The Research Of Inventory Management Optimization Strategy For Company E

The specialty chemicals industry is generally considered to be one of the small-scale,high-growth and high-margin industries,which can generate elevated levels of predictable earnings and shareholder value.In the early 1990 s,the end markets of the specialty chemicals industry became more mature,such as automotive,home appliances,building materials,electrical and electronic applications,coupled with the growing competitiveness of the industry and the increasing purchasing power of globalization and end users,some special chemicals gradually transfer to commodity chemicals.This paper mainly uses the method of literature research,qualitative analysis and quantitative analysis to analyze the status quo of the supply chain inventory of the company before and after the strategic transformation through the analysis of the specialty chemical company E as the main research object.However,with the slowdown in the growth rate of specialty chemicals and the commercialization of specialty chemicals,Company E is facing some challenges which need to continue to invest cash to maintain product development and customized solutions,on the other hand to ensure that the declined business to maintain a certain profit margins and cash flow,even at some point,divest the non-core business to get cash flow.With impact of Tianjin explosion incident,the objective result in the supply of effective dangerous goods warehouse resources reduced.Therefore E company needs to optimize the inventory to improve cash flow and competitiveness.Mainly for the raw material inventory,finished product inventory and channel inventory of the current mode of operation,data collection analysis,identify the problem and its roots,combined with supply chain inventory management methods,put forward practical and feasible inventory optimization measures,and through case comparison to demonstrate it.This paper focuses on raw materials and packaging materials through VMI and supply chain finance projects that allows suppliers to reduce financial pressure and achieve a win-win situation.ABC classification and risk assessment of the product,dig out the value of the special SKU to the customer,and establish a long-term effective product SKU review process,for the upstream and downstream of the finished product to establish dynamic safety stock.In the channel inventory to focus on the control strategy to reduce the distribution centers and overall inventory.And introduce SAP-APO supply chain network optimization software to optimize the channel inventory for high data quality Distribution center.This paper has carried on the research to the enterprise of the specialty chemical industry in the aspects of supplier inventory management,internal upstream and downstream finish goods stock management and channel inventory control,and put forward the improvement strategy,which has certain application and practical guidance to the industry to optimize the inventory significantly.