The cooperation between many domestic manufacturers and suppliers still stays in the unstable cooperation mode of simple transaction, which leads to the increase of procurement costs. Then the following is the main direction of supply chain cost control that I share with you. Welcome to read and browse.
1. Ensure both supply and inventory cost control.
On the one hand, to ensure supply, on the other hand, to control inventory costs, both hands should be grasped and both hands should be hard. Realizing rapid supply and effectively controlling inventory cost is the ultimate goal pursued by manufacturing supply chain. Many small and medium-sized manufacturing enterprises in China often ignore the analysis and attention to market demand, resulting in the risk of inventory backlog. The current situation requires China manufacturing industry to pay attention to planning and inventory risks and reduce supply chain costs.
(1) Analyze product characteristics and formulate planning strategies.
Although the traditional MTS (make to stock) production mode is effective, some new production modes should be selected according to the characteristics of industries and products, such as ATO (assemble to order), MTO (manufacture to order) and ETO (design to order). Demand forecasting management is the primary link of supply chain, and the accuracy of demand forecasting in China's manufacturing industry is generally low. In order to accurately predict the market, it is necessary to analyze the macro environment with PEST method, the industry (industry) environment with five-force model method, and the micro environment with SWOT method to calculate the market capacity and market share of enterprises. At the same time, it is necessary to comprehensively analyze the historical sales records and predict the accurate demand.
In the practice of sales and operation planning, we should focus on the following specific matters:
First, the collaborative planning of supply chain enterprises. In order to successfully manage the predictable demand fluctuation, the whole supply chain must strive to achieve a common goal, that is, to maximize the overall profit of the supply chain. Everyone in the supply chain may agree with this goal in principle, but in practice, it is difficult for the whole supply chain to reach an agreement on how to maximize the profit of the supply chain. Because of the different incentive mechanisms, even within an enterprise, it is difficult for all departments to work together to make plans. The marketing department takes income as the incentive factor, and the production and operation department takes cost as the incentive factor. In the supply chain, different enterprises take their own interests rather than the interests of the whole supply chain as the benchmark. If enterprises can't cooperate with each other, the supply chain can only get suboptimal profits, and cooperation can be achieved through joint teams. The motivation of supply chain members must be consistent, and the support of higher management in the organization is very important, because this kind of cooperation usually requires the team to adopt non-traditional operational processes to work. Although it is difficult to achieve cooperation, the benefits are enormous.
Second, when making strategic decisions, we should consider predictable demand fluctuations. Predictable demand fluctuation has a great influence on the normal operation of enterprises, so enterprises must consider the influence of predictable demand fluctuation when making strategic decisions. However, in reality, when making decisions, such as what products the company provides, whether it needs to build new equipment, and what pricing method to adopt, predictable demand fluctuations are usually not considered. The level of profit depends largely on the predictable demand fluctuation, so the success or failure of strategic decision also depends on the predictable demand fluctuation.
Third, design sales and operation plans, and understand and manage the driving factors of demand and use behavior. The goal of the sales and operation planning team should be to understand the real consumer behavior and react. The goal of sales and operation plan should be to manage consumers' use behavior, improve the supply chain and provide products in a surplus way. In order to be successful, the sales and operation planning team must fully understand the needs of the entire supply chain.
Four, when the actual situation or forecast changes, to ensure that the sales and operation planning process is constantly revised to adapt to the changes. It is very important to introduce early warning mechanism in the process of sales and operation planning. Changes in demand or supply environment may lead to different actual plans. In this case, it is important for the planner to remind the supply chain that the original plan is outdated and provide a new plan that takes into account many changing factors. Even if there is no short-term warning, when the forecast and marketing plan are adjusted, the strategies put forward in the process of sales and operation planning should also change.
(2) Make inventory strategy and control inventory cost.
After the 1990s, many experts and entrepreneurs proposed? Zero inventory? Slogan. From the perspective of supply chain, these views have some truth. Do enterprises need traditional inventory? Push? Order strategy? Pull? Strategic change, or for? Push-pull combination? In order to change the strategy, we must adopt some innovative inventory control modes, such as VMI and JIT, and replace physical inventory with information inventory. We should pay attention to effective monitoring and early warning of inventory, digest inventory in time, and reduce inventory cost risk.
