| Since the 1990s, competition is more and fiercer with the fast advancement oftechnology, developing productivity, forming of global information network andglobal market, and change of consumer demand. Companies face a fast-changing anddifficult-to-forecast market in the global competition. Traditional business modelsare slow and passive to respond to the fast changes of market. In the background,horizontal integration is emerging, and becomes hot topic of management andbusiness arena. Supply chain management is a representative of this thought. The theory of supply chain management was introduced into our country only inseveral years. Supply chain management emphasizes the efficiency and effectivenessof total supply chain and focuses on cooperation of companies. It makes thecompanies of a supply chain can gain and keep persistent competitive advantage.And competency of the supply chain can be raised. After joining WTO, with themore and more fierce competition in global market, it' s important to enforce theresearch of application of SCM and induct companies establish strategic alliancewith supply chain. It can boost the whole competitive ability of Chinese companies,exploit international market swiftly. In my thesis, I firstly introduce the background and development of SCM,summarize the concept of SCM and discuss the correlative basic theories such ascharacter, influencing factors, content, competitive advantage, principle, establishingprocesses of SCM. Lastly summarize the development course of SCM in China. Supply chain is a network of facilities and distribution options that performs thefunction of procurement of materials, transformation of these materials intointermediate and fished products, and the distribution of these finished products tocustomers. Supply chain management is an integrated thoughts and ways. It focuseson efficiency and effectiveness of the total supply chain. It also focuses on 4cooperation of companies. Its objectives are to raise consumer's satisfaction andreduce total cost. It also seeks tradeoff of the two objects. So companies of thesupply chain can gain and keep persistent competitive edge. And competency of thesupply chain can be raised. Secondly I introduce basic theory of competitive advantage, analyze effect howSCM bring up competitive advantage. Implementing SCM can effectively integratemanagement taches of members in SCM, such as produce, sale, human resource,research and development, finance; achieve circulating information timely andeffectively outside and inside of company. SCM have strong advantage in cost,congregation, speed and flexibility. In fierce competition of global market more and more companies realize thatonly with supply chain management they can fully use different resource andimprove the competence of themselves and whole group's. In 21 century, thecompetition is not among the enterprises,but among the difficult supply chains. Afterwards expatiate meaning of applying SCM, analyze actuality and issuesthat Chinese companies, especial manufacturing companies, apply SCM, basedresearch report of SCM in Chinese manufacturing enterprise. The problems areas follow. 1. Lack of trust conduce short-time cooperation. This is ubiquitous issue andbiggest obstacle which restrict development of SCM in China. 2. Information system does not match enterprise operation flow. It depresseseffect of SCM. 3. Efficiency of SCM is low. There is prodigious distance between China andother developed countries in training professional person. The enterprisemanagement system is unsuitable. They defer extending and developing SCM. 4. Organize structure of most Chinese corporation is traditional beeline-pyramid.It causes information flow unsmooth, feedback to market movement insensitive. 5. Short-time behavior of SCM, do not put in corporation strategy. Chineseenterpr...
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