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ON
2018-2020
SUBMIT BY
SUBMITTED TO:
This is to certify project report entitled “Space Utilization of Flipkart Warehouse” which is
submitted by me in partial fulfillment of the requirement for the award of Master of
Management Studies,(University of Mumbai) Dr. V.N. Bedekar Institute of Management
Studies, comprises of my original work and due acknowledgment has been made in the text
to all other material used.
____________________________________
Date & Signature of Candidate
CERTIFICATE BY THE ORGANIZATION
The recruiting organizations may use the following format for giving the letter of
completion of project.
This is to certify that candidate Mr. Ashok RamkumarJakhar has worked for a tenure of 45th
days with our organization. He has undertaken the project entitled “Space Utilization of
Flipkart Warehouse” under the supervision of Mr.Manthan L.
Company Details
Name of Flipkart - Large Distribution Center.
1 Company
Title of the Space Utilization of Flipkart Warehouse
2 Project
Outbound Department
3 Department
A brief of the This project is based on problem of Space Utilization in the warehouse of Flipkart
4 project and suggestion for solution to get best utilization of available space.
TABEL OF CONTENT
1. EXECUTIVE SUMMARY 1
2. INTRODUCTION
3. ACHIVEMENT
4. LITERATURE REVIEW
5. OBJECTIVE
6. RESEARCH METHODOLOGY
7. PROCESS OF WAREHOUSE
8. EQUIPMENTS
9. PROBLEMS IN WAREHOUSE
12. SUGGESTION
14. CONCLUSION
15. BIBLOGRAPHY
Executive summary
Warehouse management:-
Company profile:-
It includes the project details, the company details, layout of warehouse, overview of all
department of company.
Flipkart:-
Flipkart is an e-commerce company. The company initially focused on online sales with
countrywide shipping.
Objective:-
Objective of the study is to utilize the proper storage and space utilization of warehouse area
at Flipkart.
Problem Phase:-
Average product per palate for fast moving products of 100 models of 48 brands is 6
which contributes to 61% of sales.
Improve product per palate (ppp) for fast moving products by 10-20%. And utilize the hubs
area space in inbound area and plot the staging area as per the load of particular hub
In 2007, when Flipkart was launched, Indian e-commerce industry was taking its beginner
steps. The company is registered in Singapore, but there headquarters are in the city of
Bangalore, India. Sachin Bansal and Binny Bansal, who were working for Amazon.com had
an idea to start an e-commerce company in India. Both of them are alumni of IIT, Delhi and
are native of Chandigarh, India.
To begin their own company, they left their employment in Amazon.. One can effortlessly
call
that dangerous change. In a nation where individuals have different tastes and preferences,
there will always be huge difficulties for an ecommerce start up..People in India often prefe
r to shop personally and purchase products that they see and like.
Today, e-commerce has become one of the fastest increasing industries in India, thanks to
Flipkart.Flipkart has started selling books to start with. It quickly extended and started to
offer a broad range of excellent things .Innovative from the outset, Flipkart has been home
to some of Indian e-commerce's striking characteristics.
Flipkart raised money through venture capital financing in the first few years of its existence
As the business grew in stature, there was more financing. Flipkart repaid the confidence of
investors with excellent performance year after year. Flipkart produced revenues to the
tune of 40 million Indian rupees in the economic year 2008-09. This quickly risen the
following year to 200 million Indian rupees.However, as of February 2016, according to
Morgan Stanley, their estimated value was $11 billion, their last round of fundraising had
risen their value to $15 billion. Back when Flipkart was introduced, there were two
significant problems faced by any e-commerce business. One was the internet gateway pay
ment issue. Not many people preferred payment online and it wasn't simple to set up
gateways. In relation to others, Flipkart addressed this issue by implementing money on
delivery and card payment on delivery.
Flipkart was the first to introduce the famous ' Cash On Delivery ' facility offered as an
alternative by every online shopping website in India today. The second issue was the
entire supply chain system Delivering products on time is one of the most significant factors
determining the achievement of an ecommerce business.By launching their own supply
chain management system to deliver timely orders, Flipkart tackled this problem.
