ABC analysis of Inventory management on Unimart LTD

Abstract

Unimart LTD stands as a beacon of distinction within the burgeoning landscape of retail in Bangladesh, embodying a unique approach to the supermarket. This report delves into a critical aspect of Unimart’s operations: its inventory management practices. Through the lens of ABC analysis, this study explores the efficacy of Unimart’s inventory management strategies and their alignment with the company’s overarching goals. The document commences with a comprehensive introduction to Unimart Ltd, detailing its historical background, mission statement, and vision. Additionally, it provides a concise examination of the significance of inventory management systems within the retail sector as it pertains to the organization. Furthermore, the analysis includes a SWOT assessment of Unimart, focusing on the company’s inventory management practices and its strategies for engaging with suppliers to procure products for the Unimart Outlet The ABC analysis categorizes inventory based on its significance to the organization’s operations and financial impact. By classifying items, A, B, and C according to their respective levels of importance, this method enables Unimart to prioritize resources and attention accordingly. This report analysis the implementation ABC analysis in the inventory management system of Unimart, assessing its efficacy in optimizing inventory levels, minimizing carrying costs, and improving overall operational efficiency. Key findings reveal the nuanced dynamics of Unimart’s inventory composition, with high-value items (Category-A) commanding strategic focus to ensure adequate availability and minimize stockouts. Meanwhile, moderate-value items (Category-B) require balanced management to prevent excess inventory while meeting demand fluctuations. Lower-value items (Category-C) necessitate streamlined handling to avoid undue investment of resources. Furthermore, the report highlights the interplay between ABC analysis and Unimart’s broader business objectives, emphasizing the role of inventory management in fostering customer satisfaction, maximizing profitability, and sustaining competitive advantage. The three-month duration of the project may have limited the extent of data collection and analysis, which the paper identifies as a notable limitation. Furthermore, concerns regarding confidentiality restricted the extensive use of sensitive data. This section provides a comprehensive overview of the internship experience, detailing the tasks, responsibilities, outcomes, and challenges encountered throughout the internship.