Case Study Inventory

{\rtf \ansi\ansicpg1252\deff0\viewkind1\margt750\margb620
{\fonttbl{\f11\fswiss\fcharset0 Arial Narrow;}{\f10\fswiss\fcharset0 Arial;}

{\f12\fswiss\fcharset0 Franklin Gothic;}{\f12\fswiss\fcharset0 Verdana;}
{\f20\froman\fcharset0 Times New Roman;}{\f21\froman\fcharset0 Garamond;}
{\f22\froman\fcharset0 Palatino Linotype;}{\f30\fmodern\fcharset0 Courier New;}
{\f31\fmodern\fcharset0 Lucida Console;}{\f40\ftech\fcharset2 Symbol;}
{\f50\fscript\fcharset0 Minion;}{\f60 Haettenschweiler;}}
\pgwsxn12240\pghsxn15840
{\colortbl;\red0\green0\blue0;\red0\green0\blue64;\red0\green0\blue128;\red0\green0
\blue192;\red0\green0\blue255;\red0\green64\blue0;\red0\green64\blue64;\red0\green6
4\blue128;\red0\green64\blue192;\red0\green64\blue255;\red0\green128\blue0;\red0\gr
een128\blue64;\red0\green128\blue128;\red0\green128\blue192;\red0\green128\blue255;
\red0\green192\blue0;\red0\green192\blue64;\red0\green192\blue128;\red0\green192\bl
ue192;\red0\green192\blue255;\red0\green255\blue0;\red0\green255\blue64;\red0\green
255\blue128;\red0\green255\blue192;\red0\green255\blue255;\red64\green0\blue0;\red6
4\green0\blue64;\red64\green0\blue128;\red64\green0\blue192;\red64\green0\blue255;\
red64\green64\blue0;\red64\green64\blue64;\red64\green64\blue128;\red64\green64\blu
e192;\red64\green64\blue255;\red64\green128\blue0;\red64\green128\blue64;\red64\gre
en128\blue128;\red64\green128\blue192;\red64\green128\blue255;\red64\green192\blue0
;\red64\green192\blue64;\red64\green192\blue128;\red64\green192\blue192;\red64\gree
n192\blue255;\red64\green255\blue0;\red64\green255\blue64;\red64\green255\blue128;\
red64\green255\blue192;\red64\green255\blue255;\red128\green0\blue0;\red128\green0\
blue64;\red128\green0\blue128;\red128\green0\blue192;\red128\green0\blue255;\red128
\green64\blue0;\red128\green64\blue64;\red128\green64\blue128;\red128\green64\blue1
92;\red128\green64\blue255;\red128\green128\blue0;\red128\green128\blue64;\red128\g
reen128\blue128;\red128\green128\blue192;\red128\green128\blue255;\red128\green192\
blue0;\red128\green192\blue64;\red128\green192\blue128;\red128\green192\blue192;\re
d128\green192\blue255;\red128\green255\blue0;\red128\green255\blue64;\red128\green2
55\blue128;\red128\green255\blue192;\red128\green255\blue255;\red192\green0\blue0;\
red192\green0\blue64;\red192\green0\blue128;\red192\green0\blue192;\red192\green0\b
lue255;\red192\green64\blue0;\red192\green64\blue64;\red192\green64\blue128;\red192
