Risk Identification And Prevention Of Eternal Asia Co.'s Supply Chain Based On SCOR-model

The environment of enterprise's supply chain is changing with economic globalization and fast development of network technology.As links between upstream and downstream companies are closer,the global supply chain is exacerbated.The competition in the global market presents the trend of network competition.The original competition between individuals turns into the competition among supply chains.If the risk is not well managed,it will jeopardize company's operation of supply chain.In China,with manufacturers outsourcing non-core businesses,a large number of service providers for supply chain management emerged in Shenzhen.Service providers for supply chain management carry out storage,marketing and prepayments to upstream manufacturers.In the meantime,they provide procurement,advance payment and delivery service to its downstream retailers.They set "logistics,business flow,capital flow,information flow" in one.As links are very close among service providers for supply chain management and their upstream and downstream enterprises,any troubles on the supply chain will form a domino effect.Therefore,service providers for supply chain management also face high risk of supply chain.Risk identification and prevention of supply chain becomes an important issue which needs to be focused on by service providers for supply chain management.The main analytical methods used in this dissertation are literature review,case study and questionnaire survey methods.The main content of this dissertation is to study risk identification and prevention of Eternal Asia Co.'s supply chain.This dissertation is divided into six parts.The first part of this paper is an introduction.It includes the background and significance of the research,literature review,clues and methods of the research and contents and framework of the research.The second part of this paper is a theoretical overview,which consists of definition and classification of risk of supply chain,the system of risk identification and prevention of supply chain,the introduction of related theories of SCOR model and the theoretical basis of risk identification and prevention of supply chain.The third part is a brief introduction of the case background of Eternal Asia Co.'s Company.It mainly includes the brief introduction and financial position of Eternal Asia Co.,the operation mode of Eternal Asia Co.'s supply chain and the rebuilding of risk identification model of Eternal Asia Co.'s planning process,procurement process,marketing process and delivery process.The fourth part aims at analyzing the risk existing in the company's planning process,purchasing process,sales process and distribution process based on the model created in the third part.Risk of aggressive strategic plans and inconsistent corporate goals with those on the supply chain exist in Eternal Asia Co.'s planning process.Risk of overstocking of the purchasing management process leading to a large backlog of inventory and insufficient supplier capacity or bankruptcy exists in the purchasing process.Risk of improper distributors causing the long period of sales and bad debt losses and fast increasing marketing expense and high cost of sales returned are identified exists in the marketing process.Risk of rocketing price of other logistics company's delivery,other logistics business services' poor quality and the lack of information sharing risk in the supply chain exists in the dispatching process.In the fifth part,it evaluates the risk of Eternal Asia Co.'s supply chain based on the fourth part.This part aims at optimizing proposals put forward in the sixth part which need focusing on major risk.In the sixth part,proposals are put forward according to the assessment of the risk which are thought to be on high level as follows:(1)improving the company's strategic plans for development;(2)modifying the procurement's oversight system of internal control;(3)strengthening the control of sales collection and returns;(4)optimizing the company's logistics and distribution services.This dissertation builds identification model of risk of EA Co.'s supply chain based on SCOR.It also proposes recommendations to prevent risk of EA Co.'s supply chain based on identification and assessment results.This dissertation can be referenced by Eternal Asia company and other companies.