Optimizing inventory management in ABC beverage company: A focus on minimizing expiry in export stock

Abstract

In a competitive environment such as global beverage exports, effective inventory management is essential to remain profitable and minimize waste. This study investigates the ongoing problem of expired carbonated soft drink (CSD) cans in the export stock of ABC beverage company. Although the company’s targeted write-off threshold was 3%, the company has consistently exceeded this benchmark, which has resulted in operational and financial inefficiencies. The research explores the reasons for these high write-off rates and discusses how inventory management could be optimized to reduce such losses. Applying a qualitative approach and a thematic analysis to the data generated from literature and in-depth interviews with key operational, marketing and export staff, the study finds that inaccurate demand forecasting, outdated inventory management systems, inadequate staff training and poor cross-functional integration are contributing factors to the problem. Results reinforce the importance of advanced forecasting methods, real-time stock visibility and the use of lean inventory practices. Suggestions are given as to what the ABC beverage company could do to better control inventories, minimize waste in the environment, and improve export profitability. The study also adds to the practical and academic discussion on sustainable inventory practices in fast-moving consumer goods (FMCG) sectors which can be generalized for most of the companies in the said sector.