On the origin of SCM and its practice in manufactu

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Talking about the origin of SCM and its practice in manufacturing

the trend of global market competition has changed from the original competition between enterprises to the competition between supply chains. Therefore, for Chinese manufacturing enterprises, the implementation of SCM may be a choice sooner or later. Here the author introduces the steps of implementing SCM in general enterprises. It should be said that this implementation step is a relatively general division, but it is commendable that the author has made a detailed analysis of the problems that should be paid attention to in each step and how to solve the problems encountered, which is very operable

I. background of supply chain management

1 Global integration

looking at the development of technology and economy in the whole world, the degree of global integration is getting higher and higher, and transnational operations are becoming more and more common. In terms of manufacturing, the design of products may be in Japan, the procurement of raw materials may be in Chinese Mainland or Brazil, and the production of parts may be carried out simultaneously in Taiwan, Indonesia and other places, and then assembled in Chinese Mainland and finally sold all over the world. Before this product entered the consumer market, a considerable number of companies actually participated in the manufacturing of products, and due to different geographical locations, production levels, management capabilities, thus forming a complex product production supply chain. In the face of market demand fluctuations, once such a supply chain lacks effective system management, the "whip effect" will inevitably be amplified in all links of the supply chain, which will seriously affect the value output of the whole supply chain. Since the industrial revolution, the global production of products has become increasingly rich, and product consumers have more and more room to choose products, while technological progress has led to the continuous upgrading of some products (such as electronic products). The shortened product life cycle has led to the intensification of product demand fluctuations. The demand of market supply and demand pattern for the adaptability of supply chain has reached an unprecedented level. In the field of production management, demand-oriented "pull" production theory, JIT manufacturing theory, flexible production theory and so on have been put forward one after another, and have entered the practical stage

2. The development of horizontal industrial mode

carefully observing the emergence of personal computers in the 1980s and the subsequent development, we find that the development of PC manufacturing industry has not only brought progress in electronic product technology, brought the world into the information age, but also triggered great changes in the world industrial mode. Due to IBM's strategic mistakes, it ignored the strategic position of PC in the market. After formulating PC standards, it outsourced the R & D and production of CPU and OS, which belong to the core technology of PC, to Intel and Microsoft respectively. In just 10 years, these two companies have developed into world-class giants, monopolizing the manufacturing standards in the industry, and changing IBM's vertical industrial model that has lasted for decades, When IBM intended to enter the field of desktop operating system and microprocessor system again, and developed os/2 and power chips, hoping to be introduced to the desktop market, it suffered a painful failure. Gone are the days when IBM monopolized everything in the 1970s. When IBM realized that it no longer had advantages in this field, the continued cooperation with Microsoft and Intel made the horizontal industry model better developed. On the contrary, Macintosh monopolizes the production of its own hardware and operating system, but due to its incompatibility with IBM compatible computers, it has lost a large number of users who want to use some software on the windows platform, which limits its development

another example occurred in the automotive industry. In a similar era, the same changes took place. Auto parts suppliers separated from vehicle manufacturers and gradually formed some giants in the component manufacturing industry. This revolutionary model change is slowly going on all over the world, gradually making people realize that today it is almost impossible for a huge enterprise to control all links from the source of the supply chain to product distribution, but in every link, some enterprises occupy the core advantage, expand this advantageous position through horizontal development, and concentrate resources to develop this advantageous ability. The modern supply chain will be formed by these enterprises with core advantages and capabilities. At the same time, the theory of enterprise alliance and collaboration is being formed to support the formation and development of this stable chain structure

3. Enterprise x reengineering

review 11 years ago, Michael, Professor of computer science at Massachusetts Institute of technology Hammer and James of CSC consulting James Champy jointly published the declaration of business process reengineering revolution. The book pointedly points out the shortcomings of today's organization and management system - departmental segmentation and strict hierarchy, and gives the concept of BPR, hoping to break departmental boundaries and reshape enterprise processes. This era is the information age with rapid development of information technology. The biggest revolution in the information age is the application of computer networks, and the biggest change brought by computer networks is sharing. It is recognized that the boundaries between departments are caused by the monopoly of rights brought about by the monopoly of knowledge and data resources, and computer technology has broken this monopoly by making the operation of internal processes transparent through information sharing. In the early ERP project implementation, it failed because it did not realize the relationship between information technology and management organization change. When we talk about informatization today, we usually consciously mention BPR, which is the progress in concept. ERP, after all, only connects the enterprise itself. In the face of the tide of global integration and the development of horizontal industrial model, the enterprise has also realized that it is on a link of the supply chain, so it needs to strengthen the relationship between upstream and downstream while continuously enhancing its own strength. This relationship is based on mutual understanding and collaborative operation, Only when phase 4 is to develop bio based plastics and bring continuous value to each other, this relationship can be sustainable. In 2002, Qian PI came to light again, which was attributed to "enterprise x reengineering", providing advice on how to break through various boundaries between Cross organizations in the process of enterprise expansion. With the development of Internet technology, this concept of sharing and collaboration has also stepped out of enterprises. SCM we are talking about today is a practice to realize this concept

