Mafikeng Auto Spares Depot is a North West-based distribution centre supplying independent workshops. It uses system-driven replenishment where orders are triggered automatically when inventory reaches preset reorder points. Recently, backorders have increased on fast-moving brake pads and wheel bearing kits, and the depot is paying for urgent expediting fees to get these items delivered by suppliers faster than normal so customer orders can be filled. When managers investigated, they found a repeated pattern: pickers sometimes cannot find brake pads that the system says are available, and later the same items are found in the warehouse (for example placed in the wrong bin or returned to the shelf without being captured in the system). In other cases, staff find wheel bearing kits physically on the shelf but the system shows zero. Management wants to keep reorder-point replenishment, but wants to stabilise replenishment triggers without simply increasing inventory. What should Mafikeng implement first to restore reliable replenishment triggering and reduce emergency expediting?

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Answer

Introduce routine record-to-floor verification for selected SKUs to reconcile system balances with physical stock and correct discrepancies, while keeping the reorder-point logic in place

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Recalculate reorder points and reorder quantities using recent demand and supplier lead-time trends, and lock the parameters for three months to prevent frequent changes

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Shift fast-moving items to vendor-managed replenishment so suppliers monitor usage and refill stock directly based on agreed schedules

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Increase safety stock buffers on affected items and fast-track receiving so late deliveries are processed immediately when they arrive

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Mafikeng Auto Spares Depot is a North West-based distribution centre supplying i...

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