Zero inventory management in supply chain integration

Aug 31st, 2010 | Posted by Freight Forwarder

 In business, the stock price of its cost. To reduce the operating costs of production, reduce out of stock frequency, improve customer service, inventory, supply and demand as a buffer and widespread. But stocks in the total cost to account for a very large share. Second, as the bulk of logistics costs, inventory costs remain high, often disturbed, hinder enterprise development and market share more effectively the important factors. Occupation of the cost of capital stock, need a lot of storage, management fees, taxes and fees; products from stock losses caused by natural wear and tear and technology, especially in the electronics industry with short product life cycle, inventory management caused by aging is a major difficulty. Inventory management also cover a number of flaws, inaccurate forecasts are high inventory cover, due to inventory and discount sales weakened the true origin of the problem. Therefore, the former president of Revlon Michael C · Bojielake sigh: each will become a final inventory mismanagement. Therefore, some excellent practice in the management put forward the concept of zero inventory. 
    
The concept of zero inventory
    
Do not mean zero inventory reserves or no reserves. The so-called zero inventory means materials (including raw materials, semi-finished and finished goods, etc.) in the procurement, production, sales, distribution, etc. of one or several business segments, not in the form of warehouse storage, and in working condition. It does not refer to some form of warehouse storage or storage of certain items the number of true zero, but inventory control through the implementation of specific strategies to achieve the minimum of inventory. The proposed zero inventory, its significance lies in inventory management can solve some waste, reduce inventory management costs, reduce inventory tying up funds, replacing a series of warehouse inventory problems, such as warehouse construction, management costs, inventory maintenance, storage, loading, unloading, handling and other fees, stock liquidity and inventory objects occupy aging, loss, deterioration and other problems.
   
 To achieve zero inventory, companies need to use systems thinking, through internal and external supply chain optimization, for the whole system integration, the ultimate goal to achieve zero inventory.
   
 Internal supply chain optimization
   
Production management, process and between processes and external supply chain logistics has a similar relationship. Through management information, and process reengineering, de5x2u the number of parts with accurate time and accurate delivery location accuracy can be achieved to minimize inventory. Toyota and other excellent company is successful within the zero inventory management practitioners. And created many effective ways. Are:
   
 1, using Kanban management. Kanban approach is a kind of time in a simple and effective way of way, which requires process Q or business use from time to time between the producers and suppliers of the cards as evidence Gudinggeshi, from the next Huanjie 根据 own rhythm against Shengchanliucheng Fang Xiang, supply a custom link up. Its main purpose is to synchronize Supply chain planning in coordination, to enable manufacturing plans, procurement plans, supply plans Nenggou synchronization Jin Xing, Su Duan user response time, save the procurement Zi Yuan, Jiang Di Yuan Cailiao and external components of the Jia Ge, 提高 企业 adaptability. In the specific operation, you can increase or decrease the number of ways to adjust Kanban inventory. Banners first appeared in the United States, and later in Japan and was developed further. From the operation of the method and principle point of view, the following process Kanban management is working procedure forward or downstream firms to upstream business, “pick up” system, and its essence is information mediator. Thus, the implementation of such a supply means, not only can be done on time supply of goods to the demand, and can be synchronized to the needs of those who supply goods, such suppliers will not need to separate the inventory.
   
 2, with JIT delivery method. JIT (Just InTime), the enterprise in a timely manner according to the order of items produced by hand delivery to the user, in this process, goods in transit through the transport and distribution processing, to achieve a way to reduce inventory, this way the most time, the most economical means of procurement and distribution to meet manufacturing requirements. Enterprises can supply a standard mode of operation and reasonable distribution system so that goods in transit for storage, in order to achieve zero inventory.
    3, using synchronous mode. Synchronization is also called dynamic way round, refers to the enterprise system for their production of this well of Sheji under the premises so that all links Xiaoshuai Wanquanxietiao, Conger not even a Gong Wei Qu Xiao Zanshi between the stagnation of such a zero inventory, zero storage form. This mode of production is generally in the conveyor belt-style production, based on a more extended form of a large-scale production and material supply to keep pace with the supply through the transmission system in order to achieve zero inventory form. If sequential production company A, B components, complete parts A through the processing time to prepare all the raw materials of production parts B, which can be adjusted to reduce lead time to production, stock preparation of synchronization. Of course, can also be changed (added a letter to the contents of web page) into the processing technology and improved technical equipment, to achieve the elimination of processes between conversion time, making the whole production system to synchronize smoothly carried out.
    
External supply chain optimization
    
A supply chain, including the activities that the post-companies to accept customer orders product to the client’s Guo Cheng Jiang Zhong contains all the activities, such as Yuan Liao made, design, manufacture, distribution, marketing, service, overall planning Deng. When these activities executed by different enterprises, these enterprises that form a supply chain. The concept of supply chain is different from the traditional marketing chain, it crossed the enterprise line line from Shanghai to Tianjin, the new thinking of starting the extended enterprise, and from the perspective of overall situation and the overall competitiveness of their products, so that the operation of the supply chain from a up as a management tool of the methodology. To achieve zero inventory, companies need to supply the joint efforts of all nodes.
   
 Through the supply chain optimization to achieve zero inventory management, the first node through the collaboration of enterprises to achieve. A large extent, the establishment and optimization of supply chain process is actually a supplier of the assessment, selection process, select the appropriate object (enterprise) as a supply Lian of partners, to enhance supply chain management is the most important . Enterprises need from the product’s delivery time, delivery quality, service, products and prices, a comprehensive assessment partners. If the companies have chosen to partner properly, not only eroded the profits of an enterprise, the enterprise will lose opportunities for collaboration with other enterprises, thus indirectly inhibit the increased competitiveness of enterprises. For the supply chain in the choice of partners, from Shanghai to Tianjin line can follow the following principles: (1) cooperation partners must have their own core competencies; (2) have the same business values and Zhanlue thinking; (3) partners must be less and fine. If the purpose of selecting partners and pertinence, too may lead to excessive proliferation of resources, opportunities and costs money. Build trust. Trust is the supply chain for effective cooperation between enterprises and guarantee bonds. In the traditional trading relations, enterprises are from their own point of view and interests, as far as possible the responsibility, risk, cost shifted to other companies doing business with, but every effort will be of interest to hurry to his pocket. When the Supply Chain Management, 企业, changing traditional trading ideas and ways of thinking to businesses with Hezuo shared Zeren, risk and cost while Gongxiangchengguo and income, which is the long-term trust between the Jianli Guanxi the only effective way. Only enterprises established trust relationship, supply chain operations to get to guarantee and improve the efficiency of the enterprises to gain sustainable competitive advantage.
    
Through an agile supply chain logistics to achieve zero inventory. Operation of the logistics supply chain is seen as their suppliers and customers linked to the capacity. From the customer and the customer information, through the sale of activities, projections and other forms spread throughout the enterprise, then this information is refined into specific manufacturing and procurement plans. Material and semi-finished products through value-added production processes, the final way to transfer the finished products to customers. A business enterprise logistics is an integrated effort, which aims to help enterprises with the lowest total cost to create customer value. Logistics capability through logistics network design, logistics, information synthesis, transportation management, inventory management, warehousing management, coordination of activities to achieve, and logistics management of materials and finished products involved in the transport and storage. It began in the shipment of materials from suppliers or components, which terminated in the delivery of finished goods or processed products to the customer. Enterprises to move inventory (inventory flow) so that the process of value-added logistics.

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