Research Infor
Research Infor
PROJECT REPORT
ON
ACKNOWLEDGEMENT
I would like to express my sincere thanks to the Savitribai Phule Pune
University, Principal- Dr. Devidas Golhar and Marathwada Mitra Mandal’s
college of Commerce for giving me the opportunity to prepare and present this
report.
“There is a good saying that the work is successfully completed if the person
is guided properly at the right time by the right person”, with that the good
opportunities that we receive as well as the efficient supervision and the most
valuable the internal guidance.
Last but not the least I would like to thank my family and friends for their
encouragement and direct or indirect support in completion of the project.
Aaryan Vedpathak
SY BBA IB
Getting Started:
-Objectives for conducting the survey:
The researcher was having total 3 objectives for conducting this research. One
was primary & other two were secondary. So, they were as follows:
Primary Objective:
Secondary Objectives:
Introduction:
Welcome and get ready to unveil the
hidden cornerstone behind the smooth
functioning of Ford’s WHM!
othat act as a buffer for production lines. Ford uses Modula’s vertical warehouses
to store and retrieve components needed for manufacturing quickly and
efficiently. The warehouses are integrated with a robot interface that allows an
anthropomorphic arm to pick up the necessary material from the Modula and
bypass the faulty line, thus avoiding stopping the entire production process.
Subject Matter:
Subsequently we are also going to study about the need of software in WHM and
different types of WMS. What is the crux for synchronizing WMS with an
organization and what revolution it can bring into the smooth functioning of
WHM. How it can help an organization to become more cost-effective and
increase its (ROI) by reducing its operational cost.
Additional to it we are also analyzing key challenges and opportunities associated
with the implementation of a cloud based WMS. This includes examining
concerns about data security, benefits like scalability, flexibility, and real-time
visibility
Zoho Inventory : a cloud-based WMS that integrates with Zoho’s suite of online
business applications, such as CRM, accounting, and e-commerce. It is suitable
for small and medium-sized businesses that need a simple and affordable WMS.
LOGIC ERP: a web-based WMS that offers end-to-end solutions for warehouse
operations, logistics, supply chain management, and e-commerce. It is designed to
cater to the needs of various industries, such as retail, wholesale, manufacturing,
and distribution.
Oracle Warehouse Management Cloud: a cloud-based WMS that leverages
artificial intelligence, machine learning, and Internet of Things to enable smart
and adaptive warehouse operations. It is ideal for large and complex enterprises
that need a scalable and flexible WMS.
WMS solutions can also help maintain material rotation, whether through first-in,
first-out (FIFO), last-in, first-out (LIFO), or first-expired, first-out (FEFO)
practices. Whatever rotation rule is required, the WMS can help the rotation.
Typically, LIFO enables cost-effective use of space, and movement. FIFO or
FEFO can maintain product quality for items from aging out in the warehouse.
Some solutions have additional fuzzy logic so that a slightly relaxed FIFO or
FEFO reduces additional moves, for example: products that expire in the same
month may be considered both eligible to be picked. A warehouse management
system operates with versatility and flexibility, making it easy to form any
necessary adjustments to maintain best inventory floor location selection, choice
of the correct inventory to pick, and help manage physical movement and worker
performance.
Warehouse management systems work in conjunction with the enterprise ERP and
planning functions to provide demand to forecasting functions by sharing precise
information about how certain products are performing. Product demand and
seasonality is reflected as items are transacted and information communicated.
Therefore, with this information, planners can make reliable decisions about
which products to adjust for the company to increase revenue or mitigate losses.
Benefit 3: Effective Labor
Considering workers’ skill levels, their proximity in the warehouse, their
equipment, and available warehouse tasks, a warehouse management system can
better assign the right task to the right person at the right time. Optimization of
travel time within the warehouse is one of the greatest benefits that the WMS can
provide to improved labor utilization. The WMS can focus labor on highest
impact activities while finding the most well-suited laborer to perform a specific
task. Using labor forecasting, the system can assign jobs on a day-to-day basis and
efficiently design schedules. Scanning items during their entry into a warehouse,
as well as throughout their movements, can eliminate the need for work to be
double-checked, saving time and speeding up the recording process. Scanning
improves pick accuracy, reducing mis-picks, thus providing better customer
service. KPIs can also be utilized to analyze staffing, which is important because
labor is often one of the highest costs of warehouse operations. Labor efficiency,
equipment efficiency, and space efficiency are optimized through appropriate
work assignment.
Benefit 4: Traceable Materials
Inventory materials can be easily traced with warehouse management systems
using lot, batch, and serial numbering. Lot/batch numbers indicate the group in
which materials were made, and the serial number identifies an item specifically.
