Improvement of Inventory Sharing Process at Home Furnishing Company Belinda Larisa Sipota (a) and Rizqiah Insanita (b)
(a) Universitas Indonesia, Jakarta, Indonesia
(b) Universitas Indonesia, Jakarta, Indonesia
Abstract
Companies worldwide was impacted by global supply chain disruption during the pandemic. This research analyses inventory sharing process for a home furnishing company with decentralized inventory management that executes inventory sharing process called as stock balancing aims to balance inventory levels between stores. Previously, the inventory was exceeding total capacity, with overstock level around 69% from goal 40% and product availability of 84% from goal 96% which affected business commerciality and stock holding. After months of implementation, cycle time of weekly execution was too long up to one month and didn^t contribute a significant impact to inventory structure due to inventory discrepancy. This study aims to investigate and identify issues in current stock balancing process, to analyze the impact to total inventory level, and also to design business process improvement in shorter cycle time. Qualitative method is conducted in this research and data collection through interviews and observations. The research began with analyzing current process to identify the root cause. Then, proposing process improvements through ten steps of business process improvement including techniques such as non-value added analysis, eliminate, reduce cycle time, and automation. The result projecting that stock balancing process can be improved by eliminating four duplicating activities and the cycle time could be shortened by 50% from 28 days to 14 days. In addition, this study suggests supporting factors such as system integration and dedicated man-power to fully support on stock balancing process.
Keywords: Business Process Improvement- Inventory Sharing- Inventory Management- Product Availability
Topic: Innovation, Operations, IT Management and Supply Chain Management
