Analysis Of Material Management System In HDXM Company

It is well known that material cost accounts for more than 50 percent of total cost of a manufacturing enterprise. There is no doubt material management is the core of enterprise management. The material management level of an enterprise not only influences overhead cost but also its reaction speed to customer needs, even relates to its competitiveness. Therefore, to enhance material management is of great importance in improving an enterprise's overall management level and economic benefits. At present, domestic research on material and inventory management is mainly targeting mass production. For mass customization production, the research is much less. With the trend of economy globalization, enterprises are facing more fierce competitions than ever. To get advantage in competition, an enterprise must not only reduce material cost but also fulfill the growing individualized demand from customers. As a result, mass customization production method has become a trend of enterprise development. Taking HDXM Company, a Dutch enterprise adopting mass customization production method as an example, this paper makes a research on this company's material management and hopes it'll provide reference to other similar enterprises.This paper is divided into three parts. The first part is the brief introduction of HDXM Company's background, production management method and operation system. The second part is the analysis of material management system in HDXM Company. It introduces the material management method and business process of the company, collects relative files and data, uses the methods such as classification for inventory material into ABC three groups, Fix-order Quantity Model, Fix-time Period Model, Consignment Stock, Vendor Management Inventory (VMI) to analyze the character of material management in HDXM Company, where mass customization production method is adopted. The third part points out the existing problems of material management system in HDXM Company, analyzes causes of these problems, and brings forward the improvement solutions and suggestions, ranging from organization reconstruction, ERP system application, supply chain management, tostrengthening internal control.Rather than a pure theoretical research, this paper is trying to solve practical problems by using relative theory of material management. It stresses that the material management problems of enterprise in mass customization production method should be analyzed and settled from the point of business process reform and applying ideas of supply chain management. The measurements and suggestions mentioned in this paper provide not only instruction for HDXM Company but also reference value for other similar enterprises.