The business competition environment promotes the formation and rapid development of the supply chain, and at the same time produces the following four major development directions of enterprise management based on the supply chain, which will change the nature of business competition.
1. Globalization
Enterprises will become more and more globalized. Therefore, how to build a global supply chain for enterprises to meet the needs of the global market and customers has become an important issue for enterprise competition and development. The main points to be considered in building a global supply chain should be the differences in the economic, taxation and legal environments of different countries and regions, and the optimal use of natural and human resources. In this case, companies need to build a global operating system that can deliver products instantly and economically.
2. Responsiveness
Contemporary advanced enterprises have transformed from the business model of speculating demand in the past to a business model that highly responds to demand, and a business response system with high economic benefits has also become feasible. At the same time, there is close cooperation between upstream and downstream manufacturers and enterprise ontology, sharing key operation information and promoting the continuous flow of goods.
3. Financial depth
So far, turnover and profit are the financial indicators for most companies to measure their success or failure. However, these indicators often focus on the achievement of short-term goals, and instead make companies neglect the management of good operating systems required to achieve long-term goals, especially The financial effect of logistics in asset utilization, such as shorter cash collection cycle, reduction of inventory holding time and strategic allocation, zero operating variance, etc. Enterprises can use logistics management as a means to achieve long-term financial performance of the enterprise.
4. Information Relevance
Information has not only played a role in promoting business operations, it will also play a role in promoting new business models. For example, information technology has a high degree of connectivity and can effectively link supply chain related businesses; information technology combined with management science can build advanced supply chain decision-making Support system DSS, such as advanced planning system (AdvancedPlanningSystem), etc.; Internet-based supply chain design.
Based on the above factors, logistics management will become the core of enterprise management in the 21st century. The following 10 major trends will continue to become the mainstream of enterprise logistics and operations management development.
1. From customer service to relationship management
In the past, logistics management still focused on the integration of internal operations and organizations and the response to downstream customers, with service quality as the main management focus. Therefore, the indicators to measure management performance are mostly order cycle time, fill rate, perfect order rate, etc. However, under the development of supply chain management mode, enterprises gradually turn to emphasize the integration between enterprises, which makes the maintenance and management of customer relationship become more and more important. Logistics management has been upgraded from the processing of things to the management of value-added solutions, that is, it is necessary to fully understand the needs of customers and tailor-made goods and services for them.
2. From Opposition to Unity
In traditional business channels, most of the enterprises are self-centered and pursue the terms or methods that maximize their self-interest. Therefore, enterprises are often confronted with each other, and conflicts often arise. However, driven by the pursuit of greater competitiveness, many enterprises have begun to integrate various commercial circulation functions. Through joint planning and operation, the overall performance of circulation channels has been greatly improved.
3. From prediction to final measurement
The traditional distribution model still adjusts various logistics operations and activities by forecasting the internal demand and production of downstream customers. Unfortunately, such forecasts are rarely accurate, resulting in too many commodities that are not in demand in the channel, and demand A situation where urgent items are out of stock. The emerging trend of logistics management emphasizes the joint mechanism between channel members, and members are willing to exchange operational and strategic information, especially their internal demand and production data, so that upstream companies do not need to guess the needs of downstream customers.
4. From experience accumulation to continuous change
For a long time, the experience curve method is a method used by enterprises to analyze market competition trends and develop countermeasures, and uses the experience accumulated over the years as the main competitive weapon. However, with the rapid advancement of technology and the continuous development of new business models, the business model of companies sticking to existing experience and seeking breakthroughs has become an obstacle to the development of emerging channels. For example, for the traditional retail industry, after the rise of the Internet
The formed online shopping information road may have a great impact on traditional businesses in the near future. Thus, in a highly variable environment, experience and the existing pathway infrastructure become the most difficult obstacles to overcome. Successful enterprises can survive in the new century only if they grasp the new strategic direction and carry out continuous management changes.
