Similarly, in order to distinguish the development level and maturity of the supply chain, it is divided into five levels. They are original supply chain, primary supply chain, integrated supply chain, collaborative supply chain and intelligent supply chain;
The core of upgrading the original supply chain to the first-class supply chain is the specialized division of functions.
Cross-departmental process construction is the core of upgrading the first-level supply chain to the integrated supply chain.
The core of promoting the upgrading of integrated supply chain to collaborative supply chain is the leadership in supply chain.
The core of driving collaborative supply chain to upgrade to smart supply chain is the application ability of new technologies.
First, the original supply chain
Not only in primitive society.
When did the supply chain appear? I'm afraid it goes back to ancient times.
The earliest commercial form of human society is barter: "You just have what I need, and I also have what you need. Let's make an exchange."
However, barter is not a supply chain because it lacks a key element in the supply chain: capital flow.
At the end of primitive society, money came into being. Although the appearance of money at that time was very different from that of money now, such as shells and pearls, it did not weaken its function at all: because of money, commodity circulation was carried out on a large scale, thus forming a real supply chain. At this time, the supply chain still lacks real management, which is characterized by randomness and dispersion, and is in an unconscious primitive stage, so the author calls it "primitive supply chain management form" or "primitive supply chain" for short.
However, it is not only the primitive society that has the primitive supply chain. Even today, this primitive supply chain can still be seen everywhere. For example, the owner of a small restaurant often shop around and bargain when he goes to the vegetable market to buy food. No matter what food they finally buy and what business they choose, they have a strong randomness, no standardized performance appraisal, no systematic information record, not to mention effective internal and external coordination.
In addition to small restaurants, the supply chain management of most couples' stores is also at this level. According to statistics, there are about 6 million retail stores in China, and most of the management models are still in a very primitive stage. It is precisely because of this that Alibaba Group established the Retail Division, aiming at empowering millions of small stores through rich commodities, professional services and global data, and promoting the upgrading of the industry supply chain.
Second, the primary supply chain
"Quarrel" is the most important survival skill
"Primary supply chain management form" is referred to as "primary supply chain".
From the unconsciousness and randomness of the original supply chain to the first-level supply chain, the most significant change is the so-called division of functions, and the positions responsible for planning, purchasing, production, logistics, warehousing and other functions are in their respective positions.
However, in the form of primary supply chain management, there is a lack of effective communication between these positions, and individual combat is the biggest feature of this supply chain. In the author's monograph "Supply Chain Architect", the "barn effect" and "dragon effect" have been mentioned. Between posts, departments and departments, due to different responsibilities and goals, everyone actively isolates themselves and pays attention to self-protection and self-realization, just like in an unconnected barn, only a small piece of sky above their barn can be seen. Some barns are full and see a bumper harvest, but the barn next door is still empty, fearing that there may be a famine this year. This is like a dragon, seeing the head but not the tail, or seeing the tail but not the head.
Primary supply chain is the most common form of supply chain management today. On the surface, as long as the division of responsibilities among all departments of the enterprise is clear, everyone can be guaranteed to perform their duties and do their best to achieve efficient management. However, if there is no effective communication mechanism within the enterprise, information will not flow smoothly, let alone cooperate.
In the first-level supply chain enterprises, the most common situation is that departments pass the buck to each other. From department managers to ordinary employees, they are practicing "fighting kung fu" day after day to see who is louder, who will be more "reasonable" and who will "grab resources" Of course, we can't blame them, let alone laugh at them.
Because any department has its own clear responsibilities and tasks, and has its own departmental indicators, but these tasks, responsibilities and goals lack coordination and even conflict with each other. Therefore, "quarreling" has become an important ability for managers and employees to survive in this system. Who won't quarrel? He must be the one who suffers!
Third, integrate the supply chain
Sugar-coated haws must be strung together to eat.
"Integrated supply chain management form" is referred to as "integrated supply chain".
From the functional division and departmental isolation of the primary supply chain to the integrated supply chain, the most significant change is the formation of an effective cooperation mechanism within the enterprise, which relies on cross-departmental processes.
