Supply chain management: methods, software products and problems. Supply Chain Management Processes Supply Chain Management System scm

17.03.2022

The term SCM (Supply Chain Management) has been used in the West for more than 15 years, but until today there is no single opinion among logistics and general management experts on the definition of this concept. Most consider SCM from an operational point of view, understanding SCM as material flows. Others believe that SCM is a management concept, and finally, others mean by SCM the implementation of this concept in the enterprise.

The most common definitions of SCM are:

SCM is a set of approaches that helps to effectively integrate suppliers, manufacturers, distributors and merchants. SCM, taking into account the service requirements of customers, allows you to ensure the availability of the right product at the right time in the right place with minimal cost.

SCM is a process of organizing the planning, execution and control of the flow of raw materials, materials, work in progress, finished products, as well as providing an efficient and fast service by obtaining operational information about the movement of goods. With the help of SCM, the tasks of coordinating, planning and managing the processes of supply, production, warehousing and delivery of goods and services are solved.

The supply chain involves both the organization itself and all suppliers and consumers of goods. (Fig.1)

Rice. 1. Members of "Supply Chain Management"

The supply chain is a set of links interconnected by information, cash and commodity flows. The supply chain begins with the acquisition of raw materials from suppliers and ends with the sale of finished goods and services to the customer. Some links may be wholly owned by one organization, others by counterparty companies (customers, suppliers and distributors). Therefore, there are always several organizations in the supply chain. (Fig.2)

Fig.2. Cycle «Supply Chain Management»

1.2. Supply chain management

Each company sets itself more and more new tasks due to the rapid development of the market, tougher competition, with the requirement to improve the quality of customer service. In order to strengthen its advantages and remain competitive, a modern enterprise needs to optimize all value creation processes - from the supply of raw materials to after-sales service for the end consumer. To solve these problems, company management turns to SCM solutions.

Supply Chain Management includes the following steps:

    Planning (PLAN)

In this process, the sources of supply are clarified, prioritization of consumer demand and generalization is carried out, stocks are planned, requirements for the distribution system are highlighted, as well as production volumes, supplies of raw materials, materials and finished products.

The task of producing on your own or buying should be decided at this stage. Decisions related to all types of resource planning and product life cycle management are also made at this stage. These processes balance demand and supply to develop a course of action that best fits Source, Make, Deliver requirements.

    Purchasing (SOURCE)

In this category, the main elements of supply management are identified, the quality of supplies is checked, the evaluation and selection of suppliers, and the conclusion of contracts with suppliers. This also includes processes related to the receipt of materials: acquisition, receipt, transportation, similar control, holding (storage). It is important to note that the actions to manage the supply of goods and services must correspond to the planned or current demand.

    Production (MAKE)

This process includes production, execution and management of structural elements, management of production facilities (equipment, buildings, etc.), production quality, production cycles, production shift schedules, etc. Specific production procedures are also defined: quality control, actual production procedures and cycles, packaging, storage and release of products (intra-factory logistics). All components of the process of processing the initial product into finished products must meet the planned or current demand.

    Shipping (DELIVER)

This process includes managing orders, warehouse and transportation. Order management includes the creation and registration of orders, the choice of product configuration, costing, as well as the creation and maintenance of a customer base and the management of debtors and creditors. Warehouse management involves the activities of picking and picking, packing, creating special packaging, labeling for the customer, and shipping goods. The transportation and delivery management infrastructure is determined by the rules for managing channels and orders, regulating the flow of goods for delivery, and managing the quality of delivery.

All these processes, inventory management, transportation and distribution must be aligned with the planned or current demand.

    Return (RETURN)

This process defines the building blocks of product returns (defective, redundant, in need of repair) both from made to source (make to source) and from delivery (deliver): determining the condition of the product, placing it, requesting return authorization, scheduling returns , direction for destruction and processing.

SCM processes can also be divided into two large groups: Supply Chain Planning (SCP) and Supply Chain Execution (SCE). SCP includes strategic planning of the supply chain or business processes in its individual links. SCE includes the implementation of plans and the operational management of supply chain links, such as transport or warehousing.

