Study On Optimization Of Wgpc Company's Supply Chain Inventory Management

With science and technology progressing, demand of consumers changing, market competition becoming more and more intense and economy globalization speeding up, supply chain management has been more and more important for enterprises' maintaining and developing. Inventory management as one part of SCM is also very important for enterprises.Traditional inventory management is that company focus on his internal inventory problem only to seek for continuous cost reduction, which is out of date. Company should consider of the entire supply chain master and exert inventory management strategy to improve his supply chain performance.This paper discuss WGPC high inventory problem and take actions to decline inventory based on whole supply chain scope. It's worthy of being learned to similar company with high inventory. In this paper, after fully analyzing current inventory of WGPC, we found the root causes of high inventory which are idle Syteline ERP system, deviation forecast and vague responsibility of different Departments in supply chain. This paper analyses the inventory purchasing management is playing significant role in SCM through the theories of SCM; compares with inventory status before and after workflow's improvement and optimization; presents the improvement and optimization measures in detail; Finally, the paper states the achievement and expectation for petroleum equipments'future. The achievement details are listed as below.1. Exertion of Syteline ERP system. Simplifies the operation; improves demand forecast's accuracy.2. Refine and op workflow of the departments in SCM. Integrates entire supply chain resource, achieves the optimized Value Chain and makes core competence stronger.3. Improve the suppliers'performance though SPID project to reduce inventory cost.4. JIT is an effective method from purchasing for inventory to purchasing for order. It is benefit to order reaction and pull-model's order under SCM.5. VMI continuous replenishment technologies minimize high-value inventory. In conclusion, improvement and optimization on inventory management makes SCM stronger and more effective.