Planning, purchasing, production, delivery and return are called the five major processes of the supply chain. In SCOR (Supply Chain Operation Reference Model) of SCC (International Supply Chain Council), these five processes are called first-level processes. From this layer to the executable process element layer.
In addition, there are other classification methods of supply chain processes in the industry, such as "from planning to production P2M (planning to manufacturing)", "from purchasing to payment P2P (purchasing to payment)", "from order to cash O2C (order to cash)", "from problem to prevention I2P (problem to prevention)" and so on. These processes can also be extended from the first layer down to the factor layer to guide enterprises how to implement them concretely.
However, it is of little significance to simply talk about the process of independence. If there is no effective connection between processes, these processes are like scattered candied haws, which are delicious but not easy to take. So we need a bamboo stick to string them together.
This bamboo stick has two dimensions for enterprises. This point is explained in detail in the author's monograph Supply Chain Architect.
The vertical dimension is from strategy to operation. Supply chain strategy is the secondary strategy of enterprises, which needs to serve the competitive strategy of enterprises. If the enterprise's competitive strategy is not clear, the supply chain strategy will have no direction; Or the two don't match, even the best competitive strategy, supply chain strategy and operation can't keep up, and enterprises can't operate efficiently.
The horizontal dimension is the internal sales, planning and operation collaborative platform S&; Op. It breaks down the barriers between departments and coordinates the different goals of each department around the supply chain strategy. Even if the wrong decision is made, the internal S&; The OP platform also has the function of self-repair, which ensures the correctness of the direction through continuous fine-tuning and forms a dynamic coordination system.
Demand and supply are the two ends of the supply chain and have different pursuits. Demand side pursues individuation and supply side pursues low cost, so the profit point of the enterprise appears on the dynamic balance point of the two. From a macro perspective, the vertical strategy of an enterprise determines the scope of the equilibrium point, while from a micro perspective, the horizontal strategy of an enterprise determines the scope of the equilibrium point; The OP platform determines the specific position of the balance point.
"Integrated supply chain" solves the problem of cooperation among all departments within the enterprise, but how to break through the four walls of the enterprise and form effective cooperation between upstream and downstream of the supply chain needs to raise the supply chain of the enterprise to a new height and enter the "collaborative supply chain management form".
Fourth, collaborative supply chain.
You must have charm.
"Collaborative supply chain management form" is referred to as "collaborative supply chain".
From the functional cooperation of supply chain and the integration of departmental communication to collaborative supply chain, the most significant change is that enterprises and the upstream and downstream of supply chain have also established an effective collaborative mechanism, which can make the physical logistics, information flow and capital flow in the supply chain flow smoothly.
It should be emphasized that from the integration level to the synergy level, the decisive factor is not technology or process, but leadership!
There is a simple reason. The process integration within an enterprise can rely on the authority of power and the instructions and orders from superiors to subordinates. Although leadership is also needed, even if leadership is insufficient, it can be forcibly promoted as long as the direction is correct. However, when enterprises face other upstream and downstream partners, it is impossible to form an effective coordination mechanism only by relying on power and authority. At this time, the leadership of the CEO or chairman of the enterprise management has become the key to determine the success or failure of the supply chain upgrade.
There are often one or even several leading entrepreneurs behind excellent supply chain enterprises. Henry Ford (Ford Motor Company), Taiichi Ono and Akio Toyoda (Toyota Motor Company), Armancio Ortega (ZARA), Mike Dell (Dell), (Amazon), Liu Chuanzhi (Lenovo) and Ren Zheng Fei (Huawei). ...
In the process of upgrading the supply chain, whoever dominates the construction of the connection will have the greatest right to speak. Therefore, Alibaba has positioned the theme of its "Smart Logistics Forum" on the keyword "connection". 20 16 is "reconnection" and 20 17 is "connection upgrade".
The construction of connection needs to do three things, namely, the three goals of supply chain leadership.
First, point out the direction: formulate the vision and strategy of the supply chain;
Second, coordination and unification: let the upstream and downstream partners of the supply chain take risks and enjoy the benefits;
Third, get commitment: encourage supply chain partners to make continuous efforts to realize their vision and strategy.
