Briefly explain the difference between supply chain management and traditional management mode

1, the scope of the different

The traditional management model is limited only to an enterprise within the procurement, production, sales and other departments of management. Supply chain management covers the entire logistics, from the supplier to the end user procurement, production, distribution, retail and other functional areas of the entire process.

2, different goals

In the traditional management model, the goal of each enterprise is to maximize their own interests, and rarely consider the interests and requirements of other enterprises and end users.

And in the supply chain management mode, follow the principle of individual interests to the collective interests, that is, the supply chain participants in the primary goal of the supply chain is the total cost of the entire supply chain is the smallest, the highest efficiency, *** with the final consumer satisfaction as their own responsibility, which is the primary criterion for all participants in the development of decision-making.

3, the status of different

In the traditional management model, they are unequal with the status of the dominant enterprise, while in the supply chain management model, advocating the supply chain of all participants in the status of equality.

4, the enterprise operation is different

In the traditional management mode, enterprises are independent operation, reflecting more competition. In the supply chain management mode, emphasize more is the supply chain node enterprise cooperation and coordination, advocate the establishment of strategic partnership between the node enterprise, change the past hostile relationship between enterprises for close cooperation partnership.

5, sectoral allocation of different

Supply chain management is no longer viewed in isolation of each enterprise and each sector, twenty to consider all the relevant internal and external links - suppliers, manufacturers, sellers, etc., and the entire supply chain as an organically linked whole.

Baidu Encyclopedia-Traditional Management

Baidu Encyclopedia-Supply Chain Management