A system study on the outbound process of Primer Group of Companies' KIDC Warehouse

A system study on the Primer Group of Companies, a company that distributes apparels, foottwear, bags, industrial equipment, and others. The company is consists of five main companies. The study focuses on the Kenrich International Distributor Corporation (KIDC) of Primer Group of Companies, which mainly distributes Fitflops and other clothing types. The study period was from January 2018 to December 2018. The company's objectives were evaluated by determining their strengths, weaknesses, opportunity and threats. Through a WOT-SURG analysis, it was found that the biggest problem KIDC have was the incompletion of transfer orders received from January to December 2017, which led to a deviation of 9.16% from the target 98%, resulting to an estimated opportunity cost of Php14,338,592.80.The investigation of this problem was further deepened through the use of a why-why diagram to find the root causes of the problem. After performing final cause verification and validation, the root causes of the said problem were long picking time and the piling up of pending transfer orders. With this information, solution were formulated. The proposed solution for the long picking time was batch picking and the solution for piling up of pending transfer orders was to limit the maximum allowable transfer orders the warehouse can receive per day. Supplementary solution were also proposed such as improving the warehouse layout of shelves and the items placements. The effectivity and improvement by these proposed solution was supported using both manual simulation and using ARENA simulation software. Results from the said simulation showed that the proposed system improved the completion rate of transfer orders, therefore, decreasing the opportunity costs. The implementation of this proposed system led to a net present value of P108 million, and a payback period of 2 months.