Strategy Study On Inventory Reduction Of Shenzhen Jiawen Clothing And Accessories Companys

With the economic globalization, the world economic have been changing sharply and this leads to a heavy competition in the field China lady clothing industry and they are seeing lots of big challenge. Focus on the stock management issue of Shenzhen Jiawen Clothing and Accessory Corporation, my thesis studies the characteristic of its inventories, management methods of raw materials, experiences of its warehouse keepers, current warehouse management systems from the respective of commodity planning, production planning, channel management, fashion traits, experience shortage of logistic management, and try to find the underlying resources of these issues.With the support of my systematic EMBA training, my thesis develops a series strategy and measures on how to effectively reduce its inventory level to a reasonable situation. These strategy and measures are as follows: 1) Reducing inventory will be part of KPI performance measure. This will results from a marketing strategy and plan based on the inaccurate market forecast from the fashion and accessory market, 2) Optimizing current inventory management and control system. This will be reached by considering the blind point of current sale channel, changing current “isolate, separate” information system into a “symmetrical, efficient” one and this will improve the efficiency of fund, 3) implementing ABC category management to reform current disorder situation, and more resource will be directed to few high-value commodities and current situation that big and small items will be attended at the same time will be transformed. 4) Just-in-time production management will be presented to change current loose production and this will reduce the production time of each clothing unit, 5) presenting material demand plan to change current disorder producing material management and this will save material usage and cost, 6) implementing economic order quantity by changing arbitrary procurement in terminal shop and this will largely reduce shop procurement cost.The final part summarizes my strategy study in reducing inventory and try to guide the enterprise to optimizing its production plan, reducing inventory level and raw material, speeding up its fund turnover thus the enterprise will gain its core market competitive level.