Research On Vendor Managed Inventory In Construction Enterprises

With the rapid development of the market economy,the competition in the construction industry is becoming more and more fierce.Because of the limited space for cost management in labor and expenses,inventory control has become the main means to improve the efficiency and benefit of the supply chain in construction enterprises.The proportion of engineering materials in the construction cost of construction enterprises exceeds 50%.Under the intense competitive pressure,enterprises often win a place in the market by reducing costs and expanding effects.Therefore,engineering materials are the top priority in engineering accounting and project profitability.As a large-scale construction enterprise,company B will gradually expand in scale with its development,and will also face increasingly fierce market competition.Company B,like other railway construction companies,has common problems in the construction industry such as high output value,low profit,low bid price,over budget,over construction period,and low overall management level.However,the quickening pace of the market has raised people's demand for building efficiency.Changes in management and technology of company B are imperative.Vendor Managed Inventory(VMI)is an inventory operation mode under the supply chain environment.As a concept of inventory management,it has certain advantages and provides an effective method to solve the dilemma of enterprise management.Through the research on the implementation of VMI mode in company B,it is expected to provide some reference and help for company B and similar construction enterprises in implementing vendor managed inventory(VMI).On the basis of supply chain theory and supplier management inventory theory,this paper makes the following research on the inventory management of company B under the supply chain environment:First of all,it analyzes the current situation of inventory management in company B,and points out the necessity of applying VMI.Secondly,the implementation plan of supplier management inventory in company B is designed,which focuses on the implementation objectives,principles,modes and processes.At the same time,it also points out the methods of selecting VMI materials and suppliers,and the methods of adding and withdrawing materials.In order to bring the advantages of the supply chain into full play and speed up the response of the supply chain to market changes,the operation mode of the third party logistics is introduced in the implementation steps.Finally,suggestions are given for the implementation of VMI in company B,and possible problems after implementation are analyzed and prevented.Taking company B as an example,this paper makes a detailed discussion on the practical application of VMI in construction enterprises,on the one hand,it can improve the inventory management status of company B,on the other hand,it enriches the industry application scope of supplier management inventory theory,and provides a case reference for the development of VMI in construction enterprises.