Department Of Logistic, Purchasing And Warehouse

Welcome to

Department of Logistic, Purchasing and Warehouse

Objective Give the best service by professional guide and provide ease to all department in buying items and services provided, store center management and manage transportation for the company with efficiency and at the lowest possible cost.

Mission and vision 1. Ensuring all the requirements of the customers are met on time in an efficient and safe manner. 2. To coordinate with third party logistics (3PLs). 3. To ensure that there is a safe and timely dispatch of goods. 4. To draft plans, policies and procedures for successful implementation of logistics system. 5. To ensure that the business goals of the organization are in synchronization with logistics system. 6. To create and maintain customer support. 7. To maintain coordination with vendors, service providers and transport carriers. 8. To ensure that no fraud is committed. 9. To ensure timely supply and payment of goods and reduce inventories

Organization Chart

GANTT CHART

LAYOUT DEPARTMENT

Portfolio Of Logistic, Purchasing, And Warehouse

Logistic 

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Logistics management is that part which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, and services. Strategic plans are developed by the department to support development of fresh product and manufacturing flow management. This helps in bringing raw materials or semi-finished goods to the premises of the organization in a safe and proper condition at an economical cost. The department is also responsible for coordination with suppliers with regard to scheduling, hedging and timely delivery.

Purchasing 

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Purchasing refers to a business or organization attempting to acquire goods or services to accomplish the goals of the enterprise. Strategic for purchasing departments are using to lower costs and improve quality. Strategic involves analyzing what products the company buys in the highest volume, reviewing the marketplace for those products, understanding the economics and usage of the supplier of those products, developing a procurement strategy, and establishing working relationships with the suppliers that are much more integrated than such relationships were in the past. During this process, purchasing conducting

Ware House A ware house is to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking. Ware house management system is to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc), manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility.

Inventory management

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Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods Also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting

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The criteria in choosing the supplier are depend on the best price offer,

the quality of product, the location of the supplier company, the good cooperation between the supplier and our company, the guarantee from the supplier which can always supply the material that we need in making the cup cake without any problem. the product that supplier produce must get the certificate from JAKIM to get Halal logo.

supplier company for Nyum – Nyum Bakery SDN BHD

Material

Brand

Butter

DAISY

Baking powder

Address and contact suppliers

Flavor

Price per unit

Lam Soon Edible Oil Sdn. Bhd Wisma DLS, 6 Jln Jurunilai u 1/20, Hicom – Glenmane Industrial Park, 40150 Shah Alam, Selangor

RM 7.00/1kg

MFM

Malayan Flour Mills Berhad, Jln David Sung, Bata Undar, 32200 Lumut, Perak

RM 3.00/1kg

Sugar

PRAI

Malaysia Sugar MFG.CO. Bhd, 798, Main Road 13600, Prai, Malaysia

RM 1.25/1kg

Eggs

Healthy Farm Fresh Eggs

Soda bicarbonates

NUR

Plasmore Sdn. Bhd, 2 Jln Selesa 1, Tmn Bkt Indah, 58200 Kuala Lumpur

RM 0.90/100g

Vanilla essence

NUR

Plasmore Sdn. Bhd, 2 Jln Selesa 1, Tmn Bkt Indah, 58200 Kuala Lumpur

RM0.90/25ml

Cup

-

Plasmore Sdn. Bhd 2 Jln Selesa 1, Tmn Bkt Indah 58200 Kuala Lumpur

Jam or pes

Wan Jam

Wan Shes Enterprise 52, 52-1 Jln TU 40, Taman Tasik Utama, 75450, Melaka

Soon Lee Trading Co, No.9, Jalan Desa Aman, Cheras, 56100 Kuala Lumpur

RM 5.60/30 unit

RM1.70/35 pieces Blueberry

RM3.30/350g

Strawberry

RM3.25/350g

Chocolate

RM 3.55/350g

Vanilla

RM3.30/350g

Total costs for 35 unit of cup cake for each flavor Blueberry= RM 12.71  Strawberry = RM 12.59  Chocolate= RM 13.34  Vanilla= RM 12.71 

