What is supply chain? What is the relationship among supply chain, logistics and purchasing?
From the perspective of production:
Take Dell computers. In terms of production, Foxconn, Flextronics and some Taiwanese companies are direct suppliers of Dell (also called first tier suppliers). LaFrance supplies famous brands to Foxconn Flextronics. TSMC and Samsung supply semiconductors and chips to Foxconn. It is a direct supplier of Foxconn and a sub supplier of Dell.
The core of the supply chain is to integrate resources, integration, TCO, end to end, and process management. Whether it is Six Sigma, lean or TOC, it focuses on process management.
In terms of sales:
Dell is a supplier, supplying to many enterprises and sales stores. Finally, the product reaches consumers. Products flow from suppliers to customers. Capital flows in reverse, while information flows in two directions.
- Product flow is the foundation of supply chain. Supply chain only exists because there are products flowing.
- Information is the nerve of supply chain.
- Money is the blood of the supply chain.
Supply chain management is the integrated management of product flow, information flow and capital flow.
Logistics is an important part of supply chain:
Logistics and supply chain are two different concepts. There are great differences in the definition and operation of logistics. Logistics is an integral part of the supply chain. The supply chain pays more attention to the laws of property rights, value flow, capital flow and information flow. Logistics pays more attention to the spatial movement of objects. The purchase process needs the deep involvement of supply chain management to ensure the safety, quality and price competitive advantage.
Procurement mainly includes three aspects:
- Certification and selection of suppliers
- Certified source
- Execute purchase