Warehouse Analytics

Future Warehousing Strategy: GlaxoSmithKline
Project Baselining
21st February 2013
Miebach Consulting
Agenda
1. Objectives
2. Introduction
3. Data Analysis
13
4. Planning Base
27
5. Warehousing Models
36
6. Next Steps
49
Miebach Consulting 1. Objectives
Objectives
Overall Project
The overall objective of the proposed assignment is
Future Warehousing Strategy: To draw up a warehousing roadmap to be adopted

by GSK in the long term (in the next 5 years)
Warehouse Process Reengineering: To increase warehousing efficiency through

material flow process improvements in existing locations (Pilot Design &
Implementation)
WMS Implementation: To Implement Warehouse Management System (WMS) to

facilitate efficiency improvement
Project Deliverables
Warehousing Strategy
Phase 1: Baselining
Data gathering, analysis and validation of data for all warehouses in terms of storage,
throughput for current and projected volumes
Site Visits and understanding of existing operations, in representative warehouses,
Mapping KPIs in existing setup and benchmarking with best in class operations in India.
Benchmarking warehousing setup and models adopted by leading FMCG companies.
Workshop to finalize planning parameters and operational inputs for evaluation of
warehousing models
Phase 2: Blueprinting
Warehouse Clustering based on influencing parameters such as rental, SKU & Order
Structure, throughputs and inventory.
Definition of Warehousing Models suited for each cluster.
Detailing of concept in terms of logistics equipments, layout and material flow processes.
Financial Evaluation (Investment, Cost of Operations, NPV / IRR calculation) for all
warehouses.
Recommendation on appropriate warehousing model for each cluster
Evaluation and Recommendations of Own / lease options for land, building , logistics
infra, IT and manpower.
Project Deliverables Contd..
Phase 3: Road Ahead
Fine Tuning Based on inputs from Steering Committee, if any
Pilot Implementation Next Steps and warehousing roadmap for future
Handover of Documentation (Baseline & Blueprint) and Warehouse Commander Tool for
future evaluations
Objectives
Meeting Objectives Warehousing Strategy

Analysis and validation of all data for all warehouses in terms of storage, throughput
for current and projected volumes.
Understanding of existing GSK operations, benchmarking of warehousing setup,

operations and models adopted by leading FMCG companies in India.
Finalization of planning parameters and operational inputs for warehousing models.
Preliminary results of clustering of warehouses.
Agenda
1. Objectives
2. Introduction
3. Data Analysis
13
4. Planning Base
27
36
6. Next Steps
49
Miebach Consulting 2. Introduction
Introduction
Mechanized Warehousing Infrastructure

Mechanized Warehouse
Standardized Load Unit (Pallets)
6 - 7 High Selective Racking
Reach Trucks for Pallet Handling at higher level

& BoPT for Case picking
WMS with directed putaway & picking
Miebach Consulting 5. Warehousing Models
Introduction

Dock Doors Receipt & Dispatches
Direct Palletization
Hybrid Storage Methodology
10
Introduction

Hybrid Picking Pallet / Batch / Multi Order
Barcoding with Radio Frequency Technology
Dock Levellers for speeding up loading /

unloading
11
Introduction
Picking Procedure
12
Introduction
Key Drivers for Mechanization of Warehouses
Number of SKUs and

Order Structure
Warehousing Space &

Flexibility
Decision Parameters
Rental Rates
13
Volumes (Storage &

Throughput )
Warehousing Model
Warehousing Options to be evaluated
Rack Storage (12m Height Building)
Block Storage ( 6-7m Height Building)
Hybrid Storage (12m Height Building)

14
Miebach Consulting 6. Next Steps
Introduction
When is the right time to Mechanize ?

Monthly FMFO 12 Sq Ft / Pallet
Weekly FMFO 15 Sq Ft / Pallet

( 25% Increase )
Daily FMFO 20 Sq Ft / Pallet
(40% Increase)
15
Manual 20 Sq Ft / Pallet
Mechanized 10 Sq Ft / Pallet
( 50% Reduction with 10m
vertical height usage)
Manual Rs 20 / Sq Ft /Month Rent
Mechanized Rs 25 / Sq Ft / Month
Space > 75K Sqft
Warehouses under multiple

sheds resulting in high operating
expenses
Introduction
Other Envisaged Benefits of Mechanization

Improvement in FMFO Adherence
Improvement in Inventory Record Accuracy
Reduction in damages at warehouse
Reduction in Manpower Cost
Improvement in Truck Turnaround Time
Reduction in Detention paid & in Primary as well as Secondary ( improved truck turnaround
time resulting in better asset utilization for transporters )
16
Introduction
Non - Availability of large warehouses, Increasing Rentals &

Operational Complexity have been the trigger to mechanize
Parameters
HUL
P&G
ITC
Reckitt Benckiser
Total Number of Warehouses
30+
25 Depots & 4 RDC's
35
27
Number of Mechanized Warehouses
10+
4 RDC's + 1 Depot
1 (7 in pipeline)
2 in pipeline
150,000 - 350,000 sqft
15,000 - 30,000 Pallet

Locations, G + 5 Racking
250,000 sqft
75,000 100,0000 sqft
Land & Building
Lease
Lease
Own & Lease
Lease
Storage Systems & MHE's
Lease
Lease
Own & Lease
Lease
Own (SAP WMS)
Own (SAP WMS)
Own
Lease
Lease
Lease
Lease
Lease
Lane Concept with Manual

Systems

Bin Card Systems
Lane Concept with LMS

(implemented in 3
locations)

Systems
Average Size of Mechanized

Warehouses
Investment Model
IT
Operations
Non Mechanized Warehouses
Leasing in all infrastructure, including storage & MHEs has been the preferred operating model by most FMCG Companies.
WMS is critical to successful implementation , hence companies prefer to invest in IT systems.
Other FMCG Companies (E.g. GCPL, Emami, Marico..) are evaluating Lane Concept and Mechanization in the future, as
volumes grow
17
Introduction
Warehouse Process Maturity Matrix
PROCESS
STAGE 1
STAGE 2
STAGE 3
STAGE 4
STAGE 5
Receiving
Unload, stage and

check in
Immediate put-away to
reserve
primary
Cross-docking
Pre-receiving
Put-away
First-cum-first serve
Batched by zone
Batched and
sequenced
Location to stocker
Automated Put-away
Picking
Pick to single order
Batch picking
Zone picking
progressive assembly
Zone picking
downstream sorting
Dynamic picking
Check, stage and load
Stage and load
Direct load
Automated loading
Pick to trailer
No standards
Standards used for

