The core of supply chain management is: the management of demand, production, supply and so on. Without demand management, supply chain management has no value. Demand management is mainly product life cycle management, order and forecast management. Although forecasts are always wrong, this does not rule out that you can make a relatively correct judgment . It is precisely this judgment that is lacking in the supply chain management departments of many companies, because it requires overall coordination with sales, customers, production, procurement, and suppliers, which requires a lot of data analysis and basic management. of.
1. What is supply chain management?
Supply Chain Management (Supply Chain Management, SCM) means to optimize the operation of the supply chain, and at the least cost, make the supply chain start from procurement to satisfy the final customer. Management education such as MBA and EMBA will integrate the enterprise supply chain Management is included.
Supply chain management is to coordinate the internal and external resources of the enterprise to jointly meet the needs of consumers. When we regard the enterprises in each link of the supply chain as a virtual enterprise alliance, and regard any enterprise as a department in this virtual enterprise alliance, the alliance's Internal management is supply chain management. It's just that the composition of the alliance is dynamic and changes at any time according to market needs.
2. What is the core value of supply chain management?
The core of supply chain management is:
1. Demand management
2. Production management
3. Supply management
Without demand management, supply chain management has no value. Demand management is mainly product life cycle management, order and forecast management. Although forecasts are always wrong, this does not rule out that you can make a relatively correct judgment . It is precisely this judgment that is lacking in the supply chain management departments of many companies, because it requires overall coordination with sales, customers, production, procurement, and suppliers. This requires a lot of data analysis and basic management work. of.
In the supply chain management system, demand management, production management, and supply management are indispensable. The SRM procurement and supplier management solution launched by Zhixin Low Code starts from the whole industry chain of enterprise supply and demand, and builds an information bridge between enterprises and suppliers, covering supplier life cycle and supplier performance evaluation/electronic Procurement sourcing/contract life cycle management/procurement execution/supplier collaboration and other businesses, another one-stop catalog procurement, plan-driven procurement, and design-driven procurement meet the business management needs of specific fields of enterprises, and realize intelligent procurement digital supply chain manage. Commodity catalog-style procurement mall, contract management and electronic bidding and other services, realize intelligent procurement life cycle management.
3. What are the methods of supply chain management?
The emergence of supply chain management theory lags far behind specific technologies and methods. Supply chain management first appeared in some specific ways. With the development of network technology, network technology is used to comprehensively plan the business flow, logistics, information flow, capital flow, etc. in the supply chain and plan, organize, coordinate and control.
Common supply chain management methods:
1. Quick Response (QR)
Quick response Quick response (QR) refers to the fact that logistics companies face the multi-variety and small-batch buyer's market. Instead of stocking "products", they have prepared various "elements". Extract "elements", "assemble" in time, and provide required services or products. QR is a supply chain management method developed by the American textile and garment industry.
2. Effective Customer Response (ECR)
Effective customer response (efficient consumer response, ECR) is the abbreviation of effective customer response. It is a supply chain management strategy developed from the grocery industry in the United States in 1992. It is also a supply chain management solution that is composed of supply chain members such as manufacturers, wholesalers and retailers, and all parties coordinate and cooperate with each other to better, faster and meet consumer needs at a lower cost. Effective customer response is a supply chain management strategy that is based on the principle of meeting customer requirements and minimizing logistics process costs, and can make timely and accurate responses to optimize the supply of goods or service processes provided.
Fourth, the implementation of supply chain management benefits?
There are significant differences between supply chain management and traditional logistics management in terms of inventory management, goods flow, cost, information flow, risk, planning, and inter-organizational relationships. These differences make supply chain management more advantageous than traditional logistics management. .
1. From the perspective of inventory management and supply logistics
In supply chain management, inventory management is to coordinate among supply chain members to minimize inventory investment and cost; while traditional logistics management is to push inventory forward or backward, depending on who the supply chain members are Most have the initiative. In fact, the traditional logistics management pushes the inventory to the supplier and reduces the inventory investment in the channel, but only transfers the inventory. The way to solve this problem is to reduce uncertainty and make the safety stock lower by providing information about production planning, such as sharing information about expected demand, orders, production plans, etc.
