UNIVERSITI MALAYSIA PERLIS

FACULTY BUSINESS AND COMMUNICATION

SEMESTER 2, ACADEMIC SESSION 2023/2024

SMP32503 LOGISTIC MANAGEMENT

INDIVIDUAL ASSIGNMENT

NAME MATRIC NUMBER

GETHA A/P M. CHELLAIAH 211222357

PRERARED FOR:

MADAM NAJUWA MOHD NASIR

1
 TABLE OF CONTENT

1.0 INTRODUCTION..............................................................................................................3

2.0 CHALLENGES PROCUREMENT.................................................................................4

2.1 FORMULATES STRATEGIES OF LOGIPRO ENTERPRISE......................................5

2.2 METHODS OF IMPROVING INVENTORY VISIBILITY...........................................7

2.3 WAYS TO MANAGE COST STRATEGICALLY..........................................................8

3.0 CHALLENGES IN WAREHOUSE LOGIPRO ENTERPRISE...................................9

3.1 INEFFICIENT SPACE UTILIZATION...........................................................................9

3.2 POOR INVENTORY VISIBILITY................................................................................10

3.3 INEFFECTIVE REPLENISHMENT PROCESSES......................................................11

4.0 STRATEGIES OF WAREHOUSE.................................................................................12

4.1 STRATEGIES TO ENHANCE SPACE UTILIZATION...............................................12

4.2 METHODS OF IMPROVE INVENTORY VISIBILITY..............................................13

4.3 IMPLEMENT PROACTIVE REPLENISHMENT PROCESSES.................................15

5.0 CONCLUSION.................................................................................................................17

6.0 APENDIX..........................................................................................................................18

7.0 REFERENCES.................................................................................................................20

2
1.0 INTRODUCTION
This report covers the procurement challenges faced by LogiPro Enterprise and
outlines strategies to overcome these challenges. Additionally, it addresses warehouse
challenges and provide strategies to ease them. Procurement holds a crucial position within
LogiPro Enterprise, tasked with obtaining essential raw materials and goods necessary for its
operational activities. Beyond simple exchange, procurement significantly impact decision-
making, budget allocation, scheduling and strategic supplier relationships. Nonetheless,
LogiPro Enterprise encounters different procurement challenges separate from its warehouse
operations. One notable challenge arises from its substantial dependence on a limited number
of suppliers, resulting in a limited supplier diversity. This dependence poses potential risks
such as supply chain disruptions and reduced bargaining power which could ultimately
impact operational efficiency and financial performance.

Manual procurement methods create challenges for LogiPro Enterprise which make
things slower, cause missed chances and make it hard to communicate with suppliers. These
methods involve tasks that take a lot of time like comparing prices by hand and dealing with
paperwork. This makes it difficult for LogiPro Enterprise to react quickly to changes in the
market. Also, because orders take longer to process with manual methods. LogiPro Enterprise
might not have enough stock, leading to production delays and lost sales which ultimately
affecting LogiPro Enterprise competitiveness and financial performance.

Additionally, LogiPro Enterprise encounters difficulties in optimizing strategic costs,

as the absence of clear insight how funds are allocated and reliance on outdated financial data
delay informed decision making. This reactive strategy of managing costs exposes LogiPro
Enterprise at risk financially, making it harder to adjust to market changes and invest in
growth opportunities. Moreover, to deal with these challenges, LogiPro Enterprise can
implement different strategies which are broadening its network of suppliers through supplier
development program like “Empower and Elevate” can improve supplier variety, lower risks
and build strong relationships. Also using technology like procurement software and data
analysis tools like Microsoft Power BI can simplify procurement procedure, enhance
inventory visibility and support strategic decision making. Furthermore, LogiPro Enterprise
faces warehouse management challenges like space inefficiency, manual tracking and
ineffective replenishment methods. Solutions includes adopting a U-shaped layout, using

3
Radio Frequency Identification (RFID) and barcode technology and implementing data
driven replenishment.

2.0 CHALLENGES PROCUREMENT

Procurement is a crucial role at LogiPro Enterprise, responsible for acquiring raw
materials and goods necessary for its operations. They play an important role in decision
making, budget and schedule and also in strategic supplier relationship. Nevertheless, Logi
Pro encounter unique procurement challenges distinct from its warehouse issues.

