A Study On The Integration Models Of The Internal Supply Chain

Along with the times developing, China's enterprises are facing competition and markets home and abroad. Searching for the proper management models which could help to enhance the competitiveness of enterprises is of strategy importance for the enterprises. Besides the two means of reducing the production cost and the expanding sells to seek for the profits, management educational world become more and more interested in the management pattern and methods which could be able to reduce the cost and enhance the customer satisfaction degree.Based on this, this article proposed the integration models of the enterprise internal supply chain, explained and analyzed the enterprise interior process with internal supply chain theory, tried to find the right integration model of the internal supply chain to make the enterprises develop well and promote competitive power.The first chapter elaborated the research background and the significance, analyzed and summarized reading related literature, proposed that the present academic circle also had some flaws. The flaws were: researches which unified information technology's integration function and models and the conformity plan of strategic plane are quite few; researches about enterprises internal supply chain integration are quite few; there wasn't explicit classification of the types of integration models; comparative analysis researches of the internal supply chain integration models from the from the cost expense angle and system angle are extremely few.Chapter 2 elaborated the theories foundation, explained the concepts of supply chain and supply chain management and established the supply chain structure model. In this chapter, there came out the concept of internal supply chain ---the supply and demand network composed of raw material suppliers, production manufacturers, Chu salt merchants, retail merchants and final consumers involved in the internal product manufacturing and circulating processes. The supply chain integration refers to the processes from raw material suppliers to the product final users, including outsourcing, manufacturing, retailing, stock management, transportation, warehousing, customer service and so on, coordinated and reformed all the processes to enable the enterprises in this supply chain achieve the most benefit. According to the above concepts, there came out the concept of internal supply chain integration---coordinating the supply chain is to optimize and regulate the supply and demand flow inside the enterprise to make the transfer of the goods or service in process more rapid, more nimble, more economical, and more effective and enhance the business efficiency and competitive power.The third chapter analyzed the typical integration models of the internal supply chain which were the model based on information technology and the model based on BPR. The integration model based on IT namely refers to raising the enterprise efficiency, strengthening departments' communication and coordinating flow operation through building IT platform and using IT to communicate within the enterprise. This model could solve the problem of the reduction of the information efficiency and information distortion which can not get along with the changes of the markets. These problems could be caused by the time lag between production planning and production in"push mode". This model can also provide an answer to the bullwhip effect aroused by the Information e-way transmission in"pull mode". The integration model of internal supply chain based on IT can increase the efficiency and the ability to react the markets. The Shanghai Jingyi Textile Product Processing Factory's case could give a good example. The other typical integration model based on BPR coordinates the internal supply chain by optimizing the business process of the enterprise. The case of a military industrial enterprise applying BPR to optimizing the process of material acquisition in supply chain and the case of Philip small household electrical appliances services department can explain the model clearly. At the end of this chapter, the paper pointed out the existing problems of the two typical models after comparative analysis.Chapter 4 composed a new integration model of internal supply chain---the model based on"market chain", and its concept and specific property and original background. The construction mainly has two steps: first, the integration of the internal organization and business processes. Second, the establishment of market chain of business processes. The integration of the internal organization and business processes are compose of regulation of internal organization, the foundation of the internal processes of the core processes, the foundation of the internal processes of the assistant processes. The establishment of market chain of business processes has the steps as followed: the integration of core processes, the integration of core processes and assistant processes, the integration of exterior market resource and internal processes, the establishment of"post in debt"manage system. This chapter also studied the theory basis of the"market chain"which could be regarded as a manage system. The integration model of internal supply chain based on"market chain" introduces market mechanism into enterprises; replace the huge management cost caused by the big size of the enterprise with interior treatment cost. This model can reduce the management cost sharply by using IT and BPR methods. The management cost turns into organization integration cost. At the same time keep the interior treatment cost at low level. The main part of the interior treatment cost is the product value inspection expense, which can be reduced by reasonable pricing strategy.The last chapter of this article summarized the questions easy to appear of when applying integration model of internal supply chain based on the market chain, gave the corresponding countermeasure, and proposed the research forecast of this study.