from the background of SCM, we can deeply understand the origin and trend of SCM development, so we need to pay more attention to the current application of SCM in practice. SCM system is the most important part, and the implementation of SCM system has also become the latest trend of enterprise informatization. The second part of this paper will discuss and summarize the general steps of SCM system implementation in manufacturing industry according to the basis of SCM concept connotation and the general methodology of information system implementation

second, the implementation of SCM in the manufacturing industry

in the practice of China's manufacturing industry, although SCM has received extensive attention and support from managers, its understanding is quite insufficient. Due to the close relationship between supply chain and logistics management, many people still view SCM simply from the perspective of logistics management. Referring to Ferguson (2000), he believes that SCM includes two very important points: first, SCM is a collaborative effort process of many enterprises and processes; Second, SCM covers the whole product life cycle, from the introduction of raw materials to customers' purchase of products. From this, we can see that SCM involves two major parts: internal comprehensive process management and external collaboration. The internal management of enterprises is usually solved by implementing ERP system. Therefore, the implementation of SCM pays more attention to the cooperation with the outside of the enterprise

as the domestic SCM market is not yet mature, there are not many successful cases. Next, the author will simply discuss the general steps and principles of SCM project implementation in manufacturing enterprises to make it coincide with the main target

the first step is self-examination, and everything is ready. SCM project implementation is not a trivial matter for enterprises. On the one hand, SCM project is a strategic project of enterprise development, which needs the support of strategic resources. On the other hand, SCM projects have huge investment, so the implementation risk is relatively high. Therefore, the author believes that the implementation of SCM requires manufacturing enterprises to have the following conditions. The first is to completely straighten out the internal processes and eliminate the obstacles between departments. Secondly, there is a certain foundation for information application, especially a well functioning ERP system. SCM needs to be expanded on the basis of ERP. SCM is not used to save an enterprise, but a sharp tool to support the further development of the enterprise. Thirdly, there is a strong financial background. Due to the large investment in the implementation of SCM, it is necessary to ensure a certain amount of working capital investment without affecting the normal operation of the enterprise. In this way, application enterprises should make a careful plan for fund-raising and capital return. Finally, it is necessary to determine more mature requirements, which are generally completed by the information department within the enterprise. Of course, you can also turn to the external brain. After repeated review, it is determined that the needs meet the strategic requirements. Only when these conditions are met can SCM projects be started

the second step is to look around and summon the east wind. Since the implementation of SCM is not a single project within an enterprise, the supply chain integration strategy establishes an integrated relationship between the enterprise and its supply chain partners in terms of information, capital, operation and decision-making flow. These partners may include retailers, wholesalers, outsourcing manufacturers, suppliers, logistics and other supply chain service providers. Therefore, the implementation of SCM should first clearly judge whether a relatively mature supply chain has been formed. When the judgment result is positive, it needs to be implemented in collaboration with partners to a certain extent, so as to ensure the effectiveness of project implementation. If you find that such an atmosphere does not exist in the surrounding environment, you must think twice and conduct an objective environmental assessment to see whether the best time to implement SCM projects has come. If not, you can consider how to take measures to promote the arrival of this time

the third step is to adopt the unit rotary design principle, with the top leader in the center. SCM is a strategic project, and the enterprise leadership must be the most active supporter of SCM. If there are differences of opinion within the leadership, the implementation of the project will fail. After the decision-making level of the enterprise determines that the project is feasible, it is necessary to appoint a representative of the leadership to take full charge of the project and establish a project committee. The project committee generally includes a person in charge, senior personnel of other partners, persons in charge of processes and functions, directors of information centers, etc. If a consulting company is selected, it often includes senior consultants of the consulting company. In the whole process of the project, this committee will play a decisive role in member communication, morale, direction, etc., so as to guide the whole project to success

step 4: Party A shall consult about the system selection. The type selection of SCM system is also an important step in SCM projects. At this stage, enterprises will decide whether to develop by themselves, adopt mature products, or customize development. If mature products are adopted, it is necessary to classify and compare the functional strengths, scalability, compatibility with the currently used system, industries familiar to the provider, and successful cases of the products in the current market. commonly

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