Professional Documents
Culture Documents
Case Study: Best Practices in Inventory Management
Case Study: Best Practices in Inventory Management
CASE STUDY
Best Practices in Inventory Management
The firm was a leading consumer A study was completed focusing on the
products company dealing in cosmetics 1. Inventory-related issues at BSRs
and personal care products with its head and depots. These included:
office located overseas. The company Inventory holding as a proportion
had a supply chain network of 3 of sales
factories with bonded stock rooms Practices employed for track
(BSR) attached for despatch to the goods in the warehouse
depots and 35 depots for servicing Proportion of fast and slow
distributors. Goods move from the moving stocks to the total
factory to the BSR. BSR despatches inventory
stocks to Mother CFAs (depot). Other Linkages of factory dispatches to
depots receive stocks from the Mother BSR with patterns of BSR
depot and sell them to distributors. dispatches to depots
Accuracy of inventory records
Key Concerns for the Company: especially of fast selling lines
2. Demand Planning process. The
1. To reduce inventory level at the BSR study looked at:
and depots. Forecast Accuracy and process
2. To improve inventory accuracy at of reviewing and revising
stocking points including both BSRs forecasts
and depots Level of safety stock at each
3. To identify the damaged stocks location combined with process
across the chain and initiate action in to review and reset the same
a timely manner Linkages of forecasts and
consequent despatches with
relevant available closing stocks
at depots
Benefits: