How to improve the performance of supply chain by means of responsiveness and efficiency must start with the driving factors that affect the performance of supply chain, including facilities, inventory, transportation, information, procurement and pricing strategies, which affect and interact with each other. So, here is the driving point of supply chain management that I sorted out for you. Welcome to read and browse.

Drive 1: facilities

Supply chain is a network composed of nodes and lines, and nodes are facilities in the supply chain network, that is, places where products are produced, processed, stored and assembled. The function, location, capacity and flexibility of facilities have great influence on the performance of supply chain. For example, a tire company located its warehouse near the automobile assembly center, although this reduced efficiency;

Or, Suning Appliance will concentrate its inventory in the distribution center DC, although this will reduce its responsiveness. The key to facility management lies in the following aspects.

Functional localization

For production facilities, enterprises must decide whether they are flexible or dedicated, or a combination of the two. Flexible production capacity may be used for multi-variety production, but it is often inefficient, while dedicated production capacity can be used for mass production of few varieties, but its reaction ability is weak. Secondly, enterprises must decide the functional orientation of facility layout, such as product-centered or processing-centered.

Finally, for warehouse or DC, enterprises must decide whether it is a cross-warehouse facility or a storage transit facility. The hub design is different in different modes.