DSC 3345 – Logistics and Distribution Management

CASE DEVELOPMENT
By group no 04

SLS Warehousing (Private) Limited

Department Of Decision Sciences

Faculty Of Management Science and Commerce
University Of Sri Jayewardenepura
September 2023

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 Group Members

CPM MC NAME
21236 98651 Kandandeniye Gedara
Nuwangi Ashinshi
Wijesena
21704 99131 Jeewandara
Mudiyanselage
Dhanushka Madhura
21723 99337 Kalu Manannalage
Dimuthu Dhananjaya
Chithrabandu
21757 99158 Kankanam Durage
Subodani Kaushalya
20986 99853 Jayawickrama arachchige
Kethaka harshamal
20773 99658 Koneswaran sajiram

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Abstract

In this assignment we study about logistics and distribution management practices by researching a real
world 3PL organization. Here we build a case based on the business model of the selected real world 3PL
organization. Accordingly, we selected SLS warehousing private limited organization for this study. This
study investigates the logistics and distribution management practices of SLS warehousing private limited,
a prominent player in the warehousing industry. We analyze the business model of the SLS warehousing
private limited organization. Not only that we study about the challenges faced, innovative solutions
implemented, and resultant outcomes achieved through strategic logistics and distribution management.
This study is really interesting for get a thorough understanding about the practical implications of logistics
and distribution management.

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 Acknowledgement

During the process of completing our group assignment, we had to seek help and guidance from our lecturer
Ms Chathurika Jayasuriya, tutor Ms. J. P. J. Madhavi and panel of lecturers of the Department of Decision
Sciences. This assignment would not have been possible without their valuable advice. We expand our
deepest gratitude to them for their splendid guidance. We would like to express our sincere gratitude to SLS
Warehousing (Private) Limited for their invaluable contributions to this case study We should also
appreciate the suggestions and the comments of our fellow batch mates which inspired us to improve the
quality of our work. We would like to take this opportunity to thank everyone who contributed to the success
of our assignment either directly or indirectly.

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 Table of Contents

INTRODUCTION....................................................................................................................................... 6
CASE STUDY ANALYSIS ........................................................................................................................ 7
- Overview of the Case Study ........................................................................................................... 7
- Background of the company & business model ........................................................................... 7
- Main customers of SLS Warehousing (Private) Limited ............................................................ 8
- Problems and challenges ................................................................................................................ 9
- Solutions to the problems ............................................................................................................. 10
CONCLUSION ......................................................................................................................................... 13
REFERENCES .......................................................................................................................................... 14

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INTRODUCTION

Third-party logistics (3PL) companies are essential to the efficient flow of goods from producers to final
consumers in the rapidly changing field of supply chain management. A well-known 3PL company, SLS
Warehousing (private) limited has achieved great success in the logistics sector by utilizing a business
strategy that is in line with the changing needs of customers and the market. This case study dives into the,
SLS warehousing third party logistics and examining how the business model of the company has
contributed to its development and profitability while maintaining a commitment to innovation,
sustainability, and customer focus.

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CASE STUDY ANALYSIS

- Overview of the Case Study

This case study examines the challenges that SLS Warehousing (Private) Limited faced on the way to
becoming the largest mechanized third-party service supplier to the Sri Lankan tea sector. It also
emphasizes the creative solutions used by the business to meet these difficulties and keep its
competitive advantage.

- Background of the company & business model

SLS Warehousing (Private) Limited considered as the largest mechanized third-party service provider to
the tea industry. With a commitment to excellence and a relentless pursuit of innovation, SLS Warehousing
has emerged as a trusted partner for businesses seeking efficient and reliable solutions to their storage and
distribution needs. The Company manages the entire export warehousing facility of leading exporters of
Sri Lankan Tea, where services also extend to: Tea collection, storage, blending, packing and transportation.

