Research On Inventory Cost Control Of CR Vanguard Supermarket Chain

In recent years,the economic globalization has been experiencing rapid development.Against the background of ever improving e-commerce environment and fast growing consumer demands,the chain supermarket,as a traditional and direct consumer-oriented point-of-sale terminal,is faced with great challenges.With its own distinguishing feature,the e-commerce enterprises have shown incomparable advantages over its traditional counterparts regarding inventory cost control.Thus,the foreign retail giants still remain as the main competitors of the large traditional local chain stores which have enjoyed recent expansion through their practical business approach and understanding of the market.However,there are still many problems in the aspect of inventory cost control.Detailed research on China Resources Vanguard(CRV)supermarket,one of China’s local large supermarket chains,has representativ e significance on the inventory cost control.It also serves as valid references for the maintenance of the core competitiveness of enterprises by reducing the inventory management costs and gaining the advantage of setting commodity prices.This article focuses on the study of the control of inventory cost in supermarket chains.Based on sufficient literature review and relevant theories,it presents problems of inventory cost control of CRV by analyzing its current status.An optimum proposal will be provided on the basis of the current situation of CRV.By referencing to the previous study and the research methods of inventory cost control from scholars at home and abroad,this article provides theoretical basis for the analysis of CRV’s inventory cost control from the practical point of view.By using the method of comparative analysis in the comparison of Walmart and Carrefour,two large foreign supermarket chains,this article concludes that the low price strategy in the foreign retail industry is buil t on solid strategic partnership,good process management,effective information system and standard operation process.Then through using the deductive method in the analysis of inventory cost control in operation and inventory cost control status of CRV,it discovers problems in four aspects—the total inventory cost,ordering cost and inventory cost —which result in low inventory turnover rate,high inventory holding cost and purchase cost.Consequently,commodity pricing is affected which weakens the core competitiveness of enterprises.Being aware of the above problems,this paper proposes an optimum scheme on inventory cost control.It not only has practical significance on inventory cost control for CRV,but also provide valued reference to the inventor y cost management of the retail industry in China.