The Research On Raw Material Inventory Management Optimization Of BC Company

Along with China access to WTO,company facing fierce global competition.Extensive mode of economic growth can't adapt markets demand.It is become very urgent & important to reduce operation cost,improve effective of resource using.As a leader of worldwide coco and chocolate supplier,BC set up a relatively complete supply chain system,but in order to enhance competitiveness,supply chain system,especially for raw material inventory management system need continuously improvement.Base on theory of S&OP & VMI,the article introduced current situation of raw material management of BC company,raised up and discussed existed issues of BC company on raw material management.According to operation practice,select S&OP and several raw materials implement VMI as solution to improve raw material inventory performance.After 1 year practice,the raw material inventory level achieved the setting target.The research indicated,application of S&OP improved each department relationship,make the cooperation more closely,and reduced “bullwhip effect”.With S&OP flow a circulatory system built up,continuously improve operation practice to meet company target.BC feature VMI reduced supplier & employee's work loading,achieved raw material reduction target,but operation cost didn't increased significantly.Also this research provides a way how a company launches a VMI raw material management when the company is the weakness side in whole supply chain.At the final,Raw material management not only within one plant,but also need involve whole supply chain within BC,how to establish strategic partner relationship with supplier instead of select supplier only base on market price;how to do strategic purchase when market in low season,instead of 100% purchase base on orders still need to study and solve in future.