General Guide to

Warehouse Management
in Seaport Terminal

Trainer:
MOHAMAD ALI ABDUL HUSSAIN
NURAINI NOOR RAHIM
LOGISTICS FREEZONE SERVICES
NORTHPORT (MALAYSIA) BHD

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
ACTIVITY TIME!

What did you observe from the video?

(2 minutes)

Accident Cargo fell

Lots of
walking

Scattered Wrong
Cargo Wrong
destination
location
LEARNING OUTCOME

By the end of the session,

participants will be able to
identify elements associated
to a practical warehouse, its
activities and processes

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
TRAINING OVERVIEW
HIGHLIGHTS OBJECTIVES
 Warehouse Location Overview  To analyze warehouse positioning
through case study
 Common Terminology in
Logistics  To identify type of warehouses

 Challenges in Warehouse  To define common Logistics

Management terminology

 General Elements of Practical  To distinguish challenges in

Warehouse warehousing

 Packing & Unpacking Processes  To identify general elements of a

practical warehouse
 Summary
 To analyze process of Import and
Export
"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
 Warehouse Location Overview

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PORT OF HAMBURG, GERMANY

Port of Hamburg is the third

busiest port in Europe, located
on the river Elbe in Hamburg,
Germany.

Its an all-purpose port, offering

handling facilities suitable for
every type of cargo from
containerised, bulk cargo and
liquids.

They are also the Europe’s

largest port of call for cruise
passengers travelling the
Atlantic, Norwegian and Baltic
Sea. The area also serves
location for shipbuilding and
shipyards.
PORT OF TANJUNG PELEPAS, JOHOR

Port of Tanjung Pelepas is a

transshipment port located in
Johor, Malaysia. They are a
part of the APM Terminals
Global Terminal Network,
which holds a minority share
in the joint venture.

PTP is in close proximity to the

Straits of Johor, which
separates the countries of
Malaysia and Singapore and
the Strait of Malacca.

Pelepas Free Zone consists of

1,600 acres of land which
currently houses over 40
companies.
WAN HAI TERMINAL, KAOHSIUNG PORT, TAIWAN

Port of Kaohsiung which

consists of several terminals, is
the largest harbor in Taiwan,
located in Kaohsiung City.
They handled 9.5 million TEUs
in 2022.

Wan Hai Terminal, with a size

of 211,820 sq. m., equipped
with 5 quay cranes, 8 rail
mounted gantries (RMG) and
14.5m wharf depth, is one of
the terminal that handled
approx. 1.0 million TEUs
annual throughput. The said
terminal capacity is 1.2 million
TEUs.
ACTIVITY TIME!

What did you observe between

all the ports layout? Any similarities?
(2 minutes)
SEAPORT TERMINAL LAYOUT
PORT KLANG OVERVIEW

Northport is
strategically located
at the Straits of KETAM ISLAND KLANG ISLAND
NORTHPORT
Malacca and it is
surrounded with
natural islands that TENGAH
ISLAND
SOUTHPOINT

protects the port from CHE MAT ZIN

natural disaster. ISLAND
INDAH ISLAND

SELAT KERING
Northport is also
WESTPORTS
There are 3 Ports in ISLAND

Port Klang. Northport surrounded with

matured industrial
PINTU GEDUNG
and Southpoint ISLAND

(formerly known as area of Bandar

Port Swettenham) is Sultan Suleiman,
managed by which allows easy
access to industry
CAREY ISLAND
Northport (Malaysia)
Bhd. players for
STRAITS OF MALACCA
logistical activity.

"Please
"Please be be informed
informed thatthat
thisthis document
document maymay
notnot
be be reproduced
reproduced or distributed
or distributed without
without express
express written
written permission
permission from
from Northport."
Northport."
PORT KLANG HINTERLAND CONNECTIVITY
KLCC Seremban >>
<< Northport is well
Kuantan
connected with 7
Nilai 3 Industrial Park
KLIA

interlink
expressways which
Sungei Way Free Trade
Industrial Zone
Alam Perdana
Industrial Park provide access to
Subang Utama
Industrial Park more than 13
SAAS Airport UEP Industrial Park

<< Ipoh major Industrial

Hicom-Glenmarie
Industrial Park Hicom Industrial Park
Park around Klang
Valley and Nilai. A
50km radius
Sungai Rasau
Industrial Area
Bukit Raja
Industrial Park
journey of between
Selat Kelang Utara
Pandamaran
Industrial Park
SOUTHPOINT 2 to 2.5 hours travel
PLUS
NKVE
Industrial Area

Teluk Gong
time.
FEDERAL Industrial Area
KESAS Bandar Sultan Sulaiman / NORTHPORT
ELITE Tanjung Harapan
KARAK Industrial Area
SKVE
Port Klang Free
Zone
NORTHPORT [ESTD 1963] : EXTENSIVE LOGISTICS HUB
Extended Footprint Northport Distripark
• Consist of tenants with own-built facilities • Operated by subsidiary company NDSB
• Key tenants include BHP, FIMA, Gold Coin and • Home to seven (7) warehouses with total built-up of 830k
Ayamas Feedmill sq. ft.

