Why should enterprises implement supply chain management?

Supply chain management (SCM) is an integrated management idea and method, which performs logistics planning and control functions from suppliers to end users in the supply chain. From the point of view of a single enterprise, it means that enterprises can gain competitive advantage by improving the relationship between upstream and downstream supply chains and integrating and optimizing the information flow, logistics and capital flow in the supply chain.

Supply chain management is an effective management of enterprises, which embodies the optimization of the whole operation process in strategy and tactics. Integrate and optimize the business efficiency of suppliers, manufacturers and retailers, so that goods can be produced and sold in the right quantity and quality at the right place, at the right time and at the best cost. The most typical example is the supply chain management of Siemens and Mercedes-Benz, which saves $654.38+0 billion annually. These are all profits.

Through supply chain management and optimization, enterprises can obtain the following benefits:

(1), the total cost of supply chain management (as a percentage of revenue) decreased by more than10%;

(2) The punctual delivery rate of medium-sized enterprises increased15%;

(3) The delivery cycle of order fulfillment is shortened by 25-35%;

(4) The added value productivity of medium-sized enterprises has increased by more than 10%;

(5) The asset operation performance of excellent enterprises is improved15 ~ 20%;

(6) The inventory of medium-sized enterprises decreased by 3%, while that of excellent enterprises decreased by15%;

(7) Excellent enterprises maintain an advantage of 40-65 days over ordinary enterprises in cash flow turnover cycle.

(The above data comes from Yibo Logistics Consulting Database. )