\green64\blue192;\red192\green64\blue255;\red192\green128\blue0;\red192\green128\bl
ue64;\red192\green128\blue128;\red192\green128\blue192;\red192\green128\blue255;\re
d192\green192\blue0;\red192\green192\blue64;\red192\green192\blue128;\red192\green1
92\blue192;\red192\green192\blue255;\red192\green255\blue0;\red192\green255\blue64;
\red192\green255\blue128;\red192\green255\blue192;\red192\green255\blue255;\red255\
green0\blue0;\red255\green0\blue64;\red255\green0\blue128;\red255\green0\blue192;\r
ed255\green0\blue255;\red255\green64\blue0;\red255\green64\blue64;\red255\green64\b
lue128;\red255\green64\blue192;\red255\green64\blue255;\red255\green128\blue0;\red2
55\green128\blue64;\red255\green128\blue128;\red255\green128\blue192;\red255\green1
28\blue255;\red255\green192\blue0;\red255\green192\blue64;\red255\green192\blue128;
\red255\green192\blue192;\red255\green192\blue255;\red255\green255\blue0;\red255\gr
een255\blue64;\red255\green255\blue128;\red255\green255\blue192;\red255\green255\bl
ue255;}
{\phpg\posx5932\pvpg\posy1233\absw3430\absh147 \f10 \fs15 \cf125 \f10 \fs15 \cf125
Makes Supply Chains Lightning Fast \par
}
Supply Chain Management / Supply Chain Consulting \par
}
{\phpg\posx1439\pvpg\posy3454\absw5675\absh532 \f10 \fs25 \cf3 \f10 \fs25 \cf3 CASE
STUDY
\par}{\phpg\posx1439\pvpg\posy3454\absw5675\absh532 \sl-321 \f10 \fs25 \cf3 {\b
Best}{\b Practices}{\b in}{\b Inventory}{\b Management }\par
}
{\phpg\posx1439\pvpg\posy5109\absw1908\absh417 \b \f10 \fs19 \cf51 \b \f10 \fs19
\cf51 K. Ravichandran
\par}{\phpg\posx1439\pvpg\posy5109\absw1908\absh417 \sl-251 \b \f10 \fs19 \cf51
Debjyoti Paul \par
}
{\phpg\posx6479\pvpg\posy4917\absw4417\absh5671 \f10 \fs21 \cf0 \f10 \fs21 \cf0 A
leading consumer products company
\par}{\phpg\posx6479\pvpg\posy4917\absw4417\absh5671 \sl-275 \f10 \fs21 \cf0
dealing in cosmetics and other personal
\par}{\phpg\posx6479\pvpg\posy4917\absw4417\absh5671 \sl-275 \f10 \fs21 \cf0 care
products was seeking ways to:
{\f0\fs28 \bullet } Reduce inventory levels across their
\par}{\phpg\posx6479\pvpg\posy4917\absw4417\absh5671 \sl-275 \f10 \fs21 \cf0 \fi359
forward supply chain
{\f0\fs28 \bullet } Improve Inventory Record Accuracy
at their storage points
{\f0\fs28 \bullet } Accurately track damaged goods at
various points in the supply chain
\par}{\phpg\posx6479\pvpg\posy4917\absw4417\absh5671 \sl-275 \f10 \fs21 \cf0 The
above problems together were a
significant burden to the company.
\par}{\phpg\posx6479\pvpg\posy4917\absw4417\absh5671 \sl-275 \par\f10 \fs21 \cf0
