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w logistics costs, Retail enterprises need to market changes fast and flexible response to customer demand. Choice of suppliers to not consider the lowcost, but access speed and flexibility。 inventory and production capacity in key decisionmaking is not to minimize the cost, but the speed and flexibility of response. to minimize the market demand for the uncertainty caused by the loss. Clearly, innovative products to respond quickly to the request process, the operation of such goods retail enterprises should adopt reactive supply chain. If the retail business is a function of the value of goods they used reactive supply chain, Or maybe the operators are innovative products that have adopted efficient supply chain, supply chain strategy will be a fundamental error, it is necessary to redesign the supply chain. Retail enterprise supply chain management strategy implementation 1. Recognition of the value of retail enterprises demand characteristics, we can modity production cycle, demand predictability, and the market value of diversity into view with the standard of service and so on to identify the characteristics of the demand for modities. In general, the functional value of the longer life cycle (more than two years), innovative products and the life cycle is short (3 months to 1 year)。 functional value less variety (1020 kinds of deformation), innovative products more varieties (usually up to 10 million species of deformation)。 functional modity demand forecast error is less (10%), innovative products forecast larger deviations (40%~100%)。 Functional value of the aver age stock lower rate (1% ~ 2%), innovative modity stock average rate higher (10 to 40%)。 functional modity market into a longer term (6 months to 1 year), innovative products into the market for a shorter period (1 day to 2 weeks)。 Functional modities lower profit contribution rate (is 5% 20%), innovative products higher profit contribution rate (20% ~ 60%). Criterion use these can be effective in identifying characteristics of the demand for modities. 2. Implementation of retail merchandise categories manage retail modity categories management refers to a retail modity groups as a strategic business unit management, to concentrate on transmission and consumers realize the value, in order to obtain better operating performance. Specifically, the retail enterprises operating on all goods by category classification, identification and measurement of each functional category of modities, ine, growth and other indicators, and the types of goods divided into functional goods and innovative products. On this basis, consider bining various types of modity inventory levels and display shelves, and other factors, the development of modity varieties, the entire merchandise category management, enhance customer service levels and achieve overall modity categories of overall revenue maximization. 3. According to the types of goods respectively corresponding supply chain strategy for functional products should focus on lowering the cost of logistics. using efficient supply chain, the implementation of effective customer response (ECR) system. From the enhancement of the efficiency of the supply of goods start. and upstream suppliers and manufacturers between the use of modern information technology to establish mutual coordination modes of supply, Retailers use POS systems, the