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The Spanish government adjusts the national minimum wage on the basis of consultations with the social partners, and of forecasts for inflation productivity and the general economic situation. In the UK the government decides on minimum wage adjustments on the basis of recommendations from the Low pay commission made up of a chair three members from business three from trade unions and two LPC takes the economic and social implications of any increase in to account.

An example of a country with less social partner input is the Netherlands where the minimum wage is adjusted by the government based on the development of collectively economic developments or a rise in unemployment or the number of employees with disabilities the government can abandon this mechanism temporarily as is currently the case. Where the jewellery includes gold and silver or any alloy containing gold and silver the market value of such gold. Businesses already function with considerable administrative responsibility for a number of laws including the National Insurance Act.

Wednesday, 1 October 2014

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India is bordered on the north by the Himalaya Mountains. For this reason creating road and rail connections from this direction is a major undertaking. In the south, though the Indian peninsula is well suited for sea harbors. India is indeed the country with the world’s second – largest population. But the population is unequally distributed, creating a major challenge for logistics service providers. The most important export countries for Indian products are the United States, the Unites Arab Emirates, China, Singapore and Great Britain.

The biggest import trading partners are China, the United States, Switzerland, the United Arab Emirates and Belgium. A vital step in India’s further development is expanding the road and rail network, and modernizing harbors and airports. In the process of globalization, which is expanding India’s position in world trade transport volume has climbed rapidly in recent years. The expansion of the logistics infrastructure has been unable to keep up with this pace. For this reason transport capacities have already reached their limits.

The transshipping times for ships in Indian harbors are three to four times longer than the average time in the West. Logistics costs are also very high in international comparison because of the poor infrastructure. For this reason India will have difficulties positioning itself as a global logistics hub in years ahead. Road transport is especially important for India’s transport system. After all India has one of the world’s largest road networks with a total length of 3.3 million kilometers. But much of this network does not meet Western standards.

For instance a truck takes five to six days to cover the 2,061 – kilometer – long route between Bangalore and Delhi. The government is indeed trying to introduce counter- measures and shift freight transports from the roads to the rails. But first the rail infrastructure must be expanded and the connections to harbors and airports improved. Many sub – areas of the 63,000- kilometer- long rail network still use the technology of 1947, the year that British colonialists left. Only about one – quarter of the routes are electrified.

One other challenge is the four gauge widths used in the rail network. Road transports are characterized by small forwarders who frequently use antiquated technology. In addition the splintered political structure requires an excellent understanding of local conditions. As national highways in India are built android transports Road transport are increasingly liberalized the productivity of road shipping will rise in years ahead.

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The success and credibility of retailers depends on ensuring continuous availability of a wide range of products in optimum quantities across a widely spread operational network. This translates to a high level of control on logistics. The retail segment also demands the highest quality of service from logistics solution providers Global benchmarks are being increasingly applied to retail operations in India. Not only do logistics service providers require breadth of transportation network but also expertise in storage and value – added services to cater to such a dynamic market.

Large expansions by existing players and the entry of new players are the major drivers of the Indian organized retail market. Though the market slowed down due to the economic downturn the rebound in late 2009 and consequent recovery in consumer sentiments helped the organized retail industry expand by 25% in 2009 – 10. Driven by buoyant consumer demand and the expansion plans of organized retail players CRISIL Research forecasts the sector to grow at an average annual rate of 23% to Rs 3,4 trillion in 2014 – 15 from Rs 1,2 trillion in 2009 – 10.

Consequently, organized retail penetration is likely to increase to 9.1%in 2014 – 15 from 6.4% in 2009 – 10. Increasing industrial investments in manufacturing near Chennai and IT investments in Bangalore and other southern cities are expected to drive the growth of retailing especially in south India thus pushing the demand for modern warehouse space. In addition the increasing relationships of logistics players – DHL, FedEx, Gait, with retail companies – Celio, pantaloons Future group, Danone are increasing the demand for quality warehousing spaces in India.