planning
Standards used for

evaluation
Standards used for

incentive pay
Standards used for

continuous feed back
Paper
Barcode scanning
RF terminal
Hands free
Virtual displays
Shipping
Work
Measurement
Communication
18
Introduction
Top FMCG Organizations in India are moving to

higher stages of Warehouse Maturity
Companies
19
FWH /CDC
Depot
HUL
Stage 2 4
Stage 2 - 3
ITC
Stage 2 4
Stage 2 - 3
Nestle
Stage 3
Stage 2 - 3
Asian Paints
Stage 2 4
Stage 2 3
P&G
Stage 2 3
Stage 2 - 3
Godrej
Moving to Stage 2 3
Reckitt
Moving to Stage 2 3
Introduction
20% of total available space is rented out extra to

manage peak requirements
Current GSK Warehouse Network:
Location
Name
Hyderabad#
Extra Rented
Space
Location
Name
Permanent
Space
Extra Rented
Space
118,000
Guwahati
20,683
4,123
Madurai
50,150
Cuttack
17,000
10,000
Cochin
42,241
7,000
Zirakpur
14,000
Chennai
42,000
Ahmedabad
14,000
1,500
Ambala#
37,000
Siliguri
9,000
7,000
Patna
33,000
10,000
Indore
8,000
1,000
Bangalore
31,400
11,000
Jaipur
6,420
Calcutta
30,000
30,000
Raipur
4,600
2,000
Bhiwandi
40,500
4,500
Dehradun
3,100
Lucknow
29,220
5,000
Goa
1,950
Delhi
22,000
5,000
Pondicherry
1,100
Ranchi
20,764
5,000
Total
#Hyderabad
20
Permanent
Space
596,128
103,123
GSK has warehouses in 23

locations across India, totalling to
about 6 lakh sqft permanent
space, and 1.4 lakh sqft of space
rented out separately during peak
months.
There are 4 RDCs, 3 Child

Depots, and 20 non RDC
locations present in the network.
All warehouses in the GSK

network will be considered for
future mechanization.
and Ambala are RDCs the space available has been calculated taking into account both RDC Area as well as Depot Area
Introduction
Current Warehousing Practice at GSK could pose

business risk in future due to operational inefficiencies
Floor Storage & non
palletized / FMFO Violations
(will increase in future when
tracked at Batch Level
Space
Operations in Different
Sheds in certain
warehouse but could
increase
!
Manual Handing
Productivity
?
?!
Travel Times /
Unnecessary Motion
21
Waiting / Dead
Times / Delays
NVAs
Multiple Handling leading to

Damages, additional Manpower &
Truck Detentions
Introduction
Current Warehousing Practice at GSK could pose

business risk in future due to operational inefficiencies
22
Introduction
Our assessment shows that GSK Warehouses are in

Stage I in terms of Warehouse Maturity
Warehouse Maturity Mapping Matrix:
PROCESS
STAGE 1
STAGE 2
STAGE 3
STAGE 4
STAGE 5
Receiving
Unload, stage and

check in
reserve
primary
Cross-docking
Pre-receiving
Put-away
First-cum-first serve
Batched by zone
Batched and
sequenced
Location to stocker
Automated Put-away
Picking
Pick to single order
Batch picking
Zone picking
progressive assembly
Zone picking
downstream sorting
Dynamic picking
Check, stage and load
Stage and load
Direct load
Automated loading
Pick to trailer
No standards
Standards used for

planning
Standards used for

evaluation
Standards used for

incentive pay
Standards used for

continuous feed back
Paper
Barcode scanning
RF terminal
Hands free
Virtual displays
Shipping
Work
Measurement
Communication
23
GSK Current Warehouse Maturity Levels are marked in the chart given above.
Introduction
Primary KPIs are linked to variable remuneration for

3PLs in a Mechanized Warehousing Operation
SLAs
Inventory Record Accuracy
@ SKU-Batch Level
Space Utilization
Definition
Physical stock / book stock
Number of cases / sqft
> 99%
Block - ?
Rack - ?
Truck Turnaround Time
% of trucks with the Target time

(includes picking & loading times)
Order Execution Rate
# of Orders invoiced or
dispatched / Total Orders
received for the day
Dispatch Accuracy
Target
# of Order with dispatched

inaccurately / Total Orders per
day
Inbound:
9 Ton - ?
16 Tom - ?
Outbound:
4/5 Ton - ?
9 Ton - ?
16 Ton : ?
within the defined service

level (No of deliveries
within 24 hrs / 48 hrs)
within the defined service
level
Secondary KPIs Warehousing Cost, Manpower Productivity (Picking & Putaway), Damages, Picking Accuracy, Accidents
24
Agenda
25
1. Objectives
2. Introduction
3. Data Analysis
13
4. Planning Base
27
36
6. Next Steps
49
Miebach Consulting 3. Data Analysis
Data Analysis
Assumptions
26
Panchkula / Chandigarh and Ambala have been considered as the same Depot.
Transactions from depot numbers 2, 3, and 20 have been ignored.
Growth Figures & Stock Norms have been taken categorywise as provided by GSK.
Number of working days has been considered as 325.
Warehouse expenses have been classified into Rentals & LSP Remuneration, Truck Detentions
and Others.
A year on year price increase of 7% (on current calculated dealer prices) has been assumed.
Data Analysis
GSK has seen a total of ~3500 Cr of revenues in year

2012
Overall Sale by Value:
East
North
South
West
Total
%age Sale
January
135.54
40.98
160.13
36.23
372.87
10.4%
February
92.95
26.77
119.71
23.99
263.42
7.4%
March
80.70
29.90
113.23
22.44
246.27
6.9%
April
96.82
37.46
116.04
28.33
278.65
7.8%
May
96.39
39.90
125.23
27.54
289.06
8.1%
June
106.33
32.98
140.66
30.21
310.18
8.7%
July
123.97
34.88
142.76
32.72
334.33
9.3%
August
117.44
39.68
136.61
36.13
329.86
9.2%
September
125.05
39.57
149.40
33.03
347.06
9.7%
97.38
39.52
154.05
31.93
322.88
9.0%
November
112.78
39.21
139.64
31.86
323.50
9.0%
December
55.68
16.00
75.21
13.48
160.37
4.5%
1,241.02
416.85
1,572.68
347.90
3,578.45
34.7%
11.6%
43.9%
9.7%
October
Total
%age Sale
All figures in INR Cr
27
Maximum Sale happens in the

South region, followed by the
East.
Peak months of sale are January

and September, and December
is the month with minimum
sales.
Data Analysis
A total of ~133 lakh cases was sold by GSK in year

