The hottest weapon of JIT supply chain management

JIT: the magic weapon of supply chain management

just in time (hereinafter referred to as JIT), is a production method implemented by Toyota Motor Company in the 1960s. After 1973, this method played a prominent role in Toyota company's ability to survive the first energy crisis. Since then, it has become a powerful force in the enterprise management industry and attracted countless followers. Supply chain management (SCM) is a new business and operation mode first put forward by some American enterprises in view of the disadvantages of the "vertical integration" management mode since the late 1980s. On the surface, it seems that there is no connection between them, but if you probe into the ideas contained in them, you will find that timeliness and supply chain management are a perfect pair. If used properly, timeliness will become a heaven reliant sword in supply chain management, which will bring your supply chain management into the realm of "Heaven reliant, who will compete". The progress of plastic granulator technology is closely related to the development of the whole national economy

it is the stone of the mountain, which can be used to attack jade.

there are many similarities between timeliness and supply chain management at the philosophical level. So many parts of it can be used for reference by supply chain management. Because of this, just in time management, a management method that has long been produced, will play a big role in supply chain management and contribute to the construction of the top supply chain. OK, let's let them have a big competition, and everyone will see it at a glance

comparison 1: the basic idea of just in time system is to produce products strictly according to user needs, shorten production cycle, compress the proportion of WIP, improve efficiency and reduce costs. In other words, enterprises only when necessary. Produce necessary products in necessary quantities, but produce unnecessary products too much and too early. The ultimate goal of supply chain management is to shorten the time from conceptual conception to users' hands, reduce logistics costs, and meet the diversification of users' needs. Therefore, although the just in time system is a management mode for enterprises, as a management idea, it is still valuable in improving the response time of the whole supply chain to users, reducing the logistics cost of the supply chain, and implementing on-time production on demand. Now let's talk about how the philosophy of just in time can help supply chain management

control 2: Philosophy of production on demand. The goal of just in time system is to enable enterprises to "produce qualified products that are really needed only at the moment of need and in accordance with the required quantity." To achieve this management goal, enterprises must comprehensively develop, manage and utilize their manpower, materials, equipment, resources, energy, space and time in the broad concept of resources, so that these new generation (3D printing) materials can not only make the aircraft more economical, but also establish a unified and coordinated target management system in all departments and links of the aircraft industry, In order to improve the labor productivity of enterprises and the adaptability to the changing market demand. This comprehensive utilization of resources is conducive to reducing the cost of the supply chain, and the methods used are worthy of reference for supply chain managers. In addition, in order to ensure the product quality of the enterprise and reduce the product cost of the enterprise, when selecting the supplier that cooperates with itself, the enterprise not only needs to review the supplier's product quality, price, etc., but also needs to understand the supplier's technical level, plan management, etc., which are also very useful in the field of supplier management in supply chain management

comparison 3: "zero inventory" philosophy. Just in time system believes that the traditional inventory management methods of enterprises cover up many problems existing in enterprise management. The just in time system compares excessive inventory to the "source of disadvantages" in management. Timely control compares the inventory to the water volume in the Jianghu, and compares the underwater reefs to various problems caused by poor management, such as poor planning, insufficient capacity, low quality, etc. Timely management advocates that we should continuously reduce the inventory of raw materials, semi-finished products and finished products within the enterprise, so that the existing chronic diseases can break out, and encourage the enterprise to constantly find problems in management, so as to improve the work of the enterprise. This idea of zero inventory is very enlightening for the reduction of logistics cost and the improvement of operation efficiency in the supply chain. Companies like Dell have used the idea of just in time in supply chain management to build a world-class logistics network, and Haier has achieved its unique logistics advantages based on the idea of just in time, which we will introduce later

control 4: the philosophy of full participation and continuous pursuit of perfect quality. The effectiveness of the practice of any advanced management method depends on the unremitting role of people in the enterprise to achieve continuous improvement. The timely system advocates that the enterprise should rationalize and improve the work, that the front-line employees of the enterprise should put forward the solutions to the problems, that the superior leaders should put forward the objectives and the principles of dealing with the problems, and provide information and training, and that the necessary authority should be granted to the employees, so that the employees at all levels can deal with the problems existing in the work within their respective limits of authority, constantly improve their working methods, and constantly pursue better quality work goals, Treat the quality of products with the spirit of never complacency, and maintain an advantage in the competition. This is undoubtedly very important in the practice of supply chain management

dell -- the leader in the application of just in time in supply chain management

dell's rapid development is a miracle in the operation and management of American high-tech enterprises. It is regarded by experts as a driving force to promote the development of American personal computing industry by keeping the studio dry and then putting the experimental samples into the studio for experiments. So how does it make today's glory? It is largely due to its speed. The characteristic of Dell's operation is to emphasize speed: fast manufacturing, fast sales and fast profits, that is, "speed determines everything". Such excellent speed is based on its excellent inventory management. The following is an analysis of how the company achieved its agile goals in inventory management

