Efficient management of product inventories for commercialization

About this Project

Purpose and intention

Establish an efficient Management Model of product inventories for commercialization, which allows adequate decision-making in the management of Stocks in all its stages (inclusion, restocking, promotion and cleaness ) and the resources that are necessary for optimal operation.

Process to achieve the goal, model building:

Multi-criteria description of factors that influence the high level of slow moving inventories

 Definition of new factors, for an early detection of products that could become idle inventory

Determination of factors to consider for products that must be kept in inventory on a recurring basis

Reference reading to take on consideration

Inventory is the most important asset for the company, currently it represents more than 50 million pesos per month on a recurring basis.

This inventory is made up of a significant amount of equipment that is being purchased with measure , for projects already sold (30%) and another component (70%) is the equipment that is kept in stock to satisfy the demand for recurring sales

 A large part of these stocks to satisfy demand, have equipment that has not been moved in a long time (+ 12 months). What will financially affect the company, being a technology team, will surely represent losses as soon as the Management defines that it is time to eliminate them from stock.

The above is probably derived from an incorrect calculation of models and / or quantities of equipment that had to be acquired as stock.

Additionally, it is also likely that equipment from Orders that were canceled by customers is mainted  there and no action was taken in time to auction the equipment and / or return to the manufacturer.

The problem is that there is no adequate model to support decisions to acquire stocks, manage excess stocks and define restocking policies both internally and with manufacturers. This is a priority, since, having such a high expectation of growth, it is very important to invest in the right products and quantities to have a minimum loss in the short term, with the implementation of a model that meets these characteristics.

The model must include a Decision Support System for implementation and recurrent updating of the resources, policies, and procedures listed below:




The above will allow improvement in the following points: