2010 The Trend Of Supply Chain Reform In China

A report released by Aplixpartners, a US consultancy, shows that the cost of manufacturing in China is rising, mainly due to four factors: the change in the exchange rate of RMB against the US dollar, the increase in logistics costs, the increase in inventory and warehousing costs, and the increase in raw material costs.

In fact, after the "financial turmoil" that has swept the globe has gradually subsided, more and more Chinese enterprises have begun to reflect on how to reduce paction costs and how to enhance the competitiveness of products and services. There may be many problems that need to be reflected, but nothing more than around the "cost, quality and efficiency". These three key words are the three core elements of enterprise supply chain management.

From the perspective of supply chain, enterprises really want to know how to optimize their supply chain, how to reduce costs by optimizing supply chain, and how to optimize customers' experience by optimizing supply chain.

To find the answer, first of all, we need to know to what extent the supply chain management level of Chinese enterprises has developed.

In 2010, when many people thought that they entered the post financial crisis era, China is also increasingly becoming an important production base and consumer market in the world. "Made in China" is reshaping the world supply chain system.

However, the supply level of Chinese manufacturers has yet to be improved over the past twenty years.

Research data show that less than 20% of Chinese enterprises can fully meet the needs of overseas customers.

As Chris Wood Wo, President of China's 500 largest company, said: "competition among modern enterprises is the competition between supply chains."

Starting from the needs of customers, combined with the background of the current era, we focus on enterprises from the perspective of supply chain, and track and explore the upgrading path of enterprise supply chain.

We hope to share the best practices and innovations in supply chain management with people from different industries and logistics providers.

Based on this, in February 2, 2010, experts from the field of domestic supply chain research and practice gathered in the newspaper to hold Sharon.

The experts made in-depth and professional discussions on the new trends and changes of the supply chain in 2010.

Trend 1: the rise of order Logistics

Trend Description: in 2010, the concept of "Internet of things" will be further heated up, and may lead to a new wave of logistics technology.

Some people call the era of the Internet of things "the third wave of the information technology revolution", which is composed of intelligent pportation, intelligent power and intelligent logistics. In terms of intelligent logistics, a prominent requirement is to set up a logistics mode with order production.

Focus topic: to stand out from the competitive blue ocean, enterprises must learn how to cater to the individual needs of consumers.

But the following question is: how can enterprises establish their own order form logistics? What kind of industry can take root order logistics?

Order logistics is suitable for modular industry.

He Mingke: what is the order form logistics? It refers to the production mode which is an order form, and a logistics demand generated by the order type production.

According to the situation in 2010, the order form logistics will have the characteristics of standardization and strong technological innovation ability. The market is basically a production oriented type.

But it needs to be pointed out that not any industry can do order logistics.

The current order based logistics is basically concentrated in the automobile manufacturing industry, home appliance manufacturing industry and so on. They are characterized by modularization and standardization of products, and many sources of raw materials are supplied, and the market is constantly upgrading. This upgrade has evolved with the development of new products, not just pure demand pull.

Manufacturing cost is a difficult problem.

Hu Min: in 1999, Haier provided the service of the refrigerator door color on the Internet, but until now, it has not been sold on a large scale.

The same example is that an American sports Brand Company can make consumers customize according to their own needs, just running shoes, it is divided into elite, high-end, mid-range, etc. This shows that order logistics is more suitable for assembly products.

Conversely, if a chocolate producing company provides customized services, it will cost a lot.

Therefore, it is not enough to just see the supply pattern of orders, and we need to consider its value.

For example, Procter & Gamble has tested with an American company, each product can track when and how much it has expired, but this test is always carried out in the laboratory, because in the real industry, it has to face the problem of rising manufacturing costs, which is a bottleneck that is difficult to bypass.

Wisdom to deal with massive orders

Shen Guoxiong: IBM once put forward a concept of "smart earth", which includes intelligent logistics, intelligent supply chain and other concepts.

How can you make your supply chain smarter? First of all, how to acquire customer information intelligently.

For example, the conference will input the minutes to the computer. The solution of IBM is to automatically recognize the voice as text, and the second is how to use information intelligently.

In the era of massive Internet information, it is necessary to provide appropriate information to the right people; third, how to analyze information intelligently.

For example, in the field of order logistics, how can we make accurate customer demand prediction in the face of many orders?

In fact, these can be done through intelligent tools.

For example, IBM has some related tools that can help you analyze the existing inventory nodes and tell you whether the location of the warehouse is the most perfect.

Therefore, smart information, smarter access to information, and smarter sharing and analysis of information are the main directions of IBM's future supply chain development.

Business logistics is different.

Zhao Yang: the head of a real estate enterprise told me that his understanding of the supply chain of an enterprise is six words: "plan, meeting, process".

It needs to be optimized by various standards, from the beginning to the entire control of input and output, until it is implemented.

Another customer who made food thinks that the supply chain is "futures, two packaging, and three physical chemistry", because their products are greatly influenced by the futures market, and the impact of packaging on logistics is also very obvious.

In fact, for enterprises, there are only two real problems: whether logistics should be organized or how should enterprises set up the logistics mode? Taking China Mobile as an example, it has hundreds of thousands of square meters of warehouses in every province, which are distributed in provincial capitals, county-level cities and town level cities. From this perspective, it is almost the largest logistics company in China. But China Mobile is most concerned about the question of what kind of logistics problems will be determined by what type of purchasing mode, because the pressure brought by group acquisition is the essence of their choice of logistics.

Trends two:

Trend Description: when more and more e-commerce websites such as Taobao, Jingdong mall, Dangdang and so on are springing up, more and more people are getting used to the Internet.

Focus: in 2009, there were 338 million Internet users in China, and the volume of e-commerce pactions in 2010 is expected to exceed 1 billion 500 million yuan.

Under this new trend, how enterprises should make good use of e-commerce platform and combine it with traditional supply chain operation mode will be a new topic that enterprises will inevitably face.

E-commerce enterprises self built logistics will be

He Mingke: since 2008, some traditional logistics enterprises have begun to turn into e-commerce logistics.

The main way to integrate e-commerce and logistics is to order customers online, and then recommend logistics companies to choose from buyers themselves.

However, the integration of e-commerce and logistics is not only that simple.

I imagine that companies like Amazon in 2010 will not be limited to simple courier delivery, but let the supply chain network become part of Amazon's entire business system, and even take logistics as a means of Amazon promotion.

Taking logistics as part of the solution requires logistics channels, business channels and the integrity of information flow channels. It needs to be bundled from the perspective of supply chain rather than simply outsourced to the third party.

With the development of e-commerce, logistics companies can penetrate into the production line of manufacturing companies.

Now, many logistics companies that I have contacted are doing this work. I expect that the convergence of e-commerce and supply chain will be a trend in 2010.