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What Are The Major Issues at Savemart's Warehouses?: For Reducing The Receiving Issue

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26 views

What Are The Major Issues at Savemart's Warehouses?: For Reducing The Receiving Issue

Just reading

Uploaded by

Mandapalli Satish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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What are the major issues at Savemart’s warehouses?

 Long time for warehouse to inward goods and dispatching them to the stores.
 These delays caused stock-out situations despite having enough stock at
warehouse.
 Loss of sales caused due to late entry of in-warding of goods received from
Vendors, and not reaching the stores on time.
 Delay of deliverables from the vendors.
 Consignments were accepted from the vendors even after exceeding the last
date of delivery as per warehouse policy.
 No prior communication from the vendors regarding the shipment against
the POs.
 No tracking system of the deliverables.
 Delay in receiving process caused when large number of trucks reached the
warehouses on the same day.
 Being very liberal about recording the reporting time of the trucks.
 Delay in goods receipt process caused because of items having wrong or no
barcodes.
 High inventory caused due to category managers’ wrong forecasting.
 Space issues because of improper organizing caused due to lack of discipline
in storing items in their designated locations, damaged goods, returns from
stores, apparels which belonged to earlier season.
 Inefficient picking process caused due to scattering of inventory at different
places.
 Error in system inventory as the book stock didn’t match the physical stock.
 Low through-put as piece-in and piece-out model is followed.
 Increasing costs in packaging.

What initiatives can Rajesh Gupta suggest for reducing the receiving, excess
inventory, stock-out and throughput issues?
For reducing the receiving issue:
1. Bring stringent policies to which the vendors must follow regarding deliveries
on time.
2. Consider only the trusted and efficient vendors from now on.
3. Encourage vendors to inform warehouse well-before regarding the shipment
details against the POs.
4. Shift to case-in and case-out model.
5. Increase further surveillance in the in-warding and out-warding stages, to
identify any irregularities if any.

For reducing the excess inventory issue:


1. Prepare the category managers well to forecast demands promptly while
keeping them in loop with the stores.
2. Audit by senior management by conducting regular visits to the warehouse
and monitor any high/low-inventory issue.
3. Rearrange the inventories in their designated locations and any goods that are
returned from stores or which belong to previous seasons may be sold out to
smaller wholesalers at lower maargins.

For reducing the stock-out issue:


1. Prepare the managers well to analyse the stock-out situations promptly while
keeping both warehouse and stores in loop.
2. Extend the STO service from one day to two days.
3. The pick-lists from the STOs may be shared with the Category managers,
which can help them to communicate, assess and plan their inventories.

For through-put issue:


1. Implement case-in and case-out model.
2. Train store managers, pickers and educate them about the model in collecting
and then sorting the goods.
3. Enhance scanning by removing existing errors in the system and introduce
clear and visible barcodes.

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