New retail
New retail is based on traditional retail, using big data and artificial intelligence to accurately mine, locate, and guide the consumption needs of online and offline consumers, and through a flexible and efficient smart supply chain, it can rapidly enhance the shopping experience of consumers and meet their escalating consumption needs.
In the new retail era, the smart supply chain is end-to-end
2. In the new retail era, the smart supply chain is agile and humanized
The smart supply chain in the new retail era is no longer a simple internal support function, but an all-around service support function, which stands in the perspective of consumer demand, and pays more attention to the flexibility and precision of the supply chain while designing the smart supply chain. flexibility and precision of the supply chain rather than just pursuing economies of scale. The end-to-end data collection and end-to-end operation can quickly respond to the ever-changing and discerning needs of consumers.
The digital supply chain is a customer-centric, demand-driven, dynamic, collaborative, intelligent, visual, predictable, and sustainable mesh supply chain system based on key technologies such as the Internet of Things (IoT), big data and artificial intelligence.
The digital supply chain, a customer-centric platform model, can acquire and maximize the use of data through multiple channels in real time, agilely perceive and identify customer demand, and achieve rapid response through efficient collaboration with external partners to improve enterprise efficiency and performance and minimize business risks.
Digital transformation is the use of modern technology to get closer to customers, dynamically acquire all kinds of customer data in real time, deepen the understanding of customers, improve the accuracy of demand forecasting, and even guide or stimulate the emergence of customer demand.
Digital transformation is carried out at the level of planning, procurement, logistics and other supply chain execution. The digitalized enterprise planning cycle will be shortened, and relying on real-time data brought by upstream and downstream collaboration, the automatic prediction capability and speed of the supply chain will be improved through artificial intelligence and cognitive analysis.
In the digital supply chain, procurement will transform from a business supporter to a value creator, establishing a new connection between the internal and external parts of the enterprise, promoting supply chain collaboration, and creating value for the enterprise.
Logistics will rely on IoT technology and automation technology to improve the efficiency of information interaction and automated operations, and it is expected that in the next 5-10 years, digitization will bring great changes to logistics and continue to generate new business models.
"Through the "digital supply chain" strategy, companies can reduce costs, expand market share, and change the competitive landscape. "The 20 to 10 rule will apply to the digital supply chain. In other words, the digital supply chain will reduce costs by 20% and increase revenues by 10%.
Cisco is an example of a virtual supply chain using the Internet. More than 90% of the company's orders are from the Internet, while Cisco's staff directly overhand orders no more than 50%, Cisco through the company's extranet to connect parts suppliers distributors and contract manufacturers in order to form a virtual just-in-time supply chain. When a customer orders a typical Cisco product, such as a router, through Cisco's Web site, the order triggers a series of messages to the contract manufacturer that produces the printed circuit boards, and the distributor is notified of the availability of common parts for the router, such as power supplies. Cisco contract manufacturers that produce finished products such as router rack assemblies can know in advance the types and quantities of orders that are likely to occur by logging on to the Cisco extranet and connecting to their production fulfillment systems.
Process Integration
Process reengineering means collaborative operations among partners, collaborative work among buyers and suppliers, product **** development, common systems, and information **** sharing. Through this process integration approach companies can focus more on their core competency development and outsource other activities. Agile supply chain from the concept of expanding the production, the enterprise's production activities for the forward and backward, the upstream suppliers and downstream customers into the enterprise's strategic planning, to achieve the best allocation of internal and external resources.
Case Study
Nowadays, there are many retailers such as Walmart that implement Vendor Managed Inventory (VMI). Vendors monitor their customers' (in this case, the retailer's) inventory at all times and automatically replenish it when it drops to a certain level. The retailer also provides sales data to the supplier in a timely manner, providing a basis for the supplier to decide on the amount of replenishment. The retailer itself is freed from the inventory management business, and can use more energy to study customer demand to develop more marketable products and provide better service to customers.
An agile supply chain increases the sensitivity to market reaction, and through the information ****sharing of multiple cooperating enterprises in the supply chain, it can respond to the market situation in an all-rounded way, thus improving the reaction speed of the enterprise. At the same time, as each enterprise concentrates on its own core strengths, it can reduce the production and logistics time of the product, and can realize immediate sales, immediate production and immediate supply of the supply chain, and minimize the lead time of the consumer's ordering.
