Supply chain management (SCM) refers to a management method that effectively organizes suppliers, manufacturers, warehouses, distribution centers and distributors to manufacture, transfer, distribute and sell products under the condition of meeting a certain level of customer service, so as to minimize the cost of the whole supply chain system. Supply chain management includes five basic contents: planning, purchasing, manufacturing, distribution and return.
Planning: This is a strategic part of supply chain management. You need to have a strategy to manage all resources to meet the needs of customers for your products. A good plan is to establish a series of methods to monitor the supply chain, so that it can effectively provide customers with high-quality and high-value products or services at low cost.
Procurement: Select suppliers who can provide goods and services for your products and services, establish a set of pricing, distribution and payment processes with suppliers and create methods for monitoring and improving management, and combine the management processes of goods and services provided by suppliers, including picking up goods, verifying lists, forwarding goods to your manufacturing department and approving payment to suppliers.
Manufacturing: arranging the activities required for production, testing, packaging and preparation for delivery, which is the most important part of the supply chain, including the measurement of quality level, product output and worker productivity.
Distribution: Many "people in the industry" call it "logistics", which is to adjust users' orders to receive goods, establish a warehouse network, send delivery personnel to pick up goods at home, deliver them to customers, establish a commodity pricing system and collect payment.
Return: This is the problem handling part in the supply chain. Establish a network to receive defective products and surplus products returned by customers, and provide support when customers have problems with their application products.
Modern business environment has brought great pressure to enterprises, not only to sell products, but also to provide satisfactory services to customers and consumers, thus improving customer satisfaction and making customers feel happy. Kotler said: "The customer is God. Without them, enterprises can't survive. All plans must focus on retaining customers and satisfying them. " In order to win customers in domestic and foreign markets, supply chain enterprises must respond to customer needs quickly, agilely, flexibly and cooperatively. Facing the changeable supply chain environment, building a happy supply chain has become the development trend of modern enterprises.
[Edit] Supply chain management method
The production of supply chain management theory lags far behind specific technologies and methods. Supply chain management initially appeared in some specific ways.
Common supply chain management methods:
fast reaction
Quick response (QR) means that in the face of a multi-variety and small-batch buyer's market, logistics enterprises have prepared all kinds of "elements" instead of "products", and can extract "elements" at the fastest speed when users make requests, and "assemble" them in time to provide the required services or products. QR is a supply chain management method developed by American textile and garment industry.
Effective customer response (ECR)
Effective customer response (ECR) is short for effective customer response. It is a supply chain management strategy developed by 1992 from American grocery industry. It is also a supply chain management solution composed of manufacturers, wholesalers, retailers and other supply chain members, and all parties coordinate and cooperate to meet the needs of consumers better, faster and at lower cost. Effective customer response is a supply chain management strategy, which is based on the principle of meeting customer requirements and minimizing the cost of logistics process, and can make accurate response in time to optimize commodity supply or service process.
Comparison between ECR and QR
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[edit]
(A) the difference between QR and ECR
ECR is mainly aimed at the food industry, and its main goal is to reduce the cost of each link in the supply chain and improve efficiency.
QR is mainly aimed at general commodities and textile industry, and its main goal is to quickly respond to customer demand and replenish goods quickly.
This is because the product characteristics of the non-staple food industry and the textile and garment industry are different: the products operated by the non-staple food industry are mostly functional products, and the life cycle of each product is relatively long (except fresh food), so the loss of ordering too much (or too little) is relatively small.
The products operated by the textile and garment industry are mostly innovative products, and the life span of each product is relatively short. So the loss caused by too many points (or too few points) is relatively large.
(l) Different emphasis.
QR focuses on shortening the delivery lead time and responding to customer demand quickly; ECR is committed to reducing and eliminating the waste of supply chain and improving the effectiveness of supply chain operation.
(2) differences in management methods.
QR mainly relies on information technology, through joint product development, to achieve rapid upgrading and shorten the time to market; In addition to launching new products quickly and effectively, ECR also implements effective commodity management to effectively promote scrolling.
(3) The applicable industries are different
QR is suitable for industries with high unit value, strong seasonality, poor substitutability and low purchase frequency; ECR is suitable for industries with low product unit value, high inventory turnover rate, low gross profit, strong substitutability and high purchasing frequency.
(4) The emphasis of reform is different.
The focus of QR reform is the speed of replenishment and ordering, with the aim of eliminating the shortage to the greatest extent and purchasing only when goods are needed. The focus of ECR reform is efficiency and cost.
(B) * * * has characteristics.
It is manifested in transcending the boundaries between enterprises and pursuing logistics efficiency through cooperation. Specific performance in the following three aspects:
1. Sharing business information among trading partners
2. Commodity suppliers further set foot in the retail industry and provide high-quality logistics services.
3. The ordering and delivery business between enterprises are carried out through EDI, which realizes the paperless transmission of ordering data or delivery data.