Principle costs throughout the supply chain, in order to

Principle 1

Companies must have sufficient financial knowledge
to customers and use this understanding to strengthen financial control, the
company will be able to create value for the
customers. Company should
analyze the profitability of their department and the service package costs and
benefits, in order to ensure a reasonable return on investment and the most
advantageous resource allocation.

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Principle 2

of the
new inventory allocation strategy and management outsourcing, the return of
assets and income increased dramatically in
order to achieve the profit growth. As
a result, the mission of the warehouse, number, location and fundamental change
of ownership structure is often necessary. The
network will need to “real time” decision support tools more powerful
logistics plan, these tools to tackle the problem of distribution more

Principle 3

The company’s inventory and warehouse cost is
low to maintain the price level and restrictions on the ability of discount
greatly enhanced. S
demand across the boundaries of companies, involved in all aspects of the supply
chain, joint development and maintain excellent supply chain management operation
the capabilities required.

Principle 4

Manufacturers set production goals according
to the finished product demand forecasting and inventory to offset the
prediction error. Manufacturers
supply chain delivery time, strengthen the ability to respond to market
signals, speed up the transformation from raw material to finished product, to
meet customer demand, so as to enhance its flexibility, always keep the product
configuration decision-making closer to the demand. Real-time
product differentiation is the key to find the leverage point in the process of

Principle 5

Manufacturers are also aware that partners must share goals to
reduce costs throughout the supply chain, in order to reduce the market price
and increase profit margins. Fully
understand the cost of all goods including direct
maintenance, repair and operating supplier. So they are in the best way to buy an important
foundation to make the company get a variety of materials
and services

Principle 6

The system must be able to deal with
day-to-day transactions in the supply chain and e-commerce, thus order by sharing
information and schedule to help adjust the supply and demand. The
system must facilitate planning and decision-making to
support demand and transportation planning and master production scheduling
required for efficient allocation of resources. Comprehensive
data also provide by the system through the tool to realize the strategic
analysis for high-level “assumption” used in the scenario planning to
help managers assess factory, distribution, centre
and third party service supplier selection.

Principle 7

Good supply chain managers to take a broader
perspective to take steps to apply to every link of the supply chain, including
service and financial indicators. These
measures in terms of perfect order is service – in commitment, complete,
pricing and billing is correct when arrived in order. Good
supply chain manager by identifying service account activities required for the
actual cost and income to determine its real service profit ability.

Methodological Critique

It is
empirical. The
review included only empirical papers. Here,
the empirical methods including the collection and analysis of primary or
secondary data, including the use of the investigation, case studies,
interviews and laboratory experiments, theoretical construction and systematic
literature review and concept. Experience
using the method of the thesis, therefore, such as mathematical modelling
and expression but rely on anecdotal evidence exclusion criteria for review of

Purchasing factors involving the purchase of raw materials for
manufacturing products and components. Involved
in procurement, conversion and all logistics management activities of planning
and management of all activities. Importantly,
it also includes and channel partners (can be suppliers, intermediaries,
third-party service providers and customers) of the coordination and
cooperation. In
essence, supply chain management integrates supply and demand management within
and across the company’s company.

Sustainable development has become a widely in
today’s business world and society in the field of a huge popular vocabulary. For
example, it is difficult to walk on the newsstand, and at least see a magazine
cover, there are other energy, climate change or floating of the polar bear on
the ice. There
are many factors that can encourage sustainability is increasingly prominent,
including supply and demand characteristics of energy consumption, the increase
of scientific knowledge related to climate change, and the organizational
environment and social action of greater transparency (Megan,

These problems related to the managers,
because their stakeholders – customers, regulators, non-governmental
organizations, and even their own employees – are increasingly required to
tissue affected by its operations and management of environmental and social
problems. Supply
chain management through the supplier selection and supplier development, for
example, mode and means of transport, the vehicle route selection, location
decision and packaging options, the positive or negative impact on environment
and social performance, in a particularly advantageous position.

Despite these and other researchers to
undertake the social responsibility paradigm of economic responsibility, but
many extant literature in the field of “social responsibility”
logistics environment and/or social level of CSR has been operating, without
explicitly consider economic performance. In
the industry, managers often take social responsibility as a responsibility –
this is not necessarily can bring financial rewards. Although
we have some speculation, but these misunderstandings may causes include the
lack of economic performance more clearly into the framework of social
responsibility, lack of transparency (such as an early stage before the
Internet or Internet management company) and simply use the word
“responsibility”, and how to show the content to managers and
academics (Scott,

This is to convey sustainability is of great
significance for the organization a kind of simple way, also is the powerful
tools for the potential. Not
suggest the enterprise recognition and participation has wanted to help, or at
least does not harm the economic performance of the social and environmental
activities, triple bottom line clearly guide managers to determine the
activities that improve the economic performance and instructed to avoid social
and environmental activities in this intersection.