The first challenge LogiPro Enterprise encounter due to its heavy reliance on a few
suppliers, resulting in limited supplier diversity which restricted supplier diversity can present
numerous challenges for businesses. When a company relies on a small number of suppliers
for essential materials or services, it becomes excessively dependent on the performance of
these suppliers. Any disruption on the supplier's end, whether it be a slowdown in production
or a lapse in quality control, can reverberate throughout the LogiPro Enterprise operations,
potentially leading to delays, inventory shortages, and even production halts. Also, limited
supplier diversity diminishes LogiPro Enterprise negotiating power. With only a handful of
options available, the business has reduced leverage in negotiating prices, terms, and delivery
schedules. Suppliers within a non-diverse pool recognize their advantageous position and
may be less inclined to offer competitive rates or meet the company's requirements. As a
result, this situation could strain the LogiPro Enterprise profitability and hinder its ability to
adapt to changing market conditions.

The second challenge is manual procurement processes can be a big problem for
LogiPro Enterprise. They cause problems and make it hard to take advantage of
opportunities. Sourcing new suppliers often involves physically searching through catalogs,
contacting vendors through phone calls or emails, and manually comparing prices by hand.
This takes a lot of time and makes it hard to find good deals or adjust to changes in the
market. Also, making orders gets stuck in paperwork. Writing up purchase orders, requests,
and invoices by hand can lead to mistakes and needs signatures from different departments.
This slows down approvals and makes it hard to get things delivered on time.
Communication with suppliers also hard with manual processes. Sharing order details,
tracking deliveries, and fixing mistakes all depend on calls, emails, or faxing documents. This
slow communication can cause misunderstandings, missed deadlines, and problems with
suppliers.

4
 Furthermore, these delays create significant issues. Slow or delayed order processing
can lead to insufficient inventory, resulting in production halts, missed sales, and customer
dissatisfaction. Additionally, manual processes make it challenging to monitor expenses and
identify cost-saving opportunities. Lack of real-time data makes it difficult for procurement
teams to negotiate better deals with suppliers or make more strategic purchases. As a result,
this negatively impacts a LogiPro Enterprise profitability and diminishes its competitiveness.

Third challenge is LogiPro Enterprise that fail to implement strategic cost

optimization practices expose themselves to significant financial vulnerabilities. The biggest
problem is that they can't see exactly where their money goes. They might be using outdated
financial information or have records that aren't organized well. Without a clear
understanding of where their resources are being allocated, companies struggle to make
informed decisions regarding resource allocation and cost reduction strategies. This can lead
to a cycle of wasted resources, missed opportunities for cost savings, and ultimately, a
weakened position in the competitive landscape. Moreover, without a strategic cost
management plan, companies are stuck reacting to problems instead of planning ahead. They
might face unexpected price increases from suppliers or spend more than they need to
because they can't negotiate good deals. They might also miss out on savings from buying
things in bulk or from doing their research on the best prices. This reactive approach can lead
to higher overall costs, make it harder for the company to invest in innovative ideas and grow,
and make it harder for them to adapt to changes in the market.

2.1 FORMULATES STRATEGIES OF LOGIPRO ENTERPRISE

First strategy, LogiPro Enterprise can significantly expand its network of diverse
suppliers by a good program like "Empower & Elevate" which supplier development
program can help solve these problems and make sure there are lots of strong suppliers to
choose from.

The key to a successful supplier development program is finding and evaluating

potential new suppliers from different backgrounds. This can be done by using various
methods, such as industry publications, online searches, and attending trade shows focused
on diverse businesses. Working with diversity organizations and government agencies
dedicated to supplier development can also help LogiPro Enterprise. Once LogiPro Enterprise
find potential suppliers, it's important to thoroughly assess their capabilities, quality

5
standards, and how well they fit company needs. This might include looking at their financial
statements, production facilities, and relevant certifications. By carefully evaluating
suppliers, LogiPro Enterprise can make sure they partner with ones that meet their standards
and improve the overall success of the supply chain.

