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Principles of supply chain management
Principles of supply chain management

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  • 作 者:Richard E. Crandall
  • 出 版 社:CRC Press/Taylor & Francis Group
  • 出版年份:2010
  • ISBN:
  • 页数:595 页
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PART Ⅰ:OVERVIEW OF SUPPLY CHAIN MANAGEMENT 3

1 Evolution of Supply Chains 3

Learning Outcomes 3

What Is a Supply Chain? 3

Importance of SCM 5

Evolution of Supply Chains 6

Early Supply Chains 6

Local Supply Chains 7

Global Supply Chains 8

Changing Government Orientation 11

State-Controlled Governments 11

Market-Driven Governments 11

Current Trends That Link Supply Chain Participants More Closely 12

Relationship Building 12

Customer Relationship Management 12

Supplier Relationship Management 13

Product Lifecycle Management 14

Electronic Business 14

Developing Economies 15

Outsourcing 16

Need for Quality Improvement 16

Changing Customer Demands 17

Decreasing Response Time 17

Lean Supply Chains to Reduce Waste 18

Current Developments in SCM 18

Power Has Shifted from Manufacturers to Retailers 18

Consolidation of Small,Local,or Regional Retailers into National Chains 19

Emergence of “Killer Category” Retailers 20

From a Make-and-Sell Mentality to a Sense-and-Respond Orientation 20

Obstacles to Supply Chain Integration 21

Need for Globalization 22

Complexity of Arranging Entities with Common Interests 22

Lack of Effective Interorganizational Systems 23

Need for Multiple Supply Chains within Companies 23

Lack of Trust between Participants 24

Examples of Companies with Successful Supply Chains 25

Focus on Strong Brands 27

Pay Attention to Balance 27

Use Downstream Data and Direct Store Delivery 28

Focus on Building Effective Network Relationships 28

Progress toward an Integrated Supply Chain 28

Supply Chain Models 28

Summary 31

Discussion Questions 32

References 33

2 Supply Chains as a System 37

Learning Outcomes 37

Introduction 37

Supply Chain Systems 39

Inputs 40

Transformation 40

Outputs 41

Manufacturing vs.Services 42

Types of Supply Chains 42

Physical Flow 44

Information Flow 45

Funds Flow 46

Relational Flow 47

Examples of Supply Chains in Different Industries 48

Internal and External Customers 49

Open Systems vs.Closed Systems 51

Effect of External Influences on Supply Chains 52

Obstacles and Enablers of Supply Chain Integration 53

Obstacles 54

Enablers 55

Performance Measurement 56

Allocation of Costs,Resources,and Benefits along the Supply Chain 59

Value Creation as the Ultimate Objective 60

Summary 63

Discussion Questions 64

References 64

PART Ⅱ:THE CUSTOMER PERSPECTIVE 69

3 Determining Customer Needs 69

Learning Outcomes 69

Introduction 69

Group Customers into Homogeneous Segments 71

Determine the Needs of the Ultimate Consumer 72

Product Needs 72

Service Needs 73

Marketing Mix 73

Manufacturing and Service Supply Chains 74

How Do You Accurately Determine Needs? 74

Past History 75

Market Research 76

Open System Scanning 77

Competition 77

Technology 78

Economy 79

Government 80

Social Trends 81

Business Environment 81

How Do You Forecast Demand? 83

Quantitative Forecasting Methods 83

Time-Series Methods 84

Causal Method 87

Qualitative Forecasting Methods 89

Survey Method 89

Delphi Method 89

Attributes of a Well-Designed Product 90

Functionality(Product Works to Satisfy Customers’ Needs) 90

Validity(Product Has Value and Functions at a Reasonable Cost) 91

Manufacturability(Product Can Be Efficiently Produced) 91

Quality(Product Has a Variety of Quality Attributes) 91

Serviceability(Product Can Be Serviced during Its Effective Life) 92

Recyclability(Product Can Be Recycled along the Reverse Logistics Supply Chain) 92

