Supply chain management must advance with the times


I. Introduction

World War II the U.S. economy is in a great development of the production boom of the late stage. With the development of large production systems and the popularity of cars on American life that had a pervasive influence. Which affect the performance of a new technology and information development, particularly closely related to the continuous development of the supply chain, and ultimately affect the integration of all aspects of business and society. Between economists and futurists debate has mainly revolved around technological innovations carried out, if depth of this discussion continues, we will see another period of unprecedented prosperity.

2, AMR Research's opinion

For commercial purposes, such as technological innovation stage of development means that more than ever, the different performance of the entire value chain improvement. Can successfully do this will achieve high productivity, making it the new economy divide up the market leader. Here are some examples of often people learn for your reference:

Dell ended for each employee to create an opportunity for millions of dollars in profit, and it would make their position in the industry declined.

Wal-Mart's own GDP on higher than most countries GDP.

Toyota is now the world's second largest car manufacturer.

Cisco dominates the networking market.

In the example above, each firm can have all of today's brilliant performance of their supply chains are inseparable. The reason these companies can own competitors miles behind, because they are very clearly aware of the importance of the supply chain while walking in the forefront of the times. As in many industries the role of technology to drive productivity, companies need to do is to fully grasp and make good use of opportunities for supply chain and become a leader in the forefront, rather than competition, defeated the losers. Therefore, we must always think about this issue, AMR Research's opinion is worth learning, here we have to make their main point of view.

1, the supply chain on how important business

Ten years ago, AMR Research to study enterprise applications and infrastructure replacement issues, told the Enterprise Resource Planning (ERP) system, the subject conducted intensive research. Similarly, ten years later, they were to clear the supply chain software market has been studied, but the core of supply chain software, ERP software based on precisely the background skeleton. Thus, AMR Research analysis of it as an entry point for new software markets, and create together with PRTM supply chain operations reference model SCOR (Supply-Chain Operations Reference) of this new concept, but also set up a supply chain Committee (Supply Chain Council) the non-profit organization, now the agency has provided many services for the industry.

Currently, companies have experienced in the past few years out of the downturn, the supply chain opportunity to put in front of everyone again, but this is still a technology in which key elements of business and best practices are new supply chain plays a leading role in the revolution.

2, the best practice is the key

In order to grasp this important new opportunities and to fully understand its importance, AMR Research has spent two years in many industries of the supply chain performance, their findings reveal the following conclusions:

The prediction accuracy, the completion of the order of (mainly the task of accurate, timely and perfection), supply chain costs and cash flow cycle time needs of the application of a company's supply chain and achieve rapid, balanced supply chain efficiencies four key factors.

This, AMR Research's recommendations: the four elements of the above criteria, an accurate understanding of their needs, cost and service coordination between the various elements of good, and to manage the flow of funds.


Demand forecast accuracy can create a high-speed response time, and through the effective management of the supply chain right cost.

This, AMR Research's proposal is: who needs to do better forecasting that 15% of companies have problems in the stock, while 17% of the company's orders to the deficiencies, and 35% of the company's cash flow time period is too long, and another one in the business enterprise and the industry ratio, often appears out of stock. Therefore, enterprises should set the error-prone areas, to avoid these problems.

To predict even with the orders of the implementation of a perfect combination: similar prediction accuracy to increase by one percentage point would have on the implementation of links in the orders increased by 2 percentage points Caixing respect.

This, AMR Research's proposal is: even if the improvement is minor, the company can not be taken lightly, but active efforts to pay, and timely attention to customers are reflected.

3, the supply chain are also times

The above conclusion is very clearly revealed to us that the supply chain management for us both an opportunity and challenge, supply chain management itself at a crossroads. Why? This is mainly because: on the one hand, supply chain management 4 reflect the importance of corporate strategy; the other hand, many traditional supply chain management methods and rules are based on the times based on the dynamic changes. We could be further from the following example clearly understand this point:

Constantly increase profits by lowering the cost of the common goal of the enterprise, the role of supply chain managers is to think from a product-based model to a comprehensive supply chain based products and information management, including thinking-based change.

Lean rules are the core of supply chain strategy. These rules have been from as circulation, production and factories on time remodeling the old rules of the basic rules such as 6-Sigma to present such a full range of new rules related to business change.

A real change has been from the supply / internal orientation of view, to demand and multi-level integrated value chain for the wind vane, in the process engaged in the design and planning, and pay attention to where the "value chain" refers to relate to business suppliers, vendors and suppliers of enterprise customers, clients and other clients in all aspects of the full range of value chain.

Taking into account all the factors mentioned above, technology is essential for the transformation. Most company has put its bet on the optimization techniques to maintain and improve the yield on, but as a business leader, should be more targeted at those who react quickly to changes in the implementation of the system. Employees also have to recognize that the historical data to predict the future of enterprise development limitations, and real-time information must be consciously applied to meet the demand.

4, the introduction of next-generation supply chain team

Development of benchmarks based on enterprise data needs of the growing technology to accurately grasp the lifeline, AMR Research 已经 gradual establishment of a supply chain team of professionals to help business decision-making in this regard, the main focus of the team include the following three aspects:

Strategy: Demand-driven supply chain network DDSN (The Demand-Driven Supply Network) is the AMR Research recommends that companies set up to help businesses use the data on demand to improve service, reduce costs and can be implemented step by step perfect framework.

Best Practices: the significance of technology is not purely technical in its nature, AMR Research's study is based on how lean management rules as the basis of enterprise capital, such as 6 Sigma is a kind of effective rules management costs and apply the rules of each operation in the field.

Technology: AMR Research hope their research will involve all the new technologies such as RFID (Radio Frequency Identification) and some make supply chain management techniques to a new level of technology. But the technology matures and eventually the popularity in the enterprise is not an easy thing, need a process. So it is also necessary to consider the practical aspects of investment income ROI (Return on Investment), and take into account the diffusion of technology real.

3, Conclusion

In short, productivity is a never-ending issue of the problem, it is a potential doubling production capacity enables the key industrial strength, which all lean through the application of rules and information systems which, such as RFID. Enterprises in the fierce market competition in a dominant position, we should seize this opportunity of supply chain management, pay attention to several aspects mentioned in this article.