Supply Chain Management concepts, techniques and practices ; enhancing value through collaboration

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1. Verfasser: Li, Ling (VerfasserIn)
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Veröffentlicht: New Jersey World Scientific Publ. 2007
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adam_text Contents Dedication ........................................................................................................... v Preface ............................................................................................................... vii Acknowledgements ............................................................................................xi PART ONE: CONCEPTS AND STRATEGIC ISSUES 1. Supply Chain Management: An Evolutionary View ....................................3 1.1 Overview of Supply Chain Management .............................................3 1.2 Supply Chain Management in Е -Biz Environment. Virtual Integration ............................................................................................7 1.3 An Evolution: From Material Management to Supply Chain Management .........................................................................................9 1.4 Supply Chain Management Models ..................................................12 1.4.1 Competitive priorities and manufacturing strategy ..................12 1.4.2 Efficient supply chain and responsive supply chain ................13 1.4.3 Clock-speed of product, process, and organization life cycles .................................................................................14 1.4.4 Pull and push processes ............................................................15 1.5 Collaborative Planning, Forecasting, and Replenishment (CPFR) - An е -Biz Solution to Transforming Demand .....................17 1.5.1 The basics of CPFR ..................................................................17 1.5.2 Major activities of CPFR ..........................................................19 1.5.3 CPFR in practice .......................................................................20 1.6 Issues of Supply Chain Management in a Global Setting ..................21 1.6.1 SCM issues in the US ...............................................................22 1.6.2 SCM issues in Europe ..............................................................22 ХШ xiv Supply Chain Management: Concepts, Techniques, and Practices 1.6.3 SCM issues in Asia ...................................................................24 1.6.4 SCM Issues in Latin America ...................................................25 1.7 Summary .............................................................................................26 1.7.1 Supply chain management challenges ......................................26 1.7.2 Road map for supply chain management .................................27 References ..................................................................................................29 2. The Right Design of Supply Chain: Examples ............................................31 2.1 Design the Right Supply Chain ..........................................................31 2.2 Responsive Supply Chain in Manufacturing Industry ........................33 2.2.1 Responsive supply chain and fast clock-speed product - Personal computer ....................................................33 2.2.2 Responsive supply chain and medium clock-speed product - Automobile industry ................................................34 2.2.3 Responsive supply chain and slow clock-speed product - Commercial aircraft .................................................36 2.3 Efficient Supply Chain in Manufacturing Industry ............................37 2.3.1 Efficient supply chain and fast clock-speed product - Apparel industry ......................................................37 2.3.2 Efficient supply chain and medium clock-speed product - Beer industry ............................................................39 2.3.3 Efficient supply chain and slow clock-speed product - Steel industry ...........................................................40 2.4 Service Industry ..................................................................................42 2.4.1 The book industry - Amazon.com ...........................................42 2.4.2 The retail industry - Wal-Mart .................................................43 2.5 Synchronizing Supply Chain ..............................................................45 2.5.1 Linking manufacturer to retailer - HP and Wal-Mart ..............45 2.5.2 Linking suppliers to manufacturers - Covisint .........................45 2.6 Lessons to Learn .................................................................................47 2.6.1 Retail industry - K-Mart ..........................................................47 2.6.2 PC industry - IBM ...................................................................49 2.7 Summary ............................................................................................50 Questions for Pondering .............................................................................51 References ..................................................................................................52 Contents xv PART TWO: PURCHASING, SUPPLY NETWORK, STRATEGIC SOURCING 3 Purchasing and e-Procurement ...................................................................57 3.1 The Role of Purchasing ......................................................................57 3.1.1 Introduction to purchasing ........................................................57 3.1.2 Evolution of purchasing and supply chain management ..........59 3.1.3 Commodity types and purchasing strategy ...............................62 3.1.4 Centralized purchasing vs. decentralized purchasing ...............63 3.2 Purchasing Procedure .........................................................................66 3.2.1 Supplier market analysis ..........................................................66 3.2.2 Types of request .......................................................................66 3.2.3 Purchasing plan implementation ..............................................67 3.3 е -Procurement Marketplace ...............................................................69 3.3.1 The role of technology in purchasing .......................................69 3.3.2 Vertical and horizontal partnership ..........................................70 3.3.3 One or many relationships ........................................................70 3.3.4 e-Marketplace ...........................................................................72 3.3.5 Supplier-oriented marketplace ..................................................72 3.3.6 Buyer-oriented marketplace .....................................................73 3.3.7 Intermediary-oriented marketplace ...........................................73 3.3.8 Disintermediation and reintermediation ...................................74 3.4 Green Purchasing ...............................................................................75 3.5 Total Cost of Ownership Analysis in Purchasing ...............................76 3.6 Enhancing Value through е -Procurement .......................................... 77 3.7 Purchasing Performance Metrics ........................................................79 3.7.1 Efficiency metrics of purchasing ..............................................79 3.7.2 Effective metrics of purchasing ................................................80 3.8 Summary ............................................................................................81 Questions for Pondering .............................................................................81 Problems .....................................................................................................82 References ..................................................................................................83 4. Supplier Relations and Strategic Sourcing .................................................85 4.1 The Basics of Supplier Relations .......................................................85 4.1.1 Types of supply relations .........................................................85 4.1.2 Strategic sourcing .....................................................................88 4.1.3 Supplier base development .......................................................88 Supply Chain Management: Concepts, Techniques, and Practices 4.2 Supplier Selection ..............................................................................91 4.2.1 Value analysis ..........................................................................91 4.2.2 Techniques: Decision model for supplier selection .................93 4.2.2.1 Preference matrix ........................................................93 4.2.2.2 Make-or-buy decision ..................................................94 4.2.2.3 Decision tree ................................................................95 4.2.3 Supply certificate - ISO series .................................................98 4.2.4 Trust and commitment ..............................................................99 4.3 Outsourcing ......................................................................................100 4.3.1 Creating outsourcing vision ...................................................100 4.3.2 Model for implementing outsourcing .....................................101 4.3.3 Outsourcing benefits and risks ...............................................103 4.4 Third Party Logistics and Fourth Party Logistics .............................105 4.4.1 Third party logistics practices ................................................105 4.4.2 Fourth party logistics practices ...............................................106 4.5 Enhancing Value through Supplier Relations and Strategic Sourcing ...........................................................................................107 4.6 Sourcing Performance Metrics .........................................................108 4.7 Summary ..........................................................................................108 Questions for Pondering ...........................................................................109 Problems ...................................................................................................109 References ................................................................................................112 Supplement 4.1: Discount Cash Flow Analysis .......................................113 PART THREE: DEMAND TRANSFORMATION IN SUPPLY CHAIN 5. Demand Management: Customer Order Forecast ....................................117 5.1 Demand Management through Collaborative Forecasting ...............117 5.1.1 Forecast characteristics ..........................................................118 5.1.2 Forecast in efficient supply chain vs. responsive supply chain ...........................................................................119 5.1.3 A better method: Collaborative forecasting in supply chain ...........................................................................120 5.2 Components of Demand Forecast ....................................................122 5.2.1 Patterns of demand .................................................................122 5.2.2 Forecast process .....................................................................124 5.3 Determine Forecasting Methods ......................................................127 Contents xvii 5.3.1 Moving