Essay on supply chain management

Supply chain management is both a new management mode and a new management theory. Throughout the research situation of supply chain management in China in recent years, it can be seen that for the problems encountered in the practice of supply chain management, the theoretical knowledge of many disciplines is widely used to study the specific methods and means of supply chain management, as well as the supply chain management support technology and local optimization technology and so on, and the systematic study of the supply chain management ideas and basic management theory is relatively small. In the author's opinion, the concept of supply chain management should be expanded, at least it should contain the following layers of meaning: supply chain management is a kind of management theory based on horizontal thinking; supply chain management is a kind of horizontal integration management mode; supply chain management is a complex systematic project; supply chain management is a new marginal management discipline. Supply chain management is a new marginal management discipline. Supply chain management contains rich management ideas that are different from traditional management, and has profound philosophy, which should be analyzed and researched in depth. Moreover, the research and application of management methods, tools and technologies should be based on correct management theories and guided by the principles of supply chain management. In view of this, this paper analyzes the idea of supply chain management and provides eight management principles of supply chain management. Second, the eight management principles of supply chain management 1. The principle of horizontal integration of resources The principle of horizontal integration of resources reveals a new thinking in the new economic situation. The principle that, in the rapid development of economic globalization today, enterprises rely only on the original management model and their limited resources, has been unable to meet the rapidly changing market requirements for enterprises. Enterprises must give up the traditional management mode based on vertical thinking and change to a new management mode based on horizontal thinking. Enterprises must horizontally integrate the resources of external related enterprises, the formation of "strong combination, complementary advantages" of the strategic alliance, into a benefit **** the same body to participate in the market competition, in order to realize the improvement of service quality while reducing costs, and quickly respond to customer demand while giving customers more choices of purpose. Different ways of thinking correspond to different management modes and enterprise development strategies. Vertical thinking corresponds to the management mode of "vertical integration", and the development strategy of the enterprise is vertical expansion; horizontal thinking corresponds to the management mode of "horizontal integration", and the development strategy of the enterprise is horizontal alliance. This principle emphasizes the horizontal integration of advantageous resources, i.e., each node enterprise of the supply chain participates in the resource integration of the supply chain with its resources that can produce competitive advantages, and participates in the overall operation of the supply chain with the completion of its advantageous business in the supply chain. This principle is one of the most basic principles of supply chain system management, which indicates the significant change in people's way of thinking. 2. 2. System principle The system principle holds that supply chain is a system, which is an organic whole with specific functions combined by a number of components that interact and depend on each other. The supply chain is a functional network chain structure model that centers around the core enterprise and connects suppliers, manufacturers, distributors, retailers and end users into a whole through the control of information flow, logistics and capital flow. The system characteristics of the supply chain are firstly reflected in its overall function, which is a specific function that any member enterprise of the supply chain does not have, and it is the integration of functions among the supply chain partners, rather than a simple superposition. The overall function of the supply chain system focuses on the comprehensive competitive ability of the supply chain, which is not possessed by any individual member enterprise of the supply chain. Secondly, it is reflected in the purpose of supply chain system. The supply chain system has a clear purpose, which is to provide users with the most satisfactory products and services at the lowest cost, the fastest speed and the best quality under the complex and changing competitive environment, and to win the market by continuously improving the satisfaction of users. This purpose is also the supply chain members of the enterprise **** the same purpose. Third, embodied in the close relationship between supply chain partners, this relationship is based on the *** same interests of the partnership, the realization of the purpose of the supply chain system, the benefit is not just an enterprise, but a group of enterprises. Therefore, each member enterprise has the system concept that local interests are subordinate to the overall interests. Fourthly, it is reflected in the environmental adaptability of supply chain system. In today's rapid development of economic globalization, enterprises are facing a rapidly changing buyer's market, which requires them to respond quickly to the changing market and develop customized "individualized products" that meet the needs of users to capture the market and win the competition. The new supply chain (different from the traditional local supply chain) and supply chain management is to adapt to this new competitive environment. Fifthly, it is reflected in the hierarchy of supply chain system, each member enterprise of the supply chain is a system, and it is also a part of the supply chain system; supply chain is a system, and it is also a part of the larger system to which it belongs. From the perspective of system hierarchy, supply chain management is a kind of management mode for a larger system (enterprise group) compared with the traditional management mode based on individual enterprises. 