Supply chain management of enterprise logistics

Supply Chain Management of Enterprise Logistics

Changes in the modern market environment require enterprises to accelerate capital turnover, quickly transmit and feedback market information, constantly communicate between production and consumption, provide low-cost quality products, produce customized products to meet customer needs and improve user satisfaction. Therefore, only the establishment of an agile and efficient supply chain logistics system to achieve the requirements of improving the competitiveness of enterprises.

I. The concept of supply chain management

Supply chain management is an integrated management thinking and methodology, which performs the functions of planning and control of logistics in the supply chain from suppliers to end users. Supply chain management is not an alias for supplier management, but a new management strategy that treats each enterprise in the supply chain as an indivisible whole, so that the functions of purchasing, production, distribution, and sales shared by each enterprise in the supply chain become a coordinated organism.

2. Comparison between supply chain management and traditional logistics management

1. There are three major shortcomings in the traditional logistics management

(1) large inventory

Inventory buffer in the traditional supply chain, so that the manufacturer and retailers are stocked with some of the products in stock, which is the cause of stock-outs of the other parts of the supply chain. stock-outs in the rest of the supply chain. In the supply chain, the inventory problem is amplified when warehousing and stocking points are not consistent across companies. Because every participant in the supply chain has inventory, and because of inventory management failures and the interactions between the various segments of the supply chain, by the time the goods reach the last segment of the supply chain, there is virtually no relationship between inventory levels and actual demand for the goods.

(2) Slow response

The looseness of traditional market distribution channels is inherent in the fact that it is impossible to meet the sales demand for hot products due to the disconnect between the reordering process in the supply chain.

(3) Business Processing Lag

Traditional logistics management handles products in a single way, which can lead to slow turnover and circulation of goods when companies have similar levels of inventory about volatile and non-volatile products and distribute them through the same logistics network.

2. The relationship between supply chain management and logistics management

Supply chain management was developed from logistics management, but supply chain management has gone beyond the scope of logistics management.

First of all, supply chain management expands the original logistics system, which exceeds the logistics itself, and makes the enterprise reaction speed faster, service function more systematic, more modern means and forms a kind of organization. In a supply chain, the scope of enterprise services can be extended upward to market research and forecasting, procurement and order processing, and downward to distribution, logistics consulting, logistics program selection and planning, inventory control, loan recovery and settlement, etc., which are the most value-added services.

Secondly, supply chain management makes the original distribution channel and enterprise logistics `opposition to the enterprise logistics *** birth, in this new logistics management system, the associated enterprises to strengthen cooperation, effective control of the supply chain on the logistics, capital, value flow, information flow, etc., to enhance the value chain as a link to the competitive advantage of the various related enterprises.

The core content of supply chain management

From the perspective of supply chain management practice, supply chain management necessarily includes the following aspects.

1. To adopt appropriate management strategies

An enterprise must lock its own strategic objectives and develop supply chain strategies to adapt to this strategic objective. Different industries and different product types require different supply chain management strategies, and the primary goal of supply chain management is to establish a supply chain type that is suitable for its own industry and product characteristics.

2. To strengthen the supply chain of the management of the synergistic business

Synergy is the core of the supply chain thinking, is the ultimate goal of supply chain management, supply chain synergy for the supply chain organization members to cooperate with each other to complete the creation of value of a certain kind of work, and even the supply chain members together to achieve the *** with the same strategic concepts. As a famous American management professor said: supply chain management is ? a collaboration-based strategy that unites cross-firm business operations with a view to realizing a ***same vision of market opportunities? [1]. It can be seen that collaboration between the various parts of the supply chain is necessary to achieve maximum optimization of the supply chain.

3. Supply chain management to order collaboration as the core, to achieve rapid response to orders

Orders documented and communicated from the final customer to retailers, distributors, product vendors and manufacturers, some suppliers of demand information, order placement, response and fulfillment of the supply chain is the beginning and end of the sign of the business process, the order collaboration is the basis of the synergistic work carried out and the ultimate goal, and therefore must be the supply chain of the synergistic business. Therefore, it is inevitable that the supply chain is the core of the collaborative business.

