供应链SCM管理战略研究assignment

供应链SCM管理战略研究assignment

现代商业社会里，供应链管理（SCM）对全世界的企业和行业都有着重要影响。如果这个企业想要实现可持续发展，保持自己利润的持续增长的话，经营战略就不能只包括提升产品质量，还要更多的关注供应链整合问题，从供应商到零售商和顾客。很多专家针对供应链管理给出了自己的意见理解：

斯莱克认为，供应链管理的概念是一种很好的管理方法，可以从上游的供货商到下游的客户，，通过整合链条实现商业价值最大化。希尔则认为，供应链管理是从传统组织模式到整个融合性管理过程的巨大的、复杂的转变，涉及到了成本与市场。乔普拉指出，供应链不仅连接起了供货商，制造商，也包括零售商，批发商和客户。他还强调，供应链是一股流动的过程，从原材料到货物再到客户。供应链的管理工作，是能够提升企业效率和满足顾客需求的管理技巧。

根据以上的一些理解，供应链是一种新的商业管理关系，重点关注的是企业之间从需求到供给的整合能力。这条供应链中的关系主要包括采购、生产，逻辑和信息科技，不仅能够提高产出效率，还能优化市场，平衡企业竞争状况。

In the present age, supply chain management (SCM) is playing increasingly important roles in many enterprise and industries around the world. If the business want sustainable development and continues improve its profits, the operation strategy not only maintain the quality of products, but also need focus more on its supply chain integration from its suppliers or venders to retailers or customers. Many experts give their perspectives of supply chain management as following:

Slack et al. [1] claimed that the concept of supply chain management is a well management approach to integrate its chain which can create the optimum value of business from upstream of suppliers or vendors to downstream of customers. Hill [2] asserted that the supply chain management is a considerable complex from traditional organizational models to entire process integration management which related to its cost and market. Chopre et al. [3] point out that the supply chain is a process which links not only the suppliers, vendors, manufacturer but also retailers, distributors and customers. Adebanjo [4] also emphasized that the supply chain is a flow which surround the network from the procurement of raw materials to goods for customers. Adebanjo [2] also explained that supply chain management which is a management technique used to improve efficiency of business and satisfy customers’ requirement.

According to these perspectives from above, supply chain management is a new business partnership, focus more on integration abilities of demand and supply between enterprise and enterprise. The chain relationship involves procurement; production, logistics and information technology which are not only improve the performance of business but also advantages of market but also enhance the competitiveness of enterprises. Indeed, the more complete supply chain systems which will let the enterprise become an order winner of its market can achieve the best performance of profit, quality and customer service. Compared with individual enterprise, they do not have a efficiency approach to integrate its chain relationship which might cause bullwhip effect and low competitive strength.

Basically, the intelligent of the supply chain management is a critical issue and also be needed in 21 century’s global market including retail. This essay will through a real world’s retail company called Wal-Mart to discuss the importance of supply chain management and look at some future trends operations strategies.

Supply Chain Management of Wal-Mart

Wal-Mart which is a success retailer of the world is from south of the U.S.A. in 1962. An unwavering commitment of a great service and the lowest price everyday make Wal-Mart has an amazing growth of its business. Beside that, successful supply chain management of Wal-Mart not only reduces operation cost of Wal-Mart but also increase amount of sales and inventory turnover. According to the article [9][10][11], there are three vital parts of it supply chain life cycle which make Wal-Mart become the largest retailer around the world including purchasing, production and logistics as following.

(1) Purchasing

Wal-Mart through the centralized purchasing reduces the cost of its products. In addition, Wal-Mart adopts a strategy of globalization procurement which can also improve strength of its global competitiveness and reduce cost of procurement.

(2) Production

Wal-Mart adopted a collaborative planning, forecasting and replenishment (CPFR) model from upstream to downstream. In the stage, the role of Wal-Mart is not only a retailer company which means waiting for distribution from suppliers or vendors, but also directly involved in the production plan of its suppliers or vendors including products development plans, delivery cycles and innovation projects. In addition, Wal-Mart also applies a model of vendor management inventory (VMI) of its chain relationship. There are some significant advantages of using a model of vendor management inventory (VMI). First of all, VMI helps Wal-Mart to reach safe inventory which can decrease the problem of out of stock. Secondly, supplier or vendor can enhance its production rate by VMI because the information of demand and supply can be predicted more accurate. Thirdly, the effect of bullwhip can be decreased by VMI in Wal-Mart’s supply chain because of information integration and exchange. Finally, VMI bring more effectively supply chain management of Wal-Mart’s business which also make a high Satisfaction of it service of customers.

