Changhong Device Company's Supply Chain Management Project Implementation Strategy

With economic globalization and the development of information technology which greatly raise customers'need and consiousness, a much more competitive market comes which can be seen in the competition between supply chains. With 20-years-development, a complicated supply chain network is formed globally in manufacturing industry and supply chain management model is unprecedentedly popularized in some big companies. it is imperative for Changchong, China's largest manufacture specialized in military products and household electrical appliances to introduce advanced supply chain management to win over its competitors. Changchong Component Technology Ltd, one of subsidiaries of Changchong has attempted to introduce supply chain management and then gradually make business process reengineering and company restructuring come trueBased on SCM project in Changchong implemented by RolandBerger Strategy Consultants company and related theories in supply chain management, combined with the author's practice in SCM project, a scientific analysis has been made about the present situation of Changhong and its subcompany. With analytic hierarchy process, influence and value are studied on the implementation of supply chain management in Changchong Component Technology Ltd ,when subprojects are rebuilt from supply chains and two subprojects, ERP project and purchasing optimization of enameled wire ,which will be carried out with priority are providedIn the first chapter the background of the project and basic information of the participants are introduced and literatures in supply chain management are reviewed. In the second chapter basic concepts principles and methods in SCM are analyzed. Furthermore, the charateristics and problems are analyzed to be expected to provide help for the project.In the third chapter, by introducing the theory of analytic hierarchy process(AHP). The paper sets the whole optimization of supply chain as the goal of SCM and the three indicators for this goal are customer value, supply chain value and supply chain'future value. Based on analyzing the second-level indexes of each index, a model is build by using AHP, and combined with suggestions from RolandBerger Strategy Consultants company a conclusion is made that ERP project and purchasing optimization of enameled wire project are the subprojects carried out with priority. The fourth chapter respectively expounds how to implement the ERP project and purchasing optimization of enameled wire project. On the base of comprehensive analysis of the current situation of Changchong Component Technology Ltd, the paper puts forward a right ERP system for the company and offers organizational structure and business process under optimizing ERP system. Furthermore, the paper discusses the present situation of enameled wire and analyzes how to implement purchasing optimization of enameled wire project and make standards for choosing strategic cooperative suppliers. Meanwhile, the company discusses the potential chances to control costs with its partner (Chengdu southwest electric Co. LTD) and compare practical benefits and expected ones and have a good optimizing results.This article is based on the implementation of a practical projects that shows the research is operatable. The results of the projects show s that SCM greatly cuts the cost for the company and have a satisfactory economic benefit.