Lineage Logistics Group 8

A211 BPMG 3113 WAREHOUSING MANAGEMENT

GROUP B

GROUP ASSIGNMENT 2

SUBMITTED TO: DR. HERMAN SHAH BIN ANUAR

SUBMITTED BY:

Ali Abid Ibtisamah binti Hussin Yap Ka Yang Chung Wei Qi Nitianandan Jayashanker Siti Aisyah Binti Malik

260519 264190 269933 271266 272410 273130

1.0 COMPANY OVERVIEW Lineage Logistics is an international warehousing and logistics management company and an industrial real estate investment trust (REIT) owned by Bay Grove, LLC. Entering international markets in 2017, it grew into the world's largest refrigerated warehousing company, acquiring, by 2021, 72 other cold-chain storage companies and handling more than eight percent of the global food supply. Lineage operates over 350 facilities with over 17,000 employees in 15 countries across North America, South America, Europe, Asia, Australia and New Zealand. The company was founded in April 2012 by former Morgan Stanley investment bankers Kevin Marchetti and Adam Forste, who formed Bay Grove Capital, LLC, through the consolidation of acquired warehousing and logistics companies beginning, in December 2008, with the purchase of Seafreeze from Toyo Susian Kaisha. The company then acquired CityIce, in 2009, and Flint River Services, in 2010, followed, in 2011, by Terminal Freezers of Santa Maria, California, and Richmond Cold Storage, purchased from Atlanta Equity; founded in 1907 in Richmond, Virginia, the latter then become its earliest predecessor company. Lineage Logistics was formed with the fifth-largest network of temperature-controlled warehouse facilities in North America, according to International Association of Refrigerated Warehouses (IARW) rankings, with 40 facilities in eight states, including near international ports at Savannah, Georgia, Seattle, Washington and Norfolk, Virginia; warehouse management; consulting; and food processing support. Lineage Logistics is headquartered in Novi, Michigan, with offices in San Francisco, California; Irvine, California; Omaha, Nebraska; and Richmond, Virginia. It operates about 223 facilities in North America, including in 35 U.S. states, and warehouses in Australia, Belgium, China, Denmark, the Netherlands, New Zealand, Norway, Peru, Poland, Spain, Sri Lanka, the United Kingdom, and Vietnam. Its distribution centers include services such as blast freezing of perishable goods.

Lineage customers include Walmart, Tyson, and McDonalds. In 2018, Lineage redesigned warehouse racks to store 25% to 40% more product in the same amount of space.

Vision: To be the world's most dynamic temperature-controlled logistics company.

We are reimagining the world’s food supply chain by preserving, protecting, and optimizing the distribution of food. Innovative technology, streamlined operations and a global network of facilities combine to form one of the world's most dynamic companies in temperature-controlled logistics. We are Lineage, and we help feed the world.

1

Mission : A legacy of cold storage expertise.

From our start as a single warehouse location in 2008, we have welcomed some of the most prestigious and respected cold storage companies into the Lineage family. Together, we are an organization that is deeply rooted in generations of cold storage expertise.

2.0 INBOUND ACTIVITIES Receiving Receiving is the first and most important step in the warehousing process. The warehouse must be able to check that the product, amount, condition, and time received are right in order to complete the acceptance process successfully. Otherwise, all following activities will be impacted in the same way. Receiving also entails transferring ownership of the commodities to the storehouse. As a result, the warehouse is in charge of ensuring that the items are in good condition prior to dispatch. Receiving the goods correctly allows you to filter out the damaged items and avoid liabilities. The warehouse should be able to prove that it has received the right goods in the right quantity, in the right condition, and at the right time since Lineage Logistics will handle the acceptance process effectively.

Quality Control A business's quality control (QC) procedure strives to ensure that product quality is maintained or enhanced. Quality control necessitates the establishment of a culture in which management and employees strive for perfection. This is accomplished by educating employees, establishing product quality goals, and testing products for statistically significant differences. The creation of well-defined controls is an important part of quality control. These controls aid in the standardisation of both production and quality-control responses. Limiting the margin for error by identifying which production activities are to be accomplished by which workers decreases the risk of employees being assigned tasks for which they are unprepared.