Implementation of best practices after a
detailed business analysis resulted in
\par}{\phpg\posx6479\pvpg\posy4917\absw4417\absh5671 \sl-275 \f10 \fs21 \cf0 the
following benefits:
{\f0\fs28 \bullet } Inventory Record Accuracy improved
to 95% within 2 months
{\f0\fs28 \bullet } Stock levels reduced by about 30%
across stocking points in the supply
chain
{\f0\fs28 \bullet } Complete visibility was achieved in
the supply chain with respect to
damaged goods inventory \par
}
Email:{\cf5 {\ul d}{\ul e}{\ul b}{\ul j}{\ul y}{\ul o}{\ul t}{\ul i}{\ul _}{\ul p}
{\ul a}{\ul u}{\ul l}{\ul @}{\ul s}{\ul i}{\ul f}{\ul y}{\ul c}{\ul o}{\ul r}{\ul
p}{\ul .}{\ul c}{\ul o}{\ul m}} /{\cf5 {\ul k}{\ul _}{\ul r}{\ul a}{\ul v}{\ul i}
{\ul c}{\ul h}{\ul a}{\ul n}{\ul d}{\ul r}{\ul a}{\ul n}{\ul @}{\ul s}{\ul i}{\ul
f}{\ul y}{\ul c}{\ul o}{\ul r}{\ul p}{\ul .}{\ul c}{\ul o}{\ul m} }\par
}
Sify Ltd, India \par
}
\sect\sectd\pard\plain
}
\cf0 Organisation Background:
\par}{\phpg\posx1439\pvpg\posy2169\absw3111\absh703 \sl-275 \par\b \f10 \fs21 \cf0
{\b0 The}{\b0 firm}{\b0 was}{\b0 a}{\b0 leading }\par
}
consumer \par
}
\cf0 Focus of Study
{\b0 A}{\b0 study}{\b0 was}{\b0 completed}{\b0 focusing}{\b0 on}{\b0 the }
{\b0 1.}{\b0 Inventory-related}{\b0 issues}{\b0 at}{\b0 BSRs }
\fi359 {\b0 and}{\b0 depots.}{\b0 These}{\b0 included: }\par
}
{\phpg\posx6839\pvpg\posy3553\absw238\absh1225 \f10 \fs21 \cf0 {\f0\fs27
\bullet }\f10 \fs21 \cf0
{\f0\fs27 \bullet }
{\f0\fs27 \bullet } \par
}
Inventory holding as a proportion
\par}{\phpg\posx7291\pvpg\posy3549\absw3555\absh455 \sl-275 \f10 \fs21 \cf0 of
sales \par
}
Practices employed for
\par}{\phpg\posx7291\pvpg\posy4101\absw2834\absh455 \sl-275 \f10 \fs21 \cf0 goods
in the warehouse \par
}
Proportion of \par
}
moving
inventory \par
}
stocks \par
}
{\phpg\posx9067\pvpg\posy4653\absw439\absh455 \f10 \fs21 \cf0 \f10 \fs21 \cf0 fast
to \par
}
{\phpg\posx9688\pvpg\posy4653\absw462\absh455 \f10 \fs21 \cf0 \f10 \fs21 \cf0 and
the \par
}
track
\fi43 slow
total \par
}
products company dealing in cosmetics
\par}{\phpg\posx1439\pvpg\posy2997\absw4403\absh703 \sl-275 \f10 \fs21 \cf0 and
personal care products with its head
\par}{\phpg\posx1439\pvpg\posy2997\absw4403\absh703 \sl-275 \f10 \fs21 \cf0 office
located overseas. The company \par
}
{\phpg\posx1439\pvpg\posy3825\absw1007\absh455 \f10 \fs21 \cf0 \f10 \fs21 \cf0 had
a
factories \par
}
{\phpg\posx1439\pvpg\posy4377\absw787\absh455 \f10 \fs21 \cf0 \f10 \fs21 \cf0 (BSR)

