Principles of Supply Chain Management 2nd Edition by Richard E. Crandall, William R. Crandall, Charlie C. Chen – Ebook PDF Instant Download/Delivery: 9781482212068 ,1482212064
Full dowload Principles of Supply Chain Management 2nd Edition after payment
Product details:
ISBN 10: 1482212064
ISBN 13: 9781482212068
Author: Richard E. Crandall, William R. Crandall, Charlie C. Chen
The second edition of this popular textbook presents a balanced overview of the principles of supply chain management. Going beyond the usual supply chain text, Principles of Supply Chain Management not only details the individual components of the supply chain, but also illustrates how the pieces must come together. To show the logic behind why su
Principles of Supply Chain Management 2nd EditionTable of contents:
Section I: Overview of Supply Chain Management
TABLE I.1 Principles of Supply Chain Management Overview
Section II: Demand Perspective
Section III: Supply Perspective—Distribution, Production, Procurement, and Logistics
Section IV: Need for Integration
Section V: Financial and Information Technology Perspectives
Section VI: The Future
Section I Overview of Supply Chain Management
1 Evolution of Supply Chains
Learning Outcomes
Company Profile: Procter & Gamble (P&G)
TABLE 1.1 A Comparison of Top 25 Supply Chain Companies: 2008 and 2013
What Is a Supply Chain?
Importance of SCM
FIGURE 1.1 Examples of supply chains for various industries.
Evolution of Supply Chains
Early Supply Chains
Local Supply Chains
Global Supply Chains
Changing Government Orientation
State-Controlled Governments
Market-Driven Governments
Current Trends That Link Supply Chain Participants More Closely
Relationship Building
Customer Relationship Management
Supplier Relationship Management
Product Life Cycle Management
Electronic Business
Developing Economies
Outsourcing
Need for Quality Improvement
Changing Customer Demands
Decreasing Response Time
Lean Supply Chains to Reduce Waste
Current Developments in SCM
Power Has Shifted from Manufacturers to Retailers
Consolidation of Small, Local, or Regional Retailers into National Chains
Emergence of “Killer Category” Retailers
From a Make-and-Sell Mentality to a Sense-and-Respond Orientation
Obstacles to Supply Chain Integration
Need for Globalization
Complexity of Arranging Entities with Common Interests
Lack of Effective Interorganizational Systems
Need for Multiple Supply Chains within Companies
Lack of Trust between Participants
Examples of Companies with Successful Supply Chains
Summary
Hot Topic: Outsourcing to Low Wage Countries
MAKE VERSUS BUY
TOY PROBLEMS
QUESTIONS FOR DISCUSSION
REFERENCES
Discussion Questions
References
2 Supply Chains as a System
Learning Outcomes
Company Profile: Zara’s
Inditex: Zara
INFORMATION GATHERING
PRODUCT DESIGN
MANUFACTURING
DISTRIBUTION
STORES
RESULTS
SYSTEM
REFERENCES
Introduction
FIGURE 2.1 Basic ITO model.
Supply Chain Systems
Inputs
Transformation
Outputs
TABLE 2.1 Examples of ITO Processes in Different Industries
Manufacturing versus Services
Characteristics of Supply Chains
Physical Flow
Information Flow
Funds Flow
Relational Flow
Examples of Supply Chains in Different Industries
TABLE 2.2 Supply Chains for Different Industries
Internal and External Customers
FIGURE 2.2 Role of customers in the ITO model.
Open Systems versus Closed Systems
FIGURE 2.3 Closed versus open systems.
Effect of External Influences on Supply Chains
Obstacles and Enablers of Supply Chain Integration
TABLE 2.3 Potential Impact of External Factors on Supply Chain Systems
Obstacles
TABLE 2.4 Obstacles to Supply Chain Integration for Functional Areas
Enablers
Performance Measurement
Allocation of Costs, Resources, and Benefits along the Supply Chain
TABLE 2.5 Southwest Airlines’ Allocation of Costs, Resources, and Benefits
Value Creation as the Ultimate Objective
Summary
Hot Topic
Hot Topics in the Supply Chain: How a Natural Disaster Can Cripple a Supply Chain
BACKGROUND
FACTORS THAT INTENSIFY THE EFFECT OF A NATURAL DISASTER
Carrying Smaller Inventories
Single Sourcing
Daily Deliveries
Automation
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
Section II Demand Perspective
3 Determining Customer Needs
Learning Outcomes
Company Profile: McDonald’s
Company Profile: McDonald’s
BEGINNINGS
GROWTH AND TURMOIL
RECENT CHANGES
REFERENCES
Introduction
Group Customers into Homogeneous Segments
Determine Needs of the Ultimate Consumer
Product Needs
Service Needs
Marketing Mix
Manufacturing and Service Supply Chains
TABLE 3.1 Product and Service Characteristics
Accurately Determine Customer Needs
Approaches
Market Research
Open System Scanning
Competition
Technology
Economy
Government
Social Trends
Business Environment
Develop Reliable Demand Forecasts
Quantitative Forecasting Methods
TABLE 3.2 Summary of Quantitative Forecasting Methods
Simple Moving Average
FIGURE 3.1 Graph of forecast methods.
Weighted Moving Average
Exponential Smoothing
Exponential Smoothing with Trend Adjustment
Seasonal Factor Forecasting
TABLE 3.3 Developing a Seasonal Forecast
Regression Analysis
Qualitative Forecasting Methods
Survey Method
Delphi Method
Collaborative Forecasting
Determine the Attributes of a Well-Designed Product
Functionality (Product Works to Satisfy Customers’ Needs)
Validity (Product Has Value and Functions at a Reasonable Cost)
Manufacturability (Product Can Be Efficiently Produced)
Reliability (Product Has a Variety of Quality Attributes)
Serviceability (Product Can Be Serviced during Its Effective Life)
Recyclability (Product Can Be Recycled along the Reverse Logistics Supply Chain)
Consider Alternative Product Design Approaches
Quality Function Deployment
Concurrent Engineering
Design for Manufacturability
Design for Sustainability
Determine the Number of Supply Chains Needed by a Company
Align with Customer Segment
Align with Product/Service Bundle
Align with Supplier Category
Align with Common Incentives
Respond to Needs of Internal Customers
Conclusion
Hot Topic: Human Trafficking
Hot Topics in the Supply Chain: Is There Human Trafficking in Your Supply Chain?
