Final report unilever’s warehouse system

Warehouse function of Unilever Vietnam Company Unilever's warehouse is used as a place to store raw materials, semi-finished products and finished products in the overall transition from

Subject: Sypply Chain Management

Lecturer: Hồ Trung Thao

Members: Phạm Tuấn Minh - 22002278

Huỳnh Manh Khang — 22009641

Ho Chi Minh, 11/2022

HOA SEN

WORLD CLASS EDUCATION

MINISTRY OF EDUCATION AND TRAINING

HOA SEN UNIVERSITY FACULTY OF ECONOMICS BUSINESS

FINAL REPORT

UNILEVER’S WAREHOUSE SYSTEM

Lecturer: H6 Trung Thao

DECLARATION

Around the world, more supply chains are being established these days The production and trade activities of organizations are significantly affected by the supply chain, which is considered an important stage in the development of a company The supply chain includes all the users and processes that an item goes through (purchase of raw materials, manufacture of the product from raw materials, packaging

of the product, shipping the item to the business, distributors, etc.) etc) retailers, etc.) Therefore, the supply chain is very important to get goods and services into the hands

ACKNOWLEDGEMENT

First of all, we would like to thank Hoa Sen University for giving us the opportunity to access the course Supply Chain Management And we would like to thank Mr Ho Trung Thao, who has always accompanied and created conditions for us

to absorb the subject knowledge in the best way

During the reporting period, he gave us a lot of useful advice and with his in- depth knowledge, he helped us to complete this report And in the report, there will be errors due to lack of experience, hope you and everyone will sympathize and point out mistakes so that we can learn from experience and complete the following reports better

We sincerely thank you

Best regards

TABLE OF CONTENTS

TMAGE CATTA LUC 5 nh họ HH HH BH ch th nhớ V Chapter 1 Introduction of niÏ€VeF 5= 5 5s mưa 1 Chapter 2 Warehouse operations of Unilever Vietnam Company 2 2.1 Warehouse function of Unilever Vietnam Compan - <5 =e< es ssss se 2 2.2 Unilever`s warelh0us€ SYS{©TH c9 00.50 5095.505 030 9090 080501509561 50 050 050 2 2.3 The preservation of goods with the warehouse of Unilever Vietnam 7 2.4, Learn about preserving goods in warehouses of Unilever Vietnam 8 2.4.1 a Classification of preservation meth0S 5 55s s5 se se 8 2.4.2 b Air conditioning, humidity in the wareh0uSe - 7.5555 s= => 8 2.4.3 c In addition, attention must be paid to goods care and warehouse

HyØICTHC 0G 00 0 009.0 93 000.3 0.0 0 04 0090 1 5 0 00099 05000 5505 5800809 0899 8 2.4.4 d Prevention of insects and rodents 8 2.4.5 e Some motes with unilever csccccccsssssssssssccssssssssssssssnsssnncencescessceeess 8 2.5 Warehouse management operations, warehouse management human

2.5.1 a Warehouse and inventory ManageMeENt sserccesessessesessesses sees 9 2.5.2 Methods and tools for inventory ManagemMent scesssresssessessees 9 2.5.3 General model for distributor Warehouse sssessscessesesssces eens 9 2.5.4 Distribution center warehouse model ccsscsessrsssseescsesessneees 10 2.5.5 Human resources for warehouse ManageMentt ssesessessssessssees 10 2.6 Unilever's distribution system, transportation and warehousing services

3.3 Separation function 3.4 Makes transportation easier

3.5 Transmission of information

IMAGE CATALOG

Flgure 2 Cross-sectfional image of VSTP area warelh0USe -.oos seo ssssse 3 Flgure 3.VSTP is modernly designed in the shape 0Ÿ a U 5575 so 55s ssss 4 Flgure 4.Some pictures inside the warehouse in VSŠIP area -ss-ces seees 6 Flgure ŠS.Costs for activities related f0 franspDOFfAfÏOT o7 co s5 55 sessse 11 FlIgure 6.One of the company's delivery 12 Figure 7.Log0 0Ÿ niÏÏ€V€T o5 5 s0 9 TY TP mm 030 S0 mg vn 06 14

One of Unilever's objectives as a multinational corporation is to grow its clientele and establish numerous branches all over the world to seize market share A milestone in Unilever's overall plan was taken in 1995 with the establishment of Unilever Vietnam

