Supply chain is not logistics. The essence of supply chain management is the integrated planning of operation, strategy and tactics. Logistics is only a part of the supply chain process. The introduction of supply chain management can be said to be the challenge of modern business philosophy to traditional business philosophy. Enterprise managers began to reduce operating costs as one of the main business strategies; In the early 1990s, both manufacturing enterprises and commercial enterprises were committed to improving the efficiency of supply chain to reduce operating costs.
Supply chain management refers to various activities and processes of planning, coordinating, operating, controlling and optimizing the whole supply chain system. Its goal is to deliver the right products that customers need to the right place at the right time, in the right quantity, in the right quality and in the right state, and to minimize the total cost. To put it simply, it is to make use of enterprise resource planning (ERP), electronic data interchange (EDI), supply chain planning (SCP) and other systems to keep the goods holdings of parts suppliers to manufacturers, wholesalers and retail stores in an "optimal" state. However, it is very difficult to maintain the best inventory or output only in one enterprise, that is, at one point in the supply chain composed of many enterprises. Taking retail stores as an example, the number of goods sold every day will change, which is influenced by factors such as changes in customer preferences, seasonal changes, holidays and peacetime changes, and competitors' situation. It's hard to predict in advance. In this way, unconsciously, retail, wholesale, production, parts production and material production have achieved their respective goals while realizing a kind of information centered on basic demand information. The most important thing is that no matter which link you belong to, you need to have a flexible attitude to adapt to the market demand. You need the energy to constantly adjust your system. How does supply chain management create wealth? The introduction of supply chain management can be said to be the challenge of modern business philosophy to traditional business philosophy. As early as18th century, Adam Smith put forward a famous formula "cost+profit = price" in The Wealth of Nations. That is, under the premise of fixed cost, the price of the product depends on the expected profit of the operation. In the past two centuries, almost all enterprises have established business processes and operated enterprises according to this formula. But after entering the 1980s, in the highly competitive market, these entrepreneurs have realized that this formula is no longer effective. In the early 1980s, Hammer changed the formula to "price-cost = profit" in his book Business Process Reengineering, that is, the customer decided how much a commodity was worth and what quality standard it should meet. Profit depends on the operator's ability to reduce costs on the premise of meeting customer's price and quality expectations. Therefore, enterprise managers began to reduce operating costs as one of the main business strategies; In the early 1990s, both manufacturing enterprises and commercial enterprises were committed to improving the efficiency of supply chain to reduce operating costs.
Supply chain management strives to continuously integrate all aspects of enterprise procurement, production and sales. Through the reconfiguration of resources and the adjustment and optimization of processes, the inventory of enterprises is minimized and all kinds of costs are minimized. At the same time, enterprises can achieve the most efficient operation, the fastest market response and the highest level of customer service. Enterprises will gain more benefits if they improve their competitiveness. When an enterprise pays close attention to customers' needs, keeps cross-company business operations synchronized, replaces assets with information, and eliminates repetitive work and redundant links, the return it gets will be the long-term profit growth and competitive advantage expected by the enterprise. What positions are involved in supply chain management?
The positions involved in supply chain management include: buyer, orderer, order manager, production planner, production supervisor, purchasing supervisor, material supervisor, customer service supervisor, ERP software practitioner, supply chain management manager, purchasing manager, production planning manager, material manager, sales backup/customer service manager, ERP software senior consultant, etc. For a large enterprise, especially the top 500 enterprises, an enterprise needs dozens of employees in related positions. Because professional supply chain management managers have the ability to save millions of costs for enterprises every year, or because efficient operation creates higher sales performance for enterprises, their annual salary is also considerable. Generally more than 200 thousand, some supply chain management directors can earn more than 500 thousand a year.
In view of the shortage of all kinds of supply chain management practitioners and supply chain managers in society, at present, china enterprise confederation, in conjunction with the American Supply Chain Management Professional Association, has launched the training and certification course of "Registered Supply Chain Manager (Advanced)". This will gradually solve the shortage of supply chain management practitioners. Because supply chain management is a relatively independent management major with a wide range of applications, it can help people who are interested in becoming supply chain management professionals to become professional managers under the global supply chain management model.