INDEX

A

Acceptance sampling, 290

Activity-based costing, 393

Additive layer manufacturing (ALM), 138

Adversarial negotiation, 332

Adversarial tactics, 333–335

anchoring, 333

manipulating commitments, 334

reciprocity, 333

rejection-then-retreat trick, 334

withholding information, 334

Air, as mode of transportation, 191

Alliances, 318

Amazon.com, 11

Anchoring, 333

Anticipation inventory, 247

Apple Computer Corp., 163

Appraisal costs, 286

Arbitration, 327–328

Asia-Pacific Economic Cooperation Forum (APEC), 362

Assemble-to-order strategy, 42

Auctions, 166–169

e-auctions, 166–169

open auction, 168

reverse auction, 168

sealed bid auction, 168

Automated storage and retrieval systems (ASRS), 188

Automation in services, 148

B

Barlean's Organic Oils, 53

Batch processes, 136

Bidding, 159–160

competitive bidding, 160

Bill of materials (BOM), 264

BMW, 360–361

Bottleneck, 70–71

Boundary-spanning nature of SCM, 12–15

cross-enterprise coordination, 12, 14–15

intra-organizational coordination, 12–14

Break-bulk, 194

Break-even analysis, 131–133

Buckeye Technologies, 307–308

Bucklin, Louis P., 111

Buffer stock, 257

Buffer uncertainty, 246

Bullwhip effect, 8–9

Business logistics, 182

Business process, 66–68

order fulfillment process, 67

process improvement, 67

well-coordinated activities, 67

Business strategy, 35

Business-to-business (B2B), 17, 23

Business-to-consumer (B2C), 17, 23

C

Capacity

design capacity, 74

effective capacity, 74

implications, 73–75

Carbon footprint, 391

Careers in SCM, 27–28

entry-level positions, 28

Causal forecasting models, 224–227

linear regression analysis, 224–227

multiple regression, 227

Causal models, 216–217

Cellular layout, 141

Channels of distribution, 110–116

description, 110

designing, 111–112

customer service objectives in, 112

factors influencing, 112

market coverage objectives in, 112

product characteristics in, 112

direct, 110

e-commerce impact, 114–116

exclusive distribution, 112

indirect, 110

intensive distribution, 112

selective distribution, 112

versus logistics channel, 112–114

Checklists, 287–288

Collaboration activity, SCM, 7

Collaborative Planning and Forecasting for Replenishment (CPFR), 230–233, 322

Sales and Operations Planning (S & OP), 232–233

VICS process for adoption of, 230

Commercial sourcing, 154–155

Commodity swapping, 330–340

Common variation, 291

Competitive advantage, achieving, 36–37

competitive advantage matrix, 39

cost productivity advantage, 37

value advantage, 37

Competitive bidding, 160

Competitive priorities, 50

competing on all dimensions, 54–55

cost, 50

innovation, 50, 52

quality, 50, 52–53

service, 50, 54

time, 50–52

Competitive supply chain, 18–19

characteristics, 18–19

relationship management, 18–19

reliability, 18

responsiveness, 18

Competitiveness measure, productivity as, 56–58

total productivity, 57

Component parts, 243

Computing target inventory, 262–263

Concurrent engineering, 134

Conflict management, 326–327

data conflicts, 326

interest conflict, 326

relationship conflicts, 326

sources of conflict, 326–327

structural conflicts, 326

value conflicts, 326

Consumer sourcing, 154–155

Container Security Initiative (CSI), 24

Continuous improvement, 277

Continuous processes, 136

Continuous review system, 251

Continuum of process types, 137

Contractual relationships, 316–317

Control charts, 287–288

for attributes, 297–298

Coordination activity, SCM, 6

vertical integration versus, 76–77

Core competencies, 20

Cost

competing on, 50

considerations, 358–361

hidden costs, 358–359

non-cost considerations, 359–360

costing systems, 393

cost-productivity advantage, 37

versus price, 158–159

Cost assessment, sustainable SCM, 392–394

activity-based costing, 393

costing systems, 393

cost-of-control, 392–393

damage costing, 393

full cost accounting, 393

life-cycle costing, 393

Criticality, of outsourced activity 165–166, 314–316

Cross-docking, 194–195

break-bulk, 194

Cross-enterprise coordination, 12, 14–15

Cultural challenges, 352–353

Coca Cola's China branding challenge, 353–355

high vs. low context cultures, 355

individualism vs. collectivism, 354

masculinity vs. femininity, 354

small vs. large power distance, 354

weak vs. strong uncertainty avoidance, 355