Product Design Approaches 93

Quality Function Deployment 93

Concurrent Engineering 94

Design for Manufacturability 95

Design for Sustainability 95

Determine the Number of Supply Chains Needed within a Company 96

Align with Customer Segment 97

Align with Product/Service Bundle 98

Align with Supplier Category 98

Performance Measurement 99

Determine the Needs of Internal Customers 99

Conclusion 100

Discussion Questions 101

References 101

4 A System to Meet Customer Needs 105

Learning Outcomes 105

What Is Customer Relationship Management? 106

Global Supply Chain Forum Model 107

How CRM Can Be Used to Design a Supply Chain? 108

Origins of CRM 108

What Can CRM Do? 110

Benefits 110

CRM Processes 111

Problems 112

CRM’s Future 115

Product Lifecycle Management 115

What Is PLM? 116

How Did PLM Evolve? 116

What Does PLM Include? 116

What Does PLM Not Include? 117

What Are the Benefits of PLM? 118

What Is the Present Status of PLM? 119

What Are the Obstacles? 119

What Does the Future Hold? 120

Supply Chain Mapping 121

The Basic(Generic) Supply Chain 121

Variations for Different Industries 122

Supply Chain Mapping 123

Determining Resource Requirements 123

Facilities 125

Equipment 125

Employees 127

Inventory 127

Information Systems 128

Designing Processes to Match with Products 128

Make-to-Stock 128

Assemble-to-Order 129

Make-to-Order 129

Engineer-to-Order 130

Determining the Mix of “Make” and “Buy” 130

Core Competency Concept 130

Total Cost of Ownership 131

Cost Reduction vs.Revenue Increase Considerations 132

Effect of Outsourcing Movement 133

Aligning Entities along the Supply Chain 133

Entities to Be Involved 134

Allocation of Authority and Responsibility among Entities 134

Collaboration Process 135

Implementation Plan 136

Evaluating the System Design 136

Will It Accomplish Its Objectives? 136

Is It Sustainable? 137

Is It Flexible? 138

Summary 139

Discussion Questions 139

References 140

5 Demand Management 145

Learning Outcomes 145

Introduction 145

Definition of Demand Management 147

Importance of Demand Management 149

Managing Demand 150

Accept All Demand 150

Select the Types of Demand to Accept 150

Solicit External Input in Forming Demand Patterns 150

Design the Form in Which Demand Will Be Accepted 151

Impose Constraints on Demand Submission 151

Managing Supply 151

Select a Demand Management Strategy 151

Develop a Demand Forecasting System 152

Determine the Resource Requirements to Meet the Demand 152

Merging Supply and Demand into a Demand Management Process 153

Develop Sales and Operations Planning to Match Short-Term Supply and Demand 153

Collaboration among Supply Chain Participants 153

Demand Management in Manufacturing 154

Demand Management in Services 156

Proposed Demand Management Strategies 158

Factors That Affect the Selection of a Demand Management Strategy 160

Resources’ Value 160

Type of Demand 162

Top Management Strategies 162

Relationship between Factors and Strategies 163

Model for Integrating Demand and Supply Management 165

Programs Used to Implement Demand Management Strategies 171

Provide Strategy Programs 173

Match Strategy Programs 173

Influence Strategy Programs 176

Control Strategy Programs 176

Demand Management along the Supply Chain 177

Retail 177

Wholesale 178

Manufacturer 178

Mining and Agriculture 178

Summary 178

Discussion Questions 179

References 180

PART Ⅲ:THE SUPPLY PERSPECTIVE——DISTRIBUTION,PRODUCTION,AND PROCUREMENT 185

6 Distribution and Retailing 185

Learning Outcomes 185

Introduction 185

Retail Function 186

History of Retailing 186

Retail Services 191

Characteristics of the Industry 191

Customers and Markets 193

Outputs 193

Inputs 194

Transformation Process 194

Impact on Operations Management 196

Designing the Retail Process 196

Strategic Orientation 197

Critical Design Points——Keys to Success 198

Additional Factors to Consider in Retail Store Design 202

A Multidiscipline Project 202

Continuing Need to Readjust or Redesign 202

E-Commerce Considerations(Direct vs.Indirect Selling) 203

Strategic or Long-Term Considerations 203

Managing a Retail Business 203

Determine the Expected Demand 203

Plan Capacity to Meet Demand 204

Implement the Operating Plan 205

Measure Performance 205

Replan for the Next Period 206

Retail and Inventory Management 206

Value 206

Availability 206

Variety 206

Presentation 206

Service 207

Response Time 207

Present Situation in Retailing 207

Future in Retailing 209

Role of Wholesalers and DCs 209

Ordering 210

Receiving 210

Stocking 210

Picking 211

Loading the Trucks 211

Transport to Stores 211

Unloading and Display at Stores 211

Critical Success Factors for Distribution 212

Inventory within Distribution Functions 212

Inventory Management between Retailer and Distributor 213

Technology in Distribution Functions 213

At the Retail Store 213

Movement of Goods 214

At the Distribution Center 214

Positioning Services within the Distribution Functions 215

Pre-Sale Services 215

Post-Sale Services 215

Role of Third-Party Service Providers 216

