The Study On Solutions To The Bottlenecks Of The ALT Company’s Purchasing Business Using The VMI Model

In recent years, the international community is laying much more emphasis on the security issues, as more and more Chinese cities are beginning to introduce the concept of “safe cities”. In this context, the security industry has been under rapid development for the past decade, which gives rise to increasingly fierce competition among various enterprises in this field.This dissertation is based on the supply chain operation of the ALT Company, taking the purchasing management module of the ALT Company as the main entry point and discussing thoroughly the value and significance of the VMI(Vendor Managed Inventory) purchasing business model in enhancing the purchasing ability of the ALT Company.Through the analysis of the present situation, the major bottleneck problems in the ALT Company purchasing management module are proposed. Drawing upon domestic and international literature, this dissertation uses the empirical research methods to compare the VMI model with the traditional purchasing business model. According to the bottlenecks of the ALT Company’s traditional purchasing business model in the process of rapid development, it also explores the advantages of utilizing the VMI theory, builds up the suitable VMI business model and process for the ALT Company, and implements the VMI business model through the use of the project management approach.Through the assessment and analysis based on the actual effect of the implementation of the VMI business, it concludes that the VMI mode brings all the benefits to the ALT company’s purchase and operations, and completes the assessment objectives of the company, in terms of the purchase price, inventory management, purchase lead time, cash flow and the rate to order promising delivery. Therefore, that the ALT Company adopts the VMI purchasing business is successful. The conclusions of this study can offer helpful suggestions insolving the bottleneck problems of the traditional purchasingbusiness with the VMI model and provide guidance for the promotion of the VMI purchasing business model.