MD Group HJ Division’s Inventory Management Improve Plan And Implementation Under ERP

Due to exchange rate appreciation, rising labor and material costs, as well as thefinancing costs, combined with the increasingly competitive of white goods industry, it isparticularly important to improve supply chain management efficiency, to accelerateinventory turnover, to reduce the amount of funds used, which has become another source ofprofit. All of this require companies to enhance their level of inventory management.MD Group HJ Division has worked with the ERP system for a long time, the entireenterprise operates on the ERP systems. Inventory scale has been an upward trend in recentyears, much higher than the sales volume increases. Huge inventory scale leads to higherfinance costs and capital chain scission, that we regard as a financial risk to the enterprise. Forthe MD Group HJ Division, it’s desperately needed to find a solution to enhance the level ofinventory management according to their own circumstances. Meanwhile, according to theactual situation of China’s manufacturing, there’re many companies product varieties of smallbatch production, and there’re more and more companies implementing the ERP system, inorder to improve their management capacity, the high inventory problem the MD Group HJDivision faces, is of typical. To solve the inventory management problem for the MD GroupHJ Division, will be a excellent reference to many enterprises.This article take the high inventory of MD Group HJ Division as the object of study, wework out the reasons to the high inventory by questionnaires according to the actual situationof ERP system works; and we take this as a breakthrough to work out a solution contraposedall factors. The study includes the following aspects: The first chapter is an introduction. Thissection describes the research background and significance of the content and methods ofresearch, literature review. The second chapter describes the inventory management status ofMD Group HJ Division, analyses the high financial risk caused by high inventory. Chapter IIIanalyses the reasons of high inventory by using questionnaire. Chapter IV comes up with anoverall improvement program to the inventory management strategy according to the study ofERP and invention management, including: management of the accuracy of sales forecast,improvement and management of the production planning system, the implementation ofVMI, the establishment of the manufacturing process, inventory risk assessment index system,independent accounting of funds management, coding and standardized management. Theimplementation of the program will be operated by an inter-departmental inventory riskcontrol group.Finally, we should establish a system to manage and control the high inventory risk under the ERP environment, with the auxiliary of related control methods and means, therebyto improve the efficiency of inventory turnover, reduce inventory costs and improve thecompetitiveness of enterprises.