Supply chain management (SCM) in China is still only at a beginning stage. In 2004, the domestic supply chain management system to implement some new changes.
Supply chain management and traditional management methods are the two biggest difference, one supply chain management requirements to-order, rather than production Ding Xiao; Second, supply chain management by increasing the flexibility of enterprises, namely, response capabilities, rather than through increase production, to improve production efficiency.
Supply chain management theory itself is constantly in practice development. Supply Chain Management Logistics Management was first started from, at first people did not see it and the overall management of enterprises linked mainly to localized supply chain management research, such as inventory control problem of multi-level, material supply, which more on distribution operation, such as distribution requirements planning (Distribution Requirement Planning, DRP) study is a typical part of the supply chain, materials distribution problems.
As the study of supply chain management deepening, people gradually realize that supply chain management is a joint venture between the coordination, supply chain companies to recognize this, and in redesign of the organizational structure to enable meet the operational requirements of supply chain management. In addition, the creation of the supply chain advantages, to change the traditional procurement model is not only a function, but also a strategic thinking. Recognize this is to reform the existing enterprise management ideas and models an important prerequisite. Supply chain management practice has shown that it is not a simple operational method, but a changing of the business functions of the re-raising strategies. So, in order to give full play to the potential role of supply chain management, supply chain management should be strategic business issues as to consider, not merely as a way of its method of operation.
According to the different main business enterprises, supply chain management can be divided into a manufacturing and with sales mainly two kinds of systems. A manufacturing supply chain management to consider is quality control and production control, cost control is the key; and distribution supply chain for the sale of the company concerned, to emphasize speed, sales supply chain as short as possible.
As a key supply chain management is to establish a shared information platform, and the Internet in the acceleration of information transfer and reduce the cost of information has unparalleled advantages, therefore, supply chain management and information technology fit in easily on a matter of course.
Supply chain management needs of enterprise information with some basis it is generally is already implemented ERP re-implementation of large enterprise supply chain management system, and that these companies or in basic manufacturing. In 2004, domestic enterprises application of supply chain management system there is a significant change, that is, some to sell mainly small and medium commercial enterprises have begun to implement supply chain management.
Life of electrical appliances such as the U.S. division in 2004, successfully achieved the sales side of the supply chain management, which makes the lives of the U.S. division increased electrical efficiency, reduce operating costs, accelerate the speed of market reaction. The Division 1 October 2004, sales in the domestic market increased by more than 40% last year.