What is the relationship between logistics and supply chain?

Currently, there are a lot of research results about supply chain. "There is only supply chain but not enterprise in the market", "the real competition is not between enterprise and enterprise, but between supply chain and supply chain", these points of view for us to understand the logistics, grasp the relationship between enterprises as well as understand the 21st century These ideas are very inspiring for us to understand logistics, to grasp the relationship between enterprises and to understand the market competition in the 21st century. Logistics and supply chain are two different categories. At present, there are basically three views on the international understanding of the supply chain: - the concept of supply chain is an extension of the concept of logistics - logistics and supply chain is the same thing - the integration and integration of the relevant enterprises' business and resources We believe that all the above views reflect people's understanding of the supply chain in a certain aspect, and they are all justified from a particular point of view. However, we are more inclined to think that supply chain is different from logistics, and supply chain is not only an extension of the concept of logistics, but also closely related to the business integration of enterprises, so we are more inclined to the third point of view. Supply chain management should actually include the integration between various functional departments within the supply chain organization and the integration between upstream and downstream organizations in the supply chain, the content of the integration includes business flow, logistics, information flow, etc., and the object of the integration has resources, organizations, business, processes, etc., so the concept of supply chain is more extensive than the concept of logistics. Any software is the embodiment of management ideas. Supply chain management as a new management idea, its software function itself will be different due to the different understanding of supply chain management itself by various management schools. In order to better understand the supply chain management software itself, we will be with the supply chain planning function of a class called the supply chain management software in the broad sense, "supply chain implementation + traditional sales and marketing inventory" is defined as a narrow supply chain management software, the specific content and the relationship with the ERP is shown in figure 1. system structure and model SCOR (Supply- Chain Operations Reference-model) is a system of supply chain management software, which is a new management idea. SCOR (Supply- Chain Operations Reference-model) is the first standard supply chain process reference model, is a diagnostic tool for the supply chain, covering all industries. SCOR enables enterprises to accurately communicate supply chain problems, objectively assess their performance, and determine the performance improvement goals. 1.Supply Chain Operations Reference-model (SCOR) process reference model usually includes A set of process definitions, metrics, and benchmarks to help companies develop process improvement strategies SCOR is not the first process reference model, but it is the first standard supply chain reference model The SCOR model consists of four main components: a general definition of supply chain management processes, benchmarks of performance metrics that correspond to those processes, a description of the "best implementation" of the supply chain, and the selection of the supply chain "best practice". The SCOR model can be divided into three levels of process definition, each of which can be used to analyze the operation of an enterprise's supply chain. Below the third level, there can be a fourth, fifth, and sixth level of more detailed process descriptions that are specific to each enterprise, and the process definitions in these levels are not included in the SCOR model.The first level of the SCOR model describes five basic processes: Plan, Source, Make, Deliver, and Return. It defines a reference model for supply chain operations. It defines the scope and content of the supply chain operation reference model, and determines the basis of the enterprise's competitive performance objectives.2. Technical PillarsThere are two technical pillars for realizing SCM: Integration (Integration) and Collaboration (Coordination). The collaborative function of the supply chain is based on three technologies: 1) modern information and communication technologies; 2) process calibration (benchmarking) - the operational effectiveness of the industry's best-practice enterprises as a benchmark template, the implementation of supply chain transformation of the later to this template; 3) advanced planning and scheduling technologies (Advanced Planning and Scheduling (APS).APS is able to unify and coordinate long, medium, and near-term planning among enterprises, and is the core of SCM.The core of APS is based on mathematical algorithms or solutions that have been proven over a long period of time. However, there is no single technique used in APS, and the specific algorithms applied (e.g., linear programming, mixed integer programming, inference, theory of constraints, and simulation, etc.) depend on the type of problem to be solved.APS downloads the data from the ERP system to a dedicated server to do the memory-resident processing, and implements iterative computation of the plan or evaluates the available alternatives until a feasible or essentially profitable plan or schedule is obtained. 3. 3. Supply Chain Management Software Functional Description Currently referred to as the broad supply chain management software SCM, according to the process of planning between supply chain organizations, scheduling and supply chain plan execution and control, focusing on the optimization of the entire supply chain and the supply network and throughout the entire supply chain plan implementation. Good SCM software providers offer suites that include the full range of business processes parallel to manufacturing business processes from order entry to product delivery, including forecasting, supply chain and production planning, demand and distribution management, transportation planning, and various forms of business intelligence. Logistics / Supply Chain Software Selection Criteria The development of the logistics industry has reached a stage where modern logistics information systems have become an indispensable element of enterprise logistics management and operations. Foreign research organizations predict that by the end of 2002, China's IT industry and e-commerce market will reach 15 billion U.S. dollars, the supply chain management software and services market will also reach 4 billion U.S. dollars. In fact, there is no IT system support has become an important symbol of modern logistics operations. Many enterprises in the choice of third-party logistics service providers often take it as an important prerequisite. Therefore, the choice of logistics IT system for enterprises is not so much an information technology choice as a choice of enterprise management mode and market competition strategy. Generally speaking, there are two paths for the establishment of logistics/supply chain management system: one is tailor-made development; the other is the introduction of integrated system. As we all know, the premise of tailor-made development of logistics IT system is the design of enterprise logistics operation process; the introduction of integrated system also often requires enterprises to change the existing logistics operation process. Therefore, no matter which way to go, the enterprise to establish logistics IT system is to determine the premise of its logistics operation process. 