Supply chain management is a management method that manages the entire supply chain system. The implementation of supply chain management is to shorten cash turnover time, reduce risks faced by enterprises, achieve profit growth, and provide predictable income. The main content of supply chain management is divided into five parts: planning, procurement, manufacturing, distribution, and returns. In the management process, attention should be paid to emphasizing core competitiveness, external use of resources, and cooperative competition. Let's learn about what supply chain management is and what it includes.

1、 What is Supply Chain Management

Supply chain management refers to the management method of effectively organizing suppliers, manufacturers, warehouses, distribution centers, and distributors together to manufacture, transport, distribute, and sell products in order to minimize the cost of the entire supply chain system while meeting a certain level of customer service.

Supply chain management is the coordination of internal and external resources within a company to jointly meet consumer needs. When we view each link in the supply chain as a virtual enterprise alliance, and view any enterprise as a department within this virtual enterprise alliance, the internal management of the alliance is supply chain management. The composition of the alliance is dynamic and constantly changing according to market needs.

For the entire supply chain system, implementing supply chain management is mainly to shorten cash turnover time, reduce risks faced by enterprises, achieve profit growth, and provide predictable income.

2、 What does supply chain management include

The content of supply chain management mainly includes five parts:

1. Plan

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

2. Procurement

Choose suppliers who can provide goods and services for your products and services, establish a pricing, distribution, and payment process with suppliers, and create methods to monitor and improve management. Integrate the management process of goods and services provided by suppliers, including picking up, verifying delivery notes, forwarding goods to your manufacturing department, and approving payment to suppliers.

3. Manufacturing

The activities required for production, testing, packaging, and preparation for delivery are the most measured aspects of the supply chain, including quality level, product output, and worker productivity.

4. Delivery

Also known as logistics, it involves adjusting user order receipts, establishing warehouse networks, dispatching delivery personnel to pick up and deliver goods to customers, establishing a pricing system for goods, and receiving payments.

5. Returns

This is the problem handling section in the supply chain. Establish a network to receive defective and excess products returned by customers, and provide support when problems arise with customer application products.

3、 What is the core of supply chain management

1. Emphasize core competitiveness and reflect "horizontal integration". To this end, it is necessary to clearly identify the core business of the enterprise, and then focus on core resources to improve core competitiveness.

2. Outsourcing, also known as resource outsourcing, involves outsourcing non core businesses to business partners and forming strategic alliances with them.

3. Collaborative competition, where past competitors form alliances with each other, jointly develop new technologies, and share achievements; Outsource non core components previously produced by our company to suppliers, and cooperate and participate in competition together.

4. Service oriented management with customer satisfaction as the goal, for downstream enterprises, the function of upstream supply chain enterprises is not simply to provide materials, but to provide the best service at the lowest cost.

5. The integration of logistics, information flow, capital flow, etc. emphasizes that these flows must be integrated. Only by achieving integration across enterprise processes can the goal of coordinated operation of supply chain enterprises be achieved.

6. The use of information technology to achieve management goals is a prerequisite for information flow management.

7. Pay more attention to the participation of logistics enterprises, and the role of logistics is particularly important because shortening the logistics cycle is more crucial than shortening the manufacturing cycle.