Axis-Reit
• K7 & K10

EXTENDED FOOTPRINT
NDSB

CONTAINER TERMINAL 2 CONTAINER TERMINAL 1

Container Terminal 2 (CT2) Container Terminal 1 (CT1)

• Consist of 3 container blocks and a conventional terminal • Predominantly container handling
with liquid, dry bulk and break bulk cargo handling • Consist of 5 container blocks + 1 in-progress
capabilities • Includes 1 on-dock depot operated by main liner (Wan Hai)
• Up to 3.4 mil TEU capacity per annum • Up to 3.4 mil TEU capacity per annum

"Please be informed that this document may not be reproduced or distributed without expressed written permission from Northport."
NDSB LAYOUT

D1 D2 D3 D4 D5 D6 & D7

"Please be informed that this document may not be reproduced or distributed without expressed written permission from Northport."
NDSB TRAFFIC FLOW

"Please be informed that this document may not be reproduced or distributed without expressed written permission from Northport."
CONSIDERATION FOR WAREHOUSE LOCATION

Proximity to Access to Workforce Scalability Lease rates & Sustainable &

Customers Infrastructure Availability Incentives Environmental
• Reduce & Utilities • Skilled / • Extra land • Competitive Consideration
transport • Highways, unskilled space rates • Compliance
cost railroads, workforce • Adjacent • Tax break with
• Reduce seaport, • Local / infrastructure • Green environment
lead times airport foreign • Future incentive regulation
• Reduce • Enhance • Workforce expansion • New • Evaluate
shipping transport cost technology environment
expenses flexibility &reliability incentive impact
• Improve • Truck • Renewable
customer accessibility energy
experience • Electricity, sources
water
TYPE OF WAREHOUSES
1. Free Zone Warehouse
- Located inside Free Zone area
- The activities are subject to Port Authority’s or Government Agencies
regulations
- For transloading and trading business
2. Bonded Warehouse
- Located outside Free Zone area
- The activities are under customs-controlled for retention of imported
goods until the duty is paid
- For minor assembly, long storage and near end customer
3. General Warehouse
- Located outside Free Zone area
- The activities are not under Customs nor Port Authority’s regulations
- For all other purposes
COMMON TERMINOLOGY IN LOGISTICS

1. FCL 4. SOC
- Full container load - Shipper-owned container
- Container used for single - Container owned by individual or
consignee business for own shipment
2. LCL 5. NVOCC
- Less-than-container load - Non-vessel operating common
- Container used for multiple carrier
consignee - Own containers but does not
3. COC operate ships
- Carrier-owned container - Buy slot from shipping line and sell
- Container owned by shipping line to shipper
and rented out to various - Forwarding Agent – Freight
consignees Forwarder – NVOCC
COMMON TERMINOLOGY IN LOGISTICS

6. CFS 9. Shortlanded goods

- Container Freight Station - Goods that fall short of the
- a warehouse where import quantity stated in the inward
cargoes deconsolidated & export manifest.
cargoes consolidated.
10. Overlanded goods
7. Distripark - Goods that is in excess of the
- Distribution Park quantity stated in the inward
- Comprises of CFS, container manifest.
staging area, office building,
canteen, fuelling station etc. 11. Integrated Logistics Provider
- Warehousing, Trucking, Haulage,
8. Laden container Customs brokerage, Freighting,
- Container which is loaded with Order picking & Assembly.
cargo. - 1PL to 7PL.
COMMON TERMINOLOGY IN LOGISTICS

12. Drayage  Import - from time of discharge

- Moving container from one until gate out
location to another within the port  Export - from time of entering
area. terminal until loaded
13. Shunting 15. Detention
- Moving container from staging - Penalty charge by shipping line for
yard to warehouse bay within a extended usage of container after
distripark. free time
 Import - from gate out until
14. Demurrage container returned to empty
- Penalty charge by shipping line depot
for extended usage of container  Export - from container pick up
after free time at empty depot until container
enter terminal
DEMURRAGE AND DETENTION

Source: Container X-Change (2023)