Supplier development programs involve more than just discovering new suppliers.
They include actively assisting new and diverse suppliers in getting better at meeting the
company needs. This teamwork creates lasting partnerships and strengthens the entire logistic
and supply chain LogiPro Enterprise. Training sessions on quality management systems, lean
manufacturing principles, or specific technical skills related to their products or services can
significantly improve a supplier's ability to consistently provide high-quality goods and
services. Additionally, mentorship programs can pair experienced company staff with new
suppliers to offer advice and assistance. This exchange of knowledge helps new suppliers
work better and more efficiently, ultimately making the LogiPro Enterprise supply chain
more dependable and robust. Furthermore, some suppliers from LogiPro Enterprise especially
those from different backgrounds, might not have enough money or skills to compete with
bigger, well-established suppliers. To help with this problem, supplier development programs
can offer different kinds of help. For example, "Empower & Elevate" can give suppliers more
time to pay bills or help them get loans for money to use in their business. Also, they can
share technical knowledge through programs where experienced people help new suppliers,
or they can give direct help at the supplier's business place. This special help helps LogiPro
get over their first problems, get better at competing, and in the end, contribute more
effectively to the logistic and supply chain.

Moreover, new and diverse suppliers often struggle with complicated onboarding
procedures. Supplier development programs can help by making the onboarding process
simpler. This might mean offering clear communication channels, staff to help with
integration, and easier paperwork. Simplifying onboarding not only makes things easier for
new suppliers but also starts the relationship off positively. This creates an environment for
good communication and teamwork of LogiPro, which are important for building trust and
achieving long-term success with suppliers. Supplier development programs should set clear
goals for LogiPro to track progress and catch problems early. These goals might include
things like delivering on time, maintaining quality, and managing costs. It's important to
communicate regularly and work together to solve any problems. By keeping track of how

6
well things are going and dealing with possible problems early, LogiPro Enterprise can make
sure that new suppliers fit in smoothly and keep the logistic and supply chain healthy.

Supplier development programs go beyond just saving money or making short-term

deals LogiPro Enterprise. They aim to create trust and lasting bonds with different suppliers.
This means LogiPro Entreprise can talking openly, being clear about decisions, and working
together for success. When suppliers are seen as partners, it lays the groundwork for a supply
chain that works together and lasts a long time. Regular talks, planning sessions, and fair
pricing all help to build trust and a sense of shared objectives among suppliers. Lastly,
different suppliers often have new ideas and ways to solve problems. To use their skills,
supplier development program should encourage talking and working together. This might
mean having group meetings, meeting with suppliers, and having ways for feedback. By
making an environment where new ideas are welcome, LogiPro Enterprise can use the
different skills of their suppliers to find new ways to make products, improve how things are
done, and spend less money. Doing things together like this makes the supply chain stronger
and helps new ideas happen, which makes the LogiPro Enterprise better than others.

2.2 METHODS OF IMPROVING INVENTORY VISIBILITY

To overcome the challenge of manual procurement procedures, LogiPro Enterprise
can utilize various approaches to enhance automated procurement processes, resulting in
favorable effects on LogiPro Enterprise efficiency and effectiveness. The stages of purchase
requisition and approval are crucial within the procurement process and frequently subject to
inefficiencies and delays in manual system. LogiPro Enterprise can greatly enhance this
process by integrating automation. For instance, the adoption of procurement software such
as ProcureDesk enables LogiPro Enterprise stakeholders to direct their purchase request
through predefined forms or specialized supply catalog, thereby removing the requirement for
manual involvement from procurement or finance departments.

Utilizing an automated system like ProcureDesk, the request undergoes evaluations

from different departments, including departments heads, legal, security and finance. Each
departmental approver has the capability to assess and reply to the request within the system,
leading to a notable reduction in approval time. For instance, if a department of LogiPro
Entreprise needs certain equipment, software or services they can start the request using

7
ProcureDesk. This minimizing the necessity for extensive communication exchange and
ensuring timely handling of request.

Automating the process of requesting and approving purchases not only saves time
but also decreases mistakes and ensures that everyone follows the rules of the organization.
By making this important part of buying goods simpler, companies such as LogiPro
Enterprise can make their purchasing operations work better and save money. Using
procurement software like ProcureDesk shows how organizations can make their purchasing
processes more efficient and accurate.

2.3 WAYS TO MANAGE COST STRATEGICALLY

LogiPro Enterprise has the potential to transform cost management by adopting a
data-driven strategy to sourcing, driven by Microsoft's Power BI platform. This method is
different from usual ways, helping LogiPro Enterprise find hidden ways to spend less and get
better prices from suppliers.

