Junta SF Autodis + alumnos y profesores TEC 20260210 171617 Meeting Recording

Inventory Issues and Supplier Exclusivity

Current Problems with Inventory Management

• The company is facing significant issues, including a recent loss of approximately 100,000 pesos in missing inventory pieces related to King Walhatt. This situation necessitates urgent solutions to align processes with other smaller operations.

Supplier Exclusivity and Its Implications

• The business model relies on a single supplier due to an exclusive distribution agreement with Baslo, the only authorized distributor in the region. This exclusivity prevents them from selling directly to retail parts stores.

Challenges in Product Delivery

• There are complications regarding how products are sent by the supplier, particularly concerning delivery times and organization of shipments. Orders are often split among multiple workers leading to disorganized deliveries that complicate inventory management.

Impact on Service Quality

• The disorganization in receiving merchandise has negatively affected service quality, causing delays and uncertainty about piece locations which leads to inefficiencies when fulfilling client requests. Customers sometimes receive incomplete orders as a result.

Audience Engagement and Questions

Student Inquiries About Supplier Details

• During a Q&A session, student Fernando Senizo asked for clarification on the name of the supplier and details about their contract status with Baslo, indicating interest in understanding operational relationships better.

Clarification on Business Operations

• The speaker confirmed that Baslo operates out of Zacatecas and emphasized that they do not have a formal contract but maintain a family business relationship which influences their operations significantly. They also discussed where their warehouses are located and their expansion plans into new areas like Puerto Vallarta and Mazatlán.

Expansion Plans

• The company currently has three warehouses: one in Guadalajara (the main hub), another established eight years ago in Culiacán, and plans for further expansion into Puerto Vallarta soon while considering additional locations such as Colima later this year.

Exclusivity Constraints Explained

• It was reiterated that due to their exclusive agreement with Baslo, they cannot operate outside specific regions (Jalisco, Colima, Nayarit, Sinaloa), limiting competition but also restricting market reach compared to other companies like Autoiz who have similar agreements elsewhere in Mexico.

Company Operations and Inventory Management

Company Structure and Limitations

• The company operates in specific regions, including the Yucatán and other central and northern areas, which limits its expansion capabilities.

• Audience member Alejandra inquires about inventory management software used by AutodispuSa, highlighting a connection to international relations.

ERP System Utilization

• The company employs an ERP system named Kepler for comprehensive operations beyond just inventory management; it includes sales quotations, credit control, and accounting functions.

• There are considerations for migrating to alternative systems like Odoo; however, challenges with implementation have led to a preference for sticking with Kepler.

Financial Accounting Transition

• The company is initiating a migration towards SOHO books for financial accounting while remaining open to integrating more technological tools into their processes.

Methodologies in Inventory Management

• Student Aranza questions whether the company has considered methodologies such as ABC or FIFO for inventory management; the response indicates no formal methodology has been adopted yet.

• Current practices are based on historical methods without proven methodologies being implemented; there is openness to experimenting with new approaches.

Automation and Process Efficiency

• Ignacio from International Relations asks about automation in packing processes and the number of collaborators involved in managing machines.

• The order process begins when clients submit requests through the company's website or via field sellers who input orders directly into the system.

Order Processing Workflow

• Once an order is placed, it generates a ticket that guides warehouse staff on picking items based on client requests.

• Orders are categorized by client type (demonstrator, local, foreign), ensuring organized processing of deliveries.

Logistics and Inventory Management Process

Overview of the Order Fulfillment Process

• The process begins with categorizing orders into local and foreign requests, ensuring that each order is placed in the correct location for processing.

• Once an order is confirmed, it transitions to scanning items to verify that all requested pieces are present before generating an invoice. This step ensures accuracy in inventory management.

Delivery Mechanisms

• Local deliveries utilize a dedicated distribution utility with established routes, while foreign deliveries are collected daily and dispatched the following day to clients. This system enhances efficiency in logistics operations.

Invoice Generation and Inventory Updates

• Upon validating that all items are accounted for through scanning, an invoice is generated automatically by the system, which simultaneously updates inventory levels by removing sold items from stock.

• The automated nature of this process minimizes human error and streamlines inventory management, allowing for real-time tracking of available products.

Addressing Inventory Discrepancies

• Issues may arise where parts appear missing or unaccounted for due to discrepancies between physical stock and system records; these issues often stem from how items are entered into the system rather than actual shortages.

• Regular audits and checks can help identify such discrepancies, ensuring accurate inventory reporting and customer satisfaction.

