The Research On Inventory Management Improvement Of BHE Company Under Supply Chain Management

Inventory management plays a crucial role in corporation operation. It can improve customer service level, which enables downstream users to be able to meet the needs of production and sales timely and effectively while the stock reaches clients'request, it will meet high customer service requirements as well. Inventory management could also indirectly reduce operation costs, which mainly reflects in stock that it can achieve a greater volume of production, less batch as well as operating a higher level, resulting in a certain economic benefits. Nevertheless, inventory management is a double-edged sword, its costs account for a large part of logistics costs, including the shortage and loss, E&O, inventories of capital occupied by rising financial costs resulting from, last but not least, under upgrading technology and products accelerating environment, excess inventory also leads to stocks depreciation, business risk increased.With the putting forward of the thought of supply chain management, the traditional inventory management theory faces the challenge, however it also points out a new direction of inventory management. Under this circumstance, the enterprise should look into and find out the sound method of inventory management in the interest of its actual status to reduce the cost on unnecessary excess and obsolete material. Through the inventory optimization in the whole supply chain to improve the operational efficiency and decrease the total cost of the operation of supply chain, it can be greatly enhancing the whole competence of the enterprise.This paper mainly states the importance of the supply chain management and the related economic theory, inventory management theory and the importance of inventory management, also introduces the advanced method of the inventory management in the world. Taking BHE company, one of the top 10 EMS companies in the world, as an example to analyze the factors of affecting inventory management under the current status, it brings up a series of steps that should be made to improve supply chain management, including the management of the customer's forecast and demand, adjustment of ERP system, Introduction of VMI, and customer consignment inventory, etc to mitigate the inventory and strengthen its whole competence.This paper attempts to find out a practical application mode of inventory management for high-tech manufacturing enterprises through the analysis and improvement of inventory management under the supply chain management's circumstance by taking BHE company as an example, so that it can minimize the operational cost and enhance the core competency of the enterprise.