BACKGROUND
CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT OF 2010
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
4 A System to Meet Customer Needs
Learning Outcomes
Company Profile: GE Aviation
Company Profile: General Electric
CUSTOMER RELATIONSHIP MANAGEMENT
PRODUCT LIFE CYCLE MANAGEMENT
OTHER PROGRAMS
REFERENCES
Supply Chain Models
FIGURE 4.1 SCOR model scope and structure.
TABLE 4.1 Supply Chain Activities of Five SCOR Processes
Global Supply Chain Forum Model
TABLE 4.2 Differences between SCOR and GSCF
Customer Relationship Management
Origins of CRM
What Can CRM Do?
Benefits
CRM Processes
Problems
CRM’s Future
Product Life Cycle Management
What Is PLM?
How Did PLM Evolve?
What Does PLM Include?
What Does PLM Not Include?
What Are the Benefits of PLM?
What Are the Obstacles?
What Is the Present Status of PLM?
What Does the Future Hold?
Supply Chain Configuration
Basic (Generic) Supply Chain
Variations for Different Industries
Supply Chain Mapping
Determining Resource Requirements
Facilities
FIGURE 4.2 Examples of different supply chains.
FIGURE 4.3 Supply chain map for apparel.
FIGURE 4.4 Mapping a reverse supply chain network.
TABLE 4.3 Facility Location Strategies and Their Characteristics
Equipment
Employees
Inventory
Information Systems
Designing Processes to Match with Products
FIGURE 4.5 Product–process matrix.
Make to Stock
Assemble to Order
Make to Order
Engineer to Order
Determining the Mix of Make and Buy
Core Competency Concept
Total Cost of Ownership
Cost Reduction versus Revenue Increase Considerations
Effect of Outsourcing Movement
Aligning Entities along the Supply Chain
Entities to Be Involved
Allocation of Authority and Responsibility among Entities
Collaboration Process
Implementation Plan
Evaluating the System Design
Will It Accomplish Its Objectives?
Is It Sustainable?
Is It Flexible?
Summary
Hot Topic: Sweatshops
Hot Topics in the Supply Chain: Sweatshops—Two Sides of the Same Coin
BACKGROUND
CRITICS OF SWEATSHOPS
SUPPORTERS OF SWEATSHOPS
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
5 Demand Management
Learning Outcomes
Company Profile: NextEra
Company Profile: NextEra
SOURCES OF DEMAND AND SUPPLY
EVOLUTION
DEMAND MANAGEMENT STRATEGIES
OBSTACLES
SUSTAINABILITY
REFERENCES
Introduction
Definition of Demand Management
FIGURE 5.1 Traditional approach to demand management.
FIGURE 5.2 Contemporary approach to demand management.
Importance of Demand Management
Managing Demand
Accept All Demand
Select the Types of Demand to Accept
Solicit External Input in Forming Demand Patterns
Design the Form in Which Demand Will Be Accepted
Impose Constraints on Demand Submission
Managing Supply
Select a Demand Management Strategy
Develop a Demand-Forecasting System
Determine the Resource Requirements to Meet the Demand
Merging Supply and Demand into a Demand Management Process
Sales and Operations Planning to Match Short-Term Supply and Demand
Collaboration among Supply Chain Participants
Demand Management in Manufacturing
Demand Management in Services
Proposed Demand Management Strategies
FIGURE 5.3 Demand management strategies.
Factors That Affect Selection of a Demand Management Strategy
Resources’ Value
TABLE 5.1 Factors That Influence Demand Management Strategies
TABLE 5.2 Demand Management Strategies and Resource Factors
TABLE 5.3 Demand Management Strategies and Demand Factors
Type of Demand
Top Management Strategies
TABLE 5.4 Demand Management Strategies and Strategic Factors
Relationship between Factors and Strategies
TABLE 5.5 Two Examples of Factors That Influence Demand Management Strategies
Model for Integrating Demand and Supply Management
TABLE 5.6 Comparison of Marketing and Operations Demand Management Strategies
FIGURE 5.4 Integrated demand management planning model.
TABLE 5.7 Planning Example for Marketing and Operations
Programs Used to Implement Demand Management Strategies
Provide Strategy Programs
TABLE 5.8 Demand Management Programs
Match Strategy Programs
Influence Strategy Programs
Control Strategy Programs
Demand Management along the Supply Chain
Retail
Wholesale
Manufacturer
Mining and Agriculture
Summary
Hot Topics in the Supply Chain: The Problem of Cheap
GRESHAM’s LAW AND DISCOUNT GOODS
WHERE HAVE ALL THE GOOD PRODUCTS GONE?
LINK TO INNOVATION
Questions for Research and Discussion
References
Discussion Questions
References
Section III Supply Perspective—Distribution, Production, Procurement, and Logistics
6 Distribution and Retailing
Learning Outcomes
Company Profile: Lowe’s
Company Profile: Lowe’s
RETAIL
DISTRIBUTION
SUSTAINABILITY AND SOCIAL RESPONSIBILITY
References
Introduction
Retail Function
History of Retailing
FIGURE 6.1 Evolution of retail stores.
