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Supply chain management paper
Supply chain management is both a new management mode and a new management theory. Looking at the research situation of supply chain management in China in recent years, we can see that in view of the problems encountered in the practice of supply chain management, multidisciplinary theoretical knowledge is widely used to study the specific methods and means of supply chain management, supply chain management support technology and local optimization technology, while systematic research on supply chain management ideas and basic management theories is less. The author thinks that the concept of supply chain management should be expanded, including at least the following meanings: supply chain management is a management theory based on lateral thinking; Supply chain management is a horizontal integrated management model; Supply chain management is a complex system engineering; Supply chain management is a new frontier management discipline. Supply chain management contains rich management ideas and profound philosophies different from traditional management, which are worthy of in-depth analysis and research. Moreover, the research and application of management methods, means and technologies should be based on correct management theory and guided by supply chain management principles. In view of this, this paper analyzes the idea of supply chain management and puts forward eight management principles of supply chain management. Two, the eight management principles of supply chain management 1. The principle of horizontal integration of resources reveals a new idea under the new economic situation. This principle holds that with the rapid development of economic globalization today, enterprises can no longer meet the requirements of the rapidly changing market by relying only on the original management model and their own limited resources. Enterprises must abandon the traditional management mode based on vertical thinking and turn to a new management mode based on horizontal thinking. Enterprises must horizontally integrate the resources of external related enterprises, form a strategic alliance of "strong alliance and complementary advantages", and form the same interest subject to participate in market competition, so as to improve service quality, reduce costs, quickly respond to customer needs and give customers more choices. Different ways of thinking correspond to different management modes and enterprise development strategies. Vertical thinking corresponds to the management mode of "vertical integration", and the development strategy of enterprises is vertical expansion; Horizontal thinking corresponds to the management mode of "horizontal integration", and the development strategy of enterprises is horizontal alliance. This principle emphasizes the horizontal integration of superior resources, that is, each node enterprise in the supply chain participates in the resource integration of the supply chain with its resources that can produce competitive advantages, and participates in the overall operation of the supply chain with the completion of its superior business. This principle is one of the most basic principles of supply chain system management, which embodies the great changes of people's thinking mode. 2. System principle The system principle holds that the supply chain is a system, an organic whole with specific functions, and consists of several interacting and interdependent components. Supply chain is a functional network chain structure mode that connects suppliers, manufacturers, distributors, retailers and end users into a whole by controlling the information flow, logistics and capital flow around core enterprises. The system characteristics of the supply chain are first reflected in its overall function, which is a specific function that any supply chain member enterprise does not have, and it is a functional integration among supply chain partners, rather than a simple superposition. The overall function of the supply chain system is embodied in the comprehensive competitiveness of the supply chain, which is not available to any single supply chain member enterprise. Secondly, it is reflected in the purpose of the supply chain system. Supply chain system has a clear purpose, that is, to provide users with the most satisfactory products and services at the lowest cost, the fastest speed and the best quality in a complex and changeable competitive environment, and to win the market by continuously improving users' satisfaction. This goal is also the common goal of all members of the supply chain. Third, it is reflected in the close relationship between supply chain partners, which is based on the partnership with consistent interests. The realization of the purpose of supply chain system will benefit not only an enterprise, but an enterprise group. Therefore, all member enterprises have the systematic concept that local interests are subordinate to the overall interests. Fourth, it is reflected in the environmental adaptability of the supply chain system. Today, with the rapid development of economic globalization, enterprises are facing a rapidly changing buyer's market, which requires enterprises to respond quickly to the changing market and constantly develop customized "personalized products" to occupy the market and win the competition. The new supply chain (different from the traditional local supply chain) and supply chain management are produced to adapt to this new competitive environment. Fifth, reflected in the level of supply chain system, each member enterprise of supply chain is a system and a part of supply chain system; The supply chain is a system and a part of the larger system to which it belongs. From the system level, compared with the traditional management mode based on a single enterprise, supply chain management is a management mode for a larger system (enterprise group). 3. The principle of win-win reciprocity The principle of win-win reciprocity holds that the supply chain is an interest body formed by related enterprises to adapt to the new competitive environment, and its close cooperation is based on the same interests, and supply chain members seek a win-win goal through negotiation mechanism. Supply chain management has changed the competition mode of enterprises, and changed the competition between enterprises into the competition between supply chains. It emphasizes that core enterprises can establish strategic partnerships with upstream and downstream enterprises in the supply chain, so that enterprises can give full play to their own advantages and achieve win-win and mutual benefit in the value-added chain. Supply chain management embodies the idea of win-win and mutual benefit in many aspects. For example, the "demand amplification effect" in the supply chain makes the demand information obtained by upstream enterprises deviate greatly from the customer demand information in the actual consumer market, and upstream enterprises have to maintain a higher inventory level than downstream enterprises. Demand amplification effect is the result of distorted demand information. The phenomenon of high inventory among supply chain enterprises will bring many problems to the system operation of supply chain, which does not conform to the principle of overall optimization of supply chain system. In order to solve this problem, in recent years, a new supply chain inventory management method-Vendor Managed User Inventory (VMI) has appeared abroad. This inventory management strategy breaks the traditional scattered inventory management mode and embodies the integrated management idea of supply chain. Thus, the overall inventory cost of the supply chain is reduced, the overall efficiency of the supply chain is improved, and the win-win and mutual benefit between supply chain cooperative enterprises is realized. For another example, the traditional supply-demand relationship between enterprises in the adjacent nodes of the supply chain is a price-driven competition relationship, but in the supply chain management environment, it is a win-win relationship. 