final
TRANSCRIPT
University of Cebu – Banilad CampusBanilad, Cebu City, Philippines 6000
2nd Semester – S.Y. 2013-2014
Major Essay
In Partial Fulfillment of the Requirements of the Course
Distribution Management
Submitted by:
Janvic Jan Canama
Marlyn Fe Quiñones
Felipe L. Nudalo, Jr.
MM3 5:00-6:30 TTH
Submitted to:
Ms. Elouis Tejada
March 2014
Theory vs. Interview
An interview of Mr. Edward Canora, the warehouse coordinator of Globe
Telecom.
The italicized paragraphs are theoretical statements taken from the
book of Logistics Management. They are placed after the interviewee’s
answers that match with the theories.
Question #1: What is the importance of warehousing?
First, having a warehouse, you will have the opportunity of
consolidating the products. So to provide service to our customers, we need
a variety of items. Before we deliver them to the customers, we have to
consolidate those products. Without the warehouse, we can’t do that. If you
can consolidate the items in the warehouse, it will be cheaper than sending
each item to your customer.
Second is the buffer lead time. With the warehouse, you can reduce
the lead time in delivering your service to customer because you have the
materials available already. Unlike if you will order your items every time you
receive order from your customer, it will take time.
The third one is the transportation mode trade off. Meaning to say, if
you have a warehouse, you can take advantage of the economies of scale in
transportation. You can optimize the use of transportation. You can send
your materials in bulk orders and whatever quantity you desire.
The fourth one is you will have the opportunity to save due to bulk
orders. When you buy a particular item from a supplier, more often than not
you can avail of discounts.
Last one; it gives you protection from unforecasted price upsurge.
There are times in a year; suppliers decide to increase the price of their
commodity. So when you have the warehouse, most likely you will not be
affected for that year.
Warehousing has traditionally provided storage of products (referred to as
inventory) during all phases of the logistics process. Two types of inventory
can be placed into storage: [1] Raw materials, components and parts
(physical supply); and [2] Finished goods (physical distribution).
Warehousing of products has occurred for one or more of the following
reasons – to:
Achieve transportation and production economies
Take advantage of quantity purchase discounts and forward buys
Maintain a source of supply
Support the firm’s customer service
Aside from that, warehouses can be used to support manufacturing, to
mix products from multiple facilities for shipment to a single customer, to
break-bulk or subdivide a large shipment of product into many smaller
shipments to satisfy the needs of many customers, and to combine or
consolidate a number of small shipments into a single higher-volume
shipment.
Question #2: What are the requirements needed in choosing a
warehouse?
You have to know what goods you are going to store in the
warehouse. Like for instance, you need a warehouse which controls
temperature. First and foremost, you have to know what you need to store.
Then space requirement and capacity, accessibility, safety, security and
location.
In general, firms have a number of warehousing alternatives. Some
companies may market products directly to retail customers thereby
eliminating warehousing in the field. The selection, design and management
of warehouse operation depend on the purpose and operation of a company
or business. Below are important things must be taken into account to
choose and decide what type of warehouse to be used:
Type of goods to be stored as well as the characteristics of the goods.
The main thing to consider is whether the goods to be stored are food
or non food items or both
Total quantity will be stored in order to calculate total space / area
required
The storage time requirement
The security perimeter of the building and warehouse areas should
provide adequate protections for the building, goods and vehicle also
equipment in the warehouse compound
Site location and access. Warehouse compound should be free of
flooding and access/road to the warehouse should be passed or
suitable for large truck
As a company levels increase, it typically requires more warehousing
space to provide storage for higher level of inventory. When a firm has
multiple products or product groupings, especially if they are diverse, it
needs larger warehouses to maintain at least minimal inventory levels of all
products. In general, greater space requirements are necessary when;
products are large; production lead-time is long; manual materials handling
systems are used; the warehouse contains office, sales or computer
activities; demand is erratic and unpredictable.
Question # 3: Who make decisions in choosing a warehouse?
For us, it can be decided by the logistics and coordination with
our safety. That is if your company has a safety department.
One of the most important warehousing decisions a company makes is
whether to use a public (rented) or private (owned or leased) facilities.
Contract warehousing is a variant of public warehousing in which the
organization has a contractual relationship to utilize a certain amount of
space and services in a facility or facilities over a set time period. This
arrangement gives the warehouser more stability and certainty in making
investments and planning for the future.
