On Supply Chain Management —— Supply Chain Management
Starting from the selection of supply chain partners, this paper probes into the strategies and methods of supply inventory management and supply chain cost management, and expounds the necessary conditions for the effective management of supply chain by information technology.
Keywords: supply chain management, inventory management, cost management and instant purchasing
1 Partner selection in supply chain
The core of supply chain management is to build a flexible and effective supply chain to achieve a win-win situation for logistics enterprises and suppliers. The most important thing is that logistics enterprises should find long-term cooperation partners. Because an ideal supplier can not only help logistics enterprises reduce material costs, procurement costs, transportation costs, production costs and inventory costs, but also reduce the time for products to reach the market, improve product quality and increase customer satisfaction.
2 supply chain inventory management
Vendor managed inventory (VMI) system refers to the supplier's strategy of managing the customer's inventory with the permission of the customer. The supplier decides the inventory level of each product and maintains these inventory levels. In the case of VMI, although the retailer's inventory decision is dominated by the supplier, other decisions are still dominated by the retailer himself.
The research shows that VMI, as a supply chain inventory management method based on retailer-supplier partnership, can not only reduce the inventory level and cost of supply chain, but also provide customers with a higher level of service, accelerate the turnover of funds and materials, so that both supply and demand can benefit from it and achieve a win-win situation. Its characteristics are: on the one hand, information sharing, retailers help suppliers make plans more effectively, and suppliers get sales activities from retailers; On the other hand, the supplier completely manages and owns the inventory until the retailer sells it, but the retailer has the obligation to keep the inventory and be responsible for the damage of the inventory items.
Joint inventory management is a risk-sharing inventory management model. It emphasizes that both parties should make an inventory control plan to make inventory management a link and bridge between supply and demand.
In short, the implementation of joint inventory management and the construction of an integrated logistics system can not only make the inventory of dealers lower, but also make the inventory of the whole supply chain lower, and can also respond to customer needs quickly and transport goods more effectively. This is because dealers are closer to customers than manufacturers, can respond to customer requirements better and faster, and arrange financing for purchased products and provide good after-sales service, so that manufacturers can concentrate on production and improve product quality.
3 supply chain cost management
Under the supply chain management mode, the competition of logistics enterprises is no longer the competition between individual enterprises, but the competition between supply chains where enterprises are located. Because the characteristics of supply chain cost flow will directly affect the profitability of supply chain management, the most competitive supply chain should not only provide the best service, but also make products enter the market at the most reasonable cost. Supply chain cost management is an effective measure for logistics enterprises to reduce operating costs, improve responsiveness and improve service quality by integrating external resources.
Obviously, by implementing supply chain cost management, logistics enterprises can effectively reduce unnecessary duplication of work among members and establish electronic data exchange systems. This can reduce inventory and capital occupation, and greatly reduce inventory costs. Moreover, the supply chain has become the fastest and most agile circulation channel through the optimal combination of logistics enterprises. It removes unnecessary intermediate links, effectively reduces the circulation cost, and makes the process of supply chain simple, efficient and low-cost.
4 information technology: a necessary condition for effective supply chain management
4. 1 information technology is a powerful guarantee for supply chain management.
The world has entered an era of knowledge and information characterized by computers and information. In order to gain a more favorable competitive position in the market, logistics enterprises must attach great importance to the great role of information in logistics production and operation. Logistics enterprise is an organic structure of multi-level system. In order to achieve the goal of logistics development, logistics enterprises must coordinate the economic behaviors of different levels through continuous information transmission, on the one hand, the vertical transmission of information from higher and lower levels, on the other hand, the horizontal transmission of information to coordinate the economic behaviors of various departments and posts, and deal with the complex relationship between people, finance, goods and production, supply and sales through information technology. Especially in today's knowledge-based information society composed of network information systems, logistics enterprises need to capture the most value-creating business methods, methods and technologies through the network and create a networked logistics operation mode.
4.2 Reduce the demand amplification effect through information * * *
An effective way to reduce the demand amplification effect is to provide all the information about the customer's actual demand for each member enterprise in the supply chain, so that each member of the supply chain can make a more accurate forecast by using the customer's actual demand data, not just according to the orders issued by the neighboring downstream enterprises.
4.3 Improve production planning and control through information integration
With the help of information technology, supply chain member enterprises can transmit production plans and real-time production progress information to all partners, thus improving the planning and control of logistics production.
Obviously, by sharing the information of supply chain partners, upstream enterprises in the supply chain can clearly understand the production and allocation of materials by downstream enterprises and realize timely supply; Downstream enterprises can avoid unnecessary inventory and flexibly adjust production plans.
In short, by enjoying information in time, all links in the supply chain can be closely linked, thus avoiding the phenomenon of supply and demand disconnection in the supply chain and ensuring the overall interests of the supply chain.
4.4 Realize on-time procurement through information integration
In order to realize on-time purchase, both the supplier and the buyer must operate synchronously around the order. When the purchasing department generates the order, the supplier should start to prepare the materials. At the same time, the purchasing department should prepare a detailed purchasing plan, and the manufacturing department of the other party should also start the production preparation. In this way, once the purchasing department provides a detailed purchase order to the supplier, the supplier can quickly organize production. When customer demand changes, purchase orders drive manufacturing orders to change, which is a rapid change process.
Because the main job of purchasing department is to communicate the relationship between supply and manufacturing departments, so that the supply chain system can respond to customers' needs on time, thus reducing inventory costs and improving the speed of logistics and inventory turnover, this just-in-time order-driven way greatly simplifies the procurement workflow.
References:
1 Lu Yanming. New Trend of Supply Chain Management J Innovative Logistics, 2008(3).
2 Gao, Mu Chao. Supply chain management m Shenzhen: Haitian Press, 2004.
3 Qin Xiaoyan. Ways to reduce the cost of inventory holding and logistics management in China J Chinese and foreign logistics, 2006(8).
4 Zhang Changqing. Research on Enterprise Logistics Cost Management in Purchasing Supply Chain J Journal of Heilongjiang Bayi Agricultural University, 2008( 1)
5 (UK) martin christopher. Logistics and supply chain management m. Beijing: Electronic Industry Press, 2006.
Author: Ji Yang (1977), female, Han nationality, School of Management, Jilin Jianzhu University, research direction: logistics and supply chain management.
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