Principle 1Companies must have sufficient financial knowledgeto customers and use this understanding to strengthen financial control, thecompany will be able to create value for thecustomers. Company shouldanalyze the profitability of their department and the service package costs andbenefits, in order to ensure a reasonable return on investment and the mostadvantageous resource allocation.Principle 2Becauseof thenew inventory allocation strategy and management outsourcing, the return ofassets and income increased dramatically inorder to achieve the profit growth. Asa result, the mission of the warehouse, number, location and fundamental changeof ownership structure is often necessary. Thenetwork will need to “real time” decision support tools more powerfullogistics plan, these tools to tackle the problem of distribution moresensitive.Principle 3The company’s inventory and warehouse cost islow to maintain the price level and restrictions on the ability of discountgreatly enhanced.
Sdemand across the boundaries of companies, involved in all aspects of the supplychain, joint development and maintain excellent supply chain management operationthe capabilities required.Principle 4Manufacturers set production goals accordingto the finished product demand forecasting and inventory to offset theprediction error. Manufacturersextrudesupply chain delivery time, strengthen the ability to respond to marketsignals, speed up the transformation from raw material to finished product, tomeet customer demand, so as to enhance its flexibility, always keep the productconfiguration decision-making closer to the demand.
Real-timeproduct differentiation is the key to find the leverage point in the process ofproduction.Principle 5Manufacturers are also aware that partners must share goals toreduce costs throughout the supply chain, in order to reduce the market priceand increase profit margins. Fullyunderstand the cost of all goods including directmaterials,maintenance, repair and operating supplier. So they are in the best way to buy an importantfoundation to make the company get a variety of materialsand servicesPrinciple 6The system must be able to deal withday-to-day transactions in the supply chain and e-commerce, thus order by sharinginformation and schedule to help adjust the supply and demand. Thesystem must facilitate planning and decision-making tosupport demand and transportation planning and master production schedulingrequired for efficient allocation of resources. Comprehensivedata also provide by the system through the tool to realize the strategicanalysis for high-level “assumption” used in the scenario planning tohelp managers assess factory, distribution, centreand third party service supplier selection.Principle 7Good supply chain managers to take a broaderperspective to take steps to apply to every link of the supply chain, includingservice and financial indicators. Thesemeasures in terms of perfect order is service – in commitment, complete,pricing and billing is correct when arrived in order.
Goodsupply chain manager by identifying service account activities required for theactual cost and income to determine its real service profit ability.Methodological CritiqueIt isempirical. Thereview included only empirical papers. Here,the empirical methods including the collection and analysis of primary orsecondary data, including the use of the investigation, case studies,interviews and laboratory experiments, theoretical construction and systematicliterature review and concept. Experienceusing the method of the thesis, therefore, such as mathematical modellingand expression but rely on anecdotal evidence exclusion criteria for review ofmanuscripts.
Purchasing factors involving the purchase of raw materials formanufacturing products and components. Involvedin procurement, conversion and all logistics management activities of planningand management of all activities. Importantly,it also includes and channel partners (can be suppliers, intermediaries,third-party service providers and customers) of the coordination andcooperation.
Inessence, supply chain management integrates supply and demand management withinand across the company’s company. Sustainable development has become a widely intoday’s business world and society in the field of a huge popular vocabulary. Forexample, it is difficult to walk on the newsstand, and at least see a magazinecover, there are other energy, climate change or floating of the polar bear onthe ice. Thereare many factors that can encourage sustainability is increasingly prominent,including supply and demand characteristics of energy consumption, the increaseof scientific knowledge related to climate change, and the organizationalenvironment and social action of greater transparency (Megan, 1999). These problems related to the managers,because their stakeholders – customers, regulators, non-governmentalorganizations, and even their own employees – are increasingly required totissue affected by its operations and management of environmental and socialproblems. Supplychain management through the supplier selection and supplier development, forexample, mode and means of transport, the vehicle route selection, locationdecision and packaging options, the positive or negative impact on environmentand social performance, in a particularly advantageous position. Despite these and other researchers toundertake the social responsibility paradigm of economic responsibility, butmany extant literature in the field of “social responsibility”logistics environment and/or social level of CSR has been operating, withoutexplicitly consider economic performance. Inthe industry, managers often take social responsibility as a responsibility -this is not necessarily can bring financial rewards.
