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Qureshi Traders

INVENTORY MANAGEMENT

InventoryInventory is the physical Stock of goods

maintained in an organization for its smooth

running.

Also Stock of Finished Goods

Also Inventory is unsold goods purchased or

manufactured

Nature of Inventories Raw materials

Those Inputs converted into finished products though the manufacturing process

Work in progress

Semi manufactured products Finished goods

Those completely manufactured products.

Functions of inventory

To meet anticipated customer demand

To smooth production requirements

To decouple operation

To protect against stock-outs

Functions of inventory

To take advantage of order cycle

To hedge against price increase

To permit operations

Inventory Management

It refers to the process of managing the stocks of

finished products, semi-finished products and raw

materials by a firm.

Inventory management, if done properly, can bring

down costs and increase the revenue of a firm.

An activity of Planning an inventory control policy.

Introduction of Nestle

Nestle is a multinational company and is known as a

world’s leading business today for food

Henri Nestle was the founder of the corporation,

was established in 1866.

Nestle has home office in Vevay, a city of

Switzerland.

Introduction of Nestle

It has used around 250,000 people and has modern offices or

operations on the planet.

Nestle is the real world's company driving nourishment, well

being and quality products.

Nestlé in Pakistan is operating since 1988 under a joint

venture with Milk Pak ltd and took over management in 1992

Vision of Nestle The Nestlé global vision is to be the leading health,

wellness, and Nutrition Company in the world.

Lead a dynamic motivated and professional workforce.

Deliver shareholder value through profitable long-term

growth

Mission Statement of Nestle

“Nestle is dedicated to providing the best foods to

people throughout their day, throughout their lives,

throughout the world. With our unique experience

of anticipating consumers’ needs and creating

solutions, Nestlé contributes to your well-being

and enhances your quality of life.”

Nestle Core Values

Direct any dynamic inspired and skilled staff

Meet the healthy wants regarding consumers of

most ages

Provide shareholder increase in wealth by way

of worthwhile long-term development

Nestle Core Values Nestle have got worthwhile and also diversified excellent foods

and also beverage merchandise collection.

Nestle brand names are the preferred selection in the

consumers

Our sales and marketing communications to the client are

usually related, cutting-edge, and also adhere to the very best

criteria regarding accountable conversation.

Introduction of Qureshi Traders

Qureshi distributors and traders are the sole distributor of Nestle

Foods in Islamabad Pakistan. They are based in I-9 Sector Islamabad.

Qureshi Trades 3rd Party Logistics

Qureshi Traders are the elite merchants of Nestle working on 3PL

model.

3pl efforts for high returns.

Hierarchy of Qureshi Traders

CEO

Manager

Drinks Division

Sales Management

Manager Food Division

Sales Management

Manager Food Service Division

Sales Management

General Manager Finance

General Manager Logistics

General Manager

Operations

INVENTORY MANAGEMENT AT

QURESHI TRADERS

Question # 1WHAT ARE THE TYPES OF

ITEMS THE COMPANY STOCKS?

What are the types of items the company stocks?

Qureshi traders are the sole distributors of Nestle food

and beverages products in Islamabad.

They distribute lots of Nestle products in the food and

beverage sector

Qureshi Traders do not distribute the filtered water

because Nestle have separate distributors for Water

What are the types of items the company stocks?

Various Product CategoriesAmbient DairyChilled DairyBeveragesCulinary & FoodBaby FoodBreakfast CerealsCoffee

Question # 2HOW DOES THE COMPANY

DETERMINE WHEN TO REORDER A CERTAIN ITEM?

When to Reorder a certain item?

Qureshi traders used the software FORAN inventory to

check the inventory level.

FORAN software has the ability to check and maintain

the minimum inventory level

The software have indicators which blinks when the

inventory is low

When to Reorder a certain item?

In this way, the company have to reorder keeping that

thing in mind that the delivery time of the order is 2-3

days.

to ignore this delivery time the company have to

maintain the level of inventory in such a way that it

fulfill the demand of those 2-3 days

When to Reorder a certain item?

Question # 3HOW DOES THE COMPANY

DETERMINE HOW MUCH TO ORDER AT A CERTAIN POINT IN

TIME?

How much to Reorder at a certain time

Qureshi Traders have their own sales force which takes orders from

the market and on the basis of those orders Qureshi Traders order

that amount of stocks

Basically the software that Qureshi Traders uses are not that much

efficient for calculating the EOQ and the Qureshi Traders order the

products on the basis of their Experience.

and they order 10% extra as a safety cushion so that the lead time

do not affect them

Question # 4WHAT ARE THE DETAILS OF THE

AUTOMATED INVENTORY CONTROL SYSTEM IF THE

COMPANY USES ONE?

Automated inventory control system

Qureshi Traders uses the customized inventory software known as

“FORAN Inventory”.

As in the years 2006-2009 Qureshi Traders faced lots of difficulty in the

management of the products

All the data about the inventory were maintained by using MS Excel

The wastage and the theft was high during that time period,

Due to the high miss management and theft reasons Qureshi traders

contacted Software Base Solutions (SBS) in Islamabad.

Automated inventory control system

The brief features of FORAN Inventory management

includes

Add details for product categories.

Add details for items for each category

Details for clients, suppliers and companies.

Details for sales & purchase items

Details for sales return

Advantages of FORAN Inventory

1. Speed and Efficiency

2. Document Generation:

3. Timely Data:

4. Time Saving

Question # 5WHAT ARE THE WASTAGES THAT ARE

OCCURRING IN THE COMPANY DUE TO AN INEFFICIENT INVENTORY MANAGEMENT SYSTEM (GIVE EXAMPLES OF ACTUAL

INCIDENTS)?

Wastages Wastage should be allowed up to a certain level known as normal wastage.

To avoid any abnormal wastage, strict control over the inventory should be

exercised.

Qureshi Traders uses the workforce to unload the products from the trucks

Due to this the packaging of the products get damaged and it becomes the

waste for the organization.

Another waste is the movement waste as the picker have to move across the

cartons, it takes lot of time and the picker have to move many time around

the one place

Question # 6WHAT ARE THE PROBLEMS THE COMPANY IS FACING WITH THE

EXISTING INVENTORY MANAGEMENT SYSTEM (GIVE EXAMPLES OF

ACTUAL INCIDENTS)?

Problems in the Existing Inventory System

Problems in the Warehouse

Design of the Warehouse

Honeycombing

Truck Capacity

Route Map

Problems in the Existing Inventory System

In terms of Transportation, Trucks are less in number and the inventory is large to distribute so it

increases the cost

Drivers are not properly trained and most of the time they follow different route than which is allocated to them.

Proper route planning is required for Qureshi Traders in order to effectively distribute the goods and to decrease the cost.

Proper Parking is required for the trucks as there is no allocated space so the movement from the warehouse to the truck increases the motion and time wastages

Question # 7WHAT SHOULD BE DONE

TO RESOLVE THESE PROBLEMS?

Recommendations

To avoid the honeycombing they should focus on

their warehouse storage layout.

There should be tracking system in the warehouse

Qureshi Traders is to the use of deep lane storage

shape shelves

Recommendations Qureshi Traders should focus on improving the inventory

management software

Department layout plays a vital role in efficiency of the warehouse

managing and distribution and storage management

Qureshi Traders must use its financial clout to help the transporters

assemble capacity by simply acquiring fresh trucks that could

operate with highly effective levels.

Thank You