What Is Supply Chain Management?

Supply chain management refers to optimizing the operation of the supply chain and making the supply chain all the processes from procurement to the satisfaction of the end customer at the lowest cost. Management education such as MBA and EMBA includes enterprise supply chain management.

With the deepening of China's economic restructuring,

The supply chain is made up of

The ultimate purpose of a company adopting supply chain management is threefold:

(1) Increase the maximum customer satisfaction (improve the reliability and flexibility of delivery)

(2) Reduce the cost of the company (reduction of inventory, reduction of production and distribution costs)

(1) Information resource sharing. Information is the main backing of modern competition. Supply chain management uses modern scientific and technological methods to enable the rapid and accurate transmission of information with optimal circulation channels, and to realize resource sharing between supply chain providers and enterprises.
(2) Improve service quality and expand customer demand. In supply chain management, we move around the concept of "customer-centric". Most consumers require that the lead time for providing products and services be as short as possible. To this end, supply chain management greatly reduces the circulation cycle of products and accelerates the speed of logistics and distribution through the overall collaboration of internal, external and process companies. The customer's individual needs are met in the shortest possible time.
(3) A win-win situation. Supply chain management connects suppliers, distributors, retailers, etc. in the supply chain, and optimizes them, so that all related companies form a unified and integrated network. In this network, each company still maintains its individual characteristics. . But they work together to maximize the overall benefit and achieve a win-win result. In the development of supply chain management, some people predict that in the future production and circulation, enterprises will not be seen, but only the supply chain. The supply chain of production and circulation will become the main mode of modern production and circulation.

There is no universally accepted definition of supply chain. In the development process of supply chain management, many experts and scholars put forward a large number of definitions, which reflect different backgrounds of the times and are the products of different development stages. These definitions can be roughly drawn.

Supply chain management mainly involves five areas: demand, planning, order delivery, supply, and return. Functional areas include product engineering, product technology assurance, procurement,

1. analysis

1. Customer power, increasing customer power has an important impact on the design and management of the supply chain. Because customer needs and expectations are relatively rapid, the supply chain should be fast and agile, not slow and rigid.

2. Long-term positioning. A well-functioning supply chain as a whole improves the long-term of individual companies and supply chains

supply chain

1. According to the value-added role of partners in the supply chain and their competitive strength, the partners are divided into two levels: important partners and secondary partners.

Important partners are few and fine partners with close relations with the enterprise

Secondary partners are relatively large number of partners who do not have a close relationship with the enterprise.

1. Delivery: Included

(1) Focusing on customers and driving force of market demand

(2) Emphasize that companies should focus on

Demand planning (forecast)

Order fulfills Order promising (when one party guarantees delivery to the customer, the required time and constraints must be taken into account)

Business strategic plan Strategic network optimization (for which markets, which products should be used for which business and which operating services) (monthly-annual)

Supplier Management (Monthly-Annual)

Inventory Management (Daily-Weekly)

Customer Relationship Management (Day to Week)

Distribution and production planning (coordinates the actual production and distribution plan for the entire enterprise) (daily)

Production scheduling (setting flexible production schedules for a single node) (in minutes)

Transportation planning (for multiple supply, manufacturing, distribution, and warehousing nodes in the network)

Transport execution (making long-term plans on a batch basis, usually through a so-called centralized organization of agents) and other modules.

1. Reconstruction of the distribution network

Reconfiguration of the distribution network refers to the use of products produced by one or several manufacturing factories to serve one or more groups of geographically dispersed channel dealers, which is caused when the original demand mode changes or external conditions change Adjustments to the distribution network are needed. This may be caused by the termination of several existing warehouse lease contracts or the increase or decrease in the number of channel dealers.

2. Distribution strategy issues

Distribution strategy is also critical in supply chain management. Using a direct transfer strategy, a classic distribution strategy, or a direct shipping strategy? How many transfer points are needed? Which strategy is more suitable for most node companies in the supply chain?