FREIGHT FORWARDING PROCESSES
INCOTERMS 2020
Challenges in Warehouse Management
WAREHOUSE MANAGEMENT CHALLENGES

1. INACCURATE INVENTORY 2. INEFFICIENT SPACE UTILIZATION

INFORMATION
• Warehouse spaces are not being
• Manual update of inventory utilized efficiently.
data may lead to improper stock • A proper layout helps to optimize
information. the warehouse floor and vertical
• The buildup of obsolete inventory. space to store many products.
• Worker spend more time on • Warehouse setup mistakes lead to
physical checks and error unnecessary time wastage.
correction.
WAREHOUSE MANAGEMENT CHALLENGES

3. IMPROPER LABOUR MANAGEMENT 4. FOLLOWING TRADITIONAL PROCESSES

• Labour cost is approx. 65% of the • Obsolete paper-based processes

total warehouse budget. are time consuming and increase cost
• Manage labour effectively can - Manual data entry
improve overall productivity - Excessive handling of products
• Find areas for process • Automate warehouse system and
improvement & simplification to maximize data-driven to improve
reduce labour cost. warehouse performance.
WAREHOUSE MANAGEMENT CHALLENGES

5. ADAPTING TO DEMAND CHANGES 6. SUBSTANDARD PICKING PROCESS

• Factors affecting demand for • Picking errors and inventory issues

warehouse space: delay the process.
- Seasonal changes • 50% picker's time spent in movement.
- Economic changes • Picking should be
• Need to find balance between with minimum movement and time.
supply and demand. • Enhanced inventory layout and
warehouse automation system
WAREHOUSE MANAGEMENT CHALLENGES

7. IMPROPER CLIENT MANAGEMENT 8. MANAGING HEAPS OF DATA

• Warehouse with disorganize client • A lot of data is generated while

management may create executing different
haywire condition for operation. warehouse processes.
• Incorrectly forecasting customer • Manual analysis of data is time
demand create congestion in consuming and prone to mistake.
warehouse.
• Prone to mistake and lead to
unnecessary claim.
WAREHOUSE MANAGEMENT CHALLENGES

9. VARIETY OF CARGOES STORED 10. OPERATION NEGLIGENCE

• Multiple cargo sizes • Priority for speed may neglect cargo

demand for different storage condition during packing unpacking.
space. • Customer satisfaction may drop &
• Warehouse space not fully create unnecessary cost & hassle .
optimized.
• Required skillful and competent
labour for handling and stuffing
unstuffing.
ACTIVITY TIME!

Which two (2) challenges do you think

are the most crucial
to a warehouse operations? Why?
(5 minutes)
 Warehouse General Elements

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
GENERAL ELEMENTS OF WAREHOUSE

DESIGN & SAFETY AND CARGO SYSTEM &

LAYOUT HEALTH REQUIREMENTS SOFTWARE

SUSTAINABLE EQUIPMENT
INITIATIVES
DESIGN & LAYOUT
o An effective warehouse layout can simplify your workflow and create
faster handling movements.
o Inefficient utilisation of space may negatively affect your supply chain:
longer workflow, more handling movements, higher costs, bigger dwell
time
o Factors to consider in designing a warehouse layout:
 FACT principles - flow, accessibility, capacity, traceability
 Storage area - grouping of cargo
 Workflow area - forklift lane, cargo area, equipment staging
 Activity area - packing & unpacking, storage area, value added area
 Pedestrian lane
 Offices
 Speed vs space
U-SHAPED WAREHOUSE
o Most common layout
for beginners

o Keep traffic flow

separated - avoid
bottleneck on pace
differences

o Central portion serves

as shared staging area

o Shorter travel area for

employees and
equipment
Source: Anna Sork, Big Rentz (2020)
I-SHAPED WAREHOUSE

o Best for storing higher

production volume

o Straight flow from

receiving to delivery

o Increase optimization the

most as it uses the entire
length of the warehouse

o Bigger storage and

sorting area for both
receival and delivery
cargoes
Source: Anna Sork, Big Rentz (2020)
L-SHAPED WAREHOUSE

o Least common flow type

o Loading and reception

area at the side of
warehouse, while
shipping area to the
adjacent side

o Minimizes congestion by
avoiding back and forth
movement

o Separates inbound and

outbound product
Source: Anna Sork, Big Rentz (2020)
ACTIVITY TIME!

What is your preferred warehouse layout?

