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Case Example: Inventory Control System: Background and Problems

The document summarizes a case study of an inventory control system implemented for a trading company in Singapore. The trading company purchases consumer products from China and repackages them for distribution to wholesalers and retailers in Singapore, Malaysia, and Indonesia. It was facing challenges from growing operations and a lack of automation leading to overwork and errors. The implemented inventory control system automated key processes like procurement, shipments, orders and reporting to improve efficiency by over 300% and reduce costs.

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lekhanh_y2k
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© Attribution Non-Commercial (BY-NC)
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Download as PDF, TXT or read online on Scribd
336 views

Case Example: Inventory Control System: Background and Problems

The document summarizes a case study of an inventory control system implemented for a trading company in Singapore. The trading company purchases consumer products from China and repackages them for distribution to wholesalers and retailers in Singapore, Malaysia, and Indonesia. It was facing challenges from growing operations and a lack of automation leading to overwork and errors. The implemented inventory control system automated key processes like procurement, shipments, orders and reporting to improve efficiency by over 300% and reduce costs.

Uploaded by

lekhanh_y2k
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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Case example: Inventory Control System

Customer profile Nature of business: Trading Purchases consumer products from China and repacks them. Distributes repackaged products to wholesalers and retailers in Singapore, Malaysia, and Indonesia.

Background and problems


Daily business operation involves procurement management, shipment schedule, consolidating sales orders, and delivery. Shortage of administrative personnel in handling the growing volume of supplies (Purchase Order), shipment schedule, and sales orders leads to overwork and increasing number of human errors. A trading company without a proper inventory control system to automate their manual tasks, spent more on resources in tracking records, schedules, and delivery information etc. Increasing the number of administrative staffs does not usually solve the daily operational problems. In contrast, automation of daily operating tasks can result in higher efficiently and eliminates business-related errors.

Challenge

1 2 3

Build a systematic inventory database for easy collection of product, batch, shipment, delivery, warehouse, re-ordering, goods return, suppliers, customers, information etc. Enhance daily business operation flow by integrating work processes. Generate quick reporting system for inventory product records, shipment and delivery schedules, damage and returned goods, sales performance, expenditure statements, cash-flow, etc.

Reason to the decision

Improvement after implementing the system


Point

1 2 3

Reasonable price and flexible customization Strong efficiency improvement for overall business operation. Provides critical reporting information for making important business decisions.

1 2 3

Improvement of efficiency at min. 300% High performance in inventory levels. Cost saving business operations using new and improved system processes.

Point

Point

Inventory Business Processes


1. Ordering Procedures (New Items)
Procurement management Create request order for agency Warehouse management Set reorder Point Order stock Supplier Receive stock

Request from Agency

Warehouse

2.

Stock Replenishment for Warehouse


Run materials requirement planning (MRP) Replenish stock? No Yes Warehouse Receive stock Creates order plans Order stock

Structure of the system


Database server Management server, web server Internet connection

Implementation schedule
1 month
st

nd

month

3 month

rd

Analysis and plan


Project planning Requirement gathering

Development
Design presentation

Deployment
User training User acceptance test

Implementation Analysis Design preparation System testing

Deployment Maintenance and support

Estimated budget ranges from S$7,000

Considerations about Management System for your company


Regardless of how advanced technology may be, if it does not fit your organization needs, you will not be able to take full advantage of it. If you are not sure that you can handle irregular tasks when all the operations are automated. If you are not sure if a management software can improve your daily tasks. After using any standard off-the-shelf software, if you have similar impressions as below: 1) there are too many unnecessary functions and I found it troublesome to use 2) our business has unusual (special) processes and standard off-the-shelf software cannot support. 3) I feel unnecessary operations (handling) are required to complete a task. Contact our consultant. Every company has different operation flows and managing processes. After hearing and understand the current situation and objectives from clients, we evaluate and analyze the management software and the network. We will provide suggestion for cost-effective and flexible software, which can adapt best to the changes.

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