depots \par
}
supply
with \par
}
{\phpg\posx3251\pvpg\posy3825\absw885\absh455 \f10 \fs21 \cf0 \fi88 \f10 \fs21 \cf0
chain
bonded \par
}
for \par
}
network
stock \par
}
{\phpg\posx5200\pvpg\posy3825\absw245\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 of
\par
}
{\phpg\posx5625\pvpg\posy3825\absw165\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 3
\par
}
rooms
\par}{\phpg\posx5035\pvpg\posy4101\absw801\absh455 \sl-275 \f10 \fs21 \cf0 to the
\par
}
attached
and 35 \par
}
despatch \par
}
depots \par
}
for \par
}
{\phpg\posx4701\pvpg\posy4653\absw1154\absh455 \f10 \fs21 \cf0 \fi115 \f10 \fs21
\cf0 servicing
\par}{\phpg\posx4701\pvpg\posy4653\absw1154\absh455 \sl-275 \f10 \fs21 \cf0 from
the \par
}
distributors. \par
}
{\phpg\posx2923\pvpg\posy4929\absw779\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 Goods
\par
}
move \par
}
factory to the BSR. BSR despatches
\par}{\phpg\posx1439\pvpg\posy5205\absw4405\absh3613 \sl-275 \f10 \fs21 \cf0 stocks
to Mother CFAs (depot). Other
\par}{\phpg\posx1439\pvpg\posy5205\absw4405\absh3613 \sl-275 \f10 \fs21 \cf0 depots
receive stocks from the Mother
\par}{\phpg\posx1439\pvpg\posy5205\absw4405\absh3613 \sl-275 \f10 \fs21 \cf0 depot
and sell them to distributors.
{\b Key}{\b Concerns}{\b for}{\b the}{\b Company: }
\par}{\phpg\posx1439\pvpg\posy5205\absw4405\absh3613 \sl-275 \par\f10 \fs21 \cf0 1.
To reduce inventory level at the BSR
and depots.
\par}{\phpg\posx1439\pvpg\posy5205\absw4405\absh3613 \sl-275 \f10 \fs21 \cf0 2. To
improve inventory accuracy at
stocking points including both BSRs
and depots
\par}{\phpg\posx1439\pvpg\posy5205\absw4405\absh3613 \sl-275 \f10 \fs21 \cf0 3. To
identify the damaged stocks
across the chain and initiate action in
a timely manner \par
}
\bullet }\f10 \fs21 \cf0 \par
}
Linkages of factory dispatches to
\par}{\phpg\posx7291\pvpg\posy5481\absw3647\absh1200 \sl-275 \f10 \fs21 \cf0 BSR
with patterns of BSR
dispatches to depots
Accuracy of inventory records
especially of fast selling lines \par
}
}
{\phpg\posx6479\pvpg\posy6861\absw1368\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 2.
Demand \par
}
Planning \par
}
process. \par
}
The \par
}
study looked at:
{\f0\fs27 \bullet } Forecast Accuracy and process
of reviewing and revising \par
}
}
forecasts
\par}{\phpg\posx7291\pvpg\posy7965\absw3562\absh952 \sl-275 \f10 \fs21 \cf0 Level
of safety stock at each
location combined with process
\par}{\phpg\posx7291\pvpg\posy7965\absw3562\absh952 \sl-275 \f10 \fs21 \cf0 to
review and reset the same \par
}
Linkages
consequent \par
}
{\phpg\posx8575\pvpg\posy9069\absw245\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 of
\par
}
\cf0 forecasts
despatches \par
}
\cf0 and
\par}{\phpg\posx10375\pvpg\posy9069\absw483\absh455 \sl-275 \f10 \fs21 \cf0 with
\par
}
}
relevant available closing stocks
\par}{\phpg\posx7291\pvpg\posy9621\absw3508\absh455 \sl-275 \f10 \fs21 \cf0 at
depots \par
}
}
}
}
\cf0 Findings
{\b0 {\ul K}{\ul e}{\ul y}}{\b0 {\ul }{\ul B}{\ul u}{\ul s}{\ul i}{\ul n}{\ul e}
{\ul s}{\ul s}}{\b0 {\ul }{\ul I}{\ul n}{\ul d}{\ul i}{\ul c}{\ul a}{\ul t}{\ul o}
{\ul r}{\ul s} }
{\b0 1.}{\b0 Total}{\b0 average}{\b0 inventory}{\b0 holding}{\b0 at }
\fi360 {\b0 BSRs}{\b0 was}{\b0 8.2}{\b0 weeks}{\b0 of}{\b0 sales }
{\b0 2.}{\b0 Average}{\b0 inventory}{\b0 holding}{\b0 at}{\b0 the }
\fi360 {\b0 depots}{\b0 was}{\b0 6.5}{\b0 weeks}{\b0 of}{\b0 sales }
{\b0 3.}{\b0 Depots}{\b0 were}{\b0 holding }\par
}
}
{\phpg\posx2251\pvpg\posy4101\absw3540\absh952 \f10 \fs21 \cf0 \f10 \fs21 \cf0 High
inventory of old/withdrawn
\par}{\phpg\posx2251\pvpg\posy4101\absw3540\absh952 \sl-275 \f10 \fs21 \cf0 stocks
\par}{\phpg\posx2251\pvpg\posy4101\absw3540\absh952 \sl-275 \f10 \fs21 \cf0 Damaged
stocks for a long time
\par}{\phpg\posx2251\pvpg\posy4101\absw3540\absh952 \sl-275 \f10 \fs21 \cf0 (over 3
months) \par
}
High Levels of Old / Withdrawn /
Damaged / Slow-moving stocks:
Dead stocks were allowed to \par
}
accumulate
because: \par
}
}
{\phpg\posx7291\pvpg\posy3549\absw840\absh455 \f10 \fs21 \cf0 \f10 \fs21 \cf0 There

