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supply chain management
supply chain management(British: Supply Chain Management, SCM),Supply chain management(Kyoukyu Rensakari) is a system for building an integrated logistics system between multiple companies to enhance management results without limiting the logistics system to the inside of one company.managementIt is a technique. It should be noted that in this case, "between multiple companies" is not limited to the relationship within a corporate group such as a traditional parent company/subsidiary, but a logistics system built between equal companies is also called supply chain management... However, in reality, transactions between companies are not always equal, and there is a gap between reality and theory, and gap analysis becomes important. Also, while the supply chain is a flow between multiple companies until it reaches the customer,Value chainIndicates the flow of business within a company.
- “Re-capturing individual business processes from the beginning to the end of value provision activities, that is, the entire process from the raw material supplier to the final consumer, as a single business process, and transcending the barriers of companies and organizations to optimize the entire process Strategic business management method that continuously enhances the value of products and services to increase customer added value and brings high profits to companies”
Is said to be.
When considering supply chain management, inbound and outboundSupply chainAre often distinguished. The definition of inbound and outbound is the outbound SCM, which is the outbound SCM for the logistics management and inventory management between a company and its customers when viewed from the standpoint of a specific company that is the management body. Inbound SCM refers to the processing and management of production, distribution and inventory with suppliers.
How does the supply chain management system allocate business orders to customers?Order support form, CODP Customer Order Decoupling Point), it is classified into several patterns.
Customer looks at stock and orders (Ship to Stock) STS
- Make-to-stock production
Customer orders to make-to-stock inventory (Make to Stock) MTS
Assemble to Order ATO by customer order
Custom order assembly
Deliver with configuration management according to the customer's order (Configure to Order)CTO
Order processing assembly
BTO that processes and assembles and delivers after customer order (Build to Order)
MTO to procure raw materials and deliver after production (Make to Order)
Custom design production
ETO designing and producing according to customer's order (Engineer to Order)
and so on.
In the construction of the supply chain, the characteristics of the manufacturing equipment such as the processing process and the demand characteristics have a great influence. The general model of the supply chain can be patterned by what kind of industry the supply chain is on, for example, by industries such as the material industry, the assembly industry, and the retail distribution industry.
- In the material industry, when raw materials are input, several types of products are derived from the end of the processing equipment. The main control point for managing the supply chain is the production allocation function that prioritizes the processing and production of highly profitable products.
- In the assembly industry, from the input of materials to the final assembly, an assembly line and a cell production method are adopted, and the production form is a synchronous integrated production. The main control point for managing the supply chain is to carry out production activities by matching the order of line-off or packing and shipping of finished products with the priority and urgency of customers.
- In the distribution and retail industry, management of distribution inventory is a target for consideration, and PSI management of retail POS consumption information and distribution inventory quantity.In other words, management of purchases, stocks, and sales, synchronization with the production side, sharing of PSI information, etc. are decisive factors.
The above is just a general theory, and in recent years when competition between companies is intensifying, we are trying to differentiate from competitors by promoting shorter delivery times without being bound by the common sense of the supply chain of a particular industry. Has become noticeable.
From around the 1980s, management theories such as classifying a company's business model according to the process of holding intermediate inventory became popular.DellHolds inventory at the stage of parts and assembles according to customer's orders, reducing defective inventory and improving customer satisfaction, which was a great success. This Dell SCM isbuild to order"(BTO). BTO is now done by most computer manufacturers. At present, it is common knowledge in the manufacturing industry to build a business model using SCM.
At Global SCM, efforts are underway to synchronize operations at the global level by synchronizing the above-mentioned material-assembly-distribution-retail supply chains.In the olden days, it started with global SCM among parts suppliers in the automobile industry, and since the beginning of the 2000s, global players in manufacturing industries other than automobiles have been working on building SCM.For example, efforts are underway to synchronize global SCMs such as parts suppliers in Southeast Asia => finished manufacturers in China => retail stores in Europe with Global Weekly PSI (inventory management method for weekly periodic orders), and inventory in the supply chain (inventory in the supply chain) A mechanism for high-speed rotation of raw materials (raw materials, finished products) has been established.
Here, the consideration for building the Global Weekly PSI is that the lead time from raw materials to final consumption is relatively long.For example, it may take about 10 weeks for Southeast Asian components to be finally assembled in China and reach stores in Europe by sea.For this reason, in the operation of the PSI plan, the reading of the demand for final consumption (= how to set the value of S), the method of setting the height of inventory (= the number of days of inventory of I), the raw materials after shifting the lead time, etc. In general, efforts are made to optimize actual SCM operations by simulating the determination of the production position and supply amount (= calculation of P value) of the finished product on the PSI plan.
From the management's point of view, there are cases where SCM is built to reduce inventory in inbound SCM for the purpose of improving ROA, and cases where outbound SCM is developed for immediate delivery system for the purpose of responding to short delivery times for customers. is there.Many of these SCM building efforts do not always solve the problem with the introduction of specific solution packages.Rather, it can be said that it is common to start by defining the ideal form of business processes in order to secure a competitive advantage in corporate activities in the future through analysis of the current business of hypothesis verification type according to management goals. ..