Supply chain management optimization can solve the following problems:

    Reducing the planning cycle and increasing the planning horizon due to the receipt of reliable and timely information;

    Optimization of costs due to the possibility of identifying strategic counterparties, the optimal choice of purchased products, as well as their suppliers, supporting interaction with them in real time;

    Reducing production costs through the optimization of product flows and the rapid organization of information exchange between contractors. Real-time communication between various participants in the supply chain helps prevent bottlenecks in the production process;

    Reduction of warehouse costs by bringing production volumes in line with demand. This task corresponds to the Just-In-Time supply management concept (“just in time”);

    Improving the quality of customer service is achieved through the efficiency and flexibility of the delivery process.

SAP R/3 Implementation: A Guide for Managers and Engineers Kale Vivek

Supply chain management

Supply chain management

In this section, I will give an overview of the concepts associated with supply chain management systems (Supply-Chain Management, SCM.) For us, this will be important, because it will prepare for the description of SAP SCM, presented later in the section "Optimization, planning and execution of the supply chain SAP. We will use SAP's supply chain solution, the Supply-Chain Operations Reference (SCOR). The first version of SCOR, released in 1996, was the result of a collaboration between two Boston-based consulting firms, PRTM and AMR Research, with some 70 of the top manufacturers in the US. SCOR allows companies to apply a standard approach to describing and analyzing all supply chain problems, as well as to establish standardized scales to measure the performance of supply chains and determine the best of them.

The supply chain includes all the resources and activities necessary to manage the sources of creation of a product and its delivery to consumers. According to SCOR, SCM includes the management of processes such as coordination, scheduling, sourcing, production, packaging, distribution, transportation, warehousing, and delivery. SCM outperforms and improves on ERPs such as SAP and legacy transaction-oriented systems. At the highest level, SCOR focuses on aspects related to production and delivery processes, namely:

The cash cycle

Rapid supply chain response

Production flexibility

Total supply chain management costs

Productivity of additional services

Delivery on time

Warranty costs

Supply inventory

Order fulfillment quality.

At the next level of detail, SCOR helps to optimally configure the supply chain infrastructure by presenting process elements that depend on the strategic goals set by the enterprise (enterprises) that make up the ECE. For example, configuration can target manufacturing strategies such as make-to-stock, make-to-order, and even develop-to-order. It may also entail different supply chain configurations for different products and services. An objective measurement of the amount of work performed by participants in each of these supply chains would also give a true understanding of the distribution of property, costs, ongoing improvements, profits and rewards.

In this context, it should be noted that some decisions leading to the optimal result of the work of the participants in the supply chain as a whole may not be optimal for individual participants in the chain. These participants will have to pay appropriate compensation and remuneration for contributing to the profitability of the chain as a whole. Similarly, since the model involves distributing information across separate uses, ownership (along with associated costs) of a product or service may need to be reconciled at any point. Such measures are necessary to maintain efficient supply chains and related partnerships. Only over time, all participants will be able to reduce the cost of capital for goods, reduce material consumption and show greater returns.

The SCM system satisfies all requirements for supply chain management, providing functionality for planning and optimization leading to synchronization. I will discuss these requirements in later subsections, but it should be noted that SCM systems must balance flexibility and functionality. These characteristics have a direct impact on the spread of SCM applications across a wide range of industries, as well as the optimal effort and time required to implement them. SAP, in accordance with its established philosophy, is trying to achieve success with Advanced Planning and Optimization SAP (Advanced Planning and Optimization, APO). In the future, the current generic ARC applications may be followed by several ARC programs for various industries.

Supply chain planning

Typically, a supply chain is represented by a network of nodes corresponding to suppliers, production centers, distribution centers, and customers. Planning is carried out at the following time intervals:

Strategic: is mainly concerned with the design of the supply chain network based on various predetermined parameters, such as the location of the plant, the size of the enterprise, the location of the distribution center and the volume of warehouses.

Tactical: concerns the optimization of the flow of goods throughout a predetermined supply chain within a given time frame. Includes the development of plans for supply, production, deployment and distribution. Produced either monthly or on a daily basis.

Operational: refers primarily to the production scheduling of plant resources such as labor, equipment, and materials on a daily, or even hourly basis, depending on machine failures, material shortages, and order changes. Aspects such as installation and switching, process routing, material lists, etc. must be taken into account.

Supply Chain Optimization

Supply chain optimization is associated with resources such as time, production capacity, means of transportation, etc. This applies to the following points:

Controlled variables - for example, when and how to produce a product for the consumer.

