Supply Chain Management (Paperback, 2nd Asia Edition)

PREFACE IX

1 INTRODUCTION TO SUPPLY CHAIN MANAGEMENT 1

What Is Supply Chain Management (SCM)?, 3

Supply Chain Leader’s Box: Amazon.com, 9

The Boundary-Spanning Nature of SCM, 9

The Rise of SCM, 12

Supply Chain Leader’s Box: Dell Computer Corporation, 13

Characteristics of a Competitive Supply Chain, 14

Global Insights Box: Zara, 15

Trends in SCM, 16

Supply Chain Leader’s Box: Wal-Mart, 16

Big Data Analytics Box: Tesco, 18

Managerial Insights Box?Outsourcing Innovation: Goldcorp Inc., 22

Careers in SCM and Professional Organizations, 23

Chapter Highlights, 23

Key Terms, 24

Discussion Questions, 24

Case Study: McNulty’s Muscular Materials (MMM), 24

Case Questions, 24

References, 25

2 SUPPLY CHAIN STRATEGY 26

What Is Supply Chain Strategy?, 28

Achieving a Competitive Advantage, 29

Supply Chain Leader’s Box: Wal-Mart, 30

Global Insights Box: Toyota Motor Corporation, 32

Building Blocks of Supply Chain Strategy, 32

Managerial Insights Box?Outsourcing Alliances: Li & Fung Ltd., 38

Supply Chain Strategic Design, 39

Supply Chain Leader’s Box: Barlean’s Organic Oils, 42

Strategic Considerations, 43

Big Data Analytics Box: Amazon, 44

Productivity as a Measure of Competitiveness, 44

Chapter Highlights, 46

Key Terms, 47

Discussion Questions, 47

Problems, 47

Case Study: Surplus Styles, 47

Case Questions, 48

References, 48

3 NETWORK AND SYSTEM DESIGN 49

The Supply Chain System, 51

Supply Chain Leader’s Box?Moving to Process Thinking: LG Electronics, 54

Understanding Processes: Theory of Constraints (TOC), 54

Integration of Supply Chain Processes, 58

Designing Supply Chain Networks, 60

Managerial Insights Box: Coca-Cola, 61

Big Data Analytics Box: Segmentation in Retail, 64

Enterprise Resource Planning (ERP), 64

Chapter Highlights, 67

Key Terms, 67

Discussion Questions, 67

Problems, 67

Case Study: Boca Electronics, LLC, 68

Case Questions, 68

References, 69

4 MARKETING 70

What Is Marketing?, 72

Supply Chain Leader’s Box: Gap Inc., 73

Supply Chain Leader’s Box?Accommodating Changing Customer

Preferences: PepsiCo, 75

Customer-Driven Supply Chains, 76

Managerial Insight’s Box?Understanding the Customer: Target, 78

Delivering Value to Customers, 80

Global Insights Box?Global Customer Service: Coca-Cola Japan, 84

Channels of Distribution, 85

Managerial Insights Box?Changing the Distribution Channel: Steinway

Pianos, 87

Big Data Analytics Box: Oasis, 90

Chapter Highlights, 90

Key Terms, 91

Discussion Questions, 91

Case Study: Gizmo, 91

Case Questions, 91

References, 92

5 OPERATIONS MANAGEMENT 93

What Is Operations Management (OM)?, 95

Supply Chain Leader’s Box: Wal-Mart, 98

Contents v

Product Design, 99

Big Data Analytics Box: Honda, 100

Global Insights Box: Ryanair, 102

Process Design, 105

Managerial Insights Box?A New Manufacturing Process: Rapid

Manufacturing, 108

Facility Layout, 108

Managerial Insights Box: Mazzi’s versus Totino’s Pizza, 110

Line Balancing in Product Layouts, 111

Process Automation, 114

Global Insights Box: KUKA Robotics Corp., 115

Chapter Highlights, 116

Key Terms, 116

Discussion Questions, 116

Problems, 116

References, 117

6 SOURCING 118

What Is Sourcing?, 120

Supply Chain Leader’s Box?Co-Creation: The Auto Industry, 123

The Sourcing Function, 123

Sourcing and SCM, 125

Global Insights Box - Outsourcing Analytics: Accenture, 126

Supply Chain Leader’s Box?Risk Management: IBM, 127

Managerial Insights Box?Outsourcing Alliances: Roots, 130

Big Data Analytics Box: FedEx, 132

Measuring Sourcing Performance, 132

Chapter Highlights, 133

Key Terms, 134

Discussion Questions, 134

Problems, 134

Class Exercise: Toyota, 135

Case Study: Snedeker Global Cruises, 135

Case Questions, 136

References, 136

7 LOGISTICS 137

What Is Logistics?, 139

Supply Chain Leader’s Box: United Parcel Service (UPS), 140

Logistics Tasks, 145

Big Data Analytics Box?Driverless Cars: Uber, 145

Transportation, 147

Supply Chain Leader’s Box: Sysco, 148

