Structured Process Analysis

Structured business processes are systematic workflows characterized by well-defined inputs, outputs, and a consistent sequence of steps.

We will focus on Lowe's inventory management process. The scope of the inventory management process at Lowe's is the inbound process, which encompasses the routine receipt of incoming shipments and their subsequent allocation to the relevant locations or customer orders. This is followed by a meticulous fulfillment checklist, ensuring that all customer orders are accurately prepared for dispatch. Additionally, part of the process involves a periodic evaluation of stock levels to determine which items need to be replenished to maintain adequate inventory.

Structured business processes are systematic workflows characterized by well-defined inputs, outputs, and a consistent sequence of steps.

We will focus on Lowe's inventory management process. The scope of the inventory management process at Lowe's is the inbound process, which encompasses the routine receipt of incoming shipments and their subsequent allocation to the relevant locations or customer orders. This is followed by a meticulous fulfillment checklist, ensuring that all customer orders are accurately prepared for dispatch. Additionally, part of the process involves a periodic evaluation of stock levels to determine which items need to be replenished to maintain adequate inventory.

The steps required to complete the process are

1. Product Reception and inspection 2. Product Sorting and stocking 3. Customer order management 4. Order fulfillment and shipping 5.  Stock replenishment.

Flowchart of Inventory process:

The implementation of this inventory management process at Lowe's generally leads to a well-organized store and ensures a high level of customer satisfaction. However, like any process, it is not without its challenges and potential issues.

A. Organization and Efficiency: The primary objective of the inventory process is to maintain a well-organized store. When followed diligently, it ensures that products are readily available to customers, shelves are adequately stocked, and there is a logical arrangement of items throughout the store. This organization enhances customer experience and makes it easy for employees to find and restock products, contributing to overall efficiency.

B. Customer Satisfaction: With accurate and up-to-date inventory, Lowe's can meet customer demands promptly. Customers can find the products they are looking for without encountering frequent "out of stock" issues. This results in increased customer satisfaction as they can rely on Lowe's to fulfill their needs, ultimately leading to repeat business and positive word-of-mouth.

C. Minimizing Overstock and Understock Issues: While the process may face challenges related to overstocking or understocking due to customer returns, it is  designed to minimize these issues. The process includes the crucial step of assessing stock levels after each shipment. This assessment helps in identifying discrepancies and taking corrective actions promptly, ensuring that excess or inadequate stock levels are addressed before they cause significant issues.If this process is followed for every new inventory shipment, it will keep the store organized and customers satisfied.

One prominent challenge within this process is related to customer returns. When customers return items, it can disrupt the inventory accuracy. For instance, in scenarios where a particular product is already running low on stock and has been accounted for in the inventory, receiving a new shipment can create complications. This is due to the possibility of either overstocking or understocking the product.

If the received shipment contains more units of a product than originally anticipated, it can lead to overstocking issues. Overstocked items can tie up valuable shelf space and capital, which could have been allocated to other products. On the other hand, if the shipment is insufficient to meet the demand, it results in understocking, potentially leading to missed sales opportunities and customer dissatisfaction.

 

The information system that supports Lowe's inventory management process is the Zebra phone, a handheld device specifically designed for this purpose. It comprises five essential components that work together to facilitate efficient inventory control:

A. Hardware: The hardware component of the Zebra phone is the physical handheld computer. It is a rugged and durable device with a built-in barcode scanner and touchscreen interface. This hardware allows employees to interact directly with the inventory system, scan product barcodes, and access relevant information.

 

B. Software: The software component includes a suite of applications integrated into the Zebra phone. These applications are designed to support different aspects of the inventory process. Key software applications include:

 

·Inventory App: This app enables employees to check the availability of products, their location within the store, and their current stock levels.

·Orders App: Employees can use this app to place orders for low-stock items, initiate restocking procedures, and manage product reordering efficiently.

·Products App: This app provides detailed information about the products in stock, including descriptions, prices, and supplier details.

C. Communication: The Zebra phone is connected to Lowe's private Wi-Fi network, ensuring seamless and secure communication. This connection allows real-time updates and data synchronization, enabling employees to receive and send inventory-related information instantly.

D. Database: The database component of the information system stores and manages all relevant inventory data. It stores information about product counts, location data, historical sales, and order records. This database receives updates from the Zebra phone applications, such as notifications about low-stock items, enabling accurate tracking of inventory levels.

E. Users: Employees and supervisors play a crucial role as users of the Zebra phone. They employ these devices based on their specific needs and responsibilities within the inventory management process. Employees use the Zebra phone to perform tasks like checking stock levels, restocking, and updating product information, while supervisors utilize it for overseeing inventory control and ordering decisions.The information system that supports the inventory process is a device called the Zebra phone that monitors the location and count of products in the store. This information system contains five components that help it run efficiently. The hardware is the physical handheld computer, and the software is the apps integrated into the phone such as orders, inventory, and products. The communication is the phone being registered to the company's private Wi-Fi network. The database that stores the information gets messages from the updates of the Zebra phone such as orders on low-stock items. Lastly, the employees and supervisors use these phones according to their needs, which in this case would be to oversee and order inventory.

The company does face issues related to information silos in the inventory management process. These silos are particularly evident when it comes to problems such as unaccounted-for stock. When customers return items or when discrepancies occur between the expected and actual stock levels, it can lead to an information silo where the inventory data is not in sync with the physical stock on hand. 

However, our information system, the Zebra phone, plays a pivotal role in eliminating these silo problems. The Zebra phone allows for real-time adjustments to the inventory, whether it involves adding or subtracting the total quantity of a product. When unaccounted-for or returned items are discovered, employees can use the device to update the inventory records immediately. This ensures that the inventory data is accurate and up to date, bridging the gap between the information system and the physical stock. Despite the advantages of the Zebra phone, there are still some issues with the information system. The primary issues revolve around unaccounted-for stock and data loss. When stock is unaccounted for due to various reasons, it can disrupt the accuracy of the inventory data, even with the capability to make real-time adjustments. The Zebra phone is reliant on accurate scanning and data entry, and any errors in these processes can lead to discrepancies in the system.

CRM is an abbreviation for customer relationship management which is software that helps businesses manage sales cycles and customer experience. ERP is an abbreviation for enterprise resource planning which is also a system mainly used to manage businesses finances and resources to control the cost, as well as meet the business production goals. EAI is an abbreviation for enterprise application integration which is a solution to the lack of proper communication between enterprise apps. The major ERP vendors are Oracle, SAP, and Syspro. Our company uses Oracle cloud solutions as of last year.

An inter-enterprise information system is a system that is shared by two or more independent organizations. No, this company does not have an inter-enterprise information system. This company does not need an inter-enterprise information system because it would produce an extra cost for the company.

Flow Chart Inventory ProcessingFlow Chart Inventory Processing