What is supply chain management?

Supply chain management refers to the optimization of supply chain operation. At the lowest cost, all the processes of supply chain from procurement to meeting end customers are included in MBA, EMBA and other management education.

Supply chain management is to coordinate the internal and external resources of enterprises and meet the needs of consumers. When we regard enterprises in all aspects of the supply chain as a virtual enterprise alliance and regard any enterprise in this virtual enterprise alliance as a department, then the internal management of the alliance is supply chain management. However, the composition of the alliance is dynamic and changes at any time according to the needs of the market.

Effective supply chain management can help achieve four goals: shortening cash turnover time; Reduce the risks faced by enterprises; Achieve profit growth; Provide predictable income.

Seven principles of supply chain management: divide customer groups according to the service characteristics required by customers; Design the logistics network of the enterprise according to the customer demand and the profitability of the enterprise; Listen to market demand information and design products closer to customers; Time delay; Determine the source of goods and procurement strategically, and establish a win-win cooperation strategy with suppliers; Establish an information system in the whole supply chain field; Establish the performance appraisal standard of the whole supply chain.