Analysis of supply chain inventory problems facing the outside of the enterprise Among the problems facing the outside of the enterprise, the most prominent are the following aspects:
First, the backward supply chain inventory management cooperation model It has seriously affected the cooperative relationship and cooperation efficiency between suppliers and manufacturers. Inventory management cooperation in the supply chain is often subject to the short-term interests of powerful enterprises. Most supply chains still adopt the form of users managing their own inventories. Suppliers only obtain rough monthly demand forecasts, temporary rush orders, and monthly consumption by sending outside personnel. Regarding the inventory count information, the two parties did not study the joint replenishment strategy, nor did they share the necessary information. The result is a significant bullwhip effect, significantly increasing inventory levels throughout the supply chain.
Secondly, the mutual squeeze between supply chain members is very prominent. This includes downstream nodes squeezing upstream nodes, strong nodes squeezing weak nodes, and similar nodes squeezing each other. This squeeze manifests itself as a squeeze on prices, costs and risks, ultimately forming a squeeze on profits and living space. This squeeze not only hits weak enterprises, but also has a negative impact on the supply chain, usually causing an increase in the overall cost of the supply chain and affecting the competitiveness of the supply chain.
Third, there is a serious crisis of trust among supply chain members. Including downstream nodes not trusting upstream nodes, asymmetry in trust desires of upstream and downstream nodes, the vulnerability and vicious cycle of trust, and the lack of standardized trust mechanisms in the supply chain. In the supply chain inventory control operation, there is no standardized mechanism to restrict the standards according to which companies in the supply chain should provide the supply chain with the information they should provide, and assist neighboring companies in completing efficient and smooth logistics connections.
The problem of insufficient utilization of external logistics resources and backward logistics capabilities that seriously affect the company's inventory control capabilities is also very prominent. Many companies now purchase from abroad, but the long procurement lead time is a prominent problem for most companies. If external logistics resources are fully utilized, the procurement lead time can be greatly shortened.
Analysis of supply chain inventory problems for internal enterprises
Among the problems for internal enterprises, three prominent points are mainly discussed: First, the internal logistics decision-making mechanism of enterprises violates the basic idea of ??inventory control Secondly, the performance evaluation and incentive mechanism within the enterprise hinders the rationalization of the enterprise's logistics operation and control; thirdly, the technical conditions and environment of the enterprise's internal inventory control are quite backward.
The study found that the fundamental reason that affects the enterprise's inventory control is that the enterprise's own behavior in the process of formulating production plans, demand plans, procurement plans and other logistics decisions violates the conduct of the enterprise's inventory (or overall logistics) Controlling thoughts. Figure 1 is the decision-making process of case company 1. Currently, many manufacturing companies in my country that play the role of suppliers adopt this production/inventory management decision-making method. The company's logistics is mainly driven by the manufacturer's monthly orders. At the same time, the necessary management and control of inventory is carried out to respond to the manufacturer's timely needs and carry out emergency replenishment. Such enterprises often have high average inventory levels and frequent emergency replenishment, which even makes it difficult for the enterprise to bear and cope with it. Figure 2 shows the decision-making process of case company 2. This model is adopted by many final product manufacturers. Such enterprises often determine production based on targets, rolling demand based on production, material procurement based on rolling demand and supply market prices, and finished products based on sales performance. This results in passive incoming and outgoing operations in the warehouse, and there is essentially no inventory control.
The impact of internal performance evaluation and incentive mechanisms on corporate inventory control is relatively hidden, but sufficient attention should be paid to it. A typical phenomenon in enterprises can fully illustrate this problem. For example, the production department decided to overproduce outside of the original plan and applied to the raw material warehouse to withdraw materials. Because the original supply plan did not include this part of the supply plan, so on the surface, the raw materials were out of stock. The warehousing department sent a notice to the supply department to organize procurement. The supply department said that the procurement cycle would take nearly two months, and it would be very difficult to ensure good supply. Therefore, the supply department requested permission to purchase large quantities of materials for storage. As a result, corporate inventory levels naturally increase, logistics turnover slows down, and inventory and related costs increase.
