| Since the 1990s, competition is more and more fierce with the fast advancement of technology, developing productivity, forming of global information network and global market, and change of consumer demand. Companies face a fast-changing and difficult-to-forecast market in the global competition. Traditional business models are slow and passive to respond to the fast changes of market. In the background, horizontal integration is emerging, and becomes hot topic of management and business arena. Supply chain management is a representative of this thought.Supply chain management is an integrated thoughts and ways. It focuses on efficiency and effectiveness of the total supply chain. It also focuses on cooperation of companies. Its objectives are to raise consumer's satisfaction and reduce total cost. It also seeks tradeoff of the two objects. So companies of the supply chain can gain and keep persistent competitive edge. And competency of the supply chain can be raised.This paper has discussed historical background, important ideas, interrelated economic theories, efficiency and objectives, key problems of supply chain management. It has also pointed out companies should set up new management models to fit the new competitive environment.Through analyzing some successful experience of first-class companies, the author shed some lights on how to realize cooperation and information sharing among companies. Also, the author further discusses the effective means of supply chains management in timely responsiveness, improving customer satisfaction and reducing overall costs.The last part provides some suggestions of how to transform internal logistics within the company into supply chains in dealing with the inefficiencies of current business models that exits in Chinese companies. Suggestions regarding the creation of favorable macro-economic environment for Chinese companies are also provided, in the hope of being helpful for the adaptation and improvement of company's competency. |
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