Global Insights Box?Rail Service Between China and Europe: “Northeast

Passage”, 150

Warehousing, 150

Third-Party Logistics (3PL) Providers, 153

Chapter Highlights, 153

Key Terms, 154

Discussion Questions, 154

Problems, 154

Case Study: Strategic Solutions Inc., 154

Case Questions, 156

References, 156

8 FORECASTING AND DEMAND PLANNING 157

What Is Forecasting?, 159

Managerial Insights Box: Forecasting beyond Widgets, 160

Global Insights Box?Matching Supply and Demand: World Health

Organization (WHO), 162

The Forecasting Process, 163

Managerial Insights Box: Predictive Analytics, 165

Types of Forecasting Methods, 166

Big Data Analytics Box?Improving Weather Forecasting: NOAA, 168

Time Series Forecasting Models, 169

Causal Models, 175

Measuring Forecast Accuracy, 178

Collaborative Forecasting and Demand Planning, 180

Supply Chain Leader’s Box?Using Collaborative Technology: Li &

Fung, 181

Chapter Highlights, 183

Key Terms, 183

Discussion Questions, 183

Problems, 184

Case Study: Speedy Automotive, 185

Case Questions, 187

References, 187

9 INVENTORY MANAGEMENT 188

Basics of Inventory Management, 190

Managerial Insights Box?Service Inventory: Zoots, 191

Supply Chain Leader’s Box: John Deere & Company, 195

Inventory Systems, 195

Fixed-Order Quantity Systems, 198

Big Data Analytics Box?Analytics Driven Inventory: Dell, 205

Fixed-Time Period Systems, 205

Independent versus Dependent Demand, 207

Global Insights Box: Intel Corporation, 208

Managing Supply Chain Inventory, 208

Contents vii

Chapter Highlights, 212

Key Terms, 212

Discussion Questions, 212

Problems, 213

References, 213

10 LEAN SYSTEMS AND SIX-SIGMA QUALITY 214

What Is Lean?, 216

Big Data Analytics Box: General Electric, 218

Supply Chain Leader’s Box: U.S. Army, 219

Lean Production, 220

Global Insights Box: UPS, 221

Respect for People, 223

Total Quality Management (TQM), 224

Managerial Insights Box: Lean Tools in the Popular Press, 227

Statistical Quality Control (SQC), 228

Supply Chain Leader’s Box: Intel Corporation, 229

Six Sigma Quality, 236

The Lean Six Sigma Supply Chain, 237

Chapter Highlights, 240

Key Terms, 240

Discussion Questions, 240

Problems, 241

Case Study: Buckeye Technologies, 242

Case Questions, 242

References, 243

11 SUPPLY CHAIN RELATIONSHIP MANAGEMENT 244

Supply Chain Relationships, 246

Big Data Analytics Box?The Network Effect: Amazon, 249

Supply Chain Leaders’ Box?Open Innovation: Proctor & Gamble, 251

The Role of Trust, 252

Global Insights Box?Growth Through Partnership: Coca-Cola

in Africa, 256

Managing Conflict and Dispute Resolution, 256

Managerial Insights Box: Commodity Swapping, 260

Negotiation Concepts, Styles, and Tactics, 260

Relationship Management in Practice, 265

Chapter Highlights, 267

Key Terms, 267

Discussion Questions, 267

Case Study: Lucid v. Black Box, 268

Case Questions, 268

References, 268

12 GLOBAL SUPPLY CHAIN MANAGEMENT 270

Global Supply Chain Management, 272

Supply Chain Leader’s Box?Challenges of Global

Culture: Wal-Mart, 273

Global Market Challenges, 276

Managerial Insights Box: Coca-Cola’s China Branding Challenge, 278

Global Infrastructure Design, 280

Big Data Analytics Box?Supplier Risk: Cisco, 281

Cost Considerations, 282

Managerial Insights Box?Beyond Cost: BMW, 283

Political and Economic Factors, 284

Chapter Highlights, 286

Key Terms, 286

Discussion Questions, 287

Case Study: Wu’s Brew Works, 287

Case Questions, 291

References, 292

13 SUSTAINABLE SUPPLY CHAIN MANAGEMENT 293

What Is Sustainability?, 295

Global Insights Box: The Great Pacific Garbage Patch, 296

Supply Chain Leaders Box: Fibria Celulose, 298

Evaluating Sustainability in SCM, 302

Big Data Analytics Box: Coca-Cola, 310

Sustainability in Practice, 312

Managerial Insights Box: Carbon Fiber Auto Parts, 313

Chapter Highlights, 316

Key Terms, 316

Discussion Questions, 317

Case Study: Haitian Oil, 317

Case Questions, 318

References, 318

APPENDIX 319

GLOSSARY 321

INDEX 329