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The Essentials of Supply Chain Management: New Business Concepts and Applications

Book Description

This is today's indispensable introduction to supply chain management for today's students and tomorrow's managers – not yesterday's! Prof. Hokey Min focuses on modern business strategies and applications – transcending obsolete logistics- and purchasing-driven approaches still found in many competitive books.

Focusing on outcomes throughout, The Essentials of Supply Chain Management shows how to achieve continuous organizational success by applying modern supply chain concepts. Reflecting his extensive recent experience working with leading executives and managers, Min teaches highly-effective methods for supply chain thinking and problem-solving. You'll master an integrated Total System Approach that places functions like inventory control and transportation squarely in context, helping you smoothly integrate internal and external functions, and establish effective inter-firm cooperation and strategic alliances across complex supply chains. Coverage includes:

  • Understanding modern sourcing, logistics, operations, sales, and marketing – and how they fit together

  • Using modern supply chain methods to improve customer satisfaction and quality

  • Working with cutting-edge supply chain technology and metrics

  • Moving towards greater sustainability and more effective risk management

  • Working with core analytical tools to evaluate supply chain practices and measure performance

  • Legal, ethical, cultural, and environmental/sustainability aspects of modern supply chain operations

  • How to build a career in global supply chain management

  • The Essentials of Supply Chain Management will be an indispensable resource for all graduate and undergraduate students in supply chain management, and for every practitioner pursuing professional certification or executive education in the field.

