Research On Inventory Management Of B Company Based On Value Chain Theory

The competition situation of the domestic fast moving consumer goods market is increasingly fierce in the period of overproduction.It has become a significant issue for the survival and development of the regional enterprises specialized in production and marketing of disposable sanitary products to pursue a larger market share and a more favorable competition status in a agile and initiative way with the existing of numerous international and domestic brands,individual territories and rapid change of consumer demand.Due to the limitations of their own resources and capabilities,regional enterprises lack the brand influence and cost advantages of raw material compared to transnational corporations and domestic first-line enterprises.Therefore the cost reduction and efficiency increase which derive from inventory management become a vital breakthrough for enterprises to generate new value.The thesis take the inventory management problem of B Company,a leading enterprise of disposable sanitary products in southwest China,as a case study to analyze the main operation activities of B Company based on the theory of value chain.Combined with the status quo of the industry and the development of the rivals,it concludes the causes of inventory management problems and the differences between leading enterprises in China.The thesis puts forward the problems of B company's logistics management process without unified planning,information system in urgent need of upgrading and high inventory of raw materials and finished products.Finally,according to the analysis results and related theories and tools of value chain management,it comes up with suggestions for B company to adopt inventory management improvement strategies.Cost saving,resource complementarity and collaborative innovation are the main ways to generate new value.By establishing a cross-department unified logistics management center for strategic deployment,rules and regulations,comprehensively upgrading the information system and making full use of data and information for demand prediction and other decision support activities,using lean management principles and automation equipment for inventory management of raw materials and finished goods to reduce waste,in accordance with the modular service of a third party service providers to reshape the value chain and improve customer demand response speed to reduce the bullwhip effect and improve warehouse stock turnover and utilization.By using such a set of scientific and effective theory and method,rational allocation of internal and external resources of regional disposable sanitary products enterprises,rapid improvement of enterprise operation management ability flexible response to internal and external environmental changes,and gradually improve the market share and industry competitive position of their own brands.It is of some reference value for the development and transformation and upgrading of other domestic vertical integration enterprises in fast moving consumer goods field.The first part is the related literature review on the value chain theory,inventory management and lean production,then it introduces the B company's history,development and competition status in the industry.In the following part it carry on the analysis of the high inventory and low turnover problems and respective reasons in Chongqing main warehouse and out-of-town warehouses.Afterwards it introduces how to use the combination of thinking and methods on lean management and value chain decoupling and remodeling to improve the company's inventory management process,management information and business management.At last,it verifies the results of improvement measures with the late financial figures.