Analyzing the reasons for this phenomenon, we found that there is such a causal relationship. Because overproduction is rewarded with bonuses, at least there is no punishment, so overproduction behavior occurs in the production department. However, there appears to be a shortage on the surface, and the supply department will be punished to a certain extent during the assessment. For its own benefit, the supply department always tries to increase the purchase volume within the scope of the purchase funds, and leaves it to the warehousing department to complete the task, and then reports for purchase. Give a lot of leeway in the lead time so that you can get a higher evaluation or less punishment during the assessment. The warehousing department is faced with difficulties in managing a large amount of inventory due to objective reasons such as storage location, which will also affect the department's assessment results. Therefore, the warehousing department is anxious about being unable to meet material requests, and at the same time resists accepting large quantities of purchased materials. This chaotic behavior of enterprises is essentially due to problems in logistics management of enterprises, but the important thing is that performance evaluation and incentive mechanisms aggravate management problems.
The technical conditions of the enterprise's own inventory control have been fully understood, but it seems difficult to change this situation. The enterprise has no basic classification management, no purchasing mechanism under inventory control, and the control of key materials relies entirely on experience and decision-making; there is no information system, no effective way to share information, and no inventory management software and inventory control decisions. Support technology and strategic optimization technology. The survey found that many manufacturing companies in our country are in this situation. The reason why such companies are profitable usually relies mainly on certain exclusive technologies, special policy protection and growing markets. In the long run, this is dangerous corporate behavior.
Answer's Supplement 2009-05-08 18:02
Inventory control strategies for internal enterprises
Solve the inventory control problems of enterprises for supply chain management , corresponding countermeasures need to be taken from both the external and internal levels of the enterprise, which requires more in-depth research. For most manufacturing companies, what can start from themselves, achieve significant results, and influence the cooperative attitude of upstream and downstream companies in the supply chain is to take action on internal problems within the company.
First of all, the top priority for enterprises is to change the mechanism of corporate logistics decision-making. The logistics decision-making mechanism essentially determines the causal relationship between an enterprise's production operation management, logistics operation performance and inventory status. Figure 3 shows the logistics control mechanism process of an enterprise. Under this mechanism, the inventory control of raw materials and finished products is relatively independent and proactive from the production plan and procurement plan. That is, the enterprise purchases and services production based on the control of inventory, and plans production based on the control of finished product inventory. The key to this transformation of the decision-making mechanism lies in the redesign of the responsibilities and rights of different functional departments to form a new decision-making flow relationship between different departments.
To promote the implementation of this mechanism, there needs to be an effective departmental performance evaluation and supervision and assessment mechanism for incentives. Enterprises must formulate a reasonable logistics performance evaluation index system and provide reasonable performance evaluation reference standards for the enterprise through scientific research, in order to correctly understand the strengths and weaknesses of the enterprise's own logistics operations. On the basis of being able to objectively evaluate one's own performance, the assessment of each department and position should be linked to the overall performance of the enterprise, and the objective causal relationship between the position and performance should be fully reflected in the assessment indicators, rather than superficial work measures, in order to motivate each department. Departments and positions work hard for the overall performance of the company and effectively inhibit the behavior of various departments that deviate from the overall interests of the company.
The setting of performance evaluation and assessment index systems is also a hot topic in current research. You may wish to consider completely changing the existing mechanism from the following aspects: Apply advanced technology to scientifically predict and evaluate the best performance state that an enterprise may achieve, or use The data of the strongest enterprises in the same category are used as benchmark reference to evaluate the actual performance level of the enterprise;
·Transform the department-based assessment system into an assessment system based on the logistics process, and the reward and punishment system is based on The efficiency of the logistics process will be distributed among cooperating departments; · Research and establish strict and standardized logistics management standards for the enterprise, with the standards as constraints, and compare and assess the implementation of each department and position, so that the assessment objectively reflects departmental behavior and logistics control results The causal relationship;
In addition, accelerating the construction of enterprise informatization, adopting advanced information technology and decision support technology, ensuring the smooth flow of information and the implementation of maximum sharing, can effectively deal with the impact of uncertain factors. Reliable evaluation, prediction, and comparative analysis of different strategies to achieve scientific decision-making, information-based control, and dynamic strategies are the technical guarantees for solving inventory control problems.