I supply chain and supply chain management
1. Supply chain. The concept of supply chain originated from the manufacturing industry in 1980s. It refers to the supply and demand network that connects raw material suppliers, transporters, producers, wholesalers, retailers and final consumers around core enterprises through the control of information flow, logistics and capital flow in the process of commodity production and circulation. (refer to the Chinese website of architecture)
This concept has three meanings: (1) The value-forming activities of commodities include manufacturing, processing, purchasing, circulation and sales, with the aim of creating and providing value for consumers. (2) The span of the supply chain starts from the enterprises that provide raw materials, passes through all or some enterprises in manufacturers, distributors, wholesalers, distribution centers and retailers, and finally reaches consumers. (3) The relationship between enterprises in the supply chain is upstream and downstream, and the network formed by these enterprises according to the order of commodity flow is the supply chain of the commodity.
Supply chain is the product of socialized mass production and an important form of circulation organization and marketing. It organically connects production and consumption with the advantages of high degree of market organization and large-scale operation, and has a direct guiding role in production and circulation.
2 supply chain management. Supply chain management includes all planning and management activities and all logistics management activities involving procurement, outsourcing and conversion. That is, planning, organizing, coordinating and controlling the information flow, logistics, capital flow, value flow and workflow in the supply chain. It is an all-factor, all-process integrated management model from suppliers, through transporters, manufacturers, wholesalers and retailers to final consumers. Supply chain management is essentially the integration of supply and demand management within and between enterprises.
The goal of supply chain management is to establish an optimized and efficient commodity supply system in the whole supply chain from raw material procurement, processing and production, distribution and distribution to commodity sales to customers, so as to reduce the logistics cost of the whole supply chain, greatly improve the operation efficiency and improve the service level to customers.
Second, the supply chain of engineering construction industry
1 Basic characteristics of engineering construction industry. Engineering construction industry is different from manufacturing industry. Its products are not independent articles, but engineering facilities with fixed space, huge volume and similar production processes. Engineering types can be divided into water conservancy, industry, chemical industry, petrochemical industry, housing construction, roads, bridges and other engineering products, but each type of engineering products can be subdivided into earthwork excavation, steel structure production, reinforced concrete pouring, electrical instruments, pipeline containers, mechanical equipment installation and other production processes. Although there are many kinds of projects, one common feature of * * * is that each project is carried out in accordance with the procedures of project establishment, financing, design, bidding, procurement, construction and acceptance. At the same time, the engineering construction industry has the following basic characteristics: (1) large-scale products, long production cycle, many construction units and complex management and coordination; (2) Products have the characteristics of diversity and non-repetition, and are generally produced in single pieces.
Design and construction shall be determined according to site conditions; (3) the products are produced and used in the same place, and the demand for internal logistics (steel bars, cement, sand, bricks, machinery and equipment, etc.). ) is large and the storage conditions are relatively simple. The outward logistics volume (earthwork) changes with the site conditions, and the demand time is concentrated; (4) Engineering construction industry is a labor-intensive industry, which has a great demand for human resources and relatively low technical content of workers; (5) The production and operation activities of the engineering construction industry are characterized by stages and liquidity. There are many factors affecting safety in production, which are greatly influenced by natural conditions, uncertain factors and difficult management, so it is necessary to make full preparations in advance.
2 supply chain of engineering construction industry. According to the characteristics of engineering construction industry, compared with manufacturing industry, the supply chain of engineering construction industry can be defined as: in engineering construction, the general contractor is the core enterprise, and the design engineer, consulting engineer, material supplier, engineering subcontractor, labor subcontractor, equipment supplier, equipment lessor and owner are connected into an integrated supply and demand network model by controlling information flow, logistics and capital flow.
The characteristics of engineering construction industry determine that this supply chain has its own characteristics besides the general characteristics of manufacturing supply chain: (1) engineering construction is a typical order-based production, and the product demander (owner) plays an important role in the supply chain, and the owner is both the initiator and the beneficiary of the project. This dual identity allows him not only to provide funds in stages to make the whole supply chain run smoothly, but also to supervise the quality of the project. (2) Due to the singleness and fluidity of engineering construction production, the node enterprises in the supply chain are relatively loose, and the relationship between supply and demand is temporary.
Third, the supply chain management of engineering construction industry
(A) the objectives of supply chain management in the engineering construction industry. The goal of supply chain management in engineering construction industry is to integrate all node enterprises in the supply chain with the core enterprises as the center, and realize the integration, coordination, integration and synchronization of the whole construction, operation and logistics system. That is, from project bidding, design, consultation, material procurement, equipment leasing, procurement, project construction, to project completion, acceptance and handover to the owner, all links work together efficiently through the supply chain information management system to form the optimal project construction and operation system, reduce the logistics cost and construction cost of the whole supply chain, improve the project quality, shorten the construction period, improve the economic benefits of the whole supply chain, and at the same time improve the service level to the owner and meet the requirements of the owner.
