Inventory Management Using ABC Analysis for Construction Materials Distribution Company

Abstract

This article aims to study 1) the inventory management processes of a construction materials company and 2) analyze the inventory management system of a construction materials company through the application of ABC Analysis. The research adopts a qualitative methodology, collecting data from a sample group of 10 individuals consisting of business operators and employees from the construction materials company. The sample was selected through purposive sampling, including 2 executives, 1 accounting staff member, and 7 warehouse personnel. The research instrument was an in-depth structured interview, and the data was analyzed by applying ABC Analysis to classify and prioritize inventory items. The findings reveal the following: 1) The in-depth interview analysis revealed that the inventory management process of the construction materials company was found to be inefficient due to three key factors: operations, construction material storage, and personnel. 2) The inventory management system, analyzed using ABC Analysis, categorized 40 construction material items worth a total of 174,177.70 baht as follows: Group A: 8 items, with sales to customers valued at 137,635 baht, accounting for 79.02% of the total. Group B: 12 items, with sales valued at 27,132.50 baht, accounting for 15.58% of the total. Group C: 20 items, with sales valued at 9,410.20 baht, accounting for 5.40% of the total. The control and management of construction materials were prioritized according to the importance of each group. This research provides insights that can guide warehouse managers in the principles of inventory management and applying ABC Analysis to enhance inventory management efficiency and reduce warehouse management costs.