The Research On SC Coordination Strategy

Currently, the supply chain management (SCM) has become a popular topic of the academic circles. One of the important contents of SCM is the coordination of the different parts in a supply chain. Coordinating, as an important means to keep the supply chain working steadily and effectively, has already caused extensive concern. It has important theoretical and realistic meaning to carry on a thorough analytical and comprehensive research on the coordination in SCM.Based on analyzing and summarizing a large volume of domestic and foreign literature on SCM, the paper focuses on researching theoretically coordination in SCM from two aspects: strategy designing and performance measurement of SC coordination, and arrives at some useful conclusions. The main points and innovations of the paper are as follows:Firstly, the system characteristic of supply chain is analyzed from the view of system theory, the basic idea of SCM is explained by contrast with the traditional management, and the definitions of SC and SCM are given respectively. The connotation of the SC coordination is analyzed thoroughly with reference to the synergetics and the organization behavior theory, the existing SC coordination methods are summarized and categorized, and the SC coordination hierarchy model is given.Secondly, the principal-agent problem led by the conflict of interests in the SC partnership is analyzed, and the principle in designing the SC coordination strategy is derived based on the incentive mechanism designing principle in principal-agent theory. The shortages of the existing SC coordination strategy are discussed, and in order to apportion the common interest brought by SC cooperation fairly and reasonably, an interest-allotting mechanism based on Shapley Value method with correction factor fully considering all sorts of risks in SC partnership is proposed. The application of this mechanism is discussed while the risk factor is determined by using the method of AHP and FCE.Lastly, the concept of SC coordination performance evaluation is analyzed thoroughly. The performance evaluation index system is established including three aspects: the SC members' competence, the consumer value and the social benefit. And the involving index are classified and explained. The corresponding evaluation method is given. Finally, for the purpose of confirming the validity of the evaluation index system and model, the paper designates an iron & steel company's supply chain system to carry on the real diagnosis analysis.