We face today is no longer a simple supply and demand market, but a new technology emerging, rapid market Bianhua competitive environment, manufacturers and Ta of Ke Hu, 渚涘簲 the relationships between companies is becoming increasingly important . A good supply chain management to shorten product delivery time, reduce overall procurement costs for companies and customers to add more value. It can get not only the interest generated by the brand and other products can be differentiated and the promotion of good relations with customers to reduce the company's costs and improve relationships with suppliers, streamline business processes so that organizations focus their core capabilities.
Most managers or academic researchers all agree with this view, supply chain management is a key competitive advantage. However, if asked, more detailed definition of SCM of the same, even the most famous managers and academics will also struggled.
Supply chain management is very broad terms, often very easy to be misunderstood, in many different opinions, no complete explanation has emerged.
What is supply chain management, supply chain management is defined as a collaborative strategy, goal is to integrate upstream and downstream operations, to eliminate non-value added cost, infrastructure, time and behavior to competition for end customers better services.
To demonstrate what is and is not a SCM, the following will clarify some of the most common misconceptions;
Myth 1: Supply chain is a hoax
That are old and new packaging concept. As the impact of IT technology, SCM's practical development of the rapid growth in the past 10 years. The rapid increase in PC computing speed, communication, data management software to enhance capacity and variability have a new practice, policy, strategy and applications. In fact, various sectors, such as VMI (Vendor Managed Inventory) and storage sector and collaborative planning, forecasting, add (CPFR) strategy with the potential of collaborative supply chain management roles simultaneously.
Misconception 2: SCM is a synonym for logistics management
Is the essence of supply chain management operations, strategy and strategic integration planning. Such planning requires that all activities and processes, such as customer order fulfillment, purchasing behavior, the optimal integration of manufacturing resource planning and logistics enterprise, end to end integration. Ultimately, SCM to integrate key business operations and supply chain operations on relations.
However, the logistics (according to the definition of Council of Logistics Management), is part of the supply chain process, planning, implementation and control of goods, services, and information from the source to the customer needs to deliver the flow and storage.
Misunderstanding 3: SCM is the only company to gain a competitive edge demands
This is clearly wrong, in order to truly be competitive, companies need a strong business vision, clearly defined mission, product marketing plans, planning a good strategy (such as supply chain strategy and the "waterfall" operation strategy).
Misunderstood 4: SCM is about supply management
Supply management only on procurement and supplier management. SCM is about from raw materials to final consumption of the entire end to end flow, as well as the integration of supply and demand.
Misconceptions 5: Supply chain management is not the value chain (VCM) important
Increase in the value chain management from the perspective of the value of examining the supply chain. This is obviously a very important point. However, there is no concern of SCM on the integration of collaboration, value chain analysis may lack the necessary structure, can not fail to achieve the ultimate goal. In effect, SCM and VCM complement each other. (Related article: Information Age Effective supply chain management)
Misconception 6: SCM is a cluster of suppliers
This view is only correct at some point. If the "cluster" refers to a group of companies working together toward common goals, supply chain partners, of course, the level of value-added supplier cluster. However, SCM than the traditional definition of clusters, the traditional view will be limited to the same industry, business or physical location. If the chain each supplier network to increase the overall value of clusters, then the further development of the supply chain cluster will lead to the final customer more profitable.
Misconception 7: SCM equivalent ERP implementation
End to end supply chain integration to focus on. However, ERP applications integrate all concerned about the transaction, as an enterprise-wide system. Therefore, ERP focuses on the internal channel integration, and provide enterprise-wide decision support management information requirements. Many ERP implementation process and in fact can not support the point of supply chain integration, as they start to improve the lack of well-defined action plan.
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