Raymond:

Design of
Warehouse
Operations
Group-5
 Our Team

Aditya Gupta Aditya Shinde Boge Rahul Yogi Sneha Kodate Priya Singh
MBA06010 MBA06013 MBA06037 MBA06063 MBA06110
Raymond Limited – India’s Leading Textile and Branded Apparel Company

● Incorporated in 1925, Raymond Limited was one of the leading integrated producers of suiting fabric in the
world.
● 60% share of the Indian worsted suiting market.
● Produced 38 million meters of high-value pure-wool, wool blended and premium polyester viscose suiting
as well as blankets and shawls.
● Raymond had a diverse product range of nearly 20,000 designs and colors of suiting fabric for every age,
occasion and style.
● Raymond had three Textile manufacturing plants, Chhindwara in Madhya Pradesh, Vapi in Gujrat and
Jalgoan in Maharashtra.
● Vapi and Chhindwara has a warehouse each located within their premise.
 Raymond: Design of Warehouse Operations

All time high

20% Under picking rates manpower
and Cancellations requirement at
5000 man days.

Chhindwara Plant, Declining Sales projected to

Nagpur Productivity grow by 40%
 Warehouse Layout

• Each Floor divided into different zones based on the location of the racks
• Total 10504 bins, 537 bins in zone C reserved for Rolled Pieces, 9967 for bold pieces
• The markets were classified according to product and customer mix.
 Storage Policy
● SKU (bundle of multiple pieces with similar specifications) were placed in bins.
● Plant stored 15,754 SKUs, encompassing 25,92,550 meters of Fabric.
 Storage Policy
● Workers scans the bin number and puts the SKU in it.
● Multiple SKUs can be put in a bin
● No system guiding storage plan
● If the bin is crammed, worker would scan the bin and puts
the material on the floor.
Inward receipt of finished goods from the folding department
● As the warehouse was situated inside the plant, all the materials were received at the warehouse from the
plant's folding unit.
● Each consignment was delivered in 'pieces’.
● A piece represented the cut and folded fabric and measured between 3 to 12 meters in length and had a
unique batch number.

At the folding area

● Scan a piece using a handheld device
● Put into 921 location in the SAP system (received from folding but not yet stored in the warehouse bin
location)
● Transfer to warehouse in a mixed trolley
At the warehouse
● Store in a bin identified by the put-away person (bin location loosely defined by the market)
● Scan the piece again using a handheld device (optional)
 Picking Process
● Just-in-time policy
● Picking done in two shifts (7:30 am
-3:30 pm and 3:30 pm to 11:30 pm)
● Approx. 2917 pieces of 12 meters each
day
● Pick-list generated from sales team
● Stock availability is not considered
when preparing pick list.
● No reservation system leading to
demand supply gap.
 Packing Process
OBD number to WMS Each bale stitched by
software and scanned hand and manually
the barcode generating a
labelled
bale number

STEP 01 STEP 02 STEP 03 STEP 04 STEP 05

Each bale Bales strapped using

Materials were sorted
sealed in machine, manually
and arranged according
weighed and send to
to OBDs(3-50 pieces) HDPE bag
dispatch for outdoor
delivery.
 Problems Persisting with current operations and its implication

WMS Software Storeage Requirements

• Good Length – 9-19 m
• Old Length - < 9 m
01
• Competency of Workman
02 • Storage Capacity 15,754 SKU
• Storage increment- 40%
• No sufficient funds

Order Cancellations
• >20% of under picking
04 03 Bin and Piece
• Coat fabric – Less space
• Overtime of 5000 man hrs • Cotton fabric – more space
• Workman – scan & attribute
• 12 days to stock audit
 Problems Persisting with current operations and its implication - Cont.

Fluctuations in inward
No Storage Plan No Picking scheduling Prone to packing errors
receipts & order picked

• Difficult to new person. • Rolled – Cylindrical. • Not considering stock availability. • Manually labelling and stencil

• Over/ Under utilization. • Just in time picking policy –order marking

• Bolt – Cuboidal.
• Cancel orders, discounts. were picked as received. • Labour intensive – time taking
• Fluctuations every day.
& prone to errors.
 SOLUTIONS

No Mix Distinguish Reduce Bolt pieces Rolled

Strategy ed Market Overcrowd – pieces –
Scenarios and waste Maximum Maximum
of material capacity 51 capacity 24

Supply Chain Management

Bin Location for each SKU & Flow of Bin towards SKU during inward
receipt

Warehouse area –
Segregate SKUs WMS identified bin
based on different location ,specfic bin
markets using WMS per SKU for each
Review bins Inward receipts and
assigned to each market
order data – monthly
SKU/Market based forecast to avoid
on monthly overstocking or
forecasted demand understocking
Improvement in Picking Efficiency

Pre planned picking

01 schedule

One person -> One

02
Market

One SKU per bin

03
 Automated Packing Process

01 02 03

Quicker Pre planned Reduction in

Packaging picking schedule Errors compared
More efficiency - Time reduction to manual
Less delay in leads to better packing
dispatching order fulfilment
orders
Warehouse Location

Easier to execute one

One Warehouse person handling demand
Location for a specific market

Warehouse
Improved efficiency in
packing process but
Warehouse-in- requires movement of
warehouse inventory to the front pick
zone based on order
forecast
 Recommended KPI’s to monitor Warehouse performance

Order Cost per Rate of Picking Fulfilment Inventory

Lead Time order Returns Accuracy Accuracy to Sales
Rates Ratio

01 02 03 04 05 06
Thank You