Stationery Inventory Analysis - Pan India

1 1.0 Objective

2 The purpose of this document is to analyze the current stock holding of Stationery items, highlighting the fast-
3 moving and slow-moving items in the inventory, and recommend plans for effective Inventory management of
4 stationery items and rationalize costing in stationery procurement in Amazon Corp offices, Pan India. This
5 exercise excludes CS sites and business centers, Pan India.

6 2.0 Data Collection

7
8 As part of this study, as on end Sep ’23, the following data were collected from Pan India sites:
9 a. Current stock of stationery items with value.
10 b. July, Aug & Sep 2023 – Run rate.
11 c. Excess stock with value of each line item.
12
13 3.0 Stationery Inventory Analysis
14
15 Amazon follow direct model for procurement of stationery for Corp offices. M/s Elite Global and M/s Arkbiz
16 are selected direct vendor partners for Amazon’s stationery requirements. The contract with both vendors is
17 live. The site IFM teams place monthly orders directly to the vendors, basis requirements at sites. The PO for
18 Pan India stationery is released as part of annual PO process.
19 In Stationery category, there exists a total of 156-line items which are being utilized across sites. Some sites
20 use all 156-line items and some don’t and a total of 44 unique line items are there in overall Pan IN. The total
21 value for Pan India current stock is ₹ 2.86 Cr (*$ 3.44 Mn.) wherein the average monthly consumption value is
22 ₹ 95.91lac ($ 1.15 Mn.). Thus, a value of ₹ 2.37 Cr ($2.86 Mn.) excess stock available across sites.
* USD MM, 1 USD = INR 83 is the conversions value used in this doc *

Location wise excess stock value Pan India

Location INR (₹) USD ($)

DEL 18,23,948 21,975
PNQ 5,56,946 6,710
BOM 4,81,795 5,805
HYD 49,04,473 59,090
BLR 1,25,88,958 1,51,674
MAA 34,17,004 41,169
TOTAL 2,37,73,125 286,423

23 The consumption of each item over a defined period (July, August, September 2023) was collated, keeping the
24 present RTO trend in focus. This helped us in identifying the line items which are fast-moving and slow-moving
25 in the inventory. Site specific dashboard - Pan India data ref., Appendix A .
26 Location-Site wise Excess stock for Pan India is placed at Appendix B.
27
28
29 Highlights of the Analysis – Top 10 line items with excess stock
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 Stationery Inventory Analysis - Pan India
30
UNIT PRICE AVERAGE CURRENT EXCESS STOCK EXCESS STOCK
CURRENT
ITEM DESCRIPTION QUANTITY ( AS PER CONSUMPTIO STOCK AS PER RUN VALUE AS PER
STOCK INR
AGREEMENT) N QTY QTY RATE RATIO RUN RATE
QTY RATIO INR

Polyvision wet marker Pack of 4 790 722 5,253 41,49,870 4,531 35,79,227

CAMLIN HI-LIGHTER
Pack of 10 185 1826 17,012 31,47,220 15,186 28,09,472
MARKER PEN
Lens Wipes Pack of 30 165 1,946 12,280 20,26,200 10,334 17,05,073

Kangaro Staple Pin No.24

Pack of 20 245 17 4,235 10,37,575 4,218 10,33,410
/ 6 PK
CAMLIN EXAM PLASTIC
Pack of 10 77 704 12,761 9,82,597 12,057 9,28,415
SCALE 12 INCH

GLUE STICK Pack of 10 172 417 5380 9,25,412 4,963 8,53,682

EVEREADY HEAVY DUTY

BATTRY-AAA/R03 1.5 V Pack of 10 147 771 6,027 8,85,998 5,256 7,72,647
1012
Cello Gripper Ball Pen 0.5
MM - Blue, Black, Red PK Pack of 5 25 1,092 30,317 7,75,925 29,225 7,30,620
5
Plastic Key Chains With
Name Tag - 1766 Omega Pack of 50 155 71 3,826 5,93,030 3,755 5,82,077
KCL 20 Pc/Pack
DURACELL AA (LR6)
Pack of 10 147 203 3,547 5,21,468 3,344 4,91,617
ALKALINE BATTERY PK 8

31
32 Challenges observed in Stationery Inventory Management.
33 a. It is observed that Corrigo tool to manage inventory is not been utilized to update real-time data,
34 across Pan India except few sites.
35 b. Manual order processing is inefficient and resource intensive. It is also prone to human errors and
36 inaccuracies, perpetuating inaccurate forecasts and replenishment.
37 c. Analysis indicates that, IFM team doesn’t look out for trends in historical demand data and adjust
38 inventory forecasts accordingly. Teams are placing monthly demands on line items, so as to utilize the
39 full budget allocated and avoid variance in budget vs actuals.
40 d. Absence of ‘Demand forecasting’ technique in placing indent, by the IFM teams across sites is one of
41 the lacunae in effective inventory management, resulting in excess stocking of items. This, in turn, has
42 resulted in capital tied up on excess stocks.

43 Recommendations.
44 a. The Storekeeper and the Asst. Manager Facilities play an important role in maintaining a healthy and
45 ‘just-in-time’ stock level at site. They need to identify trends, adjust forecasts based on usage, remove
46 ‘real’ demand outliers and account for forecasting inaccuracies. Introduction of Inventory Forecasting
47 Software, may be a way forward. The use of technology will certainly reduce the human interference/
48 negligence.
49 b. Pens. Pentonic B-RT Ball Point – at cost price of ₹ 14.40 can be replaced with Cello Gripper Ball Pen
50 0.5 MM at a cost prize of ₹ 4.6, resulting 68 % of cost saving.

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 Stationery Inventory Analysis - Pan India
51 c. Lens Wipes. The placement of lens wipes at business floors may be revisited as the current
52 proportion of employees using spectacles is relatively less when compared to the demographic profile
53 at the Corp offices. Also, considering the regional nuances & employee behavioral aspects, the
54 placement of lens wipes will only accentuate the embezzlement or misuse. Hence, the same is
55 recommended for deprecation.
56 d. Camlin Plastic Scale & Calculator. As the usage is negligible, the same is recommended for
57 deprecation, from the Master Inventory list. If approved, an amendment to the agreement can be
58 taken up with the vendor and a fresh list can be promulgated by the GREF Procurement, to all IFM
59 teams.
60 e. Binder Clips. Suggest to order one specific size to avoid multiple inventory on the same line item.
61 f. Stick notes. Ordering to be standardized to one size to avoid excessive stock to be frugal.
62
63 Way Forward.
64 Regular audit of stores to identify surplus or shortages would prevent overstocking or understocking issues
65 and the consequent holding of excess stocks. In order to tide over the excess stocks, the IFM teams needs to
66 stop placing fresh indents for the time-being and undertake intra-city (between the sites) movement of stocks,
67 based on firm demands.
68 Understanding the usage pattern based on three months run-rate, would help in accurate evaluation of the
69 requirement of a particular line item. Further, moving forward, all the monthly indents are to be scrutinized at
70 FM level and thereafter, order may be placed with the vendor.
71 Appendix A - Site wise Dashboard

72
73 Appendix B – Location-Site wise Excess stock.

74
75

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