Electricity Inventory Integrity and Accuracy in the Inventory Management

Inventory management mean method that are used to planning, forecasting and replenishment stock. The main goal is to keep the inventory on optimal level, that is without stock out and excess. Inventory management involve determining how to order the goods and how much to order as well as identify the most effective way or source of supply for each item in each stocking location, Inventory management is an unpredictable procedure, especially for bigger associations, however the basics are basically the same regardless to the organization size or type. In inventory management, goods are delivered into the receiving area of a distribution centre in the form of raw material or component and are put into stock areas or shelves. Inventory management are use a variety of data to know where the goods are move through the process, include serial number, cost of goods, lot number, dates when they move through process and quantity of goods. Below is some product that are in 99 Speedmart warehouse.

Issues:

The issues in keeping up stock accuracy and integrity would be varied among local and multinational companies as they are implement inventory management that are contrast to each other in such significant number of ways. So, does 99 Speedmart where their inventory management contrast from those huge multinational corporation (MNCs’) such as Tesco and Giant. Local companies choose for lower inventory level to ease in management and for economic purpose as far as cash flow or space.99 Speedmart guaranteed that they are implementing advanced logistic system in their distribution centres to cover more than 300 mini market al through entire Klang Valley. For every mini market, a average of 300 units of inventory are stored and the company claimed that the inventory is all managed with high buffer stock in hand. In any case, because of lack planning for their entire store supply chain, 99 Speedmart generally stock more than their ability, that will cause to unmanageable stock leading to breach in inventory accuracy and integrity.

99 Speedmart is still conducting manual daily cycle count instead of framework or system suggested cycle count. Actualizing manual count is laborious, tedious and prone errors. The issues end up noticeably greater if any of the staffs don’t perform regular stock check making issues with the distinctions of the real quantity in hand and the data in inventory. Theft cases could likewise be overseen as the inventory management is out of control if no legitimate checking is done. In spite of the fact that the companies, 99 Speedmart guaranteed that they are keeping high in-stock amount to help every mini market as specified in their website, the company would confront issues if they were sudden shock of high demand for some goods or product. This could happen because of the fact that manual scanning could not confirmed that the inventory is up-to-date and minimum re-order level might be overseen due to errors or improper inventory management.

Product availability may add to the want to purchase by customer. If the demanded goods in 99 Speedmart are out of stock due and renewal is impossible due to long lead time, the company can possibly lose customer as they will swing to another retailer to purchase. Security in 99 Speedmart is inadequate where there is not sufficient security guard to secure the entire distribution centre. There are many cases among staff where the staff themselves stole the goods particularly among foreign workers in distribution centre who take the goods. An outlet does not have security watches at all and both staff and customer accepted this opportunity to take the goods. This is another factor why physical inventory does not coordinate against the system. Beside that, the checking of inbound from supplier is not done appropriately brought about stock disparities.

Strategy:

In order to improve 99 Speedmart inventory, 99 Speedmart should implement bar code with radio frequency(RF) scanner in inventory control. By using RF scanner, there no need paper to write the inventory. The staff just pick list appears on the screen and it show what need to pick and where to find it. Then, when arrived at the inventory location, staff use the RF scanner to scan the barcode on the shelf, which to confirm that the staff go to the right place. To confirm whether the item is correct or not, the staff can scan the item. Then, staff can use the same step on the next item on the list until complete. RF gun enhance the procedure on the receiving end of a shipment also. They make it less demanding to accept a delivery, move the things into stock and make change if needed. The procedure utilizes the scanning gun to do the put away process such as when the shipment comes in, staff can scan the barcode to enter the inventory into the system and take in the rack area. You would be able to have it moved to the right area.

Tools:

Based on the issue occur in 99 Speedmart, we proposed Radio Frequency Identification (RFID) label which is more progress, advance and reliable than barcode reading. A RFID tag, which is microchip with radio wire, would be put on physical item or object and RFID reader can detect the movement and presence of the item through 99 Speedmart supply chain. The inventory movement can be follow or track from the purpose of manufacturing to point of sales. There are few huge retailers such as Tesco and Giant had actualized and implement successfully this system. There are few advantage of Radio Frequency Identification (RFID) such as the tag code data is 100% secure and cannot be changed or copied so the companies can deal with the inventory well and can detect if got any theft. The tag can remain in outrageous condition and temperature, it available in great range of type, sizes and materials. RFID no need for physical content between the data carrier and communication devices. The tag can be utilized over and it cause low maintenance cost. Other than that, there no need line of sight necessary to read or write data. This make it possible to use tags in harsh environment and in closed container or structure. When using barcode scanners have to have line of sight to read them. By using RFID, it is extremely low error rate, long read range, portable database and also can multiple tags read, tracking people, it and equipment in real time.it shown that Radio Frequency Identification (RFID) is suitable tools to manage the issue that 99 Speedmart face.