3. The principle of multi-win and reciprocity The principle of multi-win and reciprocity holds that supply chain is an interest***similarity formed by related enterprises in order to adapt to the new competitive environment, and its close cooperation is built on the basis of***similarity of interests, and the member enterprises of the supply chain seek a multi-win and reciprocity of goals through a negotiation mechanism. Supply chain management has changed the way of enterprise competition, the competition between enterprises into the competition between the supply chain, emphasizing the core enterprise through the supply chain of upstream and downstream enterprises to establish a strategic partnership between the strong combination of ways, so that each enterprise to play their respective advantages in the value-added chain to achieve the effect of multi-win and mutual benefit. Supply chain management embodies the idea of multi-win and mutual benefit in many aspects. For example, the "demand amplification effect" in the supply chain makes the demand information obtained by the upstream enterprises and the customer demand information in the actual consumer market have a great deviation, and the upstream enterprises have to maintain a higher inventory level than the downstream enterprises. Demand amplification effect is the result of distortion of demand information, high inventory phenomenon among supply chain enterprises will bring many problems to the supply chain system operation, which is not in line with the principle of the overall optimization of the supply chain system. In order to solve this problem, in recent years in foreign countries appeared a new supply chain inventory management methods --- supplier management user inventory (VMI), this inventory management strategy breaks the traditional respective inventory management mode, reflecting the supply chain of integrated management ideas, the result is to The result is to reduce the inventory cost of the supply chain as a whole, improve the overall efficiency of the supply chain, and realize the win-win situation among the cooperative enterprises in the supply chain. Another example, in the supply chain between neighboring node enterprises, the traditional supply and demand relationship is price-driven competitive relationship, but in the supply chain management environment, it is a cooperative win-win relationship. 4. The principle of cooperation***sharing The principle of cooperation***sharing has two meanings, one is cooperation and the other is***sharing. According to the principle of cooperation, since the resources of any enterprise are limited, it is impossible for it to gain a competitive advantage in all areas of business, and therefore, if an enterprise wants to win in competition, it must focus its limited resources on its core business. At the same time, the enterprise must establish a close strategic cooperative relationship with the related enterprises with competitive advantages in a certain aspect in the global scope, hand over the non-core business of the enterprise to the cooperative enterprises to complete, give full play to the unique competitive advantages of each of them, so as to improve the overall competitiveness of the supply chain system. According to the principle of ***sharing, the implementation of supply chain partnership implies the ***sharing of management ideas and methods, the ***sharing of resources, the ***sharing of market opportunities, the ***sharing of information, the ***sharing of advanced technology and the ***sharing of risks. Information ***sharing is the basis for realizing supply chain management, and accurate and reliable information can help enterprises make correct decisions. The coordinated operation of the supply chain is built on the basis of high-quality information transmission and ***sharing of each node enterprise, and the application of information technology effectively promotes the development of supply chain management, which can save time and improve the accuracy of enterprise information exchange, reduce the human error in complex and repetitive work, and thus reduce the time wasted and the economic loss caused by the mistakes, and improve the operational efficiency of supply chain management. Operational efficiency. The increase of *** enjoyment of information is very important for supply chain management. Because of the *** enjoyment of information, enterprises at any node in the supply chain can grasp the market demand information and the operation of the whole supply chain in a timely manner, and the logistics information of each link can be transparently exchanged and *** enjoyment with the other links, thus avoiding the distortion of demand information and eliminating the distortion and amplification effect of demand information. 