Principles of Supply Chain Management

Principles of Supply Chain Management

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Series: Resource 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. Providing the logic behind why supply chain management is essential, the text examines how supply chains are evolving, looks ahead to future developments, and also provides a balanced look at supply chains with a focus on where it needs to be—the customer. It also:

  • Describes the forward supply chain (from the supplier to the customer) and the reverse supply chain (recycling)
  • Reviews contemporary sustainability concepts including triple bottom line, cradle-to-grave, and cradle-to-cradle
  • Includes extensive discussions on retailing, distribution, and manufacturing topics
  • Details supply chain flows of physical goods, information, and funds
  • Highlights the need for coordinated change in technology, infrastructure, and cultures among supply chain members

From the point of distribution all the way back to the point of origin, the text provides examples and case histories that illustrates a proven approach for achieving effective supply chain integration. This self-contained resource provides readers with a realistic appraisal of the state of the art in supply chain management and the understanding needed to build and manage effective supply chains in a wide-range of industries. Most importantly, it emphasizes the need for building and maintaining cooperation and collaboration among all members of the supply chain.

Table of Contents

OVERVIEW OF SUPPLY CHAIN MANAGEMENT

Evolution of Supply Chains

Learning Outcomes

What Is a Supply Chain?

Importance of SCM

Evolution of Supply Chains

Changing Government Orientation

Current Trends That Link Supply Chain Participants More Closely

Current Developments in SCM

Obstacles to Supply Chain Integration

Examples of Companies with Successful Supply Chains

Progress toward an Integrated Supply Chain

Supply Chain Models

Supply Chains as a System

Learning Outcomes

Introduction

Supply Chain Systems

Types of Supply Chains

Examples of Supply Chains in Different Industries

Open Systems vs. Closed Systems

Effect of External Influences on Supply Chains

Obstacles and Enablers of Supply Chain Integration

Internal and External Customers

Open Systems vs. Closed Systems

Effect of External Influences on Supply Chains

Obstacles and Enablers of Supply Chain Integration

Performance Measurement

Allocation of Costs, Resources, and Benefits along the

Supply Chain

Value Creation as the Ultimate Objective

THE CUSTOMER PERSPECTIVE

Determining Customer Needs

Learning Outcomes

Introduction

Group Customers into Homogeneous Segments

Determine the Needs of the Ultimate Consumer

How Do You Accurately Determine Needs?

How Do You Forecast Demand?

Attributes of a Well-Designed Product

Product Design Approaches

Determine the Number of Supply Chains Needed within a Company

Performance Measurement

Determine the Needs of Internal Customers

A System to Meet Customer Needs

Learning Outcomes

What Is Customer Relationship Management?

Global Supply Chain Forum Model

How CRM Can Be Used to Design a Supply Chain?

Product Lifecycle Management

Supply Chain Mapping

Determining Resource Requirements

Designing Processes to Match with Products

Determining the Mix of "Make" and "Buy"

Aligning Entities along the Supply Chain

Evaluating the System Design

Demand Management

Learning Outcomes

Introduction

Definition of Demand Management

Importance of Demand Management

Managing Demand

Managing Supply

Merging Supply and Demand into a Demand Management Process

Demand Management in Manufacturing

Demand Management in Services

Proposed Demand Management Strategies

Factors That Affect the Selection of a Demand Management Strategy

Relationship between Factors and Strategies

Model for Integrating Demand and Supply Management

Programs Used to Implement Demand Management Strategies

Demand Management along the Supply Chain

THE SUPPLY PERSPECTIVE—DISTRIBUTION, PRODUCTION, AND PROCUREMENT

Distribution and Retailing

Learning Outcomes

Introduction

Retail Function

Designing the Retail Process

Managing a Retail Business

Retail and Inventory Management

Present Situation in Retailing

Future in Retailing

Role of Wholesalers and DCs

Critical Success Factors for Distribution

Inventory within Distribution Functions

Inventory Management between Retailer and Distributor

Technology in Distribution Functions

Positioning Services within the Distribution Functions

Predominant Delivery Methods

Third-Party Service Providers

Distribution Performance Measurement

Retailer–Distributor Relationship

Production and Service Processes

Learning Outcomes

Introduction

Evolution of the Production Function

Critical Success Factors for Manufacturers

Manufacturing Strategies

Batch to Lean Operations

Make or Buy Strategies

Capacity Planning

Service Production Strategies

Relationships with Downstream Customers

From Transactions to Processes

Trends in Production

Performance Measurement

Procurement/Purchasing

Learning Outcomes

Introduction

Role of Procurement in the Supply Chain

Traditional Purchasing

Contemporary Purchasing

Critical Success Factors for Procurement

Changing Role of Purchasing

Purchasing Functions

Purchasing at Different Stages of the Supply Chain

Dealing with Off shore Outsourcing

Performance Measurement

Future of Purchasing

Reverse Supply Chains

Learning Outcomes

Introduction

Description of Reverse Supply Chain Networks

Principal Drivers of the Movement

Activities in Reverse Logistics

Role of Private Industry

Role of Government

Role of Consumer

Reverse Logistics Network

Future

INTEGRATED SUPPLY CHAINS

The Need to Integrate

Expected Outcomes

Introduction

Setting the Stage

From Mass Production to Mass Customization

From Vertical Integration to Virtual Integration

From Homogeneous Cultures to Diverse Cultures

Drivers of Change

Involves Change Management

Steps in the Integration Process

Need for Strategic Planning

Need for a Multi-Year Project Plan

Performance Measurement across the Supply Chain

Integration Requires Sharing

Why Integration Is Difficult

Learning Outcomes

Introduction

Determining Strategic Objectives

Evaluating the Potential Return on Investment

Designing for Participant Differences

Need for Multiple Supply Chains

Selecting and Implementing Technology

Realigning Infrastructure

Transforming Company Cultures

Building Relationships

Measuring Performance

Maintaining the System

Obstacles to International SCM

How to Build an Integrated Supply Chain

Learning Outcomes

Introduction

Who Manages the Supply Chain?

