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The Supply Chain Game Changers: Applications and Best Practices that are Shaping the Future of Supply Chain Management

Book Description


  • For all supply chain decision-makers, professionals, and students

  • Improve financial and operational performance

  • Manage risk and ensure continuity

  • Drive value through deeper integration

  • Optimize logistics cost and customer responsiveness

  • Hire and develop world-class talent

  • This book brings together advanced supply chain practices that yield significant, enduring business advantage. It reflects extensive collaboration between industry pioneers and The University of Tennessee Global Supply Chain Institute (GSCI), a leading source of best practice knowledge for global supply chain management.

    Building on GSCI’s deep industry partnerships, this book’s techniques take you far beyond the past decade’s advances. You’ll find new approaches to managing risk, integration, talent, distribution, purchasing, logistics, and more—all extensively vetted by leading executives. The authors fully explain each technique; its rationale, advantages, and challenges; and how pioneering organizations have implemented it.

    The world will look radically different in five years. If you want your supply chain to deliver competitive advantage tomorrow, you need to prepare today. This book shows you what to do, and how to get there.

    In recent years, practically everyone’s supply chain has become more sophisticated. To gain competitive advantage from your supply chain in the future, you’ll have to do even more. The Supply Chain Game Changers identifies powerful new ways to drive value in complex global supply chains, shows how pioneers are succeeding with these innovations, and helps you make them work in your environment. The authors first discuss ten trends impacting global supply chains today, and preview emerging drivers of change through 2025. Reflecting these changes, they share new best practices for managing global supply chains, evolving supply networks, and accounting for economics, politics, infrastructure, and competence.

    Next, the authors drill down to offer detailed guidance on several crucial aspects of supply chain management. You’ll discover new ways to identify, prioritize, and mitigate risk; balance cost and customer responsiveness through advanced distribution centers; integrate purchasing and logistics more effectively; and attract and develop world-class talent.

    The book concludes with the authors’ Top Ten actions for creating tomorrow’s world-class supplychain, practical tools for assessing where you stand,and detailed guidance for creating your new Action Plan.

    Manage tomorrow’s multiple threats to supply chain continuity

    Address the full spectrum of risks: from natural disasters to currency fluctuations to piracy

