Case Study: Kimberly Electrical Supplies Limited

Recommendations to Improve Stock Management

It is true that one of the major challenges facing Kimberly Electrical Supplies Limited is poor stock management. There are a lot of inefficiencies in the way the management of this organization handles its stock. However, I would like to give the following recommendations:

i. There should be an establishment of a strong sales and marketing department. This should be equipped with a well trained staff to effectively deal with all its activities. In order to help the organization to deal with this problem, they should conduct an extensive marketing research in order to acquaint them with the prevailing market conditions. Hence, ascertaining the level of consumer demands will make it easier for them to know the right quantity of goods to produce so as not to have a dead stock [footnoteRef:1] [1: J. Pine & J. Gilmore, The Experience Economy, Harvard Business School Press, Boston, 1999.]

ii. I would also like to recommend that a well equipped spacious warehouse for the storage of the stock purchased should be constructed. As indicated in the case study, the current store is quite small and cannot accommodate all the available stock, especially when a high volume is purchased for re-sale. This will help to ultimately eliminate this problem and prevent this organization from havoc.

iii. Finally, I would like to recommend that, in order for this company to perfectly manage its stock, it should employ adequate staff able of handling various sensitive products it deals with efficiently. They should be knowledgeable about how to handle this equipment. [footnoteRef:2] [2: S. Strange & R. Tooze, The International Politics of Surplus Capacity: Competition for Market Shares in the World Recession, Allen & Unwin, London, 2000.]

Recommendations to Improve Work Schedule

Since Kimberly Electrical Supplies Limited is a small enterprise with only 22 employees, designing the most appropriate schedule for all the workers has become a great challenge for it. Hence, in order to solve this problem, I would like to give the following recommendations:

i. The organization should consider recruiting additional staff. This will enable each of these employees to get more time to do the good job. They would not be overworked because their duties would be well planned.

ii. There should be a division of labour and specialization in this organization. Each and every worker should specialize in his/her own area of expertise without unnecessarily being multitasked. As a result, employees who are holding two different positions, such as Tim Seddon, will get time to concentrate on one job. This will make them comfortable and improve the quality of their delivery. [footnoteRef:3] [3: N. Madjar, G. R. Oldham, & M. G. Pratt, ‘There’s no place like home?: The contributions of work and non-work sources of creativity support to employee’s creative performance’, Academy of Management Journal, vol. 45, 2002, pp. 757-767.]

Recommendations to Improve Handling of Deliveries

This case study indicates inefficiencies in handling of delivery of Kimberly Electrical Supplies products to its clientele. However, in order to improve this, I would like to suggest the following:

i. The purchasing section of this organization should be supplied with well trained personnel. These should properly handle the purchasing documents and operate delivery machines such as the fork lift. The way purchasing documents are traced in the delivery tracks indicates a poor organization. Hence, modifications should be made to rectify the situation. This will minimize the persistent delays experienced so far.

ii. There should be a proper management of delivery machines. The fork lift machine used for off loading must be well maintained and repaired in case of any breakdown. This will improve its operations without interfering with the delivery processes. Moreover, it may be important if more of these machines are acquired to help in handling bulk products that are often purchased. In fact, the current folk lift seems to become obsolete. It should also be replaced with a new modern one. [4: B. H. Schmitt, Customer Experience Management, John Wiley & Sons Inc., New Jersey, 2003.]

iii. I would like to recommend that there should be alternative sources of power for the operation of this machine. It is really difficult for the organization to accomplish its objectives if it cannot perfectly handle this department. So, instead of relying on only one energy source, more alternative sources like generators should be availed. Even if it may be an expensive step, it will help to improve the reliability of services and pave the way for expansion.

Recommendations to Improve Capacity Utilization

Since one of the major goals for any business organization is to make profit, the management of Kimberly Electrical Supplies Limited must take the most appropriate steps to ensure that this is achieved. In order to improve its output, it is paramount to take the necessary steps. This will be in line with the following recommendations:

i. More skilful staff should be recruited. Being an engineering firm, it is essential to hire experts each of who should be motivated. They should be given equal opportunities with none of them being overworked.

ii. This organization must embrace the concept of specialization and division of labour. Each of its workers should posses the right qualifications needed for their tasks. There should be no gambling and favouritism in awarding any job. If practices such as employing family members to serve two different positions are stopped and professionalism is adopted, Kimberly Electrical Supplies Limited will go far.

iii. There should be a construction of a modern warehouse. It should be equipped both with competent personnel, who can keep the records of products brought in and taken out of the store. At the same time, it should have properly maintained loading and offloading machines, accessibility, enough space, and favourable conditions for the storage of commodities without any interference. [footnoteRef:5] [5: E. Frazelle, World-class Warehousing and Material Handling, McGraw-Hill, New York, 2001.]

iv. Finally, the firm should market its products to a wider section of the market. This will increase the number of its clients, who will then consider it the best supplier and purchase from it. However, this can be achieved if the necessary steps are taken aimed at improving the quality of its output by fully engaging and occupying its workforce.