Scarcity of resources - for example, in raw materials, production facilities, means of processing, means of transportation and time for it.

Improving customer performance, maximizing revenue and profits, minimizing costs, cycle times and delays; maximizing overall productivity, minimizing waste and rework. Needs for many goals can be met at the same time (with equal or different significance and priorities).

Optimization of models that represent dependent relationships between controlled variables, constrained and required performance. They differ depending on the ease of manipulation, the availability of information and the complexity of the model in relation to the required computational resources, etc. Models can be algorithmic, heuristic, genetic algorithms, or even exhaustive enumerations. The last category of models is only useful in simplified situations.

Following the formulation of the problem, the optimal solution is determined according to the context of the four points above. The system can find a working solution that copes with resource constraints and can be implemented immediately, or a partially optimized solution that meets part of the required optimization criteria. In exceptional cases, an optimal solution can be found that will achieve all the necessary goals and cope with all restrictions.

This helps in making decisions on factors related to the aforementioned supply chain performance. It should be noted that, as in the case of ERP, the list of goods and the capabilities of the supply chain are important parameters that are of interest when performing any kind of optimization.

Supply Chain Synchronization

Synchronization eliminates the costs associated with inefficient movement of goods, redundant processes and product mix, and promotes collaboration among all participants in the supply chain. Synchronization focuses on reducing hidden gaps at the boundaries within organizations.

The complexity of supply chain synchronization can be viewed in terms of the previously mentioned time spans: strategic, tactical, and operational. First, at the strategic level of the supply chain configuration, synchronization became especially relevant because of the opportunities provided by the Internet: an additional pervasive channel for sales, distribution and delivery; consumer segmentation; service stations, etc.

At the tactical level of supply chain planning, synchronization entails reflecting changes in top-down planning in bottom-up processes. In particular, the demand plan is divided into a distribution plan, a production plan, and a supply plan. This is significant because of the increasing volatility and diversity of demand in the market. In the future, this will also include the reconfiguration of the logistics network for certain products. To achieve this, each individual plan must also be synchronized at all hierarchical levels of planning. This can be done sequentially or simultaneously. Simultaneity and real-time planning are more inherent in unprofitable and unstable supply chains.

Finally, at the operational level of supply chain execution, synchronization is typically made possible by technologies such as EDI, Internet communications, and more recently, integrated solutions such as SAP Business-to-Business Solution. Synchronization is also made possible by the large number of products that can be generated from a smaller set of standard products or brands. In these cases, the efficiency of the supply chain is greatly increased by postponing the moment of product differentiation as close as possible to the moment of demand for it by the customer. In other words, you redesign the product, adjusting it to the taste of the consumer, only at the last moment.

In this regard, SAP APO provides the following key capabilities:

Setting specific goals for the supply chain

Quick queue configuration and its perspective when using the available-to-promise (ATP) component

Sophisticated planning based on demand

Complex prediction algorithms

Optimization logic for planning supply chain activities

Planning for real-life shortages and priorities

Simultaneous creation of material, capacity and distribution plans

Interactive scenario planning tools.

Supply chain e-management systems

Today, SCM extends far beyond the usual static and predetermined individual supply chains. This is because the Internet has made dynamic reconfigurations possible. The Internet makes it possible to create and destroy instantaneous supply chains - e-supply-chain management (e-SCM), even for individual customer transactions, depending on the optimal combination of collaborative relationships in order to create a product and / or service that the customer needs. Rather, it will not even be supply chains, but a community of suppliers and partners. ECEs will be more like a community of enterprises acting at the behest of the main value-adding players within the communities.

Instead of competition among individual entrepreneurs, competition will exist between different communities of enterprises, i.e. ECE. The success of an enterprise will depend on the competitiveness of the respective supply chain, or more precisely, the supply community to which it belongs. Since the threat of substitution exists not only for the end user, but also for other components of the ECE, it will be vital to become a valuable link in a successful supply chain.

The Internet has forever changed how businesses interact and work with customers, suppliers, and even their own employees. Initially, companies can start an Internet business through their presence on the World Wide Web, and then, with the help of an Internet commerce component, expansion can occur. However, now everyone is well aware that online trading alone cannot lead to the company becoming a successful online store. Trading must be tightly integrated with internal order fulfillment processes. Due to the fact that companies no longer carry out the entire production process from beginning to end within their walls, e-SCM will soon begin to appear. Establishing Internet commerce opens up new levels of complexity, volatility and opportunity that force companies to share and use information over the ECE at the same pace as Internet time.

