Traditional Culture Encyclopedia - Traditional virtues - What are the similarities and differences between supply chain management and traditional management?
What are the similarities and differences between supply chain management and traditional management?
"Supply chain" is "around the core enterprises, through the control of information flow, logistics and capital flow, starting from purchasing raw materials, manufacturing intermediate products and final products, and finally delivering products to consumers through the sales network. It is a functional network chain model that connects suppliers, manufacturers, distributors, retailers and end users into a whole. " Therefore, a complete supply chain should include suppliers (raw material suppliers or spare parts suppliers), manufacturers (processing plants or assembly plants), distributors (agents or wholesalers), retailers (shops, department stores, supermarkets, specialty stores, convenience stores and grocery stores) and consumers.
It can be seen that it is a broader enterprise organization model. It is not only a material chain, an information chain and a capital chain connecting suppliers and users, but also a value-added chain. Because materials have been processed, packaged and transported in the supply chain, their value has increased, which has brought benefits to related enterprises in this chain. This is crucial. Is the basis of maintaining this supply chain. If no additional resources are created,
Traditional management is a self-centered closed management system. Compared with supply chain management, it has the disadvantages of low efficiency, high cost and low customer satisfaction.
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