    Table of Contents

    1. About This eBook
    2. Title Page
    3. Copyright Page
    4. Dedication Page
    5. Contents
    6. Acknowledgments
    7. About the Author
    8. 1. Principles of Supply Chain Management
      1. Learning Objectives
      2. Evolution of the Supply Chain Concept
      3. Total Systems Approach and Boundary Spanning
      4. Conceptual Foundations of Demand Chain, Value Chain, and Supply Chain
      5. Strategic Alliances and Partnerships
        1. The Type of a Supply Chain Partnership
        2. The Structural Dimensions of the Supply Chain
        3. The Characteristics of Supply Chain Links
        4. Supply Chain Drivers
      6. Organizational Learning from Strategic Alliances
      7. Interfaces among Purchasing, Production, Logistics, and Marketing
      8. Theory of Constraints (TOC) for Supply Chain Management
      9. Change Management for Supply Chain Management
      10. Chapter Summary
      11. Study Questions
      12. Zara’s Rapid Rise as a Cool Supply Chain Icon
        1. New Heights in the Fashion Industry
        2. Zara’s Cool Supply Chain Practices
        3. Supply Chain Vulnerability
        4. New Directions
      13. Bibliography
    9. 2. Supply Chain Strategy: The Big Picture
      1. Learning Objectives
      2. Strategic Dimensions
      3. Red Ocean versus Blue Ocean Strategy
      4. Strategic Supply Chain Planning Processes
      5. Strategic Integration of Supply Chain Processes
      6. The “Victory” (Winning Strategy) Model
      7. Push versus Pull Strategy
      8. Typology of Supply Chain Strategy
      9. Internal Supply Chain Strategy Audits
      10. External Supply Chain Strategy Audits
      11. Chapter Summary
      12. Study Questions
      13. Case: Dell, Inc.—Push or Pull?
        1. The Brief History of Dell’s Postponement Strategy
        2. Supply Chain Strategy
        3. Changing Times
      14. Bibliography
    10. 3. Customer Service: The Ultimate Goal of Supply Chain Management
      1. Learning Objectives
      2. Understanding Customer Expectations and Perceptions
      3. Customer Service Elements
      4. Building Customer Relationships
        1. Customer Segmentation
        2. Customer Acquisition
        3. Customer Retention
        4. Customer Communication and Education
        5. Customer Selection
        6. A Measure of Customer Relationship Management (CRM) Success
      5. Service Delivery Performance
        1. Service Audits
        2. Service Standards
        3. Service Quality
        4. Service Gaps
        5. Service Benchmarks
      6. Formulating a Winning Customer Service Strategy in a Supply Chain
      7. Chapter Summary
      8. Study Questions
      9. Case: Shiny Glass, Inc.
        1. Logistics Network
        2. The Antiquated Order Processing System
        3. Discussion Questions
      10. Bibliography
    11. 4. Demand Planning and Forecasting
      1. Learning Objectives
      2. Demand Management
        1. Demand Planning
        2. Communicating Demand
        3. Influencing Demand
        4. Prioritizing Demand
      3. Demand Forecasting
        1. Exponential Smoothing
        2. Moving Average
        3. Trend Analysis
        4. Advanced Forecasting Techniques
        5. Selection of the Right Forecasting Method
      4. Sales and Operational Planning
      5. Collaborative Commerce
        1. Efficient Consumer Response
        2. Collaborative Planning, Forecasting, and Replenishment
      6. The Bullwhip Effect
        1. Potential Causes of the Bullwhip Effect
      7. Chapter Summary
      8. Study Questions
      9. Case: Seven Star Electronics: Demand Planning
        1. Fierce Competition
        2. Tricky Demand Planning
        3. Instant Lesson
        4. Discussion Questions
      10. Bibliography
    12. 5. Inventory Control and Planning
      1. Learning Objectives
      2. The Principles of Inventory Management
      3. Functions of Inventory
      4. Types of Inventory
      5. Inventory Classification
        1. Critical Value Analysis
        2. ABC Inventory Analysis
      6. Independent Demand Inventory Control and Planning
        1. Economic Order Quantity Model
        2. Quantity Discount Model
        3. Quantity and Freight Discount Model
        4. Risk Pooling Model
      7. Dependent Demand Inventory Control and Planning
        1. The MRP Calculation Process
        2. Example of MRP
        3. Pros and Cons of MRP
      8. Distribution Resource Planning
        1. Example of DRP
        2. DRP Functionality and Benefits
      9. Just-In-Time Inventory Principles
      10. Basics of Cycle Counting
      11. Vendor Managed Inventory
      12. Chapter Summary
      13. Study Questions
      14. Case: Sandusky Winery
        1. Out of Space
        2. An Overwhelming Sense of Déjà Vu
        3. Discussion Questions
      15. Bibliography
    13. 6. Warehousing
      1. Learning Objectives
      2. Warehouses in Transition
      3. Types of Warehouses
        1. Pros and Cons of Private Warehousing
        2. Pros and Cons of Public Warehousing
      4. Types of Warehouse Leases
      5. Warehousing Costs
      6. Warehouse Network Design
        1. Warehouse Centralization Strategy
        2. Warehouse Decentralization Strategy
        3. Profile Analysis for a Warehouse Network Design
      7. Warehouse Layout
        1. U-Shaped Flow
        2. Straight-Thru Design
        3. Modular-Spine Design
        4. Multistory Design
      8. Warehouse Asset Management
      9. Material Handling
      10. Order Picking
      11. Warehouse Productivity
      12. Warehouse Security and Safety
      13. Warehouse Automation
      14. Warehouse Workforce Planning
      15. Warehouse Management Systems
        1. Key Features of the Warehouse Management System
        2. Integration of WMS with Other Supply Chain Execution Systems
      16. Handling Returned Products and Reverse Logistics
        1. Types of Returns
        2. Returns Management Strategy
      17. Chapter Summary
      18. Study Questions
      19. Case: One Bad Apple and Thousands of Headaches
        1. First Week of the Work
        2. Trouble-Maker
        3. Stirring the Pot
        4. Discussion Questions
      20. Bibliography
    14. 7. Transportation Planning
      1. Learning Objectives
      2. Transportation as a Vital Link in the Supply Chain
      3. Central Place Theory
      4. Transportation Regulations and Deregulations