Product Receipt and Validation Process

• When new products arrive at the warehouse, they undergo a thorough validation process involving scanning invoices and entering data into the purchasing system before being made available for sale. This ensures that only verified products enter inventory systems.

• Scanning plays a crucial role in confirming product availability within the inventory management system, facilitating efficient sales processes once validated as ready for public sale.

Competitive Landscape Analysis

Key Competitors in the Market

• Autodesk faces significant competition from companies like Riley, which has strategically positioned itself close to key client locations, impacting market share dynamics significantly.

• The competitive landscape includes both direct competitors like Riley as well as other firms that have emerged recently within similar operational territories affecting Autodesk's business strategies directly.

Challenges in Competing with Global Companies

Overview of Competition

• The speaker identifies Morza as a competitor, highlighting the disparity in scale between their smaller company and larger global firms that possess extensive infrastructure.

• Acknowledges the challenge of competing with inventory but emphasizes the importance of enhancing service quality to remain competitive.

Market Entry Challenges

• Discusses uncertainties in market entry processes, which hinder timely service delivery and customer satisfaction.

• Mentions potential for student visits to enhance local social engagement, indicating an interest in collaboration.

Understanding Competitors' Origins

Competitor Analysis

• Clarifies that Ray Lee is a foreign competitor, suggesting that Mexican companies face challenges from international firms operating within their market.

Student Engagement and Expectations

Student Involvement

• Highlights the need for further discussions with students to clarify questions as they begin their course.

Client Base Insights

• A student inquires about active clients; the response indicates nearly 1,000 active clients, showcasing business reach.

Criteria for Product Procurement

Purchasing Decisions

• A student asks about criteria used for purchasing decisions; however, the speaker defers this question to another expert who specializes in procurement.

Expectations from Students' Contributions

Desired Outcomes

• The speaker expresses hope that students will help standardize and improve internal processes at Autodesk by providing fresh perspectives on existing challenges.

Discussion on Humanitarian Crisis and Regulatory Compliance

Focus on Humanitarian Crisis and Internal Policies

• The speaker emphasizes the importance of understanding a company's internal policies regarding regulatory compliance before engaging with local government entities.

• There is a concern about potential risks associated with regulatory fulfillment, particularly in labor practices and corporate governance.

Institutionalization of Rights

• The discussion highlights the need for institutionalizing rights to improve regulations, indicating that current frameworks are inadequate.

• The speaker expresses openness to contributions from others in addressing these regulatory topics.

Wrap-Up and Future Engagement

Conclusion of Session

• The session concludes with gratitude towards participants, mentioning plans to share recordings with students and faculty for further engagement.

Planning for Visits

• A proposal is made for student visits, suggesting one student per group to facilitate better interaction during these visits.

Course Structure Overview

Transitioning to English Instruction

• The speaker shifts to English as required by contractual obligations while preparing to present course materials.

Course Details and Schedule

• An overview of the course structure is provided, noting it includes multidisciplinary elements across various groups.

Operational Insights into Company Performance

Challenges in Customer Service

• Discussion points out challenges faced by companies due to international competition affecting customer service levels within Mexico's energy sector.

Value Chain Improvement Strategies

• Key questions arise regarding how companies can enhance their performance through improved inventory management and technology amidst rapid changes in market conditions.

Company Profile: Wholesale Distribution Model

Business Operations Explained

• The company operates as a wholesale distributor of auto parts, focusing on B2B transactions rather than direct sales to consumers.

• Local delivery methods include motorcycle services for efficient distribution, highlighting logistical strategies employed by the company.

Challenges in Inventory Management and Operations

Overview of Current Challenges

• The model currently used by the company is inadequate to meet ongoing challenges, as highlighted by Eric's observations.

• Despite growth in sales and inventory, operational shortcomings persist, raising questions about how to assist the company effectively.

• A significant loss was reported in Guadalajara due to flaws in the management system, indicating a need for improvement.

Competition and Service Levels

• The service level offered by competitors is significantly higher than what the company can provide, impacting customer satisfaction.

• There is a clear expectation from clients for improved service levels that align with market standards.

Opportunities for Improvement

• The company aims to streamline and automate operations, identifying software and procedural enhancements as key areas for development.

• Client satisfaction hinges on improving existing processes through automation and better supply chain management.

Future Engagement Plans

• Plans are underway for another call focused on addressing specific challenges faced by the company.

• A visit to the warehouse is being organized within two weeks to gain further insights into operational issues.

Session Wrap-Up

• A report will be made available post-session along with slides shared via Canvas for further review.

• Reminder about upcoming sessions scheduled for different groups, emphasizing continued engagement on these topics.