With the increasing demand for modern warehouses global players have started foraying in to the market either in partnership with domestic real – estate companies or by setting up their own subsidiaries in the country. For example concerto developments one of the largest logistics and warehouse developers in Europe has set up a company in India logistics India real Estates which is set to open a chain of modern warehouse and logistics projects. Its first warehouse infrastructure is to be constructed in Chennai followed by one in Bangalore.

Food retailing has also gained importance in the recent past. India’s food retail sector worth around Rs 3.1 trillion is expected to more than double to R 6.7 trillion by 2025 riding on the emerging organized retail as well as the change in consumption patterns along with fast changing demographics and habits.

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These corridors will help boost India’s industrial productivity by transporting raw materials to industrial hubs and manufactured goods to ports in a faster more efficient manner and at reduced costs. This will require the construction of warehouses with world – Private freight terminals PFT: This is expected to enable the rapid development of a net work of freight terminals and integrate rail transport with the supply chain to provide efficient logistics to end – users. The government’s dedicated freight corridor.

DFC programmed is proposed to be completed in stages with the western Delhi – Mumbai and eastern corridors Ludhiana- Delhi – Kolkata being the first two to be developed. - I of the dedicated freight corridor. Improvement of the eastern corridor will also contribute to the development of the proposed trans- Asian Railway involving infrastructure investments in India, Bangladesh and countries further east.

Class facilities for the storage and dissemination of goods in transit. Diamond Rail corridor project a dedicated freight corridor is being commissioned in order to connect the western and eastern rail routes. In addition an investment of Rs 58.5 billion is being made n cooperation with the government of Japan to commence engineering services for phase. Indian has one of the largest rail networks in the world and is the cheapest means of transport.

Many initiatives are being planned to increase its utility and geographic reach. One is the construction of a dedicated freight corridor with an investment of over Rs 4 billion slated for 2008- 09 and Rs 3o billion for 2009 – 10. The dedicated freight lines will help the railways increase their capacity by building high – capacity higher speed dedicated freight corridors along the golden quadrilateral.

As per the present policy the government is focusing on accelerating the development of the network for freight terminals with private investments in order to integrate rail projects with the supply chain. The government has already permitted 15 private train container operators to run container trains. It has also rolled out the following two schemes to encourage investments in rolling stock and terminals. Special freight train operator SFTO:

Through this share of railways is expected to increase in non – conventional traffic such as bulk alumina fly ash and bulk fertilizers. The recent increase in containerized cargo has led to a demand for its movement through railway containers. The government due to a lack of funds for infrastructure has opened up the sector for private investments in 2006 thus paving the way for PPPs.

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Other factors can include the need for flexible operation to meet important demand fluctuations such as seasonal variations, and the perceived future stability and growth of the market and product range. The level of technology adopted in any particular application should be chosen because it almost nearly matches the given requirements and objectives.

It is not true that automation or similar technologies are accurate in every case. It is true that good probably computer- based communication and information systems are vital in every application irrespective of the technology level.The option of unit load or loads – pallets roll or cage pallets tote bins-will be determined by the nature and characteristics of the materials passing through the supply chain and this clearly encompasses an enormously wide range of goods,

unit quantities, and pack types and sizes this may appear as a very important factor more subject to basic operation than to strategic influences. However within the warehouse it can influence the option of handling equipment and the types of storage systems.

In the wider context it will affect transport operations in terms of vehicle loading and unloading and vehicle utilization. Warehouse Management and physical distribution are important flow control activities in the supply chain network.

Regardless of the efficiency with which all preceding activities have been conducted these activities have major influence in determining the degree to which total customer service level is achieved. A further consideration here is whether the warehouse facility should be an own- account operation run by the company or outsourced and run by a 3PL.Within a supply chain network there is an issue not only of what materials to stock and in what quantities but also in what locations.

A further consideration here is whether the warehouse facility should be an own- account operation run by the company or outsourced and run by a 3PL.Within a supply chain network there is an issue not only of what materials to stock and in what quantities but also in what locations. In present global business environment the quality of warehousing and distribution management can have major impact on corporate performance and profitability.

