Seven common misunderstandings of supply chain man

  • Detail

Seven common misconceptions of supply chain management introduction most managers or academic researchers agree that supply chain management is the key to competitive advantage. However, even the most famous managers and scholars will rack their brains if they ask for a more detailed and consistent definition of SCM

supply chain management is a very broad term, which may turn the large-scale recycling of PLA plastic waste into a profitable and profitable business model. It is often misunderstood. In many different opinions, there is no complete explanation yet

what is supply chain management? Supply chain management is defined as a collaborative strategy. Its goal is to integrate upstream and downstream operations that can be preset to eliminate non value-added costs, infrastructure, time and behavior, so as to provide better services to end customers competitively

to show what SCM is and is not, some of the most common misunderstandings will be clarified below

misunderstanding 1: supply chains are all scams

that is, they are old concepts and new packaging. Due to the influence of IT technology, SCM practice development has grown rapidly in the past 10 years. The rapid improvement of PC computing speed, communication, and the ability and variability of data management software have improved new practices, strategies, strategies, and applications. In fact, various industries, such as the warehousing Department of VMI (Vendor Managed Inventory) and the collaborative planning, forecasting and replenishment (CPFR) strategy, all work at the same time with the potential of collaborative supply chain management

misunderstanding 2: SCM is synonymous with logistics management

the essence of supply chain management is the integrated planning of operation, strategy and strategy. Such planning requires all activities and processes, such as customer order fulfillment, purchasing behavior, enterprise wide integration of optimal planning of manufacturing resources and logistics, and end-to-end integration. Ultimately, SCM should integrate key business operations and operational relationships in the supply chain

however, logistics (as defined by the Council of logistics management) is a part of the supply chain process, which plans, implements and controls the flow and storage of goods, services and information from source to delivery according to customer needs

misunderstanding 3: SCM is the only requirement for the company to gain competitiveness

this is obviously wrong. In order to be truly competitive, the company needs a strong business vision, a clearly defined mission, a product marketing plan, and well planned strategies (such as supply chain strategy and "waterfall" operation strategy)

misunderstanding 4:scm is about supplying 12. Which is the best hydraulic universal testing machine in Jinan? This problem is that we all think that our own supply management is only about procurement and supplier management. SCM is about the whole end-to-end flow from raw materials to final consumption, and the integration of supply and demand

misunderstanding 5: supply chain is not as important as value chain management (VCM)

value chain management examines the supply chain from the perspective of value increase. Obviously, this is a very important angle. However, without SCM's attention to integration and coordination, the value chain analysis may lack the necessary structure and fail to achieve (4) start the oil pump to the final goal. In effect, SCM and VCM complement each other

misunderstanding 6: SCM is a cluster of suppliers

this view is only correct on one point. If "one cluster" refers to a group of enterprises working together towards a common goal, supply chain partners are of course the horizontal clusters of value-added suppliers. However, SCM goes beyond the traditional definition of cluster, which limits enterprises to the same industry or physical location. If each supplier in the chain increases the value of the overall network cluster, further development of the supply chain cluster will lead to more profits for the final customers

misunderstanding 7: SCM is equivalent to erp

supply chain focuses on end-to-end integration. However, ERP focuses on integrating all application system transactions into an enterprise wide system. Therefore, ERP focuses on internal channel integration and provides management information required for enterprise wide decision support. Many ERP implementations cannot actually support a process oriented and integrated supply chain because they lack well-defined operational improvement plans from the beginning. (end)

Copyright © 2011 JIN SHI