Qureshi

Traders

INVENTORY MANAGEMENT

Inventory
Inventory is the physical Stock of goods
maintained in an organization for its smooth
running.
Also Stock of Finished Goods
Also

Inventory

is

unsold

purchased or manufactured

goods

Nature of Inventories
Raw materials
Those Inputs converted into finished
products though the manufacturing
process
Work in progress
Semi manufactured products
Finished goods
Those completely manufactured
products.

Functions of
inventory
To meet anticipated customer demand
To smooth production requirements
To decouple operation
To protect against stock-outs

Functions of
inventory
To take advantage of order cycle
To hedge against price increase
To permit operations

Inventory
Management
It refers to the process of managing the stocks of
finished products, semi-finished products and raw
materials by a firm.
Inventory management, if done properly, can
bring down costs and increase the revenue of a
firm.
An activity of Planning an inventory control policy.

Introduction of
Nestle
Nestle is a multinational company and is known as a
worlds leading business today for food
Henri Nestle was the founder of the
corporation, was established in 1866.
Nestle has home office in Vevay, a city of
Switzerland.

Introduction of
Nestle

It has used around 250,000 people and has modern offices or

operations on the planet.
Nestle is the real world's company driving nourishment, well
being and quality products.
Nestl in Pakistan is operating since 1988 under a joint
venture with Milk Pak ltd and took over management in 1992

Vision of Nestle
The Nestl global vision is to be the leading health,
wellness, and Nutrition Company in the world.
Lead a dynamic motivated and professional
workforce.
Deliver shareholder value through profitable
long-term growth

Mission Statement of
Nestle

Nestle is dedicated to providing the best foods to

people throughout their day, throughout their
lives, throughout the world. With our unique
experience of anticipating consumers needs and
creating solutions, Nestl contributes to your wellbeing and enhances your quality of life.

Nestle Core Values

Direct any dynamic inspired and skilled staff
Meet the healthy wants regarding consumers
of most ages
Provide shareholder increase in wealth by
way of worthwhile long-term development

Nestle Core Values

Nestle have got worthwhile and also diversified excellent
foods and also beverage merchandise collection.
Nestle brand names are the preferred selection in the
consumers
Our sales and marketing communications to the client
are usually related, cutting-edge, and also adhere to the
very best criteria regarding accountable conversation.

Introduction of Qureshi
Traders
Qureshi distributors and traders are the sole distributor of Nestle
Foods in Islamabad Pakistan. They are based in I-9 Sector Islamabad.
Qureshi Trades 3rd Party Logistics
Qureshi Traders are the elite merchants of Nestle working on 3PL
model.
3pl efforts for high returns.

Hierarchy of Qureshi
Traders
CEO

General
Manager
Finance

General
Manager
Logistics

General
Manager
Operations
Manager
Drinks Division

Sales
Management

Manager Food
Division

Sales
Management

Manager Food
Service Division

Sales
Management

INVENTORY
MANAGEMENT AT
QURESHI TRADERS

Question # 1
WHAT ARE THE TYPES OF
ITEMS THE COMPANY STOCKS?

What are the types of

items the company stocks?
Qureshi traders are the sole distributors of Nestle
food and beverages products in Islamabad.
They distribute lots of Nestle products in the food
and beverage sector
Qureshi Traders do not distribute the filtered water
because Nestle have separate distributors for
Water

What are the types of

items the company stocks?
Various Product Categories

Ambient Dairy

Chilled Dairy

Beverages

Culinary & Food

Baby Food

Breakfast Cereals

Coffee

Question # 2
HOW DOES THE COMPANY
DETERMINE WHEN TO
REORDER A CERTAIN ITEM?

When to Reorder a
certain item?
Qureshi traders used the software FORAN
inventory to check the inventory level.
FORAN software has the ability to check and
maintain the minimum inventory level
The software have indicators which blinks
when the inventory is low

When to Reorder a
certain item?
In this way, the company have to reorder
keeping that thing in mind that the delivery time
of the order is 2-3 days.
to ignore this delivery time the company have to
maintain the level of inventory in such a way
that it fulfill the demand of those 2-3 days

When to Reorder a
certain item?

Question # 3
HOW DOES THE COMPANY
DETERMINE HOW MUCH TO
ORDER AT A CERTAIN POINT IN
TIME?

How much to Reorder

at a certain time
Qureshi Traders have their own sales force which takes orders from
the market and on the basis of those orders Qureshi Traders order
that amount of stocks
Basically the software that Qureshi Traders uses are not that much
efficient for calculating the EOQ and the Qureshi Traders order the
products on the basis of their Experience.
and they order 10% extra as a safety cushion so that
the lead time do not affect them

Question # 4
WHAT ARE THE DETAILS OF THE
AUTOMATED INVENTORY
CONTROL SYSTEM IF THE
COMPANY USES ONE?

Automated inventory
control system
Qureshi Traders uses the customized inventory software known as FORAN
Inventory.
As in the years 2006-2009 Qureshi Traders faced lots of difficulty
in the management of the products
All the data about the inventory were maintained by using MS
Excel
The wastage and the theft was high during that time period,
Due to the high miss management and theft reasons Qureshi traders contacted
Software Base Solutions (SBS) in Islamabad.

Automated inventory
control system
The brief features of FORAN Inventory management
includes
Add details for product categories.
Add details for items for each category
Details for clients, suppliers and companies.
Details for sales & purchase items
Details for sales return

Advantages of FORAN Inventory

1.Speed and Efficiency
2.Document Generation:

3.Timely Data:
4.Time Saving

Question # 5
WHAT ARE THE WASTAGES THAT ARE
OCCURRING IN THE COMPANY DUE TO AN
INEFFICIENT INVENTORY MANAGEMENT
SYSTEM (GIVE EXAMPLES OF ACTUAL
INCIDENTS)?

Wastages
Wastage should be allowed up to a certain level known as normal wastage.
To avoid any abnormal wastage, strict control over the inventory should be
exercised.
Qureshi Traders uses the workforce to unload the products from the trucks
Due to this the packaging of the products get damaged and it becomes the
waste for the organization.
Another waste is the movement waste as the picker have to move across the
cartons, it takes lot of time and the picker have to move many time around
the one place

Question # 6
WHAT ARE THE PROBLEMS THE
COMPANY IS FACING WITH THE
EXISTING INVENTORY MANAGEMENT
SYSTEM (GIVE EXAMPLES OF
ACTUAL INCIDENTS)?

Problems in the Existing

Inventory System
Problems in the Warehouse
Design of the Warehouse
Honeycombing

Truck Capacity
Route Map

Problems in the Existing

Inventory System
In terms of Transportation,
Trucks are less in number and the inventory is large to
distribute so it increases the cost
Drivers are not properly trained and most of the time
they follow different route than which is allocated to
them.
Proper route planning is required for Qureshi Traders in
order to effectively distribute the goods and to decrease
the cost.
Proper Parking is required for the trucks as there is no
allocated space so the movement from the warehouse to
the truck increases the motion and time wastages

Question # 7
WHAT SHOULD BE DONE
TO RESOLVE THESE
PROBLEMS?

Recommendations
To avoid the honeycombing they should focus
on their warehouse storage layout.
There should be tracking system in the
warehouse
Qureshi Traders is to the use of deep lane storage shape
shelves

Recommendations
Qureshi Traders should focus on improving the
inventory management software
Department layout plays a vital role in efficiency of the warehouse
managing and distribution and storage management
Qureshi Traders must use its financial clout to help the transporters
assemble capacity by simply acquiring fresh trucks that could
operate with highly effective levels.

Thank You