First Colloquium – Specialty in Supply Chain Management

For

M A D E I N I T A L Y

C R A F T E D I N C A L I F O R N I A

Presented by
J A B I N - T E O - P R A B I R
 Objective

Reduce Excess Inventory and Free up Working

Capital while minimizing the Stock Outs and
Streamline the Supply chain with an Open
Source ERP
 MISSION VISION

Improve the Welfare of Hair Through products inspired by

Beauty
nature, beautify our clients' hair,
offering the best quality at the best
possible price and become the most
recognized professional line beauty
brand in Mexico for 2024.

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 CALIFORNIA GLAM
products, are derived from
PRODUCTS the most effective natural
ingredients, in addition to
PARABENS FREE being specially studied to
SULFATE FREE
COLORANT FREE care for all hair types
SALT FREE

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 CREMA COLORANTE
E N R I Q U E C I D A C O N

ACEITE DE COCO ORGÁNICO

& FORMULACIÓN GLOSS X

Composed of 97 splendid reflections nuanced

through a unique formulation called Gloss X that
guarantees a deep penetration of the color
molecules for a uniform application from the
root to the tip, its component of Organic
Coconut Oil is rich in Lauric Acid which Brightens 100 ml

and prevents the wear of the capillary structure. PARABENS FREE

SLS FREE

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GAMA CALIFORNIA GLAM 97 TONOS

http://californiaglam.com.mx/gama-completa/
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P R O B L E M S TAT E M E N T
To reduce excess inventory and free up working capital
while minimizing the stock outs and increase revenue
and also streamline the flow of supply chain by
integrating with an open source ERP

Intervention Opportunities and Flaws in the current value chain :

• Excess Inventory
• Optimal Reorder Point
• Free up Working Capital
• Minimize Stock Outs
• Economic Order Quantity
• Enable Cost Savings

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PRODUCTION DATA:

• COMPLETE RANGE: 97 TONS

• 1,000 UNITS = MINIMUM PRODUCTION PER TONE
• NON REGULAR SALES
• EACH TONE VARIES ACCORDING TO DEMAND

• LEAD TIME: 8 - 11 WEEKS

• PRE-ORDER REQUEST: 3 WEEKS (INTERNAL
PROCEDURE)
• PRODUCTION TIME: 4 WEEKS
• SHIPMENT TIME: 4 WEEKS (ITALY -MX)

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SHIPMENT INFORMATION:

20” CONTAINER
• 11 PALLETS PER CONTAINER
• 106 BOXES PER PALLET
• 36 UNITS PER BOX
• Each Tone Request (1,000 units) = 28 BOXES
• SHIPMENT TIME: 4 WEEKS (ITALY –MX)
COSTING
• $0.78 Euro Cents per Unit
• 18% Total Cost = Shipping Pricing
• +16% Mexican Taxes
= $25 MXN (final cost per unit at warehouse)

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RE-ORDER POINT:

HISTORICAL DATA:
• NEW BRAND – OPERATIONS STARTED 4 MONTHS AGO
• INITIAL INVENTORY BOUGHT TO A USA COMMERCIAL
PARTNER FOR INITIAL OPERATIONS

• 2 PRODUCTION RE-ORDERS ALREADY DONE

• 2 MONTHS AGO (14 TONES)
• NEW ONE ARRIVING NEXT SATURDAY (38 TONES)

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10
Intervention Data – California Glam
SALES LAST 4 MONTHS PER TONE
ACTUAL INVENTORY
INVESTMENT EXCEL FOR SHIPPINGS

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11
 Economic Order Quantity Optimize

120000

100000

80000

Ordering Cost
60000
Holding Cost
Total Cost

40000

20000

0
0 50 100 150 200 250 300

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Conclusion – Inventory Improvement Strategies for California Glam

-Minimize Stock outs

Improve Fill Rate
- Optimal Reorder Points - Integrate data in the supply chain
- Lot Size and Economic Order - Dashboards
Qty - Auto replenishment and Ordering
- Dashboards and Reports

- Reduce Excess
Stock Outs
Inventory Data - Inventory Saved
Reorder - Improve Cash Flow
Integration
Point

Inventory Revenue
Mgt.
Simplify with ODoo