    Fix your supply chain’s hidden destroyer of value

    Overcome costly, damaging disconnects between purchasing and logistics

    Cut logistics costs and improve customer service at the same time

    Master high-value best practices, from picking/receiving to HR to sustainability

    Overcome the supply chain field’s deepening talent crisis

    Develop and retain future-focused industry leaders

    Table of Contents

    1. About This eBook
    2. Title Page
    3. Copyright Page
    4. Contents
    5. Foreword
    6. Acknowledgments
    7. About the Authors
    8. Introduction
    9. 1. Game-Changing Trends in Supply Chain Management
      1. First Annual Report by the Supply Chain Management Faculty at the University of Tennessee
      2. Introduction
      3. Customer Service to Customer Relationship Management
        1. Why Is This a Game-Changing Trend?
      4. Progress Made but More Needed
      5. Many Firms Still Operate With a Traditional Service Mindset
      6. From a High Level of Standard Service to Customized Service
      7. Multiple Supply Chain Configurations Are Required
      8. The Fallacy of Being All Things to All Customers
      9. Challenges of Prioritizing Service Levels
        1. Example
      10. Adversarial to Collaborative Relationships
        1. Why Is This a Game-Changing Trend?
        2. Encouraging Evidence of Collaboration
        3. A Three-Part Best-Practice Model
        4. Supply Chain Collaboration—Additional Key Success Factors
      11. Summary
      12. Incremental Change to a Transformational Agile Strategy
        1. Why Is This a Game-Changing Trend?
        2. Most Firms Lack an Agile Transformational Strategy
      13. Three Activities Needed to Be More Adaptive and Agile
      14. The Essence of Agile Strategies
        1. Alertness
        2. Accessibility
        3. Decisiveness
        4. Swiftness
      15. Agility in Practice
      16. An Agile Workforce Is Critical
      17. Summary
      18. Functional Focus to Process Integration: Cross-Functional Integration—Purchasing Through Logistics
        1. Why Is This a Game-Changing Trend?
        2. Deep Cross-Functional Integration Is Still a Major Challenge
        3. Why Companies Need to Change
        4. The Challenge: Business-Wide Cross-Functional Integration
        5. An Unrecognized Problem: Purchasing and Logistics Integration
        6. The Fallacy of Supply Chain Integration Between Purchasing and Logistics
        7. Step-by-Step Process for Integrating Purchasing and Logistics: Eight Steps
        8. The Benefits of Integrating Purchasing and Logistics
        9. Enablers of Cross-Functional Integration
      19. Summary
      20. Absolute Value for the Firm to Relative Value for Customers—World-Class Metrics
        1. Why Is This a Game-Changing Trend?
        2. Supplier and Customer-Segmented Metrics Can Be Powerful Tools
        3. Mandate for New Metrics
        4. Create the Right Cross-Functional Accountability
        5. Establish a Driver-Based Metrics Framework
        6. The Perfect Order Metrics Framework
        7. Set Appropriate Goals
        8. Ensure That Metrics Cannot Be Easily Gamed
        9. Example
      21. Summary
      22. Forecasting to Endcasting—Demand Management
        1. Why Is This a Game-Changing Trend?
        2. Improvement, But Still Short of Maturity
        3. The State of Forecasting Today
        4. Offshoring and Long Lead Times Increase Priority
        5. Internal Collaboration and S&OP
        6. Forecasting Versus Endcasting/Demand Management
        7. Example
      23. Summary
      24. Training to Knowledge-Based Learning—Talent Management
        1. Why Is This a Game-Changing Trend?
        2. Education Is Being Focused on Broad Goals of the Firm
        3. The Modern Supply Chain Executive
        4. Supply Chain as Part of the Executive Team
        5. The Critical Competencies of Top Supply Chain Talent
        6. Acquire the Best Talent
        7. From Training to Knowledge-Based Learning
      25. Summary
      26. Vertical Integration to Virtual Integration
        1. Why Is This a Game-Changing Trend?
        2. Leveraging the Expertise of Third-Party Suppliers
        3. The Benefits of Virtual Integration
        4. Supply Chain Disruptions are Common
        5. Virtual Integration of Goods: Outsourcing
        6. Virtual Integration of Services
        7. Current Trends and Implications
      27. Summary
      28. Information Hoarding to Information Sharing and Visibility
        1. Why Is This a Game-Changing Trend?