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SLSW (Storage, Blending, and Packing) SLSW oversees 150,000 square feet of covered storage space that
is furnished with 10,000 racks, and it is situated on a secure 6-acre location close to Colombo's commercial
district and port. Inside its warehouse facilities, SLS Warehousing Pvt Ltd boasts three state-of-the-art
rotary drum tea blending plants, each with a remarkable monthly blending capacity of 2 million kilos.
Alongside these cutting-edge blending facilities, the company houses a dedicated tea packaging facility,
meticulously designed laboratory, and tea sampling rooms, and employs environmentally conscious
material handling equipment. These resources collectively ensure that customers can expect nothing less
than the highest international standards of hygiene and service throughout the entire tea collection process,
culminating in the timely delivery of export goods to the bustling Port of Colombo.

- Main customers of SLS Warehousing (Private) Limited

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 - Problems and challenges

SLS Warehousing (PVT) ltd is dealing with more than 65 tea manufacturing companies, where SLS’s
main customer is a huge tea exporter Lipton Tea. Other than Lipton, SLS works with Heladiva Tea as
a third-party logistics company. Therefore, when working with large companies like these SLS should
have to maintain a large warehouse capacity and should manage them among different companies
efficiently

Also, there are some instances where customers need to blend huge order within one day. Therefore,
SLS should be able to have such facilities to fulfill sudden orders. Otherwise, those customers shift to
another 3PL company.
Tea is a product that attract smell, taste of other nearby food. It will damage the natural and required
taste and smell of the orders. So, there can be order rejects if SLS use their empty space to store other
products like spices.
SLS receives tea bags from estates. So, when they are packed there is a risk that tea is mixed with
stones, glasses etc. If those items are sent to the final customer, our agent can claim from us for any
consequences. And client’s sales will reduce which means finally SLS’s sales also reduced. And the
trust will be damaged about SLS.

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 - Solutions to the problems

They can keep 4.5 billion tea within their warehouses. They have 4 blending machines. They can
blend around 200000 tea per day. They maintain Warehouse management system that provides the
place where inventories are stored, how many units are available, what items need to be shipped
etc.

They have 4 large blending machines

and enough storage facility to satisfy the
customer requirements on time. they
provide services over 70+ companies
around Sri Lanka. For example,
Company manages the export
warehousing facility of Lipton tea's, a
leading exporter of Sri Lankan Tea.
Except of tea they also provide
warehouse facility to solar panel
company. Also, they blend the tea match
with client’s requirement they ensure
100% of production is according to the
customer.

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They Use batteries for machines since they started the company. because fuel, gas, oil is not suitable for tea
product. Tea is very attractable product and quickly absorb the things around it. Therefore, they maintain a
better condition for safe the standard of tea.

They conduct 100% inspection of raw materials before land them to the factories. They ensure that there
are no any damageable, low quality raw materials. While they identify any kind of damage materials, they
return those materials to the relevant state or manufacturer.

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 Also, the company was registered under Sri Lankan tea
board. They have GMP certification, food safety system
certification, chain of custody standard etc.
SLS warehousing is Using filters and magnetic machines
to filter the tea. They ensure there is no any non-tea items
within the inventories and they provide safety guidelines
to the employees to minimize this risk.

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CONCLUSION

In conclusion, the case study of SLS Warehousing Private Limited, highlights the crucial position
third-party logistics (3PL) firms play in the contemporary supply chain world. SLS Warehousing
has succeeded their challenges such warehouse capacity limitations, the risk of competing, and the
demand for quick order fulfillment in the tea sector. They also ensured client trust and satisfaction
by their dedication to preserving separate business operations, investment in modern facilities, strict
quality control procedures, and adherence to industry standards. SLS Warehousing is a shining
example of efficient distribution and logistics management techniques in action, demonstrating the
value of innovation and commitment to quality in the sector. SLS Warehousing keeps growing as
a trustworthy partner to its clients in the tea industry, supporting as an example for other 3PL
companies.

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REFERENCES
- SLS WAREHOUSING SOLUTIONS. (n.d.). Slswarehousing.com. Retrieved
September 24, 2023, from https://slswarehousing.com/

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