Improvement
strategies of the 99 speedmart

Inventory
system

To
improve the accuracy of 99 Speedmart’s stock – Currently, 99 speedmart uses
barcode for RF (Radio Frequency) scanner in inventory control. This technique
is not only obsolete but also error-prone. The most obvious drawback of this
system is that it takes time because it needs to be consistent with a bar code
reader. Barcode systems can damage inventory integrity and can scan for error
messages if the barcode is wet, scratched or damaged during handling and
storage. In order to solve this problem, we have proposed radio frequency
identification (RFID) tag that is more advanced and reliable than bar code
reading.

An
RFID tag, a microchip with an antenna, will be placed on a physical object and
an RFID reader will sense the presence and movement of objects in the entire 99
speedmart supply chain. Changes in inventories can be tracked from the point of
manufacture to the point of sale. Large retailers like Tesco and Giant have
successfully implemented the system. We observed that 99 Speedmart lacks the
proper documentation, especially in terms of inventory control and integrity.
Procedures recorded here should not be limited to inventory issues, they should
be a complete program, including quality, physical aspects and security.
Standard Operating Procedures (SOPs) should include everything an employee
needs to know to accomplish his or her task. One area still lacking is that 99
Speedmart’s lack of training to inventory and maintain its employees is not the
same as for a large retailer. Due to the lack of a training budget, the organization
seldom emphasizes staff training. The company’s culture is experienced staff to
give guidance and training of new employees, it is still inadequate. 99 speedmart
have crowded storage areas, making them a “black hole” for missing
products. Crowded areas can also increase product damage, which is usually
handled without stock correction.

Therefore, we recommend 99Speedmartto to adopt
suitable racking system, good lighting, shelf and product label. This makes it
easier to store, pick and count to improve accuracy. An example of an RFID
project is as follows: As a solution, 99Speedmart can upgrade their barcode
systems and combine advanced software to manage their inventory integrity so
that inventory can be controlled. If you continue to use the bar code system,
you need a strict inventory check schedule and regularly check for any
discrepancies. For the future, more advanced RFID systems and state-of-the-art
software can support systems such as EDI if they plan to leverage their supply
chain management. 99Speedmart needs to improve their cycle times.

Quality
Management

The duty of each organization implementing a quality
management system is to implement continuous quality improvement by improving
all processes and activities at all stages of the production cycle. 99
Speedmart organizations must pass the quality policy, quality objectives, data
analysis and management review, and continuously improve the quality management
system’s effectiveness. The principle of continual improvement based on one
survey is considered as one of the weakest areas of quality management in
business practice. This principle is closely linked to other principles of
quality management and covers all areas or activities of the organization.
Weaknesses of 99 speedmart applies the principles of quality management from
surveys: Lack of involvement of top management to improve activities, non-use
of system measurements, non-systematic monitoring of satisfaction, assessment
of supplier deficiencies, low involvement of process improvement staff
reflected in application of the principle of continuous improvement.

If an organization wants to succeed, it must
constantly develop and cannot be satisfied with it’s the current state. It
follows a series of obligations that must be met, but there are many advantages
that it ensures. One of these is to ensure the competitiveness of other
organizations and to strengthen their position in the market. Managers should
continually seek opportunities to improve the efficiency and efficiency of the
organization’s processes rather than waiting for problems identified that
improve opportunities. Improvements cover the range from small continuous
operations to long term strategic improvement projects. 99 speedmart
organizations must have a process in place to identify and manage improvement
activities. Higher management must ensure that commitments to continual
improvement do not affect the quality policy and quality-related goals.
Proposals related to improvement of the project are based on fact-based
decision-making within the organization to obtain different measurements and
analysis, in the management system, to achieve customer needs and expectations
such as examinations, and to record self-assessment results of the quality
management system. Quality improvement must be understood as activities that
increase capacity to meet customer needs and expectations, which can only be
understood at the level of technical regulation. It is absolutely necessary to
understand factors such as quality and productivity, flexibility, delivery
conditions, and cost minimization. In this sense, it should be implemented to
improve projects and organizations, and appropriate methods should be used.