The traditional approach to delivering products to the market is based on the optimization of product handling and transportation. Essentially, it is a system in which a product is produced before it is demanded based on forecasts, and then the waiting for orders begins. For manufacturers, this product-centric strategy entails creating and maintaining spare lots of product, and for distributors and retailers, it involves buying and owning a list of products in order to secure ownership of the finished product.

On the other hand, with the existence of e-SCM, the supply chain is transformed into a demand chain, where the product is produced after receiving an order for it from a specific customer. The fast supply chain is sensitive to market conditions and well thought out. This is significant because the system responds quickly and adapts to the requirements of mass production to customer specifications, that is, to the variety and changing preferences of the consumer. This is made possible by access to information that is as close to real demand as it is to the actual place where sales occur (point-of-sales, POS) or websites, "points of use" (point-of-use, POU ).

In conventional systems, the gap between logistical development time and sales order time is bridged by forecast-based product lists. In the case of a fast supply chain or e-SCM, increased responsiveness helps narrow this gap, thereby relieving the manufacturer of the burden of making more accurate forecasts to determine the product list. Only through web-based collaboration and real-time optimization can companies profitably mass-produce customized products.

In addition to Key Performance Indicators (KPIs), regarding supply chains, e-SCMs can lead to the following benefits:

More profitable and efficient supply chains by reducing the role of intermediaries to a natural minimum

Well-designed and fast supply chains

Optimum level of product diversity

Greater customer loyalty

Reduced cycle time

Applying Just-In-Time (JIT) methodology

Cost of goods sold reduction

Reduced purchasing costs.

All of this becomes possible with the help of the Internet only because ECEs adopt the strategy defined for ERP in the section "Information as a new resource" in Chapter 1. E-SCMs would become more efficient using information as a substitute for the list of goods, the movement of goods , commodity sampling, etc.

Instead of goods, accurate information about products, specifications, individual changes, additional options, design, components, bill of materials (BOM), production schedules, inspections, quality checks, delivery details, payment details, etc. would move through the network. The value of the list goods replaces the value of information. Compared to the expense of having a "just in case" product list, the cost of generating and updating accurate product list information is much more optimal. e-SCM participants will be explicitly integrated with each other and will be able to start business processes within the systems of any of the participants.

E-SCM also involves the reengineering and automation of day-to-day processes between enterprises. It should be noted that these processes will not remain fixed, but will be configured dynamically and in real time between members of the extended supplier community, depending on the optimal configuration for the delivery of a particular order. Like the end consumer, the Internet also gives businesses the ability to manage supply chains to maximize opportunities; Flexibility to change partners and processes is a must for the Internet economy.

Moreover, since information is "intangible", it is not subject to inertia and can also move faster than papers, documents, and lists of goods. This increases the throughput of the supply chain as a whole. It is also clear that accelerating the distribution of product lists will generate a net financial gain. The assembly and manufacture of the goods is delayed until the very last moment before the actual delivery and dispatch of the goods to the customer.

All characteristics and concepts regarding ERP presented in Chapter 1 are also valid for e-SCM in the context of an enterprise. Thus, today e-SCM can perform the following tasks:

Transform the traditional supply chain into an information-driven community

Generally perceive the ECE as a global community

Adapt to the integrated and dynamic nature of the community

Model a dynamic information community

Enable a fast, real-time reconfigurable and competitive community

Develop an information strategy throughout the supply chain as part of the company's business strategy.

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In the literature, there are two approaches to the definition of the supply chain: process and object.

Supply chain (process understanding ) is a set of flows and their corresponding cooperative and coordination processes between various participants in the value chain to meet consumer requirements for goods and services.

Supply chain (objective understanding ) (CPU) is a set of organizations (manufacturers, warehouses, distributors, providers of transport and logistics services, freight forwarders, wholesale and retail trade) interacting in material, financial and information flows, as well as service flows from sources of raw materials to the end consumer.

Supply chain features are:

  • cooperation and coordination ties with suppliers and customers;
  • legal independence chain participants;
  • Availability focus company, those. producer of the final product or service.