The so-called direct transfer strategy means that in this strategy, the terminal channel supplies goods from the central warehouse, which acts as a regulator of the supply process and a transfer station for orders from external suppliers, and does not retain inventory itself. The classic distribution strategy is to keep in the central warehouse

mySCM Logistics Management Suite

mySCM Logistics Management Suite inherits and integrates many years of industry and technical experience, and aims to become the world's leading excellent and successful SCM logistics management software, which perfectly serves third-party logistics, e-commerce, and enterprise logistics and supply chain to meet customers The overall demand for current and future logistics informatization. This suite not only allows users to choose functional components for configuration, but also supports enterprises to adjust standard components according to their own unique management methods to fully meet the individualization and differentiation of enterprises. At the same time, the suite has both growth and scalability. With the growth and development of user enterprises, the software can be synchronized with the enterprise through simple adjustments and expansions, and even promote the development of the enterprise. Avoid the risks brought about by the secondary development of the system, and help enterprises improve their competitiveness and realize the maximum value. mySCM Logistics Management Suite combines international advanced management concepts and China's unique complex charging rules to establish an optimized logistics network, using mature OMS, WMS, TMS, billing engines, policy management, collection and payment management, performance management, Planning tasks, monitoring and management, etc., can control the inventory distribution, in-transit volume and flow of products at any time, forming information sharing within the supply chain, thereby reducing inventory and transportation costs of enterprises, optimizing logistics resources, improving the efficiency of collaborative operation of the supply chain, and improving services quality.

Four pivots of supply chain management

The realization of supply chain management is to optimize all the nodes in a supply chain, such as suppliers, manufacturers, distributors, and retailers, so as to optimize the production materials through the production and distribution links at the fastest speed. Into value-added products

Supply chain management, as a brand-new enterprise management model, provides a new way for the majority of small and medium-sized enterprises to enhance their core competitiveness. It is particularly important to consider the management of an enterprise from the perspective of supply chain management. The following "Boss" magazine briefly introduces how enterprise managers should do a good job of enterprise supply chain management:

1. Speed up the construction of talent team and improve the learning ability of the organization

For business managers, talent is a key factor in the successful implementation of supply chain management. Due to the lag of SMEs in the awareness of supply chain management, talents who are familiar with the company's production process technology and enterprise management knowledge, as well as computer knowledge and practical operations, are extremely lacking in SMEs. This requires SMEs to speed up the construction of talent teams, adopt introduction to cultivate, send them for further studies, and strengthen the training of on-the-job employees to form a team that is both familiar with the company's production technology and business management knowledge, as well as computer knowledge and A team of talents for practical operations to meet the needs of enterprises for supply chain management personnel.

2.Use ASP-based third-party supply chain management platform

In view of the shortage of funds for many SMEs, SME managers can use ASP-based supply chain management platform information in the implementation of supply chain management. The ASP (Application Service Provider) model is a more advanced supply chain management information system model. It uses a third-party supply chain management platform, that is, the core enterprise and its channel partners jointly use a third-party investment and construction platform to achieve corresponding supply. Chain management functions. Core companies and their partners no longer invest, operate and manage the supply chain management platforms they need to implement supply chain management, but instead reach agreements with third-party supply chain management platform service providers to directly use third parties through the Internet. Provide its supply chain management software functions, and enjoy various services provided by third-party supply chain platform service providers. Supply chain management system is a special work with huge investment and complicated technology. If an enterprise manager builds his own supply chain management system by himself, it will consume a lot of manpower and material resources, and he will need to pay a high sunk cost. The change and development of its own business also requires continuous upgrading of this supply chain management platform, and this cost is even more difficult to estimate.

3. Strengthen information construction

In today's era, competition is becoming increasingly fierce, and market and product competition are inseparable from information. The essence of implementing supply chain management is the rapid development and manufacturing of products through the complementarity between enterprises to meet the diverse and personalized needs of the market. To achieve this, it must be supported by modern information and communication technology. Therefore, managers of small and medium-sized enterprises should take informatization construction as a top priority, make full use of modern information technology, and promote the sharing of information among members of the supply chain. First of all, to strengthen the sense of urgency and responsibility of enterprise managers for informationization. We cannot consider that small enterprises do not need to be informatized. Secondly, establish corresponding organizations and arrange special personnel to take charge of research and implementation, so as to meet the needs and take into account In the future upgrade and development, we must also fully consider the compatibility and interface issues of the information system among the members of the supply chain; finally, we must train employees' information knowledge and skills.

