Research On Inventory Management Optimization Of Eaton Industries(Wuxi)based On Supply Chain Collaboration

Since 2015,Chinese automobile industry has grown at an average annual rate of 12%.Till August 2020,there were 360 thousand auto parts related enterprises in China,the fierce competition among auto parts suppliers is intensified.The inventory management of company has been transformed from vertical integration to supply chain collaboration mode in order to meet the diversified needs of customers and adapt to the trend of product life cycle short termination.To develop and survive,Auto parts company should not only improve sales performance,but also need to reduce costs from different aspects to increase the profit.Inventory cost is one of the most important costs in company.Reducing inventory,improving inventory turnover and saving inventory carrying costs are also important ways for company to improve profits.This paper selects Eaton industry(Wuxi)Co.,Ltd.as the research object.From the current situation of downstream customer management,upstream supplier management and company procurement mode of Eaton industry(Wuxi)Co.,Ltd.It is found that Eaton industry(Wuxi)Co.,Ltd.has high inventory and low customer on time delivery.Through further research,we find that there are some problems in inventory management of Eaton industry(Wuxi)Co.,Ltd.,such as extensive customer management,unreasonable supplier classification and mismatching of purchasing mode.It optimizes the communication method of customers and implement CPFR for key customers according to theory and method of supply chain collaboration.The analytic hierarchy process(AHP)is applied to optimize the supplier management.Meanwhile the supply-hub management method is introduced to optimize the purchasing mode of Eaton industry(Wuxi)Co.,Ltd.Finally,the implementation guarantees of inventory management optimization of Eaton industry(Wuxi)Co.,Ltd.is given.The results show that Eaton Industrial(Wuxi)Co.,Ltd.can reduce the inventory and improve the on-time delivery rate of customers through the method of supply chain collaboration.Based on the research results of supply chain collaboration,this paper not only puts forward reasonable countermeasures to solve the inventory problem of Eaton industry(Wuxi)Co.,Ltd.,but also provides a good reference for similar domestic company to solve the inventory management problems.