visibility \par
}
in
was \par
}
{\phpg\posx8635\pvpg\posy2997\absw563\absh703 \f10 \fs21 \cf0 \f10 \fs21 \cf0 the
\fi247 an \par
}
system \par
}
mainly \par
}
absence \par
}
of \par
}
into \par
}
inventory \par
}
details \par
}
}
Book \par
}
and \par
}
physical \par
}
stocks \par
}
had \par
}
}
across stocking points
\par}{\phpg\posx7291\pvpg\posy4101\absw3536\absh1200 \sl-275 \f10 \fs21 \cf0 The
process to monitor and act
\par}{\phpg\posx7291\pvpg\posy4101\absw3536\absh1200 \sl-275 \f10 \fs21 \cf0 on
dead stocks was not adhered
Records of slow-moving / old / \par
}
withdrawn
\par}{\phpg\posx7291\pvpg\posy5481\absw1151\absh455 \sl-275 \f10 \fs21 \cf0 were
\par
}
/
\par}{\phpg\posx8546\pvpg\posy5481\absw376\absh455 \sl-275 \f10 \fs21 \cf0 not \par
}
damaged \par
}
stocks \par
}
\cf0 maintained
stocking \par
}
\cf0 discrepancy of over 30%
{\ul C}{\ul o}{\ul n}{\ul c}{\ul l}{\ul u}{\ul s}{\ul i}{\ul o}{\ul n}{\ul s} \par
}
High
levels \par
}
Inventory
were very \par
}
Levels:
high \par
}
methodically \par
}
{\phpg\posx8879\pvpg\posy6033\absw228\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 at
\par
}
\cf0 Inventory
\par}{\phpg\posx4540\pvpg\posy6309\absw1304\absh455 \sl-275 \f10 \fs21 \cf0 across
the \par
}
distribution chain on account of:
{\f0\fs28 \bullet } Sales and despatch forecasts
that were not in line with actual
primary / secondary sales
{\f0\fs28 \bullet } There was no process to \par
}
{\phpg\posx6479\pvpg\posy6309\absw4422\absh3436 \f10 \fs21 \cf0 \fi811 \f10
\fs21 \cf0 points. Records were inaccurate.
{\f0\fs28 \bullet } Communication of details of dead
stocks to the relevant teams was
based on manually filed reports
which was time-taking and open
to error
\par}{\phpg\posx6479\pvpg\posy6309\absw4422\absh3436 \sl-275 \f10 \fs21 \cf0 3.
Inaccuracy in inventory records:
{\f0\fs28 \bullet } The organisation did not have a
clear policy on periodic
reconciliation of physical stock
with book records
{\f0\fs28 \bullet } Inaccuracies grew over time,
compounded with process failure
on accounting for dead stocks \par
}
}
periodically review and refine the
\par}{\phpg\posx2251\pvpg\posy8241\absw3577\absh1945 \sl-275 \f10 \fs21 \cf0 Annual
Forecasts, in line with
\par}{\phpg\posx2251\pvpg\posy8241\absw3577\absh1945 \sl-275 \f10 \fs21 \cf0 market
feedback
Stocking across all points in the
distribution chain was driven by
\par}{\phpg\posx2251\pvpg\posy8241\absw3577\absh1945 \sl-275 \f10 \fs21 \cf0 a
push-oriented system that did
\par}{\phpg\posx2251\pvpg\posy8241\absw3577\absh1945 \sl-275 \f10 \fs21 \cf0 not
have provisions to be tuned
market requirements \par
}
\bullet }\f10 \fs21 \cf0 Actual safety stocks maintained
\fi359 at depots were significantly
\fi359 higher that target safety stocks
\fi359 agreed at the beginning of the
\fi359 year. No system was in place to
\fi359 monitor and correct the same \par
}
}
during the year
Stock allocation from depots was
manual. Orders received from
distributors were manually
processes and no process was
in place to automatically collate
orders and allocate stocks \par
}
}
}
}
{\phpg\posx1439\pvpg\posy2169\absw819\absh207 \b \f10 \fs21 \cf0 \b \f10 \fs21 \cf0
Action \par
}
Steps \par
}
\cf0 Advised \par
}
and \par
}
action \par
}
{\phpg\posx7699\pvpg\posy2169\absw630\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 steps
\par
}
\cf0 Undertaken
{\b0 {\ul P}{\ul r}{\ul o}{\ul c}{\ul e}{\ul s}{\ul s}}{\b0 {\ul }{\ul I}{\ul m}