Question # 4: Do you consider the warehouse layout and design in
choosing a warehouse?
Layout and design is very important in choosing a warehouse. In
warehouse loss and prevention, it is very critical in choosing a good layout in
the warehouse. But nowadays, warehouse has not become the core
competence of many companies. That’s why most companies no longer build
their own warehouses. So they lease their own warehouse.
The optimal warehouse layout and design for a firm will vary by
the type of product being stored, the company’s financial resources, the
competitive environment and the needs of customers. In addition, the
warehouse manager must consider cost trade-offs between labor equipment,
space and information.
A good warehouse layout can [1] increase output, [2] improve
product flow, [3] reduce costs, [4] improve service to customers and [5]
provide better employee working conditions.
Question # 5: Who is in-charge in the warehousing operation?
It depends on the organizational setup of your company. If
centralized or decentralized, regionalized, it depends. In the case of Globe, I
don’t know if I can tell you. Our warehouse now is being run by a third party.
Operational decisions are used to manage or control logistics
performance. Typically, these decisions are routine in nature and involve
time spans of one year or less. They relate to the coordination and
performance of the logistic system. For example, a warehouse manager
would concerned with how the best to utilize labour in the shipping
department. Due to the short time horizon involved, these decisions have
more certainty than strategic decisions.
Question # 6: What are the primary functions of warehousing in
your company?
Just like any other warehouse, we have receiving, identification
and sorting, storage, picking, packing, shipment and then recording.
Warehousing has three basic functions: Movement, Storage, and
Information Transfer. Recently, the movement function has been receiving
the most attention as organization focus on improving inventory turns and
speeding orders from manufacturing to final delivery. Fast and efficient
movement of large quantities of raw materials, component parts and finished
goods through the warehouse, coupled with timely and accurate information
about the products being stored, are the goals of every logistics system.
Question # 7: Do you consider warehousing is important in the
logistics system of your company?
Yes it’s very important, in day to day operations and as well as
keeping good service to our customers.
Warehousing is an integral part of every logistics system.
Warehousing plays a vital role in providing a desired level of customer
service at the lowest possible total cost. Warehousing activity is an important
link between the producer and the customers. Over the years, warehousing
has developed from a relatively minor facet of a firm’s logistics system to
one its most important functions.
Reactions/comments:
FELIPE NUDALO
It was an honor and privilege to have an interview with Mr. Edward
Canora of Globe Telecom. He was handling warehousing management
system for more than a decade with different companies; he was truly
equipped with expertise, through learning, training and of course the
experience. With this interview we are able to understand more the
importance of warehousing in the logistics management system.
Marlyn Fe M. Quiñones
I really have fun during the interview, the head of the Warehousing
operation was friendly that's why it's easy for us to ask question to him. We
did not feel any uncomfortable thing because he was so accommodating and
charming. It was my first experience to interview a person who is already in
the real world, and already hands-on in the operation. I was really amazed by
him because he managed to operate the Vis-Min Warehousing of Globe
Telecom. I've learn so many things from him, how he operated the
warehousing, and how he made decision. As a student, I believe that being a
warehousing head for the Vis-Min Warehousing in your company is not that
easy because you are handling not just one warehouse but the entire
Visayas and Mindanao, actually he did not tell us the specific number of
warehousing that the Globe has, but the realization that you manage the
warehousing of one of the big company in the country was not easy.
JANVIC JAN CANAMA
Our one on one interview with the warehouse coordinator of Globe
telecom was evidently a great experience. It was a great opportunity to talk
to a person who has great knowledge on this field. This interview has given
me a wider outlook towards warehousing. Stereotypically speaking, most
people would think that warehousing is just all about storing the goods. That
is why most would neglect its worth. But it turned out it’s the other way
around. Warehouse does not just store. It receives, identifies, sort, store,
pick, pack and then ships. Although it might sound easy, there are actually a
lot of factors to study and consider as one wrong decision can affect the
operation in the warehouse.
I can see in the eyes of the interviewee how passionate and serious he
is on his job. This gave me determination to work harder and aim high. It
made me want to achieve what he has attained now. I have learned a lot
from this interview and I know this will knowledge will help me in my future
endeavors.