Abstract: Due to the huge quantity and a variety of kinds of spare parts in addition the lack of accurate statistical analysis of receiving/retrieving data, it is difficult to maintain a reasonable stock level, overstock and excess current capital occupation often result. Therefore, a set of spare part management operational flows and models was established by optimizing traditional ABC spare part classification and inventory mechanism and integrating with the practices in China Tobacco Zhejiang Industrial Limited Corporation. An ERP-based information system for spare part management was also developed. The results of application showed that ERP spare part management system integrated the finance and business operations realized consignment business management, and solved the problems of "multi-code for one thing", and reduced the inventory-occupied current capital by nearly 20%. The improved spare part classification and inventory optimizing mechanism effectively eliminated the confusion in spare part classification and kept inventory at a reasonable level.