2012
Overall Sale by Cases:
East
North
South
West
Total
%age Sale
January
5.33
1.38
6.54
1.13
14.38
10.8%
February
3.86
0.82
4.83
0.76
10.27
7.7%
March
3.18
0.83
4.56
0.66
9.24
6.9%
April
3.72
1.04
4.70
0.79
10.24
7.7%
May
3.77
1.12
4.99
0.76
10.64
8.0%
June
4.17
0.97
5.71
0.83
11.67
8.8%
July
4.71
1.05
5.80
0.93
12.49
9.4%
August
4.69
1.16
5.43
0.90
12.19
9.1%
September
5.02
1.17
5.87
0.82
12.88
9.7%
October
3.58
1.19
5.98
0.80
11.54
8.7%
November
4.27
1.21
5.59
0.76
11.84
8.9%
December
2.16
0.51
2.96
0.34
5.98
4.5%
Total
48.46
12.47
62.98
9.48
133.39
%age Sale
36.3%
9.3%
47.2%
7.1%
All figures in lakh cases
28
Maximum Sale happens in the

South region, followed by the
East.
Peak months of sale are January

and September, and December
is the month with minimum
sales.
Data Analysis
On an average, GSK holds about 18 days of inventory

in depots
Region-wise Days of Cover:
East
North
South
West
Overall
June
19.13
24.63
16.56
21.77
18.49
July
14.19
23.75
16.35
19.72
16.39
August
15.53
21.69
16.74
20.70
17.04
September
14.18
18.55
13.91
23.64
15.05
October
15.02
18.25
13.75
24.20
15.33
November
13.56
17.19
14.93
22.82
15.17
December
33.76
53.32
37.63
66.00
39.21
Overall
15.90
22.73
17.04
25.37
17.71
RDC Ambala
4.90
RDC Hyderabad
3.28
All figures in days
Space planning at GSK for Depots is done taking a total of 20 days of inventory coverage. Future warehousing strategy will
take the same number into account.
Values for DoC at the RDCs will be taken the same as the values as calculated.
Note: Given stock buildup in December, the DoC is much higher than the rest of the months. Hence, DoC numbers for
December will not be considered for analysis.
29
Data Analysis
12 A category SKUs account for more than 50% sale

in cases across the year
SKU ABC:
100.00%
%age
Category
Count of
SKU's
Annual Sale
(mn cases)
Annual Sale
(INR Cr)
% Cases Sold
90.00%
80.00%
0%
12
7.94
1,899
70.00%
60%
21
2.71
915
60.00%
80%
50
2.01
491
50.00%
95%
134
0.67
274
40.00%
Total
217
13.34
3,578
30.00%
20.00%
10.00%
0.00%
%age SKU's
9%
C
18%
28%
37%
D
46%
55%
65%
74%
83%
% SKUs
Category level inventory coverage for GSK was calculated as

Category
Days of Cover
9.18
B
21.05
C
27.60
D
36.67
SKU Code
92%
30
Annual Sale Annual Sale

(mn cases)
(INR Cr)
SH0500P
Std. Horlicks 500 gm Pet Jar
1.62
488.96
SH0500R
Std. Horlicks 500g Refill(BIB)
1.52
447.57
SH1000P
Std. Horlicks 1 Kg PP Jar
0.72
200.43
BT0500R
Boost 500 gm BIB
0.67
193.51
SH1000R
Std. Horlicks 1 Kg BIB
0.67
186.46
5.20
1,516.93
39.00%
42.39%
Total
Note: The category level DoC numbers have been arrived at basis a
sample of the total data provided only. These numbers may change.
Description
Percentage
Data Analysis
12 A category SKUs account for more than 50% sale

in cases across the year
SKU ABC:
100.00%
A Category SKUs contribute to 60% of the total sale in

any location. However, given the small number of SKUs
contributing to the same, they will account only for about
25% of the total inventory.
Given the large throughput and small number of SKUs

for A Category, they are a clear candidate for Block
Storage.
To accommodate this, one solution which can be

proposed is Hybrid Storage, in which the A Category
SKUs are stored in a block, and BCD category SKUs
are stored in racks.
This ensures faster turnaround for the highest

throughput SKUs, and better storage density for the
lower throughput SKUs.
% Cases Sold
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
%age SKU's
9%
C
18%
28%
37%
D
46%
55%
65%
74%
83%
92%
% SKUs
31
Planning Base
Space Utilization for current GSK Warehouses was

calculated based on average stock
Location Name Space Available
Location Name Space Available
Avg Cartons Space Utilization

Stored (Depot)
(Avg / Avg)
Cuttack
17,000
29,765
1.75
Cochin
42,241
52,138
1.23
Guwahati
20,683
24,011
1.16
Chennai
42,000
61,669
1.47
Calcutta
30,000
71,643
2.39
Madurai
50,150
71,719
1.43
Patna
33,000
47,422
1.44
Ahmedabad
14,000
14,019
1.00
Siliguri
9,000
18,300
2.03
Raipur
4,600
6,069
1.32
Ranchi
20,764
26,787
1.29
Indore
8,000
7,285
0.91
Lucknow
29,220
25,926
0.89
Ambala
37,000
71,705
1.94
6,420
7,237
1.13
Delhi
22,000
24,494
1.11
Zirakpur
14,000
15,756
1.13
Bhiwandi
27,000
34,646
1.28
Bangalore
31,400
47,451
1.51
Hyderabad
118,000
105,307
0.89
Jaipur
32
Avg Cartons Space Utilization

Stored (Depot)
(Avg / Avg)
Current Space utilization is calculated by taking into account the average number of cartons of inventory in the warehouse (of
both SKUs as well as freebies as calculated), given the total permanent space occupied.
For Hyderabad / Ambala, space and volumes for both depot and RDC have been considered.
This number will be used to calculate future space requirements at a baseline level.
Data Analysis
Dispatches and inventory are confirmed to be normal

in nature, and peaks calculated accordingly
Peak Analysis:
33
%age of times
Qty is Covered
%age of Days
Covered
(+1)
84.10%
87.40%
(+2)
97.70%
95.10%
Peak dispatches and inventories are determined by calculating (+1) and (+2) for that particular location, and checking as
to what percentage of dispatch / inventory are covered by taking the same as peaks.
Manpower and total transaction areas for that location will be planned based on peak dispatches (as calculated), and average
receipts for each location.
Inventory peaking factor will be added to the inventory as calculated based on days of cover and sales.
Data Analysis
Dispatches peaks are calculated according to +2 of

