally illuminated at night. It has to be seen that rain water does not seep in through the ventilation.
If it is not possible to install exhaust fans in the warehouse, then ceiling fans should be put up to keeps air circulating within the warehouse.
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Electric Cable
All electrical wiring must be concealed. There should be no loose hanging wires. Exception If it is not possible for the electrical wiring to be concealed, then wires should be sealed using PVC pipes.
The products should be stacked by creating separate aisles and the aisles should be properly marked. There should be free pathways within the warehouse so that the stocks can be kept and brought out without other products being removed/ relocated.
Warehouse Markings
A floor plan should exist on a board, and placed on the outside wall of the warehouse, for everybody to understand and operate. A floor plan will definitely facilitate storage retrieval and make a newcomers life easier.
42 Floor Plan Board
Rexona
ORAL
febouy
HHC
FOOD FOOD
SKIN
Figure: Sample Floor Plan Stack height marking There should be two marking indicator on the walls for easy understanding to maintain the standard height. There should be green marking at 1.6m and a red marking at 2.15m height. Under no circumstances the red marking should be crossed.
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List of damaged stock and Stacking Norm List of expired and damaged stock should be hung in the warehouse along with the stacking norms
Stickers should be hung in the wall stating the brand/SKU that should be stacked.
There should also be no smoking markings on the wall to deter smoking.
There should be clear marking indicating the fire exits or exit for emergencies. The place where the fire fighting equipment is kept should be marked.
The list of the fire extinguisher maintenance schedule should be hung with the fire extinguisher and maintained as per the predetermined schedule. Floor On the floor each row and pallet should be numbered to help in stocktaking as well as to follow FIFO. The floors should be marked for proper placement of pallets.
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Bin cards are absolutely essential. A bin card should consist of the following information: Brand/SKU name, quantity, date of entry into warehouse, and indication if multiple SKUs are there in the same stacks. The date of entry will help to maintain FIFO.
On the wall, there should be a cleaning chart which is to be signed by the house manager after regular maintenance is done.
The boxes and buckets that are carried to the market for delivery returned products must be marked with the name of the brand and SKU for which it is to be used. Warehouse Cleanliness
The walls of the warehouse should be clean and seepage should be kept in check. The warehouse should be white-washed every year. The following table shows the tasks to be carried out to keep the warehouse clean: 45
1. To sweep floor – Daily 2. To clean windows, louvers, walls & doors for removal of dust/cobwebs- Weekly 3. To clean floor with detergent solution and mop with 10% bleaching powder solution- weekly
4. To spray walls with 10% bleaching powder solution-Monthly 5. To spray walls with 200 PPM available chlorine solution of Sodium Hypochloride once in a year. 6. To get pest control use insecticides –Quarterly. 7. To stack / store raw and packaging materials on dry pallets / racks and not directly on floor. 8. To clean dust from stacks daily 9. To stack / store FG 6 inches away from the Wall and each stack must be 6inches away from the adjacent stack
10. To store / handle FG following the UBL supplied stacking norms. 11. Deep clean: washing the walls with detergent – Quarterly 12. During delivery, each vehicle should be checked to ensure that it is clean & dry. If the any vehicle is not properly clean then it will not be used.
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Stacking Norms The maximum height for stacking is 1.6m (5ft 3inches). The stock must be stacked with a minimum distance of 6inches from and the wall and the minimum distance between two stacks of different SKU must also be 6inches.
Products should always be stacked upright. This preserves the best quality of products and prevents leaks and bursts. Products should also be stacked in a honeycomb manner so as to facilitate air movement within stacks. While stacking the products should not come into direct exposure to sunlight.
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Picture: Product stacking in honeycomb manner Stock Handling Protocol
All the distributors have to maintain First in First Out (FIFO) while distributing the stock. It means to ensure that the products that came first to the distribution point, is delivered first to the market. FIFO will ensure fresh product to the trade, thereby reducing the trade return and claims, which in turn means better ROI fort the distributor. Stock Issue and Market return process Damage Products Keep buckets/ boxes to keep the damaged or returned products. The damaged products should be kept separate from other products.
