The Research Of Raw Material Inventory Management For Company CTT

With the increasingly fierce global competition,advances of various technologies and rapid changes of market demand,the external environment of enterprises has undergone earth-shaking changes all the time.The market not only has high requirements for product quality,but also for the company's quicker response,lower price,and more personalized customization.Managers have gradually realized that the enterprise must focus on greater flexibility,lower production cost,and more excellent quality to win customers and high customer satisfaction in the fierce market competition.It strictly requires the company's entire supply chain,from customers to internal to suppliers,possess greater flexibility.It's no doubt that the competition of supply chain is one of the key points of competition among enterprises.Meanwhile,as an important link in supply chain management,inventory management is increasingly valued by enterprises.As a result of business operations and important indicators,more or less,inventory can reflect various problems in business operations.For many companies,in addition to labor costs,the company's operating funds are mainly spent on fixed assets investment and inventory.The high inventory which will occupy a large amount of funds of the enterprise,directly affects the turnover efficiency of the company's cash flow,and may even reduce the market competitiveness,finally threaten the survival and development of the enterprises.Therefore,effective inventory management is very essential for the enterprises.It's expected to ensure the timely supply and accurate matching of materials.It will also reduce inventory backlog,accelerate capital turnover,and bring a lot of benefits to enterprises.Based on the actual situation,this paper takes CTT's raw material inventory as the research object.Through the analysis of CTT's inventory status,it shows the problems of CTT's inventory management are high inventory level and low inventory turnover rate.In response to these exposed problems,the causes are analyzed and identified,such as low on-time delivery rate of suppliers,lack of scientific and reasonable inventory management strategies and control methods,and long lead time.In order to solve these problems,the paper proposes the inventory management strategies from both internal and external supplier side.From internal side,firstly use the ABC-XYZ matrix classification method to classify raw materials in CTT.Meanwhile,the safety stock calculation formula is used to optimize the safety stock settings,comprehensively consider the impact of lead time and demand fluctuations.Moreover,deal with obsolete materials based on corresponding background.From external supplier side,in view of the low on-time delivery rate of suppliers and long lead time,VMI control strategy is proposed,focusing on the main work of VMI import,preparation and implementation,and the VMI protocol.The aim of this paper is to better analyze and study problems happened during inventory management of CTT company and propose corresponding management and improvement strategies to reduce the total inventory amount and increase the inventory turnover rate.It has reference and guiding significance for related manufacturing enterprises.