Easier said than done! "Connecting" is the most difficult step in the process of upgrading the supply chain! Because the foundation of connection is never static, it will bring a series of new challenges with the fluctuation of market environment, the adjustment of government policies, the upgrading of customer demand and the transformation of the strength of upstream and downstream partners. Therefore, this connection is dynamic, difficult to grasp, and requires high leadership. There is no doubt that connection must be the general trend! The power to dominate the connection is a battleground for military strategists!
Verb (abbreviation of verb) intelligent supply chain
Eye-brain-body coordination
In today's era, new technologies such as big data, artificial intelligence, robots, drones, Internet of Things, VR/AR, and blockchain are emerging one after another, which is dazzling and confusing. Without a pair of discerning eyes, a clear brain and a flexible body, it is useless to invest more money to develop or buy advanced technology, and it is also worthless to build a real smart supply chain.
Only when the application of technology focuses on three major goals can the collaborative supply chain be truly upgraded to a smart supply chain. These three goals are: popularity? Visualization (eyes), perceptual perception (brain), adaptive adjustment (body). In the book Supply Chain Architect, the author calls it VSA principle.
Three goals of intelligent supply chain
Eye: There is a concept in supply chain management called end-to-end. The upper end extends to raw material procurement, first-class, second-class, third-class and N-class suppliers until Mother Earth, and the lower end extends to first-class, second-class, third-class and N-class dealers until end users. For enterprises in this long chain, there is a so-called "dragon effect": it is like a dragon shuttling through the clouds, either the dragon can't see the end or the tail can't see the whole picture at all, that is, the degree of visualization is not high. If you can't see the whole picture of the supply chain clearly, wisdom is even more out of reach. Therefore, the smart supply chain must first be visible. Visualization not only refers to the visualization of real logistics, but also includes the visualization of information flow and capital flow, and the interaction and matching relationship between the three streams should be visible.
Don't underestimate this visualization. It is no exaggeration to say that even the top 500 enterprises in the world today cannot achieve 100% visualization. People's problems, process problems and IT system problems are often intertwined. People, processes and tools are called PPT of supply chain management. In visual design, we need to consider how to distinguish PPT reasonably, so as to facilitate the follow-up problem tracking and improvement.
Perceived sensibility (brain): "Perceived" refers to whether we have the ability to quickly capture problems in the supply chain system and send signals and early warnings for the next step. Perception is different from visualization, but it is based on visualization. Visualization is like the camera we installed in the mall. How wide its coverage is and how high its definition is, it shows how high our visualization is. However, only a full-coverage camera does not guarantee that the mall will not lose anything, and it needs to be "perceivable". "Perceptible" is like adding a dynamic image capture system to the camera, which can analyze suspicious events, timely warn and report risks.
In the supply chain architecture, "perceptibility" refers to a series of management processes inspired by events, that is, when event A occurs, action B is triggered and a series of corresponding actions follow. For example, an earthquake in a global supply source region triggered the emergency mechanism of the supply chain, and the supply chain crisis handling team would quickly issue a supply chain crisis warning within the enterprise.
Therefore, the perceptual premise is that we need a perfect evaluation and monitoring index system. This is like establishing a set of neural networks in the supply chain, which makes the supply chain have the perception ability.
Adjustable body: Smart supply chain should be not only visible and tangible, but also adjustable. Simply put, you can see (see) and feel (feel), but if you can't react and adjust (adjust) in time, the previous visibility and perception will lose its meaning.
The adjustability of supply chain is also called flexibility. A good supply chain architecture design should follow the structural or modular design principles, and the internal logic of the system is clear and extensible. When the customer's demand and market conditions change, the supply chain system can respond and adjust quickly.
For example, after sensing the above-mentioned earthquake, the emergency team will inform the relevant departments to form a task force, and the team members will deal with it according to the relevant emergency procedures, such as activating standby suppliers or using standby raw materials, and even quickly organizing teams to buy and hoard spot raw materials in the market.
