Research On Industry-commerce Integration Of VMI-based Tobacco Logistics

Along with gradual in-depth reform and opening-up, more relaxed market access conditions and continuous promotion of the process of economic globalization, Chinese enterprises are faced with an increasingly fierce competition. Against the backdrop of such political and economic environment, Chinese tobacco enterprises have no other choices but to apply advanced management philosophy and technology to change the conventional backward management mode to seize the opportunity in fierce competition,so as to promote corporate core competitiveness.Therefore, the tobacco industry presents a guideline of “three integrations” and“two transformations”. The industry-commerce integration of tobacco logistics, as one key part of “three integrations” for tobacco logistics, provides the important support for the realization of “two transformations”. Meanwhile, tobacco industrial enterprises and tobacco commercial enterprises enjoy the same source, which can greatly satisfy the successful implementation of Vendor Managed Inventory(VMI) that is a kind of advanced and mature inventory management. Implementation of VMI can vigorously boost the industry-commerce integration process of tobacco logistics.Following research is conducted in this paper based on sufficient investigation and survey of the logistical system of the tobacco industry, comprehension of the status of industry and learning of relevant domestic and foreign researches:The first step is theoretical research. In this paper, on the basis of sufficient investigation and survey of the logistical system of the tobacco industry, elaborate the supply chain of the tobacco industry, define the scope and process of the supply chain,and analyze characteristics of the supply chain; learn relevant theories of logistics integration, elaborate the relationship between “three integrations” in the tobacco industry and development of logistics integration. Summarize and conclude the status and confronting problems in this industry, analyze and apply the VMI strategy to build the feasibility of the industry-commerce integration of tobacco logistics.The 2ndstep is applied research. In this paper, build the industry-commerce integration of tobacco logistics by VMI strategy. Elaborate the principle and thought for building the industry-commerce integration; on the basis of the demands of VMI in building the industry-commerce integration, summarize and conclude the specific contents, and present two VMI implementation modes(“difference addresses anddifferent libraries” and “the same address and library”) in line with specificity of the tobacco industry. Against two different modes, the organization structure and business process are designed in this paper, together with the frame and functions of the VMI information system.The 3rd step is model building. The way to reasonable distribution of the profit between tobacco industrial enterprises and tobacco commercial enterprises after VMI implementation greatly influences VMI implementation and promotion. The reasonable assumption is made in this paper upon the specificity of the tobacco industry, to establish the profit model to the tobacco industrial enterprises and tobacco commercial enterprises before and after VMI implementation. The model proved that implementing VMI is conducive to the both; on the basis of the assumption of equal status of tobacco industrial enterprises and tobacco commercial enterprises, the profit distribution model is established, with the numerical values being calculated through cases.