This strategy relies on using Power BI to get important information from LogiPro
Enterprise past purchases. LogiPro Enterprise looks at what it spent money on before to find
categories where costs are high and things it buys often. Power BI changes the raw data into
easy-to-understand pictures, showing trends and unusual things. Then, the buying teams can
focus on the areas where they can save the most money. For example, Power BI might show
that one type of thing is always costing more than it should, or it might show when LogiPro
Enterprise buys the same thing from different sellers at different prices.

Empowered by these insights derived from data, LogiPro Enterprise buying team can
use their bargaining skills to get better deals. Knowing which categories and items cost a lot
lets them focus on those areas. They can use data from Power BI to help with requests for
proposals or eAuctions. By showing how much, they buy and what they've spent before,
LogiPro Enterprise can ask suppliers for lower prices. This way of using data makes LogiPro
Enterprise stronger when negotiating, helping them get better deals.

Beyond one-on-one negotiations, Power BI enables LogiPro Enterprise to take a more

strategic approach to managing supplier relationships. The platform allows LogiPro
Enterprise to categorize suppliers based on how much they spend and their importance to the
business. With this categorization, LogiPro Enterprise can customize its approach. For

8
important suppliers, Power BI data can guide collaborative discussions. By sharing
information on spending trends and performance, LogiPro Enterprise can discuss volume
discounts, longer payment terms, or bundled pricing arrangements that benefit both parties.
This helps build stronger partnerships and could result in significant cost savings. Finally,
Power BI gives LogiPro Enterprise the ability to consistently improve its sourcing strategy.
The platform enables continuous analysis of supplier performance, inventory levels, and lead
times, leading to the identification of additional opportunities to save costs. For example,
Power BI may show that certain items are rarely used but take up valuable storage space. This
insight can then be utilized to negotiate consignment inventory agreements with suppliers,
ultimately lowering LogiPro Enterprise carrying costs.

3.0 CHALLENGES IN WAREHOUSE LOGIPRO ENTERPRISE

3.1 INEFFICIENT SPACE UTILIZATION
Warehouse management includes the day-to-day activities of overseeing warehouse
operations, including receiving and organizing incoming shipments, as well as planning for
future enhancements to the system. A poorly organized warehouse undermines efficiency,
posing a considerable challenge for many businesses. According to a study by de Souza et al.
(2018) in the International Journal of Logistics Research and Applications, this challenge
shows up in three main ways which are wasted space, much crowding, and material handling
inefficiencies.

Inefficient use of warehouse space can pose significant challenges for LogiPro
Enterprise. Firstly, poorly planned layouts often result in considerable wastage of space
within warehouses. This inefficiency can stem from various factors, such as miscalculations
in aisle width, ineffective storage solutions like mismatched shelving, or disorganized
arrangement of goods. Consequently, a substantial portion of the warehouse remains unused
or underutilized, leading to higher storage costs per product unit. Moreover, this wastage
necessitates longer travel distances for personnel such as pickers and forklift operators,
thereby prolonging order fulfilment times and driving up labor expenses. Additionally, having
a disorganized warehouse makes things crowded, especially in busy areas. This makes it
harder for workers and equipment to move around safely and quickly, which could lead to
accidents or injuries. Narrow aisles, things blocking the way, and a messy traffic flow can

9
make it hard to move around. This can happen when LogiPro Enterprise workers are picking
and packing things or moving stuff between places in the warehouse.

Furthermore, suboptimal space utilization contributes to inefficiencies in material

handling processes. This results from poorly designed storage solutions and wasted space,
complicating routine tasks like picking, packing, and shipping. Workers might spend extra
time looking for things, getting through crowded areas, or going around blockages in the way.
This can significantly slow down orders, reduce overall productivity, and ultimately lead to
frustrated customers. Insufficient handling of materials raises the probability of product
damage during transportation, as items may be subjected to jostling or impact due to
congestion, ultimately resulting in financial losses and negative customer experiences. In
summary, the consequences of ineffective utilization of warehouse space LogiPro Enterprise
extend well beyond basic operational hurdles, affecting both financial expenditures and
customer satisfaction.

3.2 POOR INVENTORY VISIBILITY

For warehouses, maintaining accurate and current visibility into inventory levels is
crucial. However, LogiPro Enterprise relying on manual inventory tracking methods often
face numerous challenges, significantly impacting efficiency and profitability. These
challenges can be broadly grouped into three main areas which are inaccuracies, stockouts,
and logistical issues.

