CSCMP mentioned the following points when answering the importance of supply chain:
First of all, who is the following CSCMP?
The full name of CSCMP is Supply Chain Management Professionals Committee, which was established in 1963 and headquartered in Chicago, USA. It is the most influential professional association in the world. As a platform for gathering global supply chain thought leaders, the association is in the position of defining industries and leading the way. With the aim of connecting and educating global supply chain managers, becoming a member of the association and a symbol of entering the professional field of supply chain management. In September, 2002, CSCMP Headquarters announced and approved the establishment of CSCMP China Roundtable, and authorized Dr. Wang Guowen as the chief representative of China District. The representative office is located in Beijing, China, which is the 79th branch of the Roundtable in the world.
CSCMP China is committed to introducing the latest research results, latest development trends, industry experts and intellectual resources of the international supply chain in China to China. At the same time, we will recommend China's excellent supply chain enterprises and cases to the world, promote the communication and exchange between China's supply chain field and the international community, and let China's supply chain management share their development experience and enjoy more international advanced experience and theoretical research results.
Importance of supply chain management
As we all know, supply chain management is an inseparable part of most enterprises, and it is an essential key link for the company to succeed and improve customer satisfaction.
customer experience
Customers expect to get the products they want in time and accurately.
Customers expect products to be provided in time (for example, the auto repair shop has no spare parts in stock and can't repair your car), and customer satisfaction will be reduced?
Correct delivery time-customers need products to be delivered on time (for example, the lunch ordered by customers online is two hours late or the birthday gift for their loved ones is not delivered on the same day), so customer satisfaction will be reduced.
Perfect after-sales service-customers need perfect after-sales service (for example, in hot summer, there is something wrong with the air conditioner at home, and the manufacturer fails to provide maintenance service in time), so customer satisfaction will be reduced.
Reduce operating costs
Reduce procurement costs: Retailers avoid paying high inventory costs by delivering products quickly (for example, electronic product suppliers need to deliver 60-inch flat-panel plasma HDTV quickly to avoid paying unnecessary inventory costs).
Reduce production costs: manufacturers rely on reliable partners in the supply chain to provide materials for the assembly plant, so as to avoid stopping production due to material shortage (for example, if the automatic assembly plant stops production due to the delayed shipment of a component, it may cost $20,000 per minute, and the lost wages will exceed $/kloc-0.0 million per day).
Reduce the total cost of supply chain: suppliers and retailers depend on the supply chain manager, how to design a product to meet the needs of customers with the least total cost. Efficient supply chain design makes the company more competitive in the market. For example, Dell's revolutionary computer supply chain solution includes manufacturing each computer according to a specific customer's order and then delivering the computer directly to the customer. As a result, Dell can avoid storing a lot of computer inventory in warehouses and retail stores, thus saving millions of dollars. In addition, due to the rapid upgrading of electronic products, Dell has also solved the inventory problem of outdated products caused by outdated technology.
Improve financial situation
Increase profit leverage: At present, enterprises attach importance to supply chain management because it can control and reduce supply chain costs and greatly enhance the company's profit space. For example, American consumers eat 2.7 billion bales of corn every year. If each package of corn can be reduced by 1 cent through the optimized design of supply chain process, the cost will be saved by130,000 USD. )
Reduce fixed assets: At present, enterprises attach importance to supply chain management because it can reduce the investment and use of large fixed assets such as factories, warehouses and transport vehicles in the supply chain. If supply chain management professionals provide accurate services to customers by optimizing supply chain processes. Then the company will reduce the investment in fixed assets.
Increase cash flow: At present, enterprises attach importance to supply chain management because it accelerates the flow of products to customers. (For example, if a company can produce products and deliver them to customers within 10 days instead of 70 days, it can invoice customers 60 days in advance. Thereby increasing the cash flow of the enterprise)
Supply chain management also plays an important role in life. Using supply chain management technology can support medical tasks and carry out disaster relief operations, and deal with other types of emergencies.
Whether dealing with daily products or sudden natural disasters, supply chain management practitioners have been committed to how to design a faster and more effective supply chain network.
