The Improvement of Inventory Management in a FMCG Company

Companies in the retail market encounter a number of external and internal factors that impede effective inventory management. It is necessary to find a balance between a high level of logistics service in terms of product availability on the shelf, otherwise the activities of previous links in the supply chain do not matter, and the costs of managing the company's inventory, and the costs of purchasing, replenishing, and maintaining the inventory. There are many suppliers of beauty products which are located around the world. This fact increases uncertainty about the timing of product delivery and increases the risk of shortages. The purpose of the study is to propose an approach to the inventory management of beauty products of private label to improve inventory management and reduce inventory related costs. The object of the study is the system of inventory management of private label products. The methods and models of inventory management used in the management of inventory of CTM products, as well as the process of inventory management of CTM products are the subjects of the study. To achieve the goal, it is necessary to solve the following objectives: • To carry out an analysis of the economic activity of the company; • To analyze the logistics activities of the company; • To analyze and evaluate the indicators of the state of the stock of products of private labels; • To consider theoretical approaches to inventory management, methods and models of inventory management; • To develop an algorithm of inventory management of private labels; • To develop proposals for organizational-functional interaction of departments of the company in inventory management; • To assess the economic efficiency of the proposed solutions. To solve the problems of the study theoretical, empirical and mathematical methods were applied: • Analysis of the current inventory management activities of the company; • Interviewing the company's inventory management specialists; • Processing of data on shipments, deliveries and stock balances of private label products, stock status; • Modeling of inventory behavior in selecting different inventory management models; • Comparison of inventory management models based on the results of simulation of inventory behavior. The work includes three chapters. The first chapter presents an analysis of the economic activities of the company, the analysis of the competitive environment of the company, its place in the retail market of perfumes and cosmetics, the analysis of financial and economic activities of the company and its logistics activities. The second chapter includes an overview of theoretical methods and approaches to inventory management in logistics. The third chapter contains proposals for improving the efficiency of inventory management of private label products, including proposals relating to the organizational-functional interaction between departments of the company within the process of inventory management. The last section of the third chapter assesses the economic efficiency of the proposed solutions. The volume of the thesis: 94 pages. Figures: 20. Tables: 40. Literature sources: 57. Appendices: 3.