In a series of studies a small project was handover to me to study the management, database, warehouses, stores and make SWOT Analysis

1. SWOT ANALYSIS
OF LOGISTICS AT
HNR
Presented to JAWAD KHAN (Logistics Manager HNR)
Analysis By
Hashim Khan
Institute of Management Studies
University of Peshawar

2. SWOT analysis of Logistics at HNR
Page 1
SWOT analysis of Logistics at HNR
Introduction
Haier is a leading manufacturer of a wide range of world-class home appliances. The company
achievements are a result of the spirit of excellence and devotion that pervades throughout the
organization. To meet the market demand and ensure on time delivery Haier has its own logistics
department which consist of HPK and HNR. HPK work outside the factory and deals with the market and
HNR works in the premises of factory and directly receives finished products from production department.
HPK receives orders from all over Pakistan and they make a demand order to HNR. HNR only provide
products to HPK. Containers are being loaded day and night at HNR which are further send to HPK and
is distributed across Pakistan by HPK. HNR having four warehouses in which three are product wise that
are REF, Washing Machine, and AC and the other is a big general warehouse. These warehouses perform
operation under the supervision and authority of Logistics department at HNR. These warehouses are
directly connected with production halls and receives finished products throughout the day. Finished units
are counted and ensured at warehouses and a daily production report is send to different departments.
The stock remains with the logistics department. HOD receives a stock transfer order which is further
communicated with particular warehouse. An officer in particular warehouse execute the plan as per
requirement and products are loaded in containers and these product are scanned and data is entered
into a database software known as warehouse management system (WMS). Once all units are scanned
they are dispatched.
Although logistics department is performing well in an effective manner it also faces problems, it has
some pros and cons. For that purpose a SWOT analysis is done to analyze the Internal and External
environment and to analyze the positive and negative aspects of the logistics at HNR.

3. SWOT analysis of Logistics at HNR
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4. SWOT analysis of Logistics at HNR
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Strengths
Separate warehouses
Separate warehouses for same range of products i.e. Refrigerator, DF, and Washing Machine
Ease of Receiving
Each warehouse is directly connected with production so it’s easy and cost less time to receive finalized
products
Barcode Scanner
Barcode scanner enables to make a database of products that is
communicated throughout the country.
Parking Space
Even more space for containers at the same time
Database System
Centralized database system give flexibility and ease to keep and
track record of each and every product that have been shipped
Accuracy
The record of the data is accurate and exact to the requirement
Experienced staff and skilled labor
The department is having skilled labors and experienced staff who can perform multi tasks in different
situations
Basic Resources
Logistics dept. have fulfilled the basic resources needed for operations at official
level
Smooth Communication
Communication is very smooth among logistics at Haier N Ruba, There is telephone
available at every disk and all the employees have access to the internet
Good Management Relationship
Management is successful to keep employee
Motivated by have strong coordination and
Good organizational relationships

5. SWOT analysis of Logistics at HNR
Page 4
Weaknesses
Space shortage
The warehouse have space shortage in case of low sales. It has the inability to store the required products
Shifting of finished product to other warehouse
Incur of extra cost by shifting products to other warehouse and it also cause a gap of supervision on those
products
Outdated barcode scanner and late delivery
The barcode scanner is outdated and sometime it stop functioning normally
which stop operations and increase time cost.
The bar code scanner cause late delivery and container remains in the
premises of factory for long time
Non-availability of normal working lifters
There are only two lifters, one is not working and the other make problems
most of the time
The non-availability of good working lifter cause manual handling of the
products and also increase manual work, labor cost and time cost
Low efficiency and effectiveness
Most of the time efficiency and affectivity is not achieved due to lack of resources necessary for
warehouse operation
Slow process due to Complexity of models, colors of Products
Process are slow due to receiving of product in different models, sizes and colors in mix form that is
difficult in arrangement

6. SWOT analysis of Logistics at HNR
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Opportunities
Improved Technology
Technology has improved it need to be implemented in logistics at HNR for
higher productivity
Bring new computer systems, lifters and latest Bar code scanner will
ultimately increase efficiency and effectiveness
Employees Productivity
Productivity of management and labors can be increased in terms of
trainings, visits and workshop outside the organization
Increasing demand
The population and demand in the market are simultaneously increasing
so the logistics have more opportunities and even more challenges. The
logistics have to respond to a big scale Seasonal variations, new fashion,
trends and new tastes has brought new demand for a customized product
and logistics can positively give response in these situation
Distribution Channels
A variety of new distribution channels are available for local and
regional geographic locations that can reduce transportation costs
Favorable Political Environment
Current political environment is more favorable and smooth so logistics
department can perform more efficiently

7. SWOT analysis of Logistics at HNR
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Threats
Irregular Production in Ref
Color, model, and size variation in production cause complexity in warehouse
Mislead due to semi-finished units
Semi-finished units in production in same warehouse creates problem and sometime that incomplete unit is
shipped and sold to customer
Dealers Dissatisfaction
Late delivery may cause dealers dissatisfaction and they may be unhappy and uncomfortable due to
customer demand. HNR may lag behind its competitors if on time delivery is not ensured
Updating of Technical and Mechanical Recourses
If latest technical and mechanical technology is not adopted by Warehouse system it company will lose
reputation in market due to late delivery, dealers dissatisfaction and customer demand
Removal of Obstacles
Obstacles like manual work, non-functioning of barcode scanner, non-availability of normal lifter might
cause bigger costs, improper handling, and labor dissatisfaction in logistics at HNR
Govt Regulations
Instability of political system and increasing of tax and fuel prices are
bigger threats so logistics must ensure to utilize all the available space in
containers to overcome these regulations
Demand Shifts
Demand shifts in market increase stock turnover days and that cause irregularity logistics.
Seasonal variations
The End