What Is a Supply Chain Network?

The supply chain network is made up of member organizations connected to the core enterprises. These organizations are directly or indirectly connected to their suppliers or customers, from the beginning to the consumer. It is necessary to classify and determine which members are decisive for the success of the company and the supply chain in order to pay attention to them and allocate resources appropriately.

Supply chain network

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The supply chain network is made up of member organizations connected to the core enterprises. These organizations are directly or indirectly connected to their suppliers or customers, from the beginning to the consumer. It is necessary to classify and determine which members are decisive for the success of the company and the supply chain in order to pay attention to them and allocate resources appropriately.

Chinese name

Supply chain network

Foreign name

Supply Chain Network

Pinyin

gng yìngliànwng luò

Complex

Supply chain network

Due to the refinement of the division of labor within the enterprise, the information between production and service units is blocked and isolated, and information islands are formed between departments, production or service positions. Enterprise Resource Planning (ERP) has emerged as the times require One of the management tools to solve information silos within the enterprise. However, with the extension and expansion of the production chain, the problem of information islands in the supply chain within or between industries or between enterprises has become increasingly serious. Under this kind of demand, the supply chain information system has become one of the key management methods to solve the problem of information islands in the supply chain of enterprises.

At present, the supply chain information system mainly includes the following four types:

Type 1: Information system networks in global supply chains of large multinational companies such as GM, Toyota, Nokia, and electronics and telecommunications. These information system networks are supply chain network trading systems provided by large multinational companies and their global partners.

Type 2: B2B e-commerce information system network formed by processing trade enterprises in China represented by Taiwan-funded enterprises, Hong Kong-funded enterprises, and Korean and Singaporean enterprises

Type 3: State-owned large enterprises have successively established B2B e-commerce procurement platforms and their information system networks, linking upstream and downstream enterprises in their supply chains. At the same time, Gome, Suning and other local retail service providers share information with Haier, Hisense, Midea, Konka and other electronic manufacturing companies through B2B e-commerce information systems, thereby forming a supply chain information system network in China's industry.

Type 4: A B2B e-commerce information system built by e-commerce companies such as Alibaba, Made in China, HC Network, and Peida to provide e-commerce services for Chinese companies' foreign trade exports.

Although the above four types of B2B e-commerce information system networks differ in form, their mechanisms for creating business value are the same. The value creation mechanism of the supply chain information system network consists of three aspects: first, the supply chain information system network can effectively reduce the cost of collaborative transactions between enterprises, and improve the efficiency of collaborative operation of production and services between enterprises; second, the supply chain information system network Promote information sharing visualization or information visualization between enterprises, improve the ability of enterprises to find problems, and increase the possibility of profit margins for enterprises; Finally, the supply chain information system network forms a network externality, which enhances all participation in the supply chain information system network The overall market value of the consumer.

Second, it is expressed as an extension of the original function. Specifically, the business value creation of the supply chain information system network is mainly manifested in three levels:

The first is to improve the efficiency of the original trading function. For example, the traditional manual processing of foreign trade export documents is converted into pure online operation export documents through the supply chain information system network; the traditional order follower process is transformed into the online self-service document copy process by the supply chain information system network, which effectively improves the company's foreign trade export The efficiency of document processing also saves management costs by reducing the number of documenting employees.

For example, traditional foreign trade agents look for manufacturers to produce export products after receiving orders, and after the supply chain information system network obtains customer order information, it can match and search with the production enterprises and product characteristics in the existing database, which greatly improves the search efficiency. , And optimized the original search function.

The third is the creation of new functions. For example, Wal-Mart's business model in front of the public is retail, but a considerable proportion of its profit is the information intermediary service formed by the supply chain information system network. Wal-Mart uses the data of the supply chain information system network for global procurement and global distribution to discover and find the profit space that exists in the global circulation and between various products. This kind of mining, the function of finding the profit space is entirely created by the supply chain information system network come out.

In 2007, Cooper was successfully developed as the country's first supply chain management BPO platform. Cooper, as one of Peida (Beijing) Technology Co., Ltd.'s well-known brand projects, is a supply chain management outsourcing service platform that can help customers complete logistics tasks such as design, planning, procurement, warehousing, inventory, packaging, transportation, and information.

Cooper is a high-value and highly stable online warehouse management and distribution platform that integrates mass commodity services, consolidated order services, powerful logistics services, active warehousing services, secure payment services, and one-stop procurement services. Provide customers with supply chain solutions for on-demand procurement, zero inventory sales, and personalized procurement. Not only save the effectiveness of customer resources, improve the customer's industry competitiveness, and ultimately significantly increase the profitability of customer products.

At present, there are professional logistics consulting companies in China who have conducted in-depth research on the supply chain system and achieved breakthrough results. It is proposed that the competitive environment in which enterprises are located and the strategic development direction of enterprises are different. Tailored to the specific situation of the enterprise. However, the general principle is the same, that is, it is necessary to ensure high customer satisfaction and minimize corporate costs. Under this goal, reasonable planning includes five supply chain modules: production location determination, warehouse management, transportation and distribution, information processing, and payment system . If we further analyze the influencing factors of customer satisfaction, we can find that in most cases, effective control of time and cost is the main goal of the supply chain system design. Considering time and costs comprehensively, there will be multiple choices for specific supply chain strategies. We need to conduct in-depth analysis of the market and competitive environment, and make objective quantitative and qualitative assessments of the information and preliminary assumptions to determine the optimal solution . ^[1]