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Improving the Efficiency of Inventory Management of Perishable Products in the Case of a Large Russian Retailer

Student: Iuzhakova Darina

Supervisor: Elena Startseva

Faculty: Graduate School of Business

Educational Programme: Strategic Management in Logistics (Master)

Year of Graduation: 2021

New consumer trends require food retailers to provide more and more extensive service, convenient delivery, and always-filled store shelves with fresh products. In the fight for consumer attention and competitive advantage, retailers are constantly reviewing and improving their processes to reduce their total costs and increase their efficiency. Perishable products always require maintaining a high stock, which increases logistics costs accordingly. To ensure an optimal level of product stocks, it is necessary to take into account not only the volume of replenishment, but also the time of replenishment, the duration of related processes, as well as short-and long-term risks. The research carried out in this work is aimed at developing and creating such measures that would allow the company to manage its inventory more effectively, both in the import market and in the local market, by establishing coordination with suppliers, as well as analyzing risks and opportunities in the supply of products. The result of the work is the reengineering of the inventory management process in the company, which not only reduces the total logistics costs for the purchase, but also increases the revenue and profit of the company, thereby increasing the efficiency of inventory management in general.

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