Enterprise supply chain (SCM) management specifically what superiority

Supply chain management integrates the business processes of a manufacturing company into a whole, from demand forecasting to sourcing, from manufacturing to transportation and delivery to form a complete value chain, enabling the company to visualize and manage production costs, inventory, and orders, and to make rational analyses and decisions based on near real-time data. The essence of the superiority of supply chain management is to replace real production costs with information costs. Through demand management, we have a full grasp of the market and customer demand status and trends, and then based on more accurate forecasts, we can enjoy demand information with all parties in the supply chain***, formulate and fine-tune the supply plan at any time to ensure smooth production and timely supply, reduce inventory, shorten the lead time for delivery, and increase the rate of complete delivery of orders. Investment in information technology to promote management innovation can effectively replace the traditional push production and black box forecasting caused by the high cost of supply chain and reduce inefficiency or overwhelmed production conditions. In industries with complex equipment and high investment, such as electronic high-tech, metallurgy, petrochemicals, etc., capital-intensive, complex production technology, sensitive equipment utilization, the optimization of production capacity for the enterprise's profitability is very high; in addition, complex manufacturing industries, such as the steel industry, upstream and downstream factories are numerous, complex processes, deep processing levels, multiple production lines, and there are up to several tens of thousands of end-products, the use of supply chain management in These industries optimize orders, improve equipment utilization, the benefits will be very obvious; and then there are industries that configure production by order, such as PC production, manufacturers must respond quickly to customer demand to avoid losing orders; these industries are more suitable for the use of supply chain management to enhance enterprise production and management. Supply chain management can give business managers a very complete picture, and on the basis of actual data and a variety of virtual situations after the comparison of production to make more accurate plans, and make the use of production capacity and product supply tends to be reasonable, so that last-minute changes in the customer can also be coped with. On the one hand, it makes full use of production capacity and coordinates the allocation of resources among multiple factories in different regions (geographies) to optimize overall purchasing, technology*** use, and overall production capacity; on the other hand, it maximizes profitability of orders by means of rational business guidelines and operation plans, and satisfies customers at different levels to ensure sustainable growth of the enterprise by guaranteeing the interests of strategic customers and partners. Supply chain management organizes the business processes of the manufacturing industry so that it can operate according to the unified principle of improving the overall operational efficiency of the supply chain. As a result, each department of the enterprise will be adjusted accordingly in terms of departmental indicators and specific processes. First of all, for the marketing and sales department, it is necessary to strengthen the management of channels and cultivate the importance of high-quality forecasts. The original method of simply entering data in Excel sheets is clearly insufficient, and a demand management system will be used instead. The scattered and diverse data of customers should be entered and filed meticulously. Moreover, the data should be checked and recognized by authority, so that it cannot be entered or changed arbitrarily. System requirements for data can be refined to the year, month, week and day, which requires marketing and sales personnel to familiarize themselves with the historical pattern of change in the market, to understand the dynamic needs of customers, familiar with the system's functions and rules, and finally decide which algorithms to make predictions closer to the real demand. Secondly, for the production planning department, it can be roughly done by the previous capacity plan to backlog inventory to cope with market fluctuations to make full use of the supply chain system tools, combined with the demand for accurate scheduling: for the demand for short-term and medium-term planning principles should be formulated respectively in the short and medium term plan. At the same time, the business rules for scheduling are complex and diverse, with customer hierarchies, strategic partnerships, capacity utilization and order margins to be considered, inventory requirements, and so on. In the end, the production plan is a selection of the best possible scenarios that can be simulated rather than just an estimate of capacity. In this way, with the help of information technology, it is possible to avoid order response times that could not be guaranteed in the past, or delivery times that often differed from the actual situation based on empirical estimates. By simulating various scenarios, it is possible to know in advance the specific impact of various market situations (e.g. inventory, profit, etc.) and how the company should react. By applying the supply chain management system (APS, Advanced Planning System) to the planning, the accuracy of the resulting delivery date can be greatly improved, and since the system takes into account both material constraints and capacity constraints (including off-site branch factories), the promises made to the customer can be guaranteed. For the production and material departments, they receive production plans and material procurement plans based on accurate forecasts and precise scheduling, which can avoid confusion to a large extent; moreover, with the help of the supply