FMS PRESENTATION

Central Management Control System

FMS Presentation

System Control Level

Presented By:Aaliya Javed Husain - 18070125001Alyssa Gomes - 18070125022 Zenab Hussain Bandookwala - 18070125110

CONTENTS

Features

Introduction

Inventory Control

Who Benefits?

Advantages

Inventory Management

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Video

Disadvantages

Centralized Inventory

Case Study

INTRODUCTION

In business, inventory management refers to all decisions regarding how inventory is ordered, shipped, stored and sold.Other aspects:

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• Storage
• Transportation

INVENTORY CONTROL

Involves warehouse management:

• Barcode scanners
• Reorder reports and adjustments
• Product details, histories, and locations
• Comprehensive inventory lists and counts
• Variants, bundles and kitting
• Syncing of stock on hand with sales and purchase orders

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Goal: to maximize profits, minimize inventory investment

Inventory management

Involves how you obtain, store, and profit from raw materials and finished goods alike. The right stock, at the right levels, in the right place, at the right time, at the right cost.

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Importance of Inventory Control

CENTRALIZED INVENTORY

Inventory that a company holds in a single hub, through which it ships inventory to customers in a large area. Example: a single, large warehouse, where different sections of storage are used for different product categories there are no separate buildings or locations for different products). Very commonly used by online e-Commerce companies like Amazon.

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IMPORTANT TERMS

• Square Root Law

Estimates of how the number of warehouse locations affect the size of the inventory.

• Economies of Scale

Each additional warehouse location duplicates most of the functions and resources of the original warehouse. Centralization would reduce costs, and make funds available for warehouse upgrades.

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FEATURES OF CENTRAL INVENTORY MANAGEMENT

• Multi Store facility
• Multi level item categorization (category-group-type)
• Item database
• Material allocation (rack-bin wise) in store
• User definable stocks alerts (max, min, reorder & critical levels)

• Verification / inspection of material received
• Issue of material (as per BOM or individual)
• Return of material (excess return)
• Department rejection control
• Inventory tracking (Barcodes and scanning)

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WHO BENEFITS FROM CENTRALIZED INVENTORY MANAGEMENT?

• The Management
• Staff
• Supply Chain
• Customers

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The consistency allows the management to communicate better with the staff.

ADVANTAGES

• Centralized inventory stocking

• Lean machine
• Simplifies multi-channel selling

• Avoids overselling
• Increases sales

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DISADVANTAGES

• Slower response
• Store-level frustrations
• Inconsistent demand
• Local market adaptation
• Difficult to expand a business

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CASE STUDY

Consider the following examples:

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Questions?

REFERENCES

• https://smallbusiness.chron.com/centralized-inventory-mean-23551.html
• https://www.tradegecko.com/inventory-management/inventory-control
• https://www.acgil.com/products/central-inventory-management.htm
• https://www.unleashedsoftware.com/blog/centralised-inventory-management-right
• https://saleswarp.com/4-benefits-of-centralized-inventory-management/

Case Study References:

• https://blog.ordoro.com/2012/01/24/nikes-inventory-management-solution/
• https://www.ukessays.com/essays/marketing/supply-chain-management-of-nike-marketing-essay.php

• https://www.orderhive.com/every-fashion-retailer-can-learn-retail-giant-zara
• https://www.tradegecko.com/blog/supply-chain-management/zara-supply-chain-its-secret-to-retail-success

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THANK YOU!