Customer(s) role in SCM

customer-driven supply chains, 98–103

customer-oriented standards, 109

definition, 98–100

delivering value to, 103–110

end consumer, 99

focus on, 9–10

global customer service issues, 109–110

‘house of quality’, 105

organizational end user, 99

payoffs, customer related, 377

preference changes of, accommodating, 97

traditional view of, 99

voice of the customer (VOC), 103–105

Customer relationship management (CRM), 102

managing customers using, 103

Customer relationships, 100–103

customized strategy, 102

Keurig Versus Flavia, 101

micro-marketing, 102

niche strategy, 102

standardized strategy, 101

types of, 100–103

Customer service, 106–107

activity, 106

definition, 106

impact on supply chain, 107–108

communication, 108

convenience, 108

dependability, 107

time, 107

measuring, 108–109

customer-oriented standards, 109

supplier-oriented standards, 109

philosophy, 106

set of performance measures, 106

strategy, 41, 47–49

Customized strategy, 102

Customs-Trade Partnership Against Terrorism (CTAT), 24

Cycle counting, 188

Cycle stock, 247

Cycle time, 142

Cycles, 211

D

Damage costing, 393

Data conflicts, 326

Degree of product standardization, 135

Dell Computer Corporation, 17

Delphi method, 216

Demand management, 206

Demand planning, 203–204, 230–233

Demand versus supply uncertainty, 162

Dependency risk, 47

Dependent demand, 263–265

Descriptive statistics, 290

Design capacity, 74

Design for manufacture (DFM), 133

Design standard, 382

Designing supply chain networks, 65, 77–81

customized end-to-end operational blueprint, 81

differentiated supply chain segments, 81

drivers of operational complexity, identifying, 80

‘one-size-fits-all’ supply chain structure, 80

performance metrics, 81

segmented structures, 79–81

structure, 77

Dimensions, supply chain relationships, 314–316

Direct channel of distribution, 110

Dispute resolution, 325–330

differences in, 327

arbitration, 327–328

litigation, 327–328

mediation, 327, 329

negotiation, 327, 329

Distribution channel, See Channels of distribution

Distribution strategy, 41, 44–45

Distributive opportunities, 332

Dollar value, 248

Domestic sourcing, 164–165

E

Early supplier involvement (ESI), 14, 130

E-Auction Development Program (EDP), 173

Ecological footprint, 391

E-commerce impact on distribution channel, 114–116

Economic order quantity (EOQ) model, 251, 253–256

Economic production quantity (EPQ), 258–261

Economic purchase orders, 246

Economies of distance, 189

Economies of scale, 189

Effective capacity, 74

Efficiency-focused supply chains, 162

Elcoteq, 280

Electronic auctions (e-auctions), 166–169

stages, 168

auction event, 168

follow-up, 168

preparation, 168

End consumer, 99

Enterprise resource planning (ERP), 22, 82–85, 103

advantages of, 84

configuration, 83–85

by customized software, 83

standardized 'off-the-shelf' software modules use, 83

description, 83

implementation, 85

‘out-of-the-box’ system, 84

Environmental risks, 396

Environmental sustainability, 377–378

Event logistics, 182

Evolving supply process, 162

Exchange rate fluctuations impact, 361–362

Exclusive distribution, 112

Executive opinion, 215

Experience curve, 37

Exponential smoothing, 219–221

External context of SCM, 385

External failure costs, 286

F

Facility layouts, 139–142

planning, 139

types, 139–142

cellular layouts, 141

fixed position layout, 139

process layout, 140

product layout, 140–141

Facility location, 189

Factor Rating, 195

steps in, 196

Fair price, 159

Fat tails, 395

Feedback, 388

feedback loops, 388

Finance, logistics impact on, 184

Financial impact of sourcing, 156

Financial payoffs, 377

Financial performance, 388

Financial supply chain, 27

Finished goods, 243

Fishbone diagrams, 286

Fixed-order quantity system, 250–251, 253–261

economic order quantity (EOQ) model, 253–256

economic production quantity (EPQ), 258–261

production rate model, 258

reorder point (ROP), 256

safety stock, 257–258

Fixed position layout, 139–140

Fixed-time period system, 251–252, 261–263

computing target inventory, 262–263

versus fixed-time period systems, 252–253

Flexibility, 277

Flow shops, 137

Flowcharts, 287–288

Food mile, 391

Forecasting, 203–210, See also Causal forecasting models; Time series forecasting models