(b) Benefits of supply chain management in the construction industry. Supply chain management in engineering construction industry can reduce the logistics cost and construction cost of the whole channel, make the engineering construction industry more competitive, improve the service level of owners and create value advantages.
1. Reduce inventory costs. The logistics cost of supply chain management in engineering construction industry is mainly to reduce inventory cost. In traditional business dealings, there is a lack of communication and cooperation between upstream and downstream enterprises in the supply chain. Material suppliers don't know the consumption status and speed of materials by the construction workers, and they don't know when the construction workers will order. Therefore, the organization of production and supply can only rely on its own subjective judgment. Similarly, builders don't know the inventory of suppliers, and they don't know whether suppliers can supply in time. They can only rely on their own data when determining the order quantity. Because the supply and demand information in the supply chain cannot be shared and the channel transparency is not high, the "bullwhip effect" of information error undoubtedly increases the uncertainty in the supply channel. In order to ensure supply and maintain production, enterprises tend to increase their own inventory, which not only takes up a lot of working capital, but also causes an increase in inventory costs.
In effective supply chain management, the above situation can be avoided. Through the supply chain information management system and EDI, the information and data of production, sales, inventory and distribution can be shared by all parties. Every member of the supply chain can grasp the logistics, on-the-way transportation and distribution, inventory and customer demand of the whole channel in time and clearly, and the channel risk and uncertainty are greatly reduced. On this basis, enterprises can adjust production and distribution immediately according to market supply and demand information, and replace inventory with information.
2. Reduce the construction cost. The first aspect of supply chain management in engineering construction is to reduce the supply delay and interruption of upstream enterprises and the increase of construction cost caused by shutdown of downstream enterprises through information sharing. Second, through the integrated management and coordination of the supply chain, consulting engineers, design engineers, engineering contractors and material suppliers can obtain corresponding information at the decision-making stage of the project, understand and evaluate the owner's expectations of the project and its support ability in law, construction land and working capital, and put forward various schemes to optimize and match, so as to improve the scientificity and constructability of the design scheme, and achieve the effects of reducing the project cost, shortening the construction period, improving the project quality and reducing risks.
(3) Business process of supply chain management in engineering construction industry. Successful supply chain management needs to change the previous model of managing only a single process and manage a series of integrated processes. Its purpose is to make the managers of each node enterprise in the supply chain use a unified language and cooperate effectively on the basis of standardized business process value.
Supply chain management in engineering construction industry involves five business processes. These five processes are: (1) project bidding management; (2) Owner's service management; (3) Construction process management; (4) Relationship management between suppliers and subcontractors; (5) Engineering maintenance management.
1. Project bidding management. Project bidding management process provides a comprehensive understanding of the owner, competitors and bidding project related information and materials. Through this step, managers can know the owner's strength, credit standing, project approval, implementation of funds and major equipment, management level and construction strength of competitors and all the information in the bidding documents. The purpose is to formulate a reasonable bidding strategy, improve the winning rate and effectively avoid risks through the analysis, processing and evaluation of these information.
2. Owner's service management. Owner service management shows the attitude of enterprises to owners. Owner's services include regularly informing the owner of the design, procurement, quality, construction period, cost and various problems that the owner cares about, providing the owner with all kinds of real-time information they want to know, establishing a good relationship with the owner, and obtaining continuous financial support from the owner.
3. Construction process management. Construction process management includes activities related to the following production activities: pre-project preparation, material procurement, transportation and storage, organization and coordination of construction according to specialty, management and control of project quality, and approval of design unit and owner. The purpose of this process is to complete the project construction at the lowest possible total cost and shorten the construction period on the premise of ensuring the project quality and construction period.
4. Relationship management between suppliers and subcontractors. The process of relationship management between suppliers and subcontractors is how to choose the right suppliers and subcontractors (the same enterprise values, strategic thinking, mutual trust and their available core competitive advantages) and establish a mechanism to coordinate contradictions and conflicts in time. Core enterprises make strategic plans with suppliers and subcontractors at the beginning of the project, and coordinate construction and procurement with suppliers and subcontractors before the project design is completed. Its purpose is to establish and maintain long-term partnership with suppliers and subcontractors, greatly reducing procurement costs and construction costs, improving project quality and shortening construction period.
5. Engineering maintenance management. The process of engineering maintenance management is to provide the owner with engineering operation technology, maintenance methods and maintenance services during the warranty period after the completion of the project. Its purpose is to provide quality services, safeguard the rights and interests of owners, improve the reputation of enterprises and gain market recognition.
References:
1 James r stock, Douglas m Lambert, Shao Xiaofeng, translated. Strategic logistics management [M]. Beijing China Financial and Economic Press 2003.
Lu Lining and Li. Discussion on supply chain management in construction industry [J]. Industrial Engineering, 2002, (6).
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