The company faced significant inefficiencies in its inventory management due to mismatched data between actual incoming and outgoing stock and the Auto count Inventory System. Manual counting errors, reliance on batch verification, and human error in data entry led to stock shortages and delays in ordering. Additionally, the system lacked a proper mechanism to trigger reordering at the right time, causing supply chain disruptions and production slowdowns. To address these issues, the company implemented a Min-Max quantity system in the storage room, integrating IoT sensors to detect bin levels and trigger automatic reorder alerts when stock levels reached a critical point.
The Digital Lean implementation resulted in substantial cost savings and efficiency improvements. By automating inventory monitoring, labor costs were reduced by RM48,000 annually due to the elimination of manual stock counting and verification. Additionally, the improved accuracy in inventory tracking minimised over-ordering and shortages, leading to an estimated RM35,000 reduction in excess stock costs. The integration of IoT sensors further enhanced real-time monitoring, reducing downtime caused by stock mismatches and streamlining the supply chain process. With these enhancements, the company is now positioned to optimise inventory management, ensuring seamless operations while preventing unnecessary stockouts or overstocking.