Since the CPU is often viewed from the perspective of a particular company, such a company is called the central company in the literature. From this point of view, each company has its own CPU.

There are three qualitatively different types of supply chains elements, companies participating in the CP, the structure of the CP, and the types of links between the participants in the CP.

  • 1. Into a number participating companies The CPU includes all companies with which the central company interacts directly or indirectly, i.e. through its suppliers or consumers, starting from the place of production or extraction of raw materials and ending with the place of consumption of products. In doing so, a distinction should be made between main and auxiliary participants. To main include all companies that actually perform operational and (or) managerial activities in the processes of servicing a particular consumer or market, and auxiliary - those companies whose participation is limited to providing resources, knowledge, capabilities or assets to the main participants (for example, banks, printing houses that print promotional products).
  • 2. Structure A CPU can be described by the number of levels, i.e. the length of the CPU (horizontal component), the number of participants in each level (vertical component) and the position of the central company in the CPU (closer to the extraction of raw materials or to the end consumer, or somewhere in between).
  • 3. Connections between elements in the CPU are divided into four types: managed(important for the company), tracked(important but not critical) unmanaged(insignificant, so no money is allocated even for monitoring) and communications with objects not included in the CPU, but influencing them (for example, if the supplier also cooperates with the main competitor).

Usually, the higher the level, the greater the proportion of managed links, the less monitored and even less unmanaged, and vice versa. However, the real picture varies from CPU to CPU. Sometimes it is advisable to work closely beyond the first level.

Example. A ketchup producer in New Zealand is coordinating with tomato breeders to produce varieties with larger fruits and fewer seeds, which

facilitates the processing of tomatoes, since its direct suppliers - small farms - are not able to finance it.

Supply Chain Management is a systematic approach to integrated planning and management of the entire flow of information, materials and services from the end user through enterprises and warehouses to raw material suppliers. DRM is a holistic business concept that combines advanced organizational principles and the capabilities of modern information technologies.

Sometimes supply chain management is taken too literally, drawing an analogy, say, with the management of a company that has a single supreme governing body or person. It is believed that there is some authority that controls the entire supply chain, or, since it is usually spoken on behalf of an enterprise, the so-called central company in the supply chain, that it is this enterprise that manages the entire supply chain. This is not true. There is no single governing body for the entire CPU. In practice, each enterprise manages interactions with its suppliers and customers, and it is possible to talk about supply chain management only in relation to a specific section of the chain. However, the essence of the supply chain is to establish relations of interaction between enterprises using modern information technologies. These interactions are formed decentralized at each section of the supply chain, and integrated management is achieved through iterative coordination and balancing of interests in specific sections of the CPU, which are distributed along the chain up and down to the client himself.

From traditional cooperation The DRM is distinguished by the presence of developed intra- and inter-company integration and coordination, synchronization of the main business processes and planning and management models based on unified information channels with suppliers and customers throughout the supply chain.

In modern literature, the concepts of logistics and supply chain management are sometimes confused, or the “fashionable” term DRM is used in relation to logistics tasks. To understand the difference between logistics and supply chain management, let's turn to the data in Table. 10.9.

Table 10.9

Comparison of individual aspects of logistics and DRM

Indicator

Logistics

Formation and implementation of flows in local nodes of supply chains

Coordination and balancing of supplies between local nodes throughout the value chain

Typical Tasks

  • optimization of transport routes;
  • stock optimization;
  • calculation of the optimal lot size
  • Formation of a network of distribution, production and supply;
  • demand and supply forecasting;
  • integration and coordination of deliveries;
  • information technologies and decision support systems;
  • managing relationships with suppliers and customers;
  • outsourcing and contracting;
  • inventory management in the CPU, the integration of manufacturing processes, supplies and the overall order fulfillment cycle;
  • supply analysis and controlling

Quite often, supply chains are associated exclusively with the external environment of the company, but this is not true. Supply chain management is not just about redefining relationships with suppliers and customers. The task of optimizing interorganizational interaction based on modern management methods and information technologies is obviously unattainable without a significant restructuring and optimization of internal logistics, a revision of the paradigm of organizing your own business. It is the optimization of links between production and logistics processes that is often the most critical in terms of business optimization opportunities.