        2. Moderate Progress
        3. Enterprise Systems
        4. How Do We Move Forward From Here?
        5. The Supply Chain Network As a Social Organism
        6. Emerging Issues in Information Sharing
      29. Summary
      30. Managerial Accounting to Value-Based Management—Using Supply Chain Excellence
        1. Why Is This a Game-Changing Trend?
        2. Managing Overall Company Value With the Supply Chain
        3. Driving Shareholder Value With Your Supply Chain
        4. Driving Shareholder Value With Your Supply Chain by Creating Economic Profit
        5. Increased Economic Profit Means Increased Shareholder Value
      31. Summary
      32. Chapter 1 Addendum: Game Changers Update—10 + 5 Trends for 2025
      33. Game-Changing Trend 1: Customer Service to Relationship Management to Intelligent Value Co-Creation
      34. Game-Changing Trend 2: Functional Focus to Process Focus to Systemic Focus
      35. Game-Changing Trend 3: Incremental Change to Transformational Agility to Prognostic Agility
      36. Game-Changing Trend 4: Information Hoarding to Information Sharing to Information Synthesis
      37. Game-Changing Trend 5: Adversarial Relationships to Collaborative Relationships to Vested Relationships
      38. Game-Changing Trend 6: Demand Forecasting to Demand Endcasting to Demand Shaping
      39. Game-Changing Trend 7: Training to Knowledge-Based Development to Talent Management
      40. Game-Changing Trend 8: Vertical Integration to Virtual Integration to Flexible Network Integration
      41. Game-Changing Trend 9: Functional Measurement to Customer Service Measurement to Relevant Value Measurement
      42. Game-Changing Trend 10: Managerial Accounting to Value-Based Management to Total Value Orientation
      43. The “+5” Game-Changing Trends
      44. Game-Changing Trend 11: Transformation
      45. Game-Changing Trend 12: “Dumb” Technology to “Smart” Technology to Autonetic Technology
      46. Game-Changing Trend 13: Local Optimization to Global Optimization to “Glocal” Optimization
      47. Game-Changing Trend 14: Risk Agnostic to Risk Management to Risk Prognosis
      48. Game-Changing Trend 15: Untenability to Sustainability to Prostainability
      49. Summary
      50. Transition: Game-Changing Trends in Supply Chain to Global Supply Chains
    10. 2. Global Supply Chains
      1. The Fourth in the Game-Changers Series of University of Tennessee Supply Chain Management White Papers
      2. Executive Summary: Best Practices for Managing Global Supply Chains
      3. Using the EPIC Framework to Evaluate Global Regions
      4. Summary of Key Themes From the EPIC Assessment
      5. Best Practices
      6. SCND—Global Sourcing Analysis and Decision Making
      7. Best Practices for Managing a Complex, Global Supply Chain
      8. Sources
      9. Introduction: Global Supply Chain
      10. Back to the Future
      11. Where It All started: The (Re)emerging Power of Asia
      12. It Is “All About” the Shifting Total Cost of Ownership (TCO)
      13. Execution Is More Important Than Cost
      14. Global Supply Chains Present Risk for Companies
      15. What Does All of This Mean for Global Supply Chains?
      16. The Need for a Global Supply Chain Management Strategy
      17. EPIC Framework to Evaluate Global Regions
      18. Assessing Supply Chain Readiness Across Regions of the Globe
      19. How the EPIC Framework Works
        1. Economy
        2. Politics
        3. Infrastructure
        4. Competence
      20. The Regional Assessments
      21. EPIC Framework and the Supply Chain Network Design (SCND) Model
      22. Summary of Key Themes From the EPIC Assessment
      23. Best Practices
      24. SCND—Global Sourcing Analysis and Decision Making
      25. 1. Strategy driven
        1. Examples
      26. 2. Scale
        1. Examples
      27. 3. Analysis Mastery
      28. 4. TCO/NPV Based
        1. Examples
      29. 5. Holistic Product Design
        1. Examples
      30. Best Practices for Managing a Complex, Global Supply Chain
      31. 1. Global Sales & Operations Planning
        1. Examples
      32. 2. Process to Manage Complexity
        1. Examples
      33. 3. Supplier Partnerships (Materials, Equipment)
        1. Examples
      34. 4. Talented, “On-the-Ground” Team
        1. Examples
      35. 5. Rapid Response (Supply Chain Visibility)
      36. Visibility of Visibility
      37. Control Towers
      38. Summary
      39. Transition: Global Supply Chains to Managing Risk in the Global Supply Chain