Lever Vietnam Joint Venture in Hanoi, Elida P/S in Ho Chi Minh City, and Best Food Company, also in that city, make up Unilever Vietnam Together, they operate as one company About 120 million USD have been invested by Unilever in these 3 companies since 1995,

Figure 1.Logo and product of Unilever

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2 Warehouse operations of Unilever Vietnam Company

2.1 Warehouse function of Unilever Vietnam Company

Unilever's warehouse is used as a place to store raw materials, semi-finished products and finished products in the overall transition from start to finish of the supply chain, providing and updating information such as _ status, conditions preservation of the goods and the location of the stored items The importance of warehousing for Unilever:

" Helps businesses save on transportation costs (due to consolidation)

= Saving production costs: preserving materials well, reducing loss, replenishing materials in time, creating conditions for the production process to take place continuously and smoothly

"Helps maintain a stable and long-term supply

=Support customer care policy and respond to customer needs in a timely manner

2,2, Unilever's warehouse system

Unilever VN currently has a nationwide distribution system through more than

350 major distributors The largest distribution center for consumer goods in Vietnam Singapore Industrial Park (VSIP) in Binh Duong province In which, Unilever's warehouse has a total area of 65,000m2, 51 import and export stores, 12 import stores,

7 floors of storage shelves, handling capacity of 300-400 units/day, 710 employees The Unilever representative said that this center will help Unilever Vietnam strengthen its ability to provide the best services to customers and consumers, and support the company's business growth plans In addition, this center will meet Unilever's rapid growth in logistics services in the next 5 years, mainly serving 3 main segments: delivery to customers in the South region, adding a sanitary distribution center Unilever's brand in Vietnam, exporting services to 10 countries and regions, ASEAN countries and observer countries of ASEAN and the world

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Basic specifications of Unilever VSIP regional warehouse:

Land area: 100,000 square meters

Warehouse area: 65,000 square meters

Can hold up to 70 thousand pallets

Information technology system: SAP WMS

Rack system: 7 floors, selective & double deep Vendor: SCHAEFER Internal transportation system: Folk lift, Pallet mover, Reach truck Vendor: CROWN

Number of outlets: 51

Number of doors: 21

Light and ventilation system: get light and wind (energy saving)

Automatic fire alarm and extinguishing system

Security camera system monitors the entire warehouse area

There is a separate promotion (mezzanine) area

There is a separate waste treatment area, warehouse and recovered goods handling area

There is a modern office area

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There is a dining area, canteen, staff motel, waiting room for drivers, medical room

The third advantage is that the distribution center is designed according to energy saving criteria and makes the most of light and wind This is Unilever's global policy "Green Supply Chain"

Fourth, the distribution centers are equipped with the most modern automatic fire extinguishing system today Besides, the Distribution Center can also take on the function of a processing factory, serving the needs of doing business promotional products, packaging, labeling, this helps save costs in the long run as well as proactively provide timely quantities when needed

Finally, this Distribution Center has full facilities for more than 700 employees working 24/7

Figure 3.VSIP is modernly designed in the shape of aU

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In terms of disadvantages:

The warehouse is designed to be Big, beautiful, majestic, with a meaningful

U, but the design of the Distribution Center makes it a bit difficult for those who specialize in warehousing operations:

First of all, in terms of design, will this U-shaped warehouse design affect the efficient use of the warehouse? Take the example of a picking problem: to fulfill an order or a set of orders, the picker will have to go around a U-shaped circle (in most cases, a large number of picks and too much) If the warehouses were designed as usual in an I-shape (one side in, one side out), the picking distance would be shorter, which means less order response time and higher productivity than Specifically, for this distribution center, if you turn around, the maximum distance is 1260m If the design is in the shape of an I, the maximum distance is only 960m It can be deduced simply, if the classic I-shaped warehouse model is used (the warehouse area does not change), the picking speed can be increased by up to 20%

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Secondly, the layout of the doors seems to be unreasonable: usually in the distribution center, the number of pickup trucks and trucks waiting to pick up goods is many times higher than in the import area The reason 1s that imported vehicles are usually large trucks carrying one or several items, including pallets Meanwhile, pickup trucks are usually pickup trucks (because customers tend to

