Reducing Apple’s Inventory to Create Customer Value-Proposal
Topic One: Supply lead time
In Company X Material and Service delivery are the core activities of its supply department, hence maintaining a healthy Supply Lead Time is an important KPI, in this exercise student will be required to :
Review the current supply business process for services and materials, and deliver an as is process documents. The document should highlight the following:
Each sub process stakeholder
Sub Process duration
If the sub process is manual or systemize
Analyze the process and identify bottlenecks.
Review the business process documents with different involved stake holder and Identify are of improvements
Submit new re-engineered business process highlighting area of improvement
Topic Two: Reducing inventory Value
In Company X, Excess inventory inflates extra storage space and costs as well as loss of profit, reduce the items provision value. When you hold onto inventory more than what is needed, you’re paying for the space and resources etc to hold that inventory. You’re also paying for labor and transportation fees to move the stock around. Students are required to
Study Company X inventory value
Identify the reason of Company X store cost
Prepare a plan to reduce Company X inventory value
Topic Three: Inventory Barcoding
Manually controlling inventory can be time-consuming and error-prone. Any business can run in to trouble if all processes are conducted manually. Barcode software can be a hugely beneficial tool for inventory management. This software eliminates the risk of inventory control mishaps which can occur when relying solely on manual processes. Company X have recently floated a tender in the market for store barcoding using barcode and RFID latest technology, students are required to help Company X business in evaluating the submitted technical offers from different suppliers, review the market latest technology, bench mark and come up with recommendations to management highlighting the importance of barcoding .
Topic Four: The ABC System
The ABC classification system is a method used to classify inventory based on several factors, That means how much of a high dollar value amount an item needs to register as close inventory control status.
Class A: 5-15% of all inventory items account for 70-80% of the total dollar value of inventory
Class B: 30% of total inventory units, 15% of total inventory dollar value
Class C: 50-60% of inventory units, 5-10% of total dollar value
ABC analysis is important for the subject of how to reduce inventory because each class of inventory requires a different level of inventory monitoring and control.
The higher the value of the inventory, the tighter the control. With this concept in mind, Class A, which holds the highest total dollar value of inventory percentage, would need the tightest control on reduced inventory levels. Since Class B and C make up a significantly less portion of the total dollar value of inventory percentage, they require less strict inventory control.
Obviously the percentage levels of each class will vary based on the size of your total inventory, but these are good concepts to keep in mind. You want to keep an eye on your items holding the biggest total value. If you order too much and it never gets used, that’s a whole lot of cash flow that could have been used somewhere else. Keep a tight control over this class of inventory and allow a little more wiggle room for the smaller classes.
Students are required to study and analyze Company X store line items and develop and ABC System using Company X store management solution