1. Path selection, as mentioned earlier, logistics operation process design or reengineering based on two: one is the customer's logistics service needs; the second is the enterprise's logistics management model. The former is the system goal, but may lead to changes in the enterprise logistics system, such as distribution center site selection, layout and structure, which in turn leads to changes in the process. The latter is the means of service, which is the method of configuring the logistics service resources of the enterprise to meet customer demand. Such as inventory level control, inventory layout and structure configuration, inventory availability priority sorting, the choice of different modes of transportation and so on. Obviously, the same enterprise when it adopts different marketing channel structure, or distribution, or direct sales, or distribution and direct sales combined, when it uses different logistics management model, or centralized, or decentralized, or hierarchical, or outsourcing, its logistics operation process and the corresponding logistics IT system - data centralized storage or data The hierarchical storage of data is not the same. In fact, after the customer demand is determined, the enterprise's logistics management model will play a decisive role in the process design. At this point, the design of logistics operation process has actually been transformed into a customer service demand and the matching problem of enterprise service capability. It must be pointed out that, in practice, people often only pay attention to the enterprise's logistics management model and ignore the customer's specific logistics service needs, so that the design of the logistics IT system has lost the most fundamental basis. As a result, it is often not possible to establish a direct knowledge relationship between the information in question and customer service. As a result, the establishment of the logistics information system is either too idealized and inapplicable, or is the desktop of the enterprise's existing logistics operation and management model and ledger. The computer screen is filled with a large number of incomprehensible operational and statistical data, in fact, with the improvement of customer service level and enterprise logistics management does not have any direct relationship. The regulation and control of the enterprise logistics operation process or to rely on the experience of managers, or also to the relevant information for secondary or tertiary processing. Therefore, it is not surprising that many enterprises in the logistics IT system often feel that its openness and flexibility and even the applicability of the lack of. How to choose the logistics management model of the enterprise? The answer is: to meet customer demand as the goal of the enterprise's competitive strategy. Or total cost leadership, or differentiated services, or specialization strategy (focus a little). For many small and medium-sized traditional logistics companies in transition, it may be wise to choose the specialization strategy. How is an enterprise's competitive strategy chosen? The answer is: it is determined by the growth strategy of the enterprise. Competitive strategy solves the problem of enterprise survival and development in the established market, while the development strategy solves the problem of enterprise market entry and exit and development direction. Logistics IT system investment belongs to the enterprise's long-term strategic investment, so in the design and introduction of logistics management information system before the correct approach often requires enterprises to develop strategic development planning. Then, how is the development strategy of the enterprise to choose? The answer is: by the market, i.e., customer demand decision. Therefore, in the final analysis, the design of the enterprise logistics IT system must be based on customer service needs as the basic basis. The return on investment in logistics IT systems not only includes the reduction of operating costs, operational efficiency and improve customer service levels, but also includes the acquisition and accumulation of knowledge of logistics management. 2. System selection should pay attention to a number of issues to have a clear market positioning, such as industry positioning, product positioning or customer orientation. To have a clear service orientation such as warehousing services, freight services, freight forwarding services, supply services, distribution services or supply chain integration. In the market positioning, not only to examine the customer enterprise, but also to examine the customer enterprise belongs to the industry development trend, to consider the customer's customers and their suppliers of suppliers. The existing logistics operation process and value chain of the enterprise itself should also be carefully analyzed to find out what needs to be improved the most. the establishment of IT system should be cut from the link with the most potential return on investment, instead of blindly blooming all over the place. Comprehensive IT systemization without strategy and focus does not lead to overall service level and service profitability improvements, and may also have a negative impact in terms of investment and implementation. It is important to work with customers to agree on logistics service objectives, define a corporate logistics management model, and mechanisms for information sharing. This is particularly important for third-party logistics service providers. Without interactive mechanisms, there is no sharing of information, let alone a high level of logistics services or third-party logistics. The structure of the system should be open and expansive. If the current warehouse is to be transformed into a value-added service center, then in terms of the configuration of the IT system, there must be at least a warehouse management system and a business management system, but also a bar code printing system and a wireless terminal identification system, and so on. However, it must be based on the enterprise's logistics development strategy, but also consider the economic life of the information technology concerned. To prevent the purchase of redundant equipment for the purpose of reserving functional interfaces or to cause the sinking of funds. To carefully examine whether the system supplier has the design experience in this industry or similar enterprises, how the system designed by the supplier is currently being used, and whether it can operate on the existing management information platform of the enterprise. Be sure to visit the supplier's previous customers. After the market and service orientation, there should be a clear investment budget. The system supplier should have a commitment to the time required for the system to be up and running from installation and commissioning. A survey shows that, even in the United States, the commissioning of the ERP system generally take about 20 months, TMS commissioning generally l0 months, the supply chain management system commissioning generally 18 months. EDI system commissioning generally take 10 months. Enterprises should anticipate the conversion of the old and new management and operation modes and their possible impact on customer service. Enterprises should be prepared for the change, especially the change of service concept and corporate culture. Consideration should be given to using a standardized bidding process. If necessary, relevant consulting firms can be engaged to help develop strategic planning and select appropriate IT system vendors.