REDUCTION OF INVENTORY COSTS

Production management systems can be expanded with additional modules to enhance their capabilities (e.g., Inventory Management, Customers/Suppliers, SAP, Identy, Production Settlement). This document describes the core module characteristics of a production management program.

REDUCTION OF INVENTORY COSTS IN A FINANCIAL INSTITUTION

The dynamic growth of our client in the financial sector prompted them to seek a solution that would streamline the fixed asset inventory process, lower its cost, and minimize discrepancies between the actual and accounting records of fixed, intangible, and legal assets. The client possessed approximately 30,000 fixed assets located in two office buildings.

INITIAL INACCURACIES AT THE CLIENT'S

The client was conducting inaccurate and inefficient inventories internally, often encountering errors in reported quantities and struggling to reconcile warehouse records. It turned out that the barcode system was also improperly managed, resulting in a large number of unlocatable equipment and devices and low inventory efficiency.

CLIENT EXPECTATIONS REGARDING THE SYSTEM

The client expected us to fully optimize the costs of the inventory process. They emphasized that this process should be synchronized with the enterprise’s central fixed asset management system. Additionally, the inventory should be conducted using mobile devices, such as barcode terminals with a proprietary application for fixed asset registration.

OUR PROPOSAL

We proposed to the client the implementation of a fixed asset registration system that would allow them to store data on the location of individual fixed assets, as well as their labeling in terms of component parts, using barcode labels. We also advised the client on the best mobile terminals for them and subsequently equipped them with five portable data collectors (with a built-in barcode reader) that enabled them to accurately and quickly read data from labels affixed to office building equipment elements.

OUR IMPLEMENTATION

We equipped the inventory system with a file containing the current fixed asset listing of the enterprise. We also created templates and then printed the appropriate labels to mark fixed assets. As a result, a team of employees from the asset management department’s inventory commission identified and affixed labels to all fixed assets within the institution’s resources. Approximately 30,000 labels were affixed to furniture, computers, and peripheral devices such as industrial printers, barcode scanners, and barcode terminals, etc. A team of five people equipped with terminals and a proprietary inventory application scanned all labeled fixed assets. The entire fixed asset registration process for the company took 7 working days.

INVENTORY KIT

  • HDF Inventory 6.0 Inventory Program
  • Portable terminal (with a built-in barcode reader) that enables quick and accurate data reading. The information obtained in this way is automatically processed by the IT system – significantly reducing the time needed to fill out inventory sheets and prepare inventory reports.
  • Labels for marking assets and locations, made of high-quality materials, making them resistant to external factors such as moisture, dust, or chemicals.

EFFECT – RETURN ON SYSTEM PURCHASE COST AFTER JUST 1 INVENTORY

As a result of the single inventory action, all equipment elements were recorded. Shortages in the equipment of some fixed assets were also detected, such as computer monitors, laptops, mobile phones, chairs, and office cabinets. Future time losses related to repeating these activities were also eliminated. Acceptance of new assets into stock and removal of old ones from the register also increased in efficiency. The implementation of the system enabled the identification of individuals responsible for entrusted property, who had not settled for it. Duplicate fixed assets and devices that were never reported were also detected (e.g., a radio that was purchased and left by one of the institution's employees). An additional benefit was the identification of equipment intended for disposal and liquidation, as well as the quick update of fixed asset information in the accounting system. After analyzing the entire inventory process, it turned out that all system purchase costs had been recovered after just the first inventory.

ADDITIONAL BENEFITS FOR THE CLIENT

Based on discussions with the client, we received feedback that aligned with their initial expectations regarding the inventory and amortization system for fixed assets. The new way of conducting the inventory process in the institution contributed to streamlining work and saving time on performing the same activities. Equally important was the satisfaction of employees with the results of their actions, a feeling of effectively performed tasks and control over the automatic identification equipment.