Inventory Management

Interest in mobile inventory management continues to

grow. According to a report, approximately 80 percent of
retailers plan to increase spending on their mobile
initiatives by more than 20 percent this year.
In the past two decades Samsung has changed its
policy over Inventory management drastically. It has
realized that storing up inventory in field of Mobile
manufacturing can be a very big liability and it causes
loss.

 Different ways used by Samsung to manage its inventory are

1- Reducing cycle time- Samsung realized that manufacturing of Silicon
wafers is includes a lot of unproductive time which increases the cycle
time of whole operation. To remove this problem, it introduced SLIM
model.
2- Samsung produces most of its inventory in 3rd quarter of financial
year to address the increase in demand at end of year.
3- Samsung makes most of its inventory in house, so they can easily
regulate the amount.

Difference in approach Two companies have a very different approach when it

comes to inventory management.
1- Apples keeps very little inventory on hand to reduce
the cost of warehouse.
2- Apple has lowered down the number of suppliers so
it enable them to have better relationship with them.
3- Apple currently keeps inventory of only 3-4 days in
hand.