Optimize Inventory Management Of XINBAO Company In Supply Chain

Fast-changing market demand, competition, the increasing level of intensity. In the supply chain environment, effective inventory management will improve the supply chain nodes enterprise competitiveness in the market and reduce inventory waste of each node enterprise, and reduce business cost has an important role. With the development of information technology, competition among enterprises would become increasingly fierce. Today's enterprises need to face a more complex environment, need to be at a lower cost, higher quality to meet customer needs.XINBAO is a typical OEM/ODM manufacturer of small household appliances, because as a new company, so inventory management, it continued use of some old, outdated inventory management strategies that inventory management does not reflect the overall thinking of the supply chain.The inventory backlog and waste of resources was very serious. It has affected the normal operation of enterprises. In this article, based on analysis of the inventory management for XINBAO, from the perspective of process and inventory control, identify the problems in inventory management of XINBAO, and propose appropriate optimization measures for improvement. The new improved inventory management was has a positive and practical significance for XINBAO, but also of the same type of enterprise inventory management also has some value.In this article, the author analyzed the bullwhip effect in supply chain in first, and expounded the bullwhip effect will effect each node company which can not accurately predict the product demand of customer in the supply chain. Therefore, causing the inventory waste of each node company in the supply chain and increase business cost. And make a concrete analyzed for Vendor-Managed Inventory (VMI), and Joint Inventory Management (JMI), and Collaboration Planning, Forecasting and Replenishment (CPFR) and other supply chain inventory management models in detail, compared and analyzed disadvantages and applicability of various inventory management models. At the same time, this article based on the self-characteristic of XINBAO, analyzed and studied inventory management strategy of it and pointed out improvements measure to optimize the inventory management of XINBAO.In the thesis, the author's main tasks and achievements are as below:1. Conducted systemic study on the enterprise storage management from the point of viewing the supply chain. Firstly, elaborated the basic principle of the inventory and the management of supply chain, analyzed the theory of supply chain and the inventory management under the supply chain as well as the generation of the uncertain factors in supply chain and the inflection to the storage of supply chain.2. Gave detailed analysis on the current storage management status in XINBAO on the basis of theory and analysis. Firstly, analyzed the environment of supply chain that involved in XINBAO, including the feature of customers and suppliers. Then analyzed the feature of the products and the storage management in XINBAO, pointed out the reasons for the storage management problems in XINBAO (such as the great demand, high frequency, big cost, much turn-over days, etc.) as below:(1) absence of the scientific storage management idea; (2) Absence of management to suppliers; (3) absence of scientific order forecasting system; (4) low rate of matched materials in the line.3. On the basis of analysis the problem, the theme presented the detailed corrective plans for the storage management In XINBAO:(1) According to the characteristics of XINBAO's own, to establish supplier stock management pattern that taking XINBAO as core enterprise; (2) to build up the mechanism of supplier management, including founding logistic center that responsible for the logistic management full-timely, setting up cooperation mechanism, incentive mechanism and appraisal system of inventory performance as well to promote the smooth progress of supply chain inventory management. (3) Secondly, to optimize the workflows of order process and purchase orders and other related operational processes, such as establish order forecasting system, increase formulation procurement demand for project during the process of purchasing, etc. All these give a systemic guarantees to the performance of inventory management for supply chain. (4) At last, make improvements to the company daily stock management measures, Strengthen various departments to coordinate the cooperation and raise the working efficiency, Optimize enterprise interior flow, strengthen inventory management, Consummate the sort management of ABC stock, carry out the cyclical inventorying system as well as the purchase mechanism at the right moment.