The following flow chart clearly shows hierarchy of decisions to be made about the selection of warehouses in the strategic marketing policies with an objective of achieving max customer service level.

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A further consideration here is whether the warehouse facility should be an own- account operation run by the company or outsourced and run by a 3 PL. Within a supply chain network there is an issue not only of what materials to stock and in what quantities but also in what locations. These considerations will also impact on the perceived need for potential flexibility which in turn can influence decision on the type of warehouse and the level of technology to be used.

Materials handled can include raw materials WEEP, OM Auto part, packaging materials and finished goods in a span of material types, sizes weights, products lives and other characteristics. The units to be handled can range from individual small items through carton boxes, special storage containers for liquids drums, sacks, and palletized loads. Special requirements for temperature and humidity may also have to be met in the case of perishables and all of these will impact on the type of warehouses and technology level.

Long – term market potential for growth and for how the product range may expand will influence decisions on the size and location of a warehouse facility including space prospective expansion. The type of operation the design capacity and size of a warehouse and its location will all be influenced if not directly determined by its exact role and position in the supply chain network, and the role capacity and location of any other facilities in the supply chain.

The customer base, level of inventory, the need for optimization of inventory, time compression in the supply chain and the overall customer service levels should also be considered when deciding on type, size and location. Options can include distribution centers devoted to specific markets or parts of the product range distribution centers dedicated to serving specific geographic areas, or regional distribution centers that hold for example the fast moving product lines, with the slower lines held only in a Regional distribution center RDC.

The option depends on such factors as customer base, product range and service levels required. The options on the level of technology have already been noted , and the range can go from very basic installations with high manual input and least mechanization to fully automated and robotic installations.

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Tuesday, 30 September 2014

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Powered Mobile racking

Powered mobile racking is effectively single deep APR, with the racking except the end or outer rows mounted on electrically powered base frames. Operationally it has similar characteristics to APR but it is slower in use and the pallet position utilization is likely to be similar to APR at 95%. This type of storage is expensive in equipment and floor costs and it tends to be slow in operation. However it gives very dense storage and is suitable for the typically large number of product lines have low stock and now throughput. It also finds use in cold- storage applications where space costs are especially high and however temperature variations are reduced by cutting the air space in the storage area.

Pallet live storage

Live storage system are made up made up of inclined gravity roll conveyors laid out side by side and at a number of vertical levels. Pallets are fed in at the higher end and removed as required at the lower. Such a system imposes FIFO. The only accessible pallets are at the out feed end so any one lane should only hold pallets of the same product line.

Pallet live storage systems are suitable for very fast – moving product lines. They can provide effective order picking regimes which automatically refill empty locations, and also provide physical separation between picking and replenishment operations.

Small item storage systems

As with palatalized storage system there is a range of different types system for holding small items. With small item storage it often happens that different system are incorporated into one installation. Consequently the concept of standard equipment sizes and molecularity is important for small item storage systems.

The following lists are some of the storage systems used for small items:

· Shelving

· Tote bins

· Drawer units

· Dynamic systems- mobile and live storage

· Mechanized systems- carousels and mini loads

Summary

Warehouses may be distributed in the field in order to shorten to shorten transportation distances to permit rapid response to customer demand. This study material shows us the process of decision making in the selection of type of warehouse between private and public warehouse and its location preferences in the whole supply chain network.

It gives various functions involved in warehouse operations. It also gives the selection of storage system required to suit various types of goods in order to increase the efficiency of warehouse operations.

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Once in place the distribution provides most of the insights required for slotting the entire warehouse. The item- order completion distribution identifies small groups of items that can fill large groups of orders. Those small groups of items can often be assigned to small order completion zones in which the productivity processing rate and processing quality are two to five times better than that found in the general warehouse. The item order completion distribution is constructed by ranking the items from most to least popular.

Beginning with the most popular item then the two most popular items, then the three most popular items and so on the items are put against the order set to determine what portion of the orders a given subset of the items can complete. In a multiple warehouse the warehousing operations can either be centralized or decentralized. This type of decentralizing will be advantageous for the following situations.

