LGC (LOGISTICS INC)

AGSB MBAH Batch 8

MIXED NUTS (Group IV)Candice Rachel U. Canlas, M.D.

Lorelynn Dacanay-Papa, D.D.M. Anna Sofia Victoria S. Fajardo, M.D.

Maria Agnes G. Fulo, R.N.Frederick Mars B. Untalan, M.D., FPSOHNS, FPAHNS

Rudolfo C. Villarin, M.D.

OUTLINE COMPANY BACKGROUND CURRENT PRACTICES

◦ PRODUCT & SERVICE DESIGN◦ PROCESS ANALYSIS & MANAGEMENT◦ QUALITY MANAGEMENT◦ INVENTORY CONTROL◦ SCHEDULING & CAPACITY PLANNING

ANALYSIS RECOMMENDATIONS

COMPANY BACKGROUND LGC Logistics is a member of the Lina Group

of Companies It is a global company which believes that

moving forward means going where the customers are located.

November 14, 2002◦ Granted by the Philippine Export Zone Authority a

status of “Ecozone Facilities Enterprise”◦ 1st CY/CFS inside PEZA in CALABARZON

VISION LGC Logistics is envisioned to reduce

processing time, give quick turnover of goods and increase customer confidence so the customer can do business in real time.

MISSION LGC Logistics offers stripping/de-

consolidation, consolidation, delivery to end-user, inventory management system, domestic freight system, and complete logistical services under one roof at your doorstep.

LGC (Logistics Inc) Services

PRODUCT & SERVICE DESIGN STRIPPING /

DECONSOLIDATION◦ Unpacking contents of a

container,also called devanning.

CONSOLIDATION◦ Combine more than one

shipment into a container;serves as consolidation point for export shipments.

DELIVERY TO END-USER◦ Deliver to ultimate

consignee

PRODUCT & SERVICE DESIGN INVENTORY MANAGEMENT

SYSTEM◦ A 24/7 efficient use of web-

order based application DOMESTIC FREIGHT

SYSTEM◦ Proof of Delivery (POD)

Tracking System COMPLETE LOGISTICAL

SERVICES◦ PO management,

inventory management, control, packaging and crating, sorting, labeling and re-labelling, with nationwide distribution

INFRASTRUCTURE

THE LGC CY/CFS ADVANTAGE SAFE

24/7 security guards8 units of CCTV surveillance

cameras strategically located throughout the warehouse

FAST2-day transfer to CFS, upon

arrival on the port of dischargeDelivery to the end-user is one

day upon releasing of goods ACCESSIBLE

Location reduces product stress and avoids traffic congestion

GREAT VALUEServices are effective &

competitive

Located in CARMELRAY INDUSTRIAL PARK 2 Barangay Punta, Calamba, Laguna 4027

Inside a Philippine Export Zone Authority area in CALABARZON

59 km from Manila Internat’l Container Port 64 km from North Harbor 15 km from PEZA zones

LGC (Logistics Inc) Location

VICINITY MAP

ACTEX

FACILITY LAYOUT

FACILITY LAYOUT

PROCESS ANALYSIS

PROCESS ANALYSIS

CARGO RECEIVING Cargo receiving process involves the

activity being performed by the warehouseman upon arrival of items at the warehouse.

The responsibility involves checking of items against documents on its description and quantity.

It is during this process that the actual condition of the outside packing of the items is being determined.

CONTROL OF DOCUMENTS Electronic documents / files are required for

back-up quarterly. This process is done to ensure that

electronic documents are available during power interruption, hardware crash or computer systems failure.

Another process involves the use of passwords to ensure the reliability and security of files and documents.

CARGO LOCATION This involves the process wherein the

warehouseman checks the inventory location of actual cargo that will be delivered to the end-user.

start

Locate cargo

located NY

Correct Quantit

yThoroughly

Check

N

B

Y

YCorrect

Correct Qty

NThoroughly

check

Complete

N

Y

N

CARGO LOCATION

D

CY

CONT’D

D

Notify acct handler

Thoroughly physical check

100%

found

Yc

Re-positioning of shipment to staging area

Sign waf and forward to transport dispatch

N

c

CONT’N CARGO LOCATION

END

This process involves the documentation of items that is being requested by the client to deliver to their respective end users.

The withdrawal documents are essential in applying for Farm-out.

This form is forwarded to PEZA zone representatives for processing

PREPARATION OF THE WITHDRAWAL OF DOCUMENTS

CARGO DISPATCH This involves the process of receiving of the

withdrawal documents from the warehouseman together with the cargo.

It also involves inspection of the truck being used to ensure cleanliness, maintenance and good working condition.

This process also involves the preparation of a Gate Pass.

Quality Management• ISO 9001 is the

internationally recognised standard for the quality management of businesses.