By use of WMS inventory tracking as previously noted, the ability to match
specific lot/batch or serial numbers with incoming receipts and outgoing
shipments allows for full traceability. This ability to trace materials lowers any
potential redundancy, enables accurate inventory planning and allocation, and
provides current retrievable information for either future traceability, service
maintenance, or recall situations.
Benefit 5: Optimized Supply Chain
A warehouse management system optimizes a warehouse’s internal operation
which can then extend to the broader supply chain. Within the warehouse, a
WMS streamlines the entire warehouse process from inbound receipts to outbound
deliveries improving operational efficiencies and reducing costs. Warehouse staff
achieve fast and accurate shipments by reducing or eliminating unnecessary or
non-productive activity. These savings in time and cost coupled with improved
processes and information can then be passed along to internal and external
partners enabling them to improve their own operations. For example, improved
inbound receiving reduces delivery times, enabling delivery partners to better
leverage their equipment and resources and shippers to better manage inventory
levels. Improved data can reduce risk and increase reliability, benefiting
shippers, suppliers and customers. Data can be shared and leveraged back to an
ERP or to a customer, as well as to a TMS (Transportation Management System).
Product can arrive to its final customer more quickly while allowing the partners
upstream to improve planning. Inventory fulfillment service can be aligned to
inventory management; enabling optimized operations while reducing time &
inventory carrying costs.
Benefit 6: Internal Automation Benefit
Warehouse management systems are the enabler to leveraging additional
automation technologies within a warehouse. Mobile devices can automate
internal work assignments and support a transition from paper to electronic work
and activity recording. This simplifies processes which increases ability to scale
and ensures information accuracy. Mobile pairing with the WMS system can
allow the input process to be expanded, as access can be provided through
handheld mobile devices.
Warehouse management systems can also pick and pack products more
effectively, as managers can choose between zone, batch, or wave picking in a
way that lowers any holdup or issues caused by traffic or ineffective employee
locations. These picking efficiency options provide faster customer order cycle
time and thus improve customer relations. Additionally, due to the inventory
tracking and packing options, customers can receive early notification of
shipments and how the materials are coming. The connection of customers with
advanced shipping notices is better enabled with the WMS solution.
Standalone Systems
Software for enterprise resource planning, or ERP, is ideal for growing companies
looking to reduce labor costs, increase productivity, and automate processes.
Robust reporting, several units of measure, many locations and currencies, email
connectivity, limitless file size, and high transaction volume are just a few of the
system’s many notable features. ERPs typically change as the business does.
Examples include barcode scanning, lot tracking, landing cost monitoring, mobile
picking, two-way communication with e-commerce websites, and CRM.
Sadly, the advantages of an ERP system don’t become clear until much later on—
this is an expensive process. Another drawback is that staff education and training
in proper system usage is crucial to the efficacy of an ERP installation.
Employing staff resources is crucial for organizations when choosing which ERP
system to purchase. The heads of operations, finance, and IT, as well as possibly
sales, marketing, and HR, may be involved in this intricate process. Businesses
using labor-intensive methods, such as spreadsheets and mountains of paper
documents, might require the assistance of an integration professional to assist
with the protracted data migration process. Employee resistance is possible when
the leadership team is against these innovative methods and tools.
The art of supply chain management involves delivering the right goods at the
right cost, location, and time. It controls the flow of products and services,
including finished items, work-in-process inventories, and raw materials.
Supply chain modules (SCM) manage the entire supply chain, as opposed to
systems that merely handle storage. Software for supply chains helps with several
functions, including risk assessment and managing supplier relationships,
customers, transportation, material handling, and inventory control. Additionally,
it automates stock management, material purchases, and product cycles. One SCM
platform may house all of your fleet, inventory, and warehouse management
solutions. Larger businesses and third-party logistics providers typically favor
supply chain systems (3PLs).
Cloud-based Systems
The company does not require any hardware on-site because program data is
executed and stored on distant servers. The license fee is paid monthly by the
client; no servers or equipment need to be installed or maintained.
Company History
Ford Motor Company was founded in 1903 by Henry Ford and 11 associate
investors. The company is best known for its Model T, which was the first
affordable car for the masses. Ford revolutionized the auto industry with its
assembly line production methods, which helped to make cars more affordable
and accessible.
In the years since its founding, Ford has grown into a global automaker with
operations in over 60 countries. The company has faced its share of challenges,
including the Great Depression and the financial crisis of 2008. However, Ford
has also had many successes, such as the launch of the Mustang and the F-Series
truck, which is the best-selling vehicle in the United States.