The World of Lean Production

Stages in Moving from Functional-Focus to Cross-Enterprise

Collaboration

A Comprehensive Supply Chain Model

Decisions Needed to Achieve a Lean and Agile Supply Chain

Integrated Supply Chain

Steps in the Change Process

A Look Ahead

THE FINANCIAL AND INFORMATION TECHNOLOGY PERSPECTIVES

Information Flow along the Supply Chain

Learning Outcomes

Introduction

Need for Information Flow

Types of Information Transmitted

Intracompany Technologies Used

Supply Chain Direct Links

Linking Technologies

Linking Applications

Third-Party Services

Benefi ts of Information Technologies

Barriers to IT Adoption

Model of an Integrated Supply Chain Information System

Funds Flow along the Supply Chain

Learning Outcomes

Overview of the Flow of Funds

Need for Electronic Funds Flow

Benefi ts and Obstacles of Funds Flow in Supply Chains

Participants Other Th an Members of the Supply Chain

Performance Measurement

Eff ect of Production Strategies on Funds Flow

Technologies Used

New Concepts in Funds Flow

Funds Flow in the Reverse Supply Chain

A Comprehensive Example

ROI for Supply Chains and Other Issues

Learning Outcomes

Supply Chain Configurations

Programs Requiring Close Supply Chain Relationships

Need to Evaluate Supply Chain ROI

Tangible Costs

Indirect Costs

Cash Flow and Time Value of Money Considerations

Intangible Benefits

Intangible Costs

Plan for Equitable Distribution among Members

Role of Prime Mover in the Supply Chain

Changes in Supply Chain Composition

Case Studies

THE FUTURE

Trends in Supply Chain Development and Management

Learning Outcomes

From the Past to the Present

Evolution of Critical Success Factors in the United States

Major Drivers of Change in Supply Chains

Changes Needed in the Future

Global Business Perspective

Balanced Approach to Offshore Outsourcing

Continuing Changes in Technology

Vanishing Boundaries between Manufacturing and Services

Process Evolution from Transactions to Integrated

Infrastructure Refinements

Culture and Employees

Supply Chain Relationships

Preparation for the Future

Learning Outcomes

Recognize the Need to Adapt to Changing Conditions

Identify What Needs to Be Done

Summary of Challenges

Role of Government

Role of Third Parties

Future Technology—Information Technology Oriented

Build Strategic and Operational Plans

Continue the Drive for Collaboration

Develop Performance Measures for Supply Chain Management

Structure the Organization to Manage Change

Modify the Culture to Accept Change

Drive for Sustainability

Wisdom—Education and Training

Vanishing Boundaries between Manufacturing and Services

Application of Chaos Theory to Business

Index

Each chapter includes a Summary, Discussion Questions, & References

Author/Editor Biography

Richard E. "Dick" Crandall is a professor in the College of Business at Appalachian State University (ASU), Boone, North Carolina. He is a certified fellow in production and inventory management (CFPIM) and is also a certified supply chain professional (CSCP) by APICS—The Association for Operations Management. He received his PhD in production/operations management from the University of South Carolina, Columbia and is a registered professional engineer and a certified public accountant. Prior to joining ASU, Dick worked as an industrial engineer and in management positions for manufacturing and service companies. He was a consultant with a major consulting firm, installing systems for both operations and financial applications. With Rick Crandall, he coauthored the book New Methods of Competing in the Global Marketplace: Critical Success Factors from Service and Manufacturing, published in 2008 by CRC Press, Taylor & Francis.

William "Rick" Crandall currently serves as a professor of management at the University of North Carolina at Pembroke. He received his PhD in business administration with a focus on organizational behavior and human resource management from the University of Memphis, Tennessee. His primary research interest is in the area of crisis management, helping organizations cope with catastrophic events. He is the author of the new book, Crisis Management in the New Strategy Landscape (coauthored with John Parnell and John Spillan, also of the University of North Carolina at Pembroke), released by Sage Publications. He is also active in researching issues related to supply chain management. Prior to entering higher education, Dr. Crandall worked in management for ARA Services (now ARAMARK), a service management firm based in Philadelphia.

Charlie C. Chen was educated at Claremont Graduate University, California and received his PhD in management information systems. He is an associate professor in the Department of Computer Information Systems at Appalachian State University, Boone, North Carolina. His research interests include project management and supply chain management. He is a member of the Association for Information Systems and Decision Sciences Institute, and is certifi ed by the Project Management Institute as a project management professional (PMP). Dr. Chen has published in journals such as Communications of Association for Information Systems, Behaviour and Information Technology, Journal of Knowledge Management Research, Practice, and the Journal of Information Systems Education. Dr. Chen is a dedicated transnational scholar and is a trip leader for study-abroad programs in Asia.