Essentials of Supply Chain Management E-Book

Michael H. Hugos

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Essentials Series
• Sprache: Englisch

Seitenzahl: 417

Veröffentlichungsjahr: 2011

Beschreibung

The latest thinking, strategies, developments, and technologiesto stay current in supply chain management Presenting the core concepts and techniques of supply chainmanagement in a clear, concise and easily readable style, the ThirdEdition of Essentials of Supply Chain Management outlines the mostcrucial tenets and concepts of supply chain management. * Shows how to utilize technology to boost efficiency andresponsiveness * Introduces new material on the latest technology and practicesavailable for supply chain management * Offers new cases and executive interviews throughout thebook * Written by author of Business in the Cloud: What Every BusinessNeeds to Know about Cloud Computing Creating an effective supply chain is key to staying ahead intoday's complex market. The Third Edition provides the tools,guidance, and examples to help maximize business performance andcreate competitive advantage.

Leseprobe

Contents

Cover

Series

Title Page

Copyright

Dedication

Book Manifesto

Supply Chains as Massively Multi-Player Online Role Playing Games

A Real-Time Supply Chain Simulation System

Preface

Chapter 1: Key Concepts of Supply Chain Management

Nothing Entirely New...Just a Significant Evolution

How the Supply Chain Works

The Evolving Structure of Supply Chains

Participants in the Supply Chain

Aligning the Supply Chain with Business Strategy

Chapter Summary

Chapter 2: Supply Chain Operations: Planning and Sourcing

A Useful Model of Supply Chain Operations

Demand Forecasting and Planning (Plan)

Product Pricing (Plan)

Inventory Management (Plan)

Credit and Collections (Source)

Chapter Summary

Chapter 3: Supply Chain Operations: Making and Delivering

Product Design (Make)

Production Scheduling (Make)

Facility Management (Make)

Order Management (Deliver)

Delivery Scheduling (Deliver)

Return Processing (Deliver)

Supply Chain Operations Can Be Outsourced

Chapter Summary

Chapter 4: Using Information Technology

Information Systems that Support the Supply Chain

Data Capture and Data Communications

New Trends in Supply Chain Technology

A Combination of Technologies Creates Cloud Computing

Chapter Summary

Chapter 5: Metrics for Measuring Supply Chain Performance

Useful Model of Markets and Their Supply Chains

Market Performance Categories

A Framework for Performance Measurement

Customer Service Metrics

Internal Efficiency Metrics

Demand Flexibility Metrics

Product Development Metrics

Operations that Enable Supply Chain Performance

Collecting and Displaying Performance Data

Three Levels of Detail

Spotlighting Problems and Finding Opportunities

Markets Migrate from One Quadrant to Another

Sharing Data Across the Supply Chain

Chapter Summary

Chapter 6: Supply Chain Coordination

The Bullwhip Effect

Coordination in the Supply Chain

Supply Chain Product Data Standards

Collaborative Planning, Forecasting, and Replenishment

How to Start Supply Chain Collaboration

Sales and Operations Planning

Chapter Summary

Chapter 7: Supply Chain Innovation for the Real-Time Economy

Coordination and Collaboration in Supply Chains

Massively Multi-Player [Serious] Supply Chain Games

Supply Chains and Simple Data Connections

Social Media and Real-Time Feedback

Chapter Summary

Chapter 8: Defining Supply Chain Opportunities

The Supply Chain as a Competitive Advantage

Identify the Business Opportunity and Define the Goal

Create the Strategy

Create a Conceptual System Design

Strategic Guidelines for Designing Systems

Define Project Objectives

Create an Initial Project Plan and Budget

Estimate the Project Budget and ROI

Define the Specific Costs and Benefits

Chapter Summary

Chapter 9: Creating Supply Chains for Competitive Advantage

Charlie Supply Inc.—The Initial Business Situation

New Opportunities Emerge—The Follow-On Situation

Twelve-Month Project Objectives

Strategic Alliances for Competitive Advantage

Chapter Summary

Chapter 10: The Promise of the Real-Time Supply Chain

The Start of Something Big

The Profit Potential of the Self-Adjusting Feedback Loop

Harnessing the Feedback Loop to the Supply Chain

Playing the Game of Supply Chain Management

Strengthening Supply Chain Alliances

Emergent Behavior in Supply Chains

Adaptive Networks and Economic Cycles

Chapter Summary

About the Author

Index

Essentials Series

The Essentials Series was created for busy business advisory and corporate professionals. The books in this series were designed so that these busy professionals can quickly acquire knowledge and skills in core business areas.

