A Study On Inventory Management For Hardware Manufacturing Enterprises

After entering the 21 th Century, with robust development, China’s hardware industry has become world’s largest hardware manufacturer, which also brought challenges to the company. Due to the rapid growth of operating costs and human costs, the whole industry has been considering further and in-depth structural adjustment. As a part of the manufacturing industry, in the past, hardware industry has relied heavily on cheap labor to obtain the margins, but meanwhile, this space has become shrinking. Therefore how to meet the customer demand with the lowest cost is the question which many hardware enterprises manages shall keep pondering on.Along with the improvement of the supply chain management, the company management is trying to find a better solution for the inventory management in order to enhance their core competitiveness. One of the most important theories of supply chain management is inventory management. The level of the inventory impact operation cost and cash flow of company directly. Thus how to make a trade-off between company cost and service level of logistics and achieve a sustainable grow become an essential topic for B Company.Base on the theory of inventory management in supply chain management, this paper takes B Company as example to analyze its inventory problem, including the issues related to inventory structure, forecasting accuracy, and performance evaluation of inventory control. The data of this analysis were from the company’s first hand source and the publicly available secondary sources. Finally, suggestions are given at the last part of this report. For example, how to optimize inventory structure, how to increase forecasting accuracy and how to optimize inventory management evaluation system are all the issues to be discussed. With this comprehensive analysis, we can have a more in-depth understanding of the importance of inventory management. This paper will provide reference for B company, has and also the guidance for the optimization of inventory management in hardware manufacturing enterprises.