Ford offers a wide range of cars, trucks, SUVs, and electric vehicles. The
company's most popular vehicles include the F-Series truck, the Mustang, and the
Explorer SUV. Ford also offers a luxury car brand, Lincoln, which includes
vehicles such as the Navigator and the Continental.
Recent Developments
The robotic arms are equipped with sensors and cameras that enable them to
identify and pick the correct parts from the Modula VLMs. The arms can handle
different types of parts, such as engine blocks, cylinder heads, and crankshafts,
with precision and speed.
The parts are delivered to the production lines by the robotic arms, which place
them on conveyor belts or pallets. The parts are then assembled into engines by
other automated machines or human workers.
If the production lines are stopped due to any reason, such as maintenance, quality
control, or power outage, the Modula VLMs can store the parts that are not needed
until the lines are restarted. This prevents the parts from piling up on the floor or
being damaged, and also reduces the risk of losing or misplacing them.
The Modula VLMs can store up to 260 engine blocks in 14 square meters of floor
space, by using the vertical space of the factory. This saves a lot of space
compared to traditional shelving or racking systems, and also improves the safety
and ergonomics of the workers, who do not have to bend, lift, or reach for the
parts.
The Modula VLMs can also reduce the time and cost of storage operations, by
eliminating the need for forklifts, carts, or manual picking. The VLMs can retrieve
the parts in seconds, and deliver them to the robotic arms or the workers with a
simple touch of a button or a barcode scan. Modula warehouse automation is a
smart and innovative solution that enhances the productivity and quality of Ford
motors’ manufacturing process. It is a perfect example of how vertical shelving
technologies can be integrated with automation systems to create a fully
automated warehouse solution for the automotive industry. 🚗
Purpose of Softwares:
Ford is one of the world’s leading automotive companies, with a history of over a
century. Ford has been using warehouse management systems (WMS) since the
1970s, when it was the first customer of Logisticon, the pioneer of WMS
software1. Since then, Ford has been constantly improving its warehouse
management practices, to optimize its supply chain and meet the changing
demands of the market.
Before the implementation of infor cloudsuite and Modula vertical
warehouse automation, Ford faced some challenges in its warehouse
operations, such as:
High space and energy consumption, due to the use of conventional racking and
shelving systems, which limited the storage capacity and efficiency of the
warehouse.
Long procurement and picking times, due to the lack of visibility and traceability
of the inventory, which caused delays and errors in the order fulfillment process.
Frequent disruptions and downtime, due to the breakdowns or malfunctions of the
machinery and equipment, which affected the productivity and quality of the
warehouse operations.
After the implementation of Infor cloud-suite and Modula vertical warehouse
automation, Ford achieved some benefits in its warehouse operations, such
as:
Reduced space and energy consumption, due to the use of vertical lift modules
(VLMs), which are automated storage and retrieval systems that use vertical
shelving units and robotic arms to store and deliver the products, to optimize the
space, time, and efficiency of the warehouse operations.
Improved procurement and picking times, due to the use of infor cloudsuite,
which is a comprehensive enterprise-class WMS software that offers features like
appointment scheduling, batch inventory tracking, and order optimization.
Increased reliability and availability, due to the use of Modula warehouse
automation, which is a system that integrates the VLMs with the production lines
and the delivery vehicles, and uses a custom-made WMS software called WMS
Thor, to track the movement and status of the inventory, from the point of origin
to the point of delivery.
In conclusion, Ford has a long history of warehouse management, and has been
using infor cloudsuite and Modula vertical warehouse automation to streamline its
warehouse operations and enhance its competitive edge in the automotive industry
SWOT analysis of Cloud-Suite WMS and Modula Vertical Lifting
Modules implemented in Ford' Warehouse Management Systems:
SWOT analysis of Cloud-Suite WMS and Modula Vertical Lifting Modules
implemented in Ford’s Warehouse Management Systems:
Strengths:
Cloud Suite WMS and Modula VLMs are integrated solutions that streamline and
optimize the storage and delivery of parts during the manufacturing process.
CloudSuite WMS and Modula VLMs improve inventory visibility, order
fulfillment, labor productivity, and space utilization in Ford’s warehouses.
CloudSuite WMS and Modula VLMs use advanced algorithms and artificial
intelligence to automate and optimize the warehouse operations.
CloudSuite WMS and Modula VLMs provide analytics and insights that help Ford
improve its warehouse performance and efficiency.
CloudSuite WMS and Modula VLMs are scalable and adaptable to different
warehouse sizes, layouts, and demands.