    11. 3. Managing Risk in the Global Supply Chain
      1. A Report by the Supply Chain Management Faculty at the University of Tennessee
      2. Executive Summary
      3. Risk in the Global Supply Chain Introduction
      4. Risk: A Daily Fact of Life
      5. Insurance: A Surprising Finding
      6. The Alarming State of Supply Chain Risk Management
      7. An Up-to-Date Twist on Risk: The Survey Says . . .
      8. 1. Documented Risk Management Processes
      9. 2. Facility Loss
      10. 3. Supplier Loss
      11. 4. Supply Chain Risk Ratings
      12. 5. Risk Mitigation Strategies
      13. Failure Mode and Effect Analysis
      14. Best Practice Case Studies in Supply Chain Risk Management
      15. IBM
      16. Lockheed Martin
      17. The Supply Chain Risk identification Structure (SCRIS)
      18. Risk Exposure Index
      19. Recommendations to Manage Supply Chain Risk
      20. Identify Risks
      21. Third-Party Risk
      22. Other Approaches to Identifying Supply Chain Risk
      23. Prioritize Risks
      24. Example One: Addressing Supply Chain Risk at a Food Manufacturer Using FMEA
      25. Example Two: Addressing Supply Chain Risk at a Durable Goods Manufacturer
      26. Mitigate Risks
      27. Using Insurance to Mitigate Risk
      28. Supply Chain Professionals May Not Understand Insurance Products
      29. Summary
      30. Transition: Managing Risk in the Global Supply Chain to the ABCs of DCs—Distribution-Center Management: A Best Practices Overview
    12. 4. The ABCs of DCs—Distribution-Center Management: A Best Practices Overview
      1. The Fifth in the Game Changers Series of University of Tennessee Supply Chain Management White Papers
      2. Introduction
      3. Receiving, Put Away, and Returns
      4. Receiving
      5. Put Away
      6. Returns
      7. Picking/Order Fulfillment/Shipping
      8. Profiling/Slotting (Zoning or ABC Zoning)
      9. Picking Systems
      10. Voice Picking
      11. Pick-to-Light
      12. Radio Frequency
      13. Automated Picking (A-frame or Automated Storage and Retrieval Systems)
      14. Goods-to-Person Picking (KIVA)
      15. Robotics and AGVs
      16. Manual/Paper-Based Systems
      17. Postponement Operations
      18. How to Select the Right Picking System
      19. Omni-Channel Picking
      20. Lean Warehousing
      21. Keep It Simple
      22. 5S
      23. Total Employee Involvement
      24. Standard Work and Making Problems Visible
      25. Management Walkabouts
      26. Visual Management
      27. Total Productive Maintenance
      28. Eliminate Before You Automate
      29. Value Stream Mapping
      30. Office Operations
      31. Six Sigma
      32. Cross-Docking
      33. Metrics and Planning—Developing a DC Management Strategic Plan
      34. Metrics
      35. Make Sure Metrics Have a Logical Framework
      36. Goal Setting and the Importance of Benchmarking
      37. The Best Warehouse Metrics
      38. Safety
      39. Customer Service
      40. Cost
      41. Asset Management
      42. People Development, Management, and Morale
      43. Warehouse Information Systems
      44. Warehouse Management System (WMS) Functionality
        1. Goods receipts
        2. Put away
        3. Profiling or slotting
        4. Picking
        5. Shipping
        6. Real-time visibility into inventory and orders
        7. Labor management
        8. Yard and dock management
        9. Cross-docking
        10. Inventory cycle counting
        11. Integrated with enterprise resource planning system
        12. Reverse logistics
        13. Small parcel management
      45. Automation
      46. Choosing a Warehouse Management System
      47. Change Management
      48. Layout and Space Optimization
      49. Eliminate Honeycombing
      50. Racking and Mezzanines
      51. Stacking Height and Product Stackability
      52. Eliminate Nondistribution Functions
      53. Warehouse Layout: Docks and Aisles
      54. Receiving and Shipping
      55. Network Optimization
      56. Safety and Security
      57. Safety Mindset/Culture
      58. Safety Metrics
      59. Safety Processes
      60. Security
      61. People
      62. Third-Party Logistics Operators
      63. Hourly Associates
      64. Kaizen
      65. Management Personnel
      66. Sustainability
      67. Summary
      68. About the Global Supply Chain Institute
      69. Transition: The ABCs of DCs—Distribution-Center Management: A Best Practices Overview to Bending the Chain—The Surprising Challenge of Integrating Purchasing and Logistics
