Supply chain management and IT technology


As global competition intensifies, increasing the economy's uncertainty, the rapid development of IT, consumer demand for increased personalization of the changes in the environment such as today's world Yijing You by machines and raw materials Tezheng the industry into the to the computer He Shi Dai information age characterized by information, enterprise-based division of labor organizations become increasingly unsuited to the intense market competition, which began to explore effective to improve the competitiveness of enterprises in the new management model.
Supply Chain (SupplyChain) concept put forward in the late 80s, in recent years as the global manufacturing (GlobalManufacturing) the emergence of supply chain management in the manufacturing sector are widely used as a new management model. Supply Chain Management (SupplyChainManagement, referred to as SCM) proposed time not long, but has attracted much attention. Some famous international companies such as Hewlett-Packard, IBM Corporation, DELL Computer Corporation practices in the supply chain has made great achievements, people are more convinced that the supply chain into the 21st century enterprises adapt to global competition is an effective way, thus attracted many scholars and business people study and practice of supply chain management.
In this paper, the definition of the supply chain, and supply chain management model based on the contents, focus on analysis of information technology in SCM application, presented its application model, and pointed out that the reform of Chinese enterprises in China.

Definition and basic ideas 2SCM

2.1 The concept and model of supply chain
Supply chain is a new organizational structure, the concept of supply chain network focused around the core business chain relationships. Toyota (Toyota), Nike (Nike) and Apple (Apple) and so the company's supply chain management are from the perspective of the implementation of network chains. We can define the supply chain as: "the supply chain around the core business, will be suppliers, manufacturers, distributors, retailers until the end user with the functions of the whole network into a chain." In the supply chain, every company is a node, the node between enterprises is a relationship between demand and supply. The core business is the supply chain is to connect their suppliers, suppliers of suppliers and users, the user's user network chain, in the supply chain involves three different streams, namely, material flow, capital flow and information flow .
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 (Figure 1 omitted), rather than a simple supplier to the user from the chain structure.

2.2 The concept of supply chain management and related issues
The early view was that supply chain management is a manufacturing enterprise in an internal process, it is to manage the procurement of raw materials and components, and received, through the production process of conversion and sales is passed to the manufacturer's user's a process . Later, the concept of attention to supply chain management links with other businesses, 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 end-user's conversion process. For example, 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, even until the end-users as a whole management model. " Philip (Phillip) that supply chain management is not another name for vendor management, but a new strategy, which integrates the different enterprises in order to increase efficiency throughout the supply chain, focus and cooperation between enterprises.
Supply chain management include plans, cooperation and control to the user from suppliers of materials (components and finished products, etc.) and information. Supply Chain Management's goal 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). Supply chain management is not just a material entity concerned in the supply chain flow, in addition to the enterprise and between enterprises outside the transport and physical distribution, supply chain management also includes the following main issues:
* Supply chain demand forecasting and planning products
* Strategic partnerships with providers and users management
* Between internal and corporate materials management
* Product Design and Manufacturing
* Node positioning companies, equipment and supply chain production planning, tracking and control
* Based on supply chain customer service
* Management of capital flow between enterprises
• Internal and interactive information flow management, etc.
Design and operation of an efficient supply chain for each manufacturer are essential. It is for the companies to adapt to the new competitive environment was to improve customer service levels, achieve cost and effective balance between service and enhance enterprise competitiveness, penetrate new markets, improve efficiency by reducing inventory and other interests. The IT in the role of an indispensable role.

3 Information technology application in SCM

3.1 The development of information technology and business management
Modern information technology (InformationTechnology, IT) development and promotion of the information age has laid the arrival of its development and the rise of global information networks, the global economic and cultural links with. Any new discovery, new products, new ideas and new concepts can be immediately via the web, through advanced information technologies spread throughout the world. Economic internationalization tendency is more significant, making the information network, more rapid development of information industry in all sectors, the industrial structure of the management system and society undergoing profound changes. Modern information technology is a very broad technology base, which includes microelectronics, optoelectronics technology, communication technology, network technology, sensor technology, control technology, display technology. The 21st century, the core of enterprise management to information management must be carried around.
In recent years, technological innovation become the main form of enterprise reform. The direct impact on the development of IT enterprise reform and management. Whether the computer integrated manufacturing (ComputerIntegratedManufacturing, CIM), electronic data interchange (ElectronicDataInterchange, EDI), computer-aided design (ComputerAidedDesign, CAD), or the implementation of information systems (ExecutiveInformationSystem, EIS), information technology, business innovation have become the major organizational changes way. Manufacturing sector can invest in automation and IT to increase productivity purposes.
Useful IT tools, such as multimedia, Internet, WWW, CAD / CAM, etc., are integrated into the SCM in its role in all functional areas. SCM and the formation of an integrated IT system to improve enterprise management. In short, through the application of IT can save time and improve accuracy of business information exchange, it makes the application of complex, repetitive work, reduced human error, while it can reduce errors and save funds, IT application also enable enterprises to access the first to develop new products to market competitive advantage.