Four modes of supply chain inventory
Inventory management in supply chain is not simply demand forecasting and replenishment, but optimizing customer service and profit through inventory management. Its main contents include using advanced business modeling technology to evaluate the accurate effect of inventory strategy, lead time and transportation change; Consider the influence of all aspects of supply chain enterprises when deciding economic batch; Determine the appropriate service level on the premise of fully understanding the inventory situation.
Through the balanced utilization of customers, production, transportation and other resources, enterprises can effectively identify, reduce and control the risks of shortage and delay caused by uncertainty in the supply chain.
According to the different subjects and connotations of inventory management in supply chain, there are mainly the following four modes.
1. Traditional inventory management mode
The inventory management of each node enterprise is fragmented, and each department in the logistics channel manages its own inventory, has its own inventory control strategy and is closed to each other. The traditional supply chain inventory management model is an order-driven static single-level inventory management model based on transaction level.
2. Joint Inventory Management Model (JMI)
JMI model is an inventory management model based on coordination center, which more embodies the cooperative relationship between supply chain node enterprises and can effectively solve the problem. Bullwhip? Effect, improve the degree of supply chain synchronization.
This model emphasizes that enterprises in supply chain nodes participate in inventory planning at the same time, so that every inventory manager in the process of supply chain management can consider the problem from the perspective of mutual coordination, and ensure that the inventory management entities between two adjacent nodes in the supply chain have a high degree of consistency in demand forecasting, thus eliminating the amplification of demand variation.
The determination of the demand of any adjacent node is the result of coordination between the supply and demand sides. Inventory management is no longer an independent operation process, but a link and coordination center between supply and demand.
3. Vendor Managed Inventory Model (VMI)
VMI model is a cooperative strategy between strategic trading partners and an inventory decision-making agent model. It manages inventory with the idea of systematization and integration, and makes the supply chain system run synchronously.
Under this inventory control strategy, the upstream organization can plan and manage the inventory strategy and ordering strategy of the downstream organization. Under a * * * framework agreement, with the goal of getting the lowest cost for both parties, the supplier manages the inventory, and the supplier exercises the inventory decision-making power as a distributor or wholesaler, and constantly improves the inventory management through regular supervision and revision of this framework agreement.
4. Collaborative Supply Chain Inventory Management Model (CPFR)
CPFR is a collaborative supply chain inventory management technology, which is based on the best grading practice of JMI and VMI, and at the same time abandons the main shortcomings such as the lack of supply chain integration between them, which can simultaneously reduce the inventory of distributors and increase the sales of suppliers.
It applies a series of processing flows and technical models to cover the whole supply chain cooperation process, improves the partnership between distributors and suppliers through * * * managing business processes and * * sharing information, improves the accuracy of forecasting, and finally achieves the purpose of improving supply chain efficiency, reducing inventory and improving customer satisfaction.
The biggest advantage of CPFR is that it can timely and accurately predict the sales peaks and fluctuations caused by various promotional measures or abnormal changes, so that dealers and suppliers can be fully prepared and win the initiative. CPFR adopts the principle of win-win, always sets out from the overall situation, takes inventory management as the core, and takes into account other aspects of supply chain management to formulate unified management objectives and implementation plans.
2. Maintain supplier relationship and innovate procurement mode.
In the global manufacturing environment, supplier resources are as important as customer resources. Making purchasing strategy according to the difference of supplier relationship and material category is the premise to reduce the total purchasing cost.
(1) Identify the relationship between supply and demand and formulate differentiated purchasing strategies.
The cooperation between many domestic manufacturers and suppliers still stays in the unstable cooperation mode of simple transaction, which leads to the increase of procurement costs. According to the two dimensions of risk and cost, the Chartered Institute of Purchasing and Supply divides the relationship between buyers and suppliers into four categories to formulate differentiated purchasing strategies. The first category is key suppliers (high risk and high cost), and it is necessary to establish strategic partnerships to reduce product costs; The second category is bottleneck type (high risk and low cost), which is generally designated and low-value supporting products, and it is necessary to establish close cooperative relations to reduce procurement risks; The third category is leverage (low risk and high cost), which needs to form a competitive relationship and reduce procurement costs through bidding; The fourth category is conventional (low risk and low cost), which needs to optimize the cooperation mode, improve cooperation efficiency and reduce procurement and operation costs.
