Millennium Distribution System, Inc

(MDSI) Visit and interview

I. COMPANY BACKGROUND

Millennium Distribution System, Inc (MDSI) is the third largest Nestle Philippines, Inc.'s distributor in the country, MDSI Legazpi is the sole distributor of Nestle brands in Albay located at Lakandula Drive, Tahao Road, Legazpi City and known to be the BEST DISTRIBUTOR for Nestle Philippines Inc. In 2010.

II. NATURE OF BUSINESS

Warehousing and Distribution (Trading)

III. MARKET COVERAGE

MDSI Legazpi is widely distributing Nestle brands in the total areas Sorsogon, Albay District 1, 2 & 3 including large Trading companies such as, JY, Daraga Public Market and other wholesalers within the said areas they also have a satellite warehouse in Virac, Catanduanes.

IV. OPERATIONS PROCESS/ACTIVITY

V. INVENTORY MANAGEMENT AND CONTROL METHODS USED/ACCEPTED

They are using the Inventory Planning Worksheet system, an IT based system that can automatically compute the offtake or the sales per day, and it can also computes the total volume that they need to replenish.

V. ASSESSMENT/EVALUATIONBased form the results of the research through interviews, the inventory methods namely Min Max planning, Order Cycling, ABC Analysis,and Two bin System were not exactly being used by the companies by its particular name likewise, there is a system being used that effeciently identifies the inventories. Technology is being used through IT operators that plays major role in identifying the volume of inventories by encoding the offtake per day. The methods they are using is the Inventory Planning Worksheet system. Forecasting every week is the major factor in decision making in when and how much to order. They have to maintain the 10 days buffer or the lead time in replenishing their items.

MDSI have a minimum offtake of 100 (boxes of items) per days and 500 (boxes of items) per week.

They have a 5 selling days a week and 10 days buffer (lead time).

Delivery is 3x a week (M-W-F). Forcasting is done weekly

We can relate their methods of inventory in Min-Max Planning and Order Cycling methods.

VI. Recomendation

Documentation