In supply chain management, the fields of industry and logistics are merging, the strategic goals of production and logistics are combined. The goal of production management is to increase the flexibility of processes, their efficiency and productivity. The purpose of logistics is to ensure the industrial production and trade of the necessary materials or final products with the optimization of stocks. DRM makes it possible to achieve these goals in an integrated manner.

Thus, what is considered in logistics with the traditional approach as a kind of “objective external condition”, in DRM often turns (within the limits of the possible) into an object of control. Main control objects in CPU are the following business processes:

  • 1) customer relationship management;
  • 2) customer service management;
  • 3) demand management;
  • 4) fulfillment of consumer orders;
  • 5) production flow management;
  • 6) supply;
  • 7) development and bringing products to commercial use;
  • 8) return flows.

What are supply chain management objectives ? Why are such complex structures being built, additional funds are being spent?

As we remember from the previous presentation, one of the main problems of a company operating in market conditions is demand uncertainty. It is because of this that companies must have significant stocks (both finished products and raw materials), which is why production works irregularly, equipment downtime alternates with overtime, unsold stocks turn into illiquid assets on time, and company resources are spent inefficiently. In recent decades, the uncertainty of demand, along with its complication, has only increased.

1. The end of the XX century. was marked by a transition to a saturated market, the "seller's market" gave way to "buyer's market" a customer-focused business philosophy has become widespread. Today, the competitiveness of a company depends not so much on what the company does (produces), but on what how the results of the company's activities meet the needs of a complex and volatile market.

Customization production has led to a significant expansion of the final range, which is becoming more and more difficult to predict.

became critical speed of reaction to market changes, the period of time from the appearance of an innovative idea to the appearance of a product on sale. This requirement is especially urgent in industries subject to rapid change, such as high technology or fashion.

Example. Thanks to a significant restructuring of relationships with their suppliers, chain giants such as Benetton and Zara adapt their assortment in weeks, and not in months and years, as was the case at the end of the 20th century.

The mass awareness by companies of the expediency of coordination was not accidental, but was a reaction to changes taking place in the external environment, which is becoming more and more turbulent and uncertain.

Under these conditions, cooperation along the supply chain becomes more profitable (and mutually beneficial) than competition. Thus, CP participants are moving from demand forecasting to managed demand, when operational information about the actual volume and range of sales is promptly transmitted from the upper end of the chain (literally from the retailer's cash registers) to the manufacturer, and in real time further down the chain to other suppliers/manufacturers, in order to be immediately reflected in production plans, on the one hand, and replenish the sold goods (of this modification) to the buyer, on the other hand.

Example. This strategy was so topical and practically “in the air” that it was born almost simultaneously in the clothing industry and in the production of baby diapers. In the first case, we are talking about the manufacturer of sportswear and equipment company Karrimor, which reorganized its sales system in such a way that as soon as the product was sold, the seller had to fax the label of the sold product to Karrimor, specifying how many units of this product should be supplied in return. . In the second case, we are talking about Procter & Gamble and Wal-Mart. Companies realized this even before the mass use of computers and organized the exchange of information by fax and telephone.

In a saturated market, the competition of an individual company with others in its advanced, most competitive sector is gradually being replaced by supply chain competition. And in this competition, the one who manages the chain more efficiently wins.

Therefore, supply chain management is increasingly recognized as a major determinant of competitive advantage in today's business.

The purpose of the DRM is maximizing total value, created by the supply chain while ensuring and x sustainability. This means that supply chain management brings two benefits, increasing both the efficiency of the company and its effectiveness.

From point of view efficiency The UCP cites:

  • to increase the amount of income from sales of products / services by increasing the level of service, the accuracy of deliveries and reducing fluctuations in demand;
  • to reduce costs by reducing inventory levels, reducing overhead and transaction costs in purchasing, warehousing and distribution, as well as improving the utilization of production and logistics capacities.

From point of view performance DRM is a tool to reduce risks and increase the stability of a company (chain of companies) in an increasingly turbulent and volatile environment, and therefore a tool to increase its competitiveness.

Changes in the business paradigm during the transition to DRM are summarized in Table. 10.10.

