Design Based on Supply Chain


Abstract Supply chain management is proposed in late 80s, a new management model, in analyzing the supply chain and its model based on the supply chain based on product design strategy and design process flow chart.

Key words reactive supply chain effectiveness



Supply Chain (Supply Chain, SC) concept put forward in the late 80s, in recent years as the global manufacturing (Global Manufacturing) the emergence of supply chain management in the manufacturing sector are widely used as a new management touch-type. By the current international market competition, economic and user demand increases uncertainty, rapid technological innovation and other factors, supply chain management (Supply Chain Manufacturing, SCM) proposed time not long, but has aroused attention. Some famous international companies such as Hewlett-Packard, IBM Corporation, DELL computer company in the supply chain practice has made great achievements, people supply chain is even more convinced that the 21st century enterprise to adapt to global competition is an effective way, thus attracted many scholars and business people study and practice of supply chain management.

How to design a supply chain is the basis for the implementation of supply chain management, little research at home and abroad, this paper first analyzes the supply chain and its model, the analysis of product and supply chain based on the type of product-based supply chain design strategy.

A supply chain concepts and models

The early view is that manufacturing companies in the supply chain is an internal process, which refers to the procurement of raw materials and components received through the production process of conversion and sales is passed to the manufacturer's user's a process. Limited to the traditional concept of supply chain enterprise's internal operations, focusing on corporate self-interest goals.

Later, the concept of supply chain and other companies pay attention to the link, pay attention to the external environment in the supply chain, tend to define it as a chain of different enterprises by the manufacture, assembly, distribution and retail process raw materials into products to final Users of the conversion process, it is broader, more systematic concept. For example, the United States, Stevens 〔Stevens) said: "value-added processes and distribution channels through control of suppliers from the supplier to the user is the user's current supply chain, which began in the supply source, the end of the consumption the end. " Evans 〔Evens) said: "Supply chain management is the flow of information through the feedforward and feedback material flow and information flow, to suppliers, manufacturers, distributors, retailers, until the end user with the structure as a whole model. " Note that these definitions are the integrity of the supply chain, supply chain, taking into account the consistency of all members of the operation (the relationship between the members of the chain).

Recently, more emphasis on the concept of supply chain around the core enterprise network chain relationships. If the core business with suppliers, suppliers and all suppliers and even before the relationship with users, customers and the relationship after all. At this point the concept of supply chain formation of the concept of a network chain, such as Toyota (Toyota), Nike (Nike), Nissan (Nissan), McDonald's (McDonalds) and Apple (Apple) and so the company's supply chain management are from the net chain point of view to implement, such as Harrison (Harrision) is defined as "supply chain is the implementation of the procurement of raw materials, convert them into intermediate and finished products, and sell the finished product to the user's functional network chain." These concepts are also stressed that the strategic supply chain partnership, Philip (Phillip) and Wendell (Wendell) that the strategic partnership between the supply chain is very important, through the establishment of strategic partnerships with key suppliers and users work more effectively.

Although the supply chain there is no unified definition, but it is certain that the supply chain is not only a connection to the user's material supplier chain, and is a value-added chain, materials for processing in the supply chain, and transportation process to increase its value. And such a chain in the 90's global manufacturing, global competition environment, it should be a core business of network chain (see Figure 1), not just from a simple chain of suppliers to the user.



Figure 1 conceptual model of supply chain network chain

2 Supply chain design strategy

Design and operation of an efficient supply chain for each manufacturer are essential. Yin Wei improve user service levels it can get, to achieve cost and effective balance between services, improve competitiveness, increase flexibility, penetration The New Di market, by reducing inventory to improve work Xiaoshuai other interest. But may also be because of inappropriate design of the supply chain leading to waste and failure. The right design strategy is required.

Fisher (MarshalI L. Fisher, 1997) that the design of the supply chain to product-centric. Supply chain design to first understand the needs of users of enterprise products What is this? Product life cycle, demand forecasting, product diversity, in advance of market standards and service impact of supply chain design are important issues. Product characteristics must be designed in line with the supply chain, which is studied in this paper supply chain based on product design strategy.

2.1 Product Type

Different product types on the design of the supply chain have different requirements, high margins, stable demand for innovative products (Innovative Products) supply chain design is different from the low profit margin on a stable demand for functional products (Functional Products) . Comparison of two different types of products in Table 1.

Table 1 two different types of products in demand on the comparison



As can be seen from Table 1, functional products - like to meet the basic needs of users, change very little, with a stable, predictable demand and long life cycle, but their profit margins low; in order to avoid low profit margins, many businesses in the form or technical innovations for consumers to buy, to gain high profit margins, the demand for this innovative product generally unpredictable, life cycle is shorter. Because of these two products are different only need to have different types of supply chain management to meet the different needs.

