SCM is about supply management, SCM and VCM
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Misunderstanding: SCM is the company the only requirement to gain a competitive edge
This is clearly wrong, in order to be truly competitive, companies need a strong business vision, a clear definition of the mission, product marketing plans, well-planned strategies (such as supply chain strategy and the "waterfall" operation strategy).
Mistakes: SCM is about supply management
Supply Management is only on procurement and supplier management. SCM is about from raw materials to final consumption of the entire end to end flow, as well as the integration of supply and demand.
Myth: No Value Chain Management Supply Chain (VCM) important
Value chain management from the perspective of the value added to examine the supply chain. Obviously this is a very important perspective. However, there is no concern of SCM for integrated collaborative, value chain analysis may lack the necessary structural and can not achieve the ultimate goal failed. In effect, SCM and VCM complement each other.
Misunderstanding: SCM is a cluster of suppliers
This view is only correct to a certain point. If the "cluster" refers to a group of companies working together toward common goals, supply chain partners, of course, the level of value-added supplier cluster. However, SCM on the cluster more than the traditional definition of restrictions on the traditional view of enterprises in the same industry or physical location. If the chain each supplier to increase the overall value of the network cluster, then the further development of the supply chain clusters will lead to the end customer more profitable.
Misunderstanding: SCM is equivalent to achieving ERP
Focus on end to end supply chain integration. However, ERP applications integrate all concerned about the deal and become an enterprise-wide system. Thus, ERP attention to the internal channel integration, and provide enterprise-wide management information needed for decision support. In fact a lot of ERP implementation can not support the point processes and integrated supply chain, because they lack a well-defined beginning, the operation improve the planning.
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