Each book provides need-to-have fundamentals for those professionals who must:

Get up to speed quickly, because they have been promoted to a new position or have broadened their responsibility scopeManage a new functional areaBrush up on new developments in their area of responsibilityAdd more value to their company or clients

Books in this series include:

Essentials of Business Ethics by Denis Collins

Essentials of Corporate and Capital Formation by David H. Fater

Essentials of Corporate Fraud by Tracy L. Coenen

Essentials of Corporate Governance by Sanjay Anand

Essentials of Enterprise Compliance by Susan D. Conway and Mara E. Conway

Essentials of Financial Risk Management by Karen A. Horcher

Essentials of Foreign Exchange Trading by James Chen

Essentials of Intellectual Property, Second Edition by Alexander I. Poltorak and Paul J. Lerner

Essentials of Managing Treasury by Karen A. Horcher

Essentials of Online Payment Security and Fraud Prevention by David Montague

Essentials of Risk Management in Finance by Anthony Tarantino with Deborah Cernauskas

Essentials of Sarbanes-Oxley by Sanjay Anand

Essentials of Supply Chain Management 3rd Edition by Michael Hugos

Essentials of Technical Analysis for Financial Markets by James Chen

Essentials of Venture Capital by Alexander Haislip

Essentials of Working Capital Management by James Sagner

For more information on any of the above titles, visit www.wiley.com.

Copyright © 2011 by John Wiley & Sons. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Hugos, Michael H. Essentials of supply chain management / Michael Hugos. – 3rd ed. p. cm. – (Essentials series) Includes index. ISBN 978-0-470-94218-5 (paperback); ISBN 978-1-118-10060-8 (ebk); ISBN 978-1-118-10061-5 (ebk); ISBN 978-1-118-10062-2 (ebk) 1. Business logistics. I. Title. HD38.5.H845 2011 658.7–dc22 2011008883

To my wife,Venetia

Book Manifesto

This book is dedicated to the idea that there is a set of highly effective concepts and practices that supply chain professionals can use to significantly increase the competitiveness and profitability of their companies. Even though supply chains and the technology they employ are changing rapidly, these concepts and practices remain highly relevant over time—they are the essentials of supply chain management.

From decades of personal experience in the field and from many conversations and reading the works of other supply chain professionals and researchers, I have distilled out these supply chain essentials. I know you are busy and your time is valuable so I make every attempt to get to the point quickly and explain things clearly and concisely. This book provides a framework to understand the structure and operation of any supply chain. It also provides guidance in how to make effective use of the flood of new supply chain technologies, and how to operate the constantly changing real-time supply chains that support our global economy.

Supply Chains as Massively Multi-Player Online Role Playing Games

One of the most promising new technologies for designing and coordinating the operation of supply chains comes from the world of online gaming. I’m referring to a type of game called a “massively multi-player online role playing game” (MMORPG). In these online games, players from all over the globe log into virtual worlds via the Internet; they learn different roles and skill sets, and come together in self-selecting teams to carry out missions in pursuit of common goals. Question: How is this any different than the challenges that await us in the global real-time economy we now inhabit?

If you’re part of the generation just starting out in business, answers to this question probably seem pretty obvious. If you’re part of a generation that’s already been in business for a while, answers might not seem so obvious (at first). Unfortunately, the word “game” is associated with activities that seem frivolous or unimportant. That is not what I mean here; please hold your judgement while I explain. Popular MMORPGs such as EVE-Online and World of Warcraft bring together hundreds of thousands of simultaneous online players from countries around the globe to interact in complex, realistic three dimensional worlds. What if we did the same to design, monitor and operate the global supply chains that support our real-time economy?

As a companion to this book I have collaborated with a group of people to create a massively multi-player online role playing game to use for gaining a better understanding of the dynamics that underlie supply chains and their operations. This game allows people from all over the world to collaborate in the design and operation of supply chains. In effect, the game creates one big “sandbox” where people can experiment with the effects of different supply chain designs. It can be used to model real or imaginary supply chains and simulate their operations. It will show the performance characteristics and operating costs of these supply chains under different circumstances. The purpose of this game is to engage people in an interactive experience that accelerates their learning and increases their mastery of the skills involved in supply chain management.