{\ul p}{\ul r}{\ul o}{\ul v}{\ul e}{\ul m}{\ul e}{\ul n}{\ul t}{\ul s} }
\par}{\phpg\posx1439\pvpg\posy2445\absw4424\absh2939 \sl-275 \b \f10 \fs21 \cf0 1.
{\b0 Bin}{\b0 card}{\b0 system}{\b0 was}{\b0 implemented }
\fi360 {\b0 for}{\b0 each}{\b0 rack}{\b0 at}{\b0 the}{\b0 CFAs}{\b0
and}{\b0 the }
\fi360 {\b0 delivery}{\b0 staff}{\b0 was}{\b0 trained}{\b0 in}{\b0 relevant }
\fi360 {\b0 bind}{\b0 card}{\b0 maintenance}{\b0 practices. }
{\b0 2.}{\b0 A}{\b0 process}{\b0 to}{\b0 regularly}{\b0 reconcile }
\fi360 {\b0 physical}{\b0 and}{\b0 book}{\b0 stocks}{\b0 using}{\b0 the }
\fi360 {\b0 cycle-count}{\b0 process}{\b0 was}{\b0 mandated }
\par}{\phpg\posx1439\pvpg\posy2445\absw4424\absh2939 \sl-275 \b \f10 \fs21 \cf0 3.
{\b0 An}{\b0 IT}{\b0 solution}{\b0 was}{\b0 identified}{\b0 and }
\fi360 {\b0 implemented}{\b0 for }\par
}
}
Accounting
process,
deviations \par
}
the \par
}
{\phpg\posx4307\pvpg\posy5757\absw696\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 Cycle
\par
}
{\phpg\posx5169\pvpg\posy5757\absw663\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 count
\par
}
providing \par
}
and \par
}
MIS \par
}
liquidate \par
}
{\phpg\posx7917\pvpg\posy2445\absw263\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 or
\par
}
\cf0 were
destroy \par
}
laid \par
}
down \par
}
to \par
}
{\phpg\posx9280\pvpg\posy2445\absw646\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 these
\par
}
stocks. \par
}
Responsibility \par
}
and \par
}
accountability \par
}
{\phpg\posx6839\pvpg\posy2997\absw4012\absh952 \f10 \fs21 \cf0 \f10 \fs21 \cf0 were
set to in the organisation to
\par}{\phpg\posx6839\pvpg\posy2997\absw4012\absh952 \sl-275 \f10 \fs21 \cf0 monitor
and authorise activities in
\par}{\phpg\posx6839\pvpg\posy2997\absw4012\absh952 \sl-275 \f10 \fs21 \cf0 this
regard based on visibility
provided by the IT solution. \par
}
accounting \par
}
on
\par}{\phpg\posx5423\pvpg\posy6033\absw383\absh455 \sl-275 \f10 \fs21 \cf0 the \par
}
adjustment notes \par
}
Computing
consolidated \par
}
factoring \par
}
the \par
}
}
forecast
orders, \par
}
for \par
}
promotions \par
}
}
seasonality
Calculating \par
}
safety \par
}
{\phpg\posx4499\pvpg\posy7965\absw630\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 stock
\par
}
using
with
and
\fi81 level \par
}
based on number of weeks of
\par}{\phpg\posx2251\pvpg\posy8241\absw3564\absh1697 \sl-275 \f10 \fs21 \cf0 sales
target
Facilitating communication of
closing stock data from BSR and
\par}{\phpg\posx2251\pvpg\posy8241\absw3564\absh1697 \sl-275 \f10 \fs21 \cf0 depots
to logistics department
Facilitating communication of
damaged and un-saleable stock \par
}
quantity
department
Automatically \par
}
using
depots \par
}
Demand \par
}
to \par
}
commercial \par
}
}
}
}
\cf0 FIFO
planning \par
}
\cf0 allocating
principle \par
}
and \par
}
\cf0 stocks
\par}{\phpg\posx4984\pvpg\posy10725\absw847\absh455 \sl-275 \f10 \fs21 \cf0 at
the \par
}
forecasting \par
}
{\phpg\posx1439\pvpg\posy11829\absw5799\absh2720 \f10 \fs21 \cf0 \fi360 \f10
\fs21 \cf0 were made a periodic activity using
\fi360 the above IT solution to align
\fi360 forecasting with market orders and
\fi360 actual sales. The process of setting
\fi360 safety stocks at depots was made
\fi360 periodic and dynamic, based on
\fi360 updated sales data.
\par}{\phpg\posx1439\pvpg\posy11829\absw5799\absh2720 \sl-275 \f10 \fs21 \cf0 5.
