My Study On How To Improve The Inventory Management Of WCL Company

In the twenty-first century, the competitions between EMS companies become more & more fierce. To get profits become more & more difficult to each company. During such a time when a narrow margin of profit can be obtained only, each company has to operate well on all functions, go deep into each corner to dig out any possibility in order to make profits. Nowadays, inventory management, as the main role of supply chain management, has become the main problem that many manufacturing factories are facing, so it is of great significance to each manufacturing factory to find ways on how to improve their inventory management.In the first part of this thesis, it's briefly told that:how the supply chain was evolved from & developed, the clear conception of supply chain, the importance of supply chain management, the advantages that the supply chain management may bring to, the conception of inventory management and its objectives, and the great effect that inventory management can put on the supply chain & the company strategy. Then 3 methods are introduced in details:ABC Taxonomy, VMI (Vendor Management Inventory) & JIT (Just In Time) purchase, which are newly & advanced approaches of inventory managementIn the middle part of this thesis, it's briefly introduced that the whole circumstances which all EMS companies including WCL are facing currently, the WCL company are also introduced briefly, including its organization, current operation status, current operational mode of production plan & materials requirement management. Then all problems that WCL company currently existed on inventory management are analyzed & summarized:low ITO (Inventory Turn-over), high safety stock, high inventory of excess & obsolete materials, the huge variance between the system qty & physical goods inventory, etc.In the end, in light of advanced supply chain management & the above-mentioned new ways of inventory management, the suggestions/measures are given on how to improve the inventory management for WCL company:to strengthen the management of all purchase orders;to improve the percentage of VMI & JIT suppliers by building up strategic relationship with preferred suppliers;to build up the conception of Total Inventory Management; to integrate the warehouses for better management which are operating separately currently; to improve the accuracy of the inventory information/data management; to do better inventory control by making full use of ABC taxonomy, to improve the management of warehouse daily operation, etc.Hope these suggestions can be of some value to other manufacturing factories as well.