4. To manage the supply chain channel organizations, non-channel organizations

Supply chain management based on end-customer demand, focusing on the core business as the center of the channel business process optimization, that is, the channel as the core of the scope of management, the conditions are ripe for the appropriate expansion to the financial service providers, logistics service providers, manufacturing outsourcing and R & D service providers and so on.

5. To realize the lowest cost of the whole supply chain

One of the goals of supply chain management is to realize the lowest cost of the whole supply chain, in order to enhance the competitiveness of the enterprises in the supply chain, and create the greatest value of concessions to the final customers. The costs of the supply chain are significant, and thus the opportunities for capacity improvements through improved supply chain management are considerable, and even small reductions in the cost of supply chain implementation can have a significant impact on a company's ability to make a profit.

Fourth, the realization of the supply chain management model

The realization of the supply chain management is to suppliers, manufacturers, distributors, retailers and other in a supply chain of all nodes of the enterprise are linked to optimize, so that the means of production at the fastest possible speed, through the production, distribution links into value-added products, to reach the hands of consumers who have consumption demand for the hands of consumers. This can not only reduce costs and social inventory, but also optimize the allocation of social resources. More importantly, through the information network and organization network, it realizes the effective linkage of production and sales and the reasonable flow of logistics, information flow and capital flow, and finally delivers the suitable products to the consumers in time at a reasonable price. Constructing an efficient supply chain can start from several aspects:

1. Incorporate supply chain management into the overall business strategy of the enterprise

Incorporate supply chain management into the overall business strategy of the enterprise, that is to say, when formulating the business strategy, it is necessary to focus on the needs of the customer and the internal business performance of the enterprise, and to consider, design and plan for the entire supply chain system in the whole life cycle of the product.

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2. Customer-centered

In a sense, supply chain management itself is a customer-centered? Pull? The result of marketing promotion, its starting point and landing point, are to create more value for the customer, are to market demand for the driving force of the pull. Customer value is the core of supply chain management, the enterprise is based on customer demand to organize production, products from the beginning of the design, the enterprise has let the customer to participate in order to make the product can really meet the needs of customers, this kind of ? Pull system? The supply chain is driven by customer demand.

3 Emphasize the core competitiveness of the enterprise

In supply chain management, an important concept is to emphasize the core business and competitiveness of the enterprise and position it in the supply chain to outsource non-core business. Due to the limited resources of the enterprise, it is very difficult for the enterprise to gain competitive advantage in a variety of industries and fields, so it must focus its resources on a certain area of its own expertise, i.e., its core business. The core competitiveness of an enterprise is characterized by the fact that it cannot be imitated, bought, dismantled or taken away. The reason why some outstanding enterprises can build an efficient supply chain centered on themselves is that they have irreplaceable competitiveness, and by virtue of this competitiveness to the upstream and downstream enterprises strung together to form an organic chain to create value for customers.

4. The win-win concept of mutual collaboration

Supply chain is a benefit **** the same body formed by the relevant enterprises in order to adapt to the new competitive environment, its close cooperation is based on **** the same interests, the supply chain members of the enterprise through a negotiation mechanism, in order to seek a kind of win-win reciprocal goals. Supply chain management has changed the way of enterprise competition, the competition between enterprises into the competition between the supply chain, emphasizing the core enterprise through the supply chain of upstream and downstream enterprises to establish a strategic partnership between the strong combination of ways, so that each enterprise to play their respective advantages in the value-added chain to achieve the effect of multi-win and mutual benefit.

5. Optimize the information process

The information process is the process of communication within the enterprise staff, customers and suppliers, in the past can only be by telephone, fax, or even face to face to achieve the purpose of information exchange. Now the use of e-commerce, e-mail, and even the Internet for information exchange, although the means are different, but the content has not changed. The advantage of the computer information system lies in its automated operation and the ability to handle large amounts of data, so that the flow of information faster, while reducing errors.

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