Research On Inventory Cost Management Optimization Of KY Pharmaceutical Company

The pharmaceutical manufacturing industry has a special nature and plays a pivotal role in China's current social economy.With the advent of economic globalization and the implementation of the medical insurance control policy,China's hospital terminal sales continued to slow down.The adjustment of the drug use policy has brought about tremendous changes in the competitive environment of the pharmaceutical industry.The arrival of the meager profit era means that the company should conduct more in-depth and meticulous management in a competitive environment to improve the controllability of market resources.At this stage,the problem of inventory cost largely restricts the development of pharmaceutical manufacturing enterprises.So it makes sense to study inventory cost management.This paper takes KY company as an example to analyze the inventory cost management status from internal value chain and external value chain.It is found that KY's inventory turnover rate is lower than the industry average and the inventory cost is increasing.It is due to the higher procurement costs than budget,having a high inventory holding cost and shortage cost,inappropriate enterprise infrastructure management and the difficulty of predicting product demand.Therefore,KY should optimize the inventory cost management from the various links of the value chain.From the perspective of internal value chain,it should start with inventory classification.Taking the material with the highest cost as an example,the ABC-CVA classification management should be carried out on the materials.Divide the materials into four categories and give the corresponding inventory check method and ordering method,establish a price file and evaluation system,strengthen departmental communication and collaboration to reduce inventory management costs and improve the total cost analysis level to control inventory costs from the perspective of procurement costs,holding costs and out-of-stock costs.From the perspective of external value chain,KY should strengthen supplier management,achieve vertical integration through mergers and acquisitions,and control inventory cost by strengthening customer relationship management through strategic cooperation.