Consumption centers are located at different places and at distant places. The transaction of goods is very high. In decentralized warehousing operations each warehouse is considered as a separate entity. Thus each warehouse will have a separate safety stock there will be orders from lower warehouse to the upper warehouse and there will be in – transit stocks. Each warehouse will optimize inventory individually. The advantages of such system are but the system has the disadvantages of having high running cost due to increased stock and personnel in each warehouse and due to handling of more information.

As against this in a centralized system of warehousing operations order processing storing of safety stocks and control stock movements will be done centrally by a central warehouse. Finally those items in the upper left hand quadrant of the distribution generate the fewest picks per unit space they occupy and they should be assigned positions in the bronze zone. This example is not meant to make an end all recommendation for slotting broken case picking systems.

That depends on many other factors including the wage rate the cost of space the cost of capital the planning horizon and so on. Instead this example is presented to illustrate how the popularity- cube- movement distribution is used in the slotting process. The important requirement for this centralized system is a well established information system. But this system has the following advantages. Orders for multiple items on a single source can be bunched together 2 there will be reduction in safety stock by a factor equal to a wherein is the number of warehouses.

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A family item is to be stored in automated highly storage mode , Family B in a semi- automated moderately productive picking mode and family C in a manual picking mode that offers high storage density. 5 percent of the items Family A may make up 50 percent of the picking activity the next 15 percent of the items Family B may take us to 80 of the picking activity and remaining 80 percent of the picking activity and the remaining 80 percent of the picking activity Family C cover the other remaining picking activity.

Or these families we can assign the different type of storage methods source.

World class warehousing Decisions on the storage of ABC classified items. Hence this type of materials is to be stored in stored in large storage area along the pick line- carton flow rack. The basic principle is to assign the most popular items to the easy accessible area in order to optimize the traveling time and to increase the picking efficiency. Materials with low cube movement and high popularity are generating many picks per unit of space that they occupy and do not occupy much space along the pick line.

This need to be in highly productive picking mode. In this case light directed carousels are recommended because the picking productivity is high and we can afford the carousels for items that do not need large storage housings on the line and do not need to be restocked frequently. Items with low popularity and low cube movement cannot be justifiably housed in an expensive storage mode.

Hence they are candidates for bin shelving and modular drawers. Done properly slotting takes into account both item- popularity distribution and the cube- movement distribution. These distribution can be combined into a joint distribution. An example popularity- cube- movement distribution for broken case picking is presented. In this example those item exceeding a certain cube- movement thresh old are assigned to carton flow rack Materials with high cube and turn over frequently need to be restocked at frequent basis.

It also needs a larger storage area with to relocate or restock the items when compare to the materials with low cube movement. Once the storage mode assignments have been made the preference regions for each storage mode become their popularity – cube movement distribution. Those items in the bottom right – hand portion of the distribution generate the most picking activity per unit space they occupy in the storage mode.

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A public warehouseman is responsible for the protection of the quality and quantity of the goods entrusted to him. He is not interested in the ownership or the use of goods, and is responsible for the goods only as a bailee. He is expected to take care of the goods as a man of normal prudence. He is an ideal third party between the buyer and the seller between the borrower and the lender. A warehouse receipt for goods is accepted for sale or for borrowing. Thus the warehouses renders physical support to trading.

In the warehouse the goods of one owner are segregated from those of other owners. The borrower has no control over these goods. They cannot be used sold or even handled by the borrower without the previous and written permission of the bank. Thus it becomes a perfect security for a loan. It is specifically insured beyond the reach of attachment or legal process.

In practice it is desirable to used both private and public warehousing according to the products and customer based.

Also private warehouses need not owned. Normally goods in the go down of a trader or a private warehouse of a firm are a part of the general assets of the trader. They are not a separate entity. An additional Rs. 1,00,000/- worth of goods might swell the inventory of the trader but it does not correspondingly increase his ability to borrow. If additional Rs. 1,00,000/- worth of goods ware stored in a warehouse they can be used as collateral for borrowing.

