Suppliers Management And VMI Application Under SCM Strategy

Viewing the development of global economy, mass customization is an inevitable trend. This new trend brings the idea of Supply Chain Management (SCM). This is based on the collaborated business and quick response to the customers demand.This paper starts with the introduction of SCM, and focus on the application of VMI in the SCM strategy, at the same time, the paper emphasizes the importance of Suppliers Management.The paper's main work shown as follows:1. Introduces the idea of SCM, giving a few relevant strategic model of SCM, which is based on the comparison of the traditional SCM and the new one.2. Describes the theory about the Suppliers Management in the SCM strategy, and pointed out that the comprehensive, dynamic management of suppliers is the guarantee of the implementing of the SCM strategy. The paper also offers a solution- Integrated Suppliers Management, which can help the companies to establish a new strategic relationship with the suppliers.3. Describes the theory of Vendor Managed Inventory (VMI) and presents a useful model, which can successfully support the application of VMI.4. Demonstrates a case of VMI application in the auto-manufacturing. Including the formulation of VMI, establish new relationship with suppliers, daily logistics operating and the settlement of VMI. In the case, the paper emphasizes the importance of Suppliers Management and offers a particular description about how to make it.5. Associated with the practical application of VMI, the paper analyses the industries that are suitable to implement VMI and analyses its requirements of the advanced information system. At last, the paper shows the long-term outlook of VMI application.