Quality
Services

Provide quality service by training
their staff it will increase their satisfaction of the company. In addition,
the quality of the 99 speedmart will be enhanced too because users will share
their good experience on the services to other people. Moreover, the customer
will gained their loyalty toward 99 speedmart directly as they are treated by
quality services.

By
providing high quality service, the number of service problems met by the users
will be decreased and become fewer. This is because 99 speedmart has set the
rules and regulation as well as the guidelines for its staffs to strictly
follow. When staffs follow the rules, the probability of making mistakes during
doing their task will be decreased. However, if the problems are unavoidable
and really happened, the staffs can resolve the problems quickly because they
can follow and adapt the set of process flows that predefined while dealing a common
situation and avoid these unnecessary steps when solving the problems.

On the other hand, providing high-quality service
can also increase the company’s profits because the cost of solving the
problems is saved and productivity will increase. In addition, greater customer
loyalty will also attract more customers therefore the profit will increase indirectly.

 

Information
Technology

99 Speedmart should find a very capable and
knowledgeable IT person to manage their Warehouse Management System. By having
a very capable IT person, they will be able to take full advantage of the full
potential of WMS to improve their operations and streamline processes. Once WMS
has its full potential, 99 Speedmart can change their operations from
labor-driven to system-driven. Using WMS and wireless scanners can reduce
manual data entry, manual placement, manual cycle counting and other manual
processes. By the processes, they can reduce manpower and increase
productivity. Making the most of WMS also means they can explore reporting
tools in WMS. By using WMS, they can generate the required reports and
customize the reports. Through these reports, it will help them monitor
performance and progress and ultimately help them plan for improvements.

Managers should train how to navigate WMS to find
the report they want and how to download and print the report. 99 Speedmart
should invest in MRP and strictly follow MRP forecasts. MRP works well because
it is a forward-looking system. The predictability of events allows careful
planning and reduction of unnecessary inventory. By strictly using MRP and
following MRP’s predictions, the 99 Speedmart will be able to avoid high
inventory or non-stock availability. In addition to MRP, Speedmart 99 should
also invest in ERP. By using ERP, it will help them in resource planning and
overcoming their productivity issues. Not only can ERP help plan operations and
supply chains, but it can also help other areas such as human resources and
finance.

Layout
Management

The arrangement inside the store is very poor.
Finding items in other store like Tesco is much easier than 99 Speedmart where
every lane is labeled properly and items are grouped in a good manner. 99
Speedmart had a less attractive arrangement and lacked proper labels for their
lanes. They don’t place much effort in making their display attractive.

99 speedmart in the occupation of the warehouse
should be well planned layout. 99 speedmart should also determine the size of
the warehouse so that there is no space issue for the organization. This is
known as designing a warehouse that will determine the appropriate layout of space
and operations needed. Warehouses should have loading and integration areas,
staff walkways, Value Add Services work areas, offices and more. With this
proper layout, the warehouse will look organized and spacious. A warehouse will
look like this: The layout of the warehouse is not well-planned and will
eventually look like this: An appropriate warehouse layout is as follows: The
layout above shows a traffic flow from receipt of the goods to delivery. Its
plan is very good, to ensure the smooth flow of material in the warehouse.
99Speedmart should follow the footsteps of other MNCs, before taking over the
warehouse, should focus on warehouse layout design. A well-planned layout will
ensure that warehouses operate efficiently.

However, there are many operational concepts that
can be implemented by 99Speedmart to better utilize the space: using vertical
space is called cubing out the warehouse. This means that the shelf is as tall
as the ceiling and attached to the wall. It allows items to be stacked one on
top of the other without causing any damage. In this way, they can use space
without disturbing the ground floor. As a result, 99Speedmart stores maximize
the warehouse’s net height.