3.2 Information Sharing
Information sharing is the key to supply chain management. Supply chain management needs of enterprises from all nodes in real-time, accurate information. Effective supply chain management, IT systems can not provide accurate data available. In order to achieve information sharing, available from the following aspects:
* For the system function and structure of a unified business standard
* Of the information system definition, design and implementation of the establishment of a continuous experiment, detection methods
• The business between suppliers and users of the program information in real time integration and visibility
* Use of appropriate technology and methods to improve operational reliability and lower operating costs rate
• Ensure that information requirements and key business indicators of the same
3.3IT in SCM Application Model
According to the main areas of IT in SCM applications can be summed up in Figure 2 shows the application model:
From the figure, it is easy to see that products, production, finance and cost, marketing / sales, strategic processes, support services, personnel resources, and form the main business areas of supply chain management. Different IT applications in different fields:
· EDI supply chain management is the main means of information, especially in international trade and a large number of frequent use in the transport document. It is the relationship between the computer and the computer exchange of business data tool, it has the same standards to make the exchange possible. A typical data exchange transfer orders to suppliers. EDI applications are complex and expensive, the most recent package, remote communication technologies to make EDI more general. Use of EDI can eliminate the barriers between functional departments so that information between the different functions smooth and reliable flow of work while reducing inefficiencies and non-value-added services (NonValueAddedProcess). EDI can also access information quickly, make better communication links, communication and better for the users.
• Information systems such as CAD / CAE / CAM, EFT, and multimedia applications can shorten the lead time of order flow. The delivery as a project, in order to eliminate material flow and information flow between the obstacles, we need to apply multimedia technology, sharing of database technology, AI, expert systems, and CIM. These technologies can improve enterprise and business cooperation between the computer-supported work to improve the efficiency of the whole supply chain system.
* Company's internal links and external links to businesses is equally important. Such as the establishment of the enterprise internal network (Intranet) and set up e-mail (Email) system, so employees can send and receive information between each other. Applications like Netscape and the WWW makes it possible to obtain useful data from other places, which allowed companies to succeed in global competition, so that accurate and reliable business information in the help to make accurate decisions. The lead time information flow can also Email and fax applications are reduced. Development needs of the information age businesses in various business processes with computer-based IT.
* Strategic planning by the internal (productivity, skills, co-workers, management) and external information factors. And supply chain management emphasizes the management of strategic partnerships, which mean a great deal of data and information to make the right strategy to achieve business goals. IT such as the telephone conference, Netscape, multimedia, network communications, database, AI and expert systems, can be used to collect and process data. Decision-making depends on the accuracy of collection of internal and external data accuracy and ease of information exchange.
* Product design and engineering, process plan can be used as a business process, the product itself needs products, engineering, project design process, these stages can be used QFD, CE, CAD / CAE and CAPP integration in product development, consider shortening the design lead time and at each stage in the product cycle to reduce the production of non-value-added services.
* Marketing and sales are two functions of the large amount of information processing. Market research to some extent, the main beneficiaries of IT innovation. EDI applications at this time reflected in the purchase order, payment processing. Marketing and sales as a process requires an integrated market research, forecasting and feedback, goal is to users and data exchange between sales based on production requirements to provide users with quality products and services. Multimedia and network systems can be used for data collection and exchange.
• Accounting services, including product cost, trade policy, capital investment decisions, financial and product group decision-making. The cost of computer information systems, including online information systems and databases, primarily using online shared database technology and computer information systems to collect and process information. Technical analysis expert system (ExpertSystemforTechnologyAnalysis, ESTA) financial expert systems and improving the overall investment management capabilities, but also in the ESTA application of artificial intelligence (AI) and neural network technology can enhance the structural problems of some non-expert decision-making, AI's applications can improve quality, flexible, efficiency and reliability. EDI and EFT (ElectronicFundsTransfer) used in supply chain management, supply chain node, which can increase the flow of funds between enterprises secure and rapid exchange.
* The production process large amount of information and chaos, if the treatment is not timely or not handled properly, this could produce chaos, stagnation and other phenomena, and MRPII, JIT, CIMS, MIS and other technology can solve the production appears a variety of complex problems, improve production and the supply chain flexibility, to ensure normal production and supply chain operation.
* Client / server technology can be applied to information sharing between enterprises to improve the level of service enterprises, while a variety of network applications of new technologies can improve information exchange between enterprises, the use of the information to improve distribution automation system , logistics, transportation efficiency, reduce paper work, thereby reducing costs and improving customer service levels.
* Supply chain designs using CIM, CAD, Internet, Email, expert support system (ESS) and other technology companies will help supply chain node selection, location and resources, equipment configuration. Decision Support System (DSS) is very useful in the core business of the timeliness and accuracy of decision-making.
• Human resources management among the works of human behavior (HumanPerformanceEngineering, HPE) which began to be applied in business management, which organization, development, encourage corporate human resources, in the definition of work, training, application of tissue remodeling in HPE can help enterprises to improve from the highest leadership to the workshop of human efficiency. At the same time multimedia, CAD / CAM and the Internet and other technology can improve the cooperation between workers and reduce the pressure to provide more reliable communications system.

Four pairs of Chinese Enterprises

With the development of IT, SCM has already permeated all areas of life, and the management of Chinese enterprises are still many problems to study and learn the number of concepts and ideas SCM, and will help promote China's enterprise reform. Gradual establishment of state-owned enterprises should adapt to the market 经济 operation of the organizational structure to meet the great changes in the external environment, to improve organizational quality and operational efficiency of the operation. Large and medium state-owned enterprises being the modern enterprise system reform, these companies try to implement in SCM, the small state-owned enterprises should be promoted under the guidance of the strategic freedom and turn, according to its own advantage to find partners. Meanwhile, the implementation of supply chain management, enterprises should adopt the right, advanced information technology to support SCM.
In today's era of information explosion, and how businesses can use the advanced IT, will be directly related to survival and development of enterprises, in particular how the introduction of SCM, while the application of advanced IT, more companies need to combine theory and to explore the way supply chain management.