Firstly, manual inventory tracking is inherently prone to errors at LogiPro Enterprise.

This process typically involves physical counts, handwritten records, and data entry into
spreadsheets, all of which are susceptible to human error. Errors can occur during counting,
items may be overlooked, and discrepancies can arise during data transfer. These inaccuracies
distort the actual inventory levels, leading to a cascade of problems within the warehouse.

Secondly, poor inventory visibility contributes directly to stockouts at LogiPro

Enterprise. When LogiPro Enterprise warehouse lacks precise knowledge of its stock levels,
it becomes challenging to accurately predict and fulfil customer orders. This can result in
situations where the system indicates sufficient stock of an item, only for workers to find
during picking that the item is unavailable. Stockouts not only result in lost sales and
unhappy customers but also damage LogiPro Enterprise reputation for reliability.

10
 Also, manual inventory tracking methods create logistical challenges that impede
warehouse efficiency at LogiPro Enterprise. Locating specific items within the warehouse
becomes time-consuming when relying solely on manual records and physical searches. This
not only affects picking and packing processes but also disrupts workflow and increases labor
costs. Additionally, manual systems lack the ability to track inventory movement in real-time,
making it difficult to optimize storage layouts and identify issues like product expiration or
damage.

Lastly, the drawbacks of manual inventory tracking methods pose significant

challenges for LogiPro Enterprise warehouse. From inaccuracies leading to stockouts to
logistical hurdles affecting efficiency, these limitations can have a negative impact on
LogiPro Enterprise financial performance and customer satisfaction.

3.3 INEFFECTIVE REPLENISHMENT PROCESSES

In the dynamic realm of inventory management, ensuring a seamless replenishment
process is crucial for maintaining stocked shelves and keeping customers satisfied.
Unfortunately, LogiPro Enterprise struggle with inefficient restocking methods, causing a
heap of problems. These issues come from reacting to problems instead of planning ahead
and show up in two main ways which having too much of slow-selling items and shortages of
high-demand products.

The initial major challenge involves in LogiPro Enterprise is the buildup of surplus
inventory, particularly for items with slow sales. When LogiPro Enterprise restock reactively,
they rely heavily on outdated sales data or simple reorder points, without considering crucial
factors affecting demand. Seasonal shifts, unexpected increases in popularity, or changes in
customer preferences are completely disregarded. As a result, LogiPro Enterprise warehouses
become congested with slow-moving items that stay for long periods, using up valuable space
and tying up significant financial resources. This leads to two main outcomes which firstly,
the available space for high-demand products decreases, potentially impacting the ability to
meet customer demands. Secondly, the slow-moving inventory itself becomes a financial
burden. The longer it remains, the higher the risk of product redundancy. Outdated items then
need to be discounted for sale or may face being written off entirely as losses.

The second major challenge is the occurrence of stockouts at LogiPro Enterprise,

which happens when high-demand products are not available due to delayed restocking. This

11
situation can arise for various reasons. One primary factor is inaccurate demand forecasting,
where LogiPro Enterprise underestimate product sales, resulting in insufficient stock to meet
customer demand. Furthermore, delays in receiving shipments from suppliers can disrupt the
restocking process, leading to stockouts even when forecasting seems adequate. Another
significant contributor to stockouts is the lack of real-time visibility into inventory. LogiPro
Enterprise warehouse that rely solely on manual inventory tracking methods often lack the
precision required to accurately monitor inventory movement. This can result in
discrepancies between perceived and actual inventory levels, causing stockouts despite the
presence of stock in the warehouse. The consequences of stockouts go beyond just unsatisfied
customers. Missed sales directly affect the LogiPro Enterprise profits. Also, if customers can't
rely on getting what they want, they might not trust the LogiPro Enterprise as much and
might look for other places to buy from.

4.0 STRATEGIES OF WAREHOUSE

4.1 STRATEGIES TO ENHANCE SPACE UTILIZATION
The first strategy to improve space utilization within LogiPro Enterprise is implement
U-shape warehouse layout which the layout of a warehouse in a U-shape strategically
optimizes space usage, reduces congestion, and enhances efficiency in handling materials. It
maximizes the use of space by placing receiving at one end and shipping at the other, making
the central section ideal for storing high demand and swiftly moving inventory. This
promotes efficient organization, reducing unused space in aisles and corners. Additionally,
vertical storage solutions such as pallet racking can be fully utilized along the legs of the "U,"
enhancing the total available storage capacity.

