STORAGE IMPROVEMENT OF A SMALL RETAILER

Abstract

This research focuses on establishing inventory policy and improving storage operations for a case study which is a small retail shop in Bangkok. The main purpose of this research is to support the growth of small retail shop in the ways to increase efficiency of storage operation, increase storage usage area and satisfy to the customers’ satisfaction on time waiting of goods picking. The research starts from studying the current issues of the storage which the problems found are storage operation has no management system, no clear stocking area as well as no inventory management system. The improvement method starts from checking efficiency of the storage operation by measuring the usage area for each type of goods, time of picking and accuracy record in order to know the storage operation at that time. Then setting up policy to support and improve storage usage to be more systematic with categorisation of all types of goods based on analysis of ABC analysis, layout arrangement for stocking area with order of popularity as well as policy set up for inventory management with consideration of purchasing policy in order to reduce the stock keeping unit but still be able to respond mainly to the need of the customer. Finally, measuring of efficiency parameter for storage usage which can be clearly seen from usage area, stock record accuracy and time picking in order to satisfy the need of customer as measured before the start of improvement. The results from the storage improvement show 20% increased in vacant space within the storage. Also accuracy of stock keeping in each type of goods has been increased by 17.40% on average. The service time to pick goods from storage, which is used as indicator for customers’ satisfaction, can be reduced by 10.73%. This suggests the increased in customers’ satisfaction. According to the improved results, it can be concluded that the efficiency of storage usage can be increased and applied to work in reality.