Inventory Reduction Strategy Research Of C Company Under CEM Mode

Since last century, the profit rate of CEM Company is being less and less, and the competition is very fierce. The customers need much better quality but lower price, as to be the winner. On the contrary, the cost of DL and IDL is increasing, the price of material is increasing, the sources of energy are increasing too. The profit of CEM Company is little. The smile curve line, it tells us:Manufacture Process is the lowest part in product whole life. If we want to change CEM’s destiny, we must expand to the ending and beginning of the Curve, based on Manufacture. That means we need develop R&D, likely ODM or JDM way, or develop SCM, that means develop after-sale service. Fortunately our company had done that, and good foreground.Financial crisis came to us in 2009, many famous companies are bankruptcy, some small companies sustain suffering. But when you research the root cause, you will find poor management system is major reason without financial crisis. And the direct reason is bad cash flow turnover that is coming from excess inventory. When the market is optimistic, excess inventory will be hided. But if it turns bad suddenly, Cash flow will be poor, the companies even will be closed. We get high revenue within lower inventory level is right way. How to do that? What are the inventory controlling methods?Above all the questions, I will try to expound that based on my job. I will write inventory management summary, then discuss inventory management methods, share one project case which I lead recently, and this project’s target is reduce inventory based on CEM Model. I will find some suggestions for inventory management with theory and practice. Please give suggestions to me, as my working experience.