Why?
(2 minutes)
TYPE OF STORAGE SYSTEM
o Warehousing comes with many costs. The larger the warehouse, the
bigger the running costs.
o It's important to maximize the usage of space available, including the
vertical space
o What are the types of storage system available?
1. Static Racking System
 Double-deep racking
 Push back racking
 Compact pallet storage racking
 Drive through racking
2. Mobile Racking System
 Automated
 Manual i.e. pallet
3. Platform / Multi-Storey / Mezzanine Racking System
FIFO VS LIFO
FIFO (First-In First-Out) LIFO (Last-In First-Out)
• Oldest inventory items are sold first • Newest inventory item are sold first
• Consist of oldest units, while • Cost of goods sold consist of most
remaining consist of most recent recent inventory costs, while ending
purchase is of the earliest costs
1. Perishable goods 1. Non-perishable goods
• By selling oldest units first, • Suitable for goods with no limited
FIFO helps minimize risk of shelf life or expiration date
expiry or spoilage
2. Inflationary Environments 2. Tax Advantages
• Since cost of goods sold based on • Where prices increase, LIFO helps
older or lower priced inventory, reduce taxable income and may
remaining inventory is at higher defer taxes
price
STATIC RACKING SYSTEM

DOUBLE-DEEP RACKING
o Reduces the size of aisles
o Forklift moves along the aisle
in parallel to the racking
system
o Fork able to reach to the
second depth
o Suitable if pallet at the back
contains the same item with
the front, and perfect
rotation is not required.
STATIC RACKING SYSTEM

PUSH BACK RACKING

o Installed with a pair of
inclined rails and carts that
rides on the rail
o Faster to load and unload
o Widely used in storing food
distribution and
pharmaceutical
o Applies LIFO – Last in, First
Out
STATIC RACKING SYSTEM

COMPACT PALLET STORAGE RACKING

o Allows automatic loading of pallets continuously by remote
control
o Reduces work aisles
MOBILE RACKING SYSTEM

o Able to re-organize rack

aisles
o Built on a mobile base
guided by rails on floor,
driven by electric motor
o Reduces the warehouse
footprint by 45% yet
increases the storage
capacity by up to 85%
PLATFORM / MULTI-STOREY / MEZZANINE RACKING SYSTEM

o Maximizes vertical space

o Suitable for handpicked
items by operators, which
speeds up picking
process
o Remove needs for bulky
equipment
WAREHOUSE K10 AT NORTHPORT, CT1
RECEIVING & DELIVERY LANE AT D6 & D7, NDSB
GENERAL ELEMENTS OF WAREHOUSE

DESIGN & SAFETY AND CARGO SYSTEM &

LAYOUT HEALTH REQUIREMENTS SOFTWARE

SUSTAINABLE EQUIPMENT
INITIATIVES
SYSTEM & SOFTWARE

o A warehouse management system (WMS) is required to make cargo

organization, storage and distribution efficient in a warehouse.

o Proper WMS software able to administer daily operations in a warehouse

to control all functions involved - from job creation of a shipment until
moved for sales.

o Gives user visibility to real-time data of inventory status - cargo

locations, charges, weight, customer etc. including information on
goods received, packing, unpacking and delivery.

o WMS software can be altered and custom made to businesses, based

on requirements and stakeholders involved.
WMS - BENEFITS & SELECTION CRITERIA

 Efficient & effective labour management

 Improve inventory counts, tracking and visibility
 Reduce operating costs & picking errors
 Minimize paperwork
 Improve billing management
 Improve customers relation

 Calculate Return on Investment (ROI)

 Support existing warehouse system & processes
 Support continuous enhancement /
improvement
 Provide Business Intelligence & reporting
KEY PERFORMANCE INDICATOR

Capacity utilization Container delivery

productivity

Transport Management
Packing / Unpacking
performance
Trailer utilization rate
Management
Warehouse

Cargo dwell time

Truck turn-around time

Utilities usage / month

Fuel cost / TEU

Fuel cost / TEU

Invoicing & Collection Invoicing & Collection rate

rate
ON THE GROUND PROCESSES

o Capture below information upon cargo receival and update in system

(take photo where necessary):
 Container no. & Seal no. / Lorry reg. no., Driver’s name & IC,
 Cargo marking,
 Cargo condition,
 Quantity received,
 Measurement in cubic meter & weight,
 Storage location, and
 Cargo owner

o Create proper tagging on cargoes for ease of retrieving.

o Separate storage area between import and export cargo.

