Research On VMI Project Importation In Z Corporation

Since2005, with the volume of terminal products in Z Corporation continued torise, and the cooperation with the suppliers of the electronic raw material wasincreasing, the traditional supply chain management couldn’t satisfy the supply chaindemand gradually at that time, so that the shortcomings of the traditional supply chainmanagement became more and more obvious. VMI is a new type of supply chainmanagement mode in recent years, it can be very good inhibition for the bullwhipeffect which brings the huge cost burden to the enterprise, and promote the operationefficiency and the market competitiveness of the supply chain all the better. Butmanagement itself features have imitativeness but no replicability, any theory has itsspecific era background and cultural background, supply chain management is noexception.Therefore, this research introduces Z Corporation through the introduction ofsuitable VMI management mode, make full use of the whole supply chain resources,the greatest degree of reduce logistics cost, to ensure high efficiency, low cost, highflexibility and timeliness for logistics management.First of all, mainly introduce the Z Corporation VMI’s background andsignificance, and compared the use of VMI at home and abroad, then fix the thoughtand structure for this report.Secondly, through analyzing and summarizing the shortcomings of thetraditional inventory management to introduce the problems of Z Corporationtraditional inventory management and how to bring on these problems. Final analysisfound, mainly because of the three problems for the inventory management whichunder the environment of supply chain management, the first is the communicationproblem, the information share is not sufficient; and the second is the supply chainoperating problems, the enterprises are lack of coordination each other; the third is the supply chain strategy and planning problems, the traditional inventory management islack of a holistic view.And then put forward to how to solve problems. First of all, to find a suitableinventory management mode for Z Corporation, upon that the VMI(vendor managedinventory) is introduced, and then fix the process of VMI model, finally is the VMI’sconcrete operation&implementation and including the continuous optimization.At last, research on the specific effect analysis for Z Corporation VMI, mainlyinclude four aspects. The first is the contrast of terminal products’ OTDR(On TimeDelivery Rate), the second is the contrast of raw material’s inventory turnover, thethird is the contrast of raw material inventory value, the fourth is the contrast of thehuman cost for logistics management.Conclusion: As the terminal products’ demand fluctuates fast in Z Corporation,only the VMI mode’s supply elasticity can meet it enough, and with the continuousoptimization in the subsequent implementation and operation.