A Manufacturing Supply Chain Business Model and Its Implementation in a Plastics Manufacturing Company

Effective inventory management strategies and their efficient implementation are recognized as important elements in a manufacturer’s business model. The targets are reduction of the level and value of inventory maintained, high speed in transforming them to orders delivered to customers and flexibility in dealing with demand changes. This paper proposes a business model for inventory management in a Hong Kong plastic products manufacturing company with production facilities located in the mainland. It shows how E-business technology applications have opened up the horizon for realization of such a business model. A supply chain strategy based on mutual trust and inventory information visibility is essential in the implementation of such a business model. The model has been found to be valid and feasible. The benefits attainable to parties in the supply chain are evaluated. It is proposed that the model can also be applied successfully for similar benefits in other companies.