collaborative forecasting, 230–233

Delphi method, 216

demand planning, 230–233

forecasting beyond widgets, 207

impact on organization, 208

impact on SCM, 208–210

impacting planning, 207

climate change, 207

crime forecasting, 207

forecasting decisions in conflicts, 207

health forecasting, 207

political forecasting, 207

tourism forecasting, 207

information transforming, 213

measuring forecast accuracy, 227–229

method selection, factors in, 212–213

principles of, 210–211

qualitative, 214–215

quantitative, 214–215

steps in, 211–212

appropriate data, analyzing, 211

cycles, 211

data patterns, 211

deciding what to forecast, 211

forecasting model, selecting, 212

generating forecast, 212

level or horizontal, 211

monitoring accuracy, 212

seasonality, 211

trend, 211

types of, 214–217

versus planning, 205–208

Full cost accounting, 393

Function, marketing, 93–94

Functional products, 161

versus innovative products, 160–163

Funds flow, 7

Fuzzy logic, 395

G

Gap Inc., 94

General Agreement on Tariffs and Trade (GATT), 363

Global customer service issues, 109–110

Global marketing approach, 351–352

Global positioning systems (GPS), 22, 82

Global SCM, 343–372

barriers, 348–349

challenges of global culture, 347

cultural challenge, 352–353, See also individual entry

factors impacting, 349–350

competition, 349

cost, 350

culture, 350

economy, 350

infrastructure, 350

market, 349

politics, 350

technology, 350

global environment, 345–347

cultural, 347

demographic, 347

economic, 347

political, 347

global market challenges, 350–355

global consumer, 351

global versus local marketing, 351–352

infrastructure design, 356–358, See also Infrastructural challenges

labor, 344–345

non-tariff barriers impact, 363–364

import quotas, 363

local content requirements, 363

technical standards and health regulations, 363

trigger price mechanism, 363

opportunities, 348–349

political and economic factors influencing, 361–364

exchange rate fluctuations, 361–362

regional trade agreements, 361–363

trade protection mechanisms, 361

transportation, 345

Wal-Mart, 347–348

warehousing, 344

Wú's Brew works, 365–371

Global sourcing, 164–165

Globalization trend in SCM, 20

Goldratt, Eliyahu M., 70

Good works ethic views, 384

Great pacific garbage patch, 375–377

‘Green’ supply chain, 25

H

Heuristics, 145

Hidden costs, 358–359

Histograms, 287–288

Holding cost, 248

I

Import quotas, 363

Independent demand, 263–265

Indirect channel of distribution, 110–111

Information flow, 7

Information impact of sourcing, 156

Information sharing activity, SCM, 6

Information technology (IT), 357

design, 65

as SCM enabler, 82

Infrastructural challenges, 356–357

labor, 356

suppliers, 357

transportation, 356

Infrastructure design, 356–358

Innovation, 25–26

competing on, 50, 52

outsourcing innovation, 26

Goldcorp Inc., 26–27

Innovative products, 161

versus functional products, 160–163

Integration of processes, 75–77, See also under Supply chain processes

Integrative opportunities, 332

Intel Corporation, 264, 291

Intensive distribution, 112

Interest, 331–332

conflict, 326

Intermittent processes, 135–136

batch processes, 136

project processes, 136

Internal context of SCM, 386

Internal failure costs, 286

International Organization for Standards (ISO) 9000, 288–290

Interpreting productivity, 58

Intra-organizational integration, 12–14

marketing, 13

operations, 13

sourcing, 13

Inventory control, 188

Inventory costs, 247–250

holding cost, 247–248

ordering cost, 247–248

shortage costs, 247, 249

Inventory management, 241–272, See also Supply chain inventory, managing

basics of, 243–250

inventory systems, 250–253

economic order quantity (EOQ) model, 251

fixed-order quantity system, 250–251

fixed-order quantity versus fixed-time period systems, 252–253

fixed-time period system, 251–252

reasons for carrying, 245–246

balance supply and demand, 245–246

buffer uncertainty, 246

economic purchase orders, 246

maintain independence of operations, 245

protect against lead time demand, 245

service inventory, 244

types of inventory, 246–247

