Guidelines for Improving Inventory Management Efficiency in Shelf-Life Controlled Warehouses: A Case Study of Grand Homemart Co., Ltd.

Abstract

The management of warehouse inventory with limited shelf life is a crucial factor affecting organizational efficiency in the construction materials industry, particularly with cement, adhesives, and grout. These materials are highly sensitive to time and environmental conditions, such as humidity, temperature, and improper storage methods. These factors cause a rapid decline in product quality, making the materials unusable according to industry standards and resulting in expiration issues. Such issues lead to hidden costs that impact both business performance and customer confidence.

Expired inventory in the construction materials sector often results from several contributing factors, including inaccurate purchase planning, a lack of systematic expiration date tracking, non-compliant storage practices with inventory rotation principles, and insufficient staff awareness of product lifespans. If left unmanaged, these problems can lead to increased warehousing costs, expenses for product disposal, lost sales opportunities, and environmental concerns due to waste from unusable products.

This research aims to explore strategies for managing warehouse inventory with limited shelf life, focusing on cement, adhesives, and grout in Thailand’s construction materials industry. The study employs both qualitative and quantitative research methods, including case studies of retail and wholesale businesses in the sector. The analysis focuses on identifying factors contributing to expired inventory and practical solutions for reducing such occurrences.

The study also includes an analysis of the costs associated with expired inventory, such as storage space, disposal, missed sales opportunities, and corporate image impact. Moreover, it explores the use of automated warehouse systems that integrate information technology and expiration alert systems to efficiently manage time-sensitive inventory.

Expected outcomes include proposing strategies to enhance warehouse system efficiency, such as the implementation of the First Expired First Out (FEFO) method, adoption of Warehouse Management Systems (WMS) for precise expiration control, staff training to improve inspection and rotation skills, and leveraging technology like barcodes or RFID for real-time inventory tracking. These measures are anticipated to reduce storage costs, improve inventory turnover, and minimize the risk of product expiration before sale.

This research will benefit construction material businesses by improving warehouse systems suited to managing time-sensitive products. The proposed solutions can be practically applied to increase inventory management efficiency and can further serve as the foundation for developing long-term business policies and strategies that are sustainable and aligned with modern digital management principles.