"There must be a mechanism in an enterprise to manage unplanned material occupation (i.e., stagnant materials)." Before implementing ERP, due to its own industrial characteristics, Zhaichi also faced serious problems with stagnant materials. What troubled the company's management even more was that firstly, various departments would shirk responsibility when it came to dealing with stagnant materials, and secondly, these stagnant materials could not be resolved. They watched as the warehouse space became increasingly insufficient, and more capital was tied up in inventory without a reasonable solution.
The bankruptcy of Aido VCD caused shockwaves throughout the industry, and its significance far exceeded the economic impact of the company's collapse. It served more as a wake-up call for other companies in the same field. When discussing how Aido VCD once had over 100 million yuan worth of inventory yet couldn't produce a single VCD, Zhaichi, which also manufactures DVD products, felt deeply moved. Tu Jingqiang said: "A company doesn't make money by stockpiling unsold products."