Carry separate buckets or boxes with the delivery van while delivering products. If there is any discrepancy between order and delivery, the excess products which are not delivered should be kept in the bucket or box, so that there is no damage. 48
Maximizing Warehouse Space
Install racks to maximize the warehouse space. Racks would multiply the space used. However care must be taken not to overload the racks. Also due care must be taken for storage and retrieval.
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Safety Rules
Items to be checked A
FIRE 1. Electrical cable, fittings, switch, cutoff to be checked for perfection. • Loose wiring to be replaced with conduit / concealed wiring. • Lamps to be covered. • Emergency cutoff and circuit breaker to be installed at the entrance of the warehouse.
• Accumulation of flammable waste to be avoided. • Waste bin to be installed at out side corner of the warehouse to collect waste.
• Two-bucket stands with 3 water and 3 sand buckets in each stand. • Primary fire education for the supervisors and workers. • Smoking practice to be fully restricted inside of the store. • NO SMOKING sign boards to be installed in all suitable locations. B
HYGIENE HOUSE KEEPING 1. General house keeping standard.
2. Frequency of sweeping and mopping. 3. Sanitation and pest control. 50
4. Adequate ventilation
5. No Leakage on the roof 6. No presence of insects, vermin, birds
C. STORAGE AND HANDLING 1. Distance from wall (6inches). 2. Distance from each stack ( 6inches ) 3. Product, brand wise Stacking. 4. Mix up of product to be avoided. 5. FIFO to be maintained. 6. Distance from roof (1 m). 7. Maximum safe height (1.6m)
D. LOADING/ UNLOADIN G 1. Manual loading/unloading over 25 kg is prohibited E. OTHERS 1. Condition of the pallet to be monitored for any damage and materials to be stored on good pallet. 2. Outer pack quality (damage, open, dirt, wet) to be checked regularly.
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Must do’s
• The warehouse must be accessible from a road and trucks should be able to have easy access
• Warehouse floor must be made of concrete and be very smooth • Walls must be white-washed at least once a year • Warehouse must have proper functioning exhaust fans and vents. • The vents must have wire mesh for insect protection • The exhaust fans must be on during the night and throughout the day during monsoon. • Floors must be kept neat and clean by sweeping • Dusting of stacks must be carried out twice per week • Warehouse must be well lit working areas during the day • Always ladder/steps must be used for climbing • All electrical wiring must be concealed • Maximum Stacking height is 1. 6 meter (5 ft 3 inch) • Minimum Distance between wall and stack must be 6 inches • Minimum Distance between two stacks of different SKU must be 6 inches • Food must have separate space and far away from detergent category • POS Materials must have separate place to store • Products must always be stacked upright • The warehouse must have sufficient fire extinguishers • Use of Palette is a must no matter how good the condition of the floor is • FIFO must be followed • Damage/ Expired products must be kept in a separate place Don’ts
• Do not store food products with other products • Do not smoke inside the warehouse • No food or drinks should be allowed inside the storage areas 52
• One should never use product stacks for climbing purposes • There should be no loose hanging wires. Unconcealed and loose wires may cause electrical wires and also present physical danger to persons working inside • Do not exceed the maximum stacking norm • Do not keep two stacks at a distance less than 6 inches • Do not stack products directly on the floor • Do not stack FBCs upside down • Do not store damaged products with other products • Do not store merchandising units with the products • Do not keep hazardous material in the warehouse KPI 1. Real execution 2. 90% compliance in Audit by RSM/Cross function/3P (attached criteria)
Challenges
1. Cost involvement 2. Maintenance on regular basis 3. Warehouse size may create obstacle to install rack
1. Increase capacity of warehouse 2. No rent for extra space 3. Reduce time of vehicle loading 4. Reduce Damage 5. Easy stock mobilization 53
Appendix 8 Here fully manually WHEEL is manufactured 54
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