Predominant Delivery Methods 216

Truck——Privately Owned or Third-Party Carriers 216

Rail——For Selected Goods 218

Waterways 218

Air 218

Pipeline 219

Parcel 219

Transmission Lines 219

Fiber-Optic Cable Networks 219

Third-Party Service Providers 220

Importance of RDCs 220

Trend toward Outsourcing the Distribution Function 221

Major Companies——UPS,FedEx,Ryder 222

Distribution Performance Measurement 222

Financial Performance Measures 222

Operating Performance Measures 222

Collaboration Performance Measures 222

Retailer-Distributor Relationship 223

Summary 223

Discussion Questions 224

References 224

7 Production and Service Processes 227

Learning Outcomes 227

Introduction 227

Evolution of the Production Function 229

From Craft to Mass Production 230

From Mass Production to Mass Customization 231

Critical Success Factors for Manufacturers 231

Cost and Efficiency 232

Quality 232

Responsiveness——Timing of Delivery 232

Responsiveness——Product/Service Mix 232

Flexibility 232

Agility 233

Information Technology 233

Manufacturing Strategies 233

Make-to-Stock 234

Locate-to-Order 234

Assemble-to-Order 235

Make-to-Order 235

Engineer-to-Order 235

Batch to Lean Operations 236

Present Batch Flow 236

Machine Breakdowns 237

Supplier Failures 237

Worker Flexibility 238

Customer Lead Times 238

Customer Order Size 238

Proposed Lean Production Flow 238

Customer Lead Time 239

Extra Available Space 239

Faster Detection of Quality Problems 239

Ease of Transferring Operators 240

Reduced Scheduling Requirements 240

Smaller Lot Sizes 240

No Buildup of WIP Inventory 240

Empowered Employees 240

Reduced Equipment Breakdowns 241

Reduced Late Material Deliveries 241

Reduced Write-Off of Inventory 241

Make or Buy Strategies 241

Vertical Integration 241

Outsourcing 242

Capacity Planning 245

How Much Capacity?When?What Kind? 245

Location and Ownership 245

Service Production Strategies 246

Relationships with Downstream Customers 248

From Transactions to Processes 248

Transactions vs.Processes 249

Basic Processes of a Business 250

Benefits of a Process Orientation 250

Effect of Process Orientation 251

Organizational Structure 251

Strategies 252

Knowledge Management 253

Change Management 253

Trends in Production 253

From Manual to Automated 254

From Domestic to Global 254

From Standard Products to Customized 254

Postponement 254

Sales and Operations Planning 255

Performance Measurement 255

As Measured by Accounting 255

As Measured by Production 256

Measures along the Supply Chain 256

Summary 256

Discussion Questions 257

References 258

8 Procurement/Purchasing 261

Learning Outcomes 261

Introduction 261

Role of Procurement in the Supply Chain 262

Traditional Purchasing 263

Contemporary Purchasing 264

Critical Success Factors for Procurement 265

Functionality 265

Availability 265

Cost 266

Quality 266

Match Inflow with Outflow 266

Reduce Variances in Delivery 267

Increase Supplier Dependability 267

Reduce the Bullwhip Effect 267

Become an Intercompany Facilitator 268

Find Sustainable Suppliers 268

Changing Role of Purchasing 268

Purchasing Functions 271

Product Design 271

Product Specifications 271

New Product Introduction 272

Target Costing 274

Supplier Selection 275

Supplier Location 275

Inventory Management 276

Purchasing Process 277

Supplier Evaluation 278

Supplier Relationship Management 278

Supply Chain Coordination/Collaboration 278

Purchasing at Different Stages of the Supply Chain 279

Consumer 279

Retail 279

Wholesale 280

Manufacturer 280

Mining and Agriculture 281

Services 281

Dealing with Offshore Outsourcing 282

As a Strategic Concept 282

TCO Considerations 284

As a Project,with Project Management Needs 284

Other Considerations——Intangible Costs and Public Acceptance 285

Supplier Location as a Strategy for Entering an Offshore Market 285

Performance Measurement 286

Traditional——Positive Purchase Price Variance 286

Contemporary——Enhanced Value from the Supply Chain for the Consumer 286

Future of Purchasing 287

Summary 288

Discussion Questions 289

References 290

9 Reverse Supply Chains 293

Learning Outcomes 293

Introduction 293

Description of Reverse Supply Chain Networks 293

Benefits of Reverse Logistics 295

Barriers to Reverse Logistics 295

Continuation of Forward Supply Chains 296

History of Reverse Logistics 298

Principal Drivers of the Movement 299

Individual Consumers 299

Individual Businesses 300

Society——The Community 300

Society as a Group 300

Environmental Concerns 301

Resource Scarcity Concerns 301

Business Sector 302

Economic Benefits Possible 302

New Businesses,Even New Industries,Possible 302

Government——At All Levels 303

Activities in Reverse Logistics 303

Service——Assist Customer to Assure Proper Use of Product 303

Returns——Product Is Intact and Needs Repackaging or Relocation 303

Restoration——Product Needs Minor Modification or Repair 304

Remanufacturing——Product Needs Overhaul and Major Rebuilding 304

Recycling——Product Components Needs Reconstitution as Part of Another Product 305