2. In terms of cost
Supply chain management is the optimization of the supply chain by focusing on the final cost of the product. The final cost mentioned here refers to the total cost actually incurred when reaching the customer, including the price at the time of purchase, delivery cost, inventory cost, etc. The traditional logistics management is still limited to the company's internal cost control to achieve the minimum.
Risk and planning are two other important aspects that distinguish supply chain management from traditional logistics management. In supply chain management, risks and plans are shared and communicated by supply chain members, while traditional logistics management only stays within the company. In terms of inter-organizational relations, members in supply chain management reach cooperation based on the control of final costs, while traditional logistics management is based on reducing costs within the company.
5. What does supply chain management include?
1. Plan
Planning is the guarantee for the orderly development of all supply chain activities, involving materials, procurement, production, warehousing, distribution, sales, performance, inventory and other aspects. A good plan can continue to guide and monitor the supply chain execution process to ensure that it is targeted and impartial.
To get the best results from supply chain management, we typically start by matching planned supply with customer and manufacturing demand. Businesses must anticipate future demand and act accordingly. This has to do with the raw materials required at each stage of manufacturing, equipment capabilities and constraints, and personnel needs in the supply chain management process. Large entities often rely on ERP system modules to aggregate information and prepare plans.
A good plan is to establish a series of methods to monitor the supply chain so that it can efficiently and cost-effectively deliver high-quality and high-value products or services to customers.
2. Purchasing
Procurement is to select suppliers who can provide goods and services for products and services, establish a set of pricing, delivery and payment processes with suppliers, and create methods to monitor and improve management, and combine the management process of goods and services provided by suppliers the process of getting up.
Procurement activities to meet business objectives are based on the dismantling and implementation of procurement plans. The goal of procurement is to purchase the right quantity (Right Quantity) and the right quality (Right Quality), referred to as 7R, includes inquiry, supplier management, negotiation, contract signing, purchase order, purchase delivery, purchase receipt, acceptance, purchase settlement and other procurement full-link management, any one If the link is not handled well, the 7R goal cannot be achieved.
3. Manufacturing
Arranging the activities required to manufacture, test, pack and prepare for delivery can be measured in many ways, including quality levels, product yields, and worker productivity.
The production activities engaged in to meet customer performance can be divided into commodity production and order production. Commodity production is generally completed in factories or processing centers. It is the process of manufacturing raw materials into finished products, involving process management such as product process management, processing and assembly; order production refers to the process of packaging and sending out customer orders in warehouses, distribution centers or stores. It involves process management such as order waves, sorting rules, review and packaging. Whether it is commodity production or order production, it is a process of performing contracts according to customer requirements.
4. Delivery
Adjust the user's order receipt, establish a warehouse network, send delivery personnel to pick up the goods and deliver them to customers, establish a product pricing system, and receive payment.
Upstream suppliers in the supply chain, the process of delivering products to downstream customers. After the goods and orders are produced, the fulfillment of the contract is not considered to be completed, and the goods need to be delivered to the customer to complete the two-way delivery of logistics and capital flow. This process is called delivery, which involves process management, timeliness management, and fund settlement of logistics distribution. management etc.
5. Return
This is the problem handling part of the supply chain . Establish a network to receive defective and excess product returns from customers, and provide support when customers have problems with their application products.
The reverse process of the product returning to the upstream supplier through the downstream customer, such as return refund, C2B recycling. If the customer’s order has been sold, the goods need to be returned in reverse, and the company needs to return the funds to the customer according to the after-sales rules. This is the return process, which mainly involves after-sales management, reverse logistics and fund management; The process of selling to the enterprise, evaluating and paying the fee by the enterprise is the recycling process, which mainly involves logistics, recycling inspection and valuation, recycling settlement management, etc.