Table 10.10

Changing the Business Paradigm in Supply Chain Management

Business paradigm to SRM

Business paradigm under DRM

Orientation to suppliers and own production

Customer Orientation

Production to stock

Production according to actual demand

Insurance stocks

Coordination and information exchange

Local optimization of transportation, production, stocks

Optimization of the entire supply chain

functional thinking

Process thinking

Cost savings, penalties for non-delivery obligations

100% compliance with delivery dates

Capacity utilization optimization

Flexibility and customer satisfaction

Operational planning based on medium-term plans

Operational planning based on actual consumption

Constant shortage of needed materials

Control of availability and stocks of materials

Direct Cost Optimization

Total Cost Optimization

Optimization of tare usage

Formation of deliveries based on JIT / JIS

Volume maximization

Order Fulfillment Optimization

Individual businesses compete

Supply chains compete

It is possible to single out separate strategies that are more effective in solving specific problems of improving the efficiency of supply chain management. The results are shown in table. 10.11.

Table 10.11 Various DRM strategies

CPU efficiency factor

Optimal Strategy

Maximum Delivery Efficiency

  • Cooperation with key customers in the field of planning (for example, in the field of effective demand forecasting).
  • Planning and transparency of end-to-end supply chains.
  • Model based on supplier management and direct replenishment

Cost minimization

  • Attraction of resources in countries with optimal production costs.
  • Differentiation of order delivery time.
  • Service Level Differentiation

Supply flexibility and responsiveness

  • Flexibility in the use of internal capabilities.
  • Flexible shift/payment models.
  • Organization of the regional supply chain

Risk minimization

  • Increasing the number of sources of supply and moving away from the policy of using a single source.
  • Regular analysis of suppliers' financial risks and their mitigation through risk-sharing partnerships.
  • Transparency and constant control over the operational performance of key suppliers

Supply Chain Simplification

  • Development of multifunctional personnel to solve complex problems.
  • Adaptation of the product to the needs of the customer in the later stages.
  • Use of distributors and partners through other channels

Despite the fact that leading companies pay a lot of attention to DRM, most of them have DRM formed naturally, and not consciously formed. However, higher profitability can be achieved not only by managing the CPU, but, to an even greater extent, by consciously shaping, managing the CPU configuration. In addition, unexpected changes in the external environment can also force us to reconsider the previous CPUs and re-evaluate the soundness of agreements between partners.

It is important to consider what the strategy of the emerging CPU will be, and also that this strategy is consistent with the overall strategy of the company. No less significant is the correct choice of participants in the CPU, but more on that below.

Among factors which should be taken into account when designing a CPU, the most significant are the intended type of distribution of the product, the characteristics of the product and the goals of customer service (for example, there are "Alphabet of taste", « crossroads " and "Pyaterochka").

DISTRIBUTION TYPES:

  • at intensive distribution typical for consumer goods (bread, meat, shampoo), the product is sold to the largest possible number of wholesale and retail trade structures suitable for this;
  • for goods selective distribution (clothes, household appliances, furniture), it is important to focus on potentially profitable customers and establish strong working relationships with them. If the product requires after-sales service (household appliances), the number of retail outlets is limited or service centers are organized;
  • at exclusive distribution (usually these are the so-called branded goods), the right to sell in a certain territory is granted to only one company. In this case, the manufacturer retains control over the channel, products are usually sold in a more aggressive manner, and through the formation of a special image and brand loyalty, it is possible to charge higher retail prices.

Product characteristics to consider when designing a supply chain: "expensive" and "cheap" products, high-tech products, heavy and bulky products, perishable products, seasonal products, and the depth and breadth of the product line.

  • At the same time, it should be noted that maximizing the total profit of the CPU does not automatically entail an increase in the profit of each of the participants in the CPU.

The concept of supply chain management (management stages, tasks, benefits, functions, strategies). The evolution of supply chains. SCM in the West, foreign market of solutions: ERP systems. SCM with Russian specifics and the domestic market of solutions (examples).

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Management of modern supply chains allows you to reliably control and direct commodity, as well as information and financial flows related to them from primary suppliers, manufacturers and sellers of goods to end buyers within the agreed time frame. Supply chain management and logistics can be understood as a tool for preparing, conducting and completing commercial transactions. Reliable supply chains ensure the continuity and sustainability of the production and distribution of international companies.