TABLE 6.1 Major Types of Retail Stores
TABLE 6.2 Types of Nonstore Retailers
Characteristics of the Industry
Customers and Markets
TABLE 6.3 Relative Size of Major Industries in the United States
Outputs
Inputs
Transformation Process
FIGURE 6.2 The four P’s of marketing.
Impact on Operations Management
Designing the Retail Process
Strategic Orientation
Critical Design Points: Keys to Success
TABLE 6.4 Levels of Personal Contact
TABLE 6.5 Considerations in Retail Store Layouts
Additional Factors to Consider in Retail Store Design
Multidiscipline Project
Continuing Need to Readjust or Redesign
E-Commerce Considerations (Direct vs. Indirect Selling)
Strategic or Long-Term Considerations
Managing a Retail Business
Determine the Expected Demand
Plan Capacity to Meet Demand
Implement the Operating Plan
Measure Performance
Replan for the Next Period
Retail and Inventory Management
Value
Availability
Variety
Presentation
Service
Response Time
Present Situation in Retailing
Future in Retailing
Role of Wholesalers and Distribution Centers
Ordering
Receiving
Stocking
Picking
Loading the Trucks
Transporting to Stores
Unloading and Display at Stores
Critical Success Factors for Distribution
Inventory within Distribution Functions
Inventory Management between Retailer and Distributor
Technology in Distribution Functions
At the Retail Store
Movement of Goods
At the Distribution Center
Distribution Center Design
Positioning Services within the Distribution Functions
Presale Services
Postsale Services
Role of Third-Party Service Providers
Distribution Performance Measurement
Financial Performance Measures
Operating Performance Measures
Collaboration Performance Measures
Retailer–Distributor Relationship
Summary
Hot Topic: Contaminated Milk
Hot Topics in the Supply Chain: The Problem of the Middleman and a Milk Crisis in China
BACKGROUND
FIGURE 6.3 The supply chain for melamine-laced milk.
COMPANY RESPONSE
Questions for Research and Discussion
References
Discussion Questions
References
7 Production and Service Processes
Learning Outcomes
Company Profile: Caterpillar
Company Profile: Caterpillar Inc.
LINES OF BUSINESS
PROCESSES
TABLE 7.1 Business Segments with Sales and Profits by Segment
SERVICES
LOCATIONS
TABLE 7.2 Manufacturing Locations throughout the World
TABLE 7.3 Manufacturing Locations outside the United States
EMPLOYEES
RESEARCH AND DEVELOPMENT
SUSTAINABILITY
STRATEGY DURING THE RECENT ECONOMIC DOWNTURN
REFERENCES
Introduction
FIGURE 7.1 Basic input–transformation–output (ITO) model.
FIGURE 7.2 Evolution of the expanded supply chain. As companies extend their supply chain, both forward to the customers and back to the suppliers complexity increases, making communications more critical; variability in demand decreases, making reduced inventories possible; interdependence increases, making delivery reliability more important; supplier dependability increases, making fewer suppliers necessary; and material flow smooths, making lead (response) times shorter.
Evolution of the Production Function
From Craft to Mass Production
From Mass Production to Mass Customization
FIGURE 7.3 From the craft age to the mass customization age.
Critical Success Factors for Manufacturers
Cost and Efficiency
Quality
Responsiveness: Timing of Delivery
Responsiveness: Product/Service Mix
Flexibility
Agility
Information Technology
Manufacturing Strategies
FIGURE 7.4 Traditional production.
Make to Stock
Locate to Order
Assemble to Order
Make to Order
Engineer to Order
Batch to Lean Operations
Present Batch Flow
FIGURE 7.5 Review of batch flow characteristics.
FIGURE 7.6 Physical layout—a process layout.
Machine Breakdowns
Supplier Failures
Worker Flexibility
Customer Lead Times
Customer Order Size
Proposed Lean Production Flow
Customer Lead Time
FIGURE 7.7 Review of JIT characteristics.
FIGURE 7.8 Physical layout—with manufacturing cells.
Extra Available Space
Faster Detection of Quality Problems
Ease of Transferring Operators
Reduced Scheduling Requirements
Smaller Lot Sizes
No Buildup of WIP Inventory
Empowered Employees
Reduced Equipment Breakdowns
Reduced Late Material Deliveries
Reduced Write-Off of Inventory
Obstacles to Implementing Lean
Make or Buy Strategies
Vertical Integration
Outsourcing
TABLE 7.4 Total Cost of Ownership Model
Capacity Planning
How Much Capacity? When? What Kind?
Location and Ownership
Service Production Strategies
Relationships with Downstream Customers
FIGURE 7.9 Product–process matrix.
From Transactions to Processes
Transactions versus Processes
Basic Processes of a Business
Benefits of a Process Orientation
Effect of Process Orientation
Organizational Structure
Strategies
Knowledge Management
Change Management
Trends in Production
From Manual to Automated
From Domestic to Global
From Standard Products to Customized
Postponement
Sales and Operations Planning
Additive Manufacturing
Performance Measurement
As Measured by Accounting
As Measured by Production
Measures along the Supply Chain
Summary
Hot Topic: Clothing Manufacturing
Hot Topics in the Supply Chain: Clothing, the Achilles Heel of the Supply Chain
CODES OF CONDUCT
ROLE OF THE HOST GOVERNMENT
QUESTIONS FOR RESEARCH AND DISCUSSION
References
Discussion Questions
References
8 Procurement/Purchasing
Learning Outcomes
Company Profile: Nestlé
Company Profile: Nestlé
PRODUCTS AND MARKETS
VALUE STATEMENTS
TABLE 8.1 Nestlé Sales for 2012
TABLE 8.2 Nestlé Employees and Factories
PURCHASING
Palm Oil
Soya
Paper and Paperboard
Water
SUSTAINABILITY
CONCLUSION
REFERENCES
Introduction
FIGURE 8.1 Purchasing along a clothing manufacturer supply chain.
