What is the difference between supply chain management mode and traditional management mode?

"Supply chain" is "a process that centers around the core enterprise, through the control of information flow, logistics, and capital flow, starting from the procurement of raw materials, making intermediate products and final products, and finally delivering the products to the consumers by the sales network. It is a functional network chain model that connects suppliers, manufacturers, distributors, retailers, and end-users into a whole." Therefore, a complete supply chain should include suppliers (raw material suppliers or parts suppliers), manufacturers (processing plants or assembly plants), distributors (agents or wholesalers), retailers (outlets, department stores, supermarkets, specialty stores, convenience stores and grocery stores) and consumers.

It can be seen that it is a much broader model of business organization. It is not only a link between the supplier to the user of the material chain, information chain, capital chain, but also more importantly, it is also a value-added chain. Because the material in the supply chain for processing, packaging, transportation and other processes to increase its value, so that the chain of related enterprises to bring the income. This is critical. It is the foundation on which the supply chain is built. If no additional value is created, i.e., value is added, and the companies involved do not get the return they deserve,

Traditional management is a closed system of management based on ego. Relative to supply chain management, low efficiency, high cost, customer satisfaction is not high disadvantage.