The major purpose of the Lineage Logistics food supply chain is to preserve fundamental compliance across the whole food journey. Following that, businesses must determine whether to just fulfil the basic requirements or to go above and beyond, implementing best-in-class methods for combining quality and efficiency in food safety. Best-in-class procedures are enabled by automation in both decision-making and material management. Computers can make decisions based on more factors and information than a human can, and they can be traced in a way that human decisions cannot. Automated material handling systems place the pallet exactly where the control systems instruct it; a pallet placed by a robot has no chance of being lost. Automation eliminates human mistake, allowing you to concentrate on improving quality. Understanding thermodynamics, biology, and our customers' products is necessary for maximising quality. Data gathering, analysis, and automation ensure that consumers have access to the finest quality food while also exceeding industry standards.

Put Away

2

All warehouse activities that occur between getting a supply of goods from a vendor and having it all stored away in racks and shelves in your warehouse are referred to as put away. Placing a purchase order with your vendor is the first step in a normal put away process. You can begin putting the products away in their designated areas after you get the supply and complete the appropriate quality inspections. Let's look at how put away can help a warehouse and the many put away options that are available. Lineage Logistics will install the product in an appropriate storage area using a forklift or pallet jack. The goods are properly situated, and there are other advantages, for example. Faster and more efficient cargo storage, reduced trip time, assuring the safety of goods and workers, maximising warehouse space use, and making it easier and faster to locate, track, and retrieve stuff.

Storage The process of placing things in the most appropriate storage area in a warehouse is known as storage. The storage procedure, if done effectively, may make maximum use of the warehouse's available space while also increasing worker efficiency. To assist you and your clients, Lineage manages a network of sophisticated, strategically positioned cold storage facilities. We know how to keep your temperature-controlled items safe, whether your activities are domestic or worldwide.

Lineage specialises in securely storing proteins, bread products, dairy, fruits, and vegetables. Our unique warehouse management solutions ensure that your products arrive on time and that you have the visibility you need along the journey. Temperature control, blast freezing, rail and port facilities are just a few of Lineage's capabilities.

3.0 OUTBOUND ACTIVITIES Outbound activities are associated with customer service and distribution channels (Kelesovska, 2020). Outbound activities are those that deal with the management, sale, and transportation of finished goods to end-users. The Lineage Logistics company's outbound activity phase included warehousing and storage, distribution, transportation, and final delivery. The Outbound of Lineage Logistics builds a connection between their products and consumers around the world.

The picking stage is critical for Lineage Logistics because the goods will be separated based on the location of the end user. Picking is a warehouse process that has a significant impact on the productivity and capacity of the Lineage Logistics supply chain. Lineage Logistics warehouse workers must use a variety of material handling equipment for the various types of goods stored in each facility. Warehouses would be divided into zones based on whether the picking activity is human or automated. According to Cocozza (2019), walking and manually picking orders can account for more than 50% of the total time spent picking. Lineage Logistics employs self-driving layer pickers. Prior to the incorporation of automation into the rainbow pallet-building process, a worker would drag a pallet through a warehouse and manually pull every single box from source pallets. With the addition of automated layer pickers, a facility can automate up to 96 percent of the volume shipped through the warehouse. Lineage Logistics is automating high-throughput areas of the warehouse. Lineage Logistics is also installing a layer picker machine and multiple automated guided vehicles (AGVs) to reduce the amount of labour involved in the picking process.

Although the layer pickers and AGVs will be part of the overall inbound and outbound product 3

flow, truck loading and unloading will still be done by humans on material handling equipment.

AGVs will retrieve inbound pallets from their dock's staging areas, place and pull pallets into and out of racking, feed the layer picker with the necessary product, and place outbound pallets in their dock's staging areas. The layer picker will help to alleviate the stress caused by volatile labour markets and fluctuating consumer demands.

Next, the goods will be routed to the sorting stage, which will optimize the material flow for maximum efficiency. Sortation and warehouse automation play a significant role in increasing the efficiency of any order fulfilment or materials handling operation, owing to the fact that sortation touches every aspect of what we do (Cocozza, 2019). Efficiency allows for cost savings on materials and labour; it allows for the processing of as many orders as possible during the day; and it also allows for the production of more goods and the shipment of them to more customers. All of this efficiency has a direct impact on the bottom line: the more efficient you are, the more profitable you are. Lineage Logistics sorting stage can observe the flow of items in and out of the warehouse as well as the placement of items in their final positions in the warehouse to be set down. The company's sorting method is an automated material handling system comprised of several conveyors, a wide variety of sorting machines, and various types of devices. All goods placed inside the storage area will be placed on conveyors, which will be sorted according to each specific order. Furthermore, the use of warehouse, transportation, and yard management systems, in conjunction with radio frequency identification (RFID), provide accurate and timely insights into the status, performance, and safety of your cold chain from origin to destination. So, employees can then concentrate on ensuring that the goods are sorted in accordance with the customer orders.

