Research On Inventory Management Strategy Optimization Of M Company From The Perspective Of Supply Chain

With the increasingly fierce market competition,the domestic manufacturing industry has been affected to a certain extent,trade war between China and US and rising raw material costs and labor costs,so that operating costs continue to increase and profit margins continue to be compressed,and the entire environment has increased more and more uncertainties to the development of enterprises.M company is a multinational company in the auto parts industry in this case,with North American exports accounting for 70% of total sales.Deeply affected by the Sino-US trade war since 2018,the company’s profits have been further compressed,and the fluctuation of market demand and the instability of the entire global supply chain have promoted M company to have more flexible and efficient operation management methods and cost advantages.In the entire company’s operation management activities,inventory management is a very important link,which is more and more valued by the management.Optimizing the inventory through scientific inventory management methods can not only reduce the stock coverage days and optimize the inventory structure,but also improve the inventory turnover rate and accelerate the cash flow of the enterprise,so as to maintain low operating costs,which is conducive to the long-term development of enterprise.The thesis based on the inventory status and existing problems of inventory management of M company as the research object,through the study and research of a large number of literature.Firstly,the inventory management strategy is analyzed from a theoretical perspective,including the concept of inventory,stock coverage days,and the factors affecting inventory,at the same time,the theory and methods of inventory management are expounded,such as safety stock theory,scientific material ABC classification,economic order quantity model(EOQ)and reorder point model(ROP).Secondly,this thesis investigates and analyzes the current situation of inventory management of M company,and points out the problems of inventory management of M company through actual financial data and indicators,such as unreasonable organizational structure,imperfect standardized process system,core raw materials depend on import,low localization ratio of domestic suppliers,imperfect SO&P mechanism,and problems with material management.Finally,in view of the actual problems existing in the inventory management of M company,the organizational structure optimization and reorganization were proposed and the supply chain department was established to solve the problems of efficiency and supply function.The strategy of increasing the proportion of localization and localization of raw materials and components was proposed,focusing on solving the instability factors of the global supply chain and optimizing the inventory structure.A series of inventory strategy optimization solutions for building SIOP model,scientific material ABC classification,scientific safety stock setting and ordering strategy,and collaborative management of information and SAP system were proposed,focusing on solving the actual problem of high inventory,and the effectiveness of key data before and after indicators is verified through the implementation guarantee scheme after inventory management strategy optimization.Through the research of the optimization plan of M company’s inventory management strategy,and the expected effect of the implementation of the improvement plan,this thesis will help optimize the inventory structure of M company and reduce the inventory level,so as to reduce the stock coverage days and accelerate the cash flow.The research of this thesis can also provide valuable reference and guidance for the peer manufacturing industry,and has certain practical guiding significance for other similar industries.