(2) Identify the characteristics of material categories and formulate differentiated purchasing strategies.
For general materials, it is necessary to build a situation in which multiple suppliers compete; Valuable and key materials need to establish a strategic procurement management mechanism; Low value-added materials need to form the advantage of bulk purchasing; Monopoly materials, realize centralized procurement, seek technical substitution, and eliminate market monopoly risks; Materials with frequent price fluctuations should be purchased through the futures market, or the price should be locked by package; For supporting materials, it is necessary to ensure the stability of supply and cost advantage through annual bidding.
(3) Innovating purchasing cost control strategy to ensure the competitive advantage of total purchasing cost.
Purchasing cost control can not only reduce the price unilaterally, but also require the participation of purchasing, suppliers and R&D personnel to realize IPD (Integrated Product Development) mode. The project team makes full use of VA/VE (Value Analysis/Value Engineering) to eliminate, simplify, change and replace redundant or unreasonable functions, performance and quality of products. Top design? In order to rationalize the product cost, we need to take some measures. Reverse mechanism? Define the cost structure of products according to the price target acceptable to the market and customers, so as to reduce the total cost of products.
Why can IKEA's supply chain achieve low cost and high income?
When e-commerce swept through traditional stores, IKEA stood out. Even IKEA has not launched e-commerce business in China, but it has become the key learning object of O2O. The annual report for the fiscal year 20 14 released by IKEA Group shows that the total sales reached 28.7 billion euros, an increase of 5.9% over the fiscal year 20 13. Among them, China market is one of the regions with the strongest growth of IKEA, with sales reaching 8.8 billion RMB, up 25% year-on-year. Unconsciously, under the high income of IKEA China, the price of single products has been lowered year by year. Take Clipa sofa in Klippan as an example. /kloc-the price before 0/0 was 2999 yuan, and now it is 999 yuan.
Low-cost and high-yield is an ideal model that almost all enterprises dream of. The key is how to control the supply chain and release the value of the whole business chain.
? A tie? Fixed supplier
How to control the upstream is the most important issue for IKEA to enter China. It can be said that the history of IKEA's entry into China is also a process of constantly searching for matching suppliers and constantly competing with them in order to reduce costs.
In this process, some suppliers parted ways with IKEA, and some were bound to IKEA. A home textile company in Jiangsu has cooperated with IKEA for 18 years. In the communication with reporters, general manager Chen Limin said that in the IKEA system, * * * is talented and * * * is glorious.
Chen Limin believes that IKEA has a unique business model, that is, IKEA's classic cycle (closed loop) obtains lower prices and wins more sales with larger purchases, and pushing back is to win more purchases. ? The larger the circulation, the higher the market share of IKEA, which means more orders for us. ?
Although Chen Limin knows that you can't put all your eggs in one basket, the reality is that at present, 65,438+000% of the products are directly or indirectly sold to IKEA, which is completely bound to IKEA.
What is IKEA's ecosystem like? Who is close to me? It divides suppliers into different grades. The higher the level, the stronger the viability, and the lower the level, which means that the elimination mechanism is more unstable in IKEA's ecosystem.
Chen Limin's philosophy of survival is to keep pace with IKEA as much as possible. Forced to grow up, it told reporters that IKEA has very strict KPI assessment indicators for suppliers, involving price, delivery, quality and social responsibility. ? We receive a KPI report every month, especially the price, and we have a price reduction index every year. ?
This has prompted suppliers to continuously introduce new products. Even so, we have to face the competition from similar suppliers. Chen Limin pointed out that there are two sofa cover companies in China, two in Turkey and two in India. Now IKEA is cultivating a supplier in Southeast Asia, and every few years IKEA will kill people all over the world.