Role of Procurement in the Supply Chain
Traditional Purchasing
TABLE 8.3 Vendor Rating System
Contemporary Purchasing
Changing Role of Purchasing
TABLE 8.4 Stages of Purchasing Sophistication
Critical Success Factors for Purchasing
Functionality
Availability
Cost
Quality
Match Inflow with Outflow
Reduce Variances in Delivery
Increase Supplier Dependability
Reduce the Bullwhip Effect
Become an Intercompany Facilitator
Find Sustainable Suppliers
Purchasing Functions: Participating
Product Design
Product Specifications
New Product Introduction
MANAGERIAL COMMENT 8.1 ROLE OF PURCHASING IN NEW PRODUCT INTRODUCTION
MATERIALS MANAGEMENT
WHERE SPRINT CAN ADD VALUE
TABLE 8.5 Steps in the SPRINT Project
Target Costing
Strategic Sourcing
Supplier Location
Inventory Management
Supplier Risk Management
Purchasing Functions: Directing
Purchasing Process
FIGURE 8.2 Purchase order process flow. 1, Prepare order and send to supplier; 2, supplier checks credit of customer before shipping; 3, supplier prepares order for shipment; 4, supplier prepares invoice; 5, supplier ships to customer, directly or through third party; 6, purchasing sends purchase order to accounting; 7, operations sends receiving report to accounting; 8, supplier sends invoice to customer (accounts payable); 9, accounts payable reconciles purchase order, receiving report and invoice; approves payment; 10, customer bank sends electronic funds transfer to supplier bank.
Supplier Evaluation
Supplier Relationship Management
Supply Chain Coordination/Collaboration
Purchasing along the Supply Chain
Consumer
Retail
Wholesale
Manufacturer
Mining and Agriculture
Services
Offshore Outsourcing
As a Strategic Concept
TCO Considerations
TABLE 8.6 Stages of Purchasing Sophistication
As a Project, with Project Management Needs
Other Considerations: Intangible Costs and Public Acceptance
Supplier Location as a Strategy for Entering an Offshore Market
Performance Measurement
Traditional: Positive Purchase Price Variance
Contemporary: Enhanced Value for the Consumer
Future of Purchasing
Summary
Hot Topic: Apple Juice
Hot Topics in the Supply Chain: Why Apple Juice Should Be Made from… Apples
BACKGROUND
THE AFTERMATH
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
9 Logistics: The Glue That Holds the Supply Chain Together
Learning Outcomes
Company Profile: Transportation Insight
Company Profile: Transportation Insight
HISTORY
About 3PLs
TRANSPORTATION INSIGHT SERVICES
SUCCESS STORIES
FIGURE 9.1 Supply chain analytics.
BENEFITS
CONCLUSIONS
REFERENCES
Scope of Logistics
Evolution of Integrated Logistics
FIGURE 9.2 Integrated logistics in a supply chain.
FIGURE 9.3 Evolution of the supply chain.
FIGURE 9.4 Evolution of integrated logistics.
Transportation
Truck: Privately Owned or Third-Party Carriers
Rail: For Selected Goods
Waterways
Air
Pipeline
Parcel
Transmission Lines
Fiber-Optic Cable Networks
Materials Management
Interim Storage
Exchange Points
Traceability
Integration
Outsourcing
Drivers of the Outsourcing Movement
Sustainability
Social Responsibility
Ethical Responsibility
Future Company Well-Being
Steps in the Outsourcing Decision
Step 1. Determine Project Feasibility
FIGURE 9.5 An approach to outsourcing decision making.
Step 2. Prepare a Project Plan
Step 3. Estimate Annual Savings
Step 4. Identify Risks or Disruption Costs
Step 5. Estimate the Return on Invested Capital
Step 6. Implement the Offshore Outsourcing Program
Step 7. Measure Progress
Step 8. Review and Revise
Summary
Reshoring Initiative
Rise of 3PLs
TABLE 9.1 Global 3PL Market Size Estimates
FIGURE 9.6 Origins of 3PLs.
FIGURE 9.7 Classification of 3PLs.
Benefits of 3PL Services
Reduces Total Cost
Decreases Total Time from Origin to Destination
Results in More Consistent Processing: Less Variability in Elapsed Time
Allows Individual Participants to Concentrate on Core Functions
Increases Flexibility of the Supply Chain
Leads to Market Development through 3PL Contacts
Taps into Specialized Knowledge Not Normally Internal to Company
Obstacles to Successful Implementation
Lack of Qualified Personnel within the Company to Manage the 3PLs
Lack of Full-Service Providers
Perceived Loss of Control by Outsourcing Company
Difficulty in Coordinating Disparate Participants
Lack of a Comprehensive Financial Analysis before Implementing
Difficulty in Selecting and Using Appropriate Performance Measures
Trend toward Outsourcing the Distribution Function
Major Companies
Role of 4PL in Building Supply Chain Relationships
High-Tech Industry Issues
TABLE 9.2 Priorities of High-Tech Supply Chains
Risk Management
Status Report
TABLE 9.3 Shipper and 3PL Challenges
Hot Topic
Hot Topics in the Supply Chain: Container Shipping and its Risk Points
CONTAINER SHIPPING AND ITS RISKS
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
10 Reverse Supply Chains
Learning Outcomes
Company Profile: GENCO
Company Profile: Reverse Logistics GENCO
COMPANY HISTORY
DISCUSSION OF REVERSE LOGISTICS
DESCRIPTION OF REVERSE LOGISTICS AT GENCO
TABLE 10.1 Returns Management Services at GENCO
DESCRIPTION OF PLM AT GENCO
REFERENCES
Introduction
Description of Reverse Supply Chain Networks
Benefits of Reverse Logistics*
Barriers to Reverse Logistics
Continuation of Forward Supply Chains
FIGURE 10.1 Forward (downstream) supply chain.
