T Company Warehousing Logistics VMI Inventory Management Research

In order to improve the competitiveness of products, companies have to reduce the costs of their products. While the inventory management abilities directly affect the cost structure of products, which will affect the buyers' purchase expectations and the market's acceptance. But the traditional inventory management methods have become increasingly unsuitable to the current supply chain environment. Since the beginning of 21 st Century, science and technologies have rapidly developed, technological innovations have been the first place, the products have got fast iterations, the market competition has become fierce, all of these have put the inventory management abilities to a higher level in the hig h-tech industries, such as the automobile manufacturing and computer industry. Some new supply chain management theories such as Zero Inventory Management, Vendor Managed Inventory and Joint Collaborative Supply Chain Inventory Management have been adopted in the real cases.T Company, a leading storage products manufacturer, is focusing on its core business. According to its own market situation and development needs, T Company will adopt Third-party Logistics management VMI model, which means transferring its inventory management to a professional Third-party Logistics partner. This paper will focus on the VMI model performed by T Company to its Su Zhou Plant, which was acquired by T Company in the same industry. And T Company has got good results as expec ted. This paper will also provide some references related to supply chain management theories to other domestic and international electronic manufacturer.