BSBCRT611_AssessmentTask2_ScopeComplexWorkplaceIssue_Q1

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Queensford College *

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50420

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Management

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Feb 20, 2024

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docx

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Name: Marc Milfred Dela Torre Unit: Apply Critical Thinking for Complex Problem Solving Task 1: Scope Complex Workplace Issue Overview : In this assessment, I will be using my current employment with Australian Quality Exporters as a storeperson/delivery driver. AQE is a small business distributing meat products all around the NT. My position reports to the Business Manager and the Business Manager, in turn, reports to the Director. Job Descrption Summary : Storeperson/Delivery Driver – This position is a combination of two positions. The person will be responsible for receiving replenishment products into the warehouse, picking of customer orders, the despatch of orders for delivery to customers, and driving the delivery vehicle to deliver the orders to the right customer on scheduled delivery days. This position is responsible for inventory monitoring so managers can make the correct decisions in terms of order replenishment stocks from our suppliers. The storeperson is also generally responsible for looking after the cleanliness and upkeep of the warehouse. Possible Workplace Issue: The possible workplace issues that I want to tackle in this assessment are as follows: 1. How can we improve inventory management in AQE? 2. How can AQE avoid stockouts? Objective: The objective of this is to effectively identify techniques to make process improvements for the inventory management practices of AQE. These improvements can allow AQE to operate a better pull- system type of supply chain. It can also help AQE avoid stockouts that can affect customer satisfaction. Risks in Solving Workplace Issue: Possible risks in providing a solution to the inventory management practices of AQE are as follows: 1. Resistance to change in improving inventory management practices 2. Since AQE is a small business, management might consider the changes to be creating more work for the personnel that is currently with them Approach in Solving the Workplace Issue: I will consult with my Business Manager and the Director. I will be presenting them with the advantages of having good inventory management practices applied in AQE, no matter how small. How these practices can help AQE deal with customer satisfaction and significantly reduce storage costs for AQE by reducing and effectively controlling inventory levels. How these practices can help AQE operate a better pull-system type of supply chain. I will be providing template samples of documents that we can use for the proper documentation of value-adding activities in the supply chain.

I will be integrating my knowledge in Diploma of Logistics, specifically, the pull-based system of supply chain into tackling this issue. From there, I can generate better ideas and techniques that I can apply in AQE to address the issue. Required Resources: To solve this issue, a few resources that I will be using are: 1. Storeperson/Delivery Driver Job Description 2. Current Practices in Dispatch and Receiving to Develop a Documented Procedure for AQE Role Play: Consultation Meeting Attendees: Adam – Director Jake – Business Manager Marc – Storeperson/Delivery Driver Marc: Hey guys, good morning. I appreciate you getting time off your day for this meeting. Adam: No problem mate. Jake: Good morning Marc. Marc: So, we're gathered here today to discuss two things. Firstly, I would like to address the recurring issue of stockouts and how this issue affects the overall satisfaction of our customers. Second, how can we improve our inventory management? Adam: Yes, I have seen that stockouts have been occurring constantly and I have been receiving complaints from our customers about it. Don't you agree Jake? Jake: Yeah, same here. I've been getting calls left and right about it. We need to address this issue if we are to retain our customers and continue doing business with them. Marc: Great! I see we're on the same page about it. Adam: So Marc, let us start with why you think this happens. Marc: I think this happens because we don't have an exact idea of what our customer needs. We need to look into the current customers we have and what their needs are. Then we can correlate that with what need to have in our inventory up here in Darwin. Jake: I see, so you mean to say we need to adjust the products we have with what we can sell our push to our customers. Marc: Not entirely. What I mean to say is that our order of replenishment stocks will be based on our customers’ recurring orders and what can push to sell to the current market here in Darwin.

Adam: I see. So how will this address stockouts? We can keep our storage costs low with this practice but what if a few customers decide to order than what they normally do? Wouldn't that cause shortages? Marc: We will be more technical about this and I will be basing this study with the ordering trends with the current market that we have. Adam: How will you go about that? Marc: First and foremost, we need to establish a practice of actively monitoring our inventory. I mean monitoring it live through proper documentation of orders that we dispatch for delivery and the replenishment stock that we receive weekly. That way we can have updated inventory level monitoring. Jake: Will we be needing a software system for that? I am not that techie, so it is going to be a challenge for me. Adam: Okay, I'm going to need to invest in another system for this. Considering the size of this business, I don't think we can do it right now. This is going to entail more work. Marc: Not at all. We can do it through a simple spreadsheet. First, we are going to do a stocktake then that will be our baseline. The numbers that I will gather will then be inputted into a spreadsheet. Not to worry, I already have a template in mind. Now this template will allow us to update inventory levels on daily basis. Depending on the products we dispatch for delivery and the products that we receive into our inventory. Adam: Honestly, I don't want you to do more work than you should Marc. Marc: Only the first stocktake will entail the most work. Maintaining this type of practice will not entail much work at all. Me and Jake can work together on this. I will be responsible for creating the dispatch and receiving document and Jake can be responsible for encoding it onto the spreadsheet so the inventory numbers will update. On average, encoding will take about 2 minutes and for me to create the dispatch and receiving documents will take me 5 minutes at most. It is only a simple system, but this can significantly help us immediately address the recurring issue of stockouts. Furthermore, it is not an additional investment and perfect for the company's size and operations. Adam: I see. Let me think about it first. Marc: Monitoring inventory is on my job description as well. So it is my responsibility to keep track of our inventory levels. Jake: Seems like no trouble at all. Marc: Okay, thank you for your time. I hope we can work this out. Adam: Thank you for your recommendation, Marc.

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BSBCRT611_AssessmentTask2_ScopeComplexWorkplaceIssue_Q1

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