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Inventory ManagementThe Company is a positive impact on the community and countless individuals within it. Due to the nature of the work, the company is often hard-pressed to find the time and manpower to review some current systems. While the company is gifted at serving its clients, there is a certain company process that could be improved to better service these clients and save money for the company overall. That process is the inventory management and storage system. While the current system achieves the needs of the company, it, unfortunately, achieves them at a cost and time consumption that is unnecessarily high. It would be to the advantage of the company to review this system with me in an effort to create a better system for the good of the company.
The purpose of this proposal is to outline the current inventory management and storage system of the Company in order to shed light on its inefficiencies and how these inefficiencies may be properly addressed.
HighlightsSome highlights of this proposal include;
- A short analysis of the current inventory management and storage system at the Company
- Introduction to a potential solution
- Benefits of the solution
Status QuoThe Company currently owns and operates 53 buildings with a total of 1,200 units. Due to the nature of the work, these units undergo a high rate of turnover. Every time a unit is vacated it is the responsibility of the management to repair, renovate, clean or otherwise restore the unit to a respectable state for a new tenant. This may include replacing the following:
- Building materials
- Cleaning Supplies
- Outside materials
- Painting Supplies
- Paper Goods
- And more
The current system of restoration is fractured—workers ineffectively store materials in various buildings with no attention to an organized system of inventory management. Storage is inconveniently located and the travel associated with it often causes delays in restoration.
The solution to a fractured storage and inventory management system is to secure the use of a centralized storage location with a fully organized inventory management process. This centralized storage location provides the opportunity for a streamlined inventory management and storage system that reduces the time, effort and added responsibility involved with the current system.
- Reduces issues with inventory management
- Reduces time spent traveling to multiple locations for inventory
- Reduces stress on employees and management
- Frees up space that could be used for other projects
- Streamlines the entire process
SolutionMark E. Stutzmann is the owner of two ideal storage locations;
Suffolk County – 4,000 sq ft. heated
Atlantic Ave Pier – 10,000 sq ft non-heated
He proposes that the Company take advantage of these centralized storage locations by partnering with Mr. Stutzmann. As part of the partnership, Mr. Stutzmann would implement the following;
Reviewing and analyzing inventory with an eye for effectiveness and lowering costs
Lowering costs involved with product purchase and shipments
Offering combined inventory drop-off services
Managing inventory amounts easily through an automated system
Competed all orders
Storing all inventory in a centralized location for complete organization
DeliveriesThe delivery of supplies and materials is based on an “as needed” basis. Using order technology, each location manager will have the ability to place orders for needed supplies daily. It is envisioned
- The order system would generate a report each night.
- Staff would load the order on delivery vehicles in the early morning hours on the following day.
- Delivery vehicles would make scheduled stops in an efficient manner.
- Less space needed: With delivery and fulfillment method in place, Acacia won’t need a warehouse or storage space to store goods, thereby freeing up funds for other parts of the business.
- Waste reduction: This system will prevent goods becoming damaged or obsolete while sitting in storage, reducing waste. This again saves money by preventing investment in unnecessary stock and reducing the need to replace old stock.
Summary / Closing
The current state of the inventory management and storage system at the Company is severely lacking efficiency. Through a partnership with Mark E. Stutzmann, the company has the opportunity to take advantage of a centralized storage space and exceptional inventory management services. Mr. Stutzmann expects that this implementation process should not exceed 90 days.