Vendor Management Inventory in Ppcsb

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PROJECT PAPER VENDOR MANAGE INVENTORY IN PPCSB (VMI) PREPARED BY: SUPERVISOR CONTENTS PAGE The Company (Company back grounds) • Business Process Flow 5 • Quality Management Systems (QMS) 6 • Parts Planning and Engineering 6 Inventory Department • Background of Inventory 7 • Problem in Inventory of PPCSB 10 • What is Vendor? 10 Customer Driven 12 Critical Issue in an Organization 13 Factors Leading to Poor Inventory Control 14 • Customer theft 15 • Employee theft 15 • Policy 16 • Overnight security 16 • Point of sale 17 Common Inventory Management Problems • Unqualified employees in charge of inventory 18 • Not identifying shortages ahead of time 19 • Falling victim to the “bullwhip effect” 20 • Too much distressed stock in inventory 20 • Computer assessment of inventory items for sale is inaccurate 21 • Computer inventory systems are too complicated 21 • Items in-stock get misplaced 21 • Not keeping up with the rising price of raw materials 22 Implementing vendor manage inventory in PPCSB (VMI) • Introduction 23 • Definition and Concept 24 • Conventional Fulfillment Process from Retailer Perspective 25 • VMI Fulfillment Process from Retailer Perspective 26 Activities Involved in Establishing VMI Process • Management Commitment and Buy-in from Inventory Staff 27 • Setting up the Agreements 28 • Data Exchange 28 • Ordering 29 • Invoice Matching 29 • Measurement 29 Benefits of VMI Process • Customer Benefits 30 • Supplier Benefits 31 • Retailer benefits 32 • Lower

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