Total cost for 1 unit of cup for each flavor Blueberry= RM 12.71/35 = RM 0.37  Strawberry= RM 12.59/35 = RM 0.36  Chocolate= RM 12.71/35 = RM 0.36  Vanilla= RM 13.85/35 = RM 0.40 

List Of The Prices Of Products Needed Item

Quantity

Price market per unit

Total price

Forklift Toyota

1

Rm 60 000

Rm 60000

Lorry Pickup

2

Rm45 000

Rm 90000

Van

2

Rm 20 000

Rm 40000

Bingers Freezer

3

Rm 45 00

Rm 13500

Computer

4

Rm 1500

Rm 6000

Arbitrator

2

Rm 5 000

Rm 10 000

Table and chair

6

Rm 700

Rm 42 00

Hand pallet truck

2

Rm 3 000

Rm 6 000

10

Rm 1 000

Rm 10 000

Total cost

Rm 239,700

shelf 5 floors

8.4 Costing transportation In delivery of cup cakes, a few aspects must be considered to make our delivery on time to customers and also can minimize the cost in transportation. Below is the aspect that our department identifies: (1)The distance of market location and the quantity of product must be consider in delivery cup cakes for each destination.. (2)The way of location which it are related to connect for each others destination. In others word, for one trip of delivery it can supply our product to many place but it depend on the quantity of cup cakes requirement and the capacity of vehicle. (3)Choosing the type of transport for delivery of cup cakes which is depending on the quantity of cup cakes requirement from customer.

Below is marketing location of cup cake with their distance from our factory and the quantity of cup cakes No

Location

Distance (KM)

Quantity (Unit)

1

Air Keroh

2

2867

2

Bandar hilir

10

2909

3

Peringgit

7

860

4

Bukit Baru

6

380

5

Bukit Beruang

3

330

6

Bukit Katil

6

340

7

Cheng

12

423

8

Batu Berendam

6

409

52

8518

For delivery the cup cake, the transportation that we use is a van and lorry pickup. Fuel material Van = petrol Lorry pickup = diesel Retail price for fuel material Diesel = RM 1.70 Petrol - Have two type of petrol which is: Ron95 = RM1.800 per liter Ron97 = RM2.050 per liter So, our department management decide that we choice the petrol type Ron 95 as a fuel material for our transportation of van. Assume that, Van = 18 liter of petrol can be using about 100KM for mileages. Lorry pickup = 18 liter of diesel can be using about 140KM for mileages. In delivery cup cakes to customers, Petrol usage for 1KM, = 18 liter/100KM = 0.18 liter/KM Diesel usage for 1KM, = 18 liter/140KM = 0.129 liter/KM

Material Requirements Planning (MRP)

