The new system proposal that will be introduced to Riorden manufacturing is an inventory management system. An inventory management system is used to control inventory for the products that are sold to the customers and the supplies that are used to help serve the customers. This new system will avoid mistakes as the inventory system will eliminate the need of manual inventory control and manual ordering of the products and supplies. This inventory management system will help the growth of the company by increasing the inventory to accommodate for the customers’ needs as outage of products and supplies will be eliminated and over the limits of products and supplies that are not needed will not be wasted if expired or never used.
The process that is currently used at Riorden manufacturing will be changed as less time will be needed to receive products or supplies which means productive payroll will not be wasted and cause overages in the payroll each week. As of now Riorden manufacturing has been overspending on staffing and having under production that is not meeting payroll budget. Riorden manufacturing has been completing all inventory practices manually or by hand. Receiving products and supplies are counted and kept track by an outdated method of hand written record. As Riorden manufacturing gain customers with excellent service mistakes will be made as products and supplies are forgotten to be taken out of the manual inventory keeping way.
The process of the new inventory management system will include having a way of scanning all shipments that are received electronically instead of hand written. In order for this process to work to initialize the system or start the process all current inventory or the products and supplies must be entered as the starting count so there after new shipments will be added and products sold will be deducted from the inventory. Scanning shipment barcodes will allow shipments to be downloaded in the system instead of scanning or looking at each product. This method will save time and money. Minimums and Maximums will be downloaded in the system for each product depending on the customers demand.
Minimums is an amount or quantity that a product is not to fall below or customers’ needs are not going to be meet. Maximums is an amount or quantity that a product can’t go over in order to prevent an overage of an item or product. (If there is a 4 syringes on hand with an average of 10 syringes sold a week, then for one week the minimum amount or quantity for syringes will be 10 and the maximum would be 12 because they are shipped 4 per pack. This will allow you to always have enough because when the quantity falls in between the minimum and maximum an order will generate with that product on the order day automatically for 8 syringes.)
In order to have an accurate inventory all employees working for Riorden manufacturing will need to complete a training course for full understanding of the new inventory management system. Until this course is completed all employees will have no access to the inventory management system to avoid possible mistakes that would encounter problems with inventory counts with in Riorden manufacturing.
For the inventory management system internet and mobile access will be needed. Internet and Intranet will be need to receive invoices automatically in the system at Riorden manufacturing. This will allow for all items or products to be downloaded in the Riorden manufacturing database when the barcode is scanned on the shipment label. In order for transmitting data when shipments are received and for counting the initial first counts when the system is set up mobile access will be needed by using routers that work with the handheld scanner. This will allow information scanned in on the handheld scanner to be transmitted to the Riorden system for receiving. The mobile access will also allow access for correcting counts and automatic deduction of products when customers purchase them at the point of sale.
Diagram of the System Proposal
University Of Phoenix. (2005). Riorden Manufacturing. Retrieved from University Of Phoenix, IT205 website.