Six concepts to understand what is supply chain management

  Supply chain management concept has entered the Chinese international market for years, but if you need the intervention areas of supply chain management, must figure out the following six concepts.

First, the supply chain "chain"

  Supply Chain Management: SCM Supply Chain Management. It is like the Chinese say, "think twice", the focus must be "OK", but must need to "think" before "line." "Thinking" instead of "line" concept is not clear. The focus of supply chain management is a "chain", from B2B, then B2C, C2B and so on and then back to the process are part of the so-called "chain". Like: Chain from customers to suppliers, customers and even from customer to supplier (SCOR concept of) suppliers. So let all common "end" customers efficient work on the same platform.

Second, the demand is not equal to the predicted

  Needs in terms of project management, sales and other work are one of the most attention. Similarly, demand management is the purpose of supply chain management. In the supply chain management needs for the whole relationship between supply and inventory, and then achieve a balance between supply and demand, and efficient way to manage. For PO or SA, the appropriate vendor to confirm, and then create ASN, and complete GR. These are part of supply chain management. In today's automobile factory production management are part of supply chain management.

  And now the "prediction" is not groundless, basically to know the next step of the production and delivery of programs and plans by the previous data set. In fact, the prediction is based on needs, and it needs good management can do better the next "prediction." So as to better production planning

Third, supply chain management, logistics management is not

  Logistics Management: Logistics Management. Logistics, information flow, invoices and other information are part of supply chain management. Logistics care about is that all the information is correct flow of materials, this also represents the flow of funds. That is correct and timely supply chain management information corresponding efficiency and transparency.

  Finally is the invoice, payment, the target is also a supplier of the most concern. All information entered into and closed-loop integrity program, so that all of the information flow, logistics, not flow in vain.

Fourth, the sourcing is not equal implementation of the procurement

  Sourcing: Sourcing. Supply chain procurement is concerned that time, quantity and price. And sourcing process, some company called sourcing engineers who need to understand the materials, technology, quality and much more. In the implementation of the procurement, some companies called the Buyer, they do not understand the product, as long as you can do the implementation of the procurement.

Fifth, the plan is not a simple task

  Some planners only step by step, doing the corresponding overall plan in accordance with the most simple way. In my opinion plan is similar to the army staff, all plans have to be a forward-looking, and the case once the plan is to reach agreement, as much as possible in accordance with the implementation of this plan, otherwise "No rules, no standards." Reduce the waste of staff, waste of time, waste of resources, it is the importance of this program.

Six, IT is not the supply chain management

  Internet is now popular, some people think that IT is that all of the other as the Internet or the cloud of the center, in fact, this is wrong, but IT supply chain enabler, they can not represent the supply chain management, just a tool nothing more. Make supply chain management more efficient and convenient, this is the IT job.

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