Case study: Ultron

Key words: Warehouse, warehouse process,

Warehouse layout.

Subject Usage: Operation Management, Supply

Chain Management

Dr. Kulkarni Prasad Vasantrao

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Business overview
 Consumer Electronic division Manufactures air
conditioners, TV, washing machines, Micro wave ovens, and
small appliances.
 Distributor of consumer electronics of various
international brands.
 16 Manufacturing locations in India
 62 warehouses.
 4 warehouses in Gujarat
 Largest warehouse in Gandhinagar( case study based on
this warehouse).

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Gandhinagar warehouse Layout

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 Multi-Brand warehouse
 Warehouse of partner company products.
 500 SKUs 12 Product Categories.
 Area in the warehouse divided based on the product.
 The product area further divided by the category.
 Vertical stacking method used.
 Vertical space is 24 feet but company is using 12 feet
space due to client specifications.
 Further vertical space utilization is not possible
 Floor utilization is 90% during peak season.

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 Warehouse timings : 9.30 a.m. to 6.00 p.m.
 Order execution begins at 9.30 a.m. and dispatch of
goods to retailer begins at 12 Noon.
Type of vehicle Number available
Product type Percentage composition Tata 1109 Truck (24 ft) 1
Refrigerators + Washing machines 50% Tata 407 Pickup 3
Tata Maximo 4
LCD/LED/CTV + Small home appliances 30%
Tata Ace 1
Air conditioners + Coolers 20% Total 9

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 The employees have both skilled and semi- skilled .
 All employees are trained for loading, unloading, picking
and other functions.
Employee Designation Number available Skill level
Warehouse manager 2 Skilled
Supervisors 7 Skilled
Put-away and Picking personnel 24 Unskilled

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Warehouse Process.
 Docking bays
1. Four docking bays.
2. Used for inbound or outbound operations.
3. Rear gate also had a docking bay that rarely used.
 Inbound
1. Product arrives at any time of the day.
2. Product scanned on SAP inventory system using code.
3. Purchase order checked
4. Unloading instruction given
5. Assigning the labor.

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 Put away
1. Assigning the labors.
2. 14 hydraulic trolleys to pass
the goods manually.
 Dual cycles
1. Drop the goods and pick the
goods from other area to
complete the cycle.
2. Maximum 5 minutes taken

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3. Bulk items were carried manually that led to the damage.
4. The number of products transformed depend upon the
product category.

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 Returns
1. One to Two percent.
2. Returns are due to product malfunctions and
obsolescence.

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Problems
 Due to large warehouse product movement is slow.
 No ware house management system
 Moisture inside the warehouse.
 Product stored based on the availability of the space.
 Low picking efficiency.

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Options management thinking
 Mezzanine floor
 Color coding for new and old products.
 Pallet flow rack system

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 Dedicated fast pick area.

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