anticipation inventory, 247

cycle stock, 247

maintenance, repair and operating items (MRO), 247

pipeline inventory, 247

safety stock, 247

Inventory turnover, 169

J

Job shops, 137

John Deere & Company, 249–250

Just-in-time (JIT), 317

K

Kanban square, 281

Keiretsu supplier-partnering model, 337–338

KUKA Robotics Corp., 147

L

Labor, 344–345, 356

Leadership, 386

Lean six sigma supply chain, 300–303

developing, 301–302

conduct supply chain capability analysis (Step 2), 302

develop key financial and operational metrics (Step 3), 302

identify and implement system improvements (Step 4), 302

jointly define value (Step 1), 301

impact on supply chain activities, 302–303

logistics, 303

operations, 303

suppliers, 303

Sales and Operations Planning (S&OP), 301

Lean supply chain, 23–24

Lean systems, 273–309, See also Six sigma quality

elements of lean, 277–279

lean production, 277

respect for people, 277, 283–285, See also individual entry

total quality management (TQM), 277, 285–290

lean production, 279–283

pull system, 279–281

small lot production, 282–283

uniform plant loading, 283

visual signals, 281–282

lean six sigma, 275–279

broad view, 276

continuous improvement., 277

elimination of waste, 276

flexibility, 277

lean philosophy, 275–277

simplicity, 277

tenets of lean philosophy, 276

visibility, 277

lean tools in the popular press, 289

U.S. Army, 278

Legal compliance, 382

Less-than-truck-load (LTL) shipment, 189

Li & Fung, 231

Life-cycle assessment (LCA), 390

Life-cycle costing, 393

Line balancing in product layouts, 142–146

computing efficiency 145–146

determining cycle time 142–144

identifying task times and precedence relationships, 142

tasks to workstations, assigning, 144–145

theoretical minimum number of workstations, determining, 144

Line processes, 136

Linear regression analysis, 224–227

Litigation, 327–328

Local content requirements, 363

Local marketing approach, 351–352

Logistics, 15, 177–202, 303

business logistics, 182

event logistics, 182

evolution of, 181–182

physical distribution, 181

facility location, 195–196

function, 179–181

impact on organization, 182–185

finance, 184

marketing, 183

operations, 182

packaging, 184

impact on supply chain, 185

logistics tasks, 187–189

cycle counting, 188

facility location, 189

inventory control, 188

material handling, 187–188

order fulfillment, 189

packaging, 188

storage, 187

transportation, 187, See also individual entry

military logistics, 182

reverse logistics, 185–187

SCM versus, 15

versus distribution channel, 112–114

Longest task time rule, 144

Long-term supply chain relationships, 321

design phase, 321

management phase, 321

M

Maintenance, repair and operating items (MRO), 247, 315

Make-to-order strategy, 42

Make-to-stock strategy, 42

Manufacturing operations, 125

Market research, 215

Marketing, 13, 91–119

channels of distribution, 110–116, See also individual entry

customer preference changes, accommodating, 97

PepsiCo, 97

definition, 93–98

evolution of, 94–96

1930s, 95

1970s, 95

early 20th century, 95

function, 93–94

Gap Inc., 94

logistics impact on, 183

mass marketing, 94

organization impacted by, 96–97

relational marketing, 95–96

segmentation, 94

supply chain impacted by, 98

place, 98

price, 98

product, 98

promotion, 98

sustainability, 400–401

target marketing, 94

transactional marketing, 95

Material requirements planning (MRP), 264

Matrix, supply chain relationship, 316–318

Mean, as a forecasting method, 217–218

Mediation, 327, 329

Method selection in forecasting, factors in, 212–213

available data, 212

degree of accuracy, 212

length of forecast horizon, 212–213

patterns in data, 213

Micro-marketing, 102

Military logistics, 182

Minimalist ethic views, 384

Monte Carlo simulations, 395

Moving averages, 218–219

simple, 218

weighted, 219

Multimode, transport using, 192–193

Multiple regression, 227

Multiple sourcing, 164

N

Negotiation, 159–160, 327, 329–337

concepts, 330–337

distributive opportunities, 332

integrative opportunities, 332

leverage, 331

negotiator's dilemma, 332

position versus interest, 331–332

