Research On Improving Inventory Management Of YTEC Company

In recent years,the development momentum of China's automotive industry is strong,especially in the field of commercial vehicles,but the profit margin of the automotive industry is declining,and the number of loss-making enterprises is also increasing.Faced with both opportunities and challenges in the automotive industry,many enterprises are striving to benefit from management.Inventory management,as an important management means,has also been paid more attention by more and more enterprises.YTEC Company is a typical automobile parts manufacturing enterprise.It is very weak in inventory management.It is very urgent and necessary to study the problems existing in the company's inventory management and take measures to optimize and improve it.This paper analyses the current situation of YTEC's inventory management,and points out some prominent problems in inventory management,such as low inventory accuracy,inability for customer demand quick response,excessive inventory value,low inventory turnover and serious shortage of material supply.Then the causes of these problems are analyzed in depth,and the root causes of these problems are found out,including the inefficiency of inventory management organizational structure and management is in a mess,the lack of effective customer demand management,the lack of taking into account planning management,the lack of classified management and control of materials,the lack of reasonable inventory structure and control methods,and the incompatibility between ERP system operation and actual work.On the basis of in-depth analysis of inventory management problems,this paper puts forward the improvement strategies of YTEC company's inventory management,including the establishment of supply chain management department and virtual organization of inventory management to achieve efficient centralized management and control,improvement on the classification of customers&demands and the optimization of forecasting methods,the improvement of material inbound&outbound management under both ERP online and actual operation of off line,improvement of ABC classification management,optimize procurement control strategy by applying model,and put forward hourglass inventory structure design and corresponding improvement strategies and methods.This paper also makes a summary pre-evaluation of the improvement effect of YTEC Company's inventory management.The company's inventory management level will be significantly improved,the inventory cost and turnover days will be outstanding reduced,the occupation of large cash will be reduced,and the market competitiveness of enterprises will be enhanced.In addition,there are two main innovations in this paper.One is to break through the design of conventional inventory management organization,and use virtual inventory management organization to achieve unified management.Secondly,according to the actual situation of YTEC Company's inventory management,the hourglass type inventory structure design is proposed,which is used as a guide to optimize the inventory structure and keep reasonable inventory level for materials of different stage.