Cold Chain Network which is also known as “CCN”, is a 3PL (3rd Party Logistics) company where it handles logistics and also warehousing facility and as a distribution centre. The more-known customers of CCN are Mydin, Jaya Jusco, TESCO, Cold Storage, Burger King, Sime Darby and etc. In CCN, it has multi-temperate warehouses, equipped with warehouse management system (WMS) to accommodate a wide variety of warehouse and inventory management requirements.
Customers can be very demanding in terms of handling their buffer stocks. We secure, negotiate, reorder, and manage inventory on behalf of our customers according to their needs, while minimizing costs. We are capable of customising design, implementation and managing a supply chain solution, customised to a client’s requirements. CCN’s management has worked closely with many top international and domestic companies in the design, processing and packaging to tailor-suit individual client’s specific needs.
Services Offered – Warehousing – Procurement – Logistic Management Services – Contract Processing and Packaging Management Services Partnership Recently, CCN is acquired as a 3PL Logistics Company by MAFC (Malaysian Agrifood Corporation) to handle its vegetable distribution operations from its Collection centre’s which then transits at the CCN distribution centre in Puchong, then is being distributed to clients all over the country. This partnership is essential and has proven to cut operations costs in terms of handling, and transport costs since they are operating in the same building since shifting from separate offices in Balakong for CCN and KL Sentral Plaza for MAFC.
Focus Operations process at CCN “Operations strategy is the total pattern of decisions and actions which set the role, objectives and activities of the operation so that they contribute to and support the organization’s business strategy” Description At CCN, operations revolves around receiving (inbound), shipping (outgoing), packing, and also transportation (logistics) processes. The main focus of this assignment is to describe the strategies being used at each of this processes that can impact the organizations competitive or effectiveness priorities.
The focus also would be how the strategies benefit the customers in terms of the 5 operations management objectives: – quality, speed, dependability, flexibility, and cost. CCN mainly looks at KPI to measure its standards compared to the other competitors in the market. Operations Management Objectives Operations management can be described by the objectives it is trying to achieve. By addressing and describing the objectives and its strategies, it can basically differentiate the impact it has on the organization.
1. QUALITY In warehousing operations, quality is measured by how fast the picking is done, not much in discrepancies with the actual weight and quantity if the item consisting of vegetables and wet consumables as there might be weight shrinkages. Quality is a broad area to cover in terms of warehousing as quality involves speed, dependability and also cost. Operations Strategies In achieving quality for warehousing operations at CCN, there are a few factors and strategies that have been applied by the organisation to enhance performance.
Mistake proof At operations level, mistakes can happen in terms human ignorance and error thus not helping the cause of performance for the organisation. Steps have been taken to cut down mistakes done while in operation to improve time and also cut operating costs. Delegation of teams By having separate teams to handle operations with team leaders coordinating their teams to handle different types of items and areas in the warehouse. For example, a big warehouse that runs 24 hours 7 days a week needs multiple teams at one particular shift to actually finish both inbound and outbound processes for one day.
Customer influence At CCN, customer really influences on decision making by the operations manager in terms of picking time and priority. For example, TCB also known as Transfer Centre’s that cater for items to be distributed to the entire nation, requests that deliveries made by CCN must never ever be late as deliveries will be rejected entirely if it is not on time. Thus, TCB orders must be fulfilled first compared to the rest of the customers. In CCN, these orders are considered as URGENT and the others are regarded as IMPORTANT but not URGENT.
Qualifying for the customer This might be touching the flexibility objective; however, certain customers have their own level of standard in order to be able to do logistics and operations for them. These levels of standard could vary from measuring variables, for example, speed, flexibility, or operations costs. Implementation To achieve a certain level of quality in warehouses, steps taken by CCN:- The hiring and implementation of supervisors to supervise operation processes is essential to achieving a high level of quality in warehouses. Without supervisors, coordinators and the receiving clerks’ quality of work will not be up to standard and this has been proven from time to time at the warehouse.
For example, the receiving clerk at times could not make a decision by himself/herself in terms of putaway locations as there is not enough locations at the designated areas for certain category of items. Supervisors’ in-charge for the shift has to take responsibility in making decisions such as these in order to maintain quality and not allowing warehouse workers to take matters into their own hands.
Another issue that was addressed is to re-weigh wet items in order to cut down irregularities in terms of weight differences before and after transfer from the farm. In CCN warehousing operations, usually there is one team leader who has 3 workers to coordinate which is the receiving clerk, the coordinator, and the ridge truck driver. In one particular shift, there is one shift leader who is responsible to ensure everything runs smoothly during the shift. Team leaders will report to him regarding issues such as irregularities in quantity whether over-receive or short-receive and etc.
In order to make customers feel appreciated and important, locations or racking locations within the warehouse are designated specifically for them when contracts are signed. In CCN, we even have different temperatures to cater for different types of foodstuffs. For example, Room C has temperatures as low as -30 Celsius for frozen food where else Room B is only at 10 Celsius to cater for vegetables. This is done so that Tesco Frozen can have their own area where else MAFC will be able to have their own rooms for their vegetables.