        1. Historical Backgrounds of Transportation Regulations
        2. Landmark Deregulatory Acts and Their Impact on the Transportation Industry
        3. Hours of Service Regulations
      5. Legal Forms of Transportation
      6. Carrier Management
      7. Surface Transportation
      8. Water Carriers
      9. Air Carriers
      10. Intermodalism
      11. Transportation Documentation
      12. Transportation Pricing
      13. Freight Rate Negotiation
      14. Revenue/Yield Management
      15. Transport Management Systems
      16. Terminal Operations
      17. Chapter Summary
      18. Study Questions
      19. Case: Louis Cab On Demand
        1. Limited Public Transportation
        2. Service Dilemma
        3. New Breed of Taxi Services
        4. Discussion Questions
      20. Bibliography
    15. 8. Sourcing
      1. Learning Objectives
      2. In-Housing versus Outsourcing
      3. Principles of Outsourcing
      4. Cost Analysis
        1. Traditional Costing
        2. Total Cost of Ownership
        3. Activity-Based Costing
        4. Life Cycle Costing
      5. Value Analysis
      6. What Should Be Sourced
      7. Who Can Be Supply Sources
        1. Discovery of Potential Supply Sources
        2. Inquiry of Potential Supply Sources
        3. Supplier Evaluation
        4. Supplier Selection
        5. How to Split Orders
        6. Supply Base Reduction
        7. Supplier Certification
        8. Supplier Diversity
      8. Supplier Relationship Management
      9. Intermediaries for Sourcing
      10. Supply Risk Management
      11. Competitive Bidding versus Negotiation
      12. Global Sourcing
      13. E-purchasing and Auctions
      14. Chapter Summary
      15. Study Questions
      16. Case: Lucas Construction, Inc.
        1. A Need for Global Sourcing
        2. Quality Failure at the Source
        3. Urgent Plan B
        4. Discussion Questions
      17. Bibliography
    16. 9. Logistics Intermediaries
      1. Learning Objectives
      2. The Role of Intermediaries
      3. Types of Intermediaries
        1. Freight Forwarder
        2. Overseas Distributor
        3. Non-Vessel-Operating Common Carrier (NVOCC)
        4. Shipping Agent
        5. Container Leasing Company
        6. Customs (House) Broker
        7. Export Packer
        8. Export Management Company
        9. Export Trading Company
        10. Third-party Logistics Service Provider (3PL)
        11. Fourth-party Logistics Service Provider (4PL)
      4. Potential Challenges for Using Logistics Intermediaries
      5. 3PL Market Trends
      6. Chapter Summary
      7. Study Questions
      8. Case: Falcon Supply Chain Solutions
        1. Global Presence
        2. Supply Chain Visibility through Information Technology
        3. Management Challenges
        4. Discussion Questions
      9. Bibliography
    17. 10. Global Supply Chain Management
      1. Learning Objectives
      2. The Impact of the Free Trade Movement on Global Supply Chain Management
      3. Global Market Penetration Strategy of Multinational Firms
      4. Strategic Alliances among Multinational Firms
      5. Global Outsourcing Trends
      6. Hidden Inhibitors Affecting Global Supply Chain Operations
        1. Effects of Foreign Exchange Fluctuations on Global Supply Chain Operations
        2. Effects of Terrorism on Global Logistics
        3. Impacts of Maritime Piracy on Global Shipping
        4. Impacts of Natural Disasters on Global Supply Chain Operations
      7. Managing International Distribution Channels
      8. Foreign Trade Zones and Free Trade Zones
      9. Import and Export Documentation
      10. Incoterms and International Payments
      11. Countertrade
      12. Transfer Pricing
      13. Cross-Cultural Negotiations
      14. Chapter Summary
      15. Study Questions
      16. Case: Aurora Jewelers
        1. Impeccable Reputation
        2. Global Sourcing
        3. Supply Chain Headache
        4. Management Tasks at Hand
        5. Discussion Questions
      17. Bibliography
    18. 11. Legally, Ethically, and Socially Responsible Supply Chain Practices
      1. Learning Objectives
      2. Triple Bottom Line
      3. Types of Laws
      4. Laws Applicable and Relevant to Supply Chain Activities
      5. Disputes and Claim Resolutions
      6. Supply Chain Ethics
        1. Bribery versus Gift (Gratuity)
        2. Fraud
        3. Conflicts of Interest
        4. Confidentiality
        5. Reciprocity
        6. Concealed Damage
        7. Foreign Corrupt Practice Act
      7. Green Supply Chain Management
        1. Life Cycle Assessment
        2. Compliance with Environmental Regulations
        3. ISO 14000 Standards
        4. Environmental Audits
      8. Chapter Summary
      9. Study Questions
      10. Case: Jumping Footwear, Inc.
        1. Results-Only Work Environments (ROWE)
        2. Painful Decisions in Waiting
        3. Discussion Questions
      11. Bibliography
    19. 12. Measuring the Supply Chain Performance
      1. Learning Objectives
      2. Supply Chain Performance and Its Impact on the Bottom Line
      3. Supply Chain Performance Metrics
      4. Key Performance Indicators (KPIs)
      5. A Balanced Scorecard for Supply Chain Performance Measurement
      6. The Supply Chain Operations Reference (SCOR) Model
      7. Other Performance Tools
      8. Chapter Summary
      9. Study Questions
      10. Case: La Bamba Bakeries
        1. Key Discussion Questions
      11. Bibliography
    20. 13. Emerging Technology in Supply Chain Management
      1. Learning Objectives
      2. The Emergence of E-commerce
      3. Enterprise Resource Planning (ERP)
      4. Geographic Information System (GIS)
      5. Intelligent Transportation Systems
      6. Barcoding Systems
      7. Radio Frequency Identification (RFID)
      8. Artificial Intelligence
      9. Information Technology (IT) Project Management
      10. Future Trends of IT in Global Commerce
        1. Open Collaboration through Cloud Computing
        2. Conversation Economy via Online Social Networking Media
        3. Mobile Commerce in Ubiquitous Environments
        4. Multitasking Using Smartphones
        5. Drone (Unmanned Aerial Vehicle) Technology
      11. Chapter Summary
      12. Study Questions
      13. Case: Red-Kitchen.com
        1. Selling Food Online
        2. E-logistics Challenges
        3. Technology as the Selling Point
        4. Key Discussion Questions
      14. Bibliography
    21. Index