S Company China Supply Chain Management Optimization Reserch

In today’s business model, the competition of market is no longer in companies; it has been evolved into competition in supply chains. Under new situation, a company should keep on optimizing its supply chain, it is an important part to keep the company’s core competitiveness. It can make a company always has good opportunity in business competition and keep its advantage. In general, the optimization of supply chain management including optimize the supply chain internal structure, and to develop external suppliers management performance.The paper studied S company China supply chain. S company is a leading company which is under one of the three business units belong to W group. The thesis focus on S company China supply chain to optimize the supply chain management as the subject, based on the modern supply chain management theories, analyze the exposed problem widely and deeply, set up the target to solve the existing problem of the supply chain management, try to make the solution carefully and fully.Under today’s oil gas prices slump down situation, S company business has received great impact and its China supply chain also explored lots of problem which need to be solved urgently. These problems including poor cooperation in internal supply chain, low on time delivery rate, not match sales vs production rate, low sales vs requirement rate, high total inventory cost. After analyzed above problem, I figured out the root cause of these problems, and suggested 3 kind of potential proposal to optimize the current supply chain. The first proposal is consolidation and combination the current supply chain into the W group global supply chain, the second proposal is optimize current internal supply chain, the last one is to develop external suppliers self –management ability.In order to make decision to finalize one of above three potential proposals, by using SWOT analysis method, case study method and comparative analysis method. Finally, I choose the solution as to combine current supply chain into group global supply chain. Because this solution is not only can adjust the organization of current chain internal structure, it can improve internal business evaluation, information sharing and finance support. It can also greatly improve China supply chain on time delivery rate, increase inventory management level. Even, it can embody the spirit of W group supply chain of the global strategy.The implementation process including set up supply chain management company WESH; loading the W group supply chain management business unit unified ESCRM system; to implement VMI management. The VMI management is managed by the Third-part logistics(TPL) based on Just In Time procurement(JIT) with Vender Management Inventory together.It was expected that after implementation the optimization of supply chain management, it can smooth the information sharing and improvement cooperation between with S company supply chain management team and W group China region trading company, which is not good under current supply chain organization. In addition, it can also reduce the frequency about order emendation, reduce the unstable factors in supply chain, set up and maintain accuracy safety stocks well, share demands information in time and clearly, and it will push to establish long term strategy supplier relationship which will be based on trust each other. To implement this proposal is also can develop W group global supply chain construction and can realize W group global procurement target.