Proactive, is a win-win strategy

Global SourcesUpdated on 2023/12/01

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SMEs usually do not occupy the position of chain owner in the supply chain. According to the "CEConline" survey, only 30% of enterprises said that they occupy a dominant position in the supply chain, while 63.1% of enterprises are in a weak position in the supply chain.

Actually, not being in the center of the stage does not mean that you will be controlled by others. Looking for the initiative in the passive, in the fierce market competition, creating unique irreplaceability, small and medium-sized enterprises can also take the initiative in the supply chain. According to Zheng Hong, a partner of Zhengluejun Strategy Management Consulting, there are many companies conducting supply chain consulting, and many companies still conduct consultations from the operational level. In fact, the supply chain is not only a problem at the specific operational level, but inseparable from the industrial chain and value chain. Taking the initiative is actually a win-win strategy. (Please refer to P20 of this issue for the connection and difference of industrial chain, value chain and supply chain)

The ins and outs of supply chain

The famous management master Drucker once said: The 21st century is no longer a competition between enterprises and enterprises , but the competition between supply chains and supply chains. This means that when companies compete, the key is whose strategic alliance is highly synergistic, not just the competition between individual companies. As Zheng Hong, a partner of Zhenglue Junce, said: "Whether you can be stronger than others depends on whether you have the ability to form a collaborative enterprise with other partners. Only in this way can you perform in the current market."

The concept of supply chain management began with the popularization of informatization. That is, the entire procurement, sales, after-sales and other links of the enterprise are integrated through information technology. With the increasingly diversified and rapid market demand, the requirements for the degree of informatization are also getting higher and higher, and the realization of supply chain management has not only become a possibility, but also a necessity.

Zheng Hong introduced that the industrial chain is used to analyze the macroscopic pattern and trend of an industry; the value chain is one of the methods and tools for industrial chain analysis; the supply chain is to connect the input of specific products and services in the industrial chain and a series of chains of outputs. For a specific enterprise, all strategies and concepts must ultimately be implemented at the management level. From the point of view of the specific operation of the enterprise, the purpose and result of the three concepts are the same.

“As an enterprise, after researching for a long time, it is finally implemented on supply chain management. But if you only focus on supply chain and supply chain without industrial chain and value chain as the basis, then you will be very difficult Management of the supply chain."

"Then, does an enterprise have the ability to integrate all aspects of its industrial chain, and its active ability in its position in the supply chain, does it reflect the competition of an enterprise? What about important signs?" In Zheng Hong's view, this point is beyond doubt: "The core competitiveness of an enterprise is reflected in the industrial chain."

Enterprises must find their own role in the industrial chain. "To find this role, you must create your own value. Any role must have value, so that you have the opportunity to be integrated into the middle of the industry chain, otherwise you will be out of the game. Under this kind of thinking, how do you go about Managing your upstream and downstream is not just a method of management. It must be managed from the basis of business strategy and the value of the enterprise itself. If you manage the supply chain in terms of supply chain, it will be superficial.”

An active enterprise is a distinctive enterprise

Obviously, an enterprise that can take the initiative in the supply chain can be a small enterprise, but it must have the ability and capital to have an equal dialogue with large enterprises. You may not be the protagonist, but you should Is an indispensable role on the stage. In Zheng Hong's words, it is to have its own characteristics.

“Characteristics can be reflected in many aspects. For example, some companies have advantages in service, some may have advantages in technology, and some may have advantages in talents. Take small and medium-sized enterprises in the manufacturing sector as an example. , the entire manufacturing industry can be divided into raw materials, components, finished products, distribution, logistics, design, brand marketing and other links. If you want to be a 'sugar daddy' and become a partner with a big company, why would anyone want you? Of course, you have your specialties, which are beyond the reach of others. If you can do this, then small businesses can also survive It's very comfortable."

Shanghai Baolong Automobile, one of the cases in this issue, is a supplier of first-class automobile companies such as Ford and GM. GM has designed a huge supply chain management organization and sent senior engineers to Shanghai Baolong to help Shanghai Baolong improve and improve, thereby saving costs and providing room for price reduction. GM also instilled in them the concept that they and customers, no matter how big or small, are partnerships: "We are a link in the value chain, and only when we are connected can we have value as a chain, and we are nothing if we leave it. "

The survey of "CEConline" shows that 88.3% of enterprises consider improving their position in the supply chain through technological upgrading. 93.3% of enterprises said that they are trying to establish strategic alliances with other links in the supply chain to achieve the purpose of improving their position in the supply chain.

