Research On VMI Strategy And Its Implementation Of K Company For The Electronic Auto Products

Since 20th century,with the rapid development of economy and advancement of science and technology,enterprises are taking all kind of measures to improve the responding speed to market demands to enhance their competitiveness.In 21st century,the competitions used to happen between enterprises have been evolved to the competition in supply chain.For a long time,inventory management of supply chain has been a significant part of operation management.Supply chain management as a new mode of enterprises management has became the new methodology of improving compatibility via development in years.Many companies have built up a scientific and effective supply chain management mechanism which is suitable for its own features.With the further development of China economy's open up,automobile consumption surges.China has become the largest manufacturing and consuming market in the world.Comparing to other industry,the auto industry has been paind more attentions to internal inventory management.Inventory management has become "the third profit spring" of auto maker.Company K is a manufacturer of durable electronic products in auto electronics and industrial control.It can obtain competitive advantages only through continuous process optimization and adoption of VMI management to cut the cost.This article first explained the concept,characteristics of VMI.Then it compares VMI with other inventory management mode.A comprehensive analysis to current situation of inventory management in auto making and auto electronic parts industry is given.Moreover,the article also specified VMI process that is specially designed for company K by the combined consideration of VMI management,cost management and management information system.In the process of VMI implementation,company K has found the main influential section and the measures to take in VMI via the analysis.The article also proposed the improvement suggestions for company K and similar companies' inventory management in the future.