Question

Five challenges related to inventory managment for a global supermarket with thousands of stores.

Answer 1

For a global supermarket giant having thousands of stores, the following may be the inventory management challenges.

Warehousing problem: The in-house transport of material from customer floor can be very complex when the information is not sent on time. The time lag in demand creation and demand fulfillment is an example of this. This can happen due to a slow software system and hence can lead to the loss of a customer.

Shortage of inventory: The inventory supply, if not done on time can pose a threat to the store and lead to customer loss. Proper mechanism and stock should be maintained for preventing the empty inventory of any item.

Theft and spillage: The material and goods in the inventory can be stolen and can also perish due to corrosion, weather, and insects etc. Proper storage an check should be used for the goods so this problem can be eliminated.

Workforce management: The workforce and labor should be well trained for managing the inventory. They should be assessed periodically and given training on new methods of efficient inventory handling. If not done, this can lead to loss of goods and also wastage on a high level.

Wastage due to the expiry of products: Ideally, the products, should be sold on FIFO (First-in-first-out) basis. This will help to reduce the expiry of the products in the store and hence will reduce losses.