Shenzhen Aoterui Industrial Co., Ltd. and Shenzhen Dayang Industrial Co., Ltd. in this case are both trading companies, controlling the channel from the factory to the customer. In the era of flattening channels, they gave a common answer to the question of how enterprises that master channels can survive better: to break through the manufacturing link of the industrial chain, from the comparative advantage brought by price to the high value-added Comprehensive competitive advantage change.

Supply chain management is more than just "supply chain"

The survey shows that nearly half (46.21%) of entrepreneurs and managers believe that the link with the most business opportunities in the supply chain is the sales terminal, that is, the final delivery of products downstream link in the hands of consumers. But in fact, in the supply chain, from raw materials, components, to downstream links, distributors, can reflect its unique value in the supply chain.

The semiconductor industry distributor Future Electronics in this issue's sub-article has assumed its role in the industry and has done a good job of being a distributor, so that the development of its own enterprise can compete with the industry in a healthy balance. achieve a win-win situation.

As one of the roles in the supply chain, a small enterprise can not only have an equal dialogue with the large enterprises that are the protagonists in the spotlight, but also need to form a bundle of interests with other partners. Zheng Hong introduced that when the supply chain first came to China, at the operational level, it first involved logistics, followed by procurement, and then at the distribution level, and then the links of procurement and manufacturing were opened up. Now many companies have realized that supply chain management is actually integrated. During operation, procurement, manufacturing, distribution, and logistics must be connected one by one.

In this overall operation, there are few companies that solve all the problems completely. Just like Baolong Automobile, 85% of its products are sold overseas, and all their logistics are from third parties, mainly because the services in this area are relatively standardized, and because of the informatization, they can see their own goods in real time. state. "This kind of cooperation is more effective, so I haven't considered doing logistics myself." Zhang Zuqiu, general manager of Baolong Automobile, introduced.

“In fact, supply chain management is how to get your suitable products and services to customers more quickly, and the transportation process must be cost-optimized. If you want to do this, you need to It cannot be solved by pure supply chain management." Therefore, Zheng Hong believes that supply chain management is not only "supply chain", but must be planned and operated as a whole. It is necessary to consider the correctness of the business strategy, the customer positioning of the marketing link, and the fit between the product development and the market demand from the aspects of business strategy, research and development, and marketing.

Beijing Xia Jinyu Mould Technology Co., Ltd. does just this. The mould industry it is in is called the mother of the industry, but the enterprises that make moulds in the entire supply chain cannot pursue economies of scale like downstream manufacturing enterprises. Because the better the quality of the mold, the fewer orders; at the same time, we cannot only pursue low cost like the upstream suppliers. In order to take the initiative in the supply chain, the mold manufacturing enterprises in the middle link must not only increase their technological content to occupy the market share, but also do a good job in customer relationship management and build a good supplier relationship.

Although more and more companies are seeking supply chain-related services from consulting agencies, most of the client companies still regard the improvement of the supply chain as an operational link for management. According to Zheng Hong's words, it is a headache that treats the head, and a foot pain that treats the feet. "If they want to solve it step by step, we will also implement it for customers one by one. But the overall concept of the final supply chain requires all links to reach a high level and then integrate. If you have a bad link , then you start from this link, and then straighten out these links to open up the entire supply chain. Another way is to design the entire supply chain, first design the management method of the entire supply chain, and then go step by step. Advance."

The connection and difference between supply chain, industrial chain and value chain

The concept of industrial chain belongs to the category of industrial economics. The research object is an industry, the organization of the industry, the development of the industry, and the layout of the industry , industrial policy, etc. Enterprises study the industry chain in order to better position and business layout in this industry. For enterprises, this is a strategic matter, and it is also a prerequisite for building a supply chain. Enterprises need to be positioned before they can have a relationship in the entire upstream and downstream, and figuring out the industrial chain is a prerequisite for the supply chain.

The value chain originally proposed is used within the enterprise. A series of activities during the operation of the enterprise, such as design, production, sales, delivery, and some auxiliary work, are done according to the value chain. Later, the value chain was also applied to the outside of the enterprise as a method for analyzing the business chain and operating activities. It is a description of the structure of the industrial chain (organized according to the interview with Zheng Hong). The value chain is what each link looks like from the perspective of value. In fact, the value chain can be used as a method for analyzing the industrial chain. And tools, when using the value chain to analyze the industrial chain, the value chain and the industrial chain are consistent.

Supply chain is the concept of operation level, the object is service and product, it is the research of value chain and industry chain carried out by enterprises on the basis of established value chain and industry chain. I have chosen my business portfolio, what is my relationship with my upstream and downstream? If you understand these, the supply chain will be very clear. The industrial chain and value chain will eventually be implemented into the output and input of products. Consistent again at the operational level. Therefore, the industrial chain, value chain and supply chain are similar at the final operational level, but are completely different at their respective conceptual levels and at their respective heights.

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