Li Jinbo'S Interpretation Of How To Use Low Cost Management Mode To Establish Clothing Supply Chain

From the perspective of supply chain management, starting from product R&D and design, how to reduce and prevent the complexity of the product itself and the management complexity of the organization and process. The purpose of "clutter prevention" is to reduce the cost, not only the product cost, but also the management cost. At present, a phenomenon of many local enterprises is that "there is design but no product management; there is sales but no customer management". This is the key reason why the enterprise's products are excessively complex, the organizational structure is disordered, and the process is unclear.

Many enterprises blindly pursue individualization and product diversification, which inevitably leads to excessive categories of raw materials, reduced purchase volume and naturally high unit price. At the same time, because of the diversity of products, it is difficult to standardize the complex process, and the cost of management and personnel skills is much higher. Let's take a look at the product differences between the two most familiar mobile phone brands: Apple's iPhone ranges from 1 to 6. Except for the difference in size and memory card, the other products are basically the same (difference in system upgrade). At the beginning, the color is white and black. Later, there are many colors to choose from, but the price is not the same.

Another brand we are familiar with, Samsung, has many styles. The cost price of the purchased materials is naturally different, and the resulting profits are obviously different (there are many categories, few quantities, high prices, few categories, large quantities, and the price is naturally advantageous). In the automotive industry, Japanese brands are also very representative. Especially for Toyota, many major raw materials have been purchased in large quantities, and the processes are similar, forming standardized operations.

Echoing the "front-end clutter prevention", in the "back-end weight reduction" part, there are two ways for enterprises to obtain resources: either through the market (by suppliers) or through vertical integration (by themselves). When there is no ability to select and manage suppliers, enterprises have to take the road of vertical integration, resulting in heavy asset operation and low return on investment. "Many enterprises have procurement but no supplier management", which is the key to why many enterprises have been operating with "heavy assets".

Pure purchase is just an interface between demand and supply, which is far from enough. The key problem is how to improve the core competitiveness of enterprises through effective supplier selection, classification, evaluation, performance appraisal, supplier integration and other process control capabilities, and through strategic cooperation with suppliers to support suppliers, which is the premise for enterprises to operate "asset light". How to make a gradual transition from simple procurement to Supplier management 。 This is also a huge challenge faced by many enterprises.

If we just "light selection, heavy elimination", simply rely on bidding, pursue the so-called minimum price, "limited to the small optimization of the item number and project level, and ignore the large optimization of the supplier level", we can not fundamentally solve the cost problem. This is also a manifestation of the lack of supplier management ability. In fact, it is also an extremely irresponsible approach to partners - because they do not understand supplier management, they can only rely on fines, coercion, and coercion.

Through effective supply chain management, the front-end controls complexity and reduces complexity driven costs; Backend drives supplier resources to reduce the cost of "heavy assets"; There must be control in the middle. The core of this control is "planning". As we all know, planning is the core of supply chain management. Many companies' shipping problems and inventory problems seem to be purchase In fact, most production problems are planning problems. "The mission of the plan is Management requirements Cannot degenerate into execution ".

What we often see is that "planners are chasing materials every day" and "managers are fighting for bayonets every day", which are all manifestations of lack of planning ability. Even many enterprises do not have a real plan, or do not attach importance to the plan, or frequently modify the plan. Complex enterprises with heavy implementation and weak plan are everywhere. If there is no plan, what is the direction and basis of implementation? If the plan is not well done, the supply chain (including suppliers, procurement, production, customers, sales, etc.) is exhausted. The ability of supply chain management cannot be improved, and the "triangle love" of enterprises cannot be achieved. Because "supply chain management is the center, and R&D and sales are the two basic points", we believe that the core competitiveness of the company not only includes R&D and market, It also includes the management and integration capabilities of the supply chain.

We have seen that many companies have good products, good markets, and no shortage of customers, but they are "just blossoming, not fruiting" - they have done a lot of business, but they don't make money; Or if you make money on the book, you will make money in inventory - the root cause is that the planning and execution capacity of the supply chain is insufficient, and you cannot effectively control the cost and inventory.

In terms of plan control, we especially remind everyone that "you can't rely on the accuracy of prediction", "The prediction is always wrong, but this does not exclude that you can make a relatively correct judgment". We should "start from the data and end from the judgment" to improve the accuracy of the forecast as much as possible, and the rest will make up for the deficiencies of the plan by improving the execution ability of the supply chain.

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