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Strengths

  • Tai Po facilities is more convenient and efficient because it is owned and managed by the firm

 

Weaknesses

  • The separation of Tai Po (depot) and Yuen Long (Central warehouse) warehouses
  • Yuen Long facilities is located in a multi-story building and logistic facilities within the building are shared by tenants
  • Engineering department will not be as quick as Tai Po troubleshooting compared to Yuen Long
  • Communication between the two warehouses is done manually with messenger assistance
  • Raw materials, finished goods and packaging materials are stock in the central warehouse for the use of the depot in manufacturing
  • Warehouses are being fully occupied
  • Slow moving products that lasts in the central warehouse for 3-4 months
  • Records updating (inventory status and purchase data) is manual
  • Stocks are kept in random location
  • FIFO inventory system

 

Opportunities

  • Operations and facilities in the two warehouses are the same in the areas of staking, racking and retrieval
  • Centralization is applied in logistics functions
  • The bulk order of supplies from China can be straightly deployed in the depot since different departments have tasks on this transaction.  The central warehouse is merely a storage venue which makes communication and transportation redundant
  • Staffs in the central and depot warehouses can be housed in the same location to avoid comments of heavy workload from the latter.  

 

Threats

·        The full capacity practices in the two warehouses may serve as bottleneck for depot to store finished products to central warehouse (the same is true from central warehouse to depot when regards to supplies and packaging materials).  This can delay exportation from different countries as well as manufacturing operations.

·        Sub-contractors and central warehouse may have conflicts because shipping department is the one responsible for documentation and coordination in outbound shipments.  In effect, local deliveries could be delayed.

 


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