Research On VMI Applicability To Manufacturing Enterprise

In the environment of market economy, international competition is becomingincreasingly fierce, and the uncertainty of the market demand increasing greatly, manyinternational companies are seeking an innovative business model to improve laborproductivity, in order to promote the long-term development of enterprises andmaintain strong competitiveness. The rapid expansion of high technology has not onlyexacerbated the fierce competition in the market, also resulted in the product life cycleshortened, the traditional technology and operation mode has been very difficult toadapt to the fierce market competition. Therefore, the developed countries such asAmerican, Japan began to research the future development patterns from the level ofstrategy integration, In this circumstances, the concept of "VMI vendor managedinventory" emerge at the right moment. VMI originated in the American retailindustry, then were successfully practiced by many famous enterprises in Europe andAmerica. In China, although there are many enterprises use VMI and benefit from it,most enterprises are still in wait-and-see stage. So is VMI feasible in themanufacturing industry? This thesis will make a specific discussion and analysis ofthe feasibility of vendor managed inventory. In recent years, it have been found bymore and more enterprises, that enterprise establishes good relations with itscooperative enterprises to form a supply chain alliance, which can make enterprises topay more attention to its core competitiveness to reduce the operation and transactioncost, thus obtaining the competitive advantage in the market completion.In this thesis, it is clearly analyzed and compared between VMI model andtraditional inventory management model through elaborates on the supply chainmanagement and the inventory management. Also taking W company case asevidence, discuss and analyze the problems emerged in the management processbefore implementing VMI, put forward optimization scheme and improvementmeasures to resolve the problems in process of supply chain management throughresearching on basic composition of supply chain, further summaries that productiveenterprise need to find out applicable or inapplicable condition, combining itsoperation characteristic, basic conditions and VMI patterns. Discuss the applicablecondition between “Supplier direct VMI” or “TPL in VMI mode” and, put forward theselection criteria through elaborating the difference between this two models to makeit more suitable for VMI operation mode of the enterprise. Discuss the improvementeffectiveness of supply chain flow before and after implementing VMI, by using qualitative analysis and quantitative analysis, comparative analysis, also go intoin-depth study combining with the problems required to notice in implementation. Itcome to conclusion that whether it is feasible to optimize inventory management,through analyzed and studied the applicability of advantages and limitations of VMImodel.In the new economic era, the supply chain is a kind of integrated operation moderelates to a broader range, not only involving the relationship among all levels ofenterprise competition, also existing in the cooperation between the enterprises of thesupply chain, in order to achieve the ultimate common goal on a”Win-Win”basis.