Smart Manufacturing and Supply Chain Management

Alibaba Cloud
4 min readMar 28, 2022

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1. Supply Chain Management

Supply chain management is to coordinate the internal and external resources of the enterprise to jointly meet the needs of consumers. When we regard the enterprises in each link of the supply chain as a virtual enterprise alliance, and regard any enterprise as a department in this virtual enterprise alliance, the alliance’s Internal management is supply chain management. It’s just that the composition of the alliance is dynamic and changes at any time according to market needs.

Effective supply chain management can help achieve four goals:
Reduce cash flow time; reduce business risk; achieve profitable growth; provide predictable revenue.

Seven principles of supply chain management:
Divide customer groups according to the service characteristics required by customers; design the logistics network of the company according to customer needs and the profitability of the company; listen to market demand information and design products that are closer to customers; time delay; strategically determine sources of supply and Purchasing and suppliers establish a win-win cooperation strategy; establish information systems in the entire supply chain; establish performance appraisal criteria for the entire supply chain, etc.

2. Trends in Smart Manufacturing and Supply Chain Management

The focus of the manufacturing competition is on innovation capability, supply chain integration capability and comprehensive service capability. In the value chain of the enterprise, from the research and development of technical products, the manufacture of parts and components, the manufacture of accessories, the production of complete sets of main equipment, the operation of agents, sales and leasing, to after-sales service and maintenance, a large amount of information technology is needed.

The connotation of intelligent manufacturing

Intelligent manufacturing is one of the hotspots today. The goal of intelligent manufacturing is to realize the intelligence and innovation of the entire manufacturing value chain, which is a further improvement of the deep integration of informatization and industrialization. Intelligent manufacturing integrates information technology, advanced manufacturing technology, automation technology and intelligent technology. At present, the “intelligence” of intelligent manufacturing is still at the level of Smart. The intelligent manufacturing system has the capabilities of data acquisition, data processing, and data analysis, can accurately execute instructions, and can realize closed-loop feedback. The trend of intelligent manufacturing is to realize “Intelligent”, intelligent manufacturing systems can realize independent learning, independent decision-making, optimization, and improvement.

In the content of intelligent manufacturing, enabling technologies include the Internet of Things, robotics, additive manufacturing, cloud computing, big data analysis, electronic data exchange, AR/VR, artificial intelligence, etc.; intelligent products and intelligent services can help enterprises bring The innovation of business model; intelligent equipment, intelligent production line, intelligent workshop to the intelligent factory, can help enterprises realize the innovation of production mode; intelligent research and development, intelligent management, intelligent logistics and supply chain can help enterprises realize the innovation of operation mode; and Intelligent decision-making can help enterprises realize scientific decision-making.

Supply Chain Management in Manufacturing

The core ideas of manufacturing supply chain management include emphasizing the development of the core competitiveness of enterprises and outsourcing non-core businesses; viewing the entire supply chain as an integrated organization, and the enterprises on the chain are partners, and the entire network resources are integrated and managed. ; Through the division of labor and collaboration among enterprises in the supply chain, it is committed to the rationalization and optimization of logistics, information flow, and capital flow in the entire supply chain, thereby enhancing the competitiveness of the entire supply chain; supply chain management through information sharing, Risk sharing, and revenue sharing, based on the maximization of the overall revenue of the supply chain, coordinated management among partners.

In today’s Internet era, we have found new difficulties in supply chain management. For example, in the bullwhip effect, the information flow goes up against the supply chain and distorts step by step, resulting in increasing fluctuations in-demand information. Under the circumstance of great changes in the business model, the accuracy of demand has become an urgent problem to be solved; the hockey stick effect, In the Internet era, the hockey stick effect has changed, which has brought huge challenges to the logistics and production of manufacturing enterprises; the double-channel superposition effect, the development of the Internet, and the double superposition of online and offline have increased the complexity of the supply network of manufacturing enterprises and increased The difficulty of demand forecasting; the double marginal effect, with the deepening of the cooperation of members in the supply chain, the resulting problem of distribution of benefits among enterprises is more prominent.

The common requirements of manufacturing supply chain management include agile and transparent sourcing and procurement; good supplier relationship to realize the exchange of information between both parties; real-time visualization of orders; production planning and scheduling synchronized with materials and orders; inventory optimization; Efficient transportation and distribution center management; accurate demand forecasting; logistics network design and optimization.

The whole process of information sharing and transparency is an important point in supply chain management. To achieve process processing visualization, application visualization, logistics tracking management visualization, inventory management visualization. This process involves many information technologies, including EDI, e-commerce, barcode technology, EAI, RFID, cloud computing, GPS, GIS, mobile applications, etc.

There are five synergies in manufacturing supply chain management: supply synergy, production synergy, demand synergy, capital flow synergy, and logistics synergy.

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