GENERAL ELEMENTS OF WAREHOUSE

DESIGN & SAFETY AND CARGO SYSTEM &

LAYOUT HEALTH REQUIREMENTS SOFTWARE

SUSTAINABLE EQUIPMENT
INITIATIVES
CARGO REQUIREMENTS

 Different types of cargoes may demand different requirements of

storage, handling and procedures to follow

 Types of cargo stored in warehouse may be:

 General Goods
 Temperature-controlled Goods
 Dangerous Goods
 Halal Goods
GENERAL GOODS

Bags Cartons

Steel coils Crates

Drums Roll paper

Palletizes Vehicles

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
TEMPERATURE-CONTROLLED GOODS
Cold Storage Cargo
o Cold storage warehousing involves
the storing of perishable or other
sensitive goods like food, medicines,
and artwork at a specific
temperature range to maintain their
integrity, shelf-life, and quality.

o Categories of cold storage

warehouse:
 Refrigerated : Controlled
temperature at 0 to 10 °C.
 Frozen : Controlled
temperature at -25 to 0 °C.
TEMPERATURE-CONTROLLED GOODS

Type of products that requires Cold

Storage:
o Foods - meat, fresh produce
o Nutritional supplement
o Botanical - flowers and plants
o Bio-pharmaceuticals - medicines,
vaccines, blood sample
DANGEROUS GOODS

Dangerous Goods (DG)

o Regulated with strict compliance with protocols, safe practices, and
paperwork to ensure compliance and safety. Improper storage and
handling of DG can cause fire, explosion and bodily injuries.

o Should provide past hazard identification and chemical safety data

sheets, classification and labelling

o Adequate services should be provided:

 including electricity with
emergency supply if needed,
 hydrant and fire-fighting water
IMDG CLASSES

IMDG Code – International Maritime Dangerous Goods Code

• Guideline of safe transportation and storage of dangerous goods
DG SAFETY REQUIREMENTS

Installation of a fire extinguisher at an accessible Eyewash to flush out harmful substances before they
area can cause severe damage if spillage or exposure
to chemicals occurred
DG SAFETY REQUIREMENTS

Windsock is an indicator of wind speed and wind Clear and proper segregation of DG cargo with
direction labelling and marking
HALAL GOODS

Halal Goods
o In Malaysia, Halal certification must be accredited by Jabatan
Kemajuan Islam Malaysia (JAKIM)

o Halal warehouse has been in demand to store halal products that fully
certified halal standards
o Segregated from non-halal cargo in transport and storage.
o Application of high hygiene standards in both transport and
warehousing
o Solid halal assurance system is in place to continuously control the
halal business processes.
HALAL HUB

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HALAL HUB
HIGH VALUED GOODS IN CAGE
CIGARETTES, BEER & LIQUOR

High value cargo in

cage
IMPORT VEHICLES AT OPEN YARD
IMPORT VEHICLES IN WAREHOUSE
ACTIVITY TIME!

So what type of cargoes

can be stored in a warehouse?
(2 minutes)

Halal goods Cold storage

DG cargo

High value General

Vehicles
GENERAL ELEMENTS OF WAREHOUSE

DESIGN & SAFETY AND CARGO SYSTEM &

LAYOUT HEALTH REQUIREMENTS SOFTWARE

SUSTAINABLE EQUIPMENT
INITIATIVES
EQUIPMENT

1. A good warehouse should have

suitable equipment deployed to
optimize operations.
2. Equipment deployed for
warehouse operations can be
segregated into:
• Indoor
• Outdoor
INDOOR

1. Forklifts
• Commonly used equipment to
move cargo in warehouse
• Best for raising and transporting
items over short distance
• They may be diesel powered or
electric powered
 Normal fork
 Clamp
 Ramrod
 Clip
INDOOR

Normal Fork Ramrod

Clamp Clip
INDOOR

2. Pallet Jack
• Used to move pallets within the
warehouse
• May handle approximately
2,200kg on average
INDOOR

3. Walkie Stacker
• Lifting cargo to greater heights
than pallet jacks
• Lift weight between 900kg -
1,300kg on average
• Lift heights are between 6 - 14
feet
INDOOR

4. Order Picker
• Designed to lift the operator –
they ride on the platform that
may raises and lowers them to
different levels of racks
• To quickly and efficiently retrieve
and store items
• May load up to 1 tonne with
height up to 32 feet
OUTDOOR

1. Reach Stacker
• A vehicle used for handling
intermodal containers in small
terminals or medium-sized ports.
• May transport a container for
short distance very quickly and
pile them in various rows
depending on its access.
OUTDOOR

2. Side-loader Truck
• A self-loading trailer with two
hydraulic lifting cranes to lift a
container onto it.
• It can be operated by the driver
using controls on the side of the
trailer or a remote control.
OUTDOOR

3. Prime Mover & Trailer

• Normal truck used to move
empty or laden containers from
one destination to another.
• Connected to chassis trailer,
where containers will be lock
onto.
ACTIVITY TIME!

