The supply chain refers to a functional network structure model that connects suppliers, distributors, retailers and end users through the control of information flow, logistics and capital flow, starting from the purchase of raw materials, making semi-finished products and final products, and finally delivering products to every consumer through the sales network. For merchants on Alibaba International Station, their role is in the middle link. The upstream is the supplier and the downstream is the buyer. What merchants need to do is to use supply chain management to balance the relationship between the two to maximize their profits.
(1) Customer demand-oriented. In actual work scenarios, the merchant’s upstream suppliers are followed up and negotiated by the procurement team, and the downstream customers are the business team. There will often be conflicts between the two. Customers will propose modifications to the product according to their own ideas. In daily customer follow-up, merchants often receive manuscripts and other information from customers. After communicating with the factory, they find that this idea cannot be implemented due to actual conditions such as process and material. Therefore, whether it is business or procurement, it must be clear that it must be customer demand-oriented. Both parties communicate with each other and discuss how to better meet customer needs and realize customer ideas.
(2) Aim to improve quality and efficiency. The quality of a supply chain is ultimately reflected in the comprehensive balance of quality, efficiency and cost. These three indicators are often mutually constrained. If the efficiency is high, the cost will be high, and the quality may be reduced. In practice, under the premise of ensuring basic profits, merchants should pursue the improvement of quality and efficiency as much as possible.
(3) Integrate resources as a means to achieve product design, procurement, production, sales, service, etc. With the development of society, the competition between enterprises is no longer a competition between one enterprise and another, but a competition between the supply chain of one enterprise and the supply chain of its competitors. Open cooperation and integration of resources are almost the only way out for enterprises. When Alibaba first proposed the RTS track, the first reaction of many factory-type merchants was to refuse: Why should we accept small orders? Isn’t it better to use the time to communicate with small order customers to explore a few big customers? However, there are always merchants who are the first to take the plunge. A textile factory in Hangzhou has specially established an RTS team to prepare semi-finished products in advance. According to the customization needs of customers, printing and packaging are completed on the day of receiving the order, and the goods are shipped the next day. This not only meets the needs of customers for light customization, but also achieves sales growth. From the first trial order to the subsequent repeated orders, it is a process of cultivating small B customers into super high viscosity customers.