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The objective of this report is to identify how LanTroVision manages their inventory and
quality services. In this assignment, solutions are recommended to improve LanTroVision to
be more competitive. Over the past 10 years, this company has provided different sorts of
services, such as consultation, site survey, design, implementation, cut-over, handover
documentation, and provision of maintenance despite that LanTroVision has a very strong
cash financing and zero debts. They do collaborate with partners and supporters in providing
products service for data centre solution, provide infrastructure management software and
hardware, support manufacture, distribution of service of electronic and networking test tools
and other services. On top of that, they can build up stronger partnership to boost their
business and get a win-win situation.
Introduction
Lantrovision (S) Ltd. is an investment holding organization, which involves in the providing,
developing, installation and supply of company solutions on network incorporation and
structure wiring and those of electricians. The organization functions through the following
segments: Selling of Item, Installation Performs and Servicing Services. The Selling of Item
section offers cable products and their elements. The Installation Performs section provides
set up solutions for organized wiring techniques. The Servicing Services section provides
maintenance and support solutions for organized wiring techniques. Lantrovision was
established by Thye Yuan Chan in 1990 and is located in Singapore.
Errors in inventory management can be caused by a few problems within the supply chain,
mainly relating to supply, information, forecasting and resource which will reduce
efficiency. Each of these categories provide different challenges for the suppliers, therefore to
remain competitive, these problems have to be solved instantaneously. Such problems are
usually related to one another. An error in the supply, could lead to inaccurate demand
information, and future forecast could be affected as a result. Therefore by monitoring this
information carefully, suppliers are able to minimize errors in their supply chain.
1.2 System Error
System error is a common problem within the IT infrastructure. This sort of error brings
about certain problems such as disruption of operation workflow (Figure 1), inaccurate
information, poor planning and scheduling, all of which will lead to poor customer
satisfaction levels. As mentioned before, LanTroVision IT services are outsourced by
Enhanzcom and they are using a platform called FITPRISE EMS. Even though this system
brings about many benefits to the organization, there are occasions where the staff of
LanTroVision faced difficulties with the system itself. This could be due to lack of training in
terms of using the software or errors within the software itself. System errors are detrimental
to the organizations business workflow and in order to prevent such disruptions, there is a
need to reduce this error.
inventories should be minimized because they will have very low commercial values when
they become inventory obsolescence one day in the future. From the interviews and annual
report, we found out that the inventories have increased in 2013.
Annual report 2013
2012
2013
Inventories
$6,493,000
$7,025,000
Furthermore, they were forced to increase the provision for inventories obsolescence due to
the increase of inventories.
Annual report 2013
Provision for inventories obsolescence
2012
$152,000
2013
$450,000
Moreover, in the annual report, the Chairman also stated that their allowance for inventory
obsolescence has increased to nearly $1,056,000, which means that they have lost about
$1,056,000 due to the inventory obsolescence.
Hence, LantroVision should manage their inventories in a more proper way. In this case, a
more accurate forecasting method is required to forecast their projects. They need to forecast
the number of upcoming projects they may be handling, the size of the upcoming projects,
the number of cables required for the upcoming projects and etc. In addition, they need to
apply the JIT technique in order to decrease the safety stocks and inventories. They should be
aware that the increase of inventories may causes an increase of inventory obsolescence and
pilferage as well as the holding cost. Moreover, they should try to reduce replenishment lead
times so that they do no need to store such a great number of inventories. Although the
company can write off the inventory obsolescence, but they still need to pay for the holding
and ordering costs. Therefore, we strongly suggest that actions are taken to reduce the
inventory obsolescence.