Warehouse Management System

Contents

1.0 Project Overview 1

1.1 Introduction 1

1.2 Current System of the Company 2

1.3 Problem Statement 3

1.4 Project Objective 3

1.5 Scope of Project 4

1.6 Methodology of Analysis and Design 4

1.7 Project Scope Statement 6

2.0 System Description 8

2.1 Task Performed 9

3.0 Feasibility Assessment 16

3.1 Economic Feasibility Studies 16

3.2 Technical Feasibility Studies 21

3.3 Operational Feasibility Studies 23

3.4 Legal and Contractual Feasibility Studies 26

3.5 Political Feasibility Studies 27

3.6 Schedules, Timeline, and Resource Feasibility Studies 28

4.0 Management Issues 30

4.1 Team Configuration and Management 30

4.2 Communication Plan 32

4.3 Project Standards and Procedures 35

1.0 Project Overview

Warehouse management system (WMS),is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, putaway and picking. The systems also direct and optimize stock putaway based on real-time information about the status of bin utilization. A WMS monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations.

More precisely, warehouse management involves the receipt, storage and movement of goods, (normally finished goods), to intermediate storage locations or to a final customer. In the multi-echelon model for distribution, there may be multiple levels of warehouses. This includes a central warehouse, a regional warehouses (serviced by the central warehouse) and potentially retail warehouses (serviced by the regional warehouses).

1.1 Introduction

Company Profile

Company Name : HL Northern Enterprise

Owners : Chan Hock Leng & Lee Yet Looi

City : Changlun, Kedah, Malaysia

Postal Code : 06010

Phone Number : (+604)*******

Year Established : 2012

Business Activities : All up-to-date models of latest hand phone and accessories

Employees Total : 2

Company Background

HL Northern Enterprise been operating for almost a year and a half, since 2012 of July, they started to start off opening a shop allocated in central area where now had became a well-known place in Changlun. It was their 1st enterprise. Daily operation hours are from 9.30am to 9pm from Sunday to Friday but only operates half day on Saturday.

Basically, their main activities and the services that this company serves are mostly high quality and standard handphones or also known as smartphone; phones’s accessories; and selling prepaid top-up cards. Services would be changing screen saver or as a adviser to their customer. In short, we know that their primary products are handphones. Mostly, HL Northern Enterprise is a retailer that sells goods to the consumer as opposed to supplier, who normally sells their goods to another business. As u can see above, the company owners consist of 2 people, which mean they are dealing with a partnership business form.

Furthermore, they mostly get their products from local dealer, mostly from Ipoh and Kuala Lumpur. Thus, their arrangement of products in the store is more to displaying part of it consisted of phone’s accessories but phones (smartphones) would be kept in the store room. Besides, arranging it according to their brands, such as Samsung in one corner, middle would be Nokia and etc. For accessories, they will put up a maximum of 5 packs for each and if there’s a minimum of 1-2 left, they will reorder to replace it back.

The way the business control the numbers of stock been sold is by jotting down the models and code on a report book. And yes, they do kept some fragile materials in the store room. They also have a personal dealer which is local to make sure if they need anything to replenish it in the shop. Mostly those are been done by making ordering through phone calls and the delivery might just take a day or two to reach the stock. Right on spot call is more to if the customer wants a very high standard, latest, quality phone on the spot, then they will just call their dealer, and their dealer will send it over as soon as possible.

Well, the inventory cycle for this company is more to annually. It even depends on the demand of the consumer, if happen to be the trend during that period; add on insufficient stock; and adding up all till the maximum amount, then it would be monthly already. Mostly all the stock that they had receives, they would just place it at the rack for the customer to see. But there’s store room for placing other fragile and important stuff only. Sometimes, the dealer would come and help to make sure that they dealing with, is having enough item, therefore, those dealer would perform on the spot by counting them and replenish it once not enough. It usually takes 1-2 days for the parcels to arrive. Their payments involve cash, cheque and credit terms of 30 days.

With this, the owner wishes to open another branch at Penang someday to extent his business and to be well-known. They do not face any problem as they did not do a proper warehouse system for their company, thus it is hard to trace fraud in them.

1.2 Current System of the Company

This enterprise doesn’t uses warehouse management system, as it is a small company which do not face any difficulty. But it does have a build in wifi for them to make orders or any important stuff related to their company. At the end of the day, the employee will make a daily revenue