department of logistic, purchasing and warehouse

Department Department of Logistic, of Logistic, Purchasing Purchasing

and and WarehouseWarehouse

Welcome toWelcome to

ObjectiveObjective

Give the best service by Give the best service by professional guide and provide professional guide and provide

ease to all department in ease to all department in buying items and services buying items and services provided, store center provided, store center management and manage management and manage

transportation for the company transportation for the company with efficiency and at the with efficiency and at the

lowest possible costlowest possible cost..

Mission and visionMission and vision1. Ensuring all the requirements of the customers are 1. Ensuring all the requirements of the customers are met on time in an efficient and safe manner. met on time in an efficient and safe manner.

2. To coordinate with third party logistics (3PLs). 2. To coordinate with third party logistics (3PLs). 3. To ensure that there is a safe and timely dispatch 3. To ensure that there is a safe and timely dispatch of goods.of goods.

4. To draft plans, policies and procedures for 4. To draft plans, policies and procedures for successful implementation of logistics system.successful implementation of logistics system.

5. To ensure that the business goals of the 5. To ensure that the business goals of the organization are in synchronization with logistics organization are in synchronization with logistics system.system.

6. To create and maintain customer support. 6. To create and maintain customer support. 7. To maintain coordination with vendors, service 7. To maintain coordination with vendors, service providers and transport carriers. providers and transport carriers.

8. To ensure that no fraud is committed. 8. To ensure that no fraud is committed. 9. To ensure timely supply and payment of goods and 9. To ensure timely supply and payment of goods and reduce inventoriesreduce inventories

Organization ChartOrganization Chart

GANTT GANTT CHARTCHART

LAYOUT DEPARTMENTLAYOUT DEPARTMENT

Portfolio Of Portfolio Of Logistic, Logistic,

Purchasing, And Purchasing, And WarehouseWarehouse

LogisticLogistic Logistics management is that part which Logistics management is that part which plans, implements and controls the plans, implements and controls the efficient, effective forward and reverse efficient, effective forward and reverse flow and storage of goods, and services.flow and storage of goods, and services.

Strategic plans are developed by the Strategic plans are developed by the department to support development of fresh department to support development of fresh product and manufacturing flow management. product and manufacturing flow management.

This helps in bringing raw materials or This helps in bringing raw materials or semi-finished goods to the premises of the semi-finished goods to the premises of the organization in a safe and proper organization in a safe and proper condition at an economical cost. condition at an economical cost.

The department is also responsible for The department is also responsible for coordination with suppliers with regard to coordination with suppliers with regard to scheduling, hedging and timely delivery.scheduling, hedging and timely delivery.

PurchasingPurchasing Purchasing refers to a business or Purchasing refers to a business or organization attempting to acquire goods or organization attempting to acquire goods or services to accomplish the goals of the services to accomplish the goals of the enterprise. enterprise.

Strategic for purchasing departments are Strategic for purchasing departments are using to lower costs and improve quality.using to lower costs and improve quality.

Strategic involves analyzing what products Strategic involves analyzing what products the company buys in the highest volume, the company buys in the highest volume, reviewing the marketplace for those products, reviewing the marketplace for those products, understanding the economics and usage of the understanding the economics and usage of the supplier of those products, developing a supplier of those products, developing a procurement strategy, and establishing procurement strategy, and establishing working relationships with the suppliers that working relationships with the suppliers that are much more integrated than such are much more integrated than such relationships were in the past. During this relationships were in the past. During this process, purchasing conductingprocess, purchasing conducting

Ware HouseWare House A ware house is to control the movement and A ware house is to control the movement and storage of materials within a warehouse and storage of materials within a warehouse and

process the associated transactions, process the associated transactions, including shipping, receiving, put away and including shipping, receiving, put away and picking. Ware house management system is to picking. Ware house management system is to provide a set of computerized procedures to provide a set of computerized procedures to

handle the receipt of stock and returns handle the receipt of stock and returns into a warehouse facility, model and manage into a warehouse facility, model and manage the logical representation of the physical the logical representation of the physical

storage facilities (e.g. racking etc), storage facilities (e.g. racking etc), manage the stock within the facility and manage the stock within the facility and

enable a seamless link to order processing enable a seamless link to order processing and logistics management in order to pick, and logistics management in order to pick, pack and ship product out of the facility. pack and ship product out of the facility.

