Inventory Management Practices during COVID 19 Pandemic to Maintain Liquidity Increasing Customer Service level in an Industrial Products Company in Mexico

Autor: Patricia Cano-Olivos, Ignacio Alvarez-Placencia, Diana Sánchez-Partida, José-Luis Martínez-Flores
Rok vydání: 2020
Předmět:
Zdroj: Advances in Science, Technology and Engineering Systems Journal. 5:613-626
ISSN: 2415-6698
DOI: 10.25046/aj050675
Popis: This work presents the development and improvement obtained by implementing inventory managing practices during the COVID 19 pandemic in a Mexican company, a leader in the industrial sector to overcome the effects on the Company's economies due to constrained market to maintain liquidity and preserve employment by increasing customer service level ensuring the availability of the finished product and improving the delivery time in the distribution center, from the receipt of the customer's order, order picking, shipment preparation, invoicing and final delivery to the customer The areas involved are Commercial, Demand and Materials Planning, Purchasing, Manufacturing, Logistics, and Operations of the Distribution Center The deployment process considered an ABC study, analysis of the historical demand, product inventory coverage days, analysis of the lead time components of the distribution center, to implement a minimum and maximum inventory control policy for the product portfolio A and manufacture products classified as B and C on a make to order basis, an audit was performed of its distribution center, to identify opportunities for improvement in their processes to reduce the time of delivery to the customer The Company was not in compliance with the level of customer service with an 89% performance due to the low availability of the finished product inventory, affecting the customer's delivery time in the distribution center with a time of 5 hours versus the goal of 90 minutes per event The implementation of the improvement achieved an increase in the level of service up to 5% starting the fourth quarter of 2019, the savings in inventory optimization at an annual base represented USD 530,785 00 (Five hundred thirty thousand seven hundred eighty-five dollars), and the Company has implemented this good practice nationwide in its other Manufacturing Plants and Distribution Centers as part of the strategic corporate policy deployment © 2020 ASTES Publishers All rights reserved
Databáze: OpenAIRE