Implementation of the hottest supply chain managem

2022-08-16
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The implementation of supply chain management

modern business activities are undoubtedly complex, and the success or failure of enterprises does not just depend on themselves. Therefore, it is necessary to closely contact upstream and downstream manufacturers to achieve the situation of "unity as one person". For SCM, enterprise managers are undoubtedly eager, but there are also some doubts. This article aims at their doubts and comprehensively analyzes SCM

before the advent of the Internet, people obsessed with supply chain just wanted to improve their ability to predict customer needs and make their own supply chain run more smoothly. However, the low-cost and inevitable characteristics of the Internet, coupled with simple and universal communication standards, have suddenly broadened the development space of SCM (Supply Chain Management). Why is B2B developing so rapidly? Just because there is such an idea: every company that does business with you can connect and enter a collaborative and happy family

what is SCM

SCM (Supply Chain Management) is a combination of art and science that enables enterprises to better purchase raw materials, produce products and services required for manufacturing products and services, and deliver them to customers. Supply chain management includes five basic contents

plan: This is a strategic part of SCM. You need to have a strategy to manage all resources to meet customers' needs for your products. A good plan is to establish a series of methods to monitor the supply chain, so that it can effectively and cost effectively deliver high-quality and high-value products or services to customers

purchase: select suppliers who can provide goods and services for your products and services, establish a set of pricing, distribution and payment processes with suppliers, create methods to monitor and improve management, and combine the management processes of goods and services provided by suppliers, including picking up goods, verifying bills, transferring goods to your manufacturing department and approving payment to suppliers

manufacturing: the activities required for arranging production, testing, packaging and preparing for delivery are the most measured parts in the supply chain, including the measurement of quality level, product output and workers' production efficiency

distribution: many "insiders" call it "logistics", which is to adjust users' order receipts, establish a warehouse network, send delivery personnel to pick up and deliver goods to customers, establish a commodity pricing system, and receive payment

return: This is the problem handling part of the supply chain. Establish a network to receive defective and redundant products returned by customers, and provide support in case of problems with customers' application products

What does SCM do

supply chain management software is probably the most fragmented software combination of all software. Each of the five parts mentioned above is composed of many specific businesses, and many businesses have their own applicable software. Many large vendors have tried to put different software packages together, but no one has succeeded. It's sometimes like a nightmare to integrate different software parts. Perhaps the best way is to divide supply chain software into two categories: SCP (Supply Chain Planning) and SCE (supply chain execution)

scp software uses magical mathematical operations to help improve the flow and efficiency of the supply chain and reduce inventory. The accuracy of SCP depends entirely on information. As a manufacturer of consumer goods, if you can't get accurate and up-to-date customer order information from retailers, sales data, production capacity and distribution capacity data from retail stores, don't expect your planning application software to be accurate. For the above five parts, the corresponding planning application software can be found in each part. It is reasonable to believe that the most valuable (and the most complex and error prone) is the demand plan, which determines how many products you need to manufacture to meet the needs of different customers

SCE software is used to automate all parts of the supply chain. They can be as simple as sending electronic orders from manufacturing plants to suppliers in order to obtain raw materials

do you need to install ERP before SCM

this is a controversial topic. If you plan to install SCP, you may need to have ERP first, because SCP depends on the data stored in ERP software. Theoretically, you can combine the information of existing systems (for most enterprises, this refers to the ubiquitous excel tabulation software). However, if we try to make the information in all fields of the enterprise flow quickly and reliably, the result may not be so pleasant. ERP can integrate all information into one, which is very beneficial to SCP, because it can obtain the latest information from a major information source. Most CIOs who have installed SCP systems say they are happy to have installed ERP in advance. They say that ERP project is a process of "sorting out information base". Of course, building ERP is expensive and difficult, so you need to study how to provide the information required by SCP without ERP

sce application software is not so dependent on the collection of enterprise information, so it is basically independent of ERP. But sometimes, you need to connect SCE and ERP in some way. It is important to pay attention to the integration of SCE software with Internet, ERP or SCP, because the Internet will increase the demand for integrated information. For example, if you want to establish a private station to communicate with your customers and suppliers, you need to extract information from SCE, SCP and ERP to show the latest information about orders, payments, production status and distribution

what is supply chain collaboration

let's take consumer goods as an example to illustrate collaboration. If it is two companies that make the word "supply chain" well known, they are Wal Mart and P & G. In the 1980s, before the two companies began to cooperate, retailers and manufacturers shared little information. However, the two giants have established a software system to connect the distribution centers of P & G and Wal Mart without degrading stability. When the number of P & G products in the distribution center decreases, the system will automatically send a warning message asking P & G to send more goods. It can be said that this system goes deep into every supermarket of Wal Mart, so that when any P & G product passes through the cashier scanner, P & G can monitor the shelves through satellite signals

with this timely information, P & G will know when the professional testing machine manufacturer of Jinan new era Gold Testing Instrument Co., Ltd. will test the tension, pressure, displacement of precision springs such as tension springs, compression springs, disc springs, tower springs, leaf springs, snap springs, leaf springs, composite springs, gas springs, mold springs, heterosexual springs according to the technical requirements specified in the national spring tension and compression testing machine standard The physical properties of stiffness are tested and analyzed. It is necessary to produce, deliver and place more products in Wal Mart stores, instead of piling up a lot of products in the warehouse and waiting for Wal Mart to fight. In addition, the cashier and payment are also automatic. This system has saved P & G a lot of time, reduced inventory and reduced order processing costs, so that P & G is willing to give Wal Mart "different low final prices every day" without losing money

what are the obstacles to installing SCM

gain the trust of partners

supply chain automation is particularly difficult to achieve because its complexity is beyond your company. Your employees need to change their working methods, and the employees of suppliers who join the network are no exception. Only the largest and most powerful manufacturers can push suppliers to make such drastic changes. Most companies have to sell their systems to external partners. In addition, the purpose of your system may at least be a threat to these suppliers. For example, the cooperation between Wal Mart and P & G means that P & G will undertake more inventory management, which was previously undertaken by retailers. Wal Mart certainly has the strength to make such a request to P & G, but it also gives P & G a return: P & G can better understand Wal Mart's product needs, so as to manufacture products more effectively. Therefore, in order for your supply chain partners to agree to cooperate, you must be willing to make concessions and help them achieve their own goals

internal resistance to change

if it is not easy to sell the supply chain system externally, it is not much better to promote it internally. Business personnel have been used to processing, faxing and black and white business, and will tend to maintain the status quo. If you can't convince people that using these software is worth it for them, they can easily find an excuse to deal with it. You can't cut off electricity just because you have supply chain software. Reliable stability is mainly reflected in words and faxes

there are always many mistakes at the beginning

it always takes effort to make employees accept supply chain software. The new supply chain system processes data according to the program design, but it is impossible for the system to know the history and process of a company within a few months after installation. Forecasters and planners must understand that the data they get from the system at the beginning is moisture. If no one warned him that the system was "naive" at first? They will also think that the system is useless. Suppose that a manufacturer enters a rare large order before a large automotive supplier installs a new supply chain module to predict product demand. This system will predict a huge demand because of a special order. If you blindly follow the data of the system, you may send inaccurate orders to suppliers. Only when forecasters lose the system data and use their own predicted data can enterprises avoid this problem

this leads to another problem: forecasters no longer believe in the system, but do it completely according to their own data. Suppliers have to make careful adjustments to the system themselves, and then rebuild the confidence of employees. Once employees know that their professional skills can help improve the accuracy of the system, they will accept and use the new technology

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