Althoughwe have some speculation, but these misunderstandings may causes include thelack of economic performance more clearly into the framework of socialresponsibility, lack of transparency (such as an early stage before theInternet or Internet management company) and simply use the word”responsibility”, and how to show the content to managers andacademics (Scott, 2014). This is to convey sustainability is of greatsignificance for the organization a kind of simple way, also is the powerfultools for the potential. Notsuggest the enterprise recognition and participation has wanted to help, or atleast does not harm the economic performance of the social and environmentalactivities, triple bottom line clearly guide managers to determine theactivities that improve the economic performance and instructed to avoid socialand environmental activities in this intersection.Belong to the examples of the triple bottomline activities include related to reduce packaging cost savings and moreeffective reuse and recycle design; Thehealth and safety of low cost, and due to the more secure storage andtransportation and improve the working conditions of resulting in a decline inturnover and recruitment costs; Lowerlabourcosts, improve motivation and productivity, reducing absenteeism due toimproving working conditions; Reducecost, shorten delivery time, improve product quality, reduce due to implementthe ISO 14000 standard and the use of disassembly and reuse design due to thedisposal cost andimprove organizational reputation, which can make the company more attractiveto customers and suppliers (Steven, 2004).In order to respond more accurately to theactual needs of customers and will minimize inventory, leading companiesadopted many market management technology.
Now,the name has become a local JIT manufacturing supply chain management anddistribution, quick response (QR) and efficient consumer response (ECR), partof the vendor managed inventory (VMI), etc. Thesetools is to help establish a comprehensive supply chain structure.OpinionA 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). ConclusionDue to many factors, the current supply chain is becoming more andmore complex. One of the biggest challengesis how to reduce supply chain cost. Inorder to meet the customer’s price expectations, companies choose movingmanufacturing to low-cost countries around the world, to reduce the direct andindirect costs, and try to reduce taxes. However,the complexity of global suppliers of delivery time to extend made asignificant contribution. Clientsshould not only low price, also sell products on time. Another factor of challenge is the pursuit ofnew customers.
Product developmentfrom research to the cost of the product introduction is very important. Therefore, the company is trying to expand inemerging markets distribution, in order to increase income, increase the marketshare. The company all overthe world are expected to expansion in domestic and overseas markets. Due to the trade policy, fees and governmentpolicy, it difficult to introduce new market (Berrios, 2014).In the age of most of the products has beencommercialized, the visibility is particularly important. Pricing, features and brand awareness is enoughto make out a competitor’s day has gone.
In theglobal market differentiation and in the supply chain and product innovation isas important as what happened. Whenthe market down high price return, the enterprise must be achieved byredesigning and strengthening the supply chain profit targets, and then use theimproved business for more complex customers with value-added services. Logistics leaders are increasingly responsiblefor delivering the traditional products, but also support the development ofnew products, production and transportation.
As the company wants to expand growth andrapidly extended to promising new market, they will have to seriously considertheir current ability of supply chain, and the capacity is enough to supportthe global competition. Willfind a lot of people, in order to support current and future business goals,they will have to reconsider their management processes, and adopt a moreflexible approach.In the face of global operations, marketexpansion, quality and regulatory standards stricter, enterprises have to facethe different suppliers and customers from different geographic location of alarge amount of information. Thisincludes the data from each stage of the supply chain, such as direct andindirect material price, labour contracts, lease contracts, tax files, freightlist and certificate of compliance and so on (Uhlenberg, 2002).By themanufacturer’s supply chain management system with suppliers and partners ofsupply chain management system, data management and integration is the key tosolve these challenges. Datamanagement and integration provides manufacturers with the procurement,manufacturing, warehousing and logistics all supply chain processes such asattention and control.