2.2 Supply chain type

Why do different types of products require different supply chain? Mainly because of the supply chain work in different ways: physical function and market intermediary function. Therefore the supply chain can be divided into two: the effectiveness of the supply chain (Efficient Supply Chain) and reactive supply chain (Responsive Supply Chain). Effectiveness of the supply chain, supply chain, mainly reflected the physical function, which is the lowest cost of raw materials into components, semi-finished products, products, and in the supply chain and transportation; response of the supply chain is mainly reflected a market intermediary function of the supply chain, that the distribution of products to meet customer demand market, the demand is not predictable rapid reaction. Two types of supply chain is shown in table 2.

Table 2 Comparison of two types of supply chain



2.3 The supply chain design based on product strategy

When that product and supply chain characteristics, you can design the same product demand and the supply chain, design strategy shown in Figure 2.



Figure 2 types of supply chain design and product strategy for matrix

Matrix of the four elements of strategy on behalf of four kinds of possible combinations of products and supply chain, from which you can see the characteristics of products and supply chain, managers can determine its supply chain business process design is consistent with the type of product, which is based on product supply chain design strategy.

2.4 In the early stages of product development, supply chain design

In some high-tech enterprises, such as Hewlett-Packard (HP), product design, supply chain management is considered an important factor, many researchers have also suggested the design for supply chain management products (Designe For Supply Chain Management, DFSCM) concept . DFSCM goal is to design products and processes related to supply chain costs and operations can be managed effectively. It is becoming increasingly clear understanding of the supply chain, manufacturing and product distribution in the total cost of the final decision on the product design. Therefore, product design and development must start early in the design of the supply chain while considering the issue, to get the maximum potential benefits.



3 based on the product's supply chain design steps

Product-based supply chain design steps shown in Figure 3.



Figure 3 Supply chain design step model diagram

(1) analysis of market competition

Purpose is to find which product market development for supply chain to be effective, must know what the product demand, product type and attributes. Analysis of market characteristics of the process to vendors, customers and competitors to investigate, "what users want" and "them in the market how much weight" to certain issues, to identify the needs of users and for vendors, users, the pressure of the competitors. The output of this step is of importance for each product ordered by the characteristics of the market. At the same time the uncertainty of the market should analysis and evaluation.

(2) summarize, analyze business status

Analyzes the status of enterprise supply and demand management (if the company already has supply chain management, the analysis of supply chain status quo), not to evaluate the importance of supply chain design strategy and suitability, but rather focus on the direction of supply chain development, analysis, to find, summarize existing problems and the impact of corporate supply chain design of the resistance and other factors.

(3) for supply chain design projects

The existing problems of supply chain design projects, analyze its necessity.

(4) the establishment of supply chain design goals

Main objective is to achieve high customer service levels and lower inventory investment and low unit cost of the balance between two goals (two goals often conflict), should also include the following objectives: ① to enter new markets; ② the development of new products; ③ the development of new distribution channels; ④ to improve service levels; ⑤ improve user satisfaction; ⑥ reduce costs; ⑦ by reducing inventory to improve work efficiency.

(5) analysis of the composition of the supply chain

Propose a basic framework for the composition of the supply chain. Supply chain analysis of the composition include manufacturing plants, equipment, technology and suppliers, manufacturers, distributors, retailers and customers choose their orientation, and to identify criteria for selection and evaluation.

(6〕 analysis and evaluation of the technical possibility of supply chain design

This is not just to improve the technology, strategy or recommended list, and it is the development and realization of supply chain management, the first step, it is the basis of feasibility analysis, combined with the actual situation of the enterprise supply chain for the development of technology choices made advice and support . This is a decision-making process, if that is feasible, can be carried out following the design; if it is not necessary to re-design.

(7) Design Chain Supply Chain

Mainly to solve the following problem: ① the composition of the supply chain (suppliers, equipment, factories, distribution centers and positioning, planning and control); ② source of raw materials (including suppliers, traffic, prices, transportation, etc.); ③ production design (demand forecasting, production any product, production capacity, distribution centers which supply, price, production planning, production planning and tracking control, inventory management, etc.); ④ ability to design and distribute tasks (products and services in which market, transport, prices); ⑤ Information Management System; ③ logistics management system; and so on.

In the supply chain design, the use of many tools and technologies, including induction, collective problem solving, flow charts, simulation and design software.

(8) testing the supply chain

Supply chain design is completed, through certain methods and techniques for testing, inspection or test run, if not, return to (4) to re-design. If there is any problem, you can implement a supply chain management.

4 Conclusion

21st century business success lies in the success of supply chain management, supply chain management will rise to the attention of Management sector. Design and operation of an effective supply chain is critical for every enterprise, and must choose an appropriate design strategy for supply chain design, product-based supply chain design strategy is one of them.