Supply Chain Cost Control And Risk Management Of PCB Enterprises

This article analyzes the risks and opportunities PCB enterprises facing under moderneconomic environment, and explores the best supply chain for development of Chinese PCBenterprises. This article emphasizes on cost control and risk management in supply chainmanagement, especially on cost control mode. It argues that the core of competition betweenmanufacturing enterprises lies in the competition of comprehensive cost of supply chain,which is the total of purchase cost, logistics cost, inventory cost, quality cost etc. Riskmanagement is ignored by enterprises for a long time. Actually supply chain management isvery fragile, especially at a time of globalize economy. The increasing of international tradeand supply chain operation risks may even lead to the collapse of supply chain.The research conclusion is purchase cost is just the tip of the iceberg of all the elementswhich impact supply chain cost. Other important elements are series of hidden fees includingdelivery cost, service support costs, cost of delays in delivery, surplus and waste cost,inventory cost, etc. In order to reduce supply chain cost, we must pay attention to informationtransfer and purchase process optimization. We must control inventory well and strengthensupply chain management. The potential risk in the supply chain management is includingnatural risk such as typhoons, earthquakes, snowstorms, epidemic etc. as well as manyman-made factors such as supply shortage of bottleneck suppliers, information transmissiondistortion, network risk, strike etc. The damage of supply chain operation can lead todisastrous consequences. For the reference of supply chain management of PCB enterprises,this article puts forward series of suggestions to these two problems.