Also, the design helps goods move smoothly at LogiPro Enterprise. Workers unload
products at one end, then they go to storage or processing in the middle. After that, the picked
items move towards packing and shipping at the other end. This one-direction flow prevents
going back and congestion, keeping materials moving smoothly in the warehouse.
Additionally, there's a big improvement in how materials are handled efficiently. By
strategically positioning inventory and setting up specific areas for receiving, picking,
packing, and shipping, the distance workers and equipment need to travel is minimized. This
results in quicker picking, lower labor expenses, and an overall increase in efficiency in
handling materials.

12
 Furthermore, the U-shaped design offers clear views across the warehouse floor,
improving supervision. This enables quicker detection of possible congestion points and
better oversight of picking and packing operations. Moreover, the design is flexible and can
grow or change as needed. The middle part can be divided for extra services or assembling
tasks. Moreover, it's easy to expand the legs of the "U" to handle more inventory or future
growth. Using a U-shaped warehouse layout can help LogiPro Enterprise establish a more
efficient, orderly, and productive workspace. This results in lower operational expenses,
enhanced customer satisfaction due to quicker order processing, and a competitive edge in the
challenging logistics industry of today.

4.2 METHODS OF IMPROVE INVENTORY VISIBILITY

Implementing Radio Frequency Identification (RFID) and barcode technology
presents powerful solutions to enhance inventory visibility and streamline inventory
management processes. These technologies provide real-time tracking and monitoring
capabilities, enabling LogiPro Enterprise to efficiently manage their inventory levels and
locations.

Incorporate LogiPro Enterprise inventory with barcodes to enable live tracking across
the entire supply chain process. Each scan, from receiving and storing to picking, packing,
and shipping, provides important information, enabling the LogiPro Enterprise to accurately
determine the where abouts and quantity of any item in the warehouse at any given moment.
This eliminates the need for manual counting, which is susceptible to errors, and provides a
comprehensive overview of inventory levels, thus reducing the likelihood of both stockouts
and overstocking. Also, the immediate visibility of inventory through barcodes considerably
improves the efficiency of order fulfillment. LogiPro Enterprise staff members can quickly
scan product barcodes during the picking process to confirm the accuracy of selections and
ensure the correct items are chosen for each order. This reduces errors in picking and delays
in fulfilling orders, leading to a smoother and more satisfactory customer experience.

Manual inventory management methods are vulnerable to mistakes made by humans,

leading to incorrect stock levels and differences. By using barcodes, data collection is
automated, decreasing the chance of errors. Every scan gives accurate details, allowing
LogiPro Enterprise have a clear grasp of inventory levels and monitor product movement
with precision. This reduces the possibility of errors and differences, resulting in a more
reliable and effective inventory management system. Moreover, barcode technology provides

13
valuable information for making informed decisions. By analyzing scan data, LogiPro
Enterprise recognize trends in demand and patterns of product movement. This enables
LogiPro Enterprise to improve the ordering process and maintain appropriate stock levels to
meet customer needs. Additionally, identifying slow-selling items helps adjust purchasing
strategies, reducing the risk of holding excess inventory and associated costs.

On the other hand, Radio Frequency Identification (RFID) technology presents a

robust solution, revolutionizing inventory management practices for LogiPro Enterprise.
Radio Frequency Identification (RFID) tags transmit data wirelessly, enabling instant
inventory tracking across the warehouse, unlike barcodes that require direct scanning. This
enables accurate identification of item location and quantity, irrespective of their placement
within shelves, bins, or behind metal containers. The automated, uninterrupted tracking
eliminates the need for manual counting, thereby substantially decreasing human error and
offering current insights into inventory levels. Consequently, this helps mitigate the risks
associated with stockouts and overstocking. Additionally, Radio Frequency Identification
(RFID) technology improves the picking process by enabling warehouse staff to quickly find
items. With Radio Frequency Identification (RFID) scanners, LogiPro Enterprise staff can
accurately identify item locations, streamlining picking tasks. This reduces picking errors,
decreases time spent searching for items, and enables batch picking of multiple orders
simultaneously, thereby improving overall efficiency. Integrating Radio Frequency
Identification (RFID) data with Warehouse Management Systems (WMS) automates the
generation of picking lists and optimizes routes based on real-time inventory location, further
enhancing efficiency and minimizing errors.

