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Essay Samples > Business > Nestle Company
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Nestle Company

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An inventory system can be defined as an automated process of tracking and managing goods or raw materials. It comprises software and hardware that provides automatic identification of processes of inventory. The inventory could be goods, equipment, tools and so on. They mainly encode a variety of letters and numbers, symbols to enable them encode merchandise. Hence, the inventory system uses real time using wireless technology to send information to a computer system every time a transaction takes place (Dinsmore, 1922). In this paper, we shall focus on Nestle Company a world leading nutrition, health and wellness company that deals with several products. The company uses autos-replenish inventory system to manage and deploy consumable items. This guarantees that raw materials are in stock whenever they are needed. They are re ordered when the level goes down.

Auto replenish programs have made it possible for Nestlé Company to accurate demand projection through good forecasting. This also enables shorter product development cycles and product proliferation. Nestle company has also reported success in using the automated inventory replenishment program. This is because of the various programs the company implements in it various departments. These include; Continuous Replenishment Planning (CRP) and Vendor Managed Inventory (VMI), the later assumes responsibility for deciding shipment.

Other types include Efficient Consumer Response (ECR) and Quality Response (QR).the integration of these programs has balanced product availability against taking unnecessary high stock levels. The program has also replaced extensive commitment to inventory holding for Nestle because of effective use of information (Angerer, 2006).

However, it has been quite costly to implement and maintain the automated inventory for Nestle Company. At times, the work has been hampered due to system breakdown that has seen the company verify stocks physically in order to ensure stores ledger balances reconcile the bin card balances. In conclusion, it has been evident that automated Inventory System has benefited Nestle Company since it has seen the company employ experienced personnel thus creating moral check. Incase of an unseen calamity such as fire, it has proved easy retrieval of stock figures. It is easy also easy to detect obsolete and slow moving raw materials through the systematic review of the inventory system.

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