(3) Logistics

Logistics which is a transportation process of products or resources from one location to the other one such as distribution center to stores or supermarkets to customers [3]. As can be seen form the explanation above, logistics can be seen a vital element of supply chain management. In case of Wal-Mart, logistics is putted on a vital factor of its supply chain. First of all, Wal-Mart outsourced an efficient private trucking fleet which delivers products or resources from distribution center to distribution center or from distribution center to supercenter. Secondly, in order to dispatch large scale commodity procurement, inventory and logistics, Wal-Mart use the technology of communications satellite, GPS and digital electronic traffic maps to provide the best route of transportation and control the status of its delivery which bring a considerable increase of efficiency of its distribution systems. A world-class advanced technologies of Wal-Mart’s logistics not only helps Wal-Mart obtains a well inventory management but also make its distribution system become better than better.

To sum up above, the success of Wal-Mart’s past and future relate to its complete supply chain management strategies and integration because the main value of the supply chain is how to send good products into markets with a faster speed and the lowest prices.

On the other hand, individual businesses that do not have a complete plan of supply chain management will not become an order winner. In the early 1990s, P&G used an old model of its supply chain that causes significant problems of it business including a big gap of demand and supply. These problems let P&G knew that the integration of information and supply chain management from upstream to downstream is better than historical sales data own its own [12]. These problems also encouraged P&G toward success supply chain management and data integration which not only help P&G to reach the aim of better demand forecast but also make high profit of its business. As can be seen from this case, through supply chain management to integrate chain relationship is essential to enterprise and that the advantages to supply chain partnership are far greater than individual enterprise.

Future trends

In my opinion, a future trend of supply chain management will focus more on business sustainable supply chain strategy (green supply chain strategy) or e-Business. In the following parts, I will discuss the sustainable operation strategy which has done of Wal-Mart.

Nowadays, the issues of environmental is increasingly severe around the world, it will also bring a huge and long term impact of business operation. If the product could not meet international environmental requirements, it will not enter the global market; even low-cost strategy is used. Indeed, the business sustainable means the enterprise focus more on how to reduce the effect of environmental and obtain the highest efficiency of resources in entire supply chainlife circle.

According to the article [5], Jonathan Dong (Wal-Mart’s director of public relations) said that “Sustainability will be a differentiating factor between a good enterprise and a great one”. In order to become a worldwide leader of retailer industry, Wal-Mart set up some aims of business sustainable including energy saving and efficiency of its logistics while it’s also adopted some sustainable operations strategies such as supplier selection and innovation projects [5]. There are some significant benefits from these aims and strategies as following.

First of all, Wal-Mart builds sustainability measure tools which involved the Restriction of Hazardous Substances (ROHS) compliance and standard for its suppliers and vendors selection and material quantities of purchase. It not only pushes its supplier towards sustainable development but also increase the performance of business sustainable of its supply chain management. Secondly, in case of Wal-Mart’s sustainable logistics centers, the energy can be saved up to 30 per cent by T5 light bulbs; electronic energy can be saved up to 7,300 kilowatt per year by its solar cells and wind power generators; electronic energy can also be saved up to 25,550 kilowatt per year by its solar energy which responsible for provide hot water. Thirdly, Wal-Mart through some prizes including special express check out line encouraged to use reusable shopping bags. Lastly, the concept of sustainable products be used in food, electronics, textiles and packaging by Wal-Mart. It also let Wal-Mart become a main organic milk retailer and the biggest organic cotton’s purchaser. Wal-Mart has believed that the operations strategy of business sustainable not only can bring enormous business of its markets but also create a loyal brand of its customers [5].

Chase et al. [7] claimed that information sharing action which is one of a key factor of business’ supply chain management is a trend of enterprise who wants to become a world class enterprise. As a result, the technique of e-Business which has advantage of data exchange, communication integration and sharing process between internal and external might become a critical process of business and on of the options of business in the future. Drake [8] point out that e-business of supply chain will bring some significant benefits of both upstream and downstream. In views of upstream, information of demand and inventory can be update accurate which is a very important parts to reduce the effect of bullwhip. In addition, internal strategies and external requirements can be integrated very fast to its suppliers or vendors which can enhance the visibility of supply chain. Additionally, learned experience also can be shared. In views of downstream, the situation of products tracking and selling directly can be implemented more efficiency. It can be concluded from above that through e-Business to reach cooperation and information sharing between business and business can result in great benefits.

Conclusion

In conclusion, the goal of supply chain management is to create the best value for its customers and chain members such as suppliers, manufacturers and wholesalers. Thus, no matter the past or the future, the supply chain has always played an important role of enterprise competition. In the past, only has the effective integration of supply chain from upstream to downstream, it made the enterprise become an order winner or a worldwide leader. In the future, only combine the concept of environmental protection, business sustainable and e-Business of entire supply chain members; it will not only really reach sustainable development of the enterprise but also maintain a long term competitive strengths of the enterprises.