2nd Asia Pacific International Conference on Industrial Engineering and Operations Management

Automating Inventory Management in Distribution Centers of a Leading FMCG Industry Player in the Beverage Market_A Supply Chain 4.0 Journey

Marvin I. Norona & Satur Apolonio
Publisher: IEOM Society International
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Track: Inventory Control
Abstract

Inventory accuracy and check in check out (CICO) are vital key performance indicator in total supply chain warehouse operation in the beverage industry. As a result of manual counting of products and using of manual paper-based process, ineffective check-in logistic operation, the inbound delivery trucks may experience a delay in waiting between arrival and check-in, which resulted to irrelevant cost to the company in terms of delay and inaccuracy of inventory. Furthermore, extended time delays in trucks will cause inefficiency in the operation of the company in servicing the customers. The main goal of this research paper is to decrease the long processing time and the inaccuracy of inventory by intensifying the receiving process of the inbound trucks, and the subsequent goal is to minimize the inaccuracy in inventory. Adaptation of automation in supply chain 4.0 barcoding and eliminating of waste in lean implementation are recommended and compared to the existing operations. The results suggest the adoption of automating the manual processes (counting and paper base) in receiving (inbound) to loading (outbound) and cycle count will improve the accuracy in inventory and processing time (CICO) and it sustain the company’s competitive advantage and defending its leadership position in the market.

Published in: 2nd Asia Pacific International Conference on Industrial Engineering and Operations Management, Surakarta, Indonesia

Publisher: IEOM Society International
Date of Conference: September 13-16, 2021

ISBN: 978-1-7923-6129-6
ISSN/E-ISSN: 2169-8767