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play the overall effectiveness of the prerequisite and foundation. 第 8 頁(yè)共 13 頁(yè) ? supply chain and supply chain management concept Supply chain is anized around the core businesses, through the flow of information, logistics, capital flow controls, from procurement of raw materials, intermediate products into final products, as well as from sales of work products to consumers will be suppliers, manufacturers, sub and retailers sell until the endusers even as a function of the overall work chain structure. Supply chain management refers to people in understanding and mastering the supply chain and interlinkages inherent laws, based on the use of the management of the planning, anization, mand, coordination, control and incentive function, production and circulation of products in all aspects of the process involved in logistics, information flow, capital flow, the value of stream flow, as well as a reasonable business regulation to achieve the best bination for maximum efficiency and minimum cost to provide customers with maximum value of the process. Supply chain management is the need to meet the level of service at the same time, in order to minimize system cost while the use of suppliers, manufacturers, warehouses and shops effectively bine into one, and the number of the correct time in the right distribution of goods to the correct location of a sets of methods. Supply chain management and the impact on the cost to meet customer needs in the course of the role of each party are taken into account, from suppliers, manufacturers, warehouses, distribution centers to retailers, suppliers and even suppliers and customers customers, the aim is to improve efficiency and reduce costs. Supply chain management to business management from a single business area expanded to the entire supply chain for effective management and, through informationsharing will be the possibility of missed sales opportunities to a minimum, the entire supply chain to reduce inventory, lower operating costs, shorten delivery times, improve cash flow, changes in market demand to minimize the risk. 2 under the management of supply chain logistics management application Supply chain management applications in the logistics of the inevitability of 第 9 頁(yè)共 13 頁(yè) Logistics system is a socialized system, constraining the development of a number of factors: different consumer customers and the regional environmental conditions, distribution links, logistics costs, inventory control and so on. Applies to the logistics supply chain management is a kind of uniform planning, logistics systems, supply chain management with the features and advantages of integration. Supply Chain Management Business Process Reengineering the idea of making rapid restructuring processes have greatly improved the ability to promote the logistics system agility, not to increase the value by removing part of the supply chain logistics system to further reduce operation cost and provides a fine basic security. Supply chain as a whole, cooperation and coordination of supply chain management is an important feature. In this environment a seamless logistics system also needs to connect, and its overall coordi nation should be strengthened, such as transportation of goods to arrive on time, customer needs can be met in time. Procurement of goods will not be hindered in the way of cooperation to strengthen supply chain, therefore, supply chain logistics system is a high degree of coordination of the supply chain to ensure that the prerequisite for success. Major concerns of logistics management functions of the enterprise integration, and supply chain management is the supply chain enterprises in all nodes as a whole, emphasizing the integration between enterprises, concern about the linkages between enterprises. Logistics m