Research On Inventory Management Of M Apparel Company

Since the global financial crisis in 2008,due to the international clothing trade market demand fell sharply,due to poor operating industry management and enterprise competition for channels occupy the market and expanding rapidly since 2010,resulting in China's garment enterprises have erupted inventory crisis,stock collective blowout industry growth.And,in the economic and trade globalization China's clothing enterprises,it is necessary to deal with the competition in the domestic market,but also to deal with the foreign outstanding clothing enterprise challenge,it is be caught between two fires.In recent years,the foreign brand clothing enterprises have landed in the Chinese market,with its high popularity quickly seize the domestic market share,get a great success.In foreign brands and occupy the market at the same time,stride forward singing militant songs in China,local brands in the market competition,enterprises are losing ground,facing great pressure for survival,inventory problems further deterioration.The pressure on inventories has become the biggest problem in the Chinese development of the garment industry,to M company as an example,in the 2009 to 2010 this short period of time within a year,the amount of inventories increased by nearly 2.5 times,rose from 900 million yuan to 2 billion 500 million yuan,while the M company has taken many positive measures to reduce inventory but,high inventory situation has not improved significantly.By the end of 2013,the amount of inventories remained at a high of 2 billion yuan,and most of these are a quarter of product inventory,companies cannot be realized,there is a great possibility that slow-moving,which inevitably weakens the profitability and the level of M company,at the same time occupy the company a lot of working capital,increase the risk of the operation of the company.This paper mainly adopts the method of case study,starting from the problems of the inventory management company perspective,based on the related theories of inventory management and supply chain management as the theoretical basis of the current situation of stock,leading to the existence of M clothing company inventory crisis.M company's main problems are:high inventory and lead to a decline in profits,inventory impairment severity the inventory turnover rate is low,and so on.The main reason is that the company executives blind decision,production schedule is lack of management,put pressure on the stock transfer to the franchisee,poor communication,performance evaluation is improper,by foreign brands and the impact of the rise of online shopping.In this regard,the proposals include:the establishment of science forecast of market demand,a reasonable production plan,improve the relationship with the franchisee,the development of electronic commerce,improve inventory management and supply chain based on the perspective proposed by reconstruction Supply chain and company strategy to adapt to the design of two areas of the north and South joint inventory management center to establish a rapid response mechanism and integration of supply chain operation,finally realize the coordinated development of the whole supply chain inventory,eliminate the root causes of the problem.