overall dispatches
Dispatch Peaking:
Mean () of
Receipts
Dispatch P / A
Ratio (+1)
Dispatch P / A
Ratio (+2)
Pondicherry
597
1.56
2.13
2.99
Jaipur
471
2.18
3.37
1.89
2.77
Indore
435
1.97
2.94
4,140
2.16
3.33
Ambala
406
2.26
3.51
Patna
4,010
1.92
2.83
Raipur
348
1.94
2.88
Chennai
3,928
2.02
3.04
Dehradun
327
2.38
3.75
Bangalore
3,150
1.84
2.68
Goa
206
1.72
2.45
Cuttack
2,306
1.91
2.83
Ranchi
2,220
2.04
3.07
Guahati
1,958
1.82
2.64
Pune
1,858
1.74
2.48
Lucknow
1,613
1.86
2.72
Siliguri
1,366
1.97
2.94
Delhi
1,064
2.01
3.03
Zirakpur
757
2.21
3.42
Ahmedabad
736
1.80
2.61
Mean () of
Dispatches
Dispatch P / A
Ratio (+1)
Dispatch P / A
Ratio (+2)
Calcutta
6,019
1.92
2.84
Madurai
5,837
2.00
Hyderabad
4,532
Cochin
Location Name
Dispatch in Cases
34
Location Name
+2 covers for 95% of all days when dispatch

happens.
Planning for +2 of dispatches ensures that delays

and detentions due to manpower can be avoided.
Data Analysis
Inventory peaks are calculated according to +2 of

overall days when inventory is held
Inventory Peaking:
Mean () of
Receipts
Dispatch P / A
Ratio (+1)
Dispatch P / A
Ratio (+2)
Indore
7,163
1.27
1.54
1.63
Jaipur
7,114
1.21
1.43
1.21
1.42
Raipur
5,934
1.18
1.37
61,025
1.16
1.31
Ambala
3,752
1.34
1.67
Cochin
51,668
1.29
1.58
Dehradun
1,701
1.41
1.81
Bangalore
47,038
1.19
1.38
Goa
1,050
1.34
1.68
Patna
45,677
1.27
1.54
Pune
33,932
1.16
1.32
Cuttack
28,894
1.28
1.57
Ranchi
25,999
1.29
1.58
Lucknow
25,303
1.20
1.39
Delhi
24,017
1.19
1.38
Guahati
23,645
1.25
1.50
Siliguri
18,076
1.31
1.62
Zirakpur
15,391
1.18
1.35
Ahmedabad
13,752
1.22
1.43
Mean () of
Inventory
Inventory P / A
Ratio (+1)
Inventory P / A
Ratio (+2)
Madurai
70,758
1.23
1.46
Calcutta
70,224
1.31
Hyderabad
66,941
Chennai
Location Name
Dispatch in Cases
35
Location Name
There is not much of a peak seen in inventory across

different weeks of a month (10 15% peak).
However, there is a higher peaking factor seen across

the different months considered (25 30%peak)
Data Analysis
In most cases, space needed to serve +2 inventory

peaks is quite different from current available space
Inventory Peaking:
Space
Utilization
Space
Available
Space for
(+1)
Space for
(+2)
Ranchi
1.29
20,764
26,026
31,900
72,374
Guwahati
1.16
20,683
25,443
30,520
53,995
66,130
Cuttack
1.75
17,000
21,195
25,888
42,000
48,007
54,452
Zirakpur
1.13
14,000
16,077
18,477
1.44
33,000
40,410
49,034
Ahmedabad
1.00
14,000
16,694
19,655
Bangalore
1.51
31,400
36,993
42,859
Siliguri
2.03
9,000
11,627
14,364
Calcutta
2.39
30,000
38,611
47,816
Indore
0.91
8,000
9,977
12,087
Lucknow
0.89
29,220
34,126
39,734
Ambala
0.54
7,000
9,279
11,610
Bhiwandi
1.28
27,000
30,648
34,851
Jaipur
1.13
6,420
7,664
9,016
Delhi
1.11
22,000
25,675
29,779
Raipur
1.32
4,600
5,321
6,145
Location
Name
Space
Utilization
Space
Available
Space for
(+1)
Space for
(+2)
Hyderabad
1.24
54,000
65,189
76,393
Madurai
1.43
50,150
60,926
Cochin
1.23
42,241
Chennai
1.47
Patna
There is not much of a peak seen in inventory across different weeks of a month (10 15% peak).
However, there is a higher peaking factor seen across the different months considered (25 30%peak)
Dispatch in Cases
36
Location
Name
Data Analysis
Total Warehousing Cost for GSK in year 2012 was

~13 Cr, including detentions
Overall Cost:
(INR lakhs)
37
Region
Rentals
Detentions
Total Cost
Space
Cost / SqFt
Kolkata
East
46.80
3.03
121.28
30,000
13.00
Siliguri
East
15.55
1.85
37.99
9,000
14.40
Guwahati
East
34.75
0.91
63.19
20,683
14.00
Patna
East
47.92
11.33
117.49
33,000
12.10
Ranchi
East
27.41
2.59
50.03
20,764
11.00
Cuttack
East
13.46
1.55
40.48
17,000
6.60
Lucknow
North
25.25
3.99
45.76
29,220
7.20
Ambala
North
33.30
14.80
2.88
37,000
7.50
Dehradun
North
2.94
0.00
8.60
3,100
7.90
Delhi
North
36.96
1.40
16.19
22,000
14.00
Jaipur
North
5.76
0.29
18.41
6,420
7.48
Zirakpur
North
18.93
1.03
37.10
14,000
11.27
Detentions total up to ~ 52 lakhs for

the year 2012.
Overall rental costs, calculated as

basis rental cost / sqft and space
available, come upto ~ 6.5 Cr for the
year 2012.
Rentals make up about 55% of the

total warehousing cost (without
detentions).
Data Analysis
Total Warehousing Cost for GSK in year 2012 was