In order to succeed in SCM construction, it is an important checkpoint whether or not it is possible to appropriately extract the challenges to be implemented in order to realize innovation in business processes in corporate activities and to define the challenges. In other words, by focusing on the business environment and corporate culture that surrounds corporate activities such as business reform, awareness reform, and organizational reform with SCM as the central theme, accurately grasp the challenges in business execution, and design and create new business models. It is important for SCM construction to steadily implement the transition to business processes. For example, the idea that business models are becoming the source of competitive advantage is gradually gaining in popularity in Chinese companies as well. Employing designers from Italy to carry out product planning with a focus on design, and to build a make-to-order system with short delivery times. It is becoming common sense to design and operate business processes that minimize inventory loss.
- 1983 Booz Allen Hamilton (consulting firm) uses the term "supply chain management" for the first time.
- 1996 Supply chain operation reference model as a common language for describing and evaluating supply chain processes across different business types in the United StatesSCORTo develop and disseminate the supply chain council (SCC)ButNPOEstablished as a corporation. After that, branch offices were opened in Europe, Japan, Australia, Latin America, China, Southeast Asia and South Africa, and as of December 2007, it has over 12 member organizations.
- 1998 American Industry Association Council of Logistics ManagementAccording to a paper written by Cooper and others in the previous year, (CLM) reviews the definition of logistics as "logistics is a part of supply chain management."
- Plan: Plan activities to optimize sourcing, production and distribution, and balance supply and demand.
- Source: Purchasing goods or services to meet planned or actual demand.
- Makeup: To change raw materials and work-in-progress into products to meet planned or actual demand.
- Delivery: Providing a product to meet planned or actual demand. Normally, order management, deliveryManagement, distributionIncluding management.
- Return: To receive the returned product for various reasons. Including customer support after delivery.
See also Lambert et al. (1997) The group of researchers categorized the following eight items as the process of supply chain management, and said that they are issues in the field and require research.
- Customer relationship management
- Customer service management
- Demand management
- Order fulfillment
- Production flow management
- Supplier relationship management
- Product development and commercialization
- Return management
Companies that provide SCM software and SCM services
The concept of SCM was born by the information management beyond the single company by using the computer system in the place of purchase and procurement. Military use was limited to academic useインターネットTechnology is generally available,IntranetAs an extranet, it will be used between companies as an extranet, and the purchasing and procurement business will be linked to the internal system (intranet) using the extranet as a scaffolding system, which is called the concept of supply chain management. became.
Since such a computer system is created from scratch, it takes time. Therefore, it came to be constructed based on a certain template (template). (This is not limited to purchasing and procurement work.) Software that allows you to build a business system based on such a template is called a package. Such packages have come to be called solution packages in the sense that they are solutions for business problems (packages) especially for business use.
- ^ Hiroshi Takumi, “Visual Story of Ships and Shipping (Revised Supplement)”, Naruyamado Shoten, 2007, p. 181
- ^ Kazuyuki Ishikawa, "Why is the Japanese manufacturing industry not profitable?" Toyo Keizai, 2009, p. 104.ISBN 978-4-492-76182-3.
- ^ British: purchase-Sales-inventory
- ^ British: plan
- ^ British: source
- ^ British: make
- ^ British: deliver
- ^ British: return
- ^ British: transportation
- ^ British: distribution
- ^ Cooper, MC, Lambert, DM, & Pagh, J. (1997) Supply Chain Management: More Than a New Name for Logistics. The International Journal of Logistics Management Published Vol 8
- ^ British: customer relationship management
- ^ British: customer service managemen
- ^ British: Demand management
- ^ British: Order fulfillment
- ^ British: Manufacturing flow management
- ^ British: Supplier relationship management
- ^ British: Product development and commercialization
- ^ British: Returns management
- Hajime Chinen "New Age SCM Theory" Hakuto Shobo 2006
- Gene Tyndor "Market-leading "Business Advantage" Strategy-Practical Supply Chain" Hitoshi IrieTranslated by Diamond, 1999.
- Kuniyoshi Takahashi "SCM Winning Global Competition"http://www.asprova.jp/scm/globalscm.html
- Kazuyuki Ishikawa "Illustration I see! I understand this, I understand the future of SCM" Dobunkan 2010
- Kazuyuki Ishikawa "Practice to make SCM management successful by "visualization"" Chukei Publishing 2008
- Kazuyuki Ishikawa "A Book Understanding All About Illustrated SCM" Nihon Jitsugyo Publisher 2008
- Kazuyuki Ishikawa "So Your Company's SCM Fails" Nikkan Kogyo Shimbun 2008
- "Visual story of ships and shipping (revised and expanded version)",Narusando bookstore,Year 2007
- Morita Michiya "Supply Chain Principles and Management", Shinseisha, June 2004
- J. Gatona "Supply Chain Strategy Best solution" Translated by Kenzo Maeda and Seiichi Tamura, Toyo Keizai Inc., 1999.
- Kei Kondo "Successful e-Supply Chain Management"ISBN 4408104612
- Takashi Kondo "Supply Chain Theory and Strategy" ISBN 4478372616
- Just in time
- Industrial science
- Corporate resource planning
- Industrial science
- Management information system
- Japan Business Association
- Operation management
- Value chain
- Inventory control
- Bullwhip effect
- IT management
- Logistics engineering
- Service management
- Supply chain
- -(English version has a separate article from SCM)
- Internet of Things
- Digital transformation
- Transport Economy Newspaper Published “Distribution Design 21” (former name: Distribution Design) as a monthly magazine
- Daily CARGO Also published monthly magazine "Cargo"
- "Logi biz" Monthly magazine
- "Warehouse" quarterly
- SCM (Supply Chain Management)/Design and Manufacturing-CIO Online
- Major specialized magazines on warehousing National Diet Library