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Mode analysis | Traditional inventory management mode | VM mode | Mi mode |
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Management entity | Each node company | Supplier | Core enterprise/joint subject |
Advantage | Demand is not clear, the risk is high, and the dealer is too dependent | It can reduce stocks and costs, thus improving the scarcity of goods; friendly cooperative relationships can be achieved with traders by enhancing the level of service; by increasing the demand forecast accuracy, the delivery process can be improved | Implements the sharing of information, improves the operating efficiency of the supply and enhances the service level, thereby reducing risk |
Disadvantage | There are too many inventories and a lack of communication cooperation between warehouse management | There is no integrated system, which is inconvenient for cooperation between departments; it is too dependent on suppliers to lack sufficient trust | Establishes a unified system, promotes cooperation between different sectors, and can be installed for some monitoring to carry out inventory management |
Scope of application | Suitable for some conservative, more traditional organizations and businesses | Some companies do not have IT systems to manage stocks; it is also suitable for some suppliers with solid strength and supply chains to sustainable companies | There should be good communication and trust between nodes of the supply chain and good distribution capacity with the inventory management and distribution center |
Implementation strategy | Determines the needs of stocks by orders and replenishes inventory in time | Establishes a good partnership between customers and establishes a contractual framework | Gives full play to the role of the supply and demand coordination mechanism and establishes a fast distribution system and third-party logistics system to reach a consensus |
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