Social role of supply chain management
Ensure the survival of mankind
Contribution of supply chain management to human life: human beings rely on supply chain to provide basic necessities such as food and water. Any mistake in these networks will threaten human life. For example, in 2005, Hurricane Katrina flooded New Orleans, and local residents could not get food and clean water. Therefore, it is necessary to carry out large-scale rescue for residents. On the first day of rescue work, 6.5438+0.9 million boxes of lunch and 6.7 million liters of water arrived in the disaster area in time.
Supply chain management has improved human health: humans rely on supply chain to provide medicines and medical services. In medical malpractice, the performance of supply chain can determine the life and death of patients. For example, medical rescue helicopters can treat accident victims by quickly transporting them to hospitals. In addition, hospitals can provide medicines and equipment needed for medical treatment through excellent supply chain management technology)
Supply chain management protects human beings from the extreme influence of climate: human beings rely on energy supply chain to provide electricity for families and enterprises for lighting, heating and refrigeration and air conditioning. If there is a large-scale long-term power outage, it will pose a threat to people's lives. (For example, in the massive east coast ice storm in May 438+0998+10, 80,000 miles of power lines in Montreal, Quebec, failed, leaving nearly 3.2 million residents without electricity. Due to the extreme cold, 30 people died and 25% residents moved out. In addition, the production enterprises lost 3 billion yuan, the houses were damaged 65.438 billion yuan, and the government started construction 65.438 billion yuan)
enhance the quality of life
Speed up economic growth: A society with a highly developed supply chain (modern intercontinental expressway, huge railway network, ports and airports) can greatly reduce the cost of commodity circulation and promote the improvement of consumption level. Thereby promoting economic growth. In fact, a common feature of poor countries is the lack or poor development of supply chain infrastructure.
Improve living standards: A society with a highly developed supply chain (modern intercontinental expressway, huge railway network, ports and airports) can greatly reduce the cost of commodity circulation. Therefore, consumers can buy more products with their income, thus improving the living standard of society. For example, the United States estimates that supply chain costs account for 20% of product costs, while China accounts for 40% of product costs. If transportation losses are added, these costs will account for 60% of the product cost in China. The high supply chain cost in China is the main obstacle to improve the living standard of citizens in China. Therefore, China began to vigorously develop infrastructure.
Job creation: Supply chain professionals design and operate all supply chains in society, and manage transportation, warehousing, inventory management, packaging and logistics information. So there is a lot of work in the supply chain field. For example, in the United States, logistics activities accounted for 9.9% of the expenditure on goods and services in 2006. This is equivalent to 654.38 million American logistics jobs.
Opportunities to reduce pollution: Supply chain activities require packaging and product transportation. As a by-product of these activities, some harmful environmental pollutants, such as cardboard waste and carbon dioxide fuel emissions, have been produced. For example, in 2005, paper and cardboard accounted for 34% of landfills in the United States. Of the 84 million tons of paper and cardboard waste, only 50% is recycled. In addition, in 2005, carbon dioxide emissions from transportation accounted for 33% of the total carbon dioxide emissions in the United States. As network designers, supply chain professionals are in a key position in developing more sustainable processes and methods.
Reduce opportunities for energy use: Supply chain activities include the transportation of people and products. As a by-product of these activities, scarce energy has been exhausted. For example, transportation currently accounts for 30% of world energy consumption and 95% of global oil consumption. As network designers, supply chain professionals have played a role in developing energy-saving supply chains and using fewer resources.
Protecting cultural freedom and development
Defending human freedom: citizens of a country rely on military logistics to ensure their way of life from those who try to end it. Military logistics strategically deploys planes, ships, tanks, missiles and other weapons to provide maximum security for soldiers and other citizens. At the same time, superior logistics performance also brought military victory. For example, the B-2 stealth bomber can deliver bombs to the target without being detected by enemy radar.
Protect the transportation of necessities: citizens of a country rely on supply chain managers to design and operate food, medicine and water supply chains to protect products from tampering. Advanced packaging technology, advanced surveillance cameras, global positioning system and RFID inventory tracking are some methods used to prevent terrorists from entering these important logistics systems.