Sachin Bansal is the company's chairman today as it stands, and Binny Bansal is Flipkart's
CEO.
In inventory area rack aisles are segregated between verticals, there are 32 aisles from AA
to AX. aisles are reserved for bulk inventory and AY,AZ and BA to BF are reserved for loose
inventory.
Flipkart has a warehouse spread across Metros such as Mumbai, Kolkata, Delhi and Chennai
and Pune, Bangalore and Noida towns. They also have lower regional distribution centers in
more than 500 locations. Company has tie ups with more than 15 courier companies such as
Blue Dart, First Flight etc. to deliver their products and Indian post to fields where courier is
unavailable.
Flipkart's co founder, Sachin Bansal, has been awarded the 2012-13 Entrepreneur of
the Year from financial times, leading the Indian Economic Daily.
Young Turk of the Year given to Flipkart.com at the 2012 Indian Business Leader Awa
rd (IBLA) of CNBC TV18.).
Flipkart.com has been chosen for the Tomorrow Awards 2011 Indian MART
leadership.
Flipkart.com, second place secured in the 2013 Mobile Store List, complied with by
Indian e-commerce, Zoutons.com observes.
Flipkart introduced its own tablet & mobile devices in July 2014. Digiflip pro XT 712
Tablet was the first of these tablet series. They also introduced their first router for
networking. Under its own brand, Wireless N Router DigiFlip WR0031 300 mbit / s.
They have also propelled home purposes brand Citron. The label contains a wide
range of cooking utilities plus grooming products.
In 2011, Flipkart later purchased the Mime 360.com & Chakpak.com websites,
revealing its fresh Digital Music Store flying. Flyte, itunes & amozan.com's legal music
download service, provided DRM free MP3 downloads. But it was shut down on
17 June 2013 owing to the introduction of free music streaming locations, as paid
song downloads did not become popular in India.
One of the primary objectives in the design and operation of warehouses was to optimize th
e use of space (Van den Berg 1999).The U.S. Roadmap for Material Handling and Logistics
acknowledges low warehouse use as one of the primary variables prompting businesses,
organizations and governments to increase the number of cooperative warehouses in the
next centuryIt also predicts that demands for high speed delivery or evenday delivery forces
businesses to construct their warehouses and distribution centers close significant
metropolitan areas where real estate is very costly and therefore more essential is the
effective use of space (Gue et al. 2014).
The internal structure of the storage region beyond its size and rectangular shape was not
considered by Francis (1967). Its capability is a main feature of storage (Rouwenhorst et al.,
2000). It relies on its inner layout and storage systems, in relation to its size and shape.
Berry (1968) equated the optimum efficiency of the warehousing operation to the one that
minimizes the total costs, which are made up of two categories: costs associated with the
storage area or volume occupied, and material handling costs. He investigated in detail two
layouts: a rectangular block with aisles parallel to the two walls and a perpendicular
connecting aisle along another wall.
(TIAN RAN.ek.al.2009) One of the primary reasons for wasting time resource is irrational
working method. Thus, business process optimization, integration, and streamline flow are
the inevitable requirement that the organisation has the ability to respond quickly. Process
management breaks the organizations ' traditional business limits. Each job is a component
of the process that must fulfill the entire process's time requirement. Time is the main
effective process efficiency measure.
•To study the various way to manage the space in the warehouse so that the space would
be used for some other purpose.
• To study various process of outbound from picklist to dispatching of goods in lorry and
delivering the product to the customer on time.
• Learnt toStoring and shipping large goods, consider using some method of drop shipping
to decrease your internal inventory and expenditures.
• A thorough understanding of the present design flow and usage, including rack setup, slot
philosophy, receiving, replenishing, stock management and packing and shipping.
• Learnt seasonal peak trends and thorough inbound and outbound product stream
quantity analysis.
•Learnt to Store a big amount of surplus inventory for a few products, consider some sort of
offsite storage for excess storage, thereby freeing up room to support the executionproced
ure.
• To analysis the different inward and the outward of the product according to the
requirement of the client.