Figure 4.Some pictures inside the warehouse in VSIP area

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order very little and because areas like the inner city prohibit large loads) Picking

up goods is also much more complicated than importing goods to the warehouse,

so trucks often have to wait Looking at the layout of the distribution center, it is easy to see that the export area is too small compared to the import area This has the potential to cause traffic jams and limit returns at delivery areas

2.3 The preservation of goods with the warehouse of Unilever Vietnam Storage of goods is one of the main functions of a warehouse Preservation and storage of goods is: ensuring the integrity of the quantity and quality of goods during the operation, taking advantage of the area and capacity of the warehouse, preserving and preserving the goods in the warehouse

Goods preservation is the formulation and implementation of a system of technical, organizational and economic measures to combat the harmful effects of the environment on the quality of goods in order to keep the goods intact in quantity 2.4, Learn about preserving goods in warehouses of Unilever Vietnam 2.4.1 Classification of preservation methods

Unilever's main goods preservation wings

* Stacking method: is the method used with goods in the form of packages or pieces, there are 2 ways of stacking: cube and pyramid

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* Method of loading goods on the shelf: For goods with many types, sizes, relatively light weight or weight within the allowable load

2.4.2, Air conditioning, humidity in the warehouse

Because unilever's goods are goods such as washing powder, call oil, toothpaste, shower gel, the appropriate temperature and humidity for these goods 1s that the warehouse must regularly ensure the temperature 1s at 180C 250C , humidity 1s about 55+45% In addition, it 1s necessary to pay attention to the issue of ventilation, ventilation, drying

2.4.3 In addition, attention must be paid to goods care and warehouse hygiene

Cargo inspection:

* Know the quantity of goods, the actual status in the warehouse

* Caring for goods accordingly

* Detect deficiencies and limitations

¢ Find out the cause and remedy

2.4.4 Prevention of insects and rodents

Preventing insects by studying, understanding the rules of operation, cleaning, checking and receiving

Prevent the use of temperature, explosive chemicals, island goods

2.4.5 Some notes with unilever

Most of the faces are washing powder, shower gel, lotion, shampoo so 1f the conditions are not guaranteed, the quality will be reduced, namely high temperature and low humidity, it is necessary to pay attention to the ventilation system wind, air conditioning

2.5 Warehouse management operations, warehouse management human resources

2.5.1 Warehouse and inventory management

Inventory usually accounts for a large proportion of the assets of the business (usually from 40% to 50%) As a result, inventory management 1s an important outcome in supply chain operations Unilever is a leading company in the consumer sector with more than 200 distributors and 3 large distribution centers in Binh Duong,

Da Nang and Bac Ninh Each distributor has at least 1 warehouse The average inventory level of the distributor is about VND 2 3.5 billion, equivalent to about 30-40 tons of goods, The total number of items traded by the distributor ranges from 100 to

250

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2.5.2 Methods and tools for inventory management

Book and record mode

Material liability regime

Inspection and inventory mode

Types of inventory management In the supply chain : Finished goods inventory

management

2.5.3 General model for distributor warehouse:

1 Warehouse type: this 1s a closed warehouse with only one door This door is used for both import and export Each warehouse will be controlled by a storekeeper

2 Warehouse structure: A simple warehouse has four surrounding walls and roof (corrugated iron or concrete)

3 Equipment operating in the warehouse: The transportation equipment in the warehouse such as forklifts, pallet trucks has fire protection systems, humidity and temperature control systems

4 Inventory management system: Using advanced warehouse management software such as SAP, Oracle, or People Soft, Unilever's DMS software to control goods as well as print import and export documents

5 Control goods automatically by barcode or RFID

6 The smallest sales unit can be cartons or packages, bottles, boxes, bags, to export the whole pallet

7 Goods in the warehouse must not be in direct contact with the soil, lined with

a layer of wood It is best to immediately use wooden pallets spread on the warehouse floor to store goods The pallet considered is a standard pallet, size 1.2 x 1m, which 1s the most commonly used type of pallet today

8 The boxes are stacked on the pallet Number of layers on the pallet according

to the manufacturer's instructions More layers can be stacked, but considering the strength of the carton, usually 3 layers should not be exceeded than specified by the manufacturer

2.5.4 Distribution center warehouse model

The distribution center of Unilever Vietnam is equipped with modern and scientific equipment and arrangement Operated by Australian logistics company Linfox (famous for logistics and logistics management systems) with Warehouse Management System control system, most of the activities in the warehouse are

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