Research On Domestic Industrial Control Enterprises’ H Company’s Inventory Optimization

Economic globalization makes the trend of competition in all walks of life increase,especially with the advent of VUCA era,the uncertainty probability of supply chain is increasing.The market and business environment faced by manufacturing enterprises are becoming more and more complex and changeable,the uncertainty of customer demand is increasing,the uncertainty of material supply and procurement is becoming more and more unstable,and the delivery cycle of products is becoming more and more complex and changeable.In the future,the competition between enterprises will gradually tend to the competition between supply chains.The operational capability of enterprise supply chain determines whether an enterprise can have the core competitiveness among world-class enterprises.Especially after the epidemic,the industrial pattern will be reshaped.Manufacturing enterprises need to continuously improve the operation level of enterprise supply chain management,reduce the operation cost,and make its supply chain become one of the core competitiveness of enterprises.China’s industrial control industry develops with the rise of China’s manufacturing industry.Although foreign brands still occupy most of the market,the strength of China’s industrial control enterprises is also growing.If national industrial control enterprises want to occupy a place in the field of industrial automation,they should not only make progress in technology and narrow the gap,but also work hard in operation and management.As the leading enterprise in the domestic industrial control industry,H Company’s main business is the research and development and production of industrial automation products.While upgrading their R&D technology and brand capabilities,they also need to continuously improve their supply chain operation and management capabilities.Only in this way can we reshape the industrial structure.Inventory management ability is a key operational index to measure supply chain management,which is related to the comprehensive operating cost,overall profit margin and cash flow of enterprises.The ability to manage inventory is one of the criteria to measure the operational capability of manufacturing enterprises.Based on the statistical analysis of the inventory turnover rate of H Company,this thesis finds that its index is only one third of that of the same industry,which is far lower than that of foreign enterprises with the same sales scale.It can be seen that there is much room for improving the overall operational efficiency of H Company.Company H’s inventory problem has become a bottleneck of rapid growth of enterprises.In order to deeply analyze and research and diagnose the causes of its inventory problems,the main research idea of this thesis is to work out a set of feasible system optimization schemes in product portfolio management,demand forecasting accuracy and product production and operation.This thesis makes an in-depth analysis on the root causes of inventory problems in H company,finds several major causes,and formulates the following solutions:The first,he product portfolio is unreasonable and the product complexity is high.Aim at that unreasonable combination of existing product code structure.Managing the product life cycle is a key solution,which can reduce the inventory problem by reducing the complexity of the product as a whole.The second,the demand forecast is inaccurate,and the demand forecast model and management mechanism are lacking.The corresponding measures for the resulting problems are:establish a demand forecast model and a demand forecast management mechanism for 10%of the product code,which accounts for 90%of the company’s output value,to improve the forecast accuracy.The last,H Company’s batch production mode has many interruptions,long production cycle and more semi-finished products and WIP.In order to solve these problems,the principle of group technology is adopted to classify products.Optimize the existing batch production mode,one piece flow and unit production mode.Overall shorten the production cycle,do a good job of internal and external coordination,and reduce the overall inventory.The inventory system optimization scheme of this thesis is applied to the actual operation activities of H company.It is estimated that the effect before and after the implementation will significantly increase and improve the inventory turnover rate and total inventory amount.It can be seen that the inventory optimization scheme proposed in this thesis highly feasible and effective for the actual work of H Company.The system scheme of inventory management optimization of H Company proposed in this thesis not only has practical guiding significance for H Company,but also provides certain reference significance for similar growing manufacturing enterprises.