Weaknesses:
CloudSuite WMS and Modula VLMs require a significant initial investment and
maintenance cost.
CloudSuite WMS and Modula VLMs depend on reliable internet connectivity and
power supply.
CloudSuite WMS and Modula VLMs may face technical issues or glitches that
could disrupt the warehouse operations.
CloudSuite WMS and Modula VLMs may require training and change
management for the warehouse operators and staff.
CloudSuite WMS and Modula VLMs may encounter compatibility or integration
challenges with other systems or technologies.
Opportunities:
CloudSuite WMS and Modula VLMs can enhance the productivity and quality of
Ford’s manufacturing process and products.
CloudSuite WMS and Modula VLMs can increase Ford’s competitive advantage
and customer satisfaction in the automotive industry.
CloudSuite WMS and Modula VLMs can enable Ford to adopt more sustainable
and environmentally friendly practices in its warehouse management.
CloudSuite WMS and Modula VLMs can facilitate Ford’s innovation and digital
transformation in its warehouse management.
CloudSuite WMS and Modula VLMs can open new markets and opportunities for
Ford in other industries or regions.
Threats:
CloudSuite WMS and Modula VLMs may face competition from other warehouse
management solutions or technologies that offer similar or better features or
benefits.
CloudSuite WMS and Modula VLMs may be affected by external factors such as
regulations, policies, standards, or customer preferences that could limit or restrict
their use or adoption.
CloudSuite WMS and Modula VLMs may be exposed to cyberattacks, data
breaches, or unauthorized access that could compromise their security or
functionality.
CloudSuite WMS and Modula VLMs may be subject to obsolescence or
disruption by emerging or disruptive technologies or innovations that could render
them obsolete or irrelevant.
CloudSuite WMS and Modula VLMs may face legal, ethical, or social issues or
controversies that could damage their reputation or credibility
Review of literature:
The researcher has collected & interpreted the data from reading various research
papers for gathering more insights
Research Design
Research design refers to the overall strategy or plan for conducting a research
study. It outlines the methods and procedures that will be used to collect and
analyse data, as well as the goals and objectives of the study. Research design is
important because it guides the entire research process and ensures that the study
is conducted in a systematic and rigorous manner.
Types of research design
Exploratory Research
As the name implies, the primary objective of exploratory research is to explore a
problem to provide insights into and comprehension for more precise
investigation. It focuses on the discovery of ideas and thoughts. The exploratory
research design is suitable for studies which are flexible enough to provide an
opportunity for considering all the aspects of the problem.
At this point, the required information is loosely defined, and the research process
is flexible and unstructured. It is used in the situation when you must define the
problem correctly, identify alternative courses of actions, develop a hypothesis,
gain additional insights before the development of an approach, set priorities for
further examination. The following methods are used for conducting exploratory
research
Survey of concerning literature
Experience survey
Analysis of insights stimulating
Descriptive Research
By the term descriptive research, we mean a type of conclusive research study
which is concerned with describing the characteristics of a particular individual or
group. It includes research related to specific predictions, features or functions of
person or group, the narration of facts, etc.
The descriptive research aims at obtaining complete and accurate information for
the study, the method adopted must be carefully planned. The researcher should
precisely define what he wants to measure? How does he want to measure? He
should clearly define the population under study. It uses methods like quantitative
analysis of secondary data, surveys, panels, observations, interviews,
questionnaires, etc.
Data Collection:
Data collection is the process of gathering and collecting information from various
sources to analyse and make informed decisions based on the data collected. This
can involve various methods, such as surveys, interviews, experiments, and
observation.
In order for data collection to be effective, it is important to have a clear
understanding of what data is needed and what the purpose of the data collection
is. This can involve identifying the population or sample being studied,
determining the variables to be measured, and selecting appropriate methods for
collecting and recording data.
Types of Data Collection:
Types of Data Collection are as follows:
Primary Data Collection
Primary data collection is the process of gathering original and firsthand
information directly from the source or target population. This type of data
collection involves collecting data that has not been previously gathered, recorded,
or published. Primary data can be collected through various methods such as
surveys, interviews, observations, experiments, and focus groups. The data
collected is usually specific to the research question or objective and can provide
valuable insights that cannot be obtained from secondary data sources. Primary
data collection is often used in market research, social research, and scientific
research.
Secondary Data Collection
Secondary data collection is the process of gathering information from existing
sources that have already been collected and analysed by someone else, rather
than conducting new research to collect primary data. Secondary data can be
collected from various sources, such as published reports, books, journals,
newspapers, websites, government publications, and other documents.
