Enhancing logistics and warehouse management for a startup company: Challenges and Opportunities
Nguyen, Tung (2019)
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KANE Watches is a young, small company competing in the watch market. Obstacles in inventory management and logistics activities in the organization required an in-depth study for identifying and presenting proposals on how to improve efficiency. By using various analytical methods, including ABC with XYZ analysis, RIs, PIs and KPIs measurements combined with cost calculation and market study, a theoretically accurate overview on the overall inventory management and logistics operations of the company was achieved. Based on the overview, weaknesses in sales demand forecasts and bookkeeping were exposed. These were caused by, respectively, lack of reliable data, the inexperience of the person in charge, human errors and outdated procedures. The result was a series of recommended actions in response to each individual problem and weakness to help strengthen the performance of the company and increase its overall competitiveness. The proposed actions were targeted on improving the demand forecast as well as on a more economical and logical order frequency with EOQ calculation based on the ABC-XYZ combined classification. Furthermore, the recommendation for using third-party fulfillment service was put into consideration in addition to expense comparison against the internal-operated service cost. In conclusion, the proposals served only as a theoretical solution to the problems of the organization. The study also gave grounds for recommending future research on optimization. Any plan for applying the given proposals in actual situations will require consultation with professionals