From Scm To The Dcm: China's Retail Business Supply Chain Management, Innovative Thinking,

With the development of science and technology, retailing in our country has taken place great changes in the past thirty years, compared with developed country. However, it exists great distance not only in scale but in science and technology. Especially, in the market of globalization of the economy, the competition of enterprises has turned into the competition which focuses on Supply Chain (SC), only can enterprises exist and develop in cut-throat market by advanced management conception and modern IT. Demand Chain Management (DCM) is the recently new development of Supply Chain Management (SCM). DC shows that businesses are strongly focused on demand of customer. From addressing to meeting demand of customer. DC runs through all the business activities of it. The basic thought of DCM is that it is oriented from market and demand of customer, that its objects are enhancing competitive power, possession ratio of market, satisfaction ratio of customer, gaining the largest profits. Its operational pattern is collaborative commerce, collaborative competition and mufti-winning. Through running administrating thinking, method, information technology, internet technology and integration technology of modern business, DCM can effectively program and control information flow, logistics, and financial flow on DC. Retailing improves operation conception, quickens business process, improves relationship with supplier and customer, enhances product's competitive power by applying DCM.China has entered into WTO, and retailing tycoon in many countries has rushed into our country, it indicates that our country's retailing must directly confront the intensive competition of the retailing in foreign country to struggle for the global market under the same rule. It is pointed out by many economists, only can our country's retailing be able to compete with the retailing in foreign countries by reducing dealing cost and enhancing sale power. The concept of DC provides a set of thought method and can make retailing orientate definitely and optimize supply process of product. If our country's retailing can apply the advanced conception of DCM to enterprises, managed by modern method of information management, it can surely have a room for them to survive in increasingly intensive competitive global market DCM is adapted to the reform development direction of retail enterprise in our country. It is bound to be a main model of our country's retail enterprise management in the future.The article consists of five parts. The first part is an introduction of SCM and DCM. It states the region of SCM and the analysis of present problem; the connotation of DCM and its research. Then it analyses the similarities and differences of these two kinds of management pattern, and the necessity of change from SCM to DCM. The second part analyses the development of international retailing, and the development tendency of international retailing from SCM to DCM. It emphasizes the advantages that retail enterprises lead the DCM. The third part expatiates on the present situation and characteristics of SCM in our country, and the necessity of innovating the retail supply chain. Further, the article presents the condition which our country's retail enterprises DCM is suitable. The fourth part is the most important section of the article. In this section, our country's retail enterprises DCM is described in three levels: philosophy level, strategy level and tactic level. The fifth part is the last section, but not the least. It emphasizes the questions which should be pay attention to when our country's retail enterprises apply DCM. It will transfer the theory to practice.