The supply chain that lacks adjustability (flexibility) will face a huge crisis at this time. Even if it knows the crisis, it is unable to make any adjustment, or it is very difficult and costly. In the face of crisis, enterprises can only be passively beaten and helpless.
New technology and intelligent supply chain
After understanding the three goals of smart supply chain, we look back at a series of hot new technologies and put them into the corresponding goals, as shown in the figure. (Note: The position of new technologies in the table will be slightly different due to different industries).
This table only lists some new technologies that are developing and maturing rapidly at present. As you can imagine, new technologies will continue to emerge, and the new technology items on the left side of the form will be constantly updated, but no matter how the technology changes, the three major targets VSA at the top of the form will remain unchanged.
So, what is the application value of this form? There are two directions for your reference.
One is the application sequence of technology, and the other is the application cost of technology.
From the application sequence of technology, from visualization to perceptibility to adjustment, it is a progressive relationship, the former is the basis of the latter.
For example, to apply big data to demand planning and forecasting, we must first focus on data visualization (V), that is, how to capture data, structured data processing and data storage, which are the foundations. Then the prediction model of the data is established, and on this basis, the perception ability (S) is established.
For another example, drones can improve the flexibility of the supply chain, that is, the adjustment ability (A), but if the supply chain is not visualized (V) and perceptible (S) first, it will not be able to intelligently drive drones to work. At this time, the drone is just posing. Only there is no one on the drone, and others are everywhere. Such a scene is extremely ridiculous. Enterprise's resources and funds are limited, and intelligent deployment in the order of VSA will play a multiplier role.
Considering the application cost of technology, new technology has a life cycle from emergence to maturity. For example, artificial intelligence, from IBM's deep blue PK world chess master to Google's alpha dog killing top Go master, has recently been reported that alpha dog will quit the chess world and focus on more valuable scientific and technological fields such as cancer treatment in the future. The power of artificial intelligence is increasing day by day. With the continuous development of artificial intelligence, its application cost will gradually decrease. Robots are an excellent example. In the past, millions of industrial welding robots can now be bought as small as hundreds of thousands. Enterprises should invest in the field of intelligence, don't be too aggressive and don't stop. The best way is to keep up with the technology, run in small steps and invest gradually.
To keep up with technology, we need our supply chain managers to participate in more forums, visit more enterprises, learn from advanced industries, have an open mind and don't build cars behind closed doors; Small-step running is to decompose the promotion of intelligent supply chain into many small sub-projects, which are unified, coordinated and implemented separately, and the pace is fast but not big; Step-by-step investment is to follow the VSA principle, from visualization to perception to adjustment, step by step investment, and gradually realize the intelligence of the whole system.
abstract
Clear objectives, accountability and escalation.
From the original supply chain to the smart supply chain, it is like upgrading a monster. Every level has a powerful monster waiting for you; It's like climbing a step. The next level is the foundation of the previous level, and the previous level is the goal of the next level. If the foundation is not firm, the steps will collapse; The goal is too high to cross.
So how to determine the goal and upgrade? We can summarize as follows:
The core of upgrading the original supply chain to the first-class supply chain is the specialized division of functions.
Cross-departmental process construction is the core of upgrading the first-level supply chain to the integrated supply chain.
The core of promoting the upgrading of integrated supply chain to collaborative supply chain is the leadership in supply chain.
The core of driving collaborative supply chain to upgrade to smart supply chain is the application ability of new technologies.
Therefore, we first need to judge the maturity level of the supply chain where the enterprise or platform is currently located (judgment level); Secondly, according to the maturity level of supply chain, set the direction of advanced upgrade (clear goal); Finally, the maturity of the supply chain is improved (steadily improved) through the lack of capacity building.
It should be noted that an enterprise or platform may have multiple supply chains, and different supply chains have different maturity and need to be treated separately; In addition, even within the S& level, it can continue to be subdivided. For example, the process maturity of S & ampOP can be subdivided into five levels.
From primitive supply chain to intelligent supply chain, we need a pair of sharp eyes (finding problems), an intelligent mind (defining goals) and a flexible body that can work with eyes and brains (supply chain coordination is the key). Eye-brain-body coordination, pursuing smart supply chain is no longer just a dream!