    13. 5. Bending the Chain: The Surprising Challenge of Integrating Purchasing and Logistics
      1. A Report by the Supply Chain Management Faculty at the University of Tennessee
      2. Executive Summary
      3. The Surprising Challenge: Purchasing and Logistics Integration
      4. Supply and Demand Disconnects
      5. Supply Side Disconnects
      6. The Surprising Gap Between Purchasing and Logistics
        1. Example
      7. The Research: Linking Purchasing and Logistics Integration (PLi) to Improved Functional and Financial Performance
      8. Major Finding 1: Purchasing and Logistics Frequently Are Found in a Broader Supply Chain or Operations Organization but Really Exist As Two Separate and Disconnected Functions
      9. Major Finding 2: Both Purchasing and Logistics Are Well-Aligned Independently With Their Business Unit’s Strategy and Activities but Not Nearly As Well-Aligned With Each Other
      10. Major Finding 3: Despite Formal Organizational Links Between Purchasing and Logistics, Interaction Between the Functions Is Typically Informal and Unstructured
      11. Major Finding 4: Maintaining Open Lines of Communication Is the Most Widely Used Technique to Foster Integration
      12. Best Practices
      13. Best Practice 1: Fully Integrated End-to-End Supply Chain Organization With Common Metrics
        1. Example
        2. Examples
        3. Examples
      14. Best Practice 2: Talented supply chain organization that rewards people for in-depth mastery and end-to-end supply chain leadership
        1. Examples
      15. Best Practice 3: Purchasing and logistics network with an operating decision framework based on best overall total value of ownership (TVO = total cost of ownership plus level of customer creation)
        1. Examples
      16. Best Practice 4: Effective information systems and work processes that enable superior business results by providing multifunctional supply chain teams the proper tools and information
        1. Examples
        2. Examples
        3. Example
      17. Seven Actions a Supply Chain Leader Can Take Today
      18. How High Is Your PLi?
      19. Transition: Bending the Chain—The Surprising Challenge of Integrating Purchasing and Logistics to Supply Chain Talent—Our Most Important Resource
    14. 6. Supply Chain Talent—Our Most Important Resource
      1. The Sixth in the Game-Changing Trends Series of University of Tennessee Supply Chain Management White Papers
      2. Executive Summary
      3. What Makes Supply Chain Talent Unique?
      4. What Is Included?
      5. Our Most Important Resource
      6. Introduction
      7. Developing a Talent Management Strategy
      8. Talent Management Myths
      9. The Need for Ownership of the Talent Strategy
      10. Talent Strategy Must Support Organizational Goals
      11. The Need for Investment in Talent
      12. Think About Talent Like You Think About Supply Chain Management
      13. Talent Management Industry Research Results and Recommendations
      14. Analyze
      15. Find
      16. Recruit
      17. Develop
      18. Retain
      19. Global Supply Chain Institute Talent Management Recommendations
      20. Eight Talent Management Best Practices
      21. Best Practices in Supply Chain Talent Management
      22. 1. Clear definition of the “Who”
        1. Example
      23. 2. Use of Mentors, Sponsors, and First Coaches
      24. 3. Individual Skill and Development Plans
        1. Examples
      25. 4. Internships/Co-Ops
        1. Internships and Co-Ops Assure Fit
      26. 5. Top University Partnerships
        1. Example
      27. 6. Top-Talent Systems
        1. Example
      28. 7. Hire for Overall Supply Chain—Not for a Specific Job
        1. Example
      29. 8. Active Diversity Program
        1. Example
      30. Final Thought on Best Practices
      31. Case Studies in Hourly Supply Chain Talent Management
      32. Case Study 1: The Great Driver Shortage
      33. Why the Shortage
        1. Demographics
        2. Competition from other industries
        3. Lifestyle
        4. Wage rates
        5. Big brother
        6. Stricter driver requirements
      34. Best Practices for Retaining/Attracting Drivers
        1. Find
        2. Recruit
        3. Develop
        4. Retain
      35. Recommendation: Solving The Great Driver Shortage
      36. Case Study 2: Supply Chain Technician and Warehouse Personnel Challenges
      37. Summary
      38. Supply Chain Talent Skill Matrix and Development Plan Tool
    15. Conclusion
    16. Index