Study Of Material Management Optimization Of Company U

As the rapid development of science and technology with the globalization of economic markets, electronics manufacturing companies has evolved into a rapid growth and intense competition in the industry. The raw material costs will be accounted for 70% of total costs in electronics manufacturing, it is an important part of the process of engaging on material inventory throughout the supply chain management which has a vital role for cost control, is also the basic aspects of the production and operation management. Inventory will reduce corporate profit while taking up a lot of money, on the other hand inventory will effectively improve responsiveness to customer needs without the contradiction between supply and demand, and balance the production capacity for corporate earnings. Therefore, professional and efficient inventory management can effectively reduce inventory costs, which lead to enhance the company profitability and market competitiveness, to meet the needs of sustainable development of enterprises.The total profit maximization is the objective of supply chain strategy. The material inventory management affecting the company cost control is one of the flexible indicators of demand for market in the supply chain management in DMS electronics manufacturing, which has a crucial impact on the enterprise product cost management. The thesis take company U material management of the supply chain management as an object of study, describes the current procedure and situation in its inventory management. Also takes some samples which brought some of its product lines into trouble by the operation management out of control, then identify the root cause of the problem and make improvements on materials management which leads enterprise supply chain lower costs, higher productivity and more competitive.Firstly, through the basic theory of material management, describes the material management method in the status of socience development. To cope with the problems existed, the thesis offers suggestion based on the theory and practice of Company U: The first part is to make the adjustment of the company organizational structure. Optimize the forecast demand planning, production management standardization, materials inventory on a regular basis for the classification of material liquidity management; The second part is to set up the reasonable safety stock to meet uncertain demand for customer, regularly check in demand and forecast, to improve the satisfactory of manufacturing services company based on safety stock management; The third part is to establish the inventory management system and build the optimal inventory turnover mechanism etc. Finally compared with the specific management problems and implement solutions, we can study how to reduce the company inventory costs, to improve the overall profitability of supply chain in the fierce competition, to make the cost advantage and enhance core competitiveness of enterprises through strategic cooperation, forecasting demand management, production management, inventory management of operation and supply chain management.