Supply chain management is to optimize and improve supply chain activities. Its object is the supply chain organization and the "flow" between them. The applied method is integration and collaboration. The goal is to meet the needs of customers and ultimately improve the overall competitiveness of the supply chain. The essence of supply chain management is to deepen the various value-added links of the supply chain, and deliver the correct products required by customers to the correct place, "6R", at the correct time, according to the correct quantity, quality and status. Minimize total cost.

Supply chain management is an advanced management concept, and its advancedness is reflected in the fact that it is oriented to customers and end consumers to meet the final expectations of customers and consumers. In addition, supply chain management has the following characteristics:

First, supply chain management regards all node enterprises as a whole, and realizes strategic management of the whole process.

The traditional management model is often based on the functional departments of the enterprise. However, due to the different nature and goals of various enterprises and internal functional departments, mutual conflicts and conflicts of interest are caused. It cannot fully utilize its functional efficiency. It is therefore difficult to achieve overall targeting.

Supply chain is a network structure composed of suppliers, manufacturers, distributors, sellers, customers and service providers. The links in the chain are not separated from each other, but an organic whole linked together. Supply chain management runs the management of logistics, information flow, capital flow, business flow and value flow throughout the entire process of the supply chain. It covers the entire logistics, from the procurement and supply of raw materials and components, product manufacturing, transportation and warehousing to sales in various functional areas. It requires all nodes to achieve information sharing, risk sharing, coexistence of benefits, and to understand the importance and necessity of supply chain management from a strategic perspective, so as to truly achieve overall effective management.

Second, supply chain management is an integrated management model.

The key to supply chain management is to adopt integrated ideas and methods. It is a comprehensive management model that starts from the supplier, through the manufacturer, distributor, retailer, and finally the end customer. It is a new management strategy that integrates different enterprises to Increasing the efficiency of the entire supply chain, focusing on cooperation between enterprises to achieve global optimization.

Third, the supply chain management proposed a new concept of inventory.

Traditional inventory thinking holds that inventory is a necessary measure to maintain production and sales, and a necessary cost. Therefore, the supply chain management enables the company and its upstream and downstream enterprises to realize the transfer of inventory in different market environments, reducing the inventory cost of the enterprise. This also requires each company member in the supply chain to establish strategic partnerships to reduce total inventory costs through rapid response.

Fourth, supply chain management is centered on the end customer, which is also the operation direction of supply chain management.

Regardless of the number of companies that make up the supply chain, and regardless of the type and number of nodes in the supply chain, the formation of the supply chain is guided by the needs of customers and end consumers. It is because of the needs of customers and end consumers that a supply chain exists. Moreover, only by satisfying the needs of customers and end consumers can there be greater development of the supply chain.

Supply chain management is a modern circulation method that is produced and developed to adapt to modern production methods. In turn, its continuous improvement and improvement of level have accelerated the development of modern production methods. Modern production methods are based on the concept of comparative advantage, using modern information technology as the means, and taking the core competitive advantage of the enterprise as the center to achieve global procurement, global organization and production, and global sales. So modern logistics has become the hub of modern production methods, and the supply chain management that coexists with modern logistics has become a powerful tool for modern production and modern logistics.
Circulation methods are traditionally called wholesale and retail. In the context of e-commerce, wholesale is called BtoB and retail is called BtoC or CtoC. It should be said that BtoB, the traditional wholesale, occupies a considerable share in the circulation of social goods and plays a huge role in the allocation of social resources. In fact, in the revolution of the circulation method, we always hope that our business circle is relatively stable and actively seek this path.
Supply chain management provides us with this method, so supply chain management is an innovation of modern circulation methods and a new source of profit. In the supply chain, upstream and downstream companies have formed strategic alliances, so their relationship is relatively stable. Through information sharing, they form a win-win relationship, realize the optimal allocation of social resources, reduce the total cost of society, avoid vicious competition among enterprises, and improve the benefits of each enterprise and the entire supply chain and the entire society. The supply chain shows us modern, new ways of circulation.

Standing on the shoulders of supply chain giants

Former GE CEO Jack Welch once said: "If you don't have a competitive advantage in the operation of the supply chain, don't compete at all." British management scholar Martin Christopher further emphasized the supply chain Importance, he said, "there is only a supply chain and no companies in the market, and competition in the 21st century is not competition between companies, but rather between supply chains and supply chains."