5. Demand-driven principle The demand-driven principle holds that the formation, existence and reconstruction of supply chain are all based on certain market demand, and in the process of supply chain operation, users' demand is the driving source for the operation of information flow, product/service flow and capital flow in the supply chain. In the supply chain management mode, the supply chain operation is order-driven, the commodity purchase order is driven by the user demand order, then the commodity purchase order drives the product manufacturing order, the product manufacturing order drives the raw material (parts) purchase order, and the raw material (parts) purchase order drives the supplier. This order-driven mode, which is driven step by step, enables the supply chain system to respond to the user's demand on time, which reduces the inventory cost and improves the speed of logistics and inventory turnover rate. Based on the principle of demand-driven supply chain operation mode is a kind of reverse pull operation mode, which is fundamentally different from the traditional push operation mode. The push mode is manufacturer-centered and the driving force comes from the manufacturer, while the pull mode is user-centered and the driving force comes from the end user. The two different modes of operation are applicable to different market environments and have different operational effects. Different modes of operation reflect different business philosophy, from the push mode of operation to the pull mode of operation, reflecting the huge changes in the environment and managers of the major changes in the ideological understanding, reflecting the business philosophy from "production-centered" to "customer-oriented" change. It reflects the change of business philosophy from "production-centered" to "customer-centered". 6. rapid response principle rapid response principle that, in the context of global economic integration, with the intensification of market competition, the pace of economic activity is getting faster and faster, the user in the time requirements are also getting higher and higher. Users not only require enterprises to deliver on time, but also require a shorter and shorter delivery time. Therefore, enterprises must be able to make a rapid response to the changing market, there must be a strong product development capabilities and rapid organization of product production capacity, and constantly develop to meet the diversified needs of users, customized "personalized products" to occupy the market to win the competition. In the current market environment, everything requires a quick response to user demand, and to achieve this purpose, only by the efforts of an enterprise is not enough. The supply chain has the ability to respond to the market flexibly and quickly, and through the rapid combination of business processes of each node enterprise, it accelerates the reaction speed to the change of user demand. Supply chain management emphasizes on-time, i.e. on-time procurement, on-time production, on-time distribution, the selection of suppliers should be small and precise, and the application of information technology, etc., which all reflect the idea of rapid response to user needs. 7. Principle of synchronous operation Principle of synchronous operation that the supply chain is a functional network composed of different enterprises, and there are various types of cooperative relationships between its member enterprises, the performance of the supply chain system depends on the harmony of the supply chain partner relationships, and only harmonious and coordinated relationships can play the best performance. The key to supply chain management lies in the union and cooperation between the node enterprises in the supply chain and the good coordination between them in all aspects. The synchronized operation of the supply chain requires that the member enterprises of the supply chain solve the problem of production synchronization through the synchronized production plan, and the synchronized operation of the supply chain can be realized only when the member enterprises of the supply chain as well as the internal departments of the enterprises keep the same pace with each other. The just-in-time production system formed by the supply chain requires the upstream enterprises to provide the necessary raw materials (parts) for the downstream enterprises on time, and if any enterprise in the supply chain can not deliver on time, it will lead to the instability of the supply chain system or the interruption of the operation, resulting in the decrease of the responsiveness of the supply chain system to the users, so it is very important to maintain the consistency of the rhythm of the production of the supply chain between the members of the enterprises. Coordination is one of the core contents of supply chain management. Accurate and unobstructed flow of information is the key to realize the synchronized operation of the supply chain system. To realize the synchronized operation of the supply chain system, it is necessary to establish a supply chain coordination mechanism, so that the information can be transmitted smoothly in the supply chain, thereby reducing the information distortion caused by overproduction and excess inventory, so that the operation of the entire supply chain system can be consistent with the customer's demand, synchronized response to changes in market demand. 8. dynamic reconfiguration principle dynamic reconfiguration principle dynamic reconfiguration principle dynamic reconfiguration principle, the supply chain management is one of the core contents of the supply chain management. 8. Dynamic Reconfiguration Principle Dynamic Reconfiguration Principle believes that supply chain is dynamic and reconfigurable. Supply chain is formed in a certain period of time, for a certain market opportunity, in order to adapt to a certain market demand, with a certain life cycle. When the market environment and user demand changes, the supply chain around the core enterprise must be able to respond quickly and be able to carry out dynamic and rapid reconfiguration. Market opportunities, partner selection, core resource integration, business process reorganization and agility are the main factors for dynamic reconfiguration of supply chain. From the development trend, the formation of virtual enterprises based on the supply chain will be the core content of the dynamic and rapid reconfiguration of the supply chain.