SCM and ERP complementary, are two fundamentally different areas. Their objectives are different, involving different fields and objects, different nature of business, the process is different need structures and systems solutions for the implementation of methods to do different. Although the process of implementing ERP must address a number of very difficult issues, but the basic problem is internal; in the implementation of SCM in the process of removing the relevant internal problems to be solved, the people who will face the supply chain manager, who is the supply chain actors, how effective implementation of the system, who are the real beneficiaries of the system, the system costs associated with the who and how to share the burden of a series of problems.
The problem is the ERP system's main purpose is to address specific business needs of internal management, and SCM systems need to be addressed is the specific production and supply and marketing group of companies related to circulation of the common and individual needs, to meet the upstream and downstream enterprises , the logistics service commission and the exchange of information between the contracting parties to share and exchange requirements. Therefore, the SCM system needs with a variety of different systems and collaboration with the ERP system is much more complex than the problem.
Existing enterprise systems solutions and IT services, systems and has achieved a successful business model is to provide basic services supporting ERP class systems; and serve the needs of SCM system implementation services building system can be said that has not been established, so that customers can not plan construction SCM system or in the building process has chosen the wrong solutions and IT services inappropriate.
This is the IT company in 1989 to join the "non-IT person" Qu Lidong point of view. Despite the public school in Japan in 1981, the background music is not the IT majors in college established the East, but his knowledge of IT business more like an "IT Thinker." IT technology, no set pattern to enable him to examine, looking at the overall situation, which could lead to more close to the real side of things. In fact, he in charge of the Shanghai Ling Tong Software Technology Co., Ltd. has always been to provide SCM solutions, the letter of the IT services company. Obviously, Qu Li feels that a lot of popular opinion may not reflect the realities of IT.
ERP system and the essential difference between SCM system
"ERP is a self-serving, it is the object of optimizing the implementation of business within the scope of companies involved in the implementation of its own and some peripheral units; SCM is altruistic, it's ideal to optimize the entire supply chain all the links. SCM is the rule-makers proposed requirements, and rules are subject to the implementation of the system together; SCM aims to address the issue of how to do, while the ERP aimed at resolving the question of what to do; SCM implementation is a continuous process, which is more close to the implementation of ERP Project. "appears in the song Lidong, ERP and SCM are even thinking of conception on the" opposition ", and enterprises to implement SCM and ERP to be the starting point and the expected results would be different.
"ERP asset of Ji Tong, Tong Chang in the asset in the balance sheet as assets reflected in the sales management fee amortization. 原则 speaking Qiyeguimo with the ERP system of Huafei not Biran of Lian Ji, Zhi Yao big enough scale enterprises of the Jing Ying, then bring business results through the implementation of ERP sufficient to cover the cost of the implementation of ERP systems, so the ERP system, enterprises should choose according to their strengths and implement the best solution for service providers; and SCM is the cost of systems, enterprise activities geographical area covered, the business increased complexity and increased supply chain length (cross-border cooperation) led to the implementation of SCM system maintenance costs will increase dramatically increased, the cost of SCM should be used as the direct cost of operations reflected in corporate profit and loss account . "
This is somewhat "Marvelous!" Many "IT person" point of view, by today's ERP has long been a strong emphasis on integrated system, not only interested in the enterprise! In the current provision of all the leading ERP vendors, almost no function in the system does not include supply chain management. Even so, Qu Lidong also think it is two different "view of the world!" Despite the appearance of eyes to see some similar, but the entire theory of system thinking is far from!
Supply chain roles and their system requirements
The effectiveness of IT systems is to support business processes, these business processes, including internal processes and inter-enterprise collaborative processes. Most companies are in their respective supply chain has its inherent position (Position) and interconnected with the. First of all, to clear the problem is that your entire supply chain is the "rule makers" or "obedient."
As a "rule makers" also need ERP systems and SCM systems. Through the implementation of ERP, the enterprise business and management processes to be optimized to achieve centralized information management, has formed the "obey those rules," compared to the advantages of trading. "Rule-makers," these strengths to develop rules and changing the rules to force through various forms of "those who obey the rules" to follow these rules. SCM is the "rule-maker," "rule of" supply chain tools.