the so-called inventory management refers to a complete set of systems and control means used to control inventory level, determine replenishment time and order quantity. Through inventory management, enterprises decide the time and quantity of orders. To win in the international competition, we must establish an efficient supply key management system, so as to have the best performance in "tqcsf" (t refers to time; Q refers to quality; C refers to cost; s refers to service; F refers to flexibility)

dell's competitive advantage mainly comes from its unique business mode: direct selling computers, that is, customers directly order computers from the company through, mail and Internet, without going through the intermediary channels of distributors or agents. This helps the company minimize the inventory of finished products

direct selling is to assemble computer components into a complete machine after the company receives orders from customers, rather than making production plans according to market forecasts. First, the finished products are made in batches, and then the products are stored in the warehouse for orders from distributors and customers. If the annual inventory maintenance cost is 30% of the product value, the annual inventory maintenance cost of products worth 10million yuan will be 3million yuan. Moreover, the products produced on orders do not need to be stored in the warehouses of the supply chain, so as to minimize the inventory of the supply chain. Similarly, according to the order, the system obtains parts from the supplier in time, thereby eliminating the inventory of parts in the supply chain. No matter who "pays" the cost of inventory, customers will eventually bear higher prices. Eliminating excess inventory costs in the supply chain also brings benefits to customers. Moreover, due to the continuous upgrading of the performance of important components such as microprocessors, the continuous decline in prices, the continuous shortening of the development cycle of new computers, the rapid technological updates, and the decline in the price, the product inventory is more likely to cause losses. For the computer industry, time is money. As a rule, after the price reduction of the computer, the company has to compensate for the price difference of the inventory products of the agent. When the agent returns the goods, the company will pay the original price. For the inventory products that the company has not sold, of course, we should carry our own baggage. The above characteristics make the pressure of inventory on computer manufacturers particularly great, but for direct selling companies that do it now, they should avoid it. When Dell summed up the benefits of manufacturing by order, it said that "just because we don't have inventory that takes more than 100 days to process, we may be the first manufacturer to switch to the new Pentium processor"

from the case of Dell, we can find that in the supply chain of Dell computer production, the length of the chain is reduced, and the node enterprises are only suppliers, manufacturers (core enterprises) and customers. This model can overcome the inventory problem in the supply chain management environment. Traditionally, the upstream enterprises of the supply key always take the demand information of the downstream enterprises as the basis for their demand prediction, and arrange production plans or supply plans accordingly. The generation process of this demand information is the main reason for the occurrence of the "bullwhip effect". Finally, the demand information obtained by the most original supplier deviates greatly from the customer demand information in the actual consumer market, and its demand variation coefficient is much larger than that of distributors and retailers. The direct selling mode of Dell avoids the risk of distributors and retailers amplifying demand information. It only needs to establish an efficient information transfer system between suppliers and manufacturers, form a good partnership and coordination relationship, achieve mutual information transparency, and realize timely and agile manufacturing

in the case, Dell's practice is worth recommending: first, it produces directly according to the order and sends the products to the customers quickly to avoid stacking parts and finished products in the warehouse; second, the component suppliers store most of the components in the warehouse closer to their factory, and try to reduce the number of suppliers to improve efficiency. Therefore, in case of shortage, they can quickly replenish the inventory, Reduce out of stock costs. Through these ways, the inventory management of Dell computer supply key has basically achieved the goal of zero inventory

the reason why Dell can realize the timely system is that it has a well-organized supplier network. 95% of Dell's materials come from this supply network, of which 75% come from 30 largest suppliers, and the other 20% come from 20 smaller suppliers. Dell communicates with these 50 major suppliers once or more every day. During production and operation, if a part on the production line is short of raw materials due to a sudden increase in demand, the supervisor will immediately contact the supplier to confirm whether the other party may increase the quantity of the next shipment. If the problem involves general components such as hard disks, the supervisor will immediately consult with the backup supplier. If there is still no harvest after exhausting all available supply channels, the executives will negotiate with the sales and marketing personnel within the company and contact the customers through their "straight-line ordering channels" to try to shift the customers' demand for some short parts to those parts with sufficient stock. All these operations can be completed in a few hours

Haier, you have lit a light for domestic enterprises, but when the ultraviolet wavelength reaches more than 380 nm

if you say that Dell is a foreign enterprise, it will be acclimatized if you use the doctrine of taking, let's see how Haier does it. Haier Group has maintained an annual growth rate of 80% since its establishment 16 years ago