How can LED enterprises make good use of inventory to participate in market competition?

Recently, San 'an Optoelectronics released its 2013 annual report, which has a large inventory of raw materials, semi-finished products and finished products. At the end of 2013, the overall inventory amount of San 'an reached 1,158,430,694. In 43 yuan, the company expects to fall by 10,023,528. 14 yuan, the book value of inventory reached 1,148,407,166. 29 yuan. Similarly, Huacan Optoelectronics showed in its 2013 annual report that the book value of inventory at the end of the year was as high as 166,188,236. 06 yuan, also set 7,158,756 accordingly. 48 yuan's price drop preparation. On the one hand, it is the layout of urgent production capacity; on the other hand, it is the inventory with high water level. A large amount of inventory is common in LED industry. However, in the rapidly changing industrial pace, how should LED enterprises make good use of inventory to participate in market competition? According to the difference of the times, Luo Jing, general manager of Zhejiang Hengman optoelectronic marketing, believes that the current price changes of LED lamps and raw materials are too large and the inventory of enterprises should not be too large. Second, the specifications and models of LED have not yet been finalized, and the risk of too much inventory will increase. In the traditional lighting era, the inventory standard of enterprises is often 1. 5% of the normal monthly sales volume. 5 times, the product technical route is relatively stable, and the product life cycle is relatively long. Enterprises should really carry out large-scale sales coverage and sales promotion, it is necessary to match sufficient inventory to respond to the needs of channels and users, which can be timely. In the era of semiconductor lighting, the iteration speed of LED lighting technology is faster than that of traditional lighting. In the process of light source replacement, the change speed of LED product permeability is also faster, the application demand of products fluctuates greatly. In this case, if an enterprise prepares for excessive inventory, once the turnover speed of the enterprise is not enough, the enterprise will face the risk of product iteration. The big risk is that the performance of the product is improving, but the price is falling, and the inventory goods lose their original market competitiveness. However, if an enterprise wants to maintain this kind of competitiveness, it must quickly dispose of its inventory products, which means that the enterprise has to endure the risk of loss. Enterprises with relatively shallow funds and pockets may be deeply involved. Secondly, the risk that enterprises may face when they do not do inventory is small, but it will conflict with the cycle of responding to customers. If the enterprise does not make inventory, it will not be able to respond to the customer's order request in time or the response is insufficient, the customer will choose not to cooperate, and the enterprise will face the risk of losing the order. At the same time, most of the domestic LED application manufacturers rely on foreign trade companies to export their products to foreign markets, and many enterprises are market-oriented enterprises. In addition, the competition among domestic LED enterprises is very fierce, and enterprises are often guided by customers. The industry is in a stage of rapid development, and enterprises should be cautious about preparing for inventory. However, in the face of fierce market competition, if an enterprise has no inventory at all, its timeliness competition weight will be lost. Liu Xiao, general manager of intemet, said that the price of LED lamps has been declining for some time. It will not be too fierce because the price of the company's inventory products will fall. According to their own conditions, still have to prepare some necessary inventory. At the same time, the prospects of the LED industry are very optimistic. If everyone is too optimistic about this, so that the investment is too large, it will lead to the industry facing the risk of excess development. Enterprises should treat stocks with caution. Yiguang lighting management (Shanghai) Wu Zheng, general manager of the limited company, said that in the traditional lighting era, inventory is a sharp weapon for enterprises to compete. In the LED lighting era, excessive inventory is the grave of enterprises. This year's LED industry competition, inventory is actually an important point for enterprises, or a life Gate. If the inventory is not well managed, the competition of enterprises will definitely have fatal problems. If you manage your inventory well, the enterprise will win, at least alive. In view of the current market environment, it is impossible for enterprises to have zero inventory or no inventory, because due to market pressure, moderate inventory is still necessary. At present, the LED market is too impetuous and irrational, and the problems of overcapacity in the industry and homogenization of products have caused vicious competition in the market. Enterprises should still rationally treat inventory.