I need to have proof-reading for my proposal. The tone need to be very
polite.Please read the following.
ABC Futian Free Trade Zone Field study
Observations and recommendations
FACTS
? Futian warehouse provide both domestic distribution and export
consolidation function
? Futian warehouse was operated in 1997
? There is 35Km from Yantian seaport
? And 25km from Shekou seaport
Current preparation situation
As a result of the cost saving for handling accessories, Global
fashion decided to use Futian free trade bonded warehouse to do the
consolidation shipment of accessories to Italy. The following is the
current preparation status:
And most of the information about this project is discussing in Italy.
The followings are only few data we learned from ABC :
? The tentative operation date is middle of Sept.
? The first shipment ETA is Sept 13 from Enson & Alison
? Lisa Wang will be contact person in Futian.
? IT supports, labeling machines will be provided by Global fashion.
? Global fashion IT will notice Shenzhen warehouse about system setting.
? Gary Leung@ABC will have training in Global fashion Italy.
Layout observation
1. ABC allocates a section of second floor for Global fashion storage.
2. The area of whole floor is 5311 square meter
3. Global fashion storage area is section B , the area is estimated
1050 square meter.
4. However, the actual usage is only 939 square meter. The usage ratio is 90 %
5. There are estimated 111 square meters for four elevator, stair.
6. Currently, there is no clear layout indication.(e.g. receiving area
/ shipping area)
7. ABC suggested/planned using heavy racking for our storage, same as
other section of that floor.
8. Heavy racking is suitable for the big and heavy carton, which has
the standard packaging size.
9. In our observation, the aisles between the racks are used to store
full of cartons. The labour is very difficult to pick out the cargo
from the rack and easily to make error.
10. In order to fully utilize the space , ABC use the overhead racking
.(The following is just example , which is not the ABC situation) :
11.
12. However, the overhead rack is too low, which is dangerous for
forklift operation and easily cause cargo damage.
13. The overhead rack only should be used when you have enough height of floor.
14. The light is enough in this floor.
15. And there is CCTV security system
Layout and storage method non-professional suggestion
I am sorry I have not accurate data on hand and lack of experience.
The following is just my general suggestion for your brief
consideration.
Specifying the purpose of the warehouse
? Shenzhen warehouse is used to be picked and packed centre of accessories.
? The throughput is important.
? We need to have fast cargo flow and enough pick and pack area.
? Shenzhen warehouse will be used for ocean consolidation to Italy.
? That mean the cargo will be only stored a short period of time after
pick and pack.
? We need to consider operation flow is little bit more important than
space utilization.
? For example, we cannot use randomized location system to fully
utilize the space.
? We have to use fixed location system , and have specific location in
Click system to facilitate picking.
Forecasting the inventory levels
? For example, how many ocean consolidation shipments your side wants
to ship Italy each month.
? Then, we can decide how much storage area we need.
? And if we can provide the seasonsal pattern to ABC, they can design
the buffer storage area also.
? Because all cartons will be shipped to Italy, then , we suppose the
shipping methods are similar each time.
? We no need to store the carton by geographical area and shipping methods.
Considering Product characteristics and Class formation
? We have to give the data about the average size of cartons, which
have been finished pick and pack.
? If it is possible, ABC request us to give how many percentage of the
cargo is shoe, and how many percentage is small accessories.
? Then, ABC can design to racking system or shelving.
? And if different type of products are stored separately can helps
reduce picking time and distance.
Storage partition
The following is just my simple zone formation suggestion:
? We assume the inbound frequency is bigger than outbound frequency.
We reserve bigger area for inbound.
? The pick and pack area is one time bigger than YKK. Logically, the
capacity can be one time more than YKK.
? Office near pick and pack area can solve the problems immediately.
? If we decide the office locate in other floor, we suggest the area
can be the raw material area in order to faster the pick and pack
process.
? The storage area is estimated one time bigger than YKK. The current
YKK storage capacity is 9363 ctns.
? Of course , garments are different size with accessories.
Storage method:
? ABC suggested/planned using heavy racking for our storage, same as
other section of that floor.
? Heavy racking is suitable for the big and heavy carton, which has
the standard packaging size.
? If the cartons size of our accessories after pick and pack are
similar, we can use racking.
? If the finished cartons are too small , we may consider to use shelving.
? Because all cartons will be shipped to Italy, then, we suppose the
shipping methods are similar each time.
? We no need to store the carton by geographical area and shipping methods.
? Even we want to utilize the height of space; we should not use
overhead bridge rack
Pick and Pack observation
? Nowaday, ABC use the basement floor to do pick and pack for one
garment client. The simple workflow is the following:
? When the cargo arrived, the cargo will stored in the storage
warehouse with location.
? ABC will pick out the cargo need to be packed.
? The cargo will be transferred to basement by elevators
? The cargo will be temporarily stored in waiting area .
? The cargo will be moved to processing area to do pick and pack.
? The finished cartons will be also temporarily stored in waiting area
without location record.
? When they have manpower, they will put back the finished cartons to
formal storage area in each floor.
Problems :
? Each elevator only can contain 4-5 pallets
? Too many packed and un-packed cartons mix up in waiting area and
without location control
? They have not the standard lead time when they should put back the
finished carton to normal location.
? The temporary storage situation may be out of control.
? There is no formal cross checking during the whole repacking process.
Suggestion
? We do need to do the pick and pack in the same floor instead of
moving to basement.
? We should have our standard pick and pack team.
? They should process the store in immediately after they finish the
pick and pack of that commessa.
? The causal labor should sign on the packing instruction to be
evidence they have checked the cargo.
QC Service observation
GENERAL
ABC introduced that they can provide the quality checking service for us.
They have 6 persons for garments quality control checking.
They can follow the international standard or simple instruction from the client.
For each job , they will provide the defective report for their client in English.
Each season , they normally handle 2000 styles checking.
MISSING PRICE TAG HANDLING:
Currently, if ABC find some cargos are without price tag, there are
three solutions:
1) If the qty is small , they will just ship out the defect cargo and
mark the note on that carton.
2) They normally will put the discrepancy to biggest order.
3) If the qty is huge , they will notice the client to provide the hand-tag.
4) They can put the hand-tag for the customer with charges.
5) ABC can also print the price tag for the customer, if they know the
system and have material.
6) However , ABC cannot add the washing label for the client. There is
regulation manufacturing is prohibited in free trade zone.
Suggestion
? We suggest to give small amount blank price tag stored in ABC with
strict inventory control
? And Italy can provide the information about the price tag printing
system we are using to ABC.
? When , there is the case about missing price tag . ABC can help us
to solve the problem immediately.
Custom Clearance introduction
All cargo must be done the exported custom clearance before its enter
into free trade zone. All cargo will be bonded.
There are three methods :
1) Supplier deliver the cargo by non-bonded truck, and the use the
custom declaration agency to do the custom clearance and give all
documents to the truck, before the truck arrive free trade zone.
2) Supplier also can use EDI declaration application by internet
themselves if they have the declaration system.
3) Supplier can deliver the cargo to local custom house , and apply
custom declaration. After getting approval from custom house , the
cargo can be delivered to Free trade zone. |