SCM can be divided into supply chain planning management system, supply chain information and collaboration management systems and supply chain execution system in three parts.
As a "rule-makers" need is the plan management system, and program management system to play a role in the premise of supply chain information management system has sufficiently comprehensive information as support.
As "those who obey the rules" in implementing the business process should be used in supply chain execution systems, business processes they support the important thing is not to meet internal management needs, but meet the "rule makers" by the rules and can adapt to the changes in strain. Supply chain execution systems and supply chain management system of information and collaboration and exchanges of information with an effective collaboration process, so as to ensure supply chain information and collaboration management system can work effectively. Many small and medium enterprises (including large-scale circulation, import and export trade, logistics and services businesses) are "those who obey the rules", they need first is in line with customer requirements and business processes required by business execution system, rather than the now popular concept of the ERP system.
In the "rule makers" or "obedient" will appear in future, another role, that is "supply chain management" or "supply chain management services integrator." The role of information and collaboration through the supply chain management system, supply chain management over the "rule makers" to provide supply chain management services.
In the supply chain, as "those who obey the rules," the company will have three options. First, good to meet customer needs, "those who obey the rules," the second is the integration of supply chain management services to those three is a rule-maker can bargain with the "local rule-makers."
There is no doubt stand in the music world of the East, all in the "chain"! Either you are "rule-maker", or you are a "rule-maker," distributors downstream or upstream suppliers, or you are " rule-maker, "Logistics service providers, or is the" rule makers "supply chain management," Supply chain management services integrator. " Every enterprise in the supply chain part, no one can match his, which constitutes the entire value chain (VC).
Based on this, you can accurately answer questions: Do you really want on the ERP system? Or on the SCM system? In SCM is that you need to plan the supply chain management system? Or supply chain information and collaborative management system? Or supply chain implementation of the system?
To achieve cross-border supply chain management needs and realities embarrassment
Qu Lidong theoretical ideas from his experience of reality. To have a song between Japan and China established the East has seen a lot of international giants in the world, weaving the supply chain network, but also a deep understanding of their global distribution in the face many problems and embarrassment.
With "more variety", "small quantities", "short cycle", "pay attention to service," "unpredictable changes in the market," the era of the globalization of business activities and the deepening of the remaining inventory and distribution of enterprise assets and inventories the proportion occupied by the cost of rising.
As a "rule-maker" by the international giant, global operations, outsourcing non-core businesses and the transfer of production and the implementation of ERP, has greatly enhanced the efficiency of the enterprise, but the "zero inventory" in the pursuit of the same time the inventory risk as much as possible to promote to the suppliers, distributors or other service provider. A lot of inventory information is not held by "rule-makers" in the hands, but distributed in the global supply chain of international trade, logistics, distribution and marketing and in every aspect of production and processing. A lot of business while outsourcing and multinational collaboration led to quality control monitoring, control flow goes back and enterprises on a range of issues, the U.S. toy recalls in China and Japan poison dumpling incident is an example. To solve these problems, supply chain information visualization and inter-enterprise collaboration management (SCM) is imperative.
International ERP system implementation and medium-sized enterprises has been basically completed (to the optimization phase), the implementation of SCM, the integration of overseas business by improving supply chain collaboration between the relevant business processes and mechanisms to achieve inventory sharing (that is, through the supply chain management to achieve inter-enterprise optimization), particularly in resource prices and environmental awareness of the environment, the implementation of SCM's business future is expected to get tremendous results. But the reality on the international giants of the SCM system construction work has only just begun, and few success stories.
So why do serious difficulties Construction of SCM? Qu Lidong think the problem is mainly from three aspects. First, the traditional IT service model greatly increased the cost of IT business applications, making the implementation of SCM costs remain high, even very large companies are discouraged; Second, as many "who obey the rules," the company can not afford can not be implemented through the implementation of supply chain system was effective; Third, many companies no clear position and to confuse the ERP and SCM, using the wrong system solutions and IT services, has chosen the wrong business.
