7 ways of successful supply chain in Asia
Asia is one of the most dynamic and most diverse markets in the world. This situation will definitely maintain a considerable period of time. From the point of view of the supply chain, it is also one of the most challenging markets. Asia's supply chain challenge clearly shows that it is not easy to improve the supply chain in Asia. However, it can still be done. This research report lists 7 opportunities. Enterprises operating in Asia can greatly improve their supply chain efficiency and competitiveness by seizing these opportunities. These seven opportunities are: strategic and optimization, achieving optim, integrated demand and supply, integrated technology and system architecture, organizational and assessment of the efficiency of supply chains, flexible access to various capabilities, extending supply chains. Asia's various differences make this task complicated for a solution for more than one group or business environment. Due to this reason, many of the opportunities mentioned above must be utilized in accordance with the specific conditions of each country, various enterprises and various supply chains. It should also be noted that the number of the seven opportunities is consciously made, which is to provide a logical order to handle the task of the supply chain, and determine which method is feasible. For companies that are subject to undeveloped infrastructure and strict policy restrictions, just make basic work is a huge maturity. For companies that operate in a relatively advanced environment, the more appropriate goals may be to make the supply chain coordination work and link the network of the electronic market. However, the biggest possibility is that multinational companies operating all over Asia must handle these two situations. When enterprises pursue supply chain efficiency, companies must follow a clear way, in Asia, especially. Because there is different working environment there, it is extremely important for basic basic systems and capabilities. Thus, developing and mastering core compensation is especially important for companies operating in Asia. These core capabilities include: conforming process and procedures, integrated information technology, accurate and reliable data, clear measurement, and careful management of people. Therefore, true leaders and innovators have no doubt that they must take a logic, progressive way to improve the supply chain, they will look for faster, better ways. Opportunities 1: Strategy and Optimization Asia companies are often lacking a plurality of supply chain projects in the absence of coordinated, guided supply chain strategies. In fact, in this area, there are very few people with such a regional strategy. The problem with this approach is that the improvement effect it produces is very limited. If it is not in a relatively wide, clear defined strategic guidance, the supply chain is implemented, then their impact will be diluted, locallyified, and it is easy to disappear. However, when there is a relatively wide strategic guidance, the project will be fruitful, for example, from the reduction in inventory cost, improved visibility and control of inventory, and greatly optimize the transport structure. Furthermore, a comparative strategic supply chain treatment can lead to the optimization of taxation and tariffs, and improve the management of the periodic product, thereby reducing the outdation of stocks. This may be significant in Asia. However, so far, people have rarely make a large-scale effort. In Asia, some companies pay attention to develop strategies and optimize their own networks, and they achieve 10% -40% of the savings in terms of network and inventory. More importantly, these companies have increased the benefits and market share by adjusting and optimizing their supply chain, increased by 2% to 5%. In order to achieve these benefits, Asian companies must determine what is able to truly make the supply chain advantage, what makes their customers get true interests and arrange their supply chain according to this idea. As part of this effort, they must adjust all the capabilities, processes, and structures based on the total strategy. Programs of procurement, production, distribution and replenishment, etc. should be coordinated within the scope of the total network design to ensure the optimal configuration of resources and assets and reduce service costs.