Packing is the next critical step before shipping the goods to the end-user. The equipment used in sorting differs slightly from that used in picking by only using a basket to sort the order, but packaging typically employs several pieces of equipment. Lineage Logistics uses cutting-edge packaging equipment to meet the needs of the most discerning retail and foodservice customers.

In addition, their quality control team meticulously monitors and records all stages of the operation to ensure that customer specifications are met. Lineage's warehousing services, in conjunction with their packaging operations, create significant supply chain efficiencies while also lowering customer total production and distribution costs. Apart from that, the warehouse packaging system must ensure that the goods are securely stored and packed, as well as assist workers in detecting and quickly correcting manufacturing defects before they are delivered to the end customer. This demonstrates that the warehouse's primary role in packaging goods is to mitigate damage caused by shipment or handling after the goods leave the warehouse. Workers assigned at this stage are in charge of wrapping the goods and inspecting their condition before shipping them.

The final step is shipping, which ensures that end customers receive the goods they ordered. Every shipment will be labelled with a consignment number as a reference to both the customer and the warehouse. Since the Lineage Logistics' products ship worldwide, there are a few steps and regulations that the company must follow before shipping their goods. If the goods must be shipped internationally, the worker must ensure that they can be shipped in the manner intended. A number of factors influence which goods are exported to other countries and who may accept such shipments. It is critical to complete product selection and documentation prior to shipping. Getting a shipping app allows workers and end customers to access critical shipping details on the go while they are in a hurry and know the location of the goods. Lineage has the scale and experience expertise (import/export and customs brokerage expertise) to get the product from point A to point 4

B, whether they are picking it up or delivering it. However, regardless of the distance or mode of transportation used across land or sea, Lineage will get the product to its destination safely, efficiently, and on time. LTL consolidation is similar to freight ride-sharing. By combining shipments and getting products on their way, Lineage LTL Consolidation saves on the high cost of less-than-truckload and missed delivery windows.

4.0 REVERSE LOGISTICS ACTIVITIES Lineage Logistics adopt a successful reverse logistics strategy can profit from a variety of advantages. The companies will be able to cut expenses by list scheduling for returns and ensuring the return sequence is correct such as cost of transportation, administration, shipping and so on. A faster service considers the original carriage of products as well as the refund or restore of the goods. If the companies handle the errors wisely may bring a result of customer retention because mistakes in fulfilment can lead to educational possibilities. A good reverse logistics program can assist companies to alleviate the losses and unplanned profits through repairing and refilling the item, scrapping it for parts, or reusing it on the secondary market are all options.

In the event of faulty items, the companies will substitute the products or provide comparable goods and pay the related cost on it to satisfy customers’ buying experience and maintain the good reputation in the market. If the problem of defective services occurs, Lineage Logistics have to provide the services once more and bear the costs of re-supplying the services. A 30 days of return goods services are provided by the companies which enable consumers to obtain a refund or free return of the origin items, but this action requires the customers to fill up the e-form listed in the Lineage Logistics websites or directly dial to the customer service with 1-800-678-7271.

Lineage Foundation for Good has been established in 2021 to eradicate the issue of food waste and assist feed the world by collaborating with Feeding America, Global FoodBanking Network and different further minded people and corporations to speed up the effectiveness of the result.

The Foundation aims to establish a continuous relationship between food producers and people truly needy, allowing for the distribution of safe, high-quality food that would otherwise go to waste. It serves as a conduit for Lineage's experience and industry standards to be shared with the non-profit collaborators, allowing them to strengthen the ability to acquire and preserve food in the most efficient way possible.

5.0 SAFETY AND SECURITY ASPECTS Maintaining a safe and healthy workplace Lineage logistics emphasizes safety as a key value and would never prioritise it for other organisational goals. A healthy workplace environment is important to Lineage, and it is a priority for the company. Lineage's safety rules, protocols, and training are all focused at ensuring the safety and security of everyone who enters their premises, including its employees, guests, vendors, and anybody else who may be in the area. As a condition of employment, Lineage team members must adhere to the company's safety standards and regulations to ensure when on company property or conducting company activity. Clients' safety protocols must also be followed by colleagues operating on-site. It is a violation of Lineage's health and safety policies to ignore 5

these regulations, perform tasks with proper guidance, or engage in any other behaviour that puts the safety of others or the reputation of Lineage at danger. It is the duty of every Co - worker to notify Lineage promptly of any incidents, fatalities, or dangerous situations, and any other infringement against Lineage programmes, rules, or procedures. It is possible to make these kinds of reports directly to a manager, Staff, or the Environmental Health & Safety Division.