• It applies to the processes that create and control the products and services an organisation supplies.

• Prescribes systematic control of activities to ensure that the needs and expectations of customers are met.

• It is designed and intended to apply to virtually any product or service, made by any process anywhere in the world.

The Operations, a vital part of LGG Logistics, lnc. that plays the primary role of achieving the company's Vision of providing quality service in logistics and warehousing services. Will guarantee that it will attain the following objectives:

Monthly lnventory 99.7% accuracy of monthly inventory against actual cargo on

hand On-time Delivery 98% delivery of items to end-user within stipulated conditions

per zonePerfect Receiving ZERO incidences of wrong, short and over deliveries to end-

user Service Analysis Report Average rating of 4.20 for SAR conducted annually to all

accounts 100% Equipment Preventive Maintenance Schedule

Monitoring

Quality Management of LGC

ON-TIME DELIVERYAREA OF DELIVERY

ESTIMATED TRANSIT-TIME

ESTIMATED TIME OF ARRIVAL TO END-USERS

ZONE 1 (LAGUNA AREA)

30 - 45 mins 45 mins to 1 hour

ZONE 2(CAVITE AREA)

1 - 1.5 hours 1.5 - 2 hours

ZONE 3(PARAÑAQUE / FTI AREA)

1.5 - 2 hours 2 - 2.5 hours

ZONE 4(BATANGAS AREA)

1 - 1.5 hours 1.5 - 2 hours

EQUIPMENT PREVENTIVE MAINTENANCE SCHEDULE

This involves a process of using a Daily Maintenance Master Checklist Form

It provides on-time advice to the supplier / facilities and maintenance department for immediate preventive maintenance scheduling.

INVENTORY IN THE SYSTEM This is the heart of the warehouse

operations which tells the actual quantity of items on hand.

The system generates this information based on the encoded information by the account handler.

The company’s inventory system is Warehouse Operating System (WOS).

Monthly physical inventory is being performed

◦ Actual vs System

INVENTORY MANAGEMENT

Bar codes are assigned to each item or a group of items.

Fast-moving items are stored on the ground floor, while slow-moving & condemned items are on the 2nd floor.

Labels are used for each area and item.

A warehouse directory is readily available.

INVENTORY MANAGEMENT Access to the warehouse

is given only to the warehouseman.

Cycle counting is done on a monthly basis.

ALL inventory transactions are documented.

A process manual is available for inventory control.

Different levels of cold storage and warehouse storage are available to fit customer’s needs.

WAREHOUSE DIRECTORY

CAPACITY PLANNING To avoid lost sales, capacity must be set to

match peak demand

CAPACITY PLANNING

RACKING POSITIONSGF1CIP A 721CIP B 561CIP C 1201CIP D 1081CIP E 841CIP F 36

TOTAL 476

CAPACITY PLANNING

RACKING POSITIONS2F2CIP A 322CIP B 962CIP C 872CIP D 962CIP E 962CIP F 962CIP G 48

TOTAL 551

CAPACITY PLANNING

RACKING POSITIONS2TC2CIP H 302CIP J 602CIP K 602CIP L 602CIP M 30

OTHERS 13

TOTAL 253 + 551 + 476 = 1,280

Scheduling The customer is in the production schedule

and must be accommodated. The warehouse operates from 7 am to 7

pm. The administration office operates from 8

am to 5 pm. FIFO - FIRST IN, FIRST OUT System is

applied to customers

ANALYSIS OF LGC LOGISTICSDESIGN HIGH / LOW CONTACT SYSTEM

FACILITY LOCATION Operations near customer

FACILITY LAYOUT Should focus on production efficiency

PRODUCT DESIGN Environment and physical product define the nature of the service

PROCESS DESIGN Stages of production process have a direct, immediate effect on the customer

SCHEDULING Customer is in the production schedule & must be accommodated

QUALITY CONTROL Quality standards are measurable and fixed

CAPACITY PLANNING Storable output permits capacity at some average demand level

RECOMMENDATIONS

The group agreed to the ff observations made by an external auditor:

Include performance of cargoes in overall tabulation of performance monitoring of deliveries.

Acquire a copy of results of strategic quality planning conducted by the organization for ease of checking if plans and programs formulated were implemented.

Request a copy of results of evaluation performance for some outsourced service providers serving the site.

Install a secondary containment or catch basin for chemicals stored.

AGSB MBAH Batch 8MIXED NUTS (Group IV)

Candice Rachel U. Canlas, M.D.Lorelynn Dacanay-Papa, D.D.M.

Anna Sofia Victoria S. Fajardo, M.D.Maria Agnes G. Fulo, R.N.

Frederick Mars B. Untalan, MD, FPSOHNS, FPAHNSRudolfo C. Villarin, M.D.