Research On Material Control Strategy For V Bu Of S Company

In manufacturing industry, material control strategy plays an important role in two ways, on one hand, it affects the enterprise’s inventory management level, thus influences enterprise’s manufacturing costs and profits, on the other hand, it affects the flow of the production line, thus affects the customer satisfaction. In recent years, with V BU’s sales increased year by year, its supply chain related performance evaluation indicators also increased year by year. So it is quite necessary to research on the optimization of current material control strategy, thereby help V BU not only to reach its key performance targets, but also to keep inventory level reasonable and minimize the disruption risk.This paper sets V BU of S company as the research object, its purpose is to help V BU to improve the scientificity of its inventory management strategy, speed up its inventory turnover ratio, ensure its supply continuity and increase its supply chain flexibility. In this context, this paper analyzes V BU’s current material control status and studies problems exist in its material control strategy. This paper describes these problems from two aspects:inventory management and supply disruption risk control. Problems exist ininventory management include ABC inventory management method hasn’t been effectively implemented, raw material procurement mode needs to be optimized, safety stock setting isn’t scientific, no management mechanism for slow moving material and supply chain coordination mechanism need to be improved. Supply disruption problems are introduced in two categories,disruptions caused by exogenous factors and endogenous factors. Then this paper puts forward a series of measures. In terms of inventory management,solutions include improved ABC classification management method and the corresponding scientific purchasing strategy, the scientific safety stock setting,slow-moving inventory management method optimization, the improvement of the internal coordination mechanism; In terms of material supply disruption risk prevention, the management could be improved from two aspects: how to fix the supply disruption and how to prevent the supply disruption. The measures include set up mechanism of emergency management, improve mechanism of supplier performance evaluation and improvement tracking, strengthen and standardize strategic partnership with suppliers, improve supplier development mechanism, improve the supply chain contract constraint with downstream supply chain partners and strengthen communication and cooperation within the organization. Finally,the paper summarizes the problems existing in V BU and its coping methods,as well as puts forward research prospect for V BU.