Inbound Transportation and Equipment Used In the Distribution Centre of Linfox - Case Study Example

Inbound Transportation and Equipment Used In the Distribution Centre of Linfox Student name Instructor University Course Date Inbound Transportation and Equipment Used In the Distribution Centre of Linfox Inbound Loading, discharging and stowing cargo are essential operational procedures, which require purpose-built equipment and experienced personnel. In order to provide quality and adaptable supply chain solutions, Linfox relies on well-established inbound transportation (Sankaran 2000). Linfox is the Heinz 3pl provider. As a third-party logistics provider, Linfox specializes in integrated warehousing, operation, and transportation services, which can be tailored to meet the needs of the clients depending on market conditions (Baykasoglu & Kaplanoglu 2011). Linfox has global networks and possess extensive knowledge in logistics enabling it to achieve high cost efficiency. In order to meet client expectations, Linfox prides itself in meeting contractual operations. Apart from offering a tailored pricing solution, Linfox selects the most efficient procedure in delivering its services to clients (Nguyen & Tongzon, 2010). Linfox serves all of Australia using different transportation methods. To serve Western Australia, Linfox uses train transport. Averagely, the company transports 29 containers per day, which translates to about 600000 cases per week. Further, to enhance cost-effectiveness and efficiency, Linfox often strives to build the perfect load through consolidation. The use of load planning software helps the company to streamline transportation by enhancing security, reducing loading and unloading times, improving asset utilization and enhancing compliance (Rawe 2008). Shipments using the same route but having different destinations can be consolidated. Similarly, the company consolidates shipments to one destination. Further, the company wraps multiple loads to go to specific clients. By building multiple orders into one load, Linfox reduces transportation costs and lead times for clients, and decreases carbon dioxide emissions during transportation (Tyan et al. 2003). Linfox has standard procedures and regulations that must be adhered to when receiving and dispatching order. One of the areas that the company pays special consideration is reducing lead times. For example, the company receives and processes orders earlier and faster. Regarding safety, a safe journey map is developed before dispatch. More importantly, trucks are kept in good condition and must stop at 500kms. To protect goods from damage, special care is taken during consolidation. The company also constantly reviews the picking phase to ensure low error levels and improved efficiency. As a safety requirement, the warehouse is assessed regularly. Linfox has an efficient inventory management system, which includes a stock replenishment system for Heinz. This system helps in managing stock by informing the operator if additional stock is necessary. Stock replenishment can be done manually or dynamically. Export orders with long shelf life are dynamically replenished. When managing inventory, stocktaking and cycle count re undertaken. In stocktaking, the current inventory is counted either manually or using devices such as scanners and guns (Sankaran 2000). Apart from having the Universal Product Code on all products, Linfox ensures that the Shipping Container Code (SCC) is also available. The SCC label is important in product identification. In a bid to reduce cost, Linfox closed most of the domestic shelters. It also sources most of the materials from New Zealand. Linfox invests in its human resource to maintain high employee productivity. Employees work in two shifts: 6 - 2.30 and 2.30 – 11. Although most employees are permanently employed or contract, some docks use casual workforce. The use of casual labour helps to compliment the workforce during high seasons. In order to manage the human resource effectively, managers are always planning using information from client forecasts. Managers also dedicate some time to explore other ways of completing tasks. They also have occasional meetings where they discuss issues such as the need for more employees and overtime. Managers also do scheduling and assign tasks to individuals or teams. Employees are encouraged to undertake duties when it is not busy to promote efficiency. Equipment Linfox has advanced material-handling equipment used in the storage, movement, and protection of goods. The material-handling equipment include transport, loading, positioning and storage equipment. One of the key strengths of Linfox is that the company has 40,000 pallet spaces. Pallets have emerged as important tools in moving almost all types of goods. In supply chain logistics, pallets act as the connection between manufacturers, retailers, distributors and transportation service provides within a myriad of industries (Frazelle 2002). Although pallets provide a low cost consideration, it is essential that they be managed effectively to enhance economies and efficiencies. Additionally, pallet quality and type have an effect on several factors including loading and unloading time, product, safety, cost, and quality. Linfox uses a number of stacking configurations to enhance safety and efficiency. Some of the factors considered when choosing the stacking configuration include safety limits, load weight and stability, pallet conditions, load strength, weather, and the warehousing clearance heights (Baykasoglu & Kaplanoglu 2011). Linfox uses a variety of material handling equipment during loading and unloading, stacking, line feeding, horizontal transport and order picking. Examples of such equipment include forklift trucks and counterbalance trucks. Linfox uses the SAP Extended Warehouse Management (SAP EWM) software to automate the processing and management of stock in its warehouse. Apart from supporting a variety of warehouse processes, SAP EWM maximizes the control and visibility of volume in the warehouses (Rawe 2008). The company also has a wrapping machine in the warehouses. One person can operate the automatic wrapping machine. However, case must be taken in wrapping and transportation to reduce damage. Management of the warehouse space is an important activity that Linfox undertakes. Warehouses can be filled because of seasonal peaks, rapid growth, inventory builds, large discount buying, and facility consolidation (Uçkun et al. 2008). Linfox uses warehouse space optimally through appropriate planning. Another important activity Linfox performs is equipment maintenance. It costs the company $10000 a week to maintain equipment. The company also prides itself in maintaining high levels of inventory accuracy (Uçkun et al. 2008). Inventory accuracy refers to the disparities in electronic records for inventory optimization. Currently, Linfox’s inventory accuracy is 99%, which is considerably high. However, the company continues to spend about $4000 per month in damages. Therefore, it is important for new and effective methods of product handling to be implemented. Linfox has implemented green measures to enhance safety in its warehouses. In fact, safety is a key performance indicator for the company. Warehouses present several potential hazards for employees. For example, the use of forklifts can result in injuries and even death. In docks, forklifts can run off the dock endangering the lives of the people. Products can also fall on workers and equipment can strike them. Conveyors are also a source of hazards as people can be injured when they are caught in pinch points. To reduce the risks associated with warehouses, Linfox trains employees on the security precautions they should take. Additionally, equipment are continuously checked and repaired to ensure that they do not cause injuries. In case of a medical injury, the company ensures that the patient is taken to hospital in the company of the manager. The CEO is also contacted to be informed about the medical situation. Early return to work ensures that an injured employee is reintegrated into the company as soon as possible (Boden et al. 2001). References Baykasoglu, A. and Kaplanoglu, V., 2011. Evaluating the basic load consolidation strategies for a transportation company through logistics process modelling and simulation. International Journal of Data Analysis Techniques and Strategies, 3(3), pp.241-260. Boden, L.I., Biddle, E.A. and Spieler, E.A., 2001. Social and economic impacts of workplace illness and injury: current and future directions for research. American journal of industrial medicine, 40(4), pp.398-402. Frazelle, E., 2002. Supply chain strategy: the logistics of supply chain management. McGrraw Hill. Nguyen, H.O. and Tongzon, J., 2010. Causal nexus between the transport and logistics sector and trade: The case of Australia. Transport policy, 17(3), pp.135-146. Rawe, H., 2008. SAP for Retail. Galileo Press. Sankaran, J., 2000. Freight logistics in the New Zealand context. International Journal of Physical Distribution & Logistics Management, 30(2), pp.145-164. Tyan, J.C., Wang, F.K. and Du, T.C., 2003. An evaluation of freight consolidation policies in global third party logistics. Omega, 31(1), pp.55-62. Uçkun, C., Karaesmen, F. and Savaş, S., 2008. Investment in improved inventory accuracy in a decentralized supply chain. International Journal of Production Economics, 113(2), pp.546-566. Read More