styles, 332–333

adversarial negotiators, 332

problem-solving negotiators, 333

tactics, 333–337, See also Adversarial tactics; Problem-solving tactics

Network design, 63–89, See also Designing supply chain networks

Niche strategy, 102

Non-cost considerations, 359–360

Non-strategic transactions, 316

Non-tariff barriers impact, 363–364

Norm of reciprocity, 333

Number of followers rule, 144

O

Off-shoring, 164

‘One-size-fits-all’ supply chain structure, 80

One-to-one marketing, 102

Open auction, 168

Operational impact, 155

Operational payoffs, 377

Operations, 13, 303

logistics impact on, 182

Operations management (OM), 121–150

automation in services, 148

decisions, 124–125

facility layout, 139–142, See also individual entry

function, 123–124

impact on organization, 126–127

impact on SCM, 127–128

line balancing in product layouts, 142–146

manufacturing versus service operations, 125

operations function, evolution, 125–126

process automation, 146–148

process design, 134–139

intermittent processes, 135–136

repetitive processes, 135–136

product design, 128–134, See also Product design, OM in

transformation role of, 124

Operations strategy, 41–44

Assemble-to-order option, 42

Make-to-order option, 42

Make-to-stock option, 42

Option value, sustainable SCM, 392

Order fulfillment, 189

Order picking, 193

Order qualifiers, 54

Order winners, 54

Ordering cost, 248

Organization

OM impact on, 126–127

sourcing impact on, 155–157

financial, 156

information impact, 156

risk mitigation, 156

strategic, 156

Organizational end user, 99

Organizational payoffs, 377

Outsourcing, 46–47, 77, 165–166

advantages, 46–47

criticality, 165–166

outsourcing alliances, 48, 167

Li & Fung Ltd., 48–49

risks in, 47

Roots, 167

scope, 165

trend in SCM, 20–21

versus in-house, 78–86

Sony Versus Samsung, 78

P

Packaging, 188, 398

logistics impact on, 184

Parallel process, 72

Pareto analysis, 287–288

Partnership agreements, 337–339

Partnerships, 317

Percentage of item cost, 248

Performance standard, 382

Periodic order quantity (POQ), 266

Periodic review system, 252

Peters, Tom, 46

Philips Lighting, 157

Physical distribution, 181

Pipeline inventory, 247

Pipeline, transport using, 191

Place, 98

utility, 189

Planning

decisions involved, 206

existing resource, scheduling, 206

future resource needs, determining, 206

new resources, acquiring, 206

forecasting versus, 205–208

Political risks, 396

Position, in negotiation 331–332

Postponement, 23, 162

Power-based versus trust-based relationships, 319–321

Prevention cost, 286

Price, 98

cost versus, 158–159

Problem-solving negotiators, 333

Problem-solving tactics, 335–337

asking, 335

listening, 335

referencing, 335

Process automation, 146–148

advantages, 146–147

disadvantages, 146–147

Process capability, 291–296

process variation versus product specifications, 293

product design specifications, 292

Process control charts, 296–297

attributes, 297

control charts for attributes, 297–298

variables, 297

Processes, 387

design, 400

layout, 140

managing, 68–69, See also Supply chain processes

variation, 73

Proctor & Gamble, 319–324

Product(s), 7, 98, 161

functional, 161

innovative, 161

layout, 140–141

line balancing in, 142–146

Product Life Cycle, 134

specifications, 292

volume, 135

Product design, OM in, 128–134

break-even analysis, 131–133

design decisions, factors impacting, 133–134

concurrent engineering, 134

design for manufacture (DFM), 133

product life cycle, 134

remanufacturing, 134

design of services, 129

physical element of service, 129

psychological benefits, 129

sensual elements, 129

functional concerns at product screening stage, 130

finance, 130

marketing, 130

operations, 130

sourcing, 130

process of, 129–131

final design, 130

idea development, 129

preliminary design and testing, 130

product screening, 130

Production rate model, 258

Productivity

as competitiveness measure, 56–58

interpreting, 58

Professional organizations, SCM 27–28

Project processes, 136

Promotion, 98

Pull system, 279–281

Purchasing, 153–154

Q

Q-model, 251