• To manage the floor in such a way that would minimize the wastage in the floor
management.
• To analysis the function of the warehouse on day to day basis and the arrangement of
goods properly according to the rack.
• While picking any product if boxes found damage or in wet condition, the supervisor first
check the boxes and product inside that then supervisory click the picture of damaged boxes
and send email regarding the issue to consignor.
This study is based on qualitative research because we have the primary data of the Flipkart
and t this data is related to space optimization. Using this information we can get the best
way to utilize the space area or storage area of Flipkart warehouse Our research is based on
expertopinion and Focus group. From our team of internship I get the lots of suggestion and
knowledge by the supervisory and other staff of lower ground.
Sampling techniques:
Definition:
The research is based on the proper utilization of space of the area, according to our
research we are use the both the type of method to collecting the data and information
related to space utilization. For the space utilization, the research methodology is of both
primary & secondary data.
Data Collection:
1.Primary Data: Data gathered directly from a source is referred to as primary data for a
particular purpose. Primary data is more costly then secondary data.
As I myself worked in Flipkart warehouse the primary data is collected from the Flipkart Pvt
ltd.
a. We collected the data from internet, some research paper and reference book that
have some related data and information for my research.
b. The data is also collected through company profile, company register websites and
articles.
c. By using warehouse data and research instruments also.
PROCESS OF WAREHOUSE
INVENTORY FLOWCHART PROCESS
Put list
Generation
ON
Physical
placement
ON
Updating the
location in
FLO
ON
Generate
Transfer List
ON
Placing the
products in
Outbound
Updating the
location in
FLO
ON
Inventory Management:
1.The inventory management function is to ensure that the stock is stored in the correct loc
ation within the DC and that the stock and its movement are kept accurate records.The
inventory must be properly documented in the database in which you place products in
order to accurately record their sizes in the form of master dataRecords data for weighing
products such as height, width, length, quantity and a scale. Then this information is stored
as master data.
2.In Flipkart all Brands of goods are unloaded by Flipkart labour, Only LG and Whirlpool
brand have their own manpower for unloading the goods from Trucks.
3. Flipkart utilizes a model of ongoing evaluation. When inventory concentrations achieve
Reorder Point (ROP), inventory stocks are restored. The business first uses ( FIFO)
technique to manage its inventory. Under the FIFO technique, the application for delivery is
sent to a specific warehouse where the oldest items of inventory are first transported. This
model makes sense for electronics as technology is rapidly outdated.
Flipkart utilizes sales to predict inventory levels. The warehouses are divided into multiple
parts like inventory, packaging, shipping, etc. Stocks are restored every 24-48 hours and
details of all transactions are recorded at the back end of the business.
The business has partnered with postal businesses to track and reconcile orders, so the
customer is updated via email, website or text messages about the status of his order.via
email, website or text
messages.If the item needs to be reimbursed, it is effectively and efficiently achieved due to
the
collaboration between the businesses and the courier companies.For electronics, warranty
and after sales service is solely the responsibility of the manufacturer, but Flipkart facilitates
communication between supplier and customer.
INBOUND FLOWCHART PROCESS
Material Supplier
Material Receive
Item Passed
Label
Warehouse (Inventory)
Inbound Management:
1.Inbound also recognized as receiving, is the operation that confirms that the dealers
delivering to the DC (Distribution Centre) drop the accurate stock on the predictable days, in
the right quantities and at the correct quality. This is associated to demand planning to
meet requirements of consumers on web portal. Incoming loads are check and received into
the DC. Then loads are assigned for put away into their prearranged pick face or reserve-
racking position. It is dynamic to confirm that the stock is received properly and any
inconsistencies from the dealers are identified and corrected.
2. During our Internship project that is from 2nd May to 31st May of 2019, there were 289
Trucks with a product capacity of 32,898 items, Has ordered by Flipkart in Inbound process.
