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Emerson Network Energy: strengthen supply chain management and build a lean enterprise

Supply Chain: the lifeblood of enterprise development

supply chain refers to the network structure composed of raw material suppliers, manufacturers, distributors, retailers and final consumers involved in the production and circulation of products through the connection with upstream and downstream members Supply chain management is mainly based on the logistics, information flow and capital flow between suppliers and manufacturers, and closely around these three dimensions to enhance the value of the supply chain to manufacturers Supply chain management is an important business process, which mainly focuses on identifying and improving the efficiency of enterprises in reducing costs, increasing revenue and managing assets The process starts with customer needs and ends with the tracking and evaluation of suppliers and related relationships that meet these needs

The supply chain management of enterprises has roughly experienced the following three stages The first stage: push supply chain, the factory only needs to produce a certain number of products in a certain period of time through the master production planning (MPS) system; The second stage: change from push to pull, realize lean production, and ensure that the supply chain system always maintains a low level of inventory; The third stage is flexible production, which realizes low-cost and diversified customized production according to the diversified and small batch needs of customers In the process of lean production, many enterprises adopt the combination of push and pull, that is, they adopt the "push" method for businesses that predict large production demand, and adopt the "pull" method for orders with short delivery time and particularity to adjust their plans and production arrangements to meet the requirements of customers. This is actually a flexible customized production mode

supply chain management of Emerson energy

as a mainstream supplier of energy products, integrated power solutions and integrated services in the global communications industry, Emerson energy implements a strict and effective supply chain management process in the production of products, thus ensuring the purchase quality of raw materials and product quality, and ensuring the environmental protection awareness and social awareness of all links in the supply chain

first, formulate a concise and efficient planning business process Emerson energy's production and procurement plan (mainly refers to semi-finished product processing operation plan and material procurement plan) is based on ERP system Developed by Oracle, the ERP system integrates the advanced management ideas of modern enterprises and fully integrates the resource information of Emerson energy. After 8 years of use, it has become a comprehensive and systematic management platform for the company's decision-making, planning, control and business performance evaluation In addition, the company has also carried out a number of it projects with customers and suppliers. Huang Maosong, a senior consultant of China Polyurethane Industry Association, proposed the project, and successfully implemented B2B (customer), ISP (Supplier) and other information systems, making the whole supply chain more efficient and agile

secondly, standardize supplier certification procedures Emerson energy has developed a "3-step, 9-Step" supplier certification process That is, in the process of cooperation with suppliers, they are evaluated and certified in three stages and nine steps The first stage of certification takes place before the business starts. It consists of four steps: supplier investigation, business review, field investigation, and putting forward quality improvement plans; The second stage of certification occurs when mass production can be started, which consists of four steps: first batch sample review, batch review, establishment of supplier assessment indicators, and the first three months of evaluation; The third stage of certification is comprehensive certification, that is, to evaluate the performance of suppliers regularly, which takes place in the process of formal cooperation with suppliers Through standardized certification procedures, the quality of suppliers is ensured

third, the CEG team bears the heavy responsibility CEG (commodity expert group) is a cross departmental team, which is composed of cost manager, R & D Engineer, supplier quality engineer, financial director, device engineer and material control director, whose responsibility is to ensure continuous supply and optimal quality based on the total cost, provide guidance and suggestions for product development and material selection, and make team decisions in the best interests of the company, So as to implement Emerson's global procurement strategy The overall goal of CEG is to support the company to obtain the overall procurement advantage and make decisions according to the ROTC (rate of return on capital) principle In the decision-making process, the principle that the minority is subordinate to the collective is adopted. All CEG members, including the CEG director, have only one equal vote, and the heads of procurement, technology and quality have independent veto power Through the decision-making of CEG team, the quality control in the process of product realization such as design, pilot test, mass production and service is ensured

from lean production to lean enterprise

a lean supply chain is to integrate the necessary steps and partners in the whole process from product design to customers' getting products, and quickly respond to customers' changing needs. Its core is to use as few resources as possible to meet customers' needs to the greatest extent. The interior environment has become the focus of consumers' attention when buying cars The ultimate goal of lean supply chain strategy is to promote an efficient and responsive organization, realize the synchronization of supply chain processes and timely respond to changes in customer needs As the core content of Emerson energy's lean production and an important part of its lean enterprise strategy, Emerson energy's supply chain management is effective

for example, after several years of development, Emerson Network energy has established a lean supply chain with the following characteristics: 1) simple structure system; 2) Object oriented supply chain mode; 3) Open enterprise information system; 4) Nonlinear system integration mode; 5) Production mode of intelligent neurons In terms of inventory, the inventory cycle of raw materials and semi-finished products has been greatly shortened: 20.05 days and 19.84 days in fiscal year 2005, and 19.11 days and 11.16 days in fiscal year 2007 The shortening of inventory cycle makes the production of enterprises more flexible, avoids many problems caused by large-scale inventory, and adapts to the changing market demand, so as to minimize costs, improve product quality and production efficiency, and maximize customer satisfaction

paying attention to user needs is the basis for the development of Emerson energy, and meeting user needs is the driving force for the development of Emerson energy. This concept of "user needs first" also reflects the "lean" concept of Emerson energy Whether it is users in the telecommunications industry, financial users, large IT users, or small and medium-sized IT users, Emerson Network energy can use the most advanced technology to provide them with products and solutions just as they need. With the help of a powerful platform, Emerson Network energy can ensure the stable operation of client products, the normal operation of client core business, and the continuous improvement of client business operation efficiency. This is the specific embodiment of Emerson Network Energy's "key business fully guaranteed TM", In supply chain management, this shift from push-pull to "flexible" production is also the obvious feature of Emerson energy as a lean enterprise

the competition among modern enterprises has gradually changed from the competition between individual enterprises to the competition of business philosophy, and into the competition between the supply chains where enterprises are located. Supply chain quality has become one of the core competitive elements of the supply chain To strengthen supply chain quality management, especially supplier management, and make supply chain quality a truly competitive weapon, we should abandon the traditional quality management idea based on the enterprise itself, regard various businesses, activities and processes between the node enterprises in the enterprise's internal supply chain and external supply chain as an overall functional process, and carry out effective quality management for this functional process, so as to move from lean production to lean enterprise Emerson energy's practice in this regard undoubtedly sets a model for the entire industry

about Emerson energy

Emerson energy is a business brand owned by Emerson (NYSE: EMR). It is a global leader in "key business full assurance TM", providing all-round assurance from network to chip for communication networks, data centers, healthcare and industrial facilities Emerson energy provides customers with innovative solutions and expertise in the fields of AC and DC power supply, precision refrigeration, embedded computing and power supply, integrated racks and cabinets, transfer switches, power and environmental monitoring, connectivity, solar energy and wind energy All solutions can be fully supported by local Emerson energy professional service personnel worldwide For details of Emerson energy's products and services, please visit

about Emerson

Emerson company (NYSE: EMR), headquartered in St. Louis, Missouri, is a world leading company used in the hood of Mercedes A-class vehicles. The company combines technology and engineering to provide customers with innovative solutions in the fields of network energy, process management, industrial automation, environmental optimization technology, home appliances and tools The company's sales in fiscal year 2008 reached 24.8 billion US dollars For more information, please visit the company website (global) (China)

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