Belong to the examples of the triple bottom
line activities include related to reduce packaging cost savings and more
effective reuse and recycle design; The
health and safety of low cost, and due to the more secure storage and
transportation and improve the working conditions of resulting in a decline in
turnover and recruitment costs; Lower
costs, improve motivation and productivity, reducing absenteeism due to
improving working conditions; Reduce
cost, shorten delivery time, improve product quality, reduce due to implement
the ISO 14000 standard and the use of disassembly and reuse design due to the
disposal cost and
improve organizational reputation, which can make the company more attractive
to customers and suppliers (Steven,

In order to respond more accurately to the
actual needs of customers and will minimize inventory, leading companies
adopted many market management technology. Now,
the name has become a local JIT manufacturing supply chain management and
distribution, quick response (QR) and efficient consumer response (ECR), part
of the vendor managed inventory (VMI), etc. These
tools is to help establish a comprehensive supply chain structure.


A regular market system used to be dominated by large and medium-sized enterprises organized supply chain driven. This led to the logistics, cold chain and processing industry as well as support for the export market. Throughout the supply chain management system based on perfect information, investment, financial and contractual arrangements.GMB and CSC lieutenant in keeping the agricultural products supply chain efficiency has played a significant role. In the formal market, production methods and irrigation system has been properly coordinate data and information, to strengthen the supply chain decisions. Although previously excluded from the agricultural market of small farmers to participate in a very worthy of praise, but also processing enterprises and fewer formal market (Hawken, 2001).
Because of the lack of consistent data, it is difficult to distinguish between the number of participants and how much they can sustain. In addition, informal market governance structure is unreasonable, not to collect reliable data. Given that many value chain actors is not keen to pay they think the knowledge of the public goods, knowledge brokers rarely willing to gather information and provide information to strengthen the supply chain. As a result, because the profit of supply chain, supply chain is still unstable. The right data acquisition system will support a market-driven production system based on supply chain. In the case of timely coordination of information sharing, supply chain management is possible. But for most executives, revenue growth is usually the most important, is directly affected by the supply chain. There is little doubt that reliable delivery system is vital for the product to the market. However, transportation impact on revenue is more than deliver the products to customers. Time relationship and income is a good example. The short life cycle in the process of production, rely on the ability to transport perishable goods and necessities and reliable transport network to maintain its value. In the ports of Los Angeles warehouse, holiday sweaters in the peak season of the transport demand under the orders will not bring income to the retailers or distributors (Pearson, 2005).

Transport in other ways also affect the top line. For example, must ensure that delivery the goods in the retail customer emergency parameter range of suppliers will be able to easily arrange the urgent transport service, rather than the deductible and unhappy customers. On time and implementation of lean production manufacturers are more likely to use supplier of transport and delivery of information added value. The entire supply chain the initial focus was concentrated in the short-term plan, because it is traditional state of mind. Need persistence and spent several weeks to begin using the process of long-term planning and make sure action is consistent throughout the supply chain. Weekly delivery problem C review with supplier management in this process continues to 12 weeks, but it is interesting to note that pilot began five parts as the long-term planning and visibility throughout the supply chain, the number of less and less (A & M, 2004). 


Due to many factors, the current supply chain is becoming more and
more complex. One of the biggest challenges
is how to reduce supply chain cost. In
order to meet the customer’s price expectations, companies choose moving
manufacturing to low-cost countries around the world, to reduce the direct and
indirect costs, and try to reduce taxes. However,
the complexity of global suppliers of delivery time to extend made a
significant contribution. Clients
should not only low price, also sell products on time.

Another factor of challenge is the pursuit of
new customers. Product development
from research to the cost of the product introduction is very important. Therefore, the company is trying to expand in
emerging markets distribution, in order to increase income, increase the market
share. The company all over
the world are expected to expansion in domestic and overseas markets. Due to the trade policy, fees and government
policy, it difficult to introduce new market (Berrios,

In the age of most of the products has been
commercialized, the visibility is particularly important. Pricing, features and brand awareness is enough
to make out a competitor’s day has gone. In the
global market differentiation and in the supply chain and product innovation is
as important as what happened. When
the market down high price return, the enterprise must be achieved by
redesigning and strengthening the supply chain profit targets, and then use the
improved business for more complex customers with value-added services. Logistics leaders are increasingly responsible
for delivering the traditional products, but also support the development of
new products, production and transportation.

As the company wants to expand growth and
rapidly extended to promising new market, they will have to seriously consider
their current ability of supply chain, and the capacity is enough to support
the global competition. Will
find a lot of people, in order to support current and future business goals,
they will have to reconsider their management processes, and adopt a more
flexible approach.

In the face of global operations, market
expansion, quality and regulatory standards stricter, enterprises have to face
the different suppliers and customers from different geographic location of a
large amount of information. This
includes the data from each stage of the supply chain, such as direct and
indirect material price, labour contracts, lease contracts, tax files, freight
list and certificate of compliance and so on (Uhlenberg,

By the
manufacturer’s supply chain management system with suppliers and partners of
supply chain management system, data management and integration is the key to
solve these challenges. Data
management and integration provides manufacturers with the procurement,
manufacturing, warehousing and logistics all supply chain processes such as
attention and control.






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