Chip companies have problems in inventory management, the core of which is the supply chain and the overall operation of the enterprise

Faced with the fierce competition in the chip market, chip companies all hope to maintain a certain market share and improve the supply rate by maintaining appropriate inventory to reduce production costs. Then, the inventory management of the chip company becomes the key. In reality, the inventory management of chip companies often appears: the amount of inventory is generally high, especially for start-up companies. Why is that? In the aspect of inventory purchase, the chip company’s inventory management is mainly caused by the poor supplier management and the difficulty in forecasting the order demand; Similarly, problems in inventory production and processing directly lead to a high proportion of inventory in assets and a serious overstock of inventory. A large number of inventories lead to the occupation of working capital, which is easy to lead to poor capital turnover of chip companies, and also affects a series of financial indicators such as inventory turnover times. Then, how to reduce inventory, improve turnover and turn a large amount of inventory into profits through the excellent inventory management system of the chip company, so as to enhance the profitability of the chip company?

In this issue, for the difficulty of inventory management of chip companies, the digital transformation expert of chip semiconductors company share network to bring you the inventory management plan of chip companies for reference.

How to reduce the inventory to a reasonable level in a short time?

How to reduce inventory to a reasonable level in a short time has become a headache for inventory managers of chip companies. Before building such a solution, we need to figure out a few things: What is the reason for the serious inventory backlog? What is the fundamental purpose of inventory elimination? How to turn the capital of overstock into profit? Warehouse management experts said that the level of inventory often depends on the overall operation level of the enterprise, especially the management level of the supply chain.

Poor inventory management of chip companies leads to a large amount of inventory overstock, which is often caused by problems in the supply chain. In terms of supply chain management, our chip companies may have problems in the overall optimization and coordination of information flow, logistics and capital flow. Therefore, if we want to reduce the inventory to a reasonable level in a short time, we need to realize integrated management and collaboration from the perspective of supply chain management and the overall operation level of the enterprise.

How do leading enterprises manage inventory of chip companies?

For a lot of pain points in the inventory management of chip companies, we might as well follow the supply chain management ideas just now, and combine with the SAP solutions running in 9 of the top 10 semiconductor enterprises in the world to find solutions.

We use the system architecture of intelligent supply chain solutions built by SAP to understand the advantages and values brought by the overall operation of the enterprise and the highly collaborative supply chain. As for the inventory management of chip companies, the linkage of “sales and operation plan”, “multi-level inventory plan” and “supplier plan and collaboration” is used to maintain the inventory at a reasonable level.

Of course, some leading technologies will also be used in this process, such as using the prediction and analysis brought by the data to predict the potential slow/non moving inventory, so as to provide a suggested strategy for the chip company’s inventory management, so that enough inventory can be reversed to move over, thus avoiding unsalable inventory in the first place.

Of course, for the inventory management of chip companies, SAP has built an end-to-end smart supply chain platform, integrated all aspects of inventory management into the system from inventory management to receipt/issue tracking, and formed a serial relationship between the front and the rear, so that each batch of goods can be monitored in real time from receipt to final delivery; In the management process of customized products and general products, a separate and unified management mode is implemented to help business personnel control the directional delivery of products from the source; It supports internal related party transactions, reduces the redundant operation process of business personnel, enables the entire business to complete automatic transactions, and accurately transfers business from the front-end company to the parent company. In fact, artificial intelligence technologies such as robots are also used to help chip companies improve their inventory management efficiency, so that chip inventory and warehouse management personnel can focus more on improving the supply chain.

Finally, we can draw a conclusion that the inventory management of chip companies can not only solve the fundamental problem by improving warehousing operations, but more often, as chip company managers, we should view the inventory problem of chip companies from the perspective of overall enterprise operation and supply chain.

Of course, to simply solve the inventory problem of chip companies, SAP also provides solutions like SAP Warehouse Insights (WI, warehousing insight cloud) that integrate SAP EWM separately and through interfaces. Through the built-in analysis engine and template, you can quickly monitor the implementation of the current warehouse. At the same time, the optimization engine provided by WI can optimize the warehouse layout and the moving line of the warehouse, so as to achieve the goal of warehouse optimization and improve the overall efficiency of the warehouse.

For more systematic and detailed solutions for inventory management of chip companies, please Visit the official website to gain more.

This article "Chip companies have problems in inventory management, the core of which is the supply chain and the overall operation of the enterprise" by AcloudEAR. We focus on business applications such as cloud ERP.

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