~13 Cr, including detentions
Overall Cost:
(INR lakhs)
Region
Rentals
Detentions
Total Cost
Space
Cost / SqFt
Bhiwandi
West
68.04
0.75
81.58
40,500
14.00
Ahmedabad
West
17.98
0.11
29.88
14,000
10.70
Indore
West
7.68
0.06
26.26
8,000
8.00
Raipur
West
4.97
0.04
14.60
4,600
9.00
Goa
West
2.22
0.00
6.95
1,950
9.50
Bangalore
South
41.45
0.32
83.14
31,400
11.00
Cochin
South
88.71
4.12
128.25
42,241
17.50
Chennai
South
94.50
1.82
141.01
42,000
18.75
Madurai
South
68.61
1.76
115.27
50,150
11.40
Pondicherry
South
1.19
0.00
6.06
1,100
9.00
Hyderabad
South
148.68
0.22
54.63
118,000
10.50
853.04
51.92
1,247.01
596,128
Total
38
Detentions total up to ~ 52 lakhs for

the year 2012.
Overall rental costs, calculated as

basis rental cost / sqft and space
available, come upto ~ 8.5 Cr for the
year 2012.
Rentals make up about 60% of the

total warehousing cost (without
detentions).
Data Analysis
Nabha has the maximum warehouse space available

for RM / FG storage
Warehousing Space at Factories:
Rajahmundhry
Sonepat
RM
Inside Factory
21,974
35,130
RM
Outside Factory
115,237
17,900
18,440
137,211
53,030
18,440
RM Total
FG
Inside Factory
18,317
8,000
FG
Outside Factory
12,290
30,607
8,000
167,818
61,030
18,440
FG Total
Total
Floor Storage
Racks
39
Nabha
Nabha
Rajahmundhry
Sonepat
145,844
57,670
18,440
21,974
3,360
Sonepat has only floor storage in the warehouses

used to store RM. There is no FG storage area
available in Sonepat.
Nabha and Rajahmundhry have warehouses

where there is both racking as well as floor
storage, but predominantly, RM is stored on the
floor or in a yard.
FG is sent in bulk to packing stations (at

Kompally, Baddi, Guwahati, etc.) from the
factories.
Data Analysis
Number of RM SKUs stocked in different factories is

different maximum being in Nabha
Warehousing Space at Factories:
Sonepat Rajahmundhry
Diameter (mm)
590
590
Length (mm)
1,774
Breadth (mm)
1,852
Height (mm)
Weight (kg)
910
10.0
882
10.2
910
9.7
RM is stored in drums, which are stacked vertically one on top of the

other, and weigh about 10kg each.
Number of SKU's
Average Inventory in 2012 (drums)
27
37
94
105,643
165,711
272,278
Total Dispatch in 2012 (kg)
39,970,492
Total Receipt in 2012 (kg)
49,044,030
Overall inventory coverage for Nabha is about 25 days of dispatches.
Note: Average Inventory for Rajahmundhry is based on given stock norm.
40
Nabha
Agenda
41
1. Objectives
2. Introduction
3. Data Analysis
13
4. Planning Base
27
36
6. Next Steps
49
Miebach Consulting 4. Planning Base
Planning Base
Based on category-wise growth figures, revenues will

grow to ~ 7,300 Cr by year 2016
Overall Growth Numbers:
Year
42
Units Sold
(mn)
Growth
Sales Value
(INR Cr)
Growth
Y2012
1,221.99
3,578
Y2013
1,327.70
8.7%
4,171
16.5%
Y2014
1,501.95
13.1%
4,886
17.2%
Y2015
1,743.99
16.1%
5,876
20.3%
Y2016
2,078.54
19.2%
7,254
23.4%
Y2017
2,491.88
19.9%
9,004
24.1%
A y-o-y price increase of 7% has been taken on the base price as calculated.
These have been calculated based on category-wise volume growth figures provided by GSK, along with caselot details and
sales value / case.
Planning Base
Conversion from batch level storage to lot level

storage will increase complexity in the warehouse
Batch vs. Lot Level Storage:
Currently, one batch is defined as the month in which one SKU which is manufactured / packed.
Going forward, SKUs will be stored at a line-shift level batch. Hence, future volumes and space requirements
will need to take this conversion into account.
Pilot at Batch (Shift level) storage was done by GSK in Lucknow, which led to a 30 40% increase in space
required. A 30% increase in space to account for this has been considered from 2015 onwards for
purposes of this presentation.
No of Batches / SKU at category level will be taken as an inputs for calculating the space
requirements for all locations
Assumptions:
1. One receipt for an SKU will consist of only one line-shift level lot.
2. FIFO is completely followed, all residual stock of old batches are either dispatches or liquidated.
43
Planning Base
Based on current utilization, 16 lakh sqft of space will

be required in 2017 after the batch to lot correction
Future Space Requirement for GSK Warehouse Network:
2012
Location
Hyderabad
Space
Available
2012
2017
2017
Space
Before
After
Required Correction Correction
2012
Location
Space
Available
2012
2017
2017
Space
Before
After
Required Correction Correction
118,000
130,047
244,160
317,408
Cuttack
17,000
21,961
36,621
47,607
Madurai
50,150
71,579
127,715
166,030
Delhi
22,000
16,468
33,257
43,234
Cochin
42,241
57,795
111,726
145,243
Ahmedabad
14,000
11,618
23,447
30,481
Chennai
42,000
48,567
90,824
118,071
Zirakpur
14,000
11,502
22,611
29,394
Patna
33,000
46,538
75,867
98,628
Siliguri
9,000
10,172
16,898
21,967
Kolkata
30,000
43,736
74,675
97,078
Jaipur
6,420
6,811
14,197
18,455
Bangalore
31,400
37,453
69,910
90,883
Indore
8,000
6,702
12,498
16,247
Ambala
37,000
31,933
63,538
82,599
Raipur
4,600
3,474
6,167
8,017
Lucknow
29,220
31,326
58,987
76,683
Pondicherry
1,100
2,342
4,468
5,808
Guwahati
20,683
27,915
46,146
59,990
Dehradun
3,100
2,163
4,068
5,288
Ranchi
20,764
27,425
44,550
57,915
Goa
1,950
896
1,574
2,046
Bhiwandi
40,500
24,055
47,652
61,947
Total
596,128
672,478
1,231,554
1,601,020
A 30% increase in space to account for the space correction due to conversion from batch level storage to lot level storage has
been considered here.
44
Planning Base
Two possible post GST Scenarios have been

evaluated to calculate future space requirements
Post GST Warehouse Network Scenarios:
45
The first scenario has 14 depot locations, Delhi as an RDC which serves the depots in the North (no Ambala RDC / Depot)
and Hyderabad as an RDC serving depots in the South.
For the first scenario, NHC Volumes for the locations north of Delhi (Zirakpur, Ambala, Dehradun) are served directly by
Baddi, and all other volumes are served from Delhi RDC.
The second scenario has 15 depot locations, including Ambala as a Depot cum RDC, which serves the depots in the North
and Hyderabad as an RDC serving depots in the South.
In this scenario, all volumes for the depots in the north will be served completely from RDC Ambala.
For both scenarios, In Y2017, Hyderabad will be the largest depot (cum RDC) followed by Coimbatore, which will be a
consolidation of volumes of Cochin and Madurai.
Planning Base
Scenario I will have North RDC in Delhi, and Scenario

II will have North RDC in Ambala
Comparison of Pre and Post GST Warehouse Networks:
Current Pre GST Warehouse

