What are the key points of supply chain management?

Supply Chain Management (SCM for short): refers to the order to ensure that a certain level of customer service is met. A management method that minimizes the cost of the entire supply chain system and effectively organizes suppliers, manufacturers, warehouses, distribution centers and channel providers to carry out product manufacturing, transshipment, distribution and sales. Supply chain management includes five basic contents: planning, procurement, manufacturing, distribution, and returns. Below is the content about supply chain management that I have compiled for you. Welcome to read! If you want to know more, please follow the forum!

1. Selection of supply chain members

Main factors that suppliers should consider: price, quality, service (delivery on-time, lead time, batch size), inventory policy, flexibility, and cost composition analysis. Selection of supply chain sales channels: sales scope and scale, downline customer scale, forecasting capabilities, advertising, market share, complaint handling capabilities, channel-related positions, information technology, and good market reputation.

2. Information sharing among supply chain members

In the information sharing among supply chain members, management mainly solves the problem of sharing with whom, What to enjoy and how to enjoy it.

3. Distribution of interests among supply chain members

In supply chain management, it is necessary to distinguish interests and mainly follow some principles: adhere to the balance between risks and interests, adhere to reasonable personal interests, adhere to More work, more gain, the overall law of the supply chain (suppliers gain profits < manufacturers gain profits < distributors gain profits < retailers gain profits), supply chain benefits are distributed to entities with core resources, and benefits are distributed to those with core competitiveness principles of enterprise allocation and other matters.

4. Supply chain risk taking and management

In the process of supply chain operation, risk management should be strengthened and the responsibilities of members should be divided. In risk management, establish a good risk management process: risk identification, risk measurement, risk control, risk management implementation and evaluation. Use some methods for control and management: use futures and options, make complete contracts, establish a good profit distribution mechanism, establish strategic partnerships, strengthen information exchange and sharing, optimize the decision-making process, and strengthen the supervision of supply chain enterprises. Incentives, flexible design, daily management of risks, establishment of emergency response mechanisms, etc.

5. Supply chain integration and supply chain coordination

Supply chain integration is the degree of strategic cooperation between an enterprise and its supply chain partners. By coordinating and managing business processes within and between organizations, we achieve effective and efficient management of the following flows: logistics, information flow (information flow), capital flow, value flow and business flow. Objective: to achieve low cost and high speed provide maximum value to customers. Mainly divided into internal integration and external integration. Supply chain coordination is the application of process management methods in the enterprise's decision-making and planning system to produce an effective management mechanism that coordinates marketing, sales, production, procurement, and logistics. At the same time, timely and reasonable adjustments are made to market goals, financial goals, inventory goals, service goals and production goals through rolling and integrated planning methods, thereby improving the overall operational efficiency of the enterprise. Supply chain coordination includes production plan coordination, logistics coordination, price coordination, sales coordination, etc.

6. Supply chain cost control

Costs at three levels of the supply chain: direct cost (referring to the cost incurred by producing each unit of product, including raw materials, parts, labor and Machine costs, etc. These costs are mainly determined by the prices of raw materials and labor), operating costs (referring to the costs incurred in managing the production and delivery of products, these costs arise due to the company's organizational structure), transaction costs (including processing all costs incurred for supplier and customer information and communication).

7. Supply chain contract management

Supply chain contract refers to the relevant clauses that ensure coordination between buyers and sellers and optimize sales channel performance by providing appropriate information and incentives. The contracts of the supply chain mainly include: pricing decision-making contract, ordering decision-making contract, incentive contract for supplier shareholding and retailer shareholding, wholesale price contract coordination contract, revenue sharing contract, profit sharing contract, income* **Exclusive contract, repurchase contract, return contract, option contract, wholesale price contract, quantity flexibility contract, quantity discount contract, quantity flexibility contract, price subsidy contract.

8. Supply chain strategic partnership management

The strategic partnership between supply chain enterprises essentially requires each partner enterprise to trust each other and ensure information security under the same interests and goals. * Enjoy to achieve a "win-win" (win-win). Enterprises are based on some basic principles such as mutual trust, mutual benefit, information sharing, risk sharing, and collaborative work. Enterprises are connected by agreement or contract to ensure the smooth progress of transaction activities. Supply chain strategic partnership is a competitive partnership. Supply chain strategic partnerships are relatively stable.

Operational coordination is the goal that supply chain management continues to pursue, and it is also the most important and essential feature of supply chain enterprise relationships.

9. Supply chain member incentives

For members in the supply chain, some different incentives must be used: price incentives, order incentives, goodwill incentives, investment incentives, information Incentives, elimination incentives, joint development of new products or new technologies, organizational incentives, etc.

10. Customer demand management of the supply chain

Enterprises must start from the needs of key customers and suitable customers, and aim to maximize value in the process of satisfying customer needs. All Resources and processes need to be optimized to serve customers better and faster. The result is that high-quality, low-cost products and services flow quickly to the market, maximizing the unification of meeting customer needs and improving the operating efficiency of the enterprise. stand up.

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