Enhancing Book Time's Operational Efficiency Through Inventory, Procurement and Forecasting Improvements

Abstract

The final year project, "Enhancing BookTime's Operational Efficiency Through Inventory, Procurement, and Forecasting Improvements," focuses on addressing critical inefficiencies faced by BookTime, a retail bookshop with two branches in Rawalpindi. The company serves students, parents, and educational institutions by offering curriculum texts, stationery, uniforms, and other necessities for the classroom. In order to maximize operations and customer happiness, the project's main goals are to improve inventory management, streamline procurement procedures, and apply sophisticated demand forecasting methodologies. BookTime's present reliance on antiquated technology, including the Abuzar POS software, makes it difficult to manage the supply chain effectively and see inventory in real time. Frequent stockouts, especially during peak seasons, and overstocking during off-peak periods are caused by the absence of automation and reliance on past data for demand forecasts. These problems are made worse by supplier delays, particularly for notebooks purchased from Lahore and Rawalpindi. Additionally, poor communication between suppliers, the warehouse, and retail locations results in more bottlenecks, which reduces consumer satisfaction and results in lost sales opportunities. The proposal suggests implementing an ERP (Enterprise Resource Planning) system to address these issues by combining customer, procurement, and inventory data on a single platform. Real-time tracking, automated reorder points, and enhanced supplier communication will all be made possible by the ERP (Tarigan, et al., 2021). Demand accuracy will also be improved by sophisticated forecasting techniques like AI-based models and time series analysis programs like Microsoft Azure Time Series Insights. While supplier relationship management (SRM) systems will guarantee dependable procurement, safety stock and buffer inventory techniques will reduce the risks of stockouts. It is anticipated that the suggested solutions will result in notable increases in profitability and operational efficiency. Inventory levels will be optimized, supplier cooperation will be enhanced, and human errors will be decreased with the use of ERP systems and digital procurement tools. According to financial forecasts, there will be a significant return on investment (ROI), with net benefits from cost reductions and higher sales reaching PKR 3,100,000 in the first year. Long-term advantages include a scalable framework for future growth, lower holding costs, and increased customer satisfaction.