Qualitative forecasting methods, 214–215

executive opinion, 215

market research, 215

Quality circle, 284

Quality function deployment (QFD), 104

Quality, competing on, 50, 52–53

Quantitative forecasting methods, 214–217

causal models, 216–217

time series models, 216

R

Radio frequency identification (RFID), 22, 53, 82

Rail, transport using, 191

Random variation, 291

Rapid manufacturing, 138

Raw materials, 243

Real option analysis, 395

Reciprocal interdependence, 322–323

Reciprocity, 333

norm of reciprocity, 333

Referencing, 335

Regional trade agreements, 361–363

Rejection-then-retreat trick, 334

Relational marketing, 95–96

Relational relationship, 316

Relationship conflicts, 326

Relationship management, 18–19

Relationship view, 68

Reliability, 18

Remanufacturing, 134

Reorder point (ROP), 256

Repetitive processes, 135–136

continuous processes, 136–137

line processes, 136–137

Request for proposal (RFP), 157

Request for quotation (RFQ), 157

Request or invitation for bid (RFB), 157

Respect for people, 277, 283–285

role of management, 284

role of suppliers, 284–285

role of workers, 283–284

Responsive supply chains, 162

Responsiveness, 18

Return on assets (ROA), 184

Return on investment (ROI), 184

Reverse auction, 168

Reverse engineering, 130

Reverse logistics, 7, 185–187

returns to a 3PL provider for repairs, 186

with returns to manufacturer, 186

Rise of SCM, 15–18

information technology changes in, 17

need for, 16

order processing, 16

Risk assessment, sustainable SCM, 394–396

environmental risks, 396

fat tails, 395

Fuzzy logic, 395

Monte Carlo simulations, 395

political risks, 396

real option analysis, 395

scenario-based analysis, 395

social risks, 396

Risk-hedging supply chains, 162

Risk mitigation, 156

impacting sourcing, 156

S

Safety stock, 247, 257–258

Sales and Operations Planning (S & OP), 232–233, 301

Sales force composite, 214

Sawtooth model, 251

Scatter diagrams, 287–288

Scenario-based analysis, 395

Scope, of outsourced activity, 165, 314–315

Sealed bid auction, 168

Seasonal index, 223

Seasonality, 211

adjustment, 222–224

Segmentation, market, 94

Segmented structures, designing, 79–81

Selective distribution, 112

Sequential interdependence, 322–323

Serial process, 71

Service, competing on, 50, 54

Service inventory, 244

Zoots, 244

Service operations, 125

Service supply chain, 10–11

Setup cost, 248

Setup time, 282

Shortage costs, 249

Shortage inventory cost, 247

‘Silo’ mentality, 13, 75

Simple moving average, 218

Simplicity, 277

Single sourcing, 164

Six sigma quality, 11, 298–300, See also Lean systems

methodology, 299–300

Small lot production, 282–283

Small versus large firms, 55–56

Smartcup, 131

Snedeker Global Cruises, 173–174

Social risks, 396

Social sustainability, 377–378

Sourcing, 13, 151–175, 399–400, See also Outsourcing

bidding or negotiation, question of, 159–160

commercial versus consumer sourcing, 154–155

cost versus price, 158–159

demand versus supply uncertainty, 162

domestic versus global sourcing, 164–165

financial impact on organization, 156

function, 153, 157–160

evolution of, 154

impact on organization, 155–157

impact on supply chain, 155–157

operational impact, 155

performance, measuring, 169–170

process, 157–160

and SCM, 160–169

single versus multiple sourcing, 164

strategic sourcing, 153

strategy, 41, 45–47

outsourcing, 46

Speedy Automotive, case study 238–239

Stable supply process, 162

Stakeholder's reaction, 388

Statistical process control (SPC), 290

Statistical quality control (SQC), 290–298, See also Process capability

acceptance sampling, 290

descriptive statistics, 290

sources of variation, 290–291

statistical process control (SPC), 290

Steinway Pianos, 113

Strategic alignment, 36

Strategic considerations, 55–56

Strategic impact of sourcing, 156

Strategic Solutions Inc., 200–201

Strategic sourcing, 153

Structural conflicts, 326

Supplier-oriented standards, 109

Suppliers, 4, 303, 357

first-tier, 5

second-tier, 5

Supply chain/Supply chain system, 3, 65–69, See also Competitive supply chain; Customer-driven Supply chains

