Executive summary:

The third-party warehouse of the e-commerce platform refers to providing comprehensive logistics services for the e-commerce platform, including delivery, professional warehousing, order  management,  packaging  and posting, picking  and  distribution,  and  logistics  delivery. Nowadays, with the development of online shopping in China, extremely high requirements are also placed  on  third-party  warehouses. Under this pressure, the disadvantages of third-party warehouses have gradually emerged. The first is that the inbound from the supplier is abnormal. The warehouse cannot control the quality of incoming goods, and even the quantity sometimes goes  wrong  due  to  improper  coordination  among  the  merchants,  warehouses and suppliers. Second, it is oversold. Compared with the traditional sales industry, the e-commerce industry is more efficient and faster. A hot commodity or a shopping festival will lead to a large number of orders appear in an instant. Orders are oversold due to inconsistent inventory data in the front and back offices. If the front-end and back-end inventories are not well connected, even if the inventory in the warehouse is sufficient, the front-end may not be able to list the correct amount of inventory, which will inevitably bring losses to merchants and buyers. The third is the disputes between the delivery and settlement. The popularity of online shopping has led to the need for the third-party warehouses to enter the warehouse quickly so that they can deliver goods as soon as possible, so that customers can experience better. If the sales are not good, quickly withdraw the warehouse, so as to find other sales channels as soon as possible. It is tense to carry out detailed management and feedback on the inventory in the warehouse. The last is the calculation of the demurrage fee. Under normal circumstances, the demurrage fee will follow the principle of first-in, first-out, and the demurrage fee will be calculated according to the number of days in which the product is detained, but the calculation of the demurrage fee is based on an accurate inventory quantity. If the stock quantity is wrong, the demurrage fee will also cause various disputes. In fact, the above problems can basically be summarized as the information asymmetry among the merchants, warehouses and suppliers. For this problem, the solution adopted is to build a platform which internal information about any order can be shared among, so that the information can be transmitted in a timely manner. This solution can avoid some of the risks of information asymmetry.

Bussiness case:

( Lianyungang foreign trade cold storage)

Lianyungang Foreign Trade Cold  Storage was invested and built by the Ministry of Foreign Trade and Economic Cooperation in 1973. It is one of the large-scale cold storage in China's foreign trade system, consisting of 12,000 tons of low temperature storage (- 18C) and 5,000 tons of fresh storage (0C), equipped with double circuit power supply. There IS also a general warehouse of 3,000 square meters, a refrigerated fleet with a capacity of more than 100 tons, and a frozen goods processing plant with an annual processing capacity of 1,500 tons. Its business scope  is  material  storage,  commodity  storage,  processing;  Edible  OIL  AND  PRODUCTS,

NON-STAPLE   FOOD,   FEED,   BUILDING   MATERIALS,   METAL   MATERIALS   sales, purchasing, commission, road transport services.

Question:  Warehouse management is not good, on the one hand, there are tens of thousands of materials, hundreds of suppliers, the big shelf warehouse, on the other hand, there are a small    number of warehouse keepers with mediocre quality, a wide variety of but not applicable, and   basically no use of the system and process. In the final analysis, warehouse problems basically  come from inadequate on-site management.

Solve: (ABC management principles of inventory):

The quantity of class A material may only account for 10~15% of the inventory, but the value of the goods can account for 60~70% of the inventory value;

The quantity of class B material may only account for 20~35% of the inventory, but the value of the goods can account for 15~20% of the inventory value;

The quantity of class C material may account for 50~70% of the inventory, but the value may account for 5~10% of the inventory value.

Therefore, it is necessary to strictly control the key minority and minor majority, that is, to strictly control A, B two types of materials.

Project Objective (SMART Goal):

Improve work efficiency by re-editing data sources over the next five cycles so that the original work structure remains the same and resolve storage disputes before outbound delivery.

Specific: Improve inventory management efficiency of third-party warehousing Measurable: New edit management of data sources for existing databases          Attainable: In the next five new inbound and outbound cycles

Relevant: Under the condition that the original working structure of warehouse inbound, outbound, and exit remains unchanged

Time-bound: Solve the problems of abnormal storage and platform oversold before outbound delivery

Project Scope: The third-party warehouse managers and database developing team edit the data sources of the existing database and re-statistically manage the data sources, such as inbound,    outbound, and exit, to improve the flexibility of warehousing. The acceptance and inspection     personnel of the inbound and the outbound perform statistical analysis on the abnormal goods,   calculate the irregular interval, and write it into the database by the data engineer. The goal is to solve the problems that are prone to occur in third-party warehousing.

Product Scope: The database of third-party warehousing adds a targeted data source, which        manages the difference between the in-stock quantity and the out-of-stock quantity of the             warehouse inventory. This difference can improve the efficiency of warehouse management and  solve problems such as oversold goods. On the other hand, due to the interval statistics of            abnormal goods in storage data, the newly added data source written into the warehouse database also includes interval calculation of irregular goods, which can better solve the disputes of           third-party warehousing.

Assumptions and Constraints:

The following assumptions have been made in defining the scope, objectives and approach:

1.   The project improves delivery efficiency, saves operating costs and facilitates management

2.   The project has enough funds.

3.   The feasibility study of the project has been carried out and approved.

4.   The project will fully meet the needs of the store.

Constraints

First, financial constraints. If an enterprise wants to innovate in management, it is bound to introduce some software and hardware facilities, which requires a large amount of capital         investment.

Second, the restriction of system renewal. The improvement of management methods is often accompanied by fundamental changes in institutional settings, division of labor, business             processes, etc.

Third, the restriction of knowledge structure. Due to the introduction of new concepts and new knowledge, some older people have incomprehensible psychology.

Fourth, artificial restriction. Due to the optimization and reorganization of personnel and the institutionalization and transparency of management, some people lost their original status and  also touched on the interests of some people, resulting in various kinds of resistance.

Project Team:

Multiple teams are working on different aspects of the project. Some are doing the design part, some are doing development, and others are in the quality assurance phase. Project members   include.

First, the project supervisor (who manages the overall supervision of the project implementation process)

Second, the Internet Business (almost always the same as the owner)

Third, the construction manager (the main person responsible for the project, including the       overall management of the database design, database management, technical services provider) Fourth, the database designer (the technical person who designs the database)

Fifth, the warehouse operator. In addition, within the company, it is used to track more data about the project. Key company personnel involved in the project, starting with the specific department of the company performing the work, to the vice president, project manager, and work supervisor overseeing the project, as well as other team members (cost and schedule engineers, ETC.) If      possible, a list of subcontractors and consultants for the database technology should be included  to enhance documentation of team members' prior experience working together

Major deliverables, due dates, and acceptance criteria

This project is scheduled to be completed within six months

The acceptance criterion is to successfully build a database management platform that allows the sharing of information between the three stakeholders: merchants, warehouses, and suppliers.     Professionals will be able to work on different aspects of the project and share information from the new database system. Ensure timely delivery and fulfillment of all requirements set by the    customer or product owner.