Moreover, manual inventory counts are susceptible to inconsistencies as a result of

human error. Radio Frequency Identification (RFID) technology addresses this issue by
automating data capture, guaranteeing precise monitoring of inventory movement and
eliminating the potential for human error. This fosters a dependable and effective inventory
management system, reducing discrepancies and offering an accurate overview of current
stock levels. Furthermore, Radio Frequency Identification (RFID) technology enables
transitioning from conducting comprehensive warehouse counts to conducting more frequent,
targeted cycle counting. By concentrating on particular sections or valuable items, cycle
counting offers a more efficient and precise method for verifying inventory levels. Radio
Frequency Identification (RFID) enables swift and accurate confirmation of on-hand stock

14
during cycle counts. This minimizes interruptions to warehouse operations while providing a
more defined understanding of inventory accuracy.

Radio Frequency Identification (RFID) tags have the capability to incorporate

additional features beyond simply tracking location and quantity. These tags can include
security attributes, activating alarms in the event of unauthorized access or attempted removal
from designated areas. This supplementary security measure serves to discourage theft and
unauthorized handling of inventory, thereby reducing losses and safeguarding valuable assets
within the warehouse of LogiPro Enterprise. Lastly, Radio Frequency Identification (RFID)
technology produces a substantial amount of valuable data regarding inventory movement
within the warehouse. Through analysis of this data, businesses can acquire valuable insights
into patterns of demand, product lifecycles, and optimal stock levels. This data-centric
approach enables improved forecasting, demand planning, and purchasing decisions, thereby
reducing the likelihood of overstocking and ensuring adequate inventory to fulfill customer
requirements. Also, Radio Frequency Identification (RFID) data identifies warehouse
congestion, aiding workflow optimization and inventory management improvement.

4.3 IMPLEMENT PROACTIVE REPLENISHMENT PROCESSES

The traditional static warehouse, dependent on manual procedures and speculation, is
transitioning towards a future driven by data. Warehouse management systems are
progressing into proactive decision-making tools, utilizing data analytics and predictive
techniques to execute intelligent replenishment procedures. This change will improve how we
manage inventory by preventing shortages and having too much stock, while also making
warehouses work better.

Real-time visibility of inventory is fundamental to this transformation. Warehouse

management systems equipped with strong data tracking capabilities serve as the core
operating system. Integration with point-of-sale (POS) systems guarantees immediate updates
on stock levels as soon as a product is sold, eliminating dependence on outdated data and
facilitating informed decision-making regarding replenishment requirements. Additionally,
historical sales data, instead of remaining same, now functions as a foundation for forecasting
future demand. The Warehouse Management System utilizes data analytics and machine
learning algorithms to analyze sales patterns, seasonal fluctuations, and promotional
activities. These insights empower the system to forecast future requirements with

15
remarkable accuracy, enabling warehouses to anticipate surges in demand and place orders
well in advance of inventory depletion.

In the past, manual calculations and guesswork were used to determine reorder points,
but now, the Warehouse Management System automatically calculates optimal reorder points
for each item by analyzing historical sales data and lead times. When inventory levels fall
below the set reorder point, the system automatically initiates replenishment orders, ensuring
a continuous flow of goods into the warehouse. Moreover, using a single approach for
inventory management leads to inefficiency. Instead, the Warehouse Management System
utilizes statistical models such as ABC analysis to classify inventory according to value and
demand. This enables high-value, fast-moving items to have lower reorder points and more
frequent replenishment, while less valuable, slow-moving items can operate with higher
reorder points and less frequent ordering. This data-driven method ensures ideal stock levels
for each product category, reducing both overstocking and stockouts.