Network - 2012
Future Post GST Warehouse

Network 2017 (Scenario I)
Note: The size of the dots in the location give a comparison of the total area currently available and
required in the future for that location.
46
Future Post GST Warehouse

Network 2017 (Scenario II)
Planning Base
Given current utilization and growth numbers, overall

space required in 2017 would be ~ 15.6 lakh sqft
Future Space Requirement:
Current Permanent Space Available (sqft)
596,128
Extra Space Rented Out (sqft)
103,123
Total Space Available (sqft)
699,251
10.00
Year
Storage Area
Required (SqFt)
8.00
2012
6.72
6.00
2013
7.29
2014
8.02
2015
11.50
2016
13.35
2017
15.62
16.00
14.00
12.00
4.00
2.00
2012
2013
2014
2015
2016
2017
Space requirements have been calculated based on current average space utilization (cases / sqft) across different
warehouses, as shown before, and growth numbers, as provided.
Post GST Scenario and conversion from batch level storage to lot level storage has been considered from Y2015 onwards.
An increase of more than 2 times the current storage space is envisaged in the next 5 years.
47
Planning Base
Post GST, top 6 warehouse locations will require more

than 1 lakh sqft area
Comparison of GSK current and possible future Warehouse Network:
2012
Location
Hyderabad
Coimbatore
48
2014
2017
2017
Space Required
Current Space
before GST before
Available
correction
Space Required
after GST before
correction
Space Required
after GST after
correction
274,170
356,421
118,000
155,904
222,802
289,643
Chennai
42,000
58,627
104,869
136,330
Ambala
37,000
38,705
96,005
124,807
Patna
33,000
54,278
101,852
132,408
Kolkata
30,000
50,993
89,274
116,056
Bangalore
31,400
44,906
63,443
82,476
Bhiwandi
40,500
28,872
44,486
57,831
Guwahati
20,683
32,620
39,565
51,435
Lucknow
29,220
37,469
39,117
50,852
Cuttack
17,000
25,611
36,621
47,607
Delhi
22,000
20,041
33,257
43,234
Others
175,325
254,328
56,246
73,119
Total
596,128
802,353
1,201,707
1,562,220
In this scenario, Ambala and Hyderabad

are the RDCs in the North and the South.
Others in this post GST includes

Ahmedabad, Siliguri and Nagpur.
A total of 13.6 lakh sqft of storage area is

required in 2017.
A 30% increase in space to account for the

space correction due to conversion from
batch level storage to lot level storage has
Planning Base
Post GST, top 6 warehouse locations will require more

than 1 lakh sqft area
Comparison of GSK current and possible future Warehouse Network:
2012
Location
Hyderabad
Coimbatore
49
2014
2017
2017
Space Required
Current Space
before GST before
Available
correction
Space Required
after GST before
correction
Space Required
after GST after
correction
274,170
356,421
118,000
155,904
222,802
289,643
Delhi
22,000
20,041
170,348
221,452
Chennai
42,000
58,627
104,869
136,330
Ambala
37,000
38,705
Patna
33,000
54,278
101,852
132,408
Kolkata
30,000
50,993
89,274
116,056
Bangalore
31,400
44,906
63,443
82,476
Bhiwandi
40,500
28,872
44,486
57,831
Guwahati
20,683
32,620
39,565
51,435
Lucknow
29,220
37,469
39,117
50,852
Cuttack
17,000
25,611
36,621
47,607
Others
175,325
254,328
56,246
73,119
Total
596,128
802,353
1,242,793
1,615,631
In this scenario, Delhi and Hyderabad are

the RDCs in the North and the South.
NHC volumes for North are handled from

Baddi Factory.
Others in this post GST includes

Ahmedabad, Siliguri and Nagpur.
A total of 14.1 lakh sqft of storage area is

required in 2017.
A 30% increase in space to account for the

space correction due to conversion from
batch level storage to lot level storage has
Agenda
50
1. Objectives
2. Introduction
3. Data Analysis
13
4. Planning Base
27
36
6. Next Steps
49
Warehousing Model
The Load Unit defined for Mechanized Operations will

be a standard pallet
Load Units:
51
There are two load unit which will be considered for mechanized operations a 1200mm x 1200mm pallet and a 1000mm x 1200mm pallet.
These load units are used for stacking of similar SKUs to facilitate handling
through the use of mechanized or automated handling equipments.
These load units can be used for storage in Single Deep Selective Racking,
Drive In Storage, Double Deep Storage Systems, among others.
The height of the stack to be stored will be determined by approved stacking

norms, stability and cubic space utilization of the load unit, as calculated by a
best fit on the load unit.
Warehousing Model
The best fit will give the most optimal space utilization
for the load unit, given other hard constraints
Best Fit Calculations:
Rack Storage
1.2m x 1.0m
Height (mm)
Block Storage
Inventory
1000mm
1200mm
1400mm
1600mm
2000mm
2200mm
10,155
8,120
6,890
6,107
4,961
4,560
64.2%
67.0%
67.9%
67.1%
66.4%
65.7%
20
25
30
34
42
45
High
Medium
Medium
Low
High
High
Rack Height
G+6
G+5
G+5
G+4
Cases / SqFt
3.77
4.03
4.84
4.53
# Pallets
Pallet Utilization
Wtd. Avg. Cases / Pallet
Stability
Rack Storage
1.2m x 1.2m
Height (mm)
2.14
2.29
1200mm
1400mm
1600mm
2000mm
2200mm
# Pallets
8,937
7,195
6,111
5,404
4,400
4,066
Pallet Utilization
60.9%
63.2%
64.0%
63.3%
62.5%
61.6%
23
29
34
38
47
51
High
Medium
Medium
Low
High
High
Rack Height
G+6
G+5
G+5
G+4
Cases / SqFt
3.71
3.97
4.66
4.37
Stability
Total Stock
2.05
2.23
*Note: Rack Height was taken considering the specifications (last pick height) for the MHE used for warehouse operations.
52
360
199,417 cases
A best fit exercise was conducted for

the entire inventory of a single
warehouse (Hyderabad), to determinde
the best load unit to be used
Block Storage
1000mm
Total # SKU's
Warehousing Model
The best fit will give the most optimal space utilization
for the load unit, given other hard constraints
Best Fit Calculations:
Rack Storage
1.2m x 1.0m
Height (mm)
Block Storage
Inventory
1000mm
1200mm
1400mm
1600mm
2000mm
2200mm
10,155
8,120
6,890
6,107
4,961
4,560
64.2%
67.0%
67.9%
67.1%
66.4%
65.7%
20
25
30
34
42
45
High
Medium
Medium
Low
High
High
Rack Height
G+6
G+5
G+5
G+4
Cases / SqFt
3.77
4.03
4.84
4.53
# Pallets
Pallet Utilization
Stability
Rack Storage
1.2m x 1.2m
Height (mm)
2.14
2.29
1200mm
1400mm
1600mm
2000mm
2200mm
# Pallets
8,937
7,195
6,111
5,404
4,400
4,066
Pallet Utilization
60.9%
63.2%
64.0%
63.3%
62.5%
61.6%
23
29
34
38
47
51
High
Medium
Medium
Low
High
High
Rack Height
G+6
G+5
G+5
G+4
Cases / SqFt
3.71
3.97
4.66
4.37
Stability
Total Stock
199,417 cases
A best fit exercise was conducted for

the entire inventory of a single
warehouse (Hyderabad), to determinde
the best load unit to be used.
2.05
The pallet recommended for Racking

