A Study Of Inventory Management In DG Chemical Enterprises

With the market competition heating up, dangerous chemical enterprises are confronted with many challenges. The high inventory, low inventory turns, inaccuracy inventory information & high working capital occupation had become important problems in the chemical enterprises. How to solve these problems and succeed in the market competition through optimizing inventory management becomes a key point for DG chemical enterprise.Considering the high market occupation and high profit pursuing conflicting with an excessive inventory in most of the chemical enterprises, based on the analysis of DG chemical inventories and the theories of inventory management, this paper proposes the dynamic factors & the key points of inventory management. This paper also discusses the features of chemical enterprises & chemical inventories, the impact on inventory management from the up dream & down dream market, trying to solve the problem in the chemical enterprise inventory. Taking the inventory management optimization in Valspar (a US coating company) as an example, this paper is trying to explain how to choose a proper inventory management method and how to solve the practical problems to get the whole supply chain improved, bring forward the ideas of Information System on inventory management, VMI,3PL and evaluation method on inventory management. After introducing the successful experience of inventory management in Valspar, this paper gives general comments on inventory management in DG chemical enterprises, indicating that the proper inventory management method could offer a great help on cost control, improving efficiency and increasing high profit.