Executive Summary
Most of the organizations are eager to take part in race of global market competition and thus making huge efforts to improve their processes and reputation. Decision making is one of the most important pointers of the success of any organization. Nowadays, there are various automated software programs been launched that help managers in making important and influential decisions for the organization. This report is based on the study of Sports Shirts Australia Company’s inventory management. ABS by Apparel Business System is chosen for managing inventory of the Sports Shirts Australia Company. There are various benefits of choosing this information system to systemize organization inventory, i.e. inventory by location, adjustments, RFID tracking, transaction history, and so on. This report will discuss, how an inventory management system will improve the functions of Sports Shirts Australia Company and what future directions can business take by using this information system.
Introduction
Sports Shirts Australia is the company located in Sydney and is specialized in manufacturing customized premium quality polo shirts for sports teams, schools, clubs, businesses, promotions, and events. SSA is operating for the last 20 years and has a great track record and so now considered as one of the leading Australian polo shirt manufacturer. Company has an experience of providing orders for schools to big events like President’s cup and Australian Open. It has also designed and manufactured shirts for the Australian Swimming Team. There is a great range of styles, colors, and fabrics offered by the company of which customers can easily choose, design, and place an order.
Manufacturing of shirts is done at company’s own plants in Australia and Asia so; the company has to manage inventory itself. Currently, an organization is offering its services only in Australia but since, globalization has now become highly important for the growth of an organization that earns competitive advantage; therefore, when an organization will spread its business worldwide, it will also have to update its information systems of almost all departments of the company. This report is focused on the requirement of the improvement in inventory management information system of the organization. For this purpose, apparel business system will be analyzed to determine how this system can be useful for the Sports Shirts Australia Company.
There are various general information systems available in the market that helps organizations managing their business tasks in a systemized procedure. ABS by Apparel Business System is a specialized software system that provides complete information system services to the apparel manufacturing companies. This report will discuss an inventory management system features and services that ABS system offers and how it can improve the functions of the Sports Shirts Australia Company. It will also discuss how information system helps managers in decision making for competitive advantage.
ABS by Apparel Business Systems is an ERP software system usually used by apparel and footwear providers. It has been more than 3 decades now since this software system is in use by the apparel companies. This software system is widely been adopted by these organizations due to the reason that, it has comprehensive ERP system that is specially designed for apparel industry. It has modules for PLM, Warehouse and Supply Chain Management, Business to Business and Ecommerce portals for internet self-services, Customization and Product Embellishment, EDI, Business Intelligence, Integrated Financials, and intuitive business process management. Within an area of warehouse management solutions, ABS offer services, including labor management, order management, inventory management, shipping and tracking solutions, and slotting optimization.
At Sports Shirts Australia, there is a wide variety of cotton clothes of which customers can choose to design shirt for their particular use. Customers are provided with the list of choices of clothes on the website. They choose the type of cloth and the color and place an order for the number of shirts, track pants, hats, or shorts they require. Prices for the apparels are listed by the order. Customers pay for the order as according to their feasible method of payment listed on the site. The order is delivered at the given address with in the promised time. The delivery time depends on the size of order. However, the delivery time offered by the Sports Shirts Australia is not as quick as it should be. They offer 3-4 weeks for express service, 5-6 weeks for regular service, and 8-10 weeks for budget service.
Currently, SSA manages the inventory of only those shirts or apparels whose order has been placed and confirmed. However, upon expanding business worldwide, SSA will have to keep a stock of most ordered apparels in warehouse. Keeping stock in warehouse ensures fast delivery of the orders and thus it improves reputation of the organization. When an organization operates worldwide, it has tough competition with the worldwide players of the industry and for this purpose; it has to offer services up to the level of customers’ expectations. In order to position business in the global market, SSA will have to adopt advance information systems to speed up organizational functions and one that help in decision making .
For deploying inventory management system, first there is a need to collect information, process it and store it. In order to collect information, data will be collected through different sources. First the list of items will be stored in the database that is used for manufacturing apparels. Second, the details of the items, i.e. prices, item stock, and other details will be stored. Third, database will be connected through the website. Customers placing orders and ones who have paid for the order will be recorded. This complete information will be linked together with the inventory management system. This information system will synchronize all data; whenever any customer places and pays for the order, it will be checked in the warehouse, if enough number of items is available else it will forward request to the manufacturing plant. Upon manufacturing, items will be forwarded to the shipping department and then delivered to the customer at the given address. This whole procedure follows many other sub tasks but, here we will discuss only inventory management process .