The supply chain takes the enterprise as the core, including the control of information flow, logistics, and capital flow, starting from the procurement of raw materials, to the production of intermediate products and final products, and finally the products are delivered to consumers by the sales network. From suppliers to manufacturers, distributors, retailers, to end users, this integrated network chain is the supply chain. In this process, we have to consider not only our suppliers and customers, but also suppliers 'customers and customers' customers.

As in a simple food chain such as "grass, rabbit, wolf, and lion", each creature is interdependent and closely related. If the wolf wants to eat a fat and good rabbit, it needs more good If the grass is already rotten grass, the rabbit will diarrhea if it eats, staring at the rabbit every day, do not diarrhea, it is useless to feed the rabbit as much diarrhea every day, and the wolf can only eat this every day. It is a kind of disease rabbit. And this is also one of the problems that more and more companies are encountering. In the process of controlling the supplier, the company finds that the root cause is not the supplier, but the supplier s. supplier.

The management of the supply chain involves all aspects, including 8 aspects, the management of capital flows, the management of information, the fulfillment of orders, the scheduling of production, etc. The management of the supply chain can be said to be all-encompassing. Some people are based on the supply chain. Research on logistics, and some people research information flow based on supply chain.

Taking management information flow as an example, the management process of the supply chain is closely related to the information system.Since the supply chain no longer involves internal affairs of an enterprise, it includes multiple enterprises in the entire supply chain, but these enterprises may be scattered. In different regions, to ensure the efficiency of the entire supply chain, we must ensure the transparency and timely transmission of relevant information. All of the above are inseparable from the information system, but the implementation of the information system should be based on the organization of the business process carding, and this carding process should preferably be before the system layout, if there is no business process carding, go online It is also necessary to be as consistent as possible, otherwise it is difficult to manage changes in the system. Therefore, the supply chain management will ultimately fall on the information system, but the effectiveness of the information system must require the consolidation and optimization of the process. The same reasoning applies. Applicable to group companies-each operating branch office is located in different regions, there are different management systems and management requirements, all of which need to consider process sorting and integration.

Based on the results of PwC's 2013 Global Supply Chain Survey, an efficient supply chain should have consensus on the following 6 aspects:

Supply chain as a strategic asset; the two factors that can bring the highest value are optimizing delivery performance and reducing supply chain costs; unified standards are not acceptable; leaders usually outsource production and transportation, retaining global control of core strategic functions; supply chain Leaders are fully investing in competitiveness that differentiates them from competitors; new technologies and sustainability concerns are raised

The current operating models of different enterprises are different, and the industries of each enterprise are different. There are still many problems in the process of supplier integration. According to the results of PwC's 2013 Global Supply Chain Survey, 7 factors driving supply chain sustainability:

Optimize delivery performance; reduce costs; optimize supply chain flexibility and responsiveness; complexity management; reduce risk; sustainability; tax optimization and efficiency

Taking cost reduction as an example, cost and price are often mentioned in supply chain management. The approach of many companies is to reduce the price of suppliers and urge suppliers to reduce prices every year, so that they gradually fall into a protracted battle with suppliers. In the apparel industry, such as the apparel industry, you can reduce inventory to balance the inventory of various stores, achieve consistent production and sales, improve turnover, and optimize the supply chain by integrating the supply chain, reducing the cost of the supply chain and making the entire supply chain more profitable Much money. Enterprises, suppliers, and customers implement Win-Win and make more money, and lowering prices is not a core issue.

Another example is supplier quality management. What we need to think about is how to solve it, and it is a thorough solution, not a headache, a foot pain, a foot pain, a foot and a foot, how to comprehensively control the quality of suppliers from a comprehensive and systematic perspective. BSI's 3 + 2 model of supplier quality management based on the best practices of various companies. Here 3 refers to the management of supplier's quality and qualification, the management of supplier's quality capability and the management of supplier's quality performance, It refers to the audit of suppliers and the coaching and improvement of suppliers. The two aspects of supplier review and coaching run through the three processes of supplier qualification approval, quality capability and quality performance.

Reference: Shifangtong Supply Chain Management Function Module

1.1.1. Procurement Management

Incorporate the concept of supply chain management and adopt the principle of "no order" to achieve management goals of reducing inventory and accelerating turnover.

The intelligent order generation technology is used to automatically calculate the type and number of items to be purchased according to the current inventory and sales plan.

Cross-enterprise data exchange technology enables full tracking of orders from signing, execution, logistics distribution and payment collection and payment.