The second is the dynamic change of the organizational structure to form a virtual organization, the dynamic alliance requires that each enterprise can use a more proactive, more tacit way of cooperation, make full use of the resources of each enterprise in the supply chain, so that the whole supply chain to maintain a good organizational elasticity and rapid response speed to market demand. Agile supply chain breaks through the traditional organization of entity boundedness, in the information technology support, by the core enterprise according to each order will be a number of interrelated manufacturers into a virtual organization, and according to the enterprise strategy adjustment and product direction transfer recombination, dynamic evolution, in order to adapt to changes in the market environment at any time.
Third, flexible management techniques, agile supply chain concepts to abandon the simple "carrot and stick" type of rigid management, emphasizing the breakthrough of the traditional strict departmental division of labor boundaries, the implementation of the functions of the re-combination of each employee or each team to obtain the ability to independently deal with the problem, through the integration of various types of professional wisdom, to obtain the optimal decision-making team. The team's optimal decision-making is obtained by integrating the wisdom of all kinds of professionals.
Basic principles
Systematic principle
Agile supply chain is to plan, coordinate and control the logistics, information flow and capital flow among the relevant entities involved in the supply chain, to improve the operational efficiency of all relevant processes in the supply chain and the certainty of all the links, and to achieve the maximization or satisfaction of the benefits of each entity or part of the benefits under the premise of maximizing the overall benefits. Therefore, it is necessary to adhere to the principle of systemic, the supply chain as an organically linked whole, the use of systems engineering theory and methodology, management and optimization of the supply chain in the logistics, information flow, capital flow, to achieve the overall efficiency and effectiveness of the improvement, cost reduction, the goal of rational allocation of resources.
Principle of information **** enjoyment
In the agile supply chain, effective control of logistics and capital flow depends on correct and timely information to foresee and reduce uncertainty in each link of the supply chain. The formation of a supply chain information integration platform for the exchange of information between the supply chain enterprises to provide *** enjoy the window and communication channels, while ensuring that the supply chain synchronization plan to achieve the realization of customer needs in accordance with the order-driven production organization, reduce the entire supply chain inventory.
The principle of agility
Agile supply chain is in a competitive, cooperative, dynamic market environment, the market is unpredictable, rapid response to market changes is the requirement of agile supply chain. Therefore, it is necessary to adhere to the principle of agility, and improve the agility of the supply chain from the structure of the supply chain, management and operation mode, and organizational mechanism.
Agile Supply Chain
Principle of Organizational Virtuality
Due to the changes and unpredictability of the market, it is required that the effective operation of the enterprise organization knot has a flexible and dynamic, according to the needs of the market in a timely manner to the enterprise organizational structure adjustment or restructuring.
The principle of coordination of interests
The various behaviors of enterprises or business alliances are centered around the ultimate goal of value maximization, the intrinsic mechanism of agile supply chain management lies in the synergistic consistency of the interests of members, and the absence of ****-winning synergistic mechanism of interests will make the participating entities deviate from the goals of the entire supply chain. Therefore, it is necessary to adhere to the principle of synergy of interests, according to the characteristics of the relevant entities, credit rating, core competitiveness and other factors, the establishment of appropriate collaborative relationships between the entities, to clarify their respective responsibilities and obligations and interests, so that the relevant entities in the supply chain on the basis of *** win interests, equal cooperation, complementary to the strengths of the mutual benefit.
To build a virtual team, there are three key elements that must be in place: process, technology, and people. Processes include creating clear goals, establishing *** the same vision and blueprint; establishing *** the assumptions of the premise of enjoyment; designing processes based on the virtual digital environment; defining and communicating process methodologies; and designing collaborative processes that work in parallel. Technology includes expanding knowledge of the digital workspace; designing forms and elaborating scenarios for communication exchanges; communicating with effective and feasible tools; and creating an environment that supports virtual teams. People include managing virtual teams without stress; overcoming interpersonal, cultural, and authority barriers; maintaining team life cycles; building mutual trust and respect; and elevating teams to the level of business managers.
People will not lose their jobs as a result of AI adoption, but people will need to be educated and trained in the new technologies to accomplish tasks in concert with machines.?
The digital supply chain is expected to turn around and become a profit center for the enterprise. Relative to other sectors of the enterprise, in the digital technology all-round help, the supply chain will have both cost reduction and profit enhancement of the dual identity, digital supply chain makes the enterprise can more accurately grasp the customer demand, improve the customer experience and service level, so that the enterprise and the customer, the enterprise and the supplier to form a value network, to build interconnected ecosystems, *** with the design, *** with the creation, *** with the design, *** with the production, *** with the creation of greater market value.