ABS suggests an organization to deploy radio frequency resources so that, it gets easier to track products and scan information about them. Similarly, apparels can be tracked and information can be retrieved through any piece of stock using barcodes or any other type of RFID technology. Barcodes are inscribed on each product and this information can be read through RFID reader and another device can be used to store information of the related product. This barcode links information of the stock in the database. Whenever, barcode is scanned, information is updated in the database .
Thus by RFID technology, up to date information is stored in the database, i.e. how much stock is left in the warehouse, when it should be ordered again, or which product should be sold first and so on. However, it is not necessary that company must use RFID technology; it may also use non RFID system. Since, ABS inventory management system also provides solutions for the non RFID environment or fixed workstations .
ABS offering services for the RFID environment will greatly help the organization systemizing and synchronizing the warehouse functions. There is an optimum level set on the inventory; whenever, the stock goes below the level, it sends alert to the manager and thus it helps in making decisions. These decisions ensure the timely delivery of the apparels to customers and thus earn competitive advantage of quick services over other competitors. The system also alerts the manager of the old stock that needs to be utilized before it gets damaged. Thus, it helps manager to make timely decision of taking out the old stock, recycle it or sale it. This will save an organization from the loss and earn revenues of the old stock. An inventory management system reduces the chance of error and thus helps an organization gaining the competitive advantage of reliable services .
Inventory Management Process
Analysis
The inventory management system by ABS will systemize processes of Sports Shirts Australia’s Inventory. It will be maintained on line and will be up to date all the time. Thus, warehouse managers can keep track of all orders and stocks. If any customer, places an order then stock can be readily checked and thus quick work on the order can be started. This will add great efficiency to the organization services .
All apparels transactions can be reviewed in time of seconds. This information can greatly help managers in decision-making. They can know about the transaction history related to number of apparels type in customer use, residual values, rewash, repairs, put in service, any other issues or receipts. Thus, managers can easily decide, which apparels quality is faulty and must not be used again, which apparels are ordered most, and so on. This information will not only hep in decision-making but also improve quality of the apparels.
There is an inventory adjustment application in ABS inventory system that automatically increments and decrements inventory by single units. By means of ABS inventory management system, managers can keep track of the optimum stocking levels, and thus manage investments in garments inventory. System alerts the manager when the stock goes below the optimum level; thus, stock can be ordered earlier in time before the next order is placed by any customer. Optimum level is adjusted according to the ratio of orders placed for particular product. This level can be varied accordingly .
ABS inventory system also keeps track of the orders placed by the customers and ones who have paid for the orders. The process of manufacturing and the delivery of the products start when the payment is made. This inventory system checks for the payment and instantly sends an alert to the database and the manager for the delivery of order. This system greatly reduces the need of labors and so decreases the labor cost incurred on the inventory management process.
In case of manual inventory management processes, there are high number of chances of human error in counting of the stock, transaction history, and financial information. But in case of ABS inventory management information system, there are least chances of error. Every process is computerized but only decision making is done by managers. Even other processes have made decision making much easier than before.
Inventory by location is considered highly important when company is operating worldwide or countrywide. When inventory by location is enforced, it increases efficiency and productivity. Moreover, it also reduces the risk of bad picks of the inventory and thus ensures reliability in minds of customers. The system tracks the location where the order has to be delivered and estimates which inventory location is nearest; thus order is then delivered to the customer from the closest company warehouse that also reduces the cost incurred on shipping.
ABS Inventory also keeps track of the older items in the stock. It keeps the record and sends alerts when the older items are required to be moved. Such older items can be recycled or brought into use before they are damaged. Moreover, moving this stock also creates a room for the new stock that is high in demand .
Inventory management will be improved after installing an information system and risk of errors, labor cost, and delivery time of products to the customers will be reduced. Thus, these factors will improve the overall performance of the organization.
Recommendations
Currently, SSA is offering services country wide but still they lack at certain areas with other competitors. It is therefore recommended that implement latest information systems in a current company’s infrastructure that can improve the productivity and efficiency and so it can compete with the other players in the market.
Conclusion
Sports Shirts Australia has a good position in the market but it can be improved largely by deploying ABS information system. An inventory management is currently not up to the level of customers’ expectations; therefore, it must be improved to compete with the market. Moreover, the organization must speed up order delivery process so that to improve the repute. For this purpose, it is important to deploy ABS inventory management system as soon as possible.
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