They may be rented or leased with or without material handling and other office equipments. In consequence the location of the seller’s production and distribution facilities in relation to those of customers is an important decision making process. There is less risk of fire in a warehouse than in a factory.

Accordingly insurance rates for goods in a warehouse are lower. Moreover there is a practical guarantee against the temptation of a hard – pressed dealer or manufacturer to set fire to his establishment to convert the goods which otherwise cannot be sold in to cash.

It is apparent that no seller can be equally near all customers or prospective customers. The space and time also impose significant limitation on the. In order to ensure that such an eventuality does not arise organizations like banks insists that borrowers store their goods in public warehouse. For this purpose they offer concessional margins and rates of interest. In a public warehouse the warehouseman’s integrity is the only security for the owner of the good.

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These warehouses are owned managed and controlled by central or state government or public corporations or local authorities. Both government and private enterprises may use these warehouses to store their goods. Central Warehousing Corporation of India state warehousing corporation and Food Corporation of India are

examples of agencies maintaining government warehouses. The warehouses which are owned and managed by the manufacturers or traders to store, exclusively their own stock of goods are known as private warehouses. Generally these warehouses are constructed by the farmers near their fields by wholesalers and retailers near their business centers and by manufacturers to the nature of products to be stored.

The warehouses which are run to store goods of the general public are known as public warehouses. Anyone can store his goods in these warehouses on payment of rent. An individual a partnership firm or a company may own these warehouses. To start such warehouses a license from the government is required. The government also regulates the functions and operations of these warehouses. Mostly these warehouses are used by manufacturers wholesalers exporters, importers government agencies etc.

Warehouses of India :These warehouses are owned managed and controlled by government as well as private agencies. Private bonded warehouses have to obtain license from the government. Bonded warehouses are used imported goods for which import duty is yet to be paid. In case of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid.

These warehouses are generally owned by dock authorities and found near the ports.These warehouses are owned managed and controlled by co- operative societies. They provide warehousing facilities at the most economical rates to the members of their society. A warehouse may be privately owned and operated by a company making its own merchandise. This is called a private warehouse.

A warehouse may be owned and operated by another organization including a government agency and only used by a company on certain terms and conditions. This is called a public warehouse. A public warehouse may be owned by a company in the private sector but used by the general public. Irrespective of whether private or a public warehouse the following factors have to be taken in to account to work out the cost storage.

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The central warehouse with these above information’s will have to make decisions about when and how much to reorder from the factory. F the decisions are made on the basis of outdate incomplete and erroneous information many of the decisions will late turn out to be wrong a consequence that will raise costs and reduce sales.

These reduction in inventory costs adequately justify the cost of information system. In such a centralized system the central warehouse will have to do the additional record keeping and decision making required in a branch warehouse operation. That is it should keep track of each branch’s current stock of each item its rate of sale at each branch the amount currently on order and amount in transit. Compatibility with information system requirements.

Acurate Storage

· Maintenance of stock condition and integrity;

· Personal safety;

· Overall system cost

· The location of stock within is an important aspect of stock management and can be considered at different levels of detail.

· Space- land building and building services;

· Fire protection;

· Handling equipment including maintenance;

· Staff;

· Information management system.

The type of materials passing through warehouses

varies enormously with different sizes weight shapes levels of fragility and hazard characteristics. A major benefit of unit loads such as pallets is that they enable the use of standard storage systems and handling equipment irrespective of what is handled. Nevertheless variations in throughput and order picking patterns make it appropriate to have different types of storage system with different operational characteristics so that system can be selected that most closely match the needs of the wider system within which they are to operate. The key factors influencing the choice of a storage system are. The nature and characteristics of the goods and unit loads held. The effective utilization of building volume- horizontal and vertical. When comparing the costs of different storage systems it is not only the storage equipment cost that should be taken in to account. Other cost elements that could be affected by the choice of system include Good access to stock;

One way of classifying storage systems could be:

· Bulk storage for solids such as silos bunkers and stockpiles;

· Loose item storage ex casting and fabrications held loose on the floor;

· Pallet storage systems;

· Small item storage for individual items or small unit loads.

Non standard unit loads such as long loads.

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