Inventory Management
Inventory Management 1.0 Introduction
Inventory management is one of the main activities that cannot be ignored in an organization nowadays. An effective inventory management system should be carried out to ensure the right inventories to be supplied for the market demands to the particular organization. Besides that, inventory management system that control efficiently is one of the way to monitor the inventories especially those consists with shelf life to avoid any wastage due to expiration as well as to reduce the unnecessary costing caused by the exceeded inventories.
The company is a logistics company supplying medical products to the Orthopedics market in Malaysia that established on year 2009. The company not only provided warehousing services but also served transportation services, playing a role as an invoicing and tendering agent, monitoring the supply chain, inventory, accounts receivable, human resources and others customization services upon clients requirements. Among the years, the company has growth to be stronger and firmed to face the high competitive competitors such as Zuellig Pharma and Diethlem in the medical Orthopedics field.
2.0 Analysis and Finding of the scenario
The company was using Microsoft Dynamic AX based ERP system to capturing and monitoring the inventories. From the inventory report generated from the system, the company could be run the ABC – fast, slow and non-moving inventories analysis, review the inventories shelf life and take the necessary further action to work on the FEFO – first expired first out concept, plan for the cycle count to ensure the inventories accuracy, review the reordering process according to the reorder safety level to ensure the inventories sufficiency.
As per reviewed the consumption report and considered the shipment lead time, the company has a 3 months buffer inventories policy. However, the company still facing insufficient inventories issues due to the improper forecasting at the
Inventory management is one of the main activities that cannot be ignored in an organization nowadays. An effective inventory management system should be carried out to ensure the right inventories to be supplied for the market demands to the particular organization. Besides that, inventory management system that control efficiently is one of the way to monitor the inventories especially those consists with shelf life to avoid any wastage due to expiration as well as to reduce the unnecessary costing caused by the exceeded inventories.
The company is a logistics company supplying medical products to the Orthopedics market in Malaysia that established on year 2009. The company not only provided warehousing services but also served transportation services, playing a role as an invoicing and tendering agent, monitoring the supply chain, inventory, accounts receivable, human resources and others customization services upon clients requirements. Among the years, the company has growth to be stronger and firmed to face the high competitive competitors such as Zuellig Pharma and Diethlem in the medical Orthopedics field.
2.0 Analysis and Finding of the scenario
The company was using Microsoft Dynamic AX based ERP system to capturing and monitoring the inventories. From the inventory report generated from the system, the company could be run the ABC – fast, slow and non-moving inventories analysis, review the inventories shelf life and take the necessary further action to work on the FEFO – first expired first out concept, plan for the cycle count to ensure the inventories accuracy, review the reordering process according to the reorder safety level to ensure the inventories sufficiency.
As per reviewed the consumption report and considered the shipment lead time, the company has a 3 months buffer inventories policy. However, the company still facing insufficient inventories issues due to the improper forecasting at the