Multi-department work in coordination to achieve comprehensive coordination from procurement department, management department, warehouse distribution, finance department, etc.

Establish complete supplier information and supplier evaluation information to achieve classified management and business sub-authority management of suppliers.

1.1.2. Sales Management

Comprehensive customer management functions, with customer classified management, customized salesman partition management, and customer management authorization functions.

Comprehensive payment management functions, including accounts receivable inquiry, account risk reminder and analysis.

1.1.3. Production Management

Production plan management. Generate production plans based on sales plans, production capacity, and material supply.

Collaboration with material clamps, generate material clamp plans and material procurement plans based on production plans, coordinate with suppliers through the system, and adjust production plans based on the supplier's supply capabilities.

JIT feed mode, according to production plan and production process route, produce JIT feed plan, so that the material supply department can

The right time, the right materials, the right way and the right number to the right workstation.

1.1.4. Warehouse Management

Standardize business processes and comprehensively manage incoming goods receipt, storage management, storage management, delivery management, inventory counting, intra-warehouse shifting and inter-warehouse transfers.

Customize the location settings, intelligently allocate storage locations and picking locations, reduce picking errors, and improve warehouse operation efficiency.

Powerful query function, you can accurately check the inventory number and storage location of the product at any time, and fully understand the storage capacity of the warehouse.

It integrates a variety of logistics equipment interfaces, and is compatible with collection equipment and automatic sorting equipment such as ordinary barcodes and RFID tags.

1.1.5. Inventory management

According to the historical turnover of each product, the upper and lower limits of the inventory of the product can be set to achieve the goal of classified management of different product inventory.

Applying the concept of supply chain integration, real-time sharing of inventory between upstream and downstream of the supply chain is realized, and the inventory situation of each link of the supply chain is grasped at any time.

Users can selectively set up inventory sharing with suppliers or customers, and flexibly control customer relationships and trade secrets.

1.1.6. Distribution Management

Comprehensive customer management functions, including customer classification management, custom salesman partition management, and customer management authorization functions.

Sales of goods are authorized by customer classification, and different products and sales prices can be authorized according to different types of customers.

The order tracking function enables tracking of orders from signing, execution, logistics distribution, and payment collection and payment.

Comprehensive payment management functions, including accounts receivable inquiry, account risk reminder and analysis.

1.1.7. Retail Management

A comprehensive store retail (POS) terminal management system makes retail operations faster and more accurate.

Online store retail management. Each physical store has a corresponding online store, which realizes simultaneous sales of online and physical stores.

Chain retail stores implement unified distribution, share member information, share inventory between stores, and realize rapid ordering.

Accurately grasp the real-time inventory situation of each link in the distribution channel, and provide accurate data for on-time distribution and management decisions.

1.1.8. Distribution Management

Support customers to send shipping instructions through the Internet, telephone, fax and other methods.

Automatically generate expense list according to different delivery methods and routes. Adapt to multi-site, cross-region receiving and shipping and transshipment management.

With batch forwarding to home and accepting goods transferred from peers, automatically calculate related costs

Can create and maintain customer profiles, classify and evaluate customers.

1.1.9. Financial Management

It is fully docked with the business system, which reduces the tedious and multiple data errors that operators may enter multiple times.

It has comprehensive accounting management such as general ledger, detailed ledger, cash bookkeeping, bank bookkeeping and so on.

You can customize settings and automatically generate financial statements such as balance sheets, profit statements, cash flow statements, etc.

With powerful statistical analysis and report functions, it provides sound reference data for decision makers.

1.1.10. Office Management

The system integrates innovative management concepts and advanced information technology to improve working efficiency, save operating costs, and improve the competitiveness of enterprises. It also provides advanced management tools to enable enterprises to quickly achieve standardized, paperless, networked and Visual management.

1.1.11. Corporate Website

Use the various website templates provided by the system to quickly establish a corporate website with an independent domain name and enrich its own media.

1.1.12. Promotion

Use Shifangtong e-commerce platform to publicize the characteristics of enterprises and services.

Relying on group advantages, relying on mall brand, industry, geographical convenience and other resource advantages to recommend to customers.

Supply chain product quality indicators refer to the quality of products or parts produced by each node company in the supply chain, and mainly include indicators such as the pass rate, scrap rate, return rate, breakage rate, and value of broken items.