Disposal——Product Remains Need to Return to Natural State 305

Hazardous Waste Disposal 305

Role of Private Industry 306

New Paradigms in Product Design(Design for Sustainability) 306

Design and Operate Green Supply Chains 307

Develop Systems to Manage Reverse Logistics 307

Participate in Joint Ventures to Seek Social Objectives 307

Role of Government 308

Research——To Identify Threats and Opportunities 308

Legislation——To Standardize Business Requirements 310

Regulation——To Monitor Performance 311

Participation——To Encourage and Support Ongoing Programs 312

Role of Consumer 312

Participant in RSC Programs 312

Educated Consumer 312

Supporter of Green Supply Chain Efforts 313

Reverse Logistics Network 313

Continuation of the Forward Supply Chain 313

Operate in an Open System Environment 314

Heavily Outsourced by Major Businesses 315

Support and Service 315

Returns 315

Repairs 315

Remanufacture 316

Rework 316

Recycle 316

Need for a Lifecycle System Approach 316

Need for IT 319

Other Considerations in Designing Reverse Supply Chains 319

Future 320

Growth in Amount of Materials Recycled 320

Increase in Number of Companies Performing Reverse Logistics Activities 320

Joint Ventures between Private Business and Government 321

Increased Emphasis on Prevention,Not Just Reusing 321

More Companies Will Design Integrated Reverse Logistics Systems 321

Summary 321

Discussion Questions 322

References 322

PART Ⅳ:INTEGRATED SUPPLY CHAINS 327

10 The Need to Integrate 327

Expected Outcomes 327

Introduction 327

Setting the Stage 329

Obstacles to Integration 330

Status of Integration Efforts 331

From Mass Production to Mass Customization 333

From Craft to Mass Production 334

Prelude to Mass Customization 335

From Vertical Integration to Virtual Integration 337

From Homogeneous Cultures to Diverse Cultures 339

Drivers of Change 340

Global Competition 340

Global Markets 341

Economic Advantage 341

Lower Costs 341

Higher Revenues 342

Relationships and Trust among Supply Chain Participants 342

Trust between Individuals 342

Formal Contracts or Agreements 342

Common Interests or Projects(Enforced Trust) 343

Involves Change Management 343

Change Is Difficult within a Company 343

Embedded Culture 343

Policies and Procedures 344

Organization Structure 344

Customer Relationships 345

Supplier Relationships 345

Union Relationships 345

Change Is More Difficult for a Community 346

Company-Community Relationship 346

Difficulty in Changing Laws and Regulations 346

Difficulty in Changing Infrastructure 347

Change Is Most Difficult for an Entire Country 347

Political Implications 347

Regional Differences 347

Steps in the Integration Process 347

Build Interfaces with Customers and Suppliers 348

Change Interfaces to Interlaces to Make the Relationships Closer 348

Change Interlaces to Integrated Relationships 348

Need for Strategic Planning 348

Categories of Operations 349

Normal Operations 350

Improvement Programs 350

Problem-Solving Programs 350

Crisis Management 350

Need for a Multi-Year Project Plan 350

Supply Chain Integration Is a Long-Term Program 351

Requires a Coordinated Multi-Team,Multi-Entity Effort 351

Performance Measurement across the Supply Chain 351

Integration Requires Sharing 351

Responsibilities 351

Resources 352

Sharing Requires Measurement 352

Summary 352

Discussion Questions 352

References 353

11 Why Integration Is Difficult 357

Learning Outcomes 357

Introduction 357

Determining Strategic Objectives 358

Evaluating the Potential Return on Investment 358

Uncertainty of Benefits 359

Tangible,or Direct 359

Intangible,or Indirect 359

Uncertainty of Costs 360

Product Costs 360

Support(Overhead) Costs 360

Uncertainty of Assets Employed 360

Designing for Participant Differences 361

Participants Are Not Equal 361

Commitment 361

Contribution 362

Different Roles——Drivers and Followers 362

