Editor's note: the competition between enterprises has developed into the supply chain and supply chain competition. That is, at the same supply chain parties, including manufacturers, suppliers, distributors and customers must be coordinated. Want to compete in the market survive storm, optimize the supply chain will be done.
Georgia Tech University and were conducted by consulting firm AT Kearney survey also showed that the current mode of competition is some companies together to try to beat others "Baotuan" company. The results also show that people need to learn how to make their supply chain both efficient and highly dynamic.
Dell, Procter & Gamble, Wal-Mart, simplification, adaptation and other supply chain collaboration and optimization in practice is so natural and easy. But why for supply chain optimization company is still only a few?
In fact companies are well aware, the competition between them has now evolved into the supply chain and supply chain competition, why is the work of optimizing the supply chain has become such a delay it? This is not because managers are afraid of change, the key is to recognize that change the "magnitude" is huge.
To be successful, you have to continuously carry out large-scale changes, software vendor SAP, Supply Chain Business Development Manager, Ferrari (Bob Ferrari) says.
Supply Chains: A Manager''s Guide Taylor, author of the book (David A. Taylor) explains the difficulty that the two main tools of change. They will compete with the traditional business model as a whole. Taylor stressed that the two measures would change the focus of competition and relentless change the company's business model.
The first change means directed by optimizing the enterprise's internal production processes to enhance the competitiveness of the traditional stereotypes, though it is a successful practice. In the past, success simply means the product better, faster, and cheaper.
However, Tyler said, adding that the next company to do is to optimize the plant outside of work. Of course the premise is that as the best manufacturer, you have the efficiency of plant development to the extreme.
The second means is led by retail giant Wal-Mart used their classic form of vertical integration. "The past is the control of the supply chain from the manufacturer, and now control the transfer from producers to the hands of the seller," Taylor said.
As consumers get on the supply chain, "driving position", many companies are beginning to reform, such as Procter & Gamble. P & G's goal is to make efficient supply chain to become the core competitiveness of enterprises. Its strategy is to inventory reduction of 50%, consumer side out rate in half, the logistics cost savings of 20%. In addition, consumers will also reduce inventory replenishment time by half.
Wal-Mart's strategy is vertical integration of control from the manufacturer to the customer in the shop in all matters, including consumption patterns. Other companies to compete with, or on the vertical integration of all the work themselves, or at least take a unique approach to optimize the supply chain.
Sudden drop in the supply chain issues to gain
Georgia Tech (Georgia Institute of Technology) DuPree College of Management and University of Western Ontario (the University of Western Ontario) survey conducted jointly by the neglect of the supply chain management requirements of this new enterprise will bring huge losses. They first raised in the survey, the failure of the supply chain will allow companies in the market value of the stock market fell 10%.
This led to more analysis. Decline in market value over the market reaction, or interruption of the supply chain to bring the real fallout? The result: the supply chain interruption of that year, the company's average operating income decreased by 107%, return on sales decreased by 114%, return on assets decreased by 92%.
The survey also shows that there is the issue of enterprise supply chain, sales growth of 7% lower than the average high cost of 11%, 14% of the excess inventory.
The researchers found that businesses recover from the supply chain failure, take a long time. Survey shows that companies that supply chain issues within the following two stages, its operating income, sales, total costs and inventories were not significantly improved.
"Interruption of the supply chain reduces the level of business operations, enterprises in the next few years will continue in the doldrums," DuPree School of Management, Professor of Operations Management Singh (Vinod Singha), said: "It's like heart disease, like blood flow will be interrupted, the supply chain failure will interrupt the flow of information or supplies. and heart disease similar, it will bring long-lasting business impact of health. "
Other key findings of the survey include:
* Difference is not important industry. High-tech field of supply chain failures are often more a matter of concern, but No matter what industry will be negatively affected.
* Small businesses were hit even harder. After the failure in the supply chain, the average operating income of small businesses will drop 150%, compared to large enterprises, the average income declined by only 86%.
* It does not matter who is at fault. Even the suppliers and customers supply chain caused by failure of business or be negatively affected.
To find the right solution
Georgia Tech University researchers provides more evidence that companies should be invested in the energy supply chain optimization, but how many people really listen to go out? "People talk about supply chain management, the most convinced of its importance, but they rarely put into action to optimize it," Singh said.
Another question: businesses often can not find the right supply chain solutions. Supply chain management has two elements - the efficiency and vigor, it may have been more concerned about efficiency.
"Even if the supply chain is efficient, if it is lack of energy, still may be problems," Singh said, "One reason is that the system lacked sufficient flexibility. Enterprises try to improve supply chain efficiency, they tend to remove them flexible, because it would cost a great cost. "
In Singh seems to grasp the opportunity to fix the supply chain is essential. "企业 Failure to make timely Fan Ying demand, customer's money and loyalty will 转向 elsewhere. This can lead to many of the cost of Zhixianshangsheng, such as shipping, transportation and customer claims and so on. Xinyu of Liu Shi Huan Ying Xiao costs may lead to the increase. "
Singh said the quick solution would be to avoid this issue to expand. Another important reason is: As the global supply chain is now quite common, so more companies the chance of supply chain problems also increased.
In order to reduce the frequency of problems and possibilities, the researchers recommend the following measures:
* Better predict and plan
* Collaboration with supply chain partners
Identify and track the supply chain can provide important early warning indicators of problems
* Contingency plans ahead of time