InventoryInventory managementmanagement

Inventory management is required at Inventory management is required at different locations within a facility or different locations within a facility or within multiple locations of a supply within multiple locations of a supply network to protect the regular and planned network to protect the regular and planned course of production against the random course of production against the random disturbance of running out of materials or disturbance of running out of materials or goodsgoods

Also concerns the fine lines between Also concerns the fine lines between replenishment lead time, carrying costs of replenishment lead time, carrying costs of inventory, asset management, inventory inventory, asset management, inventory forecasting, inventory valuation, inventory forecasting, inventory valuation, inventory visibility, future inventory price visibility, future inventory price forecasting, physical inventory, available forecasting, physical inventory, available physical space for inventory, quality physical space for inventory, quality management, replenishment, returns and management, replenishment, returns and defective goods and demand forecastingdefective goods and demand forecasting

The criteria in The criteria in choosing the supplier choosing the supplier

are depend onare depend on the best price offer,the best price offer, the quality of product, the quality of product, the location of the supplier company, the location of the supplier company, the good cooperation between the the good cooperation between the supplier and our company,supplier and our company,

the guarantee from the supplier which the guarantee from the supplier which can always supply the material that can always supply the material that we need in making the cup cake we need in making the cup cake without any problem.without any problem.

the product that supplier produce the product that supplier produce must get the certificate from JAKIM must get the certificate from JAKIM to get Halal logo.to get Halal logo.

supplier company supplier company for for

Nyum – Nyum Nyum – Nyum Bakery SDN BHDBakery SDN BHD

MaterialMaterial BrandBrand Address and contact suppliersAddress and contact suppliers FlavorFlavor Price per unitPrice per unit

ButterButter DAISYDAISY

Lam Soon Edible Oil Sdn. BhdLam Soon Edible Oil Sdn. BhdWisma DLS,Wisma DLS,6 Jln Jurunilai u 1/20,6 Jln Jurunilai u 1/20,Hicom – Glenmane Industrial Park, 40150 Hicom – Glenmane Industrial Park, 40150 Shah Alam, SelangorShah Alam, Selangor

RM 7.00/1kgRM 7.00/1kg

Baking powderBaking powder MFMMFMMalayan Flour Mills Berhad,Malayan Flour Mills Berhad,Jln David Sung, Bata Undar,Jln David Sung, Bata Undar,32200 Lumut, Perak32200 Lumut, Perak

RM 3.00/1kgRM 3.00/1kg

SugarSugar PRAIPRAIMalaysia Sugar MFG.CO. Bhd,Malaysia Sugar MFG.CO. Bhd,798, Main Road 13600, Prai, Malaysia798, Main Road 13600, Prai, Malaysia

RM 1.25/1kgRM 1.25/1kg

EggsEggsHealthy FarmHealthy Farm

Fresh EggsFresh Eggs

Soon Lee Trading Co,Soon Lee Trading Co,No.9, Jalan Desa Aman, Cheras,No.9, Jalan Desa Aman, Cheras,56100 Kuala Lumpur56100 Kuala Lumpur

RM 5.60/30 unitRM 5.60/30 unit

Soda bicarbonatesSoda bicarbonates NURNURPlasmore Sdn. Bhd,Plasmore Sdn. Bhd,2 Jln Selesa 1, Tmn Bkt Indah,2 Jln Selesa 1, Tmn Bkt Indah,58200 Kuala Lumpur58200 Kuala Lumpur

RM 0.90/100gRM 0.90/100g

Vanilla essenceVanilla essence NURNURPlasmore Sdn. Bhd,Plasmore Sdn. Bhd,2 Jln Selesa 1, Tmn Bkt Indah,2 Jln Selesa 1, Tmn Bkt Indah,58200 Kuala Lumpur58200 Kuala Lumpur

RM0.90/25mlRM0.90/25ml

CupCup --Plasmore Sdn. BhdPlasmore Sdn. Bhd2 Jln Selesa 1, Tmn Bkt Indah 582002 Jln Selesa 1, Tmn Bkt Indah 58200Kuala LumpurKuala Lumpur

RM1.70/35RM1.70/35piecespieces

Jam or pesJam or pes Wan JamWan JamWan Shes EnterpriseWan Shes Enterprise52, 52-1 Jln TU 40,52, 52-1 Jln TU 40,Taman Tasik Utama, 75450, MelakaTaman Tasik Utama, 75450, Melaka

BlueberryBlueberry RM3.30/350gRM3.30/350g

StrawberryStrawberry RM3.25/350gRM3.25/350g

ChocolateChocolate RM 3.55/350gRM 3.55/350g

VanillaVanilla RM3.30/350gRM3.30/350g

Total costs for 35 unit of Total costs for 35 unit of cup cake for each flavorcup cake for each flavor

Blueberry= RM 12.71Blueberry= RM 12.71 Strawberry = RM 12.59Strawberry = RM 12.59

