During the May Day holiday, I couldnt buy a ticket to go home and didnt want to deal with crowds at popular tourist spots. Therefore, I had time to read an entire book on the day of charity, which coincided with my vacation. After finishing Professor Lius book on procurement management, I gained a lot of knowledge, not only about managing the front-end of the supply chain but also about how to manage these points. Now, I am starting to read "The Three Lines of Defense for Supply Chain: Demand Forecasting, Inventory Planning, and Supply Chain Execution (2nd Edition)." Starting with the definition of demand forecasting, the book describes a large number of case studies. It sets up the three lines of defense for supply chain management of demand forecasting, from setting up plans to setting up safety stock within the enterprise (which can be understood as backup plans), to increasing production only when backup plans cannot support market orders. I really appreciate the authors use of the example of a flood to make the relationships more vivid. I learned a bit about how to do demand forecasting and from which dimensions to forecast, which is more important than who does demand forecasting. Combining historical enterprise data with data analysis is a way to assist demand forecasting. "Demand forecasting" is indeed an important management link in supply chain management that cannot be avoided. However, it still needs to be combined with local characteristics to implement enterprise solutions. In my opinion, it is necessary to first establish the relevant responsible persons based on the local environmental factors and then explore how to do demand forecasting through corresponding scientific data analysis methods. Based on the fact that there is still room for improvement in the management methods of domestic enterprises, the goals set are nearly equivalent to not being set if they are not first implemented by relevant responsible persons. The book describes many data analysis models that can be practically applied to work. These will be more straightforward in helping us with our daily management work. After setting up the enterprises safety stock based on the first line of defense after the flood, it can effectively solve the problem of the second line of defense, "inventory planning." As for the third stage of the supply chain execution issue, it focuses more on how to solve the emergency plan that the first two lines of defense failed to solve, and how to solve the problems that may arise during the implementation of the emergency plan. Reading the whole book is more focused on internal enterprise management, and there are some differences in the management role positioning compared to the book on procurement management, which emphasizes both internal and external collaboration.
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