Logistics management under supply chain management

Logistics management under supply chain management

Supply chain management is a new integrated management model and method, which has had a profound impact on traditional logistics management. Chinese enterprises should fully understand the new methods and new ideas of logistics management in the supply chain management environment, reintegrate corporate resources from a strategic perspective, and improve economic operation efficiency.

1. The scientific connotation of supply chain management

1. The concept of supply chain and supply chain management

The supply chain is centered around the core enterprise, through the management of logistics, The control of capital flow and information flow starts from the purchase of raw materials, made into intermediate products and final products, and finally the sales network delivers the products to consumers, connecting manufacturers, suppliers, distributors, retailers, and end users. into an overall functional network chain structure model. It is not only an information chain, material chain, and capital chain linking users and suppliers, but also a value-added chain. Materials increase value in the supply chain due to processing, packaging, transportation, etc., bringing profits to the enterprise.

Supply chain management is the management implemented based on the supply chain and is an integrated management method and idea. It implements the control functions and logistics plans from suppliers to end users in the supply chain, treating all links and enterprises in the supply chain as an indivisible whole, so that the procurement, production, sales and other functions in the supply chain develop as a unified organism. Therefore, supply chain management is a management model that connects suppliers, manufacturers, retailers, and users into an integrated management model through feedforward information flow and feedback information flow and material flow.

2. The difference between supply chain management and traditional management models

(1) Supply chain emphasizes and relies on strategic management. ?Demand and supply? are concepts shared by node enterprises in the entire supply chain. Since it determines market share and supply chain costs to some extent, it is also an important strategic concept. The basic principle of supply chain operation is strategic alliance. Therefore, supply chain management places great emphasis on strategic management.

(2) Supply chain management is integrated management. Supply chain management is a horizontally integrated integrated management model that treats all node enterprises in the supply chain as an organic whole, emphasizing the collaborative relationship between related enterprises and core enterprises, and through technology diffusion, information sharing, and resource optimization allocation. and effective supply chain incentive mechanisms to achieve operational integration.

(3) The goal of supply chain management is to improve customer value. Compared with traditional management, supply chain management's management goals are not limited to reducing transaction costs, but also increasing customer value by improving service levels. Customer value is all the benefits expected from a given service or product, including personnel value, product value, image value, etc. The driving force behind the supply chain is customer demand, which is transmitted from downstream enterprises to upstream enterprises through the supply chain. Only by producing products with higher customer value can the competitiveness of the entire supply chain be improved, thereby maintaining the operation, stability and development of the supply chain. .

2. The intrinsic relationship between logistics management and supply chain management

1. The status of logistics management in supply chain management

Logistics management has a broad sense and In a narrow sense, logistics management in the narrow sense refers to the transportation, procurement, distribution, warehousing and other activities of materials. It is a material circulation activity between enterprises; in the broad sense, logistics management also includes the material transformation process in the production process. Based on the generalized logistics management, supply chain management is regarded as logistics management. Although the two are similar, there are obvious differences in management perspective, management scope, and internal relationships of the organization. Therefore, supply chain management originates from logistics management, which is an important part of supply chain management. Whether supply chain management can be effective depends on the management and operation of logistics operations such as transportation, procurement, distribution, and warehousing. Logistics management is the foundation and prerequisite for supply chain management to achieve overall effectiveness.

2. Supply chain management is the development extension of logistics management

Supply chain management originated from logistics management, but it transcends logistics management and is an integrated and expanded logistics management. Traditional logistics management is mainly limited to one enterprise, which greatly restricts the overall efficiency of logistics as a system. Supply chain management is to consider the coordination, coherence, and unification of various logistics links from the perspective of the entire logistics process, and to centralize the separated logistics activities for unified coordination and management. It is to treat each enterprise in the supply chain as an indivisible whole, coordinate the functions of each link in the supply chain, and make them into a unified organism.

3. Logistics management in the supply chain management environment

1. The goals and functions of logistics management in supply chain management. (1) The goals of logistics management in supply chain management. The goal of logistics management in the context of supply chain management is to deliver the right product at the right time and place. This goal requires that logistics management must solve three problems: reducing the inventory level of the entire supply chain, service level efficiency level and demand' product level efficiency level. (2) The function of logistics management in supply chain management. ①Ordering process management. Including order contract management, supplier management and purchase order management. Through supplier management, enterprises can use distribution documents to plan the entire replenishment network and automatically issue order orders to suppliers; through contract management, establish long-term contacts between both parties; through purchase order management, check the order quantity and timely process the accepted orders. Pay for the goods and gain full trust from suppliers. ②Inventory management. Inventory management is to shorten the ordering-transportation-payment cycle through inventory management, reduce the level of inventory management, accelerate inventory turnover, eliminate the occurrence of out-of-stock events, and is conducive to the coordinated operation of the entire supply chain.

2. Case Analysis

The American retail giant-Walmart has adopted fast and effective modern supply chain management very early. Through effective regulation of logistics, information flow, and capital flow, Use advanced equipment and technology to connect distributors, suppliers, and retailers into an overall network chain structure for effective coordination and management. Currently, more than 85% of Wal-Mart's products are supplied by the company's distribution centers, while its competitors only reach the 50% level. Thanks to modern supply chain management, Wal-Mart's distribution costs dropped to 3% of sales in 2009, while its competitors' costs were as high as 6%. Wal-Mart uses advanced logistics technology in supply chain management, which not only maximizes profits for the company, but also provides customers with excellent services and products, achieving the ultimate goal of supply chain management. ;