Inventory Management

Inventory Management Solutions

The need for the inventory management module was an outcome of our experience gathered while working with our customers on project implementation and total cost of ownership optimisation.

From these experiences it became clear that inventory carrying costs are typically 20% - 30% of the total inventory value. This constituted a significant hidden cost in the business and hence required focus, investments and implementation.

The broad elements of inventory carrying cost were identified as
  • Storage space cost
  • Handling cost
  • Interest cost
  • Opportunity cost
  • Deterioration cost
  • Obsolescence cost

Using the experience, Sourcing-India has developed the concept of a single window solution to all the inventory related issues using technology and a structured approach to implementation and monitoring. The process includes, study existing processes and create an implementation blue-print covering raw material forecasting & procurement, WIP, SFG & FG storage of MRO goods. Based on which we suggest modifications in production planning and scheduling, storage systems, storage locations and handling methods

  • Implementation highlights
    • Accurate forecasting processes
    • Extensive labeling & tagging,
    • Drop shifting, EOQ, ABC analysis, LIFO/FIFO,

    Technology is used by introducing RFID & Barcoding at appropriate places and Integration with the ERP/material management system.

  • Implement regular monitoring protocols to ensure stabilization.