4. The principle of cooperation * * * The principle of cooperation * * has two meanings, one is cooperation and the other is * * * enjoyment. According to the principle of cooperation, because any enterprise's resources are limited, it is impossible to gain a competitive advantage in all business fields. Therefore, if an enterprise wants to win in the competition, it must concentrate its limited resources on its core business. At the same time, enterprises must establish close strategic cooperative relations with related enterprises with a certain competitive advantage on a global scale, hand over non-core businesses in their own enterprises to cooperative enterprises, give play to their unique competitive advantages, and thus improve the overall competitiveness of the supply chain system. According to the principle of * * *, the implementation of supply chain cooperation means the enjoyment of management ideas and methods, resources, market opportunities, information, advanced technology and risks. Information sharing is the basis of supply chain management, and accurate and reliable information can help enterprises make correct decisions. The coordinated operation of supply chain is based on the high-quality information transmission and sharing of each node enterprise. The application of information technology effectively promotes the development of supply chain management, which can save time, improve the accuracy of enterprise information exchange and reduce human errors in complex and repetitive work, thus reducing the time waste and economic losses caused by errors and improving the operational efficiency of supply chain management. * * * The increase of information enjoyment is very important for supply chain management. Because information can be shared, enterprises at any node in the supply chain can grasp the market demand information and the operation of the whole supply chain in time, and the logistics information of each link can be transparently communicated and shared with other links, thus avoiding the distortion of demand information and eliminating the distortion and amplification effect of demand information. 5. Demand-driven principle Demand-driven principle holds that the formation, existence and reconstruction of supply chain are all based on certain market demand, and in the operation process of supply chain, user demand is the driving source of supply chain information flow, product/service flow and capital flow operation. In the mode of supply chain management, the operation of the supply chain is order-driven, which generates commodity purchase orders driven by user demand orders, and then commodity purchase orders drive product manufacturing orders, and then raw material (parts) purchase orders drive suppliers. This step-by-step order-driven mode enables the supply chain system to respond to users' needs on time, thus reducing inventory costs and improving logistics speed and inventory turnover rate. The supply chain operation mode based on demand-driven principle is a reverse pull operation mode, which is essentially different from the traditional push operation mode. The push operation mode takes the manufacturer as the center and the driving force comes from the manufacturer, while the pull operation mode takes the user as the center and the driving force comes from the end users. Two different operating modes are suitable for different market environments and have different operating effects. Different operating modes embody different management concepts. The change from push operation mode to pull operation mode reflects the great changes of enterprise environment and managers' ideological understanding, and reflects the change of management concept from "production-centered" to "customer-centered". 6. The principle of rapid response The principle of rapid response holds that under the background of global economic integration, with the increasing market competition, the pace of economic activities is getting faster and faster, and users' requirements for time are getting higher and higher. Users not only require enterprises to deliver goods on time, but also require shorter and shorter delivery time. Therefore, enterprises must be able to quickly respond to the rapidly changing market, have strong product development capabilities and the ability to quickly organize product production, and constantly develop customized "personalized products" to meet the diverse needs of users in order to occupy the market and win the competition. In the current market environment, everything requires quick response to users' needs, and to achieve this goal, it is not enough to rely solely on the efforts of one enterprise. Supply chain has the ability to respond to the market flexibly and quickly. Through the rapid combination of business processes of enterprises at all nodes, the response speed to changes in user needs can be accelerated. Supply chain management emphasizes punctuality, that is, just-in-time procurement, just-in-time production and just-in-time delivery, emphasizes that the selection of suppliers should be few and precise, and emphasizes the application of information technology. These all reflect the concept of responding quickly to users' needs. 7. Synchronous operation principle Synchronous operation principle holds that the supply chain is a functional network composed of different enterprises, and there are many types of cooperative relationships among its member enterprises. The performance of the supply chain system depends on whether the supply chain partnership is harmonious, and only a harmonious and coordinated relationship can play its best role. The key of supply chain management lies in the alliance and cooperation between enterprises in the supply chain and their good coordination in all aspects. The synchronous operation of the supply chain requires all the members of the supply chain to solve the problem of production synchronization through synchronous production planning. Only when all the member enterprises of the supply chain and all the departments within the enterprise keep in step can the synchronous operation of the supply chain be realized. Just-in-time production system in supply chain requires upstream enterprises to provide necessary raw materials (spare parts) for downstream enterprises on time. If any enterprise in the supply chain can't deliver the goods on time, it will lead to the instability or interruption of the supply chain system, which will lead to the decline of the responsiveness of the supply chain system to users. Therefore, it is very important to maintain the consistency of production rhythm among supply chain members. Coordination is one of the core contents of supply chain management. Accurate and smooth information is the key to realize the synchronous operation of supply chain system. In order to realize the synchronous operation of the supply chain system, it is necessary to establish a coordination mechanism of the supply chain, so that information can be transmitted smoothly in the supply chain, thereby reducing overproduction and excessive inventory caused by information distortion, keeping the operation of the whole supply chain system in sync with the needs of customers and responding to changes in market demand. 8. The principle of dynamic reconfiguration The principle of dynamic reconfiguration holds that the supply chain is dynamic and reconfigurable. Supply chain is formed in a certain period of time, aiming at certain market opportunities and in order to meet certain market demand, and has a certain life cycle. When the market environment and users' needs change greatly, the supply chain around the core enterprises must be able to respond quickly and reconstruct dynamically. Market opportunity, partner selection, core resource integration, business process reengineering and agility are the main factors of dynamic reconfiguration of supply chain. From the development trend, the establishment of virtual enterprise based on supply chain will be the core content of dynamic and rapid reconstruction of supply chain.