OUTBOUND FLOWCHART PROCESS
Select
Pick Zone
Enter
Priority
Type
Give
Picklist
Insert
Tote
Number
Enter WID
Dispatch
the Goods
Manifest
the
Product
(billity)
EQUIPMENTS IN WAREHOUSE
Features:
Features:
Features:
Features:
Pallets are made of a multitude of materials. In terms of cost and efficiency, the wood pallet
dominates the marketplace. It is rigid, cheap and readily manufactured in different,
dimensions as needed.Pallets made from other materials also play a major role For several
reasons, plastic pallets are appreciated, including durability, cleaning ease.
5. Hand Device
Connectivity in real time to business critical apps and quick information capture capacities in
a extremely durable, longlasting form factor designed for maximum uptime and productivit
y in the field or on the selling ground Advanced 2D imager provides the best display of infor
mation on linear and 2D barcodes. Optional scanning handle for flexibility in switching activi
tybetween handheld and pistol grip to decrease user fatigue.
6. HHD Scanner
Lightweight printer that can work with any portable label, document or receipt printi
ng application wherever you are in need of labels printed..Designed for hard road life
,warehouse or retail site.Printer is IP54rated, resisting dust and water and enduring a
6-
foot drop and continuing to print.These light and small printers can be worn securely
for a whole shift, without intrusive with the operators tasks. Use USB optimum
Bluetooth, 802.11b/g/n wireless or sequential to link to a mobile computer or even a
Mobile.
PROBLEMS IN THE WAREHOUSE
Most of the warehouse optimization problems are linked to mistakes, inefficiency,and absen
ce of transparency. With warehouse management systems, automated material handling
systems, barcoding, and automated information collection, many warehouse executives are
addressing these difficulties.
Warehouse space utilization is one of the most important considerations when calculating
warehouse space needs for your products and it’s almost always underestimated.
Warehouse space is not always used for storage as some of it is also used for rows between
products, columns, maintenance, staging & checking areas, safety walkways, loading areas,
admin areas, equipment parking, etc. Also, product configurations do not always utilize
every stack & bay all the time because of rotating products, stack issues, audit
requirements, quality issues, and other things related to the nature of the product.
Warehouse use measures the effectiveness with which the storage capacity of the warehou
se is used.If storage systems and warehouse racking are not optimized the necessary space
within the warehouse rises. If you observe only 40% of rack area is utilized rest 60% is not
properly utilized.
Average product per palate for fast moving products of 100 models of 48 brands is 6 which
contributes to 61% of sales.The scope of this project lies within: Inbound, Inventory and
Outbound area of Flipkart Warehouse and the major problem arise in warehouse is to
improve product per palate (PPP) for fast moving products by 10-20%.
For optimizing the space of warehouse first you need to utilize your cube of inventory
area. Without precise insight into the location of the inventory, pickers can not operate effe
ctively, resulting in slower charging procedures and dock scheduling backups,after that
analyse the inbound area and Inventory racks. Modified the outbound staging area get
proper utilise of hubs area as per the schedule time.Calculate the lose area of inventory
which causes measure cause of space utilization.
If storage systems and racking of warehouses are not optimized, the space needed to house
inventory and labor within the warehouse will improve.
We can get potential use of storage area by focusing on some points in warehouse they
are as follows:
❖You need to "maximize the use of your cube" to maximize warehouse use.
❖You need to yieldbenefit of all the vertical space that you have obtainable in racks.
❖Plot out your warehouse and determining the size of each storage location and
distance to your dispatch area. Using this information, you would then slot your
fastest moving items in the closest location to where your pickers started their picks
from, second fasted item in next closed location and so on.
❖ In inventory area rack aisles are segregated between verticals, there are 32 aisles
from AA to AX aisles are reserved for bulk inventory and AY,AZ and BA to BF are
reserved for loose inventory.
❖ Due to bulk to loose pattern there are a lot of issues are arising related to space
optimization in loose area there is no proper pattern for storing inventory which
leads to miss shipment of products and product not found at location.
❖If you utilize the vertical space of rack area there are the
Chances that product per pallet (PPP) can be increased.