Storage is a 1.2m x 1.0m x 1.4m pallet,
and for Block Storage is a 1.2m x 1.0m
x 2.2m pallet.
2.23
*Note: Rack Height was taken considering the specifications (last pick height) for the MHE used for warehouse operations.
53
360
Block Storage
1000mm
Total # SKU's
Warehouse Clustering
GSK locations have been categorized into four

clusters based on given parameters
Cluster Definition:
Cluster I:
High Mechanization & High
Process Maturity
Cluster II:
Simple Mechanization &
Medium Process Maturity
Cluster III:
No Mechanization & Low
Process Maturity
Cluster IV:
High Storage Density & Medium
Process Maturity (Factories)
54
High Space > 1,00,000 Sqft

High Rental Rates : > 15 Rs / Sqft
12m high building, specialized flooring & dock doors
Selective Racking / Hybrid Storage
Handling using specialized MHEs such as Reach Trucks
WMS RF Enabled Operations
Medium Space 50,000 1,00,000 sqft

Medium Rental Rates: 10 - 15 Rs / sqft
6-8m High Building & basic flooring
Use of pallets for storage & handling
Block Storage with Lane Concepts for FMFO adherence
Handling using MHEs or HPTs
LMS Paper Based Operations
Low Space: < 50,000 sqft

Low Rentals: < 10 Rs / Sqft
4-6m High Building (Current Facilities)
Block Storage with lane concepts for FMFO Adherence
Use of Pallets for Storage & Manual Handling with HPTs / trolleys
LMS / Bin Card Systems
Premium Space (Factory Premises)

4-6m High Building (Current Facilities)
Selective Racking / Drive In Storage / Other Denser Storage
Use of Pallets for Storage & Manual Handling with HPTs / trolleys
WMS RF Enabled Operations
Cutoffs for the first three clusters is based on similar

Miebach experience & current GSK operations
High (more than
1lakh sqft)
Medium (50k
1lakh sqft)
Cluster II
Low (less than

50k sqft)
Low (less than

INR 10 / sqft)
55
Cluster I
Cluster I
Cluster II
Cluster II
Cluster III
Cluster III
Medium (INR 10
INR 15 / sqft)
High (more than

INR 15 / sqft)
The third parameter taken for clustering is the projected throughput high, medium or low, based on projected sales.
All clustering is done for calculated 2017 numbers.
Clustering is done for currently given warehousing

network, given growth in space, volume and rentals
Cluster I
Cluster II
Location
Space
Rentals
Hyderabad
118,000
37,000
Ambala
Location
Space
Rentals
10.5
Cochin
42,241
7.0
Madurai
Location
Space
Rentals
14.7
Cuttack
17,000
7.15
50,150
8.0
Zirakpur
14,000
11.27
Kolkata
30,000
12.0
Ahmedabad
14,000
10.70
Chennai
42,000
17.3
Jaipur
6,420
7.48
Patna
33,000
10.0
Indore
8,000
8.00
Bangalore
31,400
11.0
Raipur
4,600
9.00
Bhiwandi
25,000
12.0
Pondicherry
1,100
9.00
Ranchi
20,764
11.0
Dehradun
3,100
7.88
Guwahati
20,683
14.0
Goa
1,950
9.50
Lucknow
29,220
7.2
Delhi
22,000
14.0
9,000
14.4
Siliguri
56
Cluster III
All factory locations will be taken as under Cluster IV
Space and rentals given are current numbers.
Warehouses may fall under different clusters before and after GST hence
implementation roadmap for mechanization will be drawn accordingly
Cluster II
Cluster I
Location
Space
Rentals
Hyderabad
127,576
10.50
48,544
Ambala
Coimbatore
Chennai
57
Cluster III
Location
Space
Rentals
12.00
Cuttack
21,961
7.15
62,497
10.00
Siliguri
8,387
14.44
Bangalore
33,986
11.00
Ahmedabad
13,685
10.70
Bhiwandi
20,899
12.00
Nagpur
7,867
9.00
Guwahati
23,934
14.00
Delhi
16,468
14.01
Lucknow
20,780
7.24
Location
Space
Rentals
Kolkata
52,645
7.00
Patna
120,340
8.00
56,007
17.30
All factory locations will be taken as under Cluster IV.
Rentals given here are current numbers.
Space given here is projected space if a post GST scenario was present in 2012.
Agenda
58
1. Objectives
2. Introduction
3. Data Analysis
13
4. Planning Base
27
36
6. Next Steps
49
Project Deliverables
Phase 1: Baselining
Data gathering, analysis and validation of data for all warehouses in terms of storage,
throughput for current and projected volumes
Site Visits and understanding of existing operations, in representative warehouses,
Mapping KPIs in existing setup and benchmarking with best in class operations in India.
Benchmarking warehousing setup and models adopted by leading FMCG companies.
Workshop to finalize planning parameters and operational inputs for evaluation of
warehousing models
Phase 2: Blueprinting
Warehouse Clustering based on influencing parameters such as rental, SKU & Order
Structure, throughputs and inventory.
Definition of Warehousing Models suited for each cluster.
Detailing of concept in terms of logistics equipments, layout and material flow processes.
Financial Evaluation (Investment, Cost of Operations, NPV / IRR calculation) for all
warehouses.
Recommendation on appropriate warehousing model for each cluster
Evaluation and Recommendations of Own / lease options for land, building , logistics
infra, IT and manpower.
59
Project Deliverables Contd..
Phase 3: Road Ahead
Fine Tuning Based on inputs from Steering Committee, if any
Pilot Implementation Next Steps and warehousing roadmap for future
Handover of Documentation (Baseline & Blueprint) and Warehouse Commander Tool for
future evaluations
60
Contact
Rajan Ekambaram
Nikhil Chalakkal
Tel.: + 91 99 00 52 12 30
E-Mail: rajan@miebach.com
Tel.: + 91 99 72 15 38 41
E-Mail: nikhil.chalakkal@miebach.com
Miebach Consulting India Pvt Limited

