Research Of The Industrialization Of The Dingxi City,s Chinese Medicine Based On Supply Chain

Since the 1980s, the agriculture in China has attained great achievements. With the process of the industrialization of the agriculture, the deep processing of the agricultural products has made great development, which helps the processing of the agricultural products become the most profitable step among the whole supply chains of the agricultural products. The Chinese medicine industry of the Dingxi city is a backbone industry for the city. That's because the city is blessed with the natural advantage for the planting of the Chinese medicine and is named the"the city of medicine"in China.Nowadays, the processing of the Chinese medicine in Dingxi city has faced its bottle neck, that's the insufficient materials and the high cost of the circulation. Therefore, a new mode of cooperation is eagerly needed.Based on the theory of the supply chains, the management of the supply chains as well as the cooperative mode under the E-commerce and supply chains, the essay analyzes the SWOT of the Chinese medicine industry and the cooperative mode between the industrial enterprises and the farmers. Then, the essay explores the necessity of the implementation of the cooperative mode under the E-commerce and the supply chains. The research results are as follows:(1) The processing of the Chinese medicine in Dingxi boasts of its sufficient materials and its Chinese medicine has been branded thus enjoys a good reputation both at home and abroad. Secondly, the Dingxi government provides supports in the aspects of policy and funds to the development of the Chinese medicine industry. In addition to these, the Chinese medicines are highly demanded in the international market. All the above facts offers a good opportunity for the development of the Chinese medicine industry.(2) The cooperation between the enterprises in charge of the processing of the Chinese medicine and the farmers who provides the Chinese medicine materials is low-efficient, which is caused by the following problems: There is no mutual trust between the cooperators who are unaware of the share of the loss and the interests. What's more, they lack communication.Based on the above problems, the essay proposes a new mode of cooperation which is built on the E-commerce and supply chains. This new mode of cooperation takes the Chinese Traditional Medicinal Material Ltd of the Zhang Family as the essence and connects the farmers of the Chinese medicine as well as the demander of the Chinese medicine, thus forming a bipolar. Secondly, the essay also explores the central position of the Chinese Traditional Medicinal Material Ltd of the Zhang Family in this new mode of cooperation. The problems which dingxi met in its industrialization process had been solve by using some strategy such as Information Sharing, joint-stock, branding, and set up the sale network.