In one aisle there are 28 blocks so (i.e. 14 blocks of even no. and 14 for odd one) :
GO` G1 G2 G3 G4 G5
one block= 3 one block= 3 one block= 3 one block= 3 one block= 3 one block= 3
pallets pallets pallets pallets pallets pallets
❖ Total 32 aisle are having in inventory area where 24 aisle are reserved for
bulk inventory 8 aisle are reserved for loose part of inventory.
Total 32 aisle Total no. of pallets g0,g1,g2 Total no. of pallets g3,g4,g5
❖Sample size of 98 models of fast-moving products, current staking pattern are as followed
in G0, G1 to G5 location is:
Number of rows and product per pallet PPP
Note: Read number of products per pallet and rows which you are stacking in rack areas.
Which can be improved if you properly use your rack vertical space as per the stacking norms
of the product.
LOOSE PART OF INVENTORY AREA
❖In racks loose area is having a lot of issues are arising due to bulk to loose pattern of
inventorymanagement, if in loose aisle fixed pattern of storing a product vertical wise and
as per the modelsof fast-moving products implemented then it will lead to proper use of
rack area of loose inventory.
❖While putting a product from the bulk to loose part of the inventory area putter use the
manualpattern of recording the locations and it will further handover to inventory area for
the updating insystem, there may be chances of recording wrong location in system because
it depends on human actions which will ultimately lead to product not found at location.
❖It can be reduce if the use scanner will be implemented while putting a products from
bulk to lose part of inventory, which automatically reflects in system and it will also reflects
that how manyquantities of a particular models which are already there in real time and as
per the reserved orderhow many quantities needs to be put more.
❖There is always the chance for products to get mixed up or misplaced with hundreds
of products, many of which look alike.This leads to discrepancies in stock counts that are ulti
mately reported as a lost inventory
Visible product labeling is an optimal way to avoid such inventory loss.Use large, visible and
codebased product labels that can be readily identified and picked by warehouse
employees.
❖As fresh inventory shipments arrive, you need a designated receiving area where goods
are sorted and transferred to the appropriate warehouse regionThe designated reception zo
ne is often located at the back of the warehouse or near a reception gate if there is no one i
n the back.To determine the required room, estimate the average delivery size .If your
inventory of warehouse contains products with a shelf.
IMPROVEMENT PHASE
→ImprovementinInboundareaandInventoryracks:
❖If you consider the LBH of product and rack area with respect to weight of product and
weight-bearing capacity of rack you can use it in a better way.
❖ If there is a fix module or location for a particular model of particular brand and same is
recorded in the system then system will show how many quantities we are already having in
our inventory at exact rack location (i.e. G0 or between G1-G5).
❖You can also fix the aisle block to a particular model so that it will not create any mess in
inventory area as per the fast, medium and slow-moving concept. Fast moving product can
be kept in front blocks (i.e 1-40) it can help the putter and picker to receive the shipments
and dispatch the shipments from the rack area of inventory.
❖ Sample of 98 models out of which 46 models for G0 location in which improvement can
be possible if vertical space of rack area is utilized and for G1 to G5 location 28 models in
which improvement can be possible. I.e product per pallet can be increased (ppp).
❖currentppp for g0 and g1-g5 location, proposed ppp for g0 and g1-g5 location,% improved
in ppp of confirmed products for g0 and g1-g5 location. Overall it will lead to LBH
improvement of rack inventory.
BEFORE AFTER
● Improvement in pppof ACppp :
In racks
. G0 = TOTAL 6 INDOOR 6 OUTDOOR PPP LOCATION PPP
. G1 = TOTAL 5 INDOOR 5 OUTDOOR PPP Z1G0AA2 6
0
We have g1-g5 rack area Z1G1AA2 5
0
Z1G2AA2 5
TOTAL 25 INDOOR 25 OUTDOOR PPP
0
Z1G3AA2 5
0
Z1G4AA2 5
0
Z15AA20 5
❖The inspection is doing for reducing the miss-shipment of product and in this process we
will checking the all the information of product and customer. They are checking is this
product is correctly picked for customer or not correct. This all comes under this process.
