What Are the Different Supply Chain Management Jobs?

The concept of supply chain management is a general term for a company's guiding ideology values and codes of conduct for supply chain management.

Supply chain management philosophy

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The concept of supply chain management is

Changes in the relationship between price, cost and profit

The introduction of supply chain management can be said to be a challenge of modern business concepts to traditional business concepts. As early as the 18th century, Adam Smith proposed a famous formula "cost + profit = price" in his "The Wealth of Nations". This formula shows that under the premise of cost, the price of the product depends on the expected profit of the operator. In the past two centuries, almost all companies have set their business processes according to this formula. But after entering the 1980s, in the fierce market competition, entrepreneurs have realized that this formula is no longer effective. In his book "Business Process Reengineering", Hamer changed the formula to "price-cost = profit", that is, the customer decides how much a commodity is worth and what quality standards should be met. The amount of profit depends on the ability of the operator to reduce costs under the premise of meeting customer expectations for product prices and quality. Therefore, businesses began to reduce operating costs as one of their main business strategies.

To this end, corporate managers seek to use various technologies to improve operating efficiency and reduce costs. Information technology provides new opportunities to reduce costs. The application of information technology has expanded from the use of computers for data processing and the establishment of MIS to the management of raw material planning, production resource planning, and enterprise resource planning, generating MRP, MRPII, and ERP systems to improve MIS. The application of these systems has played a key role in improving the utilization of internal resources and reducing operating costs.

After making full use of internal resources, the managers of the enterprise are considering how to use the external resources of the enterprise. Among the operating costs of commercial enterprises, the operating costs of the supply chain account for a large proportion. Therefore, in the early 1990s, both production and commercial enterprises focused on achieving the goal of reducing operating costs and improving the efficiency of the supply chain.

Push supply (push supply chain) shift to pull (pull supply chain)

A question that has been debated for a long time is who is the "protagonist" of the supply chain among manufacturers, wholesalers and retailers. Now this argument has been answered-our customers. It is the movement of customers that affects the entire supply chain. In the past business operation models, manufacturers marketed their products to wholesalers, wholesalers to retailers, and retailers to customers. We call this supply of goods a "push-type" supply. In this way, manufacturers, wholesalers, and retailers only focus on bargaining between them. The gain of more benefits from one party is based on the loss of the other party's interests. It is a win-lose transaction. It was later discovered that no matter how well the transactions between the two parties were done, if the products they launched were not accepted by customers, no transaction would bring them benefits. Gradually, manufacturers, wholesalers and retailers are no longer fighting, but business alliances are formed to face customers together. The original "push-type" supply method was changed to a "pull-type" supply method; the traditional "win-lose" transaction method was changed to a "win-win" transaction method. In order to meet changing customer needs, building a flexible and efficient supply chain system is an important part of implementing e-commerce today.

Establishment of the core concept of the supply chain

The content of supply chain management includes determining the optimal quantity and storage location of each commodity inventory, and the optimization management of commodity ordering, storage and distribution processes. In the entire supply chain, not only does each link need to effectively complete its own job, but also the collaborative work between suppliers and retailers, various functional departments within the retailer, such as purchasing, distribution and sales. The introduction and implementation of the supply chain management business philosophy will lead to changes in business models and operating procedures. Therefore, the implementation of supply chain management by an enterprise is not a simple technical problem, but a problem of changing business philosophy and process reengineering.

The outstanding benefits of supply chain management are manifested in two aspects, one is to improve the service level to customers; the other is to reduce the operating costs of enterprises. The first step in implementing supply chain management is to achieve information communication and sharing between suppliers and retailers, and between various departments within the enterprise, so that all links in the supply chain can quickly respond to changes in customer demand, thereby Maximize customer needs. The change in information communication methods has led to changes in transaction methods and transaction processes, which has greatly shortened the transaction cycle, while reducing inventory in each link of the supply chain, reducing waste (such as expired food) or price (over-season goods), Business operating costs. Therefore, the two key technical issues in implementing supply chain management are how to realize information sharing between enterprises and how to realize collaborative work among enterprises. Supply chain management is the key to improving business efficiency for all enterprises. Although the concept of supply chain management is common to all enterprises, each enterprise will determine its own supply and demand relationship according to the market and customer needs, and implement its own supply chain management in different ways. ^[1]