WAREHOUSE AND INVENTORY MANAGEMENT

Warehouse and Inventory Management

Warehouse and Inventory Management

Executive Summary

Supply string of links has performed a significant function in today's competitive market. Information scheme which consists of hardware and programs utilised throughout a provide string of links is an absolutely vital element to help managers to investigate the present situation. The use of the computer to distribute and gather information became inexpensive to all companies. Increase storage capability and to gather and contain more information for the business has become a topic for most of companies. The large-scale obstacle to traverse was not how to just gather data inside your own organization but to furthermore explore out-of-doors those boarders to gain more cost and time savings with suppliers and customers. The author is going to discuss the importance of information system by analyzing the Brother Company's distribution system. Also, the author will try to put forward some of information system which are necessary for organizations to improve their business.

Introduction

In view of the increasing competition happened in many markets, supply chain-related mistakes lead to lost sales can not be easily neglected and written off. Supply chain management has played more and more important role in every organisation. "Provide string of links administration means integrated administration of the action of components from initial raw components supplier over the string of links to the ultimate end customer." (Handfield, R.B., & Nichols, E.L. 1999 p47) "Information technology consists of the hardware and software used throughout a supply chain to gather and analyze information."(Chopra, S., & Meindl, P. 2001 p335) Therefore, the author believes that information which is shared across all the supply chain members has become the key element to measure the performance of supply chain management. In this report, the author will try to explain Goldratt approach of distribution system in the section 1, and discuss the importance of information technology through an example of Brother European Company in the Section 2, identify Brother's main distribution problems and in attempt to give some suggestions in Section 3, provide some recommendation in Section 4 for the companies to modify the distribution system for their further supply chain management. In Section 5, the author will bring up the necessary information technologies which are useful and helpful at present and future.

1. Goldratt Approach

Supply chain solution enables the organisation to:

Rapidly respond to actual market demand

Improve on-time deliveries

Reduce the need for overtime and expediting

Better utilize capability to rendezvous customer expectations

Goldratt pointed out that a suitable supply chain solution will help an organisation to wisely use the resources (information) to meet the customers' needs and want. In other words, an organisation can take action to market demand immediately due to the reduced delivery time. Because the requirements for overtime and expediting are reduced, the organisation must have the time to focus on meeting customer expectations instead of production-related problems. Extend from Goldratt approach, the author thinks that a satisfying information system should be set up for an organisation to efficiently run the distribution ...