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Key issues in supply chain management



As a matter of fact, supply chain management is a complex system involving many enterprises with different objectives and involving all aspects of the enterprise, therefore, the implementation of supply chain management must ensure that it is necessary to clarify the thinking, prioritize and seize the key issues. Only in this way can we see the "trees", but also see the "forest", to avoid falling into the "trees, do not see the forest" or "only see the forest, do not see the trees" awkward situation. Not see the trees" embarrassing situation.

Specifically, in the implementation of supply chain management needs to pay attention to the key issues are as follows:

1. Reconfiguration of distribution network

Distribution network reconfiguration refers to the use of a manufacturing plant or several manufacturing plant products to serve a group or several groups of geographically dispersed channel business, when the original demand pattern changes or changes in external conditions caused by the need to adjust the distribution network. This may be due to the termination of the existing several warehouse lease contracts or the number of channel business changes such as increase or decrease.

2、Distribution strategy issues

Distribution strategy is also very critical in supply chain management. Adopt direct transshipment strategy, classic distribution strategy or direct transportation strategy? How many transshipment points are needed? Which strategy is more suitable for most of the node enterprises in the supply chain?

The so-called direct transit strategy is a strategy in which the end channels are supplied with goods from a centralized warehouse, which acts as a regulator of the supply process and as a transit point for orders from external suppliers, without keeping inventory itself. The classic distribution strategy, on the other hand, involves keeping inventory in the central warehouse. The direct transportation strategy, on the other hand, is relatively simpler and refers to a distribution strategy where goods are shipped directly from the supplier to the end channel.

3、Supply chain integration and strategic partners

Due to the dynamic nature of the supply chain itself and the existence of conflicting objectives among different node enterprises, it is quite difficult to integrate the supply chain. However, practice shows that the integration of the supply chain is not only possible, but it can have a significant impact on the sales performance and market share of the node enterprises. So what is the key to integrating the supply chain? Information sharing and operational planning! Obviously, what information should be shared, how to share, how the information affects the supply chain design and operations; what level of integration between different node enterprises, what types of partnerships can be implemented, etc. has become the most critical issue.

4、Inventory control problems

Inventory control issues include: how much inventory should a terminal channel hold for a particular product? Should the order quantity of the terminal channel be greater than, less than or equal to the forecast demand? What inventory turnover rate should the end channel use? The goal of the terminal channel is to decide at what point to order another batch of products, and in order to minimize inventory ordering and storage costs, how many products should be ordered.

5、Product design

It is well known that effective product design plays a key role in supply chain management in many ways. So when is it worthwhile to design products to reduce logistics costs or shorten the supply chain cycle, whether the product design can make up for the uncertainty of customer demand, in order to utilize the new product design, what kind of modification should be made to the supply chain and so on these issues are very important.

6. Information technology and decision support system

Information technology is a key factor contributing to effective supply chain management. The basic problem of supply chain management lies in what data should be transmitted? How to analyze and utilize the data, what is the impact of Internet, what is the role of e-commerce? What is the role of e-commerce? Can information technology and decision support systems be used as the main tools for companies to gain a competitive advantage in the market?

7、Measurement of Customer Value

Customer value is a measure of a company's contribution to its customers, based on the total goods, services and intangible impacts provided by the company. In recent years, this indicator has replaced indicators such as quality and customer satisfaction.


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