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Several issues that need to be resolved when implementing supply chain management

Several Problems to be Solved in Basenton Logistics’ Implementation of Supply Chain Management

At present, if enterprises want to implement integrated supply chain management, they must face and solve many problems.

Issues related to the supply chain mainly includ

Issues related to the supply chain mainly include:


• The high cost of the supply chain (approximately 5% to 20% of net sales value)
• The inventory level is too high (the inventory level is often maintained at 3 to 5 months)
• Conflicts between departments
• Target reconstruction
• Shorter product life cycle
• Increased external competition
• Increased uncertainty in economic development
• The impact of prices and exchange rates
• The diverse needs of users, etc.


To solve these problems and truly realize integrated supply chain management, enterprises must carry out

Changes in the following aspects:


(1) Enterprises should start from the overall supply chain and consider the internal structure of the enterprise
Optimization;
(2) Enterprises should change their thinking mode, from vertical one-dimensional spatial thinking to vertical-horizontal multi-dimensional spatial thinking;
(3) Enterprises should abandon the closed business philosophy of “small and complete, large and complete”, and transform to a complementary and cooperative relationship that establishes strategic partnerships with related companies in the supply chain as a link;
(4) The enterprise shall establish a distributed and transparent information integration system to maintain the smoothness and transparency of information communication channels;
(5) All people and departments should have a common understanding and understanding of common tasks, remove departmental obstacles, and implement coordinated work and parallel operations;
(6) Risk sharing and benefit sharing.

Steps to realize integrated supply chain management


The transition from a traditional management model to an integrated supply chain management model for an enterprise generally goes through five stages, including from the lowest level of infrastructure construction to the highest level of integrated supply chain dynamic alliance. The differences in each stage are mainly reflected in the organizational structure. , Management core, planning and control system, applied information technology, etc.

Infrastructure

This stage is to analyze and summarize the current situation of the enterprise on the basis of the original enterprise supply chain, analyze the resistance and advantages of the enterprise’s internal supply chain management, analyze the external market environment, and analyze and evaluate the characteristics and uncertainties of the market , And finally improve the supply chain of the enterprise accordingly.

In the traditional supply chain, the functional departments of the enterprise disperse and independently control different businesses in the supply chain. The organizational structure of the enterprise is relatively loose. The supply chain management at this time mainly has the following characteristics:


• The core of the company focuses on product quality. Because too much emphasis on the quality of production, packaging, delivery, etc. may lead to excessive costs, the goal of the company is to produce high-quality products at the lowest possible cost in order to solve the cost-benefit barrier.

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