chain management system, the original monthly production progress and material supply plans can be improved to weekly or even daily, so as to achieve accurate supply. Process improvement is also reflected in the management level. First of all, business managers should establish a global perspective, the demand and supply together in a holistic manner, sensitive to market demand, and strive to be accurate; suppliers, partners into their own systems, the pursuit of long-term interests, and strive to **** win, and to establish integrity and transparency. Secondly, because the departmental objectives and interests of each department to serve the overall supply chain efficiency of the enterprise under this big goal, managers need to redefine the business sector's key performance indicators to a new height assessment of departmental performance, but also through the leverage of interests to standardize the work of each department, and urge departmental leaders to the overall vision of the supply chain management with a good job in each of the work required. Further, the enterprise should design a reasonable management process or even re-construct an organizational structure to ensure that the advanced model of supply chain can be given full play to in the enterprise and put into practice. The previous section summarizes how supply chain management works and the benefits it can bring to an organization. Like every IT system, supply chain management in China's economic and cultural context, for the current development of most domestic enterprises, need to have some adjustments in order to maximize its advantages. This is reflected in the following aspects. First, many current domestic enterprises belong to the high-growth development stage, i.e., at the initial stage of the growth period. The operational goal of enterprises is to rapidly increase market share and revenue. The fundamental goal of supply chain management is to optimize the supply chain plan to ensure product quality and schedule, and ultimately improve customer satisfaction, service level and market competitiveness. Therefore, the current operational goals of some domestic enterprises may be in conflict with the goals of supply chain management. A simple example, when an enterprise receives an order, it needs to do rational analysis in foreign countries to see whether it can meet the customer's requirements, because supply chain management will measure the delivery time of each order according to the comprehensive factors such as the factory's production capacity and material purchasing cost, and if it is seriously delayed, the enterprise would rather not do it; whereas, some enterprises in China may not lose the order so easily, even if the supply chain has provided the analytical results showing that it is seriously delayed, the enterprise would still accept the order rigidly, resulting in a delay in delivery time. Still will be hard to accept the order, resulting in low customer satisfaction. Or sacrifice profitability to pursue hard market share indicators. Of course, this aspect is also caused by the general environment, the consumer habits of the consumer side also partly led to this choice of manufacturers. Consumption habits of foreign enterprises is to pay attention to service, requiring manufacturers to short lead time, keep promises, or will turn to other sources to buy. And domestic industries tend to be very sensitive to price, for delivery and other aspects of the order deviation is relatively affordable. As a result, manufacturers create a bias in meeting customer demand. In this situation, before the domestic implementation of supply chain management, it is necessary to re-examine the operational objectives of the enterprise, to find the middle way in the current stage, to pave the way for the implementation of supply chain management. Moreover, it is necessary to establish the principle of gradual progress, not one step at a time, relying on supply chain management to improve the quality of core services, and then to point and face.SCM Business Process OverviewAccording to the coarseness of the time, the plan can be divided into the strategic (generally considered in terms of years or a few years), tactical (monthly or weekly) and operational (weekly or daily) levels. At the strategic level, it is possible to consider the long-term capacity plan of the whole enterprise, the guidance and management of demand, as well as the overall plan for sales and operations. At the strategic level, it is possible to consider the medium-term capacity plan, inventory plan, and demand plan of the enterprise; and at the operational level, it is possible to consider the near-term demand, capacity, and generate the master plan, which guides the further factory planning and is used for inquiry and order answering. Secondly, in the process of implementing supply chain, there are some "non-standard" factors that make the system ineffective. The collection of basic data, such as production parameters, production cycle, inventory, delivery cycle, etc., should be more comprehensive and accurate. Otherwise, the system will not be able to correctly reflect the reality of the supply chain, so there is no way to verify which link in the value chain there is a bottleneck, and there is no way to optimize. From this point of view, a better foundation of information technology, such as ERP has been years through the collection of information from various departments to manage the initial standardization, the sales process management is more standardized, conducive to the success of supply chain management. If there is no effective data to support, after all the program will be empty talk and no effect. And through a variety of scenarios simulation, beforehand can know the occurrence of various market conditions on the specific impact of the enterprise (such as inventory, profit, etc.), and how the enterprise should face. Supply chain management system due to the enterprise's business processes into the management system, every day will produce a large