Identify the suitable equipment

for the following functions
(2 minutes)

- Most used equipment

- Move cargo in warehouse Forklift
- May use diesel or battery operated

- May handle weight at most 2 tonnes

- Move cargo in warehouse Pallet jack
- Hand-operated equipment
ACTIVITY TIME!

Identify the suitable equipment

for the following functions
(2 minutes)

- Lift-on and lift-off laden containers

Reach
- Used in terminals and container yard
- Used for short distanced delivery stacker

- A self-loading trailer
- Operated by the trailer driver Side loader
- Equipped with remote control and
hydraulic arms
GENERAL ELEMENTS OF WAREHOUSE

DESIGN & SAFETY AND CARGO SYSTEM &

LAYOUT HEALTH REQUIREMENTS SOFTWARE

SUSTAINABLE EQUIPMENT
INITIATIVES
SAFETY & HEALTH

 Safety in the warehouse obeys to a set of regulatory guidelines to help

warehousing personnel ensure a safe work environment and reinforce
safe behaviour when working in warehouses.
o Guidelines set by Occupational Safety and Health Administration
(OSHA)

 Which areas in the warehouse needs to be consider its safety?

o Staff and users - Personal Protective Equipment (PPE)
o Cargo handling and movement area
o Equipment, tools and vehicles
o Fire safety
RISKS
Some of the possible risks during warehouse operation?

o Cargo fell off from lorry during unloading from the lorry by forklift
o Lorry driver negligence and hit people/cargo/property
o Collision of forklift during operation
o Lorry overheat and caught fire
o Uneven warehouse flooring causing cargo to fall from the forklift
o Undeclared DG cargo
o Smoking during handling of DG cargo
o Collision between forklift and pedestrian/cargo
o Container trailer moves during loading/unloading operation
ASSESSMENT
How to identify risks in warehouse?
o To identify risks associated within a warehouse, risk assessment can be put
in place

o Risk Assessment
o Evaluate risks to the safety and health of workers and cargoes.
o Helps to eliminate any hazards that could potentially disrupt the
functioning of your warehouse and cause harm to the resources that
carries out the operations.
 DO’S AND DON’TS IN WAREHOUSE
DOs DON’Ts
Report any incident and injuries Do not block exit or entrance. They must be
immediately - minor or major cleared at all times
Inspect all mobile equipment are safe to Do not let unauthorized or untrained
operate personnel to operate mobile equipment
Always make pedestrian aware of forklift Do not let pedestrian walk other than in
presence pedestrian walkway
Always wear the required Personal Do not wear improper footwear while
Protective Equipment (PPE) walking in warehouse
Display clear label and marking of DG Do not store undeclared DG cargo
cargo
Prepare designated area for smoking Do not smoke within the premise of
warehouse, especially near to DG cargo
Create designated pedestrian lane Restrict pedestrian from walking freely inside
the warehouse
WAREHOUSE CHECKLIST
1. General conditions and maintenance;
• Monitor areas prone to wear & tear, promptly address any damages.

2. Safety measures;
• Fire hydrant/extinguishers accessibility, staff trained with emergency
procedures, safety signs adequately & properly placed.

3. Inventory management;
• Early detection of any discrepancy, space optimization.

4. Equipment and machinery;

• Regular inspections, maintenance as per schedule, reduce breakdown
and cost.
WAREHOUSE CHECKLIST
5. Housekeeping;
• Improve productivity, efficiency and safety.

6. Documentation and records;

• Easily accessible, accurate and up-to-date crucial for compliance &
future reference.

7. Staff training and communication;

• Continuous enhancement & improvement, educate and reinforce best
practices.
GENERAL ELEMENTS OF WAREHOUSE

DESIGN & SAFETY AND CARGO SYSTEM &

LAYOUT HEALTH REQUIREMENTS SOFTWARE

SUSTAINABLE EQUIPMENT
INITIATIVES
SUSTAINABLE INITIATIVES

o Green warehouse should be an initiative to consider in reducing

environmental pollution and reduce carbon footprint - in a long run
contributes to climate change.

o A study found that 3,000 large warehouses in California contributed the

most emissions in the state. Output from warehouse machineries and
transportation fleets adds to local airborne emissions that quickly affect
the environment.

o The initiative may increase value to your business, offers nearly immediate
return on investment (ROI) plus longer-term global improvements while
satisfying stakeholders’ desires.
WAREHOUSE MANPOWER

1. Employ single mother, orphans,

homeless & hard poor community

• Social responsibility

• Reduce dependency on
foreign labour

• Increase staff loyalty

WAREHOUSE EQUIPMENT

2. Invest in electric equipment

• Electrified/battery operated
forklift with charging outlets
• Eliminate needs for gas/fuel
• Employees not exposed to
chemicals/exhaust fumes
WAREHOUSE INFRASTRUCTURE

3. Deploy rooftop solar panels

• Companies can save costs by
reducing electricity bills
• Consume free power and sell
the excess
• Reduce carbon emission
WAREHOUSE INFRASTRUCTURE

4. Upgrade facility’s lighting

• Standard fluorescent bulbs
consume electricity quickly,
whereas light-emitting diode
(LED) bulbs use up to 75% less
electricity.