In the conditions of the modern world economy, many transnational corporations, manufacturing companies place orders at the factories of their numerous subcontractor suppliers as part of international cooperation. This development of world production has led to a partial loss of control over supplies, leading to additional financial costs, delays in deliveries and non-fulfillment of contractual obligations. In the case of international sales transactions, supply chain management has its own specific features, since the goods must go through a fairly strictly established regime of export-import procedures in accordance with international rules, foreign trade, customs and currency legislation of the country of the exporter, importer. Supply chain management and Logistics can be understood as a tool that ensures the preparation, conduct and completion of commercial transactions. At the same time, the purchase and sale transaction itself is understood as the starting point, after which all relations with production management, procurement and supply activities are built, including providing production with the necessary material and technical resources, transporting and storing elements of logistics, inventory management and optimal on time issuance of everything that is necessary for production to maintain its rhythm and high-quality manufacturing of finished commercial products.

The purpose, task of supply chain (chain) management is to ensure the integration, coordination of individual links in the chain: the purchase of raw materials, materials, components, their delivery, storage in warehouses within the production cycle and delivery of goods to the end consumer.

In supply chains, it is often necessary to deliver goods under foreign trade contracts in accordance with the terms of Incoterms and international transportation rules, and go through export-import procedures. Such supply chains may contain logistics distribution centers, manufacturer's warehouses, intermediate warehouses in the country of shipment, transit, customs warehouses. As a rule, the supply chain of large manufacturing companies involves many participants from various sectors of the economy: suppliers, subcontractors, subsidiaries producing raw materials, materials, components; directly the manufacturer or several manufacturers of the final product-goods; freight forwarding companies, carriers, etc.

In many large technology companies, structures are created to optimize the supply of goods. Companies most often create the following divisions, departments in order to organize and control the supply of goods:

Order management

Order fulfillment management

Supply management (supply management, procurement)

Manufacturing planning management (production planning management)

Logistics management (logistics management)

The main responsibilities in supply chain management are the integration of the above structural units into a single system, assistance in resolving issues related to order fulfillment at various stages, delivery, export and import of goods. Supply chain management is a specific management strategy that allows you to ensure the synchronization of individual links in the chain, optimize the time and cost of supplying goods.

Supply chain management is the control and planning of all activities of the company for the supply of goods from the moment the contract is concluded and the order is placed until the delivery of the goods to the final consumer.

Modern information systems play a very important role in supply chain management. Information systems are used to plan the purchase of raw materials, components, control the fulfillment of orders and synchronize the entire supply chain as a single system. Information systems allow you to control warehouse stocks, provide the appropriate workflow and the formation of the necessary shipping documents for transportation. When using information systems, a high degree of optimization of operations in the supply chain is achieved, time and costs for order fulfillment are reduced. Information technologies make it possible to integrate and synchronize the entire supply chain at a much higher level, to minimize the resources consumed.

Reliable supply chains ensure the continuity and sustainability of the production of international companies, their long-term systematic development. A well-formed supply chain allows you to increase sales, improve the quality of supplies and attract new customers. Thus, supply chain management plays a key role in modern international business, providing a real tool for the development of the international division of labor and world trade.

Based on the materials of the book "Foreign Trade" (http://dis.ru/shop/book/371).

"Logistics in foreign trade"(http://dis.ru/shop/book/374), authors Kretov I.I., Sadchenko K.V., ed. Business and Service. Logistics in foreign trade activities. Kretov I.I., Sadchenko K.V., study guide. 2nd edition revised. and additional Grif UMO, Moscow: Business and Service, 2006, (http://dis.ru/shop/book/374)

Approved by the Educational and Methodological Association for Education in Marketing as a teaching aid for students of higher educational institutions studying in the specialty 080111 (061500) - Marketing.

The book deals with export-import logistics operations, touches upon the most problematic issues in logistics and the procedure for their resolution in practice.
Practical examples of contracts for import, export, as well as the most typical contracts for the forwarding of export-import cargo are given. The main obligations of forwarders appointed by the seller and the buyer are formulated, depending on the terms of delivery in accordance with Incoterms.

The book is intended for a wide range of business people involved in foreign trade activities, managers, employees of enterprises, trading companies, freight forwarding firms, representative offices of foreign companies, lawyers, students and graduate students of economic universities, university students in foreign economic activity, logistics, supply chain management courses , as well as for all readers who wish to get acquainted with the basics of logistics and foreign trade.

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