Enterprise IT applications industry has been for many decades, should be regarded as traditional industries, but the industry's rapid growth and rapid development of IT technology and a lack of talent makes the IT industry have time to reflect on their own, the price of services instead of falling! Request a ERP advisers sometimes worth a general manager or nearly 10 workers a year's wages. Implementation of the system is an asset if the object system (ERP), then the business can be recovered from the effect of implementation of the system input; but if the cost of implementing the system is the system (SCM), then the total cost of IT investment to reflect the cost of the enterprise and going, IT costs higher, weaker corporate competitiveness. Originally the implementation of SCM is to improve enterprise competitiveness for the purpose, but the result is the implementation of SCM but led to a decline in business competitiveness. This is what most businesses (including international giants) on the reason for the implementation of SCM daunting!
ERP to enhance the management capacity of the enterprise, SCM is the corporate external resources to enhance the "rule" ability. Management (ERP effect) and the quality of adopted solutions (also can be approximated as the total IT spend) is proportional to the ability to rule (SCM) solution is used with the price (under the premise of quality to meet the unit price) is inversely proportional. Prerequisite conditions are met in the case of the "price is king", this is the song through years of practice established by the East conclusions.
Even the "rule makers" had on the implementation of SCM prices too daunting, so as "to obey those rules," the company can not afford the more expensive the price of IT services. While many IT companies offer relatively inexpensive for SME's ERP system, there are many, such as ASP or SaaS (Software as a Service) and other service-based solutions to produce the concept, but can not fundamentally solve the problem. "Obey the rules were" business process to adapt to "rule-makers" by the rules so that they can not do without the passive nature of IT services, IT services, high prices have made it they can not afford the system to adapt to changes in external demand arising from cost.
If there is no "obey those rules" is used in accordance with the implementation of supply chain management needs of the system, the SCM of the other systems will become a "castle in the air" and become "deaf" or "blind" and can not play the desired results.
Qu Lidong in the ideal world, all the "rules of subject-based" enterprises are SCM (supply chain execution system) and of course the user, but the SCM's "altruism property" makes the biggest beneficiaries of the implementation of SCM is actually a "rule-makers "Therefore," Rule-makers "should assume some or most of" those who obey the rules "companies on the SCM of the costs to implement the system!
This is the fantasy it? "Have this possibility! If as a 'Dell' of the distributors are willing to share inventory, sales and other important information, so that it can be more optimized scheduling and logistics management, 'Dell' is very may be willing to give up 1% of profits to the distributors. "Qu Li Tung pledged firmly believe that this innovative model has the possibility of realization.
The establishment of cross-border supply chain management system necessary for IT service system
Even the "rule makers" to "obey those rules," pay corporate IT spending, IT industry need to create consistent laws of SCM system construction demand IT service model, IT services to large-scale comprehensive cost reduction purposes!
Qu Li East that building this new global supply chain (G / SCM) service model must have the following conditions:
First, can significantly reduce IT costs. From the SCM system in terms of cost, IT cost reduction is a necessary condition. Only a substantial reduction in IT costs in order to change the current build SCM privilege belongs only to the status of large enterprises, and gradually transition to medium-sized enterprises.
Second, the accumulation of talent and experience. G / SCM in the logistics services between the business flow between the logistics, international, business-related departments of information between different systems consistent mechanism. G / SCM system in the field of personnel training, the need for on-site operations and highly proficient in understanding, good communication skills (business knowledge, ability to multi-language counterpart), and traveled the world power. Should enable them to accumulate experience and talent should be given opportunities to gain experience and the stage. To take full advantage of the experience, service quality management processes and training system as a service provider to establish a prerequisite. Should enable them to play a role for the client, rich talent pool and the relative cost competitiveness of essential personnel.
Third, the transnational counterpart capacity (in China and Southeast Asia is particularly important). System used by companies located around the world, as service providers, to create G / SCM system, must have the ability to cross-border business correspondence. Currently, the biggest problem facing our customers in China and Southeast Asia is the production, sale, trade, logistics network of systematic correspondence. In addition to system implementation, the as a service provider must also have the stand of the Global View of system maintenance, and application.
Fourth, to match demand with the SCM system architecture, system implementation methods and solutions. Construction of the existing system for ERP solution developed its starting point, use patterns and technical architecture etc, far removed from the SCM needs. Hence the need for new SCM solutions for SCM and the nature of effective correspondence, the new system implementation and service management and technical architecture is also necessary.