The essence of digital supply chain is "supply chain management" + "digitalization". With the development of economic globalization, supply chains are becoming more and more complex.

    The China Chain Store & Franchise Association conducted a survey on the retail industry. What is the biggest problem facing traditional enterprises? 25% of managers think that the biggest problem is supply chain management, and 10% think that the biggest problem is the increase in logistics costs. It can be said that among the various reasons, supply chain-related problems account for two reasons. This is indeed a challenge.

1. Challenges faced by traditional supply chains

1. Rapid changes and uncertainties in demand

    What the supply chain does is demand and supply. There are two kinds of demand and supply. One is toB and the other is toC. ToB is for enterprises and toC is for consumers. In both cases, there are demand changes and uncertainties, such as changes in toB demand.

    In the past, most enterprise products were hardware-based, but now many companies are slowly turning to software. Even if there is hardware, it does not focus on selling hardware. Cisco used to sell routers, switches, and other large products through hardware. Now more and more hardware devices are leased or delivered. They only charge for software usage every month. This change in product structure has brought huge challenges to the traditional supply chain.

2. Forecast and response capabilities of the supply chain

    In the past, delivery was completed as quickly as possible. Now we call it JUST IN TIME. In other words, within a certain period of time, things must be delivered. Not too soon, not too late. This is testing the responsiveness and flexibility of the supply chain. This is a big challenge for companies.

3. Corporate cost and risk control capabilities

    What is the biggest cost of a new retailer? Logistics. Especially the logistics cost of the last mile is the highest. In addition, there are risk control capabilities. The battery explosion is a very important reason for Samsung's sudden disappearance from China. How to control this risk is also a big challenge.

4. Globalized foreign cooperation capabilities

    For traditional industries, global cooperation is a big challenge.

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2. What is a digital supply chain?

    China's traditional economy is manufacturing. China used to be the largest manufacturing plant in the world. Why can China take the lead in the traditional economy and become the world's factory? Because China has a labor dividend. Labor bonuses are not only distributed to workers, but also to our technicians and college graduates every year. In this regard, many countries cannot compare with us.

    The digital economy is accompanied by Industry 4.0, and it has several obvious characteristics:

    First, there must be numbers. Second, there must be a network. Third, intelligence. These three points are indispensable.

    The digital economy dividend is the digital consumer dividend. There are 3.89 billion Internet users in the world and 751 million Internet users in China. Among these netizens, 724 million people use mobile phones. Why must China's digital economy surpass the United States? There are not so many digital consumers in the United States. Digital consumers in the United States are generally distributed in some large cities, such as the east and west. There are no so-called digital consumers in most regions. Therefore, their digital consumption dividend is limited, and China will definitely catch up with them in the digital economy.