Abstract
This article describes the reengineering of the stock replenishment system at MelCo, a large company that manufactures tools and fastening systems and distributes over 3000 products to the construction, mining, and hardware industries in several countries. An Australia-wide retail network of nearly 30 branch service stores is supplied by a central warehouse located in Melbourne. In the early 1990s, unsatisfactory inventory control was resulting in inaccurate and inappropriate stock levels that inhibited stock distribution and resulted in excess inventory. Following the collapse of the old system, MelCo developed a system where inventory description, planning, and distribution are directly linked in a network that covers all the branches. MelCo has used and modified the system, changed operating procedures, and trained the staff with the aim of on-line inventory information and continuous data update across all the branches. This study examines the planning and implementation used by MelCo in reengineering of the stock replenishment system. Specifically, this article discusses the development of the software, employee training, and management support and the difficulties, benefits, and lessons learned from such a change.
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Sohal, A.S. Reengineering the Stock Replenishment System: An Australian Case Study. International Journal of Flexible Manufacturing Systems 14, 87–98 (2002). https://doi.org/10.1023/A:1013868129325
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DOI: https://doi.org/10.1023/A:1013868129325