MGMT 707 - Inventory and Supply Chain: Challenges and Solutions

This report provides a comprehensive analysis of inventory control and supply chain management. Part 1 delves into inventory control, addressing issues like inventory discrepancies, stockouts, and the importance of effective inventory management systems. It explores measures companies can take to mitigate these challenges, such as utilizing surplus inventory buyers and avoiding overstocking. Part 2 examines FedEx's supply chain services, highlighting their role in warehousing, transportation, and fulfillment. It discusses the circumstances under which companies might leverage these services, particularly when lacking internal resources or needing specialized solutions like cold chain transportation. The report references relevant sources to support its findings and adheres to APA formatting guidelines. The report explores the services offered by FedEx and discusses how companies can use them to improve their supply chain management and logistics.

Running head: SUPPLY CHAIN AND INVENTORY CONTROL 1
SUPPLY CHAIN AND INVENTORY CONTROL
Name of Student
Institution Affiliation

SUPPLY CHAIN AND INVENTORY CONTROL 2
SUPPLY CHAIN AND INVENTORY CONTROL
Part 1: Inventory Control
Inventory control is the regulation and maximization of warehouse inventory. Some
of the issues faced in inventory management include fishy inventory, inventory discrepancies,
and stockouts.
Poor inventory control is a challenge that many enterprises find themselves entangled
in. At times products are not sold, yet they cannot be returned to the manufacturer. In such a
situation, most inventory managers do not know what to do (Bethel, 2018). Inventory
managers need to refrain from using inventory management systems like FISH (first in, still
here) that have no merits at all. Some of the measures that companies can use to address this
issue include the use of surplus inventory buyers to clean inventory. Inventory managers
should also avoid buying large quantities of products and plan for inventory supplies with
customers.
It is challenging for professionals to identify causes of inventory discrepancies. All
inventory problems can be identified using particular techniques. The first thing is identifying
the most likely possibilities and eliminating them through confirming calculations and
recounting. Also, one needs to verify labels and units of measure for accuracy in identifying
instances of multiple counts or omissions and data entry errors. Discrepancies can be caused
by the shipping of wrong products to customers, failure to account for parts waiting to ship,
failure to post receipts for parts in inventory, and receipt of incorrect orders or improper
amounts of orders (Lowry, 2018).
Stockouts have expensive consequences. For manufacturers, stockouts can entirely
stop the production line, and for a distributor, it costs the trust of the customer and the cost of
processing and satisfying a backorder. Stockouts can be avoided through the ranking of
inventory items in terms of their dollar value and setting a cut-off line and objective

SUPPLY CHAIN AND INVENTORY CONTROL 3
identification of the most critical elements of inventory to increase their re-order points
(Rennie, 2008).
Part 2: Supply Chain
FedEx supply chain is an inventory and supply chain logistics service, provider. The
firm helps companies focus on core competencies and improving performance by handling
the logistics for them. The services offered by FedEx include stocking, warehousing,
fulfillment services, transportation, dock services, and cold chain transportation networks
(FedEx Supply Chain, n.d.).
Companies require warehousing services if they lack space to facilitate warehousing
or when their warehousing facilities are not enough to handle the capacity of their production
system. This situation necessitates the engagement of a third party to enable the storage of
products and raw materials. A company can also have space but lack the conditioning for
particular types of products, for example, those that need to be refrigerated. In such a
situation, FedEx can help store and deliver the items when necessary.
Transportation management services come in handy for companies that have no
vehicles or logistics services of their own. Such firms require external logistics service
providers to ship their raw materials from suppliers to production/processing centers and their
products from production centers to distribution centers or customers.
Fulfillment services involve the preparation and shipment of orders. Companies make
use of FedEx fulfillment services, especially when they wean to cut down the costs of
operation and labor. Companies that use FedEx warehousing services may find it hard to
prepare orders since the products are already in a FedEx warehouse, so FedEx does the order
preparation and delivery for them. This service is necessary for companies whose production
facilities are located far from the markets or have unsafe environments for public access.

SUPPLY CHAIN AND INVENTORY CONTROL 4
FedEx has packaged its services in four primary categories, namely; Critical inventory
logistics, Fulfillment services, Transportation management, and healthcare shared network
(FedEx Supply Chain, n.d.)

SUPPLY CHAIN AND INVENTORY CONTROL 5
References
Bethel, R. T. (2018). Fishy Inventory. Retrieved February 21, 2020, from SCM NOW
MAGAZINE:
http://www.apics.org/apics-for-individuals/apics-magazine-home/magazine-detail-
page/2018/07/02/excess-inventory-management
FedEx Supply Chain. (n.d.). Portfolio of Services. Retrieved February 21, 2020, from
Services: http://www.fedex.com/us/supplychain/services/
Lowry, B. (2018). Inventory Discrepancy Inquiries. Retrieved February 21, 2020, from SCM
NOW MAGAZINE: http://www.apics.org/apics-for-individuals/apics-magazine-
home/magazine-detail-page/2018/06/29/investigating-inventory-discrepancies
Rennie, E. (2008). Stockout Costs and Consequences. Retrieved February 21, 2020, from
SCM NOW MAGAZINE: http://www.apics.org/apics-for-individuals/apics-
magazine-home/magazine-detail-page/2018/04/18/stockout-costs-and-consequences