Dear all,
This is a good potential saving where we can release the warehouse space as well as getting some revenue from the unused-equipment. So, we’ll need to work together to find the possible solution on how we can execute this properly. I remember that we use to talk about this last year, but due to many concerning issues at that time, we’re not able to push it through. Let’s try again harder this year.
Based on my understanding, the pending issues are as follows;
1) We need to have a list of the inventory we’d like to dispose so that we can delete it from our book – K.Thanayut, is it possible to get the list ka? May be we can start with the list you have from last year and add new equipment in later. We are working on the list. Expect to finish by next week. After that, we will go discuss with TG, the owner on those inventory. However, there are 4-5 TG parties who own inventory in warehouse. Based on previous year, TG took around 2 weeks to consider those inventory whether to keep or to use or to transfer to spare part.
2) We need confirmation from legal if we can dispose this asset/inventory - Dr.Raweepun, could you please give the opinion on this ka? It was mentioned that this disposal may trigger the issue of BTO asset. However, as this asset is not used and not even installed in any site, it shouldn’t belongs to CAT, isn’t it ka?
3) K.Watcharin ka, as this is new inventory which we have never installed in the sites, why it is capitalized as asset, not inventory ka? – should we review this principle and find way to make it a bit more flexible to take it out for the future ?
4) I think we may need to include TG team here so that we know if those kind of unused equipment could be ordered less in the future. Ideally, we should probably be able to improve the inventory efficiency by ensure the optimum order. Is there anything we can improve in practice? – K.Thanayut, could you please involve the TG’s team in this discussion ka? We normally discuss with TG since no1. Krub. The information of unused inventory will be distributed to each TG party for their consideration and also for their future order.
5) Last, K.Thanayut, could you please help estimate the value of saving, inventory reduction and revenue we expected to get from this initiative ka? This could be inspiring part for the working team. Is it 70 mil for inventory value? Based on information of previous year. There are around 200 items which B/V around 60 millions THB. We coordinate with procurement to get 2-3 venders to appraise the selling price. The highest bid made around 4 million THB . The space of those inventory is 600 sqm which is around 65,000 THB rental a month.
6) Another opportunity is to get rid of the obsolete(salvage) stock that we agreed to return it to CAT which continue from last year but still remains a lot of items in the warehouse valued to 300 mil. – K.Chanaisuda, could you please kindly update the progress on this ka? do we have any time line when it will all move out from our warehouse so that we can clear the space.
To align everyone on the same page and finding the solution together, next step, I’ll arrange the meeting to discuss these pending issues na ka.
Please allow warehouse to work on
1. List of inventory and space
2. Get feedback from TG whether to keep / not keep or transfer to other party such as pare part
3. Work with accounting to get the BV of inventory
I will try to finish by 2-3 weeks then I think we can have enough information to discuss in meeting
Let me know your comment krub