Implementing Inventory Management Practices at VDC Stores
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Transcript of Implementing Inventory Management Practices at VDC Stores
Implementing Inventory Management Practices at VDC Stores
Shawyun RefahiSupply Management Intern, VDC Stores
August 26, 2016
Agenda Introduction Background of Drydock
Stores Problems and
Challenges Solutions and Results Recommendations
Introduction Supply Chain Management Intern at VDC, Summer 2016 MBA Candidate at UBC Sauder School of Business, Class of
2017 Background in Civil-Structural Engineering
Drydock Stores Over 2,000 items, estimated to be worth $60,000 1/3 of the items are Vendor Managed
New Line, Fastenal, Acklands-Grainger (PPE), Alsco (Coveralls) In January 2016, the Stores was moved to a temporary,
smaller space due to structural damage to the existing stores foundation.
Temporary space is 1,500 square feet (half the size of original Store)
Problems and Challenges JDE E1 system showed less than half of the items that were
currently found in Stores 2/3 items shown in the system we’re no longer in Stores
Disbursement of items was not tracked No cycle counts Items had no designated space Items had no min/max Too many obsolete items
Stock ItemsCoded, In
Item Branch; 400
Coded, Not in the Item Branch; 616
Not Coded, Not in Item Branch; 157
Obsolete, 200
Items listed in Item Branch, but not found in Stores, 1,122
Solutions Step 1: Assign shelf/section numbers to each area of the store
Followed the naming format used at VSY Stores and Marine Stores Aisle Number – Shelf Letter – Level Number
Solutions Step 2: Find all items that already exist in the Item Branch
400 items were already coded and in the system
Step 3: Assign locations and min/max for these items and have it entered into the system
Step 4: Print labels for these items Seaspan item code 30 character description Min/Max
Solutions Step 5: Find all items that had codes in Item Master, but were
not shown to be in the Drydock Stores
Step 6: Assign locations and min/max for these items and have it entered into the system
Step 7: Print labels
Solutions Step 8: Find all remaining items
Assign a location Assign them a name/description Assign their min/max Other details
Supplier Supplier code Units of measure Purchase Unit
Step 9: Submit these codes to Supply Chain Clerk for coding and system entry
Practices Introduced cycle counts and disbursement practices based
on VSY, Marine and VSL Stores. Getting in the habit to track items by their code
Created Stores SOPs and step-by-step guides for receiving, disbursement and cycle counts Any new store keeper will be able to continue with these new
practices
Results Better reading of our reality
Faster and more accurate orders
Efficient turnover times Less product loss Distribution of knowledge
Recommendations and Next Steps Introduce barcodes and a scanning system Remove items that are obsolete or will not be used Follow min/max more closely
Change them if needed New Stores
Ideal locations for items New racking (heavy duty, bolted, earthquake proof)
Introduce a system where non-used or reusable items can be returned to Stores instead of being thrown out
Maintain a posture of learning, experimenting and adapting