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How Can We Meet The Maximum Market Service Level With Minimal Inventory?

2014/4/21 15:20:00 13

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1. The operating environment and inventory management status of many enterprises nowadays

at present, many enterprises are faced with: small batch, many varieties, short order period, market forecast is not allowed, and the market environment with high customization rate is high.

Many enterprises want to achieve the maximum customer service level with minimal inventory.

however, in the actual operation of enterprises, they have to rely on high inventory to seize the market, satisfy orders, resist market fluctuations and purchase channel risks.

In this way, the planning department and Purchasing Department of the enterprise have been doing things like this again and again: building inventories, pressing inventories (building inventories at the beginning of the year, inventory at the end of the year):

always consider enlarging plan volume and increasing device reserve plan when production is not shipped;

always reduce the plan and reject the supplier's delivery when the market wants small quantity and high storage;

these emergency measures often fail to work immediately. Shortages are still lacking. High inventory is still high inventory.

The planned volume of sudden enlargement at the peak of supply often leads to a large quantity of goods arriving after 1-3 months, and the inventory is built up. The rejection of suppliers' goods also leads to deterioration of the relationship with suppliers.

In this way, the "pulse" of inventory always can not keep up with the "heartbeat" of market demand.

Especially for fast-growing companies, inventory is also "no match" to double.

strong > two, what kind of impact will the huge inventory bring to the enterprises? Why are enterprises so afraid of inventory?

1, inventory will bring additional cost and occupy a lot of venues.

P > 2, and now the product update is so fast, especially in the communication and computer industry. High inventory means high risk. Inventory material may become a dead material at any time;

3, a large number of old product inventory backlog, will seriously affect the launch of new products, resulting in missed market opportunities, sometimes we have to sacrifice inventory to protect the launch of new products;

4, a large number of stocks occupy a lot of money, the enterprise's inventory policy is often based on the amount of liquidity on the book. No liquidity means that enterprises should stop running, so they have to stock up and have to postpone delivery. This is an indisputable fact in many enterprises.

three, where is our inventory management problem?

inventory management experience tells us:

1, there is no clear, coherent and long-term inventory policy. The operating departments are not clear about the reasonable level of inventory, and there is a significant shortsightedness in inventory policy;

inventory responsibility is not clear. It seems that inventory is related to market forecast, production planning, procurement and warehousing management. All departments have responsibilities, but there is no real responsible department in actual operation;

3, poor prediction accuracy is an important reason for the unreasonable stock. Because the forecast is too large, the procurement department needs to postpone the delivery of the suppliers. Because the prediction is too small, the safety stock should not be built up;

4, long procurement period makes the whole supply chain link more dependent on prediction, and can not avoid the risk of prediction uncertainty;

5, with many purchase parts and low reuse rate, which greatly increases the difficulty of planning, purchasing and inventory management;

6, version upgrade, ECO change frequently, so that the accuracy of prediction and production plan is reduced, and total dead volume is always generated.

above reflects the enterprise's inventory related process and organization problems. In fact, there are many other problems. For example, there are many inventory organizations, many sub libraries, poor inventory control measures, long borrowing period, long production cycle and many intermediate stocks.

strong > four, how to improve the maximum market service level with minimal inventory?

From the point of view of serving the market, we can not just emphasize how to reduce inventory. The goal of inventory management is to maintain a reasonable level of inventory, which can ensure the timeliness of market delivery and enable p to quickly turn around.

Here are some ideas for improving inventory management. These ideas involve improvements in the design, prediction process, planning process and procurement process of product development stage:

1, formulate reasonable, stable and long-term inventory policy:

inventory policy should be integrated into the S&OP process, so that inventory can keep pace with market demand and match demand with inventory.

2, improvement of market forecast process:

the improvement of prediction accuracy will reduce inventory and increase inventory turnover.

3, further clarify the responsibility of inventory management:

we need to identify who is responsible for the whole process of inventory management, who will formulate the inventory policy, who is responsible for the management of key device reserves and so on.

4, formulate the goal of inventory management, subdivide the target and establish performance appraisal mechanism.

objectives should be subdivided according to the types of products, links and materials, strictly according to the performance indicators of the subdivision, through the whole process of performance indicators to monitor all aspects of inventory management, so that the responsible departments really take charge of inventory management;

optimizing supplier structure, establishing partnership with major suppliers, implementing various procurement methods, shortening the lead time (shorten the lead time), reducing the supply chain's dependence on prediction accuracy, and reducing the inventory risk caused by the forecast uncertainty)

Product Design and process improvement:

improve the sharing rate of components, components and modules, and implement device normalization;

formulate reasonable manufacturing and processing strategies, and vigorously promote virtual manufacturing (outsourcing and OEM production)

the implementation of delayed manufacturing mode: changing the process design, postpone the customized process until the order is received.

6, new product bulk shipment control, version switching and ECO control improvement:

reduce dead food, increase the rate of inventory and utilization.

7, plan and procurement method improvement:

inventory planning method is combined with MRP planning method.

Especially in the case of market uncertainty, we should increase the proportion of inventory planning methods to help procurement, implement various procurement methods, and shorten the procurement cycle.

diversified procurement methods include standard order, long list, package order, JIT and VMI.

8, inventory control: overcharging and too low material alarm and processing.