A Multifaceted Analysis of Supply Chain Risk: Modelling Volatility and Inventory Complexity in GR Brothers

Abstract

Supply Chain effectiveness and competitiveness are primarily determined by Inventory and Warehouse management, especially in the lubricant distribution segment; where volatility exists in demand, and numerous products exist within the same category. This project will address the operational and inventory management challenges that G.R. Brothers, one of the largest lubricant distributors in Pakistan with national coverage, has encountered. Although G.R. Brothers has a large market share and reputable international associations; they continue to use traditional manual inventory tracking methods, make decisions based on historical experiences and limit their digital integration of inventory controls. These approaches cause problems like excessive inventory, loss of product due to theft, lack of accuracy in forecasting demand for products and excess unused warehouse space. The research gap identified in this study is that there are no data driven systems or standardized operational frameworks used in their supply chain operations; therefore they cannot be responsive to customer needs or meet customer expectations. Secondary data collection, Interviews with Staff, and On-Site Observations using a Qualitative Research Methodology were used to identify key inefficiencies in Stock Management, Demand Planning and Warehouse Layout. Based upon the results from these studies, the project presents solutions to improve inventory management at G.R. Brothers such as the implementation of a WMS (Warehouse Management System, use of Data Analytics for Demand Forecasting, Optimization of Warehouse Space and Training of Workforce. Solutions recommended by the project intend to increase Supply Chain Visibility, reduce Operational Losses, and Improve Customer Service Performance.