Operational Management Techniques for Inventory Management at Splash

Current Operations
Management issue or problem

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
Existing operational issue ...........................................................................................................1
Consequence ...............................................................................................................................1
Operational management techniques for addressing the issue ...................................................2
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................7

INTRODUCTION
Operation management is defined as the process of planning, supervision, monitoring and
management of operational activities for increasing their productivity. Operational strategies
must support the vision and goals of the organisation (Heizer, Render and Munson, 2016).
Splash is one of the most successful retailer providing its services in middle east countries and
India. Its head quarter is located in Dubai, UAE. Despite having huge brand value and customer
base organisation is experiencing various quality and operational issues in its inventory
management. The report will analyse the different aspects of the issue and its consequences. It
will also discuss the various operational management strategies to overcome these issues so that
organisation can improve its performance and profitability.
Existing operational issue
At present Splash is facing variety of issues in its inventory management which are
affecting its operational cost as well as failure in assuring timely delivery of the products and
services. The human or employee errors is causing inaccuracy in inventory records. Thus
organisation fails to make accurate and timely purchase of the raw materials. On several
instances excessive amount of inventory are also purchased. Due to poor forecasting or
inaccurate recording of inventory data stock outs or inventory shortage are becoming regular
issues within Splash. The organisation also face challenges due to excessive inventory (Chen
and et.al., 2016.). When excessive purchases are made then many times quality of fabric or other
raw material degrades and it becomes unusable for the organisation.
On large scale sometimes it also becomes challenging for the organisation to detect or
identify the defects or issue. The existing inventory system of Splash lacks optimisation. As a
result of this company does not have well documented and accurate information of quantities or
raw material which is utilised in production, scrap or waste. This affects the profit analysis and
purchasing and marketing decisions of the organisation. Misplaced inventory is also common
issue due to which most of the employees are not able to manage their work and time. The delay
or time waste in searching materials or misplaced inventory affect the quality and deadlines of
customer services.
Consequence
It is important to have proper management of techniques in all aspects of business development.
The company which is not having the proper inventory management this can lead to increased
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