Shanxi Hongsheng Chemical
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Operational mechanisms of supply chain management



(i) Cooperation mechanism

Supply chain cooperation mechanism embodies the strategic partnership and the integration and optimal use of internal and external resources. Based on this enterprise environment, the product manufacturing process, from product research and development to the market, the cycle is greatly shortened, and customer-oriented (customization) to a higher degree, modularization, simplification of products, standardized components, so that the enterprise in the changing market flexibility and agility significantly enhanced, virtual manufacturing and dynamic alliances to improve the business outsourcing (outsourcing) strategy to take advantage of the degree. Virtual manufacturing and dynamic alliances have increased the utilization of outsourcing strategies. The scope of enterprise integration has been expanded, from the original low-level internal business process reengineering to inter-enterprise collaboration, which is a higher level of enterprise integration mode. In this kind of enterprise relationship, the market competition strategy is the most obvious change is based on the competition of time (time-based) and value chain (value chain) and the value of the transfer system management or value-based supply chain management.

(ii) Decision-making mechanism

As the source of decision-making information of supply chain enterprises is no longer limited to within an enterprise, but in an open information network environment, constantly exchanging and sharing information to achieve the purpose of synchronized and integrated planning and control of supply chain enterprises, and with the development of EDI, Internet/Intranet as the new enterprise decision-making support information base platform, the decision-making mode of the enterprise will produce a great change. Therefore, the decision-making mode of any enterprise in the supply chain should be based on the group decision-making mode in the open information environment of Internet/Intranet.

(III) Incentive mechanism

In the final analysis, supply chain management and any other management idea is to make the enterprise in the competition toward the 21st century in the "TQCSF" on the best performance (T for the time, refers to the fast response, such as short lead time, rapid delivery, etc.; Q refers to the quality, meaning that the product, the work and the high quality of service;; C for the cost of enterprises to To obtain greater benefits with less cost;; S for the service, the enterprise should continuously improve the level of user service, improve user satisfaction; F for flexibility, the enterprise should have a better ability to adapt). The lack of balanced and consistent supply chain management performance evaluation indexes and evaluation methods is one of the weaknesses of the current supply chain management research and one of the main problems leading to the inefficiency of supply chain management practice. In order to master the technology of supply chain management, it is necessary to establish and improve the performance evaluation and incentive mechanism, so that we know what aspects of supply chain management ideas, to what extent to give the enterprise improvement and enhancement, in order to promote the enterprise management work to continuously improve and enhance the supply chain management to be able to move in the right track and direction of development, and really become a new management mode that enterprise managers are happy to accept and practice.

(IV) Self-regulation mechanism

Self-discipline mechanism requires supply chain enterprises to align themselves with the leading enterprises or the most competitive rivals in the industry, and constantly evaluate and improve their products, services and supply chain performance in order to maintain their competitiveness and sustainable development. Self-regulation mechanism mainly includes internal self-regulation, self-regulation against competitors, self-regulation against peers and self-regulation against leading enterprises. Through the implementation of self-regulation mechanism, enterprises can reduce costs, increase profits and sales, better understand the competitors, reduce user complaints and improve customer satisfaction, increase credibility, the performance gap between departments within the enterprise can also be narrowed to improve the overall competitiveness of the enterprise.


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