❖Order is shipped form warehouse (Out-scan is performed & Manifest is generated):- as a
last process of warehouse is Dispatching. In this process we will putting our product in the
vehicle for going to LM(Last-Mile-hub). And in this stage we will doing the out-scanning.
Using out scanning the customer is track his product. Currently ware is his product. That also
use for flipkart to tracking and recording.
❖An area kept in stock reserve ready for final assembly or vehicle. For a staging place, an
outbound staging dock is an common choice.
In this place, a final visual or electronic loadinspection may be carried out to guarantee ship
ping accuracy.In the putaway phase staging area may also be used
to temporarily grip inbound deliveries before storage.
❖In current scenario (approx 22-23 hub) is having fixed area for staging rest are adjusted as
per the LPST time and hub load.
❖ Staging area can be utilize for all the hub if it is plotted as per the hub loads, same hub
can be used for another hub if layout is planned as per the occupancy ratios.
Total occupancy ratio of staging area : 60% which can be improved.
● Warehouse Layout:
The proposed layout for outbound staging area is more efficient convenient and easy for
slotting the goods to their docks at time of dispatching the goods, as you can observe in
proposed layout now SBS 1 contain 15 hubs of different location and it is near to dock 9 and
10 which are commonly used during dispatching the goods and load the vehicles’. Further
you can see that SBS 2 added two more hubs because two new location has been added up
and in the end SBS3 consist of 4 hub which is in the end of warehouse, that give convenient
for packaging Gatti products and also easy for deliver last mild hub product.
As per the occupancy ratio of outbound area if you observe the load of every hub which is
currently plotted is not properly utilized, if you plot the staging area as per the load of
particular hub and LPST time then it will be properly utilized in future.
Proposed palate area = 48 Palate area is allocated to each hub in which 15 blocks are
plotted for 28 hub.
Expected Occupancy ratio: 85%
SUGGESTION
● If you observed the above images of control phase, same model is stored at different
locations. If putting before it into inventory area ,while creating a put list a person will go
and check the suggested locations and those location in which the same model is kept
before he will come to know where the space is empty or how much space is empty at
previous location.
● Accordingly he will get information how much quantity can be stored at the previous
location and for how much quantities he have to assign new location. In this manner you can
store same products at near by location or utilize the previous empty space for new
inventory.
● In loose part of inventory rather then storing as per reserved order you can use 5 aisles as
a mini inventory in which all the fast moving products can be stored in less quantity as
compared to bulk inventory and in 3 aisles ,the medium moving and slow moving goods can
be kept, on daily basis stock take of loose aisles can be done to maintain the mini inventory.
● It will lead to reduce pickers time, mis-shipments, utilization of the loose aisles, reduce the
operating cost and labour needed in house.
POTENTIAL BENEFITS
Employee Satisfaction
Decreases the period necessary to process put away, picking and stock transfers.
This project has given me broad aspect to gain knowledge of the Supply chains,
Warehousing loading an slotting goods and wide knowledge of operation management.
The project also help me with gaining a vast knowledge in the field of warehouse there
inner process the safety they used and how the functioning of warehouse from receiving
of goods from the vendors and make it reach to the costumer.
It also help me on knowing the slotting of items in the warehouse according to their use
and what are adverse effect in the process if the product are not properly slotted. It will
effect at the time of dispatching the goods near dock, if the product is not found then all
the process have to been reprocess find the product in time before the product goes in
bridge and it will hold that process and convert into extra cost
.
The proper allocation of the item helps in smooth flow process and lead to save time as
well. Having a project in such a great organization has helped me to a greater extent in
the field of operation, warehousing and supply chain.
It was like I was not working in one organization but it was feel of working in many
organization at a time as they having Tie ups with many national and global Brands of
various variety.
This project is not only exposed me to do this research but has also given me an
opportunity to understand the warehousing operation, work culture and
professionalism which would help me to excel min my career.
BIBLOGRAPHY
WEBSITE
http://www.flipkart.com/about/home.html
http://www.multichannelmerchant.com
http://www.stategicwarehousing,com/services.
http://www.interpack-tradefair.ae
JOURNALS
BOOKS
Inventory Accuracy.