Customer's Issues

We used to have product disposals chronically, since we produced enough product volumes to avoid stock out, based on our personal hunch. On the other hand, we needed to have plenty of inventories due to the complex procedure of the purchase of raw materials, which sometimes resulted in wrong procurements. In order to correspond to the mistakes we might have, we had to keep extra materials more than necessary.

Point of Improvement

We determined a safety stock capacity for each product and shift our production schedule to fulfill the safety stock capacity. By harmonizing material purchase schedules with production schedules, we were able to realize the synchronized production.

Benefits

We were able to eliminate stock disposal completely, even without causing stock-out. As the freshness of the products in the warehouse is improved, we are able to deliver our customers more fresh products. The quality of our products was also improved as the freshness of raw materials was enhanced, due to less mistakes and wastes under the automated purchase procedures.