Supply chain management is to optimize the supply chain, from purchasing the beginning, including the work processes (workflow), physical processes (physical flow), capital flow (funds flow) and information flow (information flow), are highly efficient manner. The product at a reasonable price and timely delivered to the hands of consumers. How to manage the supply chain? Different companies have different model of success. Here are a few supply chain management experiences.
Customer-centered, market demand as the driving force
Enterprises to adapt to customer demand to organize production. The beginning of the past, supply chain, driven by manufacturing sector. The first production of products, and then to the market, the consumer prior to purchase, they will not know the sales effect. In such a "push system", the inventory shortages and the risk of poor sales exist. And now, the enterprise's product design, has been offering for customers to participate, in order to make our products truly meet the needs of customers. This "pull system" in the supply chain based on consumer demand instead.
Emphasis on corporate core business and competitive
As businesses of limited resources, it is necessary in all industries and areas is very difficult to gain a competitive advantage, it must concentrate on a particular area of expertise, that is the core business, in order to accurately position in the supply chain to become a supply chain can not be substitute role.
Inter-enterprise-friendly and close cooperation between the
Supply and marketing in the past between the discrete, is a hostile relationship between competition for profits. In the supply chain management model, all links are viewed as part of a whole chain of businesses apart from their own interests, but also should join hands to pursue the overall competitiveness and profitability. Because in the end customers to choose a product, the whole supply chain benefit all members.
The use of information technology to optimize the supply chain
The flow of information previously available only by phone, fax, or even a way to meet to complete can now use the Internet, the means are different, but the content has not changed. The advantages of computer information system automation in its operations and ability to handle large amounts of data, so that the flow of information faster, while reducing errors. However, the information system is only a tool to support business processes, enterprise's own business model decision of information systems architecture model (Business drives IT).
Continuous improvement in all supply chain processes
In addition to information systems, supply chain management, but also will work processes, physical processes, financial processes and information processes integrated with an overall optimization. In the procurement, transportation, storage and sale transaction process to enhance efficiency, all aspects of the supply chain optimization. Modern logistics is to optimize the physical processes arising from an emerging industry.
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