The core characteristics of modern supply chain management

Supply chain management is to optimize the operation of the supply chain, with minimum cost, so that the supply chain is from the beginning of procurement to meet the end customer of all the processes, including workflow, physical flow, capital flow and information flow, which can operate efficiently, and deliver the appropriate products to consumers in a timely and accurate manner at a reasonable price.


1. Emphasize core competitiveness. It embodies "horizontal integration". Therefore, we should clearly identify the core business of the enterprise, and then pay close attention to the core resources in order to improve the core competitiveness.


2. External use of resources (business outsourcing). Non-core businesses are decentralized to business partners in an outsourcing manner, forming strategic partnerships with business partners


3. Cooperative competition. In the past, competitors allied with each other, jointly developed new technologies and shared results. Outsourced non-core components produced by their own enterprises to suppliers, and the two sides worked together to participate in the competition.


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


5. Integration of logistics, information flow, capital flow, etc. It is emphasized that these streams must be integrated, and only by integrating across enterprise processes can the goal of coordinated operation of supply chain enterprises be achieved.


6. Achieve the management goal with the help of information technology. This is a prerequisite for information flow management.


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