activities

lean six sigma supply chain impact on, 302–303

customer service impact on, 107

disruptions, managing, 24

downstream part, 5

logistics impact on, 185

managing flows through, 7–8

funds flow, 7

information flow, 7

products flow, 7

marketing impact on, 98

processes across, 65–66

products ‘pulled’ through, 9

sourcing impact on, 155–157

upstream part, 4

warehousing in, 193–194

Supply chain inventory, managing, 265–269

ABC inventory classification, 265–266

measuring inventory performance, 267–268

practical considerations of EOQ, 266–267

capacity constraints, 267

EOQ adjustments, 267

lumpy demand, 266

vendor managed inventory (VMI), 268–269

Supply chain management (SCM), 1–31, See also individual entries

activities, 6–7

coordination, 6

information sharing, 6

collaboration, 7

description, 3–11

forecasting impact on, 208–210

stages, 4–5

customers, 4

producers, 4

retailers, 4

suppliers, 4

wholesalers/distributors, 4

Supply chain network, 4–5

design, 65, 77–81, See also Designing supply chain networks

shapes, 6

Supply chain processes

integration of, 75–77

functions integration across supply chain stage, 76

internal functions integration stage, 76

organizational functions independence stage, 75–76

stages of, 75–76

vertical integration versus coordination, 76–77

managing, 68–69, See also Theory of constraints (TOC)

advantages, 68

LG Electronics, 69

relationship view, 68

transactional view, 68

Supply chain relationships, 313–319, See also Trust-based relationship, developing

contractual, 316–317

dimensions, 314–316

criticality, 314–316

scope, 314–315

importance of, 313–314

long-term, 321

management, 311–342

diluting power, 339

keiretsu supplier-partnering model, 337–338

partnership agreements, 337–339

in practice, 337–339

managing conflict and dispute resolution, 325–330, See also Conflict management; Dispute resolution

matrix, 316–318

alliances, 318

non-strategic transactions, 316

partnerships, 317

relational, 316

trust-based versus power-based, 319–321

trust, role of, 319–325

contractual-based view, 321

relationship-based view, 321

Supply chain security, 24–25

Supply chain strategy, 33–62, See also Customer service:

strategy; Distribution strategy; Operations strategy;

