Question

1. Inventory Management Problems. Search the internet for one example of a company who has dealt with an inventory problem. What was the issue? How did they deal with it? How did it turn out? Would you have recommended another solution and what would that be? How did you react to it?

Answer 1

There are 5 common inventory problems that every e-commerce company faces one of them was the biggest e-com till date Amazon.com

1. Supply Chain Complexity: Taking in more partners than required, Expanding portfolio to offer more than required products, Investing more working capital than required. However, they have devised a solution to those; Efficient Lead time, Maintaining safety stock, Investment in the automated inventory system, Using multi-location stock management.

2. Inadeqacy of employee training: It doesn't matter if we have the best software unless it is utilised properly. Jeff Bezos lacked more trained employees during amazon's initial days. However with passing time Bezos introduced a system of training for employees handling the most important inventory system.

3. Lack of Game plan for the future: Amazon started at a time with almost no presence at the brick & mortar store a total online scenario packing books thereby they had a lack of plan what after..... but few years after the increasing online sales platform they started to devise plans for next big thing the online web series presence. They lacked a initial growth plan but soon after the market started reading a change of taste amazon didn't delay there.

4. Not counting inventory often: Booming sales from amazon platform for books initially led to a problem in inventory management, but soon after they started keeping an audit for that the problem.

5. Not having performance measurement parameters: Amazon was run by group of coffee chugging unskilled youths where books unwrapping and packing is the only thing we did thereby there were no performance standards. However this solution is met by setting standards as they grew