The Structuring & Management Of Supply Chain

With the rapid development of the economic globalization, experts predicted: the market competition in the 21st century is not among enterprises but in supply chains. In the fierce market competition, it's impossible for any enterprise to remain the best in all business. By uniting other up and down stream enterprises, it must set up a trade supply chain in which all enterprises share economic benefit and relevant business. Therefore, they can succeed in sharing complementary advantages and make full use of all possible resources to adapt to the competitive environment of socialized mass production, making themselves more competitive in the market and becoming win-win and gaming sustaining development.The paper mainly discusses a new management idea and method that has been paid close attention to in China and abroad, i.e. the structuring and management of supply chain. The thinking and standpoints are as following:1. An enterprise can gain vast benefit by implementing supply chain management. A. It can accelerate client response speed, make effectively the combination of supply and demand, decreases stock and material flow cost to produce "the third profit". B. It can share information resources and save the social cost. C. It can produce scale effect; raise each enterprise's competitive power in the supply chain.2. It's an important premise in supply chain management to establish a condensed supply chain of high efficiency. The structure of supply chain has several steps in the process: market investigation, enterprise currentsituation analyses, systematic analyses of supply chain, design of supply chain, allocation and implementation of supply chain, performance evaluation of supply chain and redesign. One shall pay attention to the establishment of the partnership in the chain and follow general principles and procedures to evaluate and select partners. Partners in the chain shall trust each other, share information, rights and responsibilities.3. There are 3 "flows" in supply chain: material flow, cash flow and information flow. The management of material flow, cash flow and information flow is main content in supply chain management. Neither of them shall be overlooked. Their smooth flow plays a vital part in the normal operation of supply chain. The risk control in supply chain is the last but not the least. The paper tries to analyze the risks by fuzzy comprehensive evaluation and advocates countermeasures against supply chain risks.4. As to China's enterprises, supply chain management is on the initial phase. One needs to change his mind to implement supply chain management; re-structure enterprise management system and organization; strengthen operation and value the use of exterior advantageous resources, set up restraint mechanism of supply chain; reinforce basic construction of information technology; put up an accurate, fast and efficient modern material flow system.