In accordance with the Food Safety Modernization Act, each Lineage adheres to the rules of the FDA, USDA, state and municipal regulatory agencies. For a good reason, the most important value at Lineage is safety. Lineage are proud of its role as caretakers of the global food supply chain, and the safety of our employees and the products of the clients is essential if we are to guarantee that high-quality food is served to people throughout the world. The number one riority for Lineage is ensuring that each day all colleagues who work for Lineage get back from work without being injured, global pandemic or not. It was clear to u as COVID-19 began to spread throughout the globe, Lineage act immediately to ensure the safety of the employees and preserve operating continuity at its more than 300 locations scattered across 12 nations. Most companies stopped all travel and asked anyone who could do their job from home to do so, but Lineage needed a strategy to protect its 15,000 essential employees, whom are working diligently to preserve the global food supply moving while shelves in grocery stores were being cleared at an alarming rate.

Additionally, Lineage collaborated closely with an IGHID specialist to ensure their reaction was world-class and produced a COVID-19 strategy that they carried out across all of their facilities in less than a week. In order to keep up with best practises and the most recent technology, their COVID-19 action plan addressed a few crucial policies: Bulk Material Handling Equipment, Moving a large quantity of things in your warehouse efficiently requires moving them in bulk. Increasing the number of things you can move through your warehouse at one time can improve its efficiency. These pieces of gear will make it possible for you to accomplish that goal such as Conveyor belts, stack, reclaimers, bucket elevators, grain elevators, hoppers and silos.

6.0 MHE AND OTHER FACILITIES IN WAREHOUSE Material handling operations include moving, storing, controlling, and protecting commodities inside and between facilities, such as industrial plants, warehouses, and supply chains. Material handling generally consumes resources (people, money, facilities, and equipment) rather than saving them. Material handling should thus offer value to the material and benefit the process as a whole. Furthermore, in an industrial manufacturing business, material handling may account for 25% of all employees, 55% of all office space, 87% of production time, and 15% to 75% of total product cost. Material handling is strongly tied to warehouse operations. Loading, unloading , transporting, and choosing materials are major tasks. Material Handling Equipment (MHE) is necessary to correctly handle material and offer value to the material, operator, and environment.

The selection of appropriate MHEs is complex and involves multi-criteria and multi-object ive decision making. An industrial truck is a vehicle used in material handling. These might be little hand trucks or vehicle lifts. These are the most frequent industrial trucks in warehouses; Hand trucks, Pallet jacks, Walkie stackers, Platform trucks, Order picker, Side loader, AGV etc.

6

7.0 LAYOUT OF THE WAREHOUSE Most importantly, warehouse needs to make efficient use of existing and created space. This means designing physical layout to ensure your team is able to work to maximum capacity at all times, and that inventory can flow throughout your warehouse as smoothly as possible. It is difficult to compile the meaning of a cold storage warehouse in one single sentence as it has numerous definitions. In simple words, a cold storage warehouse is an area or building restricted to certain environmental conditions to keep the products safe. These warehouses usually look like any other warehouse from outside but differ in their inner environment.

Some cold storage warehouses have such extreme conditions that you need special equipment to stand inside. Unlike every other warehouse, cold storage warehouses also exist in different forms based on the need. As such, it is an important node of food supply chain logistics. A cold storage warehouse undoubtedly differs from any other kind warehouses as per its name itself.

Unlike other warehouses, a cold storage warehouse requires extra maintenance and surveillance in terms of temperature and heat exchange. Products that can be damaged at normal room temperature conditions need a Lineage cold storage for their safe storage. To get a clear understanding of how it works, let us have a look at the types of things it stores.

•

Food products

Everything that you buy from the market and store in your refrigerator definitely would have come from a cold storage warehouse. Food such as dairy products, meat, vegetables, ice creams, etc. requires cold warehouse storage.

The end retail shops are located at a distant location from the manufacturing point. This makes it important to preserve the quality of the manufactured products. These products stay at multiple cold storage centers based on their distance from the final point of sale.

