VMI HUB's Application Research In Lenovo International Personal Computer Company

The 21st century, with the further development of the economy, competition among enterprises has become a supply chain and supply chain's competition, supply chain management has become the business community and academia the focus of attention. Efficient supply chain management will help enterprises to enhance their core competitive advantage. Inventory management in business management has always been an important and indispensable component to achieve an important part of value added. In supply chain management model, the level of inventory is not only the cost of a single enterprise, but also the whole supply chain performance. Supplier Inventory Management (Vendor Management inventory) as a new inventory management strategy, fully embodies the integration thinking of supply chain management. The implementation of this strategy, depends on scientific and rational design of VMI mode of cooperation. How to design a VMI collaboration model, and successfully applied to specific business has become an important research topic.Technological progress and the diversification of demand makes product life cycles shorten, companies face constantly developing new products, shorten lead times, improve product quality, reduce production costs and improve customer service's pressure, which make enormous challenges to enterprise. In particular stock management, electronics manufacturers'80% costs are from the cost of raw materials. Inventory levels, inventory turnover, operating costs and profit of enterprises are closely related. However, the traditional inventory management, resulting in high inventory in Lenovo International, the high excess inventory, lead to high costs. Meanwhile, due to poor communication, lead to information's asymmetry, demand for upstream and downstream transmission of the bullwhip effect occurs intensified international inventory management association.VMI hub as a way to improve inventory management, the correct implementation and adequate preparations are the key ways to play its effectiveness. This dissertation analyzes the proposal to examine the background and significance of VMI hub, and then propose the implementation of VMI hub by the application of the theory, and then further elaborated the background of Lenovo International company, the supply chain, the memory purchasing team, and VMI hub application, which lead to the explain the status and problem of implementation of VMI hub in Lenovo International: organization and operation issue, the risks of materials shorter issue, to analyze and find the root causes of the problem, and obtained the appropriate solutions. At last, I also try to explain the establishment of VMI hub's experience and recommendations.In this dissertation, I would like to illustrate the application of VMI hub in Lenovo International, hoping to prepare a strategy to implement VMI hub benefit from the experience for other company in China. Due to VMI hub's application in China is not long, a lot of concepts and application tools should be continually upgrading and improving.