Table : On-hand, Usage, Lead time quantity of cake Cup Cake Component number

Description

Quantity per

B-122

Cake

1

M

B- 111

Cup

1

B

B- 103

Jam

25 / 35 g

B

Cake Component Number

Assembly / Make / Buy

Description

Quantity per

Assembly / Make / Buy

B- 221

Butter

4.30 g

B- 322

Vanilla essence

1 / 35 teaspoon of B vanilla

B- 142

Baking powder

5.30 g

B

B- 154

Sugar

4.30 g

B

B- 121

Soda bicarbonates

0.5 / 35 teaspoon

B

B- 133

Eggs

3 / 35

B

B

Table : On-hand, Usage, Lead time quantity of cake

MRP Table

Component Cup Cake LT : 1 Day Usage : 1

DAY 1

2

3

4

Gross Requirements

5 9300

Schedule Receipts On-Hand

0

Net Requirements

9300

Planned-Order Receipts

9300

Planned-Order Releases

9300

Component Cake LT : 1 Day Usage : 1

DAY 1

2

3

Gross Requirements

4 9300

Schedule Receipts On-Hand

0

Net Requirements

9300

Planned-Order Receipts

9300

Planned-Order Releases

9300

5

Component Cup LT : 1 Day Usage : 1

DAY 1

2

3

Gross Requirements

4 9300

Schedule Receipts On-Hand

27900

27900

27900

27900

Net Requirements

18600

Planned-Order Receipts

18600

Planned-Order Releases

18600

5

Component Jam LT : 1 Day Usage : 25 / 35 g

DAY 1

2

3

Gross Requirements

4 292.75

Schedule Receipts On-Hand

698.25

698.25

698.25

698.25

Net Requirements

405.5

Planned-Order Receipts

405.5

Planned-Order Releases

405.5

5

Component Butter LT : 1 Day Usage : 4.3 g

DAY 1

2

Gross Requirements

3 39.9

Schedule Receipts On-Hand

119.7

119.7

119.7

Net Requirements

79.8

Planned-Order Receipts

79.8

Planned-Order Releases

79.8

4

5

Component Essence

Vanilla

DAY

LT : 1 Day Usage : 1 / 35

1

2

Gross Requirements

3 2.66

Schedule Receipts On-Hand

7980

7980

7980

Net Requirements

7977.34

Planned-Order Receipts

7977.34

Planned-Order Releases

7977.34

4

5

Component Powder

Baking

DAY

LT : 2 Day Usage : 5.3 g

1

2

Gross Requirements

3 49.29

Schedule Receipts On-Hand

147.87

147.87

147.87

Net Requirements

98.58

Planned-Order Receipts

98.58

Planned-Order Releases

98.58

4

5

Component Sugar

DAY

LT : 2 Day Usage : 4.3 g

1

2

Gross Requirements

3 39.9

Schedule Receipts On-Hand

119.7

119.7

119.7

Net Requirements

79.8

Planned-Order Receipts

79.8

Planned-Order Releases

79.8

4

5

Component Soda Bicarbonates

DAY

LT : 1 Day Usage : 0.5 / 35

1

2

Gross Requirements

3 2.128

Schedule Receipts On-Hand

6.384

6.384

6.384

Net Requirements

4.256

Planned-Order Receipts

4.256

Planned-Order Releases

4.256

4

5

Component Eggs

DAY

LT : 1 Day Usage : 3 / 35

1

2

Gross Requirements

3 798

Schedule Receipts On-Hand

2394

2394

2394

Net Requirements

1596

Planned-Order Receipts

1596

Planned-Order Releases

1596

4

5

Economic Order Quantity Model 

Basic economic order quantity model

The inventory cycle

For the inventory cycle the order size, usage rate, reorder point, and lead time Raw material

Order size

Usage rate(per day)

Reorder size

Lead time

Sugar

119.7kg

4.3g*9300=39.9kg

79.8kg

2

Butter

119.7kg

4.3g*9300=39.9kg

39.9kg

1

9300

1

98.58kg

2

Cup

27900piece

9300

Baking powder

147.87kg

Vanilla Essence

7.98L

10ml*266=2.66L

2.66L

1

Soda bicarbonate

6.384kg

8g*266=2.128kg

2.128kg

1

798

1

232.75kg

1

Eggs

798

Jam

698.25kg

5.3g*9300=49.29kg

3*266=798 875*266=232.75kg

Flow Chart ( Processing in department )

Requirement of material form another department. Purchasing will select the best of material or the supplier. Quotation from the supplier. Yes The material is suitable with the price.

No

Request the modal at the finance department.

Get the material and save in warehouse

Production department request their order.

Product (Cup cake) Store the product.

Marketing department request the order from customer and deliver the cup cake.

Flow Chart ( receive Order ) Receive order.

Purchasing

Process the order (Checking)

Yes Send the order to the department

No

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