The ideas behind this game and its operation are explored in more detail in Chapter 7—Supply Chain Innovation for the Real-Time Economy. The game is titled “SCM Globe” and it can be accessed through my web site at www.MichaelHugos.com.

A Real-Time Supply Chain Simulation System

SCM Globe is a simulation game that provides a map of the world and on that map, people working together in supply chains can draw in their factories, warehouses, retail stores, and the transportation routes such as roads, railways, and harbors that connect those locations. Then people can define the production volumes of the factories, storage capacity of the warehouses, and movement capacity of the different modes of transportation. And finally, they can associate operating costs with each facility and each mode of transportation.

This supply chain game has some pretty challenging dynamics. Players need to figure out how to deliver products where and when they are needed to meet demand while at the same time minimizing inventory levels and holding down transportation and manufacturing costs. If you succeed in keeping down inventory levels and costs but fail to meet product demand, you lose. And if you always deliver the products but fail to keep the other factors under control, then your costs get out of hand and you don’t make any money.

If supply chain professionals and researchers can literally draw supply chain designs on an electronic map display and simulate the operations of those supply chains over some time period, they will quickly learn what designs produce the best results. And in the process, they will become immersed and involved in exploring supply chain dynamics. How long would it be before the people playing such a game developed high levels of skill in designing and operating high performance supply chains that responded effectively to changing market conditions? I invite you to try this game and see for yourself. This game is an evolving work in progress and I invite your feedback. Your feedback on what you like and what additional features you would like to see will guide the enhancement of this system.

To explore this real-time supply chain simulation system (or supply chain MMO depending on how you look at it) please visit my website, www.MichaelHugos.com, and click on the link to “SCM Global.”

MICHAEL HUGOS Chicago, IL USAwww.MichaelHugos.com Email: [email protected]

Preface

In this book my intention is to provide a clear framework for understanding the essential concepts of supply chain management. Then build on that understanding and show how to develop and deploy supply chains to achieve success in the fast-paced, global economy we all live in. Chapters 1, 2, and 3 provide an introduction to the basic principles and business activities that drive supply chain operations. Chapters 4, 5, and 6 discuss techniques, technologies, and metrics for use in managing a company’s internal supply chain operations and coordinating them with those of its supply chain partners.

Chapter 7 is an exploration of the ways that new technologies and new operating procedures can be used to significantly impact and improve the way supply chains are monitored and managed. Specific examples for this kind of innovation are provided.

Chapters 8 and 9 provide a pragmatic approach based on personal experience for defining supply chain opportunities and designing and building systems to effectively respond to those opportunities. I present two business case studies and show how a company in those situations could develop supply chain capabilities to best support its strategic goals. I am glad to answer your questions and discuss the merits of other ideas in addition to the ones I have presented. I can be contacted at my website, www.MichaelHugos.com.

The last chapter, Chapter 10, outlines the opportunities available to companies and alliances of companies that learn to work together to harness the power and potential of real-time supply chains. Real-time supply chains are the next step in the evolution of supply chains; they deliver a new level of operating efficiency and responsiveness to markets and customers. Real-time supply chains will support much of the world’s economic activity in the years to come.

MICHAEL HUGOS Center for Systems Innovation Chicago, Illinois USA June 2011

Chapter 1

Key Concepts of Supply Chain Management

After reading this chapter you will be able to

Appreciate what a supply chain is and what it doesUnderstand where your company fits in the supply chains it participates in and the role it plays in those supply chainsDiscuss ways to align your supply chain with your business strategyStart an intelligent conversation about the supply chain management issues in your company

This book is organized to give you a solid grounding in the “nuts and bolts” of supply chain management. The book explains the essential concepts and practices and then shows examples of how to put them to use. When you finish you will have a solid foundation in supply chain management to work from.

The first three chapters give you a working understanding of the key principles and business operations that drive any supply chain. The next four chapters present the techniques, technologies, and metrics to use to improve your internal operations and coordinate more effectively with your customers and suppliers in the supply chains your company is a part of. Chapter 7 presents specific ideas for using technologies such as social media and real-time simulation gaming to promote supply chain collaboration.

The last three chapters show you how to find supply chain opportunities and respond effectively to best capitalize on these opportunities. Case studies are used to illustrate supply chain challenges and to present solutions for those challenges. These case studies and their solutions bring together the material presented in the rest of the book and show how it applies to real-world business situations.