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Issues and solutions at overseas distribution centers — from the client perspective

Issues and solutions at overseas distribution centers
— from the client perspective

Useful Information:Issues and solutions at overseas distribution centers — from the client perspective

Contents



Has this ever happened in your workplace?

Has this ever happened in your workplace?

issue

How should we improve global inventory visibility?
  • Overseas inventory control uses different systems at different sites, which prevents efficient data collection and coordination and in turn affects decision-making.
  • Overseas systems are typically set up independently by local sites. The lack of consistency causes delays in data collection. Moreover, data is not standardized.
  • Larger territories employ multiple warehouse locations, with inventories managed separately at each location, leading to inefficient inventory utilization.
  • WMS is used at some of the bigger overseas distribution warehouses, but generally not at the smaller operations. Many of these are still using Excel.
  • Sourcing inventory data by e-mail from sites that operate in different time zones often results in errors and discrepancies in inventory numbers at a given point in time. So we generally have to call them to confirm.

Solution

POINT 1

solution

Integrated inventory management across multiple sites allows access to highly granular inventory data from anywhere.


POINT 2

solution

By managing inventory information in the distribution center in a precisely layered location, it is clear “where” and “what” is stored.


POINT 3

solution

Referring to the respective inventory screens, such as the amount of inventory replenishment needed and inventory flexibility methods, enables the effective use of inventory as an asset.

Total inventory query

Total inventory query image

  • View inventory levels and stock status (good/bad/expired) at each site
  • Inventory levels at multiple distribution centers are shown on the same line

Inventory query

Inventory query image

  • Search inventory levels, availability, quantities already allocated and stock status by granular criteria such as lot number, expiry date, storage location, name and binning date
  • View latest binning and picking dates and identify slow-moving inventory

Transaction query

Transaction query image

View inventory changes for a specific product code over a specific period (using From and To dates) as well as key events such as binning, picking, stocktaking, inventory adjustments and transfers.



Has this ever happened in your workplace?

Has this ever happened in your workplace?

issue

A buyer cannot be found for stock left over after a production run has finished, so the stock remains in inventory for over ten years.
Products are rendered unusable due to a design change, and become backlog stock.
The opportunity to dispose of a significant volume of products at a discount was missed.

Solution

solution

A comprehensive understanding of details such as final receving and shipping dates, stock quality (expiry dates or usable/unusable status), and shipment and transaction trends relative to inventory levels can be used to efficiently identify and address problems such as slow-moving inventory.
POINT

Reasons for increasing backlog:

  • Over-stocking due to poor ordering or forecasting
  • Expired stock due to poor implementation of first-in, first-out
  • Stock not cleared due to incomplete instructions regarding disposal or relocation
  • Poor location management (typically when stock is returned to shelves after a shipping or loading error or otherwise placed in incorrect location)

Unsold, expired, and unlocatable stock becomes slow-moving inventory.
The solution is accurate location management together with improved visibility of inventory movements and early detection of slow-moving inventory.




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