Norms were set to act on damaged /
\fi360 old and other dead stocks. Clear
{\fs16 \cf3 Email:}{\fs16 \cf5 {\ul d}{\ul e}{\ul b}{\ul j}{\ul y}{\ul o}{\ul t}
{\ul i}{\ul _}{\ul p}{\ul a}{\ul u}{\ul l}{\ul @}{\ul s}{\ul i}{\ul f}{\ul y}{\ul
c}{\ul o}{\ul r}{\ul p}{\ul .}{\ul c}{\ul o}{\ul m}}{\fs16 \cf3 /}{\fs16 \cf5
{\ul k}{\ul _}{\ul r}{\ul a}{\ul v}{\ul i}{\ul c}{\ul h}{\ul a}{\ul n}{\ul d}{\ul
r}{\ul a}{\ul n}{\ul @}{\ul s}{\ul i}{\ul f}{\ul y}{\ul c}{\ul o}{\ul r}{\ul p}{\ul
.}{\ul c}{\ul o}{\ul m} }\par
}
}
}
\cf0 Benefits:
{\b0 1.}{\b0 The }\par
}
organisation \par
}
inventory \par
}
stocks \par
}
record \par
}
\cf0 achieved
accuracy \par
}
\cf0 an
\par}{\phpg\posx5157\pvpg\posy2721\absw680\absh455 \sl-275 \f10 \fs21 \cf0 (book
\par
}
correctly \par
}
reflecting \par
}
physical \par
}
\cf0 stocks) of 95% within 2 months .
\par}{\phpg\posx1439\pvpg\posy3549\absw4081\absh703 \sl-275 \f10 \fs21 \cf0 2. The
company achieved (Within
Planning cycles i.e. 2 Months) \par
}
{\phpg\posx1799\pvpg\posy4377\absw245\absh980 \f10 \fs21 \cf0 \f10 \fs21 \cf0 a.
{\f0\fs28 \bullet }
}
{\phpg\posx5625\pvpg\posy3825\absw165\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 2
\par
}
Stock level reduction
\par}{\phpg\posx2251\pvpg\posy4377\absw3572\absh5175 \sl-275 \f10 \fs21 \cf0 From
8.2 weeks to 5.5 weeks at
BSR
\par}{\phpg\posx2251\pvpg\posy4377\absw3572\absh5175 \sl-275 \f10 \fs21 \cf0 From
6.5 weeks to 4 weeks at
depots which included
Damaged Inventory
Reduction in stock Value holding
the supply chain
Transparency of saleable and
damaged stocks quantities
the supply chain resulting
\par}{\phpg\posx2251\pvpg\posy4377\absw3572\absh5175 \sl-275 \f10 \fs21 \cf0 in
more accurate demand
planning, stock allocation and
production.
\par}{\phpg\posx2251\pvpg\posy4377\absw3572\absh5175 \sl-275 \f10 \fs21 \cf0 Better
management of damaged
un-saleable stocks:
\par}{\phpg\posx2251\pvpg\posy4377\absw3572\absh5175 \sl-275 \f10 \fs21 \cf0 Sales
realisation on salvaging
selling damaged stocks at a
discounted price
\par}{\phpg\posx2251\pvpg\posy4377\absw3572\absh5175 \sl-275 \f10 \fs21 \cf0 Timely
destruction of unusable
potentially harmful products \par
}
Timely
handling, \par
}
action
stock \par
}
on \par
}
transport, \par
}
management \par
}
b. \par
}
{\phpg\posx1799\pvpg\posy8241\absw245\absh732 \f10 \fs21 \cf0 \f10 \fs21 \cf0 c.
}
}
d. \par
}
and product development fronts
reduce damages
Reduction in proportion of old
damaged stocks; Facilitation
\par}{\phpg\posx2251\pvpg\posy10725\absw3578\absh1200 \sl-275 \f10 \fs21 \cf0 of
ensuring fresher stocks in the \par
}
market.
mainly \par
}
{\phpg\posx3343\pvpg\posy12105\absw504\absh207 \f10 \fs21 \cf0 \f10 \fs21 \cf0 This
\par
}
by \par
}
was \par
}
reducing \par
}
achieved
inventory \par
}
levels across the chain and also
\par}{\phpg\posx2251\pvpg\posy12657\absw3524\absh703 \sl-275 \f10 \fs21 \cf0 by
better stock management at
depots \par
}
}
}
}

Case Study Inventory

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Case Study Inventory

Загружено:

Авторское право:

Доступные форматы

{\rtf \ansi\ansicpg1252\deff0\viewkind1\margt750\margb620

{\fonttbl{\f11\fswiss\fcharset0 Arial Narrow;}{\f10\fswiss\fcharset0 Arial;}

\par}{\phpg\posx1439\pvpg\posy4377\absw787\absh455 \sl-275 \f10 \fs21 \cf0

\par}{\phpg\posx7291\pvpg\posy3549\absw840\absh455 \sl-275 \f10 \fs21 \cf0

Вам также может понравиться