Implementing Inventory Management Practices at VDC Stores

Shawyun RefahiSupply Management Intern, VDC Stores

August 26, 2016

Agenda Introduction Background of Drydock

Stores Problems and

Challenges Solutions and Results Recommendations

Introduction Supply Chain Management Intern at VDC, Summer 2016 MBA Candidate at UBC Sauder School of Business, Class of

2017 Background in Civil-Structural Engineering

Drydock Stores Over 2,000 items, estimated to be worth $60,000 1/3 of the items are Vendor Managed

New Line, Fastenal, Acklands-Grainger (PPE), Alsco (Coveralls) In January 2016, the Stores was moved to a temporary,

smaller space due to structural damage to the existing stores foundation.

Temporary space is 1,500 square feet (half the size of original Store)

Problems and Challenges JDE E1 system showed less than half of the items that were

currently found in Stores 2/3 items shown in the system we’re no longer in Stores

Disbursement of items was not tracked No cycle counts Items had no designated space Items had no min/max Too many obsolete items

Stock ItemsCoded, In

Item Branch; 400

Coded, Not in the Item Branch; 616

Not Coded, Not in Item Branch; 157

Obsolete, 200

Items listed in Item Branch, but not found in Stores, 1,122

Solutions Step 1: Assign shelf/section numbers to each area of the store

Followed the naming format used at VSY Stores and Marine Stores Aisle Number – Shelf Letter – Level Number

Solutions Step 2: Find all items that already exist in the Item Branch

400 items were already coded and in the system

Step 3: Assign locations and min/max for these items and have it entered into the system

Step 4: Print labels for these items Seaspan item code 30 character description Min/Max

Solutions Step 5: Find all items that had codes in Item Master, but were

not shown to be in the Drydock Stores

Step 6: Assign locations and min/max for these items and have it entered into the system

Step 7: Print labels

Solutions Step 8: Find all remaining items

Assign a location Assign them a name/description Assign their min/max Other details

Supplier Supplier code Units of measure Purchase Unit

Step 9: Submit these codes to Supply Chain Clerk for coding and system entry

Practices Introduced cycle counts and disbursement practices based

on VSY, Marine and VSL Stores. Getting in the habit to track items by their code

Created Stores SOPs and step-by-step guides for receiving, disbursement and cycle counts Any new store keeper will be able to continue with these new

practices

Results Better reading of our reality

Faster and more accurate orders

Efficient turnover times Less product loss Distribution of knowledge

Recommendations and Next Steps Introduce barcodes and a scanning system Remove items that are obsolete or will not be used Follow min/max more closely

Change them if needed New Stores

Ideal locations for items New racking (heavy duty, bolted, earthquake proof)

Introduce a system where non-used or reusable items can be returned to Stores instead of being thrown out

Maintain a posture of learning, experimenting and adapting