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Deep analysis of what is supply chain management!

Time:2019-09-25   Hits674 【Font size:F16 F14 F12
Deep analysis of what is supply chain management!


First, the concept of supply chain management


The supply chain is a network chain structure consisting of suppliers around the core enterprise, suppliers of suppliers and users, users of users. Supply chain management includes all planning and management activities and all logistics management activities for processes involving procurement, outsourcing, and transformation. More importantly, it also includes coordination and collaboration with channel partners, involving suppliers, intermediaries, third-party service providers and customers. In essence, supply chain management is the integration of supply and demand management within and between companies. From the conceptual boundary and relationship analysis of supply chain management, the American Supply Chain Management Association believes that supply chain management is the management integration that links the main functions and basic business processes within and between enterprises and transforms them into organic and efficient business models. . It includes all of the logistics activities in the above process, as well as production operations, which drive the harmonization of processes and activities within and between the company's marketing, sales, product design, finance, and information technology.
Supply Chain Management
Supply Chain Management
Second, the characteristics of supply chain management


Supply chain management is by far the most advanced form of corporate logistics development. Although supply chain management is very complex and dynamic, many companies have gained rich experience and significant results in the practice of supply chain management. The essence of supply chain management is to deepen the various value-added links of the supply chain, and to deliver the correct products required by customers to the right place at the right time, in the right quantity, correct quality and correct state - namely "6R". And minimize the total cost. Supply chain management is an advanced management concept. Its advanced nature is reflected in the customer-oriented and final-consumer-oriented production and supply to meet the ultimate expectations of customers and consumers. Management also has the following characteristics:


(1) Supply chain management regards all node enterprises as a whole and realizes the 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 objectives between the various enterprises and the internal functional departments of the enterprise, mutual conflicts and interest conflicts are caused, and between the enterprises and the internal functional departments. It is impossible to fully realize the efficiency of its functions, and it is difficult to achieve the overall goal.


(2) The supply chain is a network structure composed of suppliers, manufacturers, distributors, distributors, customers and service providers. The links in the chain are not separated from each other, but an organic whole that is interlocking.


(3) Supply chain management is an integrated management model. The key to supply chain management is to adopt integrated ideas and methods. It is a new management strategy that starts from the supplier and is integrated with the whole process and the whole process of the manufacturer, the retailer and the end customer.


(4) Supply chain management proposes a new concept of inventory. The traditional inventory thinking believes that inventory is a necessary measure to maintain production and sales, and is a necessary cost.


(5) Supply chain management is centered on the end customer, which is also the business orientation of supply chain management. Regardless of the number of companies that make up the nodes of the supply chain, and regardless of the type and level of supply chain node enterprises, the formation of the supply chain is oriented to the needs of customers and end consumers.


Third, the core idea of supply chain management


The realization of supply chain management is to optimize the suppliers, manufacturers, distributors, retailers and other nodes in a supply chain to optimize the production materials, through the production and distribution links at the fastest speed. Value-added products reach consumers with consumer demand.


1. Customer-centric


2. Emphasize the core competitiveness of the company


3. Win-win concept of mutual cooperation


4. Optimize information flow


Fourth, the main content of supply chain management


The main content of supply chain management can be summarized into the following three aspects:


1. Supply chain network structure design


2. Integrated supply chain management process design and restructuring


3. Construction of supply chain management mechanism