amount of dynamic information, and screening of this information, and then analyze and use the effective information to find out the problem of supply chain efficiency, and to help enterprises to make the corresponding countermeasures, is the embodiment of the advantages of the supply chain management, but also more difficult high-end applications. At the same time, it is also a difficult high-end application, because it requires users to fully understand the framework and core functions of the system and be very familiar with their own business processes. Due to the complexity of the supply chain system itself and the diversity of functions and business rules set for enterprise applications, it is difficult to fully understand the results of the system and investigate the supply chain efficiency in depth, and it requires the training of users and the change of the users' working style, as well as the fine-tuning of the system in a gradual manner in the application. As a result, the benefits brought by supply chain management are often not immediately obvious, and some indicators may even regress at the initial stage, which may shake the determination of users and senior leaders to insist on the change of enterprise supply chain management. Understanding some of the difficulties mentioned above, domestic enterprises should adopt the following strategies when implementing supply chain solutions. Because of our enterprise management and production planning of the bottom relative to the western developed countries of the enterprise is relatively weak, in the implementation of supply chain management projects need to grasp the "two-eight" principle, that is, 80% of the energy to solve the most critical 20% of the problem, do not cover everything, the pursuit of perfection. To choose the most urgent need of enterprises, the most likely to produce results in the aspect of the start, phased implementation. Supply chain management of the manufacturing industry's business processes to sort out the requirements of marketing and sales personnel familiar with the historical pattern of change in the market, to understand the dynamic needs of customers, familiar with the functions of the system and the rules, and finally decided to use which algorithms to make predictions closer to the real demand. For different types of manufacturing, different stages of development of enterprises, the application focus will be very different. For many domestic manufacturers and large enterprises with independent intellectual property rights, understanding the domestic market demand and exploring overseas markets are the challenges faced by enterprises, so demand forecast management and sales and operations master plan will be the focus and first choice for supply chain integration. For contract manufacturers, establishing a flexible and low-cost supply chain to ensure customer satisfaction is the main need, so work on demand and factory scheduling planning. The importance of demand management for all companies can also be seen here, which runs through the main line of business activities. Smooth and accurate demand can significantly reduce inventory, conducive to production planning and order response; on the contrary, the marketing channel is disordered, planning work is not in place, the final customer demand is not stable, the order of temporary modifications will be frequent, the production department's pressure increases, the risk of delivery of the order is also increased. Supply chain system tools combine demand for accurate scheduling to optimize order margins. In addition, on the basis of adherence to the principle, for the details of the staff's work habits, so that the system's changes to the work of the change in the way of thinking is focused on the change, rather than mainly spent on the interface and statistical format of the adaptation. For some specific data collection involved in the differences between the economic environment of China and the West, to consider the national conditions. For example, when assessing the cost of a product in a supply chain, labor costs are used, which are usually treated equally in China, and issues such as these are a matter of national context. Key costs should be captured without delaying the progress and effect of the whole supply chain implementation in pursuit of details. Regarding the proportion of customization, there is no convention. However, the so-called personalization must be only the specific business rules of the enterprise, such as the hierarchical level of customer importance, rather than violating the general principles of supply chain management. Finally, there are some suggestions for business leaders, especially senior managers who have decision-making power over large IT projects. First, business leaders should not blindly choose or decide in the early stage, but should read more cases of supply chain management and listen more to the introduction of peers. For the analysis of successful cases, to see the success of the halo behind what paving work in the support, the application of the steps, the key and what are the difficulties. For the case of failure, to dig into the deeper reasons, that is, caused the project blocked where the real barrier, how to overcome. Don't dismiss a software or even the whole supply chain management itself because of one failure. Second, business leaders should understand the transformative nature of the supply chain, its impact on traditional business processes and mindset, be prepared for potential resistance in all aspects, and establish a good framework and system for implementation, so that the benefits can be manifested as early as possible, so that all departments can accept the system as soon as possible and as early as possible. In the project implementation of many times, the original process changes, the promotion of new processes, all need to lead the board decision. So in a certain sense, the supply chain project is a "hand" project, the decision makers to participate in the project is a guarantee of success.