Technical Differences 362

Size 362

Proximity 362

Type of Operation 363

Attitudinal Differences 363

Culture 363

Mission and Strategy 363

Need for Multiple Supply Chains 364

Different Customer Segments 364

Different Supplier Segments 365

Separating Interwoven Networks 366

Selecting and Implementing Technology 366

Product and Service Processes 367

Remove Barriers 367

Eliminate Redundancy 367

Develop Compatible Processes 368

Strive for Effectiveness and Effciency 368

Interorganizational Systems 368

Lack of Systems Compatibility 368

Lack of Information 368

Lack of a System 369

Financial Funds Flow 369

Realigning Infrastructure 370

Internal Organization 370

Effect of Outsourcing Movement 371

External Organization 371

Policies and Procedures 372

Physical Infrastructure 372

Transforming Company Cultures 372

Internal 372

External 373

Building Relationships 373

Communicate 373

Coordinate 373

Cooperate 373

Collaborate 374

Why Do Companies Not Collaborate? 375

Lack of Trust 375

Measuring Performance 378

Maintaining the System 379

During the Implementation Process 379

During the Operation of the Supply Chain 379

Extension into Reverse Logistics 380

Obstacles to International SCM 380

Summary 381

Discussion Questions 381

References 382

12 How to Build an Integrated Supply Chain 385

Learning Outcomes 385

Introduction 385

Who Manages the Supply Chain? 386

Past and Future of Supply Chain Management 386

Present Supply Chains 388

The World of Lean Production 389

Product 390

Purchasing Process 390

Production Process 390

Delivery Process 391

Demand Variation 391

Stages in Moving from Functional-Focus to Cross-Enterprise Collaboration 391

A Comprehensive Supply Chain Model 393

Decisions Needed to Achieve a Lean and Agile Supply Chain 395

Commitment 395

Concept 396

Configuration 397

Top Management 397

Marketing 398

Purchasing 398

Manufacturing 399

Distribution 400

Finance and Accounting 400

Communication 401

Culture 402

Customization 403

Integrated Supply Chain 403

Coordination 404

Cooperation 404

Collaboration 410

Steps in the Change Process 411

Investigate 412

Involve 412

Include 412

Initiate 412

Invigorate 412

Implement 413

Integrate 413

Institutionalize 413

Innovate 413

A Look Ahead 413

Complexity 414

Clairvoyance 415

Summary 417

Discussion Questions 417

References 417

PART Ⅴ:THE FINANCIAL AND INFORMATION TECHNOLOGY PERSPECTIVES 423

13 Information Flow along the Supply Chain 423

Learning Outcomes 423

Introduction 423

Need for Information Flow 424

Types of Information Transmitted 426

Upstream Suppliers 426

Midstream Supply Chains 426

Downstream Customers 427

Reverse Supply Chain 427

Supply Chain Connectivity 427

Intracompany Technologies Used 429

Data Capture 430

Computer-Aided Design 430

Point-of-Sale Terminals 430

Automatic Identification Systems 431

Groupware 432

Data Storage and Retrieval 433

Data Manipulation and Reporting——ERP Systems 433

Supply Chain Direct Links 435

Customer Relationship Management 435

Supplier Relationship Management 435

Linking Technologies 436

Interorganizational Systems 436

EDI and Internet EDI 436

Automatic Identification Systems 437

Linking Applications 437

Video Conferencing 437

Sales and Operations Planning 438

Product Lifecycle Management 439

Third-Party Services 439

Service-Oriented Architecture 439

Software as a Service 440

Cloud Computing 441

Benefits of Information Technologies 442

Tangible Benefits 443

Increase Revenues 443

Reduce Product Costs 443

Reduce Transaction Costs 443

Reduce Product Development Lead Time 443

Reduce Capital Investment Costs 444

Intangible Benefits 444

Improve Customer Relations 444

Improve Decision Making 444

Streamline Administrative Processes 444

Integrate Company Planning and Execution 444

Barriers to IT Adoption 445

Technological Obstacles 445

Standards Interoperability 445