Sourcing: strategy

building blocks of, 40–49

business strategy and, 35

competitive advantage, achieving, 36–37

description, 35–40

design, 49–55

strategic alignment, 36

strategic considerations, 55–56

small versus large firms, 55–56

supply chain adaptability, 55–56

Surplus Styles (case study), 60–61

Supply chain sustainability model, 385–388

business context, 386

external context, 385

feedback, 388

financial performance, 388

human and financial resources, 386

internal context, 386

leadership, 386

model inputs, 385

processes, 387

stakeholder's reaction, 388

sustainability performance, 387

Supply management, 153–154

Supply uncertainty, 162

Sustainability, 375–384

and ‘green’ supply chain, 25

performance, 387

reason for, 382–384

community relations, 383

design standard, 382

ethical responsibility, 383

good works ethic views, 384

legal compliance, 382

minimalist ethic views, 384

performance standard, 382

revenue, 383

Sustainable SCM, 373–406

Aracruz Celulose, 378–380

Carbon Fiber Auto Parts, 397–398

compliance, 388–389

cost assessment, 392–394

customer related payoffs, 377

defining sustainability, 375–377

enforcement, 388–389

environmental sustainability, 377–378

evaluating, 384–396

financial payoffs, 377

Great Pacific Garbage Patch, 375–377

Haitian Oil, case study, 404–406

innovation, 388–390

marketing sustainability, 400–401

operational payoffs, 377

organizational payoffs, 377

packaging, 398

in practice, 396–397

product design, 397

principles, 380–382

business relationships, 380

community involvement and economic development, 381

ethics, 380

financial return, 380

governance, 380

transparency, 380

value of products and services, 381

process design, 400

risk assessment, 394–396, See also Risk assessment, sustainable SCM

SCM decisions and related environmental effects, 379

facility location, 379

inventory control, 379

material flow, 379

product packaging, 379

social sustainability, 377–378

sourcing, 399–400

sustainability in SCM, measures of, 390–391

carbon footprint, 391

ecological footprint, 391

food mile, 391

life-cycle assessment (LCA), 390

total cost of ownership (TCO), 390

unintended consequences, 401–402

values in, 391–392

option value, 392

Sysco, 190

System constraints, 70–72

System design, 63–89, See also Supply chain system

System variation, 72–73

T

Takt time, 142

Target marketing, 94

Technology role, global SCM, 357–358

information technology, 357

Technology trend in SCM, 21–23

Theory of constraints (TOC), 70–75

capacity implications, 73–75

parallel process, 72

serial process, 71

system constraints, 70–72

system variation, 72–73

Third-party logistics (3PL) providers, 197, 315

Time series forecasting models, 217–224

exponential smoothing, 219–221

mean, 217–218

moving averages, 218–219

simple, 218

weighted, 219

seasonality adjustment, 222–224

trend adjusted exponential smoothing, 221–222

Time series models, 216

Time, competing on, 50–52

FedEx, 51

Total cost of ownership (TCO), 159, 390

Total quality management (TQM), 11, 53, 277–279, 285–290, 360

appraisal costs, 286

cause and effect diagrams, 286

checklists, 287–288

control charts, 287–288

costs of quality, 286

external failure costs, 286

flowcharts, 287–288

histograms, 287–288

internal failure costs, 286

Pareto analysis, 287–288

prevention cost, 286

quality tools, 286–288

scatter diagrams, 287–288

seven tools of quality, 287

voice of the customer (VOC), 285–286

Toyota Motor Corporation, 40, 172–173

Trade protection mechanisms, 361

Transactional marketing, 95

Transactional view, 68

Transformation role of OM, 124

Transportation, 345, 356

Transportation, logistics task, 189–193

air, 191

economies of distance, 189

economies of scale, 189

less-than-truck-load (LTL) shipment, 189

multimode, 192–193

Northeast Passage, 192–193

pipeline, 191

place utility, 189

rail, 191

truck, 191

water, 191

Trends in SCM, 20–27, 211

globalization, 20

outsourcing, 20–21

postponement, 23

technology, 21–23

trend adjusted exponential smoothing, 221–222

Trigger price mechanism, 363

Truck, transport using, 191

Trust-based relationship, developing, 321–324

assessing relationship, 322

effective conflict resolution mechanisms, designing, 323

effective contracts, creating, 323

equity, 322

identifying operational roles, 322

managing, 324–325

clear method of communication, 324

commitment, 324

fairness, 324

performance visibility, 324

reciprocal interdependence, 322

sequential interdependence, 322

Trust-based versus power-based relationships, 319–321

U

Uniform plant loading, 283

United Parcel Service (UPS), 180

United Postal Service Inc (UPS), 197

V

Value advantage, 37–39

Value chain, 4

Value conflicts, 326

Value network, 4

Value-segments, 38

Value Stream Mapping (VSM), 302

Value, SCM as a source of, 39–40

Vendor managed inventory (VMI), 268–269

Vertical integration versus coordination, 76–77

Virtual teaming, 165

Visibility, 277

Visual signals, 281–282

Voice of the customer (VOC), 103–105, 285–286

Voluntary Interindustry Commerce Standards (VICS), 230

W

Wal-Mart, 21, 38, 127, 347–348

Warehousing, 193–196, 344

in supply chain, 193–194

Waste, 275

elimination of, 276

Water, transport using, 191

Weeks-of-supply, 169

Weighted moving average, 219

Willingness-to-pay (WTP), 392

Wireless communication technologies, 22

Withholding information, 334

Work cells, 141

Work-in-process (WIP), 243

World Health Organization (WHO), 209–210

Z

Zara, Spanish retailer, 19