New Strategies For Raw Material Management Of FSK Company

With the fierce competition in the market, inventory management is regarded as one ofthe most important management indicatoers in the Supply Chain Management. How to applymodern inventory management concepts, solve manufacturing its own problem of high cost ofraw materials inventory, improve market competitiveness of enterprises within the industry tobe placed in front of a business problem. The research part of the supply chain inventorymanagement, by analyzing the FSK company as a typical representative of the foundryindustry are facing raw material inventory management issues on how to improve theseproblems, and finally to improve the overall competitiveness of the FSK company purpose.This paper outlined four aspects of inventory management status of FSK company. Firstly,it describes the raw material inventory management status of FSK company, respectively,from the distribution of suppliers, the raw materials category, inventory managementprinciples, the hardware resources input of each BU’s warehouse management.Then the transition from raw materials to the FSK management status of raw materials.Especially to the specific problems, including multi-vendor inventory stocking becomessluggish, suppliers fewer emergency preparation materials, suppliers own high transport costsand high warehouse management pressure due to the overlap delivery of same supplier.Secondly, how to solve these problems, analyze the root causes and make improvementstrategies, respectively, to increase the wishes of suppliers to take the JIT or VMI businessmodel to deliver the material from their factory to FSK company, and then to set up the secureinventory levels by Min/Max control to achieve a stable replenishment mechanism, to provideeffective logistics solutions to reduce suppliers’ transportation costs, and trying to provideone-stop warehousing service to FSK BU..Finally, through the case study to show the expected results after implementing the aboveimprovement strategies.