Inventory Issues in DbSchenker Samples †MyAssignmenthelp.com

Question: Discuss about the Inventory Issues in DbSchenker. Answer: Introduction Inventory is among the most important sources of revenue for DB Schenker Sydney. This is because the inventory of a company is equal to the profit, so an accurate accounting of product and services in the stock and inventory can have a significant impact on DB Schenker. Bad inventory has damaging effects on the DB Schenker which include poor customer services. Lack of proper inventory can lead to delayed delivery of products and services to customers (Christopher, 2016). Poor inventory can also lead some part of the product missing when delivered to the client due to lack of proper checking of the inventory before making shipments of the product. This dramatically affects the trust of the customers, and they start disappearing. DB Schenker should track its inventory to ensure that they are in a position to fulfill the customer order at the right time. However, poor planning can cost a company a lot of money. Problem statement The main problem with DB Schenker Company is corruption. The company management top executive staff are corrupt they are fond of bribing the local customs officials. According to a recent research a railway company had reported DB Schenker to the court over corrupt cases before any official investigation had to start in which they had to pay a lot of money as the penalty of their corrupt cases. By so doing the company is incurring a lot of losses. To cover this loss, the company top official who is in most cases involved in the corruption action have to overwork their junior employees. The employees are not paid nicely, and the working condition in the organization is poor (Christopher, 2016). Hardworking employees are not motivated by giving them incentives which have led to the poor production of product and services. This corrupt issue has led to the company making shipment to Ford Company by not handling money directly to the customs officers, but instead, DB Schenker involves a Russian agency which allows rapid flow of shipments to the Ford Company (Christopher, 2016). The main aim of stating the problem statement is to be able to come up with solution or action which can be taken to end the problem faced by DB Schenker Company. This is by taking some precaution measures towards those who are involved in the corrupt action as well as mistreating employees by overworking them and not giving hardworking employees incentives which motivates them and leads to increment in production. Objectives The main purpose of the project is to eliminate corruption and bribery in the DB Schenker Company which can lead to great loss of capital. To achieve this objective, the Company employees have to be educated on the negative effects of corruption from the individual level to the society at large. Top staff members of the DB SchenkerCompany must be aware that they can be taken to court in case they are found guilty of corruption cases (Wisner, Tan Leong, 2014). Cases, whereby junior employees are overworked by their seniors to cover their corrupt actions, should come to a culmination. Another significant objective of the project is to eliminate poor planning in DB Schenker Company by integrating a few solutions to the workflow. The company can suggest an automatic inventory management system which keeps track of all the shipments that are done and can show where you have gone wrong. Sources of secondary data The main source of data for the project was the DB Schenker Company database which provided a lot of information about the inventory issues and some problems which the company is facing. Information about the different shipments that the company has made to the different organization and the financial documents and information involved (Jacobs, Chase Lummus, 2014). Some important reports such as finance committee reports which are of great significance were collected from committee and commissions. Information about the ranking of the DB Schenker in the globe and the product and services that they offer as well as the quality of their product was collected from newspapers and magazines. Methodology. Theory of constraints (TOC) was used to address the inventory issues which are affecting the DB Schenker Company. Dynamic buffer technology together with LEAN pull replenishment approach in the TOC is used to manage the inventory level efficiently. TOC dynamic buffer has helped greatly to set and adjust the appropriate stock levels for each item in their respective locations using inventory state levels instead of using forecasting (Stadtler, 2015). This simple method has been able to solve the issues accompanied by forecasting such as unpredictable forecasting errors and inadequate planning information for new products which have no history. TOC states that the inventory level should change if the demand for the product change and in cases where unreliable supplies occur. References Christopher, M. (2016).Logistics supply chain management. Pearson UK. Jacobs, F. R., Chase, R. B., Lummus, R. R. (2014).Operations and supply chain management(pp. 533-535). New York, NY: McGraw-Hill/Irwin. Stadtler, H. (2015). Supply chain management: An overview. InSupply chain management and advanced planning(pp. 3-28). Springer, Berlin, Heidelberg. Wisner, J. D., Tan, K. C., Leong, G. K. (2014).Principles of supply chain management: A balanced approach. Cengage Learning.