Warehouse Project to minimize slow moving stock Project Global Learning System (GLS)

Pneumatic and Hydraulic Distributor Company in Indonesia

Main business: This company is a distributor of pneumatic and hydraulic products which markets its products to factories in Indonesia. Most of these products are imported from Korea, Germany, Taiwan, China and some are self-produced.

The main problem: the increasing number of unsold stock and fast moving stock control is still difficult

Case : Our company has more than 3000 part numbers for products to be sold in the company's warehouse. These products are divided into several categories, namely fast moving, slow moving and hardly moving (death stock) products. The ERP used by companies today is SAP. The company is currently running an MRP (material requirement planning) implementation project in the inventory system to solve stock problems, especially the increase in slow moving stock. One of the uses of MRP is to maintain stock availability for fast moving products for a minimum of three months so that existing customers can still be served and the stock is not disturbed.

Project/Challenge: The company is still looking for the right formulation to regulate slow moving and death moving stocks not always increasing and keeping fast moving stock always available. Companies need precise data accuracy so that this problem can be overcome.

Risk :

If this is not addressed immediately, several potential losses will occur as follows:

- Lost sales opportunities if fast-moving is out of stock

- A lot of stock results in the high value of the company's inventory

- There is a risk that some items will expire, such as hoses and solenoid valves

- It costs a lot to make urgent purchases if you can't keep stock

Question :

1. The solution so that slow-moving and death-moving stocks don't always increase 2. The solution to keep fast-moving stock