Inventory is the most important asset for the company, currently it represents more than 50 million pesos per month on a recurring basis.

This inventory is made up of a significant amount of equipment that is being purchased with measure , for projects already sold (30%) and another component (70%) is the equipment that is kept in stock to satisfy the demand for recurring sales

 A large part of these stocks to satisfy demand, have equipment that has not been moved in a long time (+ 12 months). What will financially affect the company, being a technology team, will surely represent losses as soon as the Management defines that it is time to eliminate them from stock.

The above is probably derived from an incorrect calculation of models and / or quantities of equipment that had to be acquired as stock.

Additionally, it is also likely that equipment from Orders that were canceled by customers is mainted  there and no action was taken in time to auction the equipment and / or return to the manufacturer.

The problem is that there is no adequate model to support decisions to acquire stocks, manage excess stocks and define restocking policies both internally and with manufacturers. This is a priority, since, having such a high expectation of growth, it is very important to invest in the right products and quantities to have a minimum loss in the short term, with the implementation of a model that meets these characteristics.

The model must include a Decision Support System for implementation and recurrent updating of the resources, policies, and procedures listed below:

Resources

•  Personnel required for the operation

•  Recommended storage locations and volumes by location

•  Shipping / distribution units

 Policies

•  Brands and products labeled as stock

•  Brands and products tagged as Projects

•  Ideal stock replenishment scheme (Reorder Point, EOQ, Safety Stock)

•  Definition of 'Slow movement'

•  Promotions for ‘Slow motion’ teams

•  Re-stocking with manufacturers

 Processes

•  Stock replenishment

•  Promotion of ‘Slow motion’ teams

•  Stock cleaning

The above will allow improvement in the following points:

• Idle inventory. Substantial reduction in the amount of inventory that is maintained even when little turnover has been detected.

• Excessive warehouse occupation due to over inventory. Use warehouse spaces for materials with adequate rotation and that physically allow easy easy access, as well as better control and order.

• Greater quantity of refill orders with a volume adjusted to the need. Smaller and smaller orders with greater frequency, on the teams that show the projected consumption.

• Early detection of idle inventory for negotiation with manufacturers. Delimitation of equipment with low turnover that can be relocated with manufacturers in the early stages of their life cycle.