| Logistic is the third source of earning profit by enterprises, and in order to realize the profit, enterprises should leave out the out-of-date economic management mode by introducing the new rational management mode. Nowadays, the global production chain and the theory deriving from it, which is called the theory of supply chain management (SCM), are the main trend and the important fields of the management of international business enterprise. The core of SCM is to optimize and combine enterprises' internal and external business procedures by realizing information sharing, data exchanging and coordination among the enterprises, such as manufacturers, suppliers, retail traders, retailers and final customers, in the supply chain. It realizes higher efficient production, distribution, sell and service activity on the whole and increases the profit of enterprises by ways of shortening the cycle of delivering goods, reducing the turnover stock and reducing the response time of customers.Following the high-speed development of the information technology, the competition between enterprises is becoming fiercer and competitive methods are more complicated. Although it is not long since Electronic Commerce came into birth, EC has developed quickly and already received governments and business enterprise's extensive attention and participation, which quickly and remarkably changes various kinds of traditional trade content and form of activities that people had accustomed to for a long time. The share of information is the foundation of fulfilling the high-efficient SCM. SCM coordination is on the base of high-quality information transmission and sharing among each node enterprise on the chain. Therefore, the valid supply chain management needs the support of information technology system.In order to successfully practice the SCM and to make the SCM a real competitive weapon, we should abandon traditional management ideology and take the operations of enterprises' inner parts or node enterprises as a whole function process, which is the system of Integrated Supply chain management (ISCM). With the modern technology of information, production and administration, enterprises can organically integrate the three key elements of business: humanity, technology, and management, and make them cooperate better. Through the efficient control and coordination of the materiel in production, the information in management and the decision in the decision-making procedure, enterprises can manage the both internal and external supply chains and reach the overall dynamic optimum target. Only in this way could enterprises meet the demand of the more competitive market, which requires participants to build up a moreflexible production and management process with higher quality but lower cost.In China, although the support technology of SCM and the industry of delivery, retail, storage transport service endure a good beginning in recent years, the realization of SCM still faces great problems, And some factors required by the EC environment are also immature, such as, infrastructure, technological terms, humane terms etc. Therefore, the combination of SCM and EC still has a long way to go, The primary task at present is to deal with and settle the following problems, for example, the traditional ideal and talents problems in economic organizations, as well as the cooperation problems in traditional enterprises and inter-enterprises. In order to deal with those problems encountered by the Chinese supply chains, we should make our efforts on the following two fields: One is to speed up the process of renewing the old ideas in our enterprises; the other is to cultivate the talents being capable of managing the supply chains. Last but not the least, the enterprises should adopt series of internal revolutions: change the organization, adopt the advanced management skills, and set up the rational performance appraisal system, so as to reach the end of optimizing the SCM.This essay introduce the basic theory of SCM and developme...
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