Dua Ghani 23131: Supermarket Warehousing

Dua Ghani
23131
Challenges of warehouse operations: A case study in retail

supermarket: Summary
Introduction
It hasn't been that long since the very idea of retail supermarkets came into being but
the retail supermarket sector has already seen its fair share of challenges. These
challenges arise due to change in trade policies, change in taxes, PPP etc. Another
thing that proved to be an obstacle in the retail supermarket growth was the sudden
introduction of software systems such as ERP, WMS etc. In order to achieve
sustainability this sector must work towards making its supply chain performance
efficient and responsive.
Warehouse functions include:
1. Product receiving
2. Put away
3. Storage
4. Order picking
5. Packaging
6. Sortation & Accumulation
7. Unitizing & Shipping
The six drivers of supply chain are:

1. Sourcing
2. Facility
3. Pricing
4. Inventory
5. Information
6. Transportation
Supermarket Warehousing
Adaptability to the most latest technology and management techniques is the key to stay in the
competition if you're part of a highly competitive market. In such a short span of time the retail
supermarket industry saw the use of tools such as bar coding, RFID, WMS, ERP which have
make supply chain functions relatively easy and cost effective.
Warehouse Design
Warehouse Structure- Better facility design and conceptual layout are essential for the
maximum level of operational efficiency.
This level deals with future operating cost and storage facilities.
Size and Dimension- deals with the cost of the construction of a warehouse along with the the
replishenment process and overall material handling process.
It's important to make sure that the right amount of space is allocated keeping the warehouse
and the inventory to be held in it to obtain the optimum level of efficiency.
External Factors in Warehouse Operations
Handling multiple batch of products;

Similar or same products are imported by several suppliers. These products vary in sizes,
prices, flavours and quantities. Around forty percent of the goods under the category of grocery
are imported. These products must be monitored thoroughly during the placement procedure.
Fake and tampered products;

Due to heavy customer demand sometimes it gets hard to differentiate between fake and
genuine products. In third world countries, what happens mostly is that customs officials in
charge of handling the containers are corrupt and exploit their authority and power which could
result in those containers being stuck for a very long time. This is what leads the suppliers into
tampering with the expiry dates so this is why these products should be handled with utmost
care.
Comply with government rules and policies;

The biggest difference between street shops and retail supermarkets is that the latter has to
deal with a lot of rules and regulations before entering the market as compared to the former. In
case of not meeting or following the criteria and abiding my the laws, authorities are allowed to
take severe actions against the retailers.
Approved sample vs. actual receiving;

Certain parameters must be met while receiving the sample of products. It's important to
thoroughly go through these parameters when the sample is sent to these retail supermarkets.
These parameters include, weight, size, expiry dates etc and can be checked with the help of
ERP systems.
Grading & Sorting;

Goods such as onions and potatoes are graded and sorted before being sent to the retail
outlets, this sorting and grading is based on the size, shape and spots on them. Other products
such as vegetables, cattles etc are processed through the Central Processing Unit.
Formalin, Ethylene and Carbide test;

Suppliers often tamper with the proportion of these chemicals such as formalin, ethylene and
carbide to increase the shelf life of the products which contain these chemicals. This can be
extremely damaging to health therefore to prevent this from happening a few comprehensive
tests are run on these products.
Performance evaluation;
Feedback is what helps increase the qualities of these policies and systems. It's very important
to provide them with honest evaluation so that operational policies etc can be further improved.
Warehouse Health, Safety and

Environment
Now, safety isn't only confined to the consumers, it's important to make sure that the lives of the
workers and labourers isn't in jeopardy. It's essential for companies to ensure the safety of of
their workers and also make sure that their health isn't being compromised due to the working
conditions. Laws were put into place that protect the rights of workers and ensure their safety.
Administrative and Other Factors

It's important that other factors such as the working conditions of the workers, flexibility of hours,
rewards as well as things like theft, emergencies and other life threatening incidents at the
workplace must be avoided therefore an efficienct and dedicated administrator must monitor
these things for a better running warehouse operations.
Conclusion
The challenges faced by the retail industry can be dealt with some major steps keeping in mind
the industry's sustainability depends upon its supply chain and the factors influencing the supply
chain must be handled with utmost experience and management expertise. The main objective
of the supply chain performance is to gain the maximum output and efficiency at the lowest
possible cost along with customer satisfaction and appropriate safety hazards. Ideal planning
and designing can also result in smooth warehouse operations.

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Dua Ghani

Challenges of warehouse operations: A case study in retail

The six drivers of supply chain are:

External Factors in Warehouse Operations

Handling multiple batch of products;

Fake and tampered products;

Comply with government rules and policies;

Approved sample vs. actual receiving;

Grading & Sorting;

Formalin, Ethylene and Carbide test;

Warehouse Health, Safety and

Administrative and Other Factors

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