Name: Radhika Khandelwal

UID NO: 2019-1805-0001-0016

Section: B2B5 MR1

ASSIGNMENT NO 1
Steps for Improvement:
Following steps were implemented for Process Improvements: -
a) For each rack of CFA’s there was implementation of bin card system where in the
relevant bin card maintenance practices delivery staff was trained.
b) It was a mandate process to regularly reconcile physical and book stocks using the cycle-
count.
c) Taking all the factors into consideration an IT solution was implemented for the
following:
 Computing the forecast with the proper use of consolidated orders with factoring for
promotions and Seasonality.
 Accounting the Cycle count process, providing MIS on deviations and accounting the
adjustment notes.
 Depending and bases on the number of sales target calculating safety stock level
 Facilitating free flow and smooth communication of closing stock data from BSR and
depots to logistics department, similarly facilitating communication of damaged and un-
saleable stock quantity to commercial department.
 Allocating stocks by use of FIFO principle automatically at the depots
 Automatically allocating stocks using FIFO principle at the depots.

d) 4. BY using the above IT solution Demand planning and Forecasting were made a
periodic activity to align forecasting with market orders and actual sales. The process of
setting
e) Safety stocks at depots were made periodic, by the help of updated sales data.
f) 5. Norms and regulations were set to take care of damaged and unusefull dead stocks.
Needed actions were taken to destroy these stocks. Responsibility and accountability
were set into organization to monitor and authorize activities .
Benefits:
1. Within less time of 2 months the organization recorded of 95% of an inventory accuracy
2. Within 2 Months the company achieved: -
a. Stock level reduction from 8.2 weeks to 5.5 weeks at the BSR and from 6.5 weeks to 4 weeks
at the depots which included Damaged Inventory. Reduction in stock Value holding across the
supply chain
b. Transparency of saleable and damaged stocks quantities across the supply chain resulting in
more accurate demand planning, stock allocation and production.
c. Better management of damaged and un-saleable stocks:
 Sales realization on selling damaged stocks at a discounted price.
 Timely destruction of unusable and potentially harmful products.
 Timely action on transport, handling, stock management and product development fronts
to reduce damages.
d. Reduction in proportion of old and damaged stocks; Facilitation of ensuring fresher stocks in
the market. This was achieved mainly by reducing inventory levels across the chain and also by
better stock management at the depots.