Despite the precision of forecasts, unexpected occurrences such as increase in demand

or disruption in the supply chain can cause disruptions. In response, the Warehouse
Management System modifies safety stock levels employing data analytics. Through the
analysis of historical fluctuations in demand, the system sets buffer stock to mitigate
unforeseen circumstances, thus preventing stockouts and minimizing unnecessary holding
expenses. Also, proactive replenishment goes beyond the boundaries of warehouses through
integration with supplier inventory systems, offering real-time insight into supplier stock
levels for comprehensive inventory management. This integration facilitates the optimization
of allocation across the entire supply chain and enables the proactive identification and
resolution of potential stockouts at supplier locations. As a result, a continuous flow of goods
into the warehouse is ensured, maintaining operational efficiency.

The smartest way to avoid problems in the supply chain is to think about what could
go wrong beforehand. Warehouse computer systems, loaded with data, can help plan for
different situations. This lets the system see how things might play out if there's a delay from
a supplier or a sudden jump in customer orders. By pretending these situations happen,
warehouses can make backup plans and adjust how they order stock. This way, they can
avoid problems and keep the supply chain running smoothly. Lastly, data analytics not only
informs decisions but also fosters continuous improvement. The Warehouse Management
System is capable of evaluating the efficacy of implemented strategies. Through monitoring

16
metrics such as stockout rates, order fulfillment durations, and inventory carrying expenses,
the system can pinpoint areas requiring enhancement. This system, based on data, makes sure
that proactive replenishment processes can change and react to what the market needs as it
changes.

5.0 CONCLUSION
In a nutshell, LogiPro Enterprise faces various challenges in procurement and
warehouse management, including limited supplier diversity and manual inventory tracking.
However, implementing strategic solutions like supplier development programs and
technology adoption can effectively addresses these issues. Utilizing strategies like U-shaped
warehouse layout and Radio Frequency Identification (RFID) technology can further
optimize operations and ensure efficient inventory management. By adopting these proactive
measures and leverage data analytics. As a result, LogiPro Enterprise can overcome current
challenges and achieve long term success and growth in the logistic industry.

17
6.0 APENDIX

U-shape warehouse layout

18
Warehouse Management System

Barcode scanner

19
7.0 REFERENCES
1. Oracle. (2023, September 21). What is ERP? https://www.oracle.com/erp/what-is-erp
2. ScienceDirect.com | Science, health and medical journals, full text articles and books.
(n.d.).https://www.sciencedirect.com/?
ref=pdf_download&fr=RR11&rr=8785ed37abde7554
3. Pradhan, S. K., & Routroy, S. (2018). Improving supply chain performance by
Supplier Development program through enhanced visibility. Materials Today:
Proceedings, 5(2), 3629–3638. https://doi.org/10.1016/j.matpr.2017.11.613
4. Team, I. (2022, October 19). What is Supplier Development, and Why is it So
Important? Insight Quality Services. https://insight-quality.com/what-is-supplier-
development/
5. David. (2022, April 14). How supplier development programs strengthen your supply
base. Now. https://nowcorp.com/supplier-development/
6. Benton, W. C., Prahinski, C., & Fan, Y. (2020). The influence of supplier development
programs on supplier performance. International Journal of Production Economics,
230, 107793. https://doi.org/10.1016/j.ijpe.2020.107793
7. What is a Warehouse Management System (WMS)? | SAP. (n.d.). SAP.
https://www.sap.com/sea/products/scm/extended-warehouse-management/what-is-a-
wms.html

20
8. What is a Warehouse Management System (WMS)? | SAP. (n.d.). SAP.
https://www.sap.com/sea/products/scm/extended-warehouse-management/what-is-a-
wms.html
9. Kirvan, P., & O’Donnell, J. (2024, March 19). warehouse management system
(WMS). ERP. https://www.techtarget.com/searcherp/definition/warehouse-
management-system-WMS
10. REB Storage Systems International. (2016, April 29). Warehouse Layout & Product
Flow Options | Total Warehouse Tutorials with REB [Video]. YouTube.
https://www.youtube.com/watch?v=0OeStxbzKsM
11. u- shaped layout warehouse - Google Search. (n.d.-b).
https://www.google.com/search?sca_esv=f65ab4fb82876b19&q=u-
+shaped+layout+warehouse&tbm=vid&source=lnms&prmd=isvmnbtz&sa=X&ved=
2ahUKEwiIk5Ov99WFAxVsZmwGHeYmBbEQ0pQJegQIDhAB&biw=1536&bih=7
30&dpr=1.25#fpstate=ive&vld=cid:87037642,vid:Db0GdHjDgQU,st:0

21