• Skylight - Polycarbonate sheet

or translucent acrylic wall panel
- provide natural lighting.
WAREHOUSE INFRASTRUCTURE

5. Install sectional / individual

overhead roller shutter
• Reduce possibility of getting
coiled during roll up.

• Reduce possibility of
dislodged due to strong
wind.

• Avoid birds from entering

the warehouse via shutter
door.
WAREHOUSE INFRASTRUCTURE

6. Install flush loading dock

• Remove excess external working
area
• Reduce possibilities for
birds/pests from entering
warehouse
• Reduce potential incident
during loading/unloading of
oversized cargo
• Allow operational flexibility for
cargo handling
WAREHOUSE INFRASTRUCTURE

7. Install rainwater harvesting

• A process to conserve rainwater
by collecting, storing, conveying
and purifying the rainwater
that runs off from rooftops and
drains for later use.
• It helps to reduce water
consumption, soil erosion and
potential flooding.
WAREHOUSE INFRASTRUCTURE

8. Install effective ventilation

• Regulate and improve airflow
• Removes dust, harmful airborne
particles and gas emissions
• Control warehouse temperature
• Reduce heat and stuffiness
NEW TECHNOLOGY

9. Install motion sensor lighting

• Cost-effective
• Reduces electrical
consumption
• Convenience
• Longer lighting life-span
 Packing Unpacking Processes

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
IMPORT ACTIVITY

o Import is the process of receiving goods and commodities from one

country to another country.

o These goods can be received by individuals, companies or government,

and may be used for the processing of other products or to be resold to
the final consumers.

o Through seaport, these goods or commodities can be delivered through

ships in containerised or un-containerised mode.

o Once arrived at the port of destination, cargo will be unpacked for de-
consolidation and local delivery.
IMPORT PROCESS FLOW

CONTAINER UNPACKING

Container
return to
empty
depot
Freight
Container
booking Container
discharge Unpacking
with move to
at port activity
shipping warehouse
terminal
line

Cargo
delivery
IMPORT PROCESS FLOW

CARGO RECEIVAL INTO WAREHOUSE

Container Cargo
Cargo moved
arrived at Container updated into Cargo stored
into
warehouse unpacked warehouse in warehouse
warehouse
bay inventory
IMPORT PROCESS FLOW

CARGO DELIVERY FROM WAREHOUSE

Order Cargo Lorry gate out

Cargo stored Cargo loaded
received from verification from
in warehouse onto lorry
customer and payment warehouse
DOCUMENTS FOR UNPACKING ACTIVITIES

Zon Bebas 1 (ZB1)

o A declaration form for container
movement between Free Zone
Authority
o Submitted by tenant during
Import booking process
o K1 – Import for dutiable and
non-dutiable goods from
principal customs area
o ZB1 – Import for goods from duty
free area

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR UNPACKING ACTIVITIES

Equipment Interchange Receipt

(EIR)
o A gatepass use to pickup
containers from NMB terminal
o Generated by tenants before
given to PM driver.
o Contains all particulars of the
container, current status and
position, customer name, etc.

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR UNPACKING ACTIVITIES

Import Planning
o Summary of Import containers
to unstuff by tenants
o Submitted to Supervisor to
nominate containers to deliver
to warehouse bay
o Submitted daily

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR UNPACKING ACTIVITIES

Cargo Manifest
o Listing of goods carried by the
transporter
o Describes the particular of
goods: consignee, marking,
description, quantities, etc.