Collection of data
The collection of data is done through survey methods. The data were
collected through Primary and secondary sources.
And then the checking process is done by Cycle counting method. If the products
are defective, short, unscrupulous, they discard & they raise a complaint to the
distributor through e-mail.
The products which have passed the checking process and have got approval are
placed in racks and are stacked vertically shown in the above picture.
For storing fruits and vegetables they have cold storage compartments
For tracking each crate, codification is done
For tracking the stage of every process WMS Thor tailor-made system
is used.
At the time of delivery there are many shelves allotted to different
locations with QR embedded in them which the delivery deliveryman
has to scan before going for the last mile.
Q.2 What kind of products are stored in the Warehouse?
The warehouse mainly stores grocery products, such as packaged food, beverages,
snacks, and household items. It also stores fresh fruits and vegetables that are
sourced from local farmers and suppliers.
Q.3 How do they keep track of their inventory?
They use a method called Cycle-counting to monitor and update their inventory
levels. This method involves counting a small portion of the inventory every day,
and comparing it with the records in the system. They also perform the inwarding
process, which is the process of receiving and storing the incoming products, at
night from 11:00 PM to 1:00 AM. The warehouse operates round the clock, 24
hours a day.
Q.4 How big is the warehouse and what is its shape?
The warehouse covers an area of approximately 3500 square meters, which is
equivalent to about 0.86 acres. The warehouse has a rectangular shape, with a
length of about 70 meters and a width of about 50 meters.
Q.5 Do they have a separate office area from the warehouse area?
No, they do not have a separate office area from the warehouse area. The office
and the warehouse are located in the same space, without any partitions or walls.
The office consists of a few desks, chairs, computers, and other equipment that are
placed in a corner of the warehouse.
Q.6 What are the modern trends that you have implemented in your
warehouse management?
We have implemented a custom-made WMS (Warehouse Management System)
called WMS Thor, which helps us to track the movement and status of our
inventory, from the point of origin to the point of delivery. We also use QR
(Quick Response) codes and barcodes to track the delivery and product
information, respectively. These technologies enable us to improve our efficiency,
accuracy, and visibility in our warehouse operations.
Q.7 What is the biggest challenge that you face in your warehouse
management?
The biggest challenge that we face in our warehouse management is finding and
retaining the right delivery personnel who can perform the first-mile and last-mile
delivery in a timely and safe manner, while following all the required protocols.
The first-mile delivery refers to the transfer of goods from our warehouse to a
carrier or a transportation hub, while the last-mile delivery refers to the transfer of
goods from a carrier or a transportation hub to the final destination. These are the
most critical and costly stages of the delivery process, and they require skilled and
reliable delivery personnel.
Q.8 How much does it cost to operate and set up your warehouse?
Our operational cost, which includes the expenses for labor, utilities, maintenance,
and transportation, is around 15-20 lakhs per month. Our set-up cost, which
includes the expenses for land, building, equipment, and software, is around 4.76
crores.
Q.9 What method do you use to dispatch your products from your
warehouse?
We use different methods to dispatch our products from our warehouse,
depending on the type and shelf life of the products. For fruits and vegetables,
which are perishable and have a short shelf life, we use the FIFO (First-In, First-
Out) method, which assumes that the oldest products in our inventory are sold
first. This way, we avoid wastage and spoilage of our products. For groceries,
which are non-perishable and have a long shelf life, we use the LIFO (Last-In,
First-Out) method, which assumes that the newest products in our inventory are
sold first. This way, we reduce our inventory holding costs and taxes.
Q.10 Who owns the warehouse and what is their name?
The warehouse is a privately owned warehouse, and the name of the owner is
Kavailya Vohra. He is the founder and CEO of Zepto, a quick commerce app that
delivers online groceries, fruits, vegetables, personal care, electronics, and more to
customers in just 10 minutes. He started Zepto in 2021, along with his co-founder
Aadit Palicha, when they were both 19-year-old Stanford dropouts. They wanted
to create a faster and better online grocery shopping experience for the
customers. Zepto operates in several cities in India, such as Mumbai, Delhi,
Bengaluru, Gurugram, and Chennai, and has raised $60 million in funding from
investors like Y Combinator, Nexus, and Glade Brook. Zepto uses cloud-based
technology and vertical lift modules to optimize its warehouse operations and
delivery efficiency. Zepto claims to have thousands of items on offer and a high
customer retention rate. Zepto is one of the fastest-growing start-ups in the Indian
e-commerce sector, and aims to expand to other markets and industries in the
future