Chocolate= RM 13.34Chocolate= RM 13.34 Vanilla= RM 12.71Vanilla= RM 12.71

Total cost for 1 unit of Total cost for 1 unit of cup for each flavorcup for each flavor

Blueberry= RM 12.71/35 = RM Blueberry= RM 12.71/35 = RM 0.370.37

Strawberry= RM 12.59/35 = RM Strawberry= RM 12.59/35 = RM 0.360.36

Chocolate= RM 12.71/35 = RM Chocolate= RM 12.71/35 = RM 0.360.36

Vanilla= RM 13.85/35 = RM 0.40Vanilla= RM 13.85/35 = RM 0.40

List Of The Prices Of Products Needed

ItemItem Quantity Quantity Price market per Price market per unitunit

Total priceTotal price

Forklift Toyota Forklift Toyota 11 Rm 60 000Rm 60 000 Rm 60000Rm 60000

Lorry PickupLorry Pickup 22 Rm45 000Rm45 000 Rm 90000Rm 90000

VanVan 22 Rm 20 000Rm 20 000 Rm 40000Rm 40000

Bingers FreezerBingers Freezer 33 Rm 45 00Rm 45 00 Rm 13500Rm 13500

ComputerComputer 44 Rm 1500Rm 1500 Rm 6000Rm 6000

Arbitrator Arbitrator 22 Rm 5 000Rm 5 000 Rm 10 000Rm 10 000

Table and chairTable and chair 6 6 Rm 700Rm 700 Rm 42 00Rm 42 00

Hand pallet truckHand pallet truck 22 Rm 3 000Rm 3 000 Rm 6 000Rm 6 000

shelf 5 floorsshelf 5 floors 10 10 Rm 1 000Rm 1 000 Rm 10 000Rm 10 000

Total costTotal cost Rm 239,700Rm 239,700

8.4 Costing transportationIn delivery of cup cakes, a few aspects must be considered to make our delivery on time to customers and also can minimize the cost in transportation. Below is the aspect that our department identifies:

(1)The distance of market location and the quantity of product must be consider in delivery cup cakes for each destination..

(2)The way of location which it are related to connect for each others destination. In others word, for one trip of delivery it

can supply our product to many place but it depend on the quantity of cup cakes requirement and the capacity of vehicle.

(3)Choosing the type of transport for delivery of cup cakes which is depending on the quantity of cup cakes requirement from

customer.

Below is marketing location of cup cake with their distance from our factory and the

quantity of cup cakes

NoNo LocationLocation Distance (KM)Distance (KM) Quantity (Unit)Quantity (Unit)

11 Air KerohAir Keroh 22 28672867

22 Bandar hilirBandar hilir 1010 29092909

33 PeringgitPeringgit 77 860860

44 Bukit BaruBukit Baru 66 380380

55 Bukit BeruangBukit Beruang 33 330330

66 Bukit KatilBukit Katil 66 340340

77 ChengCheng 1212 423423

88 Batu BerendamBatu Berendam 66 409409

5252 85188518

For delivery the cup cake, the transportation that we use is a van and lorry pickup.Fuel materialVan = petrol

Lorry pickup = diesel

Retail price for fuel materialDiesel = RM 1.70

Petrol - Have two type of petrol which is:Ron95 = RM1.800 per literRon97 = RM2.050 per liter

So, our department management decide that we choice the petrol type Ron 95 as a fuel material for our transportation of van.

Assume that,Van = 18 liter of petrol can be using about 100KM for mileages.

Lorry pickup = 18 liter of diesel can be using about 140KM for mileages.

In delivery cup cakes to customers,Petrol usage for 1KM,

= 18 liter/100KM= 0.18 liter/KM

Diesel usage for 1KM,= 18 liter/140KM= 0.129 liter/KM

Material Material Requirements Requirements

Planning (MRP)Planning (MRP)

Table : On-hand, Usage, Lead time Table : On-hand, Usage, Lead time

quantity of cakequantity of cake Cup CakeCup CakeComponent numberComponent number

DescriptionDescription Quantity perQuantity per Assembly / Make / Assembly / Make / BuyBuy

B-122B-122 Cake Cake 11 MM

B- 111B- 111 Cup Cup 11 BB

B- 103B- 103 JamJam 25 / 35 g25 / 35 g BB

CakeCakeComponent NumberComponent Number

DescriptionDescription Quantity perQuantity per Assembly / Make / Assembly / Make / BuyBuy

B- 221B- 221 ButterButter 4.30 g4.30 g BB

B- 322B- 322 Vanilla essenceVanilla essence 1 / 35 teaspoon 1 / 35 teaspoon of vanillaof vanilla

