H Company Inventory Management Optimization

Inventory management is refers to the number of management in the process of commodity circulation, mainly in the enterprise under the premise of normal business activities, keep the goods inventory at a reasonable level, timely understand the dynamic inventory, quick enough supplies, avoid obsolescence, beyond reasonable inventory or shortage, reduce inventory taking up space, reduce the inventory cost, control inventory taking up money, thereby increasing the turnover of funds. Inventory management in modern enterprise management plays a determining role, it is necessary to study and implement effective inventory management, especially the sales company who has lots number of product categories and customers. The construction industry company is one of the typical one that rely on the project to contribute the profit. If the inventory is too low, it will influence the level of customer service and customer satisfaction, even lose customers, lose sales opportunities; If the inventory is too high, the company resources are being used in great quantities, it will cause less cash flow, even directly affect the normal operation of the company. Therefore, as a construction industry sales company, especially need an effective inventory management system to ensure the company normal operation and continuous value creation, which will make the company stand out in the market.This article takes H company as the research object and deeply research in the inventory of H company. The inventory can be divided into three categories:the cycle stock, safety stock and over stock. By analyzing their root causes, it can help H company conclude the optimizing measures. Through demand forecast management and ERP integration, the cycle stock can be optimized. Secondly, localization production strategy can help H company shorten the supply lead time, and supplier management can help to stabilize the supply, eventually reduce safety stock. Thirdly, the non-standard products management and SKU management can reduce the over stock. Finally, from the view of the team management, the lean management and combining the KPI and the performance to manage the team. At the same time, H company could reconsider the structure of organization chart.