Back-End Interoperability 446

Scope of Applications 446

Security 446

Managerial Obstacles 447

Power Structure 447

Trust 448

Economic Issues 448

Employee Acceptance 448

Societal Obstacles 449

Model of an Integrated Supply Chain Information System 449

Summary 450

Discussion Questions 451

References 451

14 Funds Flow along the Supply Chain 455

Learning Outcomes 455

Overview of the Flow of Funds 455

Need for Electronic Funds Flow 456

Cash Is King 456

Domestic Supply Chains Require EFT 457

International Supply Chains Require EFT 457

Benefits and Obstacles of Funds Flow in Supply Chains 458

Flows in a Supply Chain 458

Benefits of Improved Funds Flow 459

Obstacles 459

Participants Other Than Members of the Supply Chain 460

Banks 461

Value-Added Networks 461

Performance Measurement 461

Financial Accounting Measures——Current Ratio 461

Management Accounting Measures——Days of Receivables,Inventory,Payables 462

Contemporary Measures——Cash-to-Cash Cycle Time 462

Effect of Production Strategies on Funds Flow 464

Effect of Outsourcing on Product Costs and Capital Requirements 465

Compare Companies——Retailers vs.Manufacturers 465

Financial Institutions’ Cash Supply Chain 465

Technologies Used 466

Interorganizational Systems 466

Components of an IOS 466

Benefits 468

Obstacles 468

Evolution 469

Future 470

Electronic Data Interchange 471

Benefits 472

Obstacles 473

Internet EDI 473

Future 473

New Concepts in Funds Flow 474

Funds Flow in the Reverse Supply Chain 475

A Comprehensive Example 475

Components of a Financial Statement 476

Analyzing the Cash Flow Statement 476

Looking at Alternatives 479

Summary 481

Discussion Questions 481

References 482

15 ROI for Supply Chains and Other Issues 485

Learning Outcomes 485

Supply Chain Configurations 486

Programs Requiring Close Supply Chain Relationships 487

Need to Evaluate Supply Chain ROI 488

Tangible Benefits 488

Reduced Inventory 488

Reduced Cycle Times 488

Improved Customer Service 489

Improved Quality 489

Tangible Costs 489

Communications 489

Retraining Internal Employees 489

Restructure Supplier Network 489

Design Customer Network 490

Capital Investment 490

Indirect Costs 490

Meetings Required to Organize Customer and Supplier Relationships 490

Programs to Change Internal Culture 491

Changes in Organization Structure 491

Realignment of Roles of Supply Chain Participants 491

Cash Flow and Time Value of Money Considerations 491

Intangible Benefits 492

Integrated Flow of Goods and Services 492

Faster Resolution of Problems 492

Match Customer Wants with Products Provided 493

Reduced Excess Capacity along the Supply Chain 493

Increased Knowledge 493

Intangible Costs 494

Loss of Confidential Information 494

Increased Awareness of Inequitable Treatment among Participants 494

Discrepancy between Contribution and Payoff among Participants 494

Legal Actions 494

Plan for Equitable Distribution among Members 495

How to Organize? 495

How to Distribute? 496

Role of Prime Mover in the Supply Chain 496

Organize 496

Select the Team 497

Monitor Ongoing Operations 498

Evaluate Performance 498

Initiate Change 498

Changes in Supply Chain Composition 499

Dictated by Prime Mover 499

Consensus of the Supply Chain Participants 500

Consultation with an Outside Adviser 500

Mediation by Third Party 500

Legal Action 500

Case Studies 500

Use of Accounting Records 501

RFID Implementation 501

Cost Reductions with Investment Requirements 502

Supply Chain Finance 502

Benefits of Supply Chain Collaboration 503

Summary 503

Discussion Questions 504

References 504

PART Ⅵ:THE FUTURE 509

16 Trends in Supply Chain Development and Management 509

Learning Outcomes 509

From the Past to the Present 510

From the American Revolution to World War Ⅱ 510

From World War Ⅱ until the Present 511

Evolution of Critical Success Factors in the United States 512