BB

B- 142B- 142 Baking powderBaking powder 5.30 g5.30 g BB

B- 154B- 154 SugarSugar 4.30 g4.30 g BB

B- 121B- 121 Soda bicarbonatesSoda bicarbonates 0.5 / 35 0.5 / 35 teaspoonteaspoon

BB

B- 133B- 133 EggsEggs 3 / 35 3 / 35 BB

Table : On-hand, Usage, Lead time Table : On-hand, Usage, Lead time quantity of cake quantity of cake

MRP TableMRP Table

Component Cup Component Cup CakeCake

LT : 1 DayLT : 1 Day DAYDAY

Usage : 1Usage : 1 11 22 33 44 55

Gross RequirementsGross Requirements 93009300

Schedule Receipts Schedule Receipts

On-HandOn-Hand 00

Net RequirementsNet Requirements 93009300

Planned-Order Planned-Order ReceiptsReceipts 93009300

Planned-Order Planned-Order ReleasesReleases 93009300

Component CakeComponent Cake


Usage : 1Usage : 1 11 22 33 44 55



On-HandOn-Hand 00




Component CupComponent Cup


Usage : 1Usage : 1 11 22 33 44 55



On-HandOn-Hand 2790027900 2790027900 2790027900 2790027900




Component JamComponent Jam


Usage : 25 / 35 gUsage : 25 / 35 g 11 22 33 44 55

Gross RequirementsGross Requirements 292.75292.75


On-HandOn-Hand 698.25698.25 698.25698.25 698.25698.25 698.25698.25

Net RequirementsNet Requirements 405.5405.5

Planned-Order ReceiptsPlanned-Order Receipts 405.5405.5

Planned-Order ReleasesPlanned-Order Releases 405.5405.5

Component ButterComponent Butter


Usage : 4.3 gUsage : 4.3 g 11 22 33 44 55



On-HandOn-Hand 119.7119.7 119.7119.7 119.7119.7




Component VanillaComponent VanillaEssence Essence DAYDAY

LT : 1 DayLT : 1 Day

Usage : 1 / 35Usage : 1 / 35 11 22 33 44 55



On-HandOn-Hand 79807980 79807980 79807980




Component Baking Component Baking Powder Powder DAYDAY


Usage : 5.3 gUsage : 5.3 g 11 22 33 44 55



On-HandOn-Hand 147.87147.87 147.87147.87 147.87147.87




Component Sugar Component Sugar DAYDAY


Usage : 4.3 gUsage : 4.3 g 11 22 33 44 55



On-HandOn-Hand 119.7119.7 119.7119.7 119.7119.7




Component Soda Component Soda Bicarbonates Bicarbonates DAYDAY


Usage : 0.5 / 35Usage : 0.5 / 35 11 22 33 44 55



On-HandOn-Hand 6.3846.384 6.3846.384 6.3846.384




Component EggsComponent Eggs DAYDAY


Usage : 3 / 35Usage : 3 / 35 11 22 33 44 55



On-HandOn-Hand 23942394 23942394 23942394


Planned-Order ReceiptsPlanned-Order Receipts 15961596

Planned-Order ReleasesPlanned-Order Releases 15961596

Economic Order Quantity Economic Order Quantity ModelModel

Basic economic order quantity modelBasic economic order quantity model

The inventory cycle

For the inventory cycle the order size, For the inventory cycle the order size, usage rate, reorder point, and lead usage rate, reorder point, and lead

timetimeRaw material Order size Usage rate(per day) Reorder size Lead time

Sugar 119.7kg 4.3g*9300=39.9kg 79.8kg 2

Butter 119.7kg 4.3g*9300=39.9kg 39.9kg 1

Cup 27900piece 9300 9300 1

Baking powder 147.87kg 5.3g*9300=49.29kg 98.58kg 2

Vanilla Essence 7.98L 10ml*266=2.66L 2.66L 1

Soda bicarbonate 6.384kg 8g*266=2.128kg 2.128kg 1

Eggs 798 3*266=798 798 1

Jam 698.25kg 875*266=232.75kg 232.75kg 1

Flow Chart Flow Chart ( Processing in ( Processing in department )department )

Purchasing will select the best of material or the supplier.

Quotation from the supplier.

Requirement of material form another department.

The material is suitable with the price.Yes

No

Request the modal at the finance department.

Get the material and save in warehouse

Production department request their order.

Product(Cup cake)

Store the product.

Marketing department request the order from customer and deliver the cup cake.

Flow Chart ( receive Flow Chart ( receive Order )Order )

Process the order(Checking)

Send the order to the department

Receive order.

Yes

No

Purchasing

THANK YOUTHANK YOU

department of logistic, purchasing and warehouse

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