In some cases, the price of the product includes the cold storage warehouse cost. This is the reason why such products have somewhat higher prices than other products.

•

Flowers and plants

Cold storage warehouses also have different sections for plants. Whenever you order a plant or a bouquet from an online store, the product in stored in a cold warehouse. The plants come from a farm, but in the case of distant delivery locations, they are kept at this kind of warehouse to prevent spoilage.

•

Artworks

As the craze of art has been growing, so has the rate of art production. Nowadays, many of the sculptures or statues are made up of natural colors and fibers. This makes it necessary to reserve some space at a cold storage warehouse for artworks to be stored at the optiumum temperature, otherwise these artworks can be damaged.

•

Pharmaceutical purposes

7

Cold storage warehouses play a vital role in saving the lives of people too. Many of the pharmaceutical products such as medicines and supplements require a specific temperature for storage. Some hospitals have term-based contracts with such warehouses to fulfill their needs.

1. Start with the automation system Because the automate strategy is integral to building design, where possible you should select the automation system before the building is designed. This allows the building designer to fully leverage the capabilities of the system to achieve greater efficiencies.

Among the most popular systems for cold storage automation are stacker cranes and robotic pallet shuttles. Stacker crane systems represent a cost-effective and reliable approach to automated storage and retrieval where the highest density and throughout are not required. Robotic pallet shuttles, such as Swisslog PowerStore, deliver many of the same benefits of stacker cranes but support higher density and throughput.

2. Think taller Traditional warehouses with 40-foot ceiling heights are not conducive to efficient refrigeration because the square footage of the roof introduces heat from solar energy, increasing the load on the refrigeration system. If the facility is a deep-freeze warehouse it will also have a heated floor, which further contributes to the heat load.

These issues can be minimized by a building design that reduces roof and floor square footage without compromising storage capacity. That requires building taller warehouses, enabled by automation systems that support vertical storage such as those mentioned above. Increasing 8

building height can allow the building designer to achieve a footprint approximately one-third that of a conventional facility, creating significant OPEX savings over the life of the facility.

3.Don’t forget carton handling Storage and retrieval aren’t the only processes that can be automated in a cold storage warehouse.

Downstream operations such as carton handling also lend themselves to automation. One example is the Swisslog ACPaQ robotic case picking system. It automates the task of building store-friendly pallets by combining light-goods shuttle systems, conveyors and high-performance de-palletizing and palletizing robotic technology from KUKA, a global leader in robotics. The system can be configured for small, mid-size and large distribution centers handling up to 500,000 cases a day.

4.Cold-proof your technology Automation systems require some special adaptations to perform reliably in low-temperature environments. Make sure you have remote visibility into your system to limit technician time in the deep-freeze environment and that your system features cold-resistant lubrication, quick disconnect couplings and other features that allow technicians working on the system to get in and out quickly.

5.Manage energy demand While proper building design and automation system selection can drive down consumption in a cold storage facility, managing demand can also yield savings. Reducing energy costs during highdemand periods minimizes the impact of surge pricing and can drive down costs on a per kilowatt hour basis. The challenge, of course, is costs are highest on high ambient-temperature days when the thermal load on the refrigeration system is at its highest. The key is to adopt advanced control algorithms and sensors that enable smart energy management in which cold environments are overcooled during periods of low demand, such as overnight, creating a thermal buffer that minimizes cooling requirements during peak periods.

8.0 CONCLUSION AND RECOMMENDATION Logistics is an important aspect of supply chain management since it ensures that goods and resources get at their destination on time. Its goal is to deliver the correct goods at the right time, in the desired quantity and condition, at the right location and at the right price. The term "inbound logistics" refers to all actions related to placing orders with suppliers. Outbound logistics, on the other hand, refers to any actions that entail dealing with or trading in the company's products. A effective reverse logistics plan can take advantage of a number of benefits. Companies will be able to save money by using a return list and ensuring that the return sequence is right. In the case that a product is defective, the companies will replace it or provide comparable goods and cover the associated costs. Lineage is proud of its role as global food supply chain stewards. Lineage acted quickly to secure the safety of their 15,000 employees when COVID-19 spread over the world.

The efficiency of your warehouse can be improved by increasing the number of items that can be moved through it. Moving, storing, managing, and protecting goods inside and across facilities are all part of material handling operations. Major tasks include loading, unloading, transporting, and selecting materials. Material Handling Equipment (MHE) is required to handle materials correctly and to provide value to the material, the operator, and the environment.

9