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Assessment of inventory management for a high annual turnover product

Karachaliou Eleni

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Summary

The subject of the present thesis is the function in general of a 3PL company with pharmaceutical products. In more detail, it analyses the methods that a warehouse is created and organized, following the principles and procedures of Good Distribution Practices and Lean Management, regardless of product type, and then specializing in a product with high annual turnover. This product is examined from its import in the warehouse, analysis of the way the orders are prepared, loading and routing to the final customers. In addition, a complete analysis of the organization of a distribution network is performed, directly to the customers, or by using Cross Docking centers. The way the distribution network is organized is a matter of great importance, because it contains the most unbalanced factors that affect both the implementation of the project (satisfied customers) and the cost. This analysis is linked to a variety of parameters, related to quality and cost criteria, with historical data provided by the company, in order to achieve the most profitable operation of the company, combined with the best possible service to all customers. Finally, in this thesis, after organizing and presenting three possible scenarios, it becomes clear that the use of Cross Docking centers is necessary as the most advantageous method of organizing distribution networks.

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