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Introduction
The report entails the activities done in the warehouse during the stock count. This
was one of those special operations launched as an immediate measure to counter
the problems which surfaced due to the inventory mismanagement. A team was
made, which consisted of PUMA employees, mainly related to Supply chain,
warehouse management & Sales Operations, which all report to the finance head.
PUMA India pvt. Ltd has two warehouses, one in Kirti Nagar (Delhi) and
another in Bangalore. The Bangalore warehouse is entitled for Imported Footwear
and Imported Accessories & Apparels. The Delhi warehouse had locally made
footwear and apparels. Due to recurring problems in Delhi warehouse and high cost,
the warehouse was shifted at Hassangarh and the operational charge was given to
Indo Arya. So a 3rd party system is followed. The Bangalore warehouse is handled by
DHL (which by the way, never had any problem).
• Stock could not be found easily, reducing the overall efficiency of the
warehouse, including In warding (space problem), Dropping DNs, SRN issue
along with some other problems which are a byproduct of mismanagement of
Warehousing facility.
Job at Hand:
• To manually scan every article, so as to match the physical stock and book
stock.
• To reorganize the entire facility for smooth functioning and better inventory
management.
How the action unfolded
1. The first job at hand was to clear some space to work. There was no space in
between aisles, so in the beginning, the boxes were arranged in rows.
2. In the meanwhile, the current stock report was downloaded from SAP, which
showed a figure of 3.5 lakh of stock. That gave us an idea, what we are
dealing with and what is that we need to achieve.
3. Then pallet locations were identified, and barcodes were made for the
respective.
4. To begin on Day 1, teams were made and in the meanwhile some of the
manpower placed barcode on every pallet which depicted its location
(covered it with transparent tape, to make it last long).
5. Every team was then assigned a row to scan. This was managed by the
supply chain manager. This was important to have a proper man-
management and to ensure that he constantly mapped the whereabouts and
the work done at the respective rows (The resources are to be used
optimally). This was the floor operational end of the project and one of the
keys to its successful completion.
6. The work initially started on pallet area. Different teams had their team
leaders, assisted by a supervisor and two pickers. Every team had one
scanner. Began the scanning. Every article in the pallet was scanned an after
the completion of the pallet the file was saved. So there was one file for
every pallet.
8. The files were submitted to the data manager, who downloaded them from
the scanners.
11.After the complete physical scanning, whose data was constantly being
downloaded into the system was collated.
12.A excel file was made, where each cell depicted a pallet. Another file was
made in which physical count was put against the scanned count. The
difference was checked again and reconciled.
13.Now after the final figure was received, it was compared with the last
available (before the stock take) figure. The difference is checked. The
difference then is checked in terms of total value.
Day by Day:
Day 2: 70,000
Day 3: 1,00,000
Day 4: 88,000
How it helped:
• The location of the articles were identified which would save a lot of time.
• The exact picture of the inventory became clear to the management, which
would help in taking better decisions i.e Finance team, Merchandising teams
etc.
The deviation in the stock was much lesser than it was anticipated. But still it
was a solution to a huge problem.
Conclusion:
In spite of giving this control to third party, it should be run by the company
itself. A different department, i.e. supply chain has to be there. Finance
department, Supply chain and Merchandising Department should work closely.
Flow of information is also very necessary. Unless information is not provided to
Supply chain team about the future buys and plans, it cannot function and serve
its actual purpose.