The difficulty of calculation is caused by the difference in the difference between the tax system, and the decision to make the self-made and outsourcing has been influenced by different institutional decisions, thereby proves that it is necessary to utilize effective optimization tools. However, so far, network optimization tools are very limited in Asia. In view of the differences in geography, language, culture, customs, rules and tax tariff systems, a key component of most pan-Asian supply chain strategies is "delay". In fact, due to the lack of packaging in various local markets, the capacity, multi-regional components and multilingual documents have increased cost and complexity to the production of these configurations in the production ground, and expand inventory. Asian companies in the implementation of latency strategies are 10% -30% in stock. More savings from the increase in spare rate and the decrease in the scrap rate. Opportunities 2: Implementing the best functions in Asia have many opportunities to increase the efficiency of the core processes of the supply chain. Implementing the best in these aspects, or laying the foundation for improving other aspects. The following examples illustrate opportunities in these supply chain core processes. Procurement from the financial perspective (shareholder return rate, equity return rate, asset return rate, cash flow and return on investment) and productivity (employee's per capita sales, employee earnings, actual growth rate of employee), those in procurement Enterprises that have been well managed, and a smooth relationship will win other companies. Manufacturing in Asia, cheap labor is very rich, manufacturing is dominant. Therefore, there are many companies with excellent manufacturing capabilities, especially multinational companies. Transnational Enterprises have implemented advanced principles, such as "Lean Manufacturing" and "Six Sigma Fa". However, there are many local large-scale enterprises and state-owned enterprises, and their manufacturing process is low, there is a lot of improvements. Transportation Many Asian companies have to reduce costs is to link with logistics and distribution systems. For South Korea, the cost of transportation, storage, loading and unloading and packaging accounts for 16.3% of China's gross domestic product. And the United States is 9.9%, Japan is 9.6%. In fact, in most parts of Asia, the productivity, layout and operation of the distribution center are low level. Sales in the United States and Europe, by customer needs Develop a supply chain countermeasure, some companies' income increased by 3% -5%. However, in Asia, the practice is a knife. Therefore, if the company can understand: A is the cost of providing services for each customer; Specific services; C) Customers prepare why the samples have saved money, they have a lot of opportunities to increase income and market share. The leadership of the market then allows their supply chain culture, capabilities, infrastructure and personnel to meet the special needs of their best customers according to their understanding. Some of Asia have taken measures, from a comparison, the service costs of the sales and supply chain, refine the reaction of the supply chain, so that it adapts to the customer's special needs, and thus has achieved remarkableness in cost and revenue. Opportunities 3: Integration requirements and supplies like Wal-Mart and Dell companies have shown that success management needs and supply requirements are thoroughly integrated. Regrettably, many of the companies in Asia are each polite, and there is no special person responsible for coordinating demand / supply integrated planning processes.
Furthermore, even if a few companies have implemented some overall planning, the structural reform group is made due to the lack of comprehensive integrated performance standards or unable to surround the integration process, and the results are often returned to the starting point. Finally, in Asia, predicted accuracy and inventory management is generally poor, thus makes things complicate. Opportunity 4: Integration Technology and System Architecture Agiles recognizes that planning / scheduling techniques are linked to their ERP systems and customers and suppliers to establish an end-to-end supply chain window is important. However, in Asia, especially in developing countries, many companies have not implemented an ERP system. Its shortcomings are not only different, but it is often an old system, which is there in technology that has no ability to integrate and optimize updates, including those in management and marketing departments (such as the management of suppliers' management and customer relationships). technology. If there is no integrated system, these companies cannot make better decisions, reduce the entire operating fees, and they cannot use resources and information. Enterprise application integration technology, or "middleware" is another effective way to link applications and capabilities to improve the transparency of data between enterprises. However, before ERP or enterprise applications integrate actual investment, companies must separate their operational issues and technical issues. If the basic operational assessment standard (the accuracy, production plan execution rate, intersection rate, inventory accuracy, inventory turnover, operating costs, and sending accuracy), no software package is not possible. Great role. Businesses must be recognized that, in general, the benefits of software solutions 30% come from software and technology itself, and the remaining 70% come from the process of transformation. If there is no suitable process transformation, companies may only make it currently excessive process increases a little speed or automation. Opportunities 5: Enterprises for the Efficiency of Supply Chains to improve supply chain competitiveness must first increase efficiency from organizational. This means that the entire supply chain must be optimized, not just some components. However, Asia's corporate organizations have always been the opposite: they organize their supply chains around the local market functions and business units, and the results have left a deep-rooted legacy: repeated, inefficient supply chain infrastructure, technology, Action, processes, and personnel. Asian industry leaders can use the following four ways to rationalize their supply chains, thereby increasing efficiency: --- rationalize the function and process of the supply chain - so that the cross-business unit is more rational-increasing personnel and structure Horizontal --- Focus on performance assessment and benchmarks 6: Flexible access to many opportunities for many opportunities for those who know how to get critical supply chain capabilities. There are 4 different ways to get these capabilities, each of which has its own advantages and disadvantages. Dell Computer Company is a very good example to show how a company successfully turns a process of obtaining supply chain capabilities into an artistic form. When Dell wants to build two assembly plants in Malaysia and China, they have obtained many supply chain capabilities in several different ways. First, Dell purchased the ready-made software application system. In order to overcome its employee's gap in the capacity of the company, a major supply chain manager is hired and uses some consultants to help affect huge projects (borrow), thus accelerating the implementation of short-term projects. At the same time, the company puts huge money, training the supply chain manpower to ensure powerful management capabilities. In order to narrow the gap between local suppliers in technical capabilities, Dell allows them to obtain demand information through the network.
