3 Key tools for inventory management

1. Flow diagram

First of all, it is shown a flow diagram for a book order of Amazon. This diagram describes the full process for a book order in Amazon (https://www.amazon.es/). As you can see, it is possible identify different improvement areas according with the information flow. For example, in this case it is possible identify the significance of the process of registration: (1) creating a new account o (2) register as a guest shopper (not available).

Areas of improvement: register as a guest shopper:

-dispensable processing, and

-duplication excess.

amazon-flow-chart

Source: Reproduced from <https://mscott865.wordpress.com/2012/11/13/amazon-book-order-flow-chart/&gt;. Accessed: 02/25/2016.

2. The ABC analysis

Secondly, the ABC analysis determines the relation between the factors A, B and C. Represent a hierarchical analysis in order to determine the priorisation around the different options.

Category A: the category for items that are outstandingly important, or business critica.

Category B: the classification for items of average or middling importance.

Category C: the designation for relatively unimportant items.

Important to weigh the relevance of the stock inventory. Related to Pareto 80-20.

ABC-Classification-Chart-552x320

Source: Reproduced from <http://www.eazystock.com/blog/2015/07/10/how-does-abc-analysis-affect-inventory-optimization/&gt;. Accessed: 02/25/2016.

3. Geographical analysis

Finally, in this picture it is possible identify the geographical distribution of Amazon in the United States. This representation allows analyze itineraries for an improvement proposal and get an overview of the company. Logistics is about time, this picture represent the vast organization that Amazon dynamizes (only et the United States).

Amazonblog2

Source: Reproduced from <http://www.mwpvl.com/html/amazon_building_new_sortation_network.html&gt;. Accessed: 02/25/2016.

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