At present, China suppliers have more advantages in overall quotation. However, under the IKEA system, this advantage is only phased, because IKEA will share the technological advantages of some suppliers with other suppliers, which also forces suppliers to innovate constantly.
Chen Limin also admitted that IKEA is extremely harsh on suppliers. He pointed out that, for example, if a small loophole is found in the sofa cover made by the factory, if it is caught three times, it will be terminated in theory.
However, compared with these disadvantages, the advantage of IKEA lies in timely payment. Compared with Chen Limin, IKEA pays 30 days after delivery, Wal-Mart pays 90 days after delivery, and a domestic clothing chain brand pays back the money after it is sold out. At the same time, it will give guidance from management, technology, environmental protection, supply chain and other systems. ? IKEA now feels that the capabilities of suppliers are limitless, and we now see ourselves. ? Chen Limin said.
Fully self-employed person
Starting from the supplier link, IKEA is increasingly integrating China into the global supply chain system.
IKEA is a global procurement model, and has established 16 procurement trade zones around the world, including three in China, namely South China, Central China and North China. IKEA is the global purchasing model of IKEA, and has set up 16 purchasing trade zones around the world, including three in China, namely South China, Central China and North China. The purchase volume of IKEA in China has accounted for 25% of the total, ranking first among IKEA purchasing countries.
On the other hand, IKEA has quietly laid out a complete supply chain system in China in recent years.
For example, the largest DC (distribution center) in the Asia-Pacific region was established in Fengxian, Shanghai. Zhang, manager of IKEA Fengxian Distribution Center, said that this DC has important strategic significance and can rely on the massive throughput of Yangshan Deepwater Port to ensure timely delivery and unloading. Especially as a regional DC, it can not only supply other shopping malls in Shanghai and China, but also radiate to 47 shopping malls in the Asia-Pacific region.
At the same time, the design center, which is considered as one of IKEA's core competitiveness, has also expanded in Shanghai. Shanghai has also established the only product testing training center (ITTC) outside Sweden.
This also ensures IKEA's unique business model. IKEA is completely self-employed, and its products are sold by itself, earning income by the price difference. However, some domestic home stores adopt the method of consignment+distribution, subletting the sales area to different home manufacturers, collecting rent from them, and extracting a certain proportion from the sales of the manufacturers to earn profits, and the manufacturers send promoters to sell in the stores. These are two fundamentally different business models.
The biggest drawback of this widely used investment model in domestic home stores is that it is difficult to do in-depth research on customer needs and provide comprehensive services. And IKEA, because the store is based on its own supply chain system, the whole store has formed an organic whole. The difficulty of this model lies in how to control the whole value chain.
3. Reasonably plan the logistics network to improve the distribution efficiency.
There are great regional differences in China's population distribution and product manufacturing level, and the logistics technology is relatively backward, resulting in higher logistics costs. The proportion of logistics cost in sales revenue is generally around 10%, which is far from Europe, America, Japan and other countries, so we must pay special attention to it.
(1) Reasonable planning of logistics network
China's manufacturing industry generally does not pay enough attention to the planning of logistics network, which leads to the low level of logistics resource integration and supply chain integration and high logistics cost. The manufacturing industry needs to analyze the regional population structure, economic level, consumption level, transportation and other factors, constantly optimize the logistics network and route, improve logistics efficiency and reduce logistics costs.
(2) Strengthen the management of logistics distribution center.
Logistics distribution center can realize the separation of commodity trading center and logistics center, and promote logistics rationalization and reduce costs through logistics technology such as logistics transportation standardization, intermodal transportation, secondary packaging and delayed manufacturing. The construction of logistics distribution center needs to analyze its functional objectives, do a good job in location planning, space planning, plane planning and logistics equipment planning of distribution center, continuously improve efficiency and reduce logistics costs.
(3) Logistics information and stowage management
At the level of logistics operation, we should make full use of logistics information technologies such as GPS, RFID and Internet of Things to realize lean logistics management. Product transportation and stowage should also make full use of the cost and efficiency differences between waterways, railways, highways and aviation, carry out refined management and reduce logistics costs.
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