Beginning(from First Settlements through 1800) 514

Industrial Revolution(1840s-1890s) 515

Growth and Recovery(1890s-1930s) 515

Mass Production(1940s-1950s) 515

Arisings(1960s-1970s) 516

Awakening(1980s) 516

Globalization Ⅰ(1990s) 516

Globalization Ⅱ and Mass Customization(2000 and After) 516

Major Drivers of Change in Supply Chains 517

Global Competition 517

Outsourcing 518

Increased Complexity and Risk 518

Changes Needed in the Future 518

Global Business Perspective 519

Balanced Approach to Offshore Outsourcing 520

Total Cost of Ownership 520

Risk Management 521

Other Issues 521

Continuing Changes in Technology 522

Retail Operations 522

Demand Forecasting 522

Transportation and Distribution 523

Information Systems 523

From Special-Purpose to General-Purpose Resources 524

Vanishing Boundaries between Manufacturing and Services 525

Process Evolution from Transactions to Integrated 526

Transactions vs.Processes 526

Benefits of a Process Orientation 527

Infrastructure Refinements 527

From Vertical to Horizontal Organizations 528

From Rigid Rules to Flexible Policies and Procedures 528

From Tacit Knowledge to Implicit Knowledge 529

From Financial Accounting to Management Accounting 529

Culture and Employees 530

From Passive or Obstructing Culture to Engaged and Receptive Culture 530

Employees——From Specialized to Empowered 531

Supply Chain Relationships 532

From Adversarial to Collaborative 532

Trust and Distrust 533

Emergence of Third-Party Supply Chain Coordinators 535

Summary 536

Discussion Questions 537

References 537

17 Preparation for the Future 539

Learning Outcomes 539

Recognize the Need to Adapt to Changing Conditions 540

Open System Environment 540

Globalization 540

Competition 540

Economy 541

Technology 541

Customers 541

Employees 542

New Measure of Success——Sustainability 542

Financial Success 542

Social Responsibility 543

Environment 544

Integrating Financial Results,Society Equity,and Sustainability 544

Identify What Needs to Be Done 544

ISM Study 545

IBM and IW Study 546

APICS E&R Foundation Inc 548

Summary of Challenges 548

Role of Government 550

Environment 550

Business Ethics 551

Product Safety 551

Social Equity 552

Infrastructure 552

Role of Third Parties 553

Direct Support——Outsourcing 553

Indirect Support——Financing and Insurance 553

Advisory——Consulting and Training 553

Analyst——Measure Performance and Identify Needs 553

Manager——Virtual Holding Company 554

Future Technology——Information Technology Oriented 554

ERP Extension 554

Service-Oriented Architecture 555

Internet Processes 555

Interorganizational Systems 555

Process Technology 556

Non-IT Technology 556

Build Strategic and Operational Plans 557

Continue the Drive for Collaboration 557

Develop Performance Measures for Supply Chain Management 557

Integrate Delivery Effectiveness Measures 558

Integrate Cost and Quality Measures 559

Supplier Profitability 559

Effectiveness of Supply Chain Integration 559

Structure the Organization to Manage Change 560

Purchasing 560

Integrate All Functions 562

Educate the Work Force 562

Marketing 562

Overcome Inertia 563

Modify the Culture to Accept Change 563

Drive for Sustainability 564

Sustainability 564

Triple Bottom Line 564

Beyond the Triple Bottom Line 565

Why Should Business Take the Lead? 566

Need for Alliances 566

Benefits and Obstacles 567

Sustainability in the Future 567

Wisdom——Education and Training 568

Definitions 568

From Data to Information 569

From Information to Knowledge 570

From Knowledge to Wisdom 570

Some Ways to Learn 571

Obstacles to Knowledge Transfer 572

Will Knowledge Replace “Things”? 573

Vanishing Boundaries between Manufacturing and Services 574

Application of Chaos Theory to Business 575

Summary 576

Discussion Questions 577

References 577

Index 581

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