The proposal of extremely fast supply chain

Bullwhip effect is a terrible amplification effect, and the most obvious problem is that it leads to a linear increase in enterprise inventory and operating costs. In severe cases, it even involves the development of the entire industrial chain. According to the latest cost structure analysis of enterprises, the total inventory of some industries accounts for more than 50% of the turnover, such as electronics, computers, automobiles and so on. According to the survey of the US Department of Commerce, the average cost of an enterprise in inventory management accounts for about 26% of the total inventory. For an electronic manufacturing industry with a turnover of 1 100 million yuan, the inventory amount is set at about 50%, about 500 million yuan, of which 26%, about1300 million yuan, will be used as expenses. Therefore, the higher the inventory amount, the greater the backlog of inexhaustible liquidity, and the higher the cost of the entire inventory management. The research report also pointed out that if this cost can be reduced, it can generally bring considerable profits to enterprises.

Traditional inventory management methods, whether it is safety stock, reorder point, min-max, MRP, or VMI or CPFR, which are very popular in recent years, have their limitations in application, and the benefits of implementation often depend on the accuracy of "market demand forecast". For industries with small market changes and easy prediction, such as retail and fast-moving consumer goods, there will usually be better results. However, for industries with great market changes, such as electronics manufacturing, IT, computers, or high technology, the results of using these management methods are often very disappointing. One of the main reasons is that it is almost impossible to effectively grasp the market demand forecast. Therefore, in order to effectively reduce the dependence on the accuracy of forecasting and give full play to the benefits of inventory management, many electronic manufacturing industries focus on speeding up the response to the market to overcome the uncertainty of the market. Therefore, how to build a fast supply chain based on networking, platformization and flattening, so as to reduce inventory costs and achieve the purpose of responding to customer needs in real time, will become a very concerned topic in enterprise management.