5. From absolute value to relative value
Traditional financial measures only look at some absolute values, such as market share, but when the impact on a high market share, the corresponding cost may increase rapidly, and the overall profit of the enterprise may not increase but decrease. The new method of measuring success will focus on creating relative value, that is, the proportion of the value added by customers in the value-added services provided in the channel. In other words, success refers to the provision of a company's product or service that creates value for customers, some of which can be given back to the company. Based on the concept of relative value, many innovative value-added services in logistics are continuously produced, such as multi-customer cargo consolidation, cross-docking, and in-transit mixing.
6. From functional integration to process integration
The traditional organizational structure divides departments according to their functions. Although it can achieve specialization in the development of each function, it also causes delays and distortions in localism and information communication. In an environment of increasingly fierce channel competition, enterprises must respond more quickly to the needs of upstream and downstream manufacturers or customers. Therefore, they must effectively integrate the operations of various functional departments and use an operating program system to operate. Most logistics operations and activities have cross-functional and cross-enterprise characteristics, so process integration is one of the keys to the success of logistics management.
7. From vertical integration to virtual integration
In the traditional channel, many large enterprises often carry out vertical integration of the channel, in order to have greater control over the channel. However, the development of this model has not been very successful. Instead, the company's resources have been diluted into areas it is not familiar with, and the business performance of the industry has been eroded. Today's business trend is to focus on core competencies and entrust non-core businesses or functions to external professional companies for management, that is, a main enterprise (such as manufacturing), combined with several professional companies (such as professional logistics companies, professional information companies) ) to form a virtual integration system to provide the main enterprise with better products and services that can supply the market.
Under the trend of virtual integration, the supply chain system has been successfully developed, and the logistics industry has been able to meet the logistics needs of the main enterprises, continuously develop innovative value-added service projects, form a more professional logistics service industry, and provide market customers with more and better and more valuable services.
8. From information retention to information sharing
Under the supply chain management framework, related enterprises in the supply chain must share the information required for supply chain integration with other enterprises, otherwise an effective supply chain system will not be formed. However, many enterprises still have old management thinking and cannot change their concepts quickly. They focus on information retention and information sharing as a supplement, which greatly reduces the development of the supply chain. Driven by new information concepts and technologies such as databases, multiple companies in the supply chain can enter the database to obtain the information needed for operational decision-making, making joint actions more effective.
Nine, from training to knowledge learning
For the foreseeable future, any logistics procedures will still have to be done manually. However, most of the logistics operations must be carried out in various logistics bases and transportation networks. About 90% of the time, the logistics supervisor cannot monitor it personally. For example, the work of a truck driver not only runs on the road, but also has to interact face-to-face with customers, even this A delivery driver may not be an employee of the seller's business. Another example is business personnel and inventory planners. These employees must understand the dynamic characteristics of the supply chain, and at the same time, they must be able to make good use of information tools to help develop effective strategies and implement them. At the same time, the development trend of globalization also increases the complexity of logistics human resource management. Logistics executives must move from training individual personnel skills to knowledge-based learning and development. Take a truck driver as an example. In addition to all the skills required for driving, he must also have relevant knowledge about customer service, corporate database search, and the use of distribution decision support systems.
The successful management of logistics requires logistics practitioners to master key knowledge and capabilities, but the development of this aspect is very insufficient, and more efforts are needed from enterprises and professional educational institutions.
10. From management accounting to value management
Business management has to emphasize digital management, but in the accounting system that generally accepts accounting standards, the financial information displayed by it has many limitations, and cannot provide information that is helpful for management decision-making. Therefore, when the activity-based costing system is developed, many enterprises are willing to devote many resources to establish the ABC management accounting system. Although the ABC management accounting system is better than the general accounting system, it is still mainly used in the enterprise, and it is still a cost-oriented accounting system. In the future, value management will improve the ABC management accounting system, focusing on providing value-creating, cross-enterprise management information to identify and support value-creating activities, rather than just increasing revenue or decreasing costs. Based on the fact that logistics is an activity that creates added value in the value chain, the development of value management will promote the characteristics of logistics to be recognized by enterprises, which will greatly enhance the status of logistics management in the supply chain.