"U" Electronic Manufactruing Service Enterprise Inventory Management Optimization

The competition in21st century is no longer the competition among enterprises butsupply chain. Inventory management is critical to the success of supply chain managementand plays important role in Enterprise’s operation as well. Especially for the EMS (Elec-tronic Manufacturing Service) supplier with its own characteristics of electronic product:Short life cycle, long purchasing lead time and Price fluctuate frequently etc. Provided thecontinuous development of global economic integration and increasingly fierce marketcompetition, and the labor cost increase, the EMS industry’s margin will be slim gradually,so the cost challenge will be more severe than before. Therefore, Inventory control mecha-nism based on SCM (Supply Chain Management) proves to be advantageous in inventorycost mitigation and service improvement, and evolve into new orientation in the research ofthe institute&the implementation of the industry.Based on in-depth analysis of inventory control mechanism, Combining the inventorymanagement status of “U” EMS enterprise and the theory of SCM, This essay analyze theroot cause of inventory problem from material planning process. Start from the customer’sforecast accuracy rate to predict the long term demand forecast by Rolling time framemodel, Include the End Of Life project demand management, And conclude detailedschedule during the weekly production&delivery review meeting, With ABC materialcategory inventory management methodology and using material two-dimensional classi-fication methodology we classify material into different type based on value and supplyrisk, in order to apply various inventory management strategies from the perspective ofSupply Chain Management.“U” company has implemented it base on SAP (SystemApplication Product) ERP（Enterprise Resource Planning) system operation todecrease inventory management cost, improve the efficiency of purchasing operation, meetcustomer delivery request and improve the competitiveness of enterprise. The methodologyand mechanism described in this essay could be used as reference to other EMS enterprises as well.