Almusbah Group

The Group has established itself to be a premiere producer, distributor and marketer of mass market cosmetic and fragrance products that retail at significantly lower prices compared to high-priced designer products. The Group sells locally in the Kingdom of Saudi Arabia and internationally to wholesalers, distributors, chain stores and to mass merchandisers. The Group's products are designed for consumers who desire brand name fragrances and cosmetic products but are unwilling or unable to pay the high prices.

Through its perfume entity, the Group handles the entire process of production, marketing and distribution of perfume, cosmetic, hair care, skin care, air fresheners and toiletry products in the Kingdom of Saudi Arabia, other GCC countries, Iran, Pakistan, Western Europe and CIS countries.

The Group has other divisions including wholesale, retail, catering, and real estate. This project intervention will be concerning the wholesale division which raised to me (as an external consultant) the problem of high inventory levels. I will be looking for the causes of this problem and possible solutions.

Before I started this project I met with the CEO of Almusbah Est. Mr. Ahmed Almusbahi and he gave me a brief history of the division and how it operates. We also finalized a contract that obligated both parties (Almusbah Est., myself). This contract specified the following points:

Point of contact: I directly report to the CEO of Almusbah Est. Ahm

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Almusbah Group .... Director Mr. Hassan Ahmed Wholesale Director The financial results presented in this section reflect the wholesale division of Almusbah Group compared with the .... (3082 12 )

Almusbah .... Director Mr. Hassan Ahmed Wholesale Director The financial results presented in this section reflect the wholesale division of Almusbah Group compared with the .... (3084 12 )

is known week coordination could result too many unwanted results. Such as sales people loosing motivation of selling products that they do not believe in. I will also look on how the division does its planning in terms of: How they chose a product? Who makes the decision on what product to get? When do you get a new product? (is there a season when you get a product) What product do you reorder? At what inventory level do you start reordering? What criteria helps on deciding if a product should be reordered or not? What quantity do you order of a new product? How do you come to the decided quantity? What quantity do you order when you are reordering a product? How do you come to the decided quantity? After you get a product to the warehouse, what kind of follow up planning do you do? What would be the ideal relationship between the purchasing and sales division? These two meetings with the general manager of the wholesale division and with the purchasing and sales department would give me the information needed to identify the cause of the problem that the wholesale division has (high level of inventory). Results (expected): After gathering the data, I found that the causes of the problem in the division are

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