No 5, 80 Feet Road
Koramangla IV Block
Bangalore
Tel.: + 91 80 255 33 676
Fax.: + 91 80 255 33 677
Pradeep Kumar
Tel.: + 91 99 02 07 08 70
E-Mail: pradeep.kumar@miebach.com
Homepage: http://www.miebach.com
Miebach Consulting Group:
Bangalore, Barcelona, Berlin, Bogot, Buenos Aires, Chennai, Frankfurt, Guatemala City, Indianapolis,
Katowice, Lima, Madrid, Mailand, Mexico City, Santiago de Chile, So Paulo, Zug
Copyright: all applications and elements of this presentation are the property of Miebach Consulting Group or registrated licenses from Shutterstock. Any copying of graphic decorative elements can cause violations of copyright.
63
Factories
Nabha has over 1.5 lakh sqft available as

warehousing space for RM and FG
Warehousing Space at Factories (detailed):
Location Code
Warehouse Name
Sonepat
Sonepat
Location Code
Material Stored
Type
Harsnana Cold Store
RM
Floor Storage
Outside Factory
10,600
Yogesh Cold Store
RM
Floor Storage
Outside Factory
7,840
Material Stored
Type
Warehouse Name
Location Space Available (sqft)
Nabha
AKPL warehouse
FG
Floor Storage
Outside Factory
12,290
Nabha
Ramesh Chand
RM
Floor Storage
Outside Factory
3,487
Nabha
Rajminder Warehouse
RM
Floor Storage
Outside Factory
3,300
Nabha
Jaswinder Kaur
RM
Floor Storage
Outside Factory
1,800
Nabha
Trivani Dass
RM
Floor Storage (Yard)
Outside Factory
Nabha
Jaswinder Kaur
RM
Floor Storage (Yard)
Outside Factory
Nabha
Gabha Cold store
RM
Floor Storage
Outside Factory
28,050
29,800
64
Nabha
Manav cold store
RM
Floor Storage
Outside Factory
34,000
Nabha
Kapoor Cold Store
RM
Floor Storage
Outside Factory
14,800
Nabha
Raw Materials & Fumigation Chamber
RM Floor Storage & Racks
Inside Factory
21,974
Nabha
Finished Goods space
FG
Inside Factory
18,317
Floor Storage
Factories
Nabha has over 1.5 lakh sqft available as

warehousing space for RM and FG
Warehousing Space at Factories (detailed):
Location Code
65
Warehouse Name
Material Stored
Type
Rajahmundhry
Rajahmundry1 General Store
RM
Racks
Inside Factory
3,360
Rajahmundhry
Rajahmundry2 General Store
RM
Floor Storage
Inside Factory
3,360
Rajahmundhry
Rajahmundry3
RM
Floor Storage
Inside Factory
3,360
Rajahmundhry
Rajahmundry4
RM
Floor Storage
Inside Factory
3,360
Rajahmundhry
Rajahmundry5
RM
Floor Storage
Inside Factory
3,360
Rajahmundhry
Rajahmundry6
RM
Floor Storage
Inside Factory
3,360
Rajahmundhry
Rajahmundry7
RM
Floor Storage
Inside Factory
6,085
Rajahmundhry
Rajahmundry8
RM
Floor Storage
Inside Factory
6,790
Rajahmundhry
Rajahmundry9
FG
Floor Storage
Inside Factory
8,000
Rajahmundhry
Rajahmundry10 A
RM
Floor Storage
Inside Factory
1,095
Rajahmundhry
Rajahmundry10 B
RM
Floor Storage
Inside Factory
1,000
Rajahmundhry
JSN
RM
Floor Storage
Outside Factory
6,900
Rajahmundhry
Omar Ali Shah Cold Storage
RM
Floor Storage
Outside Factory
11,000

Warehouse Analytics

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Warehouse Analytics

Uploaded by

Copyright:

Available Formats

Future Warehousing Strategy: GlaxoSmithKline

Miebach Consulting 1. Objectives

The overall objective of the proposed assignment is

Future Warehousing Strategy: To draw up a warehousing roadmap to be adopted

Warehouse Process Reengineering: To increase warehousing efficiency through

WMS Implementation: To Implement Warehouse Management System (WMS) to

Miebach Consulting 1. Objectives

Miebach Consulting 1. Objectives

Project Deliverables Contd..

Miebach Consulting 1. Objectives

Meeting Objectives Warehousing Strategy

Understanding of existing GSK operations, benchmarking of warehousing setup,

Finalization of planning parameters and operational inputs for warehousing models.

Preliminary results of clustering of warehouses.

Miebach Consulting 1. Objectives

Miebach Consulting 2. Introduction

Mechanized Warehousing Infrastructure

Standardized Load Unit (Pallets)

6 - 7 High Selective Racking

Reach Trucks for Pallet Handling at higher level

WMS with directed putaway & picking

Miebach Consulting 5. Warehousing Models

Mechanized Warehousing Infrastructure

Dock Doors Receipt & Dispatches

Hybrid Storage Methodology

Miebach Consulting 5. Warehousing Models

Mechanized Warehousing Infrastructure

Hybrid Picking Pallet / Batch / Multi Order

Barcoding with Radio Frequency Technology

Dock Levellers for speeding up loading /

Miebach Consulting 5. Warehousing Models

Miebach Consulting 5. Warehousing Models

Key Drivers for Mechanization of Warehouses

Number of SKUs and

Warehousing Space &

Miebach Consulting 2. Introduction

Volumes (Storage &

Warehousing Options to be evaluated

Rack Storage (12m Height Building)

Block Storage ( 6-7m Height Building)

Hybrid Storage (12m Height Building)

Miebach Consulting 6. Next Steps

When is the right time to Mechanize ?

Weekly FMFO 15 Sq Ft / Pallet

Manual Rs 20 / Sq Ft /Month Rent

Space > 75K Sqft

Warehouses under multiple

Miebach Consulting 2. Introduction

Other Envisaged Benefits of Mechanization

Improvement in Inventory Record Accuracy

Reduction in damages at warehouse

Reduction in Manpower Cost

Improvement in Truck Turnaround Time

Miebach Consulting 2. Introduction

Non - Availability of large warehouses, Increasing Rentals &

Total Number of Warehouses

25 Depots & 4 RDC's

Number of Mechanized Warehouses

150,000 - 350,000 sqft

15,000 - 30,000 Pallet

75,000 100,0000 sqft

Land & Building

Own & Lease

Storage Systems & MHE's