FIGURE 10.2 Product life cycles.
History of Reverse Logistics
Principal Drivers of the Movement
Individual Consumers
MANAGERIAL COMMENT 10.1 EVOLUTION OF REVERSE LOGISTICS
Individual Businesses
Society as a Group
Environmental Concerns
Resource Scarcity Concerns
Business Sector
Economic Benefits Possible
New Businesses, Even New Industries, Possible
Educational Institutions
Governments: At All Levels
Activities in Reverse Logistics
Service: Assure Proper Use of Product
Returns: Repackaging or Relocation
Restoration: Minor Modification or Repair
Remanufacturing: Overhaul and Major Rebuilding
Recycling: Reconstitution as Part of Another Product
Disposal: Return to Natural State
Hazardous Waste Disposal
Role of Private Industry
New Paradigms in Product Design (Design for Sustainability)
Design and Operate Green Supply Chains
Develop Systems to Manage Reverse Logistics
Participate in Joint Ventures to Seek Social Objectives
Role of Government
Research: To Identify Threats and Opportunities
Legislation: To Standardize Business Requirements
Regulation: To Monitor Performance
Participation: To Encourage and Support Ongoing Programs
Role of Consumer
Participant in Reverse Supply Chain Programs
Educated Consumer
Supporter of Green Supply Chain Efforts
Reverse Logistics Network
Continuation of the Forward Supply Chain
Open System Environment
Heavily Outsourced by Major Businesses
Need for a Life Cycle Systems Approach*
FIGURE 10.3 Excess inventory life cycle model.
FIGURE 10.4 Factors to consider during RSC life cycles.
Need for IT
Other Considerations in Designing Reverse Supply Chains
Future
Growth in Amount of Materials Recycled
Increase in Number of Companies Performing Reverse Logistics Activities
Joint Ventures between Private Business and Government
Increased Emphasis on Prevention, Not Just Reusing
More Companies Will Design Integrated Reverse Logistics Systems
Summary
Hot Topics in the Supply Chain, Reshoring: Revisiting the Make or Buy Decision
REASONS FOR RESHORING
THE BIG PICTURE
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
Section IV Need for Integration
11 The Need to Integrate
Expected Outcomes
Company Profile: Cisco
Company Profile: Cisco
HISTORY OF COMPANY
FIGURE 11.1 Cisco sales.
MARKETS
PRODUCTS
TABLE 11.1 Cisco Markets
TABLE 11.2 2012 Net Sales by Product Groups
SUPPLY CHAIN STRUCTURE
RISK MANAGEMENT
CONCLUSION
REFERENCES
Introduction*
Setting the Stage *
Reasons to Integrate
Research in Support of Integration Efforts
From Mass Production to Mass Customization
From Craft to Mass Production
Prelude to Mass Customization
TABLE 11.3 Examples of Movement toward Mass Customization
From Vertical Integration to Virtual Integration
From Homogeneous Cultures to Diverse Cultures
From Bottom Line to Triple Bottom Line
Drivers of Change
Global Competition
Global Markets
Economic Advantage
Lower Costs
Higher Revenues
Relationships and Trust among Supply Chain Participants
Trust between Individuals
Formal Contracts or Agreements
Common Interests or Projects (Enforced Trust)
Involves Change Management
Change Is Difficult within a Company
Embedded Culture
Policies and Procedures
Organization Structure
Customer Relationships
Supplier Relationships
Union Relationships
Change Is More Difficult for a Community
Company–Community Relationship
Difficulty in Changing Laws and Regulations
Difficulty in Changing Infrastructure
Change Is Most Difficult for an Entire Country
Political Implications
Regional Differences
Steps in the Integration Process
Build Interfaces with Customers and Suppliers
Change Interfaces to Interlaces to Make the Relationships Closer
Change Interlaces to Integrated Relationships
Need for Strategic Planning
Categories of Operations
Normal Operations
Improvement Programs
Problem-Solving Programs
Crisis Management
Need for a Multiyear Project Plan
Performance Measurement across the Supply Chain
Integration Requires Sharing
Summary
Hot Topic: AECL, Part 1
Hot Topics in the Supply Chain: Atomic Energy Canada Limited Encounters Problems with Its Cancer-Fighting Machine, Part 1
BACKGROUND
FIGURE 11.2 Information asymmetry along the supply chain.
PROBLEM OF INFORMATION ASYMMETRY
QUESTIONS FOR DISCUSSION
REFERENCES
Discussion Questions
References
12 Why Integration Is Difficult
Learning Outcomes
Company Profile: Boeing
Company Profile: Boeing
INTRODUCTION
HISTORY
TABLE 12.1 Boeing Aircraft over the Years
TABLE 12.2 Revenues and Earnings by Business Segment
TABLE 12.3 Number of Airplanes Delivered by Model
DESCRIPTION OF DREAMLINER
DESCRIPTION OF 787 SUPPLY CHAIN
DIFFICULTIES
OUTLOOK
CONCLUSIONS
REFERENCES
Introduction
Determining Strategic Objectives
Evaluating the Potential Return on Investment
Uncertainty of Benefits
Tangible or Direct
Intangible or Indirect
Uncertainty of Costs
Product Costs
Support (Overhead) Costs
Uncertainty of Assets Employed
Designing for Participant Differences
Participants Are Not Equal
Commitment
Contribution
Different Roles: Drivers and Followers
Technical Differences
Size
Proximity
Type of Operation
Need for Multiple Supply Chains
Different Customer Segments
Different Supplier Segments
FIGURE 12.1 Examples of inventory locations in different supply chain strategies.
FIGURE 12.2 Multiple supply chains for Manufacturer 1.
