Case Studies for Furniture Manufacturing & Distribution
Issues and Challenges:
- Warehouse inventory management was poorly done as they have more than 30,000 SKUs for Finished Goods (FG) in inventory.
- Not capable to manage the inventory storage racking for more than 8,000 pallets at two FG warehouses.
- There’s no system to help the warehouse operators in inventory tracking so time was wasted only in searching and picking for the right inventory and caused the shipment delayed.
- No proper guideline to perform cycle count resulting inaccurate inventory data.
- Inaccurate inventory data caused the production department over produced hence low inventory turn and high space consumption.
- Unable to comply with the ISO requirements due to poor product traceability
|Their Objectives||What they have achieved|
|To improve Picking Efficiency||Locate items within seconds|
|To reduce Over Production and Stock Holding||Reduce inventory holding cost by 15%|
|To improve Item Traceability||100% compliance|
|To improve Inventory Accuracy||Above 97 % accuracy|
|To reduce Operating Cost||Maintain same headcounts but handle more shipments|
This inventory management system is easy to use and effective for warehouse management. Inventory accuracy has been improved drastically and inventory holding reduced by RM2 Million. Overall it helps us to increase our productivity by 20%.