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR UNPACKING ACTIVITIES

Bill of Lading
o Important legal document in
shipping
o Given to shipper by carrier
when container board the
ship
o Allow transferable to
consignee/buyer to release
goods

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR CARGO DELIVERY FROM WAREHOUSE

DG Declaration
o Show full details of cargo;
container no, consignee and
description of goods
o To update delivery of cargo
from stock in system
o Needed by Customs upon
checking during gate out

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR CARGO DELIVERY FROM WAREHOUSE

Integrated Import Document

(IID)
o Show full details of cargo;
container no, consignee and
description of goods
o To update delivery of cargo
from stock in system
o Needed by Customs upon
checking during gate out

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR CARGO DELIVERY FROM WAREHOUSE

Customs Form (K1/K8)

o K1 - Declaration of dutiable
cargo
o K8 – Declaration of free duty
cargo

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR CARGO DELIVERY FROM WAREHOUSE

Customs official receipt (COR)

o Summarizes the content of
the shipment
o Helps assess duties and taxes

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR CARGO DELIVERY FROM WAREHOUSE

Gatepass
o Proof of approval for cargo
delivery where payment has
been made
o Cargo to be verified by Port
Auxiliary Police at exit gate

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
EXPORT ACTIVITY

o Export is the process of delivering goods and commodities from the one
country to another country.

o Goods for export may be produced or manufactured domestically, but

then sold to customers residing in other countries.

o Export is one of the biggest components of international trade and is part

of the criteria for measuring the economic value of a country.

o Before goods can be exported, cargo will be consolidated and packed

into container prior to loaded onto the ship.
EXPORT PROCESS FLOW

CONTAINER PACKING

Receive
empty
container
from depot

Freight
Container Container
booking Packing
move to loaded onto
with activity
warehouse ship
shipping line
Receive
cargo from
lorry
EXPORT PROCESS FLOW

CARGO RECEIVAL INTO WAREHOUSE

Cargo
Cargo Cargo moved
Lorry arrived updated into Cargo stored
unloaded into
at warehouse warehouse in warehouse
from lorry warehouse
inventory
EXPORT PROCESS FLOW

CARGO DELIVERY FROM WAREHOUSE

Order
Cargo Cargo Container
Cargo stored received
picking from packed into loaded onto
in warehouse from
inventory container vessel
customer
DOCUMENTS FOR CARGO RECEIVAL INTO WAREHOUSE

Goods Receival Document

o To update stock receival into
WMS
o Indicates location of cargo in
warehouse
o Clerk will do physical checking
upon receiving

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR CARGO RECEIVAL INTO WAREHOUSE

Delivery Order
o Document receive from lorry
driver
o Display amount or quantity of
the cargo

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR CARGO RECEIVAL INTO WAREHOUSE

Shipping Note
o Display details of consignor,
consignee and forwarding
agent.
o Document will be needed
before boarding on ship

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR CARGO RECEIVAL INTO WAREHOUSE

Invoice
o Supporting document of a
shipment
o Summarizes the description,
quantity and overall cost of
the cargo

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR PACKING ACTIVITIES

Custom Form
o In Malaysia, goods to export
must be declared with K2 or
ZB2 form
o K2 - Export for dutiable and
non-dutiable goods from
principal customs area
o ZB2 - Export for goods from
duty free area

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR PACKING ACTIVITIES

Export Planning
o Summary of Export containers to
stuffing by tenants
o Submitted to Supervisor to
nominate containers to deliver
to warehouse bay
o Submitted daily

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
DOCUMENTS FOR PACKING ACTIVITIES

Container Packing List

o List of containers to export.
o Displayed the booking no.,
container no., container size
type, seal no. and cargo
description.

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
SUMMARY

WAREHOUSE Warehouses in seaport terminal are usually located nearest to gate

OVERVIEW and be separated with traffic for mainline operations

A warehouse located in optimum location may improve its supply CHOOSING

chain, lowering dwell time and reduces shipment delays LOCATION

There are Free Zone warehouse, Bonded warehouse and General

TYPE OF warehouse. Movement of cargo between them may requires
WAREHOUSE different documentations and declarations

• FCL & LCL • Shortlanded & Overlanded

COMMON
• COC, SOC, NVOCC • Drayage & Shunting
TERMINOLOGY
• CFS & Distripark • Demurrage & Detention

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
SUMMARY

Educating yourself to potential challenges in warehousing will

WAREHOUSE
lead you into finding solutions that may reduce the amount of
CHALLENGES
damages caused by these errors.

• Design & Layout • Cargo Requirements

WAREHOUSE
• System & Software • Safety & Health
ELEMENTS
• Equipment • Sustainable Initiatives

Import and Export process may require different

PROCESS declarations to the Customs. Movement involves are
ACTIVITY movement of container and movement of cargo

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
LEARNING POINT

An attractive warehouse is located at

strategic location, incorporated with
practical elements, advanced
management system and simplified
processes to generate profitable business
venture despite global challenges.

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."
Thank You

NORTHPORT (MALAYSIA) BHD

Jalan Pelabuhan, Pelabuhan Utara
42000 Pelabuhan Klang
Selangor

"Please be informed that this document may not be reproduced or distributed without express written permission from Northport."