Different Logistics Networks
Separating Interwoven Networks
Selecting and Implementing Technology
Product and Service Processes
Remove Barriers
Eliminate Redundancy
Develop Compatible Processes
Strive for Effectiveness and Efficiency
Incomplete Interorganizational Systems
Lack of Systems Compatibility
Lack of Information
Lack of a System
Financial Funds Flow
Realigning Infrastructure
Internal Organization
Effect of Outsourcing Movement
External Organization
Policies and Procedures
Physical Infrastructure
Transforming Company Cultures
Internal
External
Building Relationships
Communicate
Coordinate
Cooperate
Collaborate*
Lack of Trust Inhibits Collaboration
Measuring Performance
Maintaining the System
During the Implementation Process
During the Operation of the Supply Chain
Extension into Reverse Logistics
Obstacles to International SCM
Summary
Hot Topics in the Supply Chain: Atomic Energy Canada Limited Encounters Problems with Its Cancer Fighting Machine (Part 2)
BACKGROUND
POTENTIAL OBSTACLES TO INTEGRATION
TABLE 12.4 Overview of the Accidents
Questions for Discussion
REFERENCES
Discussion Questions
References
13 How to Build an Integrated Supply Chain
Learning Outcomes
Company Profile: Interface, Inc.
INTRODUCTION
HISTORY
PRODUCTS
GLOBAL MARKETS
TABLE 13.1 2012 Sales and Assets Deployed (Millions of Dollars)
SUPPLY CHAIN
REVERSE SUPPLY CHAIN
SUSTAINABILITY
COOL CARPET™
CONCLUSIONS
REFERENCES
Introduction
Who Manages the Supply Chain?*
Past and Future of Supply Chain Management
FIGURE 13.1 Tightly linked or controlled supply chain under one major participant.
FIGURE 13.2 Loosely coupled supply chain with aligned direction through collaborative links throughout.
Present Supply Chains
FIGURE 13.3 Loosely linked supply chains without direct route to ultimate consumer.
Virtual Supply Chains
Contractual Alliances
Dominant Party Management
Third-Party Direct Management
Third-Party Indirect (Third-Party) Management
World of Lean Production*
Product
Purchasing Process
Production Process
Delivery Process
Demand Variation
Moving from Functional Focus to Cross-Enterprise Collaboration
Comprehensive Supply Chain Model
FIGURE 13.4 Transition to an integrated supply chain.
Decisions Needed to Achieve a Lean and Agile Supply Chain
Commitment
Concept
Configuration
Top Management
Marketing
TABLE 13.2 Supply Chain Basics for Top Management
TABLE 13.3 Supply Chain Basics for Marketing
Purchasing
TABLE 13.4 Supply Chain Basics for Purchasing
Manufacturing
Distribution
Finance and Accounting
TABLE 13.5 Supply Chain Basics for Manufacturing
TABLE 13.6 Supply Chain Basics for the Distribution Function
TABLE 13.7 Supply Chain Basics for the Finance and Accounting Functions
Communication
Culture
Customization
Integrated Supply Chain
Coordination
Cooperation
Collaboration
MANAGERIAL COMMENT 13.1 BEATING IMPOSSIBLE DEADLINES
PROGRAMS
Quick Response Systems
Continuous Replenishment Programs
Efficient Consumer Response
Vendor-Managed Inventory
Collaborative Planning, Forecasting, and Replenishment
PRESENT STATUS
FUTURE
MANAGERIAL COMMENT 13.2 TRUST
Steps in the Change Process
Investigate
Involve
Include
Initiate
Invigorate
Implement
Integrate
Institutionalize
Innovate
A Look Ahead
Complexity
Clairvoyance
MANAGERIAL COMMENT 13.3 Implications for the Left Hemisphere
LEFT-BRAIN THINKING
Summary
Hot Topics in the Supply Chain: Atomic Energy Canada Limited Encounters Problems with its Cancer-Fighting Machine (Part 3)
SUPPLY CHAIN DURING A CRISIS
INVESTIGATING THE CAUSE OF THE ACCIDENTS
REALITY OF SOFTWARE BUGS
CONCLUSION
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
Section V Financial and Information Technology Perspectives
14 Information Flow along the Supply Chain
Learning Outcomes
Company Profile
Company Profile: SAP
INTRODUCTION
HISTORY
TABLE 14.1 Key Milestones in the History of SAP AG
PRODUCTS AND SERVICES
TABLE 14.2 Total Revenue by Region (in Millions of Euros)
Applications
Analytics
Cloud
Mobile
Database and Technology
SOLUTIONS FOR LINES OF BUSINESS
SOLUTIONS FOR INDUSTRIES
TABLE 14.3 Revenue by Industry Group
SUPPLY CHAIN INFORMATION
EXTERNAL APPLICATIONS
CONCLUSIONS
TABLE 14.4 SAP Sustainability Measures for the Past 5 Years
REFERENCES
Introduction
Need for Information Flow
FIGURE 14.1 Input–transformation–output–customer (ITOC) model.
Types of Information Transmitted
Upstream Suppliers
Midstream (Internal)
Downstream Customers
Reverse Supply Chain
Supply Chain Connectivity
FIGURE 14.2 Supply chain ITs.
Intracompany Technologies Used
Data Capture and Communication
Computer-Aided Design
Point-of-Sale Terminals
Automatic Identification Systems
Groupware
Data Storage and Retrieval
Data Manipulation and Reporting
Supply Chain Direct Links
Customer Relationship Management
Supplier Relationship Management
Linking Technologies
Interorganizational Systems
EDI and Internet EDI
Linking Applications
Videoconferencing
Sales and Operations Planning
Product Life Cycle Management
Third-Party Services
Service-Oriented Architecture
Software as a Service
Cloud Computing
Benefits of Information Technologies
Tangible Benefits
Increase Revenues
Reduce Product Costs
Reduce Transaction Costs
Reduce Product Development Lead Time
Reduce Capital Investment Costs
Intangible Benefits
Improve Customer Relations
Improve Decision Making
Streamline Administrative Processes
Integrate Company Planning and Execution
Barriers to IT Adoption
Technological Obstacles
Standards Interoperability
Back-End Interoperability
Scope of Applications
Security
Managerial Obstacles
Power Structure
Trust
Economic Issues
Employee Acceptance
Societal Obstacles
Model of an Integrated Supply Chain Information System
FIGURE 14.3 An integrated supply chain information system model.
Summary
Hot Topic
Hot Topics—The Boeing 787: A New Supply Chain Model in the Commercial Aircraft Industry—Part 1
HOW THE BOEING 787 SUPPLY CHAIN IS DIFFERENT
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
15 Funds Flow along the Supply Chain
Learning Outcomes
Company Profile: Wells Fargo
Company Profile: Wells Fargo
INTRODUCTION
BENEFITS OF IMPROVED FUNDS FLOW
WAYS TO IMPROVE
SUPPLY CHAIN FINANCE
SUPPLY CHAIN FINANCE AT WELLS FARGO
SUMMARY
REFERENCES
Overview of the Flow of Funds
FIGURE 15.1 Supply chain flows—products, information, and funds.
Need for Cash Flow within a Company
Supply Chain Funds Flow*
Flows in a Supply Chain
Benefits of Improved Funds Flow
Obstacles
External Sources of Funds
Banks and Other Lending Institutions
Supply Chain Finance
Performance Measurement
Financial Accounting Measures: Current Ratio
Management Accounting Measures
FIGURE 15.2 Cash flow cycles.
Need for Finance and Operations to Collaborate
Effect of Production Strategies on Funds Flow
FIGURE 15.3 Effect of production strategies on inventory.
Effect of Outsourcing on Product Costs and Capital Requirements
Interorganizational Systems*
Benefits
Obstacles
Evolution
Future
EDI*
Benefits
Funds Flow in the Reverse Supply Chain
Comprehensive Example*
Components of a Financial Statement
Analyzing the Cash Flow Statement
FIGURE 15.4 Cash flow links between income statement and changes in balance sheets.
Looking at Alternatives
TABLE 15.1 Net Work Capital Forecasts
TABLE 15.2 Actions to Improve Working Capital Management
Summary
Hot Topic: Boeing 787 Dreamliner
Hot Topics in the Supply Chain: The Boeing 787, Problems in the Supply Chain (Part 2)
PROBLEMS IN THE SUPPLY CHAIN
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
REFERENCES
16 ROI for Supply Chains and Other Issues
Learning Outcomes
Company Profile: Apple
Company Profile: Apple
INTRODUCTION
TABLE 16.1 Views of Supply Chains from Jobs and Cook
APPLE’s RANKING AS A SUPPLY CHAIN COMPANY
SUPPORTING EVIDENCE
TABLE 16.2 Apple Management Performance Measures
SEGMENT SALES
TABLE 16.3 Sales by Market Area
TABLE 16.4 Sales by Product Segment
WHY APPLE MUST MANAGE THEIR SUPPLY CHAINS
OBSTACLES OR PROBLEMS
CONCLUSIONS
REFERENCES
Supply Chain Configurations
FIGURE 16.1 Loosely linked supply chains without direct route to ultimate consumer.
Programs Requiring Close Supply Chain Relationships*
Need to Evaluate Supply Chain ROI
Tangible Benefits
Reduced Inventory
Reduced Cycle Times
Improved Customer Service
Improved Quality
Tangible Costs
Communications
Retraining Internal Employees
Restructure Supplier Network
Design Customer Network
Capital Investment
Indirect Costs
Meetings Required to Organize Customer and Supplier Relationships
Programs to Change Internal Culture
Changes in Organization Structure
Realignment of Roles of Supply Chain Participants
Intangible Benefits
Integrated Flow of Goods and Services
Faster Resolution of Problems
Match Customer Wants with Products Provided
Reduced Excess Capacity along the Supply Chain
Increased Knowledge
Reduced Risk of Supply Chain Disruption
Intangible Costs
Loss of Confidential Information
Increased Awareness of Inequitable Treatment among Participants
Discrepancy between Contribution and Payoff among Participants
Legal Actions
Obstacles to Equitable Distribution among Members
How to Organize?
How to Distribute?
Supply Chain Governance Models
TABLE 16.5 Supply Chain Governance Categories
Prime Mover in the Supply Chain
Organize
Select the Team
Monitor Ongoing Operations
Evaluate Performance
Initiate Change
Third-Party Provider
Changes in Supply Chain Composition
Dictated by Prime Mover
Consensus of the Supply Chain Participants
Consultation with an Outside Adviser
Mediation by Third Party
Legal Action
Case Studies
Use of Accounting Records
RFID Implementation
Cost Reductions with Investment Requirements
Supply Chain Finance
Benefits of Supply Chain Collaboration
Summary
Hot Topic
Hot Topics in the Supply Chain: The Boeing 787, Pushing the Limits of Outsourcing (Part 3)
LOSS OF INTELLECTUAL CAPITAL
FORMER SUPPLIERS MAY BECOME COMPETITORS
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
REFERENCES
Section VI The Future
17 Trends in Supply Chain Management
Learning Outcomes
Company Profile: Amazon
Company Profile: Amazon.com
OVERVIEW
TABLE 17.1 Amazon Sales, Income, and Cash Flow for 2007–2013
TABLE 17.2 Operating Expenses by Type for 2009–2013
RETAILING: PRODUCTS AND SERVICES
DISTRIBUTION (FULFILLMENT CENTERS)
MANUFACTURING (KINDLE)
ORIGINATION (BOOK AUTHORS)
SERVICES
SUMMARY
REFERENCES
From the Past to the Present
From the American Revolution to World War II
From World War II until the Present
Evolution of Critical Success Factors in the United States*
TABLE 17.3 Evolution of CSFs in the United States
Beginning (from First Settlements through 1800)
Industrial Revolution (1840s–1890s)
Growth and Recovery (1890s–1930s)
Mass Production (1940s–1950s)
Arisings (1960s–1970s)
Awakening (1980s)
Globalization I (1990s)
Globalization II and Mass Customization (2000 and after)
Major Drivers of Change in Supply Chains
Global Business Perspective
Balanced Approach to Offshore Outsourcing
Total Cost of Ownership
Risk Management
Other Issues
Continuing Advances in Technology
Retail Operations
Demand Forecasting
Transportation and Distribution
Information Systems
From Special-Purpose to General-Purpose Resources
Evolution from Transactions to Processes*
Transactions versus Processes
Benefits of a Process Orientation
Vanishing Boundaries between Manufacturing and Services
Infrastructure Refinements
From Vertical to Horizontal Organizations*
From Rigid Rules to Flexible Policies and Procedures
From Tacit Knowledge to Implicit Knowledge
From Financial Accounting to Management Accounting
Culture and Employees
From Passive or Obstructing Culture to Engaged and Receptive Culture
Employees: From Specialized to Empowered
TABLE 17.4 Changes in the Nature of Manufacturing Tasks
TABLE 17.5 Changes in Required Skills for Manufacturing Personnel
Supply Chain Relationships
From Adversarial to Collaborative
Trust and Distrust
TABLE 17.6 Trust versus Distrust
Emergence of Third-Party Supply Chain Coordinators
Risk Management*
Increased Complexity and Risk
TABLE 17.7 Comparison of Risk Management Paradigms
FIGURE 17.1 Risk frequency versus severity.
Internal Risks
External (Open System Environment) Influences
Natural Disasters
TABLE 17.8 Number of Major Disasters
Sustainability*
Triple Bottom Line
Beyond the Triple Bottom Line
Why Should Business Take the Lead?
Need for Alliances
Benefits and Obstacles
Sustainability in the Future
Strategic Employee Plan
Summary
Hot Topic
Hot Topics in the Supply Chain: Finding Solutions to the Sweatshop Problem
Background
Recommendations
MNCs Will Need to Take a Long-Term View toward Their Suppliers
MNCs Will Need to Commit Resources to Improve Their First-Tier Suppliers in Developing Countries
QUESTIONS FOR RESEARCH AND DISCUSSION
REFERENCES
Discussion Questions
References
18 Preparation for the Future
Learning Outcomes
Company Profile
Company Profile: Google
REVENUE
TABLE 18.1 Comparison of Big Tech Companies at Age 15
FINANCIAL RESULTS
MAJOR BUSINESS SEGMENTS (FROM THE 2012 10-K REPORT)
Google Search
Advertising
TABLE 18.2 Google Income and Cash Flow Results (2009–2013)
Operating Systems and Platforms
TABLE 18.3 Comparison of Key Financial Results for Google (2009–2013)
Enterprise
Motorola
SWOT ANALYSIS
GOOGLE LOCATIONS
OTHER INTERESTS
Google Glass
Driverless Car
SUMMARY
References
Recognize the Need to Adapt
Globalization
Competition
Economy
Technology
Customers
Employees
Develop New Measures of Success
Financial Success
Social Responsibility
Environment
Integrating Financial Results, Society Equity, and Sustainability
Identify What Needs to Be Done
APICS E&R Foundation Inc.
TABLE 18.4 Gaps in Implementing Global Supply Chain Integration
McKinsey Study
TABLE 18.5 Challenges for Future Supply Chains
University of Tennessee
Adapt to Government Actions
Environment
Business Ethics
Product Safety
Social Equity
Infrastructure
Capitalize on Third-Party Skills
Direct Support: Outsourcing
Indirect Support: Financing and Insurance
Advisory: Consulting and Training
Analyst: Measure Performance and Identify Needs
Manager: Virtual Holding Company
Utilize Information Technology
Enterprise Resource Planning Extension
Service-Oriented Architecture
Internet Processes
Interorganizational Systems
Take Advantage of Other Technologies
Organization and Teams
Project Management
Process Technology
Build Strategic and Operational Plans
Continue the Drive for Collaboration
Develop Performance Measures for Supply Chain Management
Integrate Delivery Effectiveness Measures
Integrate Cost and Quality Measures
Supplier Profitability
Effectiveness of Supply Chain Integration
Structure the Organization to Manage Change
Purchasing
Integrate All Functions
Educate the Work Force
Increase Marketing Influence
Overcome Inertia
Expand Knowledge Management*
From Data to Information
From Information to Knowledge
FIGURE 18.1 The knowledge corridor.
From Knowledge to Wisdom
Some Ways to Learn
Obstacles to Knowledge Transfer
Will Knowledge Replace “Things”?
Acquire Data Analytics Capabilities*
Background
Benefits
Obstacles
Applications
Techniques
Conclusions
Integrate Manufacturing and Services
Apply Chaos Theory to Business
Summary
Hot Topic
Hot Topics in the Supply Chain: How Social Media Knocked Down the Lean Finely Textured Beef Industry
BACKGROUND
TROUBLE BREWING
References
Questions for Discussion
Discussion Questions
References
Back Matter
Index
People also search for Principles of Supply Chain Management 2nd Edition :
fundamental principles of supply chain management
principles of supply chain management a balanced approach 6th edition
fundamental principles of supply chain management textbook pdf
7 principles of supply chain management pdf
principles of supply chain management a balanced approach pdf
Reviews
There are no reviews yet.