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A

STUDY ON

WAREHOUSE MANAGEMENT SYSTEM (WMS) & REVERSE LOGISTICS

AT

ATLAS COPCO INDIA LIMITED

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To analyze how The Atlas Copco Warehouse Management Systems by utilizing its

resources.

The primary objective of Warehouse Management System is to assist in decision-

making

To know the Total Process flow of Warehouse Management System

To know the Total Process flow of Inward, Packaging and Dispatching of goods

To know the Total Process flow of Customer return of goods

To Find out Pros & cons of WMS software

To find the Drawbacks and reduce the steps in WMS software

To offer findings, suggestions & conclusions of the study

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Atlas Copco is a Swedish industrial company that was founded in 1873. It

manufactures industrial tooling and equipment.

The Atlas Copco Group is a global industrial group of companies

headquartered in Stockholm, Sweden. Revenues for 2007 totaled BSEK 63.

The Group employs more than 33,000 people. The company manufactures

products on 68 production sites in 20 countries.

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Established since 50 years in India, Atlas Copco India is a leader in its three

core business areas- Air and Gas Compressors, Construction and Mining

Equipment, Industrial Tools and Assembly systems, to related Aftermarket

and Rental.

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Business divisions

Compressor

Construction and mining equipment

Industrial tools

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Footprints in India

1955 Atlas Copco started as a partnership with Vulcan Trading Co. in

Bombay

1960 Atlas Copco (India) Ltd was founded

1987 Bhagwati Foundries Ltd, Revathi CP Equipment Co. (both later

divested) was acquired by the company

1987 Chicago Pneumatic Tool company was acquired

2000 Chicago Pneumatic India was merged into Atlas Copco (India) Ltd.

2003 The Groups ownership in Atlas Copco (India) increased from 51 %

to 84 %.

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2004 Acquired operations from Ingersoll-Rand, which is Atlas Copco Drilling

Solutions division.

2005 Beacon Medaes was acquired and integrated into Atlas Copco Compressors

division

2007 Mafi Trench was acquired and integrated into Atlas Copco Compressors

division

2007 Local centers of competence at Pune for compressors and for construction

and mining technology at Nasik created

2007 Acquired Dynapac road construction equipment business

2009 Acquired Focus Rocbit Pvt. Ltd. and Prisma Roctools Pvt. Ltd. companies in

Hyderabad

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Products

Product Name Year Month Sales

Quantity

Sales value

(Rs.Million)

% of STO

Spares, Accessories and Components 2009 12 0 4950.7 38.52

Air, Gas and Screw Compressors, Dryer

and Filters

2009 12 6304 4439.66 34.54

Rock Drilling Equipment 2009 12 426 1249.56 9.72

Pneumatic Tools 2009 12 43741 670.4 5.22

Road Construction Equipment 2009 12 236 282.18 2.2

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Global presence of Atlas copco

With a global presence in over 150 countries, providing an unrivalled

service to maintain and continually improve your compressed air system

performance.

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A warehouse management system, or 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, put away and picking.

The systems also direct and optimize stock put away based on real-

time information about the status of bin utilization.

Warehouse management systems can be stand alone systems, or

modules of an ERP system or supply chain execution suite.

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14Flow of WMS


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ses of WMS

WMS will reduce inventory!

WMS will reduce labour costs!

WMS will increase storage capacity!

WMS will increase customer service!

WMS will increase inventory accuracy!

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Inventory Management

Inventory is a list for goods and materials, or those goods

and materials themselves, held available in stock by a

business.

The monitoring of material moved into and out of

stockroom locations and the reconciling of the inventory

balances. Also may include ABC analysis, lot tracking, cyclecounting support etc. Inventory management is primarily

about specifying the size and placement of stocked goods

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Inward of goods

Checking in deliveries and putting goods into storage is the first phase of

the internal supply chain within a large warehouse. Most warehouses are

now using data terminals and scanners for reading codes but there is still a

lot of manual checking to do, as well as physically counting items on

pallets. As with all warehouse operations, this requires careful counting

and code checking, and attention to detail.

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Packaging of goods

Pick,pack and labelling are a part of a complete supply chain

management process that is commonly used in, but not limited to,

the retail distribution of goods. It entails processing small to large

quantities of product, often truck or train loads and disassembling

them, picking the relevant product for each destination and re-

packaging with shipping label affixed and invoice included. Usual

service includes obtaining a fair rate of shipping from common as

well as expediting truck carriers.

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Despatch of goods

After packaging of goods another important step of warehouse

management system is despatch of goods. DELIVERING RIGHT GOODS IN

RIGHT TIME AT RIGHT PLACE BY PICKING THE RIGHT MODE OF

SHIPMENT is the main aspect. in Despatch Mode goods are collected

(picked) from shelves, bins, etc., based on pending customer orders, and

then packed and dispatched to those customers.

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The Warehouse Management System (WMS) in

todays modern warehouse management is the nerve

centre of the operation. Its primary need is to best

utilize a warehouses resources, including space,

labor, equipment, tasks, and material flows.

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Warehouse management systems can be stand alone systems,

or modules of an ERP system or supply chain execution suite.

Material direction and tracking in a warehouse can be

coordinated by a Warehouse Management System (WMS), a

database driven computer program. Logistics personnel use

the WMS to improve warehouse efficiency by directing

putaways and to maintain accurate inventory by recording

warehouse transactions.

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Pros Of WMS

If goods are dispatching late remark should be entered

Automatic discrepency will be created

Self program for cycle count/scheduling

Able to import / export data in variety of formats, with any ERP

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Companies spend more time and money in fine-tuning their

forward supply chains while ignoring their backward supply

chains. However in todays competitive business environment

when there is both external and internal pressure, companies

can no longer reverse supply chains.

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Efficient reverse supply chains bring many benefits to thecompanies. however reverse supply chains are different from

forward supply chains and most of the existing forward supply

chains are not designed to handle reverse supply chains.

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Flow Of Reverse Logistics


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The study of the company reveals the following findings

The Total flow and Process of Warehouse ManagementSystem

The Total flow and Process of Inward, Packaging andDispatching of goods

The Total flow and Process of Customer return of goods

Pros & cons of WMS software and found how to reduce thesteps in software

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The performance of the company is up to the mark in each aspect to

improve further. The following suggestions are:

WMS software Draw backs has to be rectified

Using barcode labels in all and barcode scanners in packaging can reduce

time receiving, packing and dispatch of goods

Increase the Size of the Receiving Area will save more time because Most

inventory errors start in receiving.

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Double Checking the Orders Before They Go Out the Door will help

in dispatch errors

Increasing the efficiency of reverse logistics or backward supply

chain will be very useful because competition in todays

competitive business environment is very high.

Considering the re-use of customer return products will get more

profits

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The supply chain of any organization depends on warehousing

operations like inward, packing and shipping of goods etc. A

careful analysis of these areas is very much essential for the

success and survival of these organizations. For this purpose

Warehouse operations are to be merged with good

information technology. The Warehouse Management

Software is very much useful for organization to cope up with

the global Competition

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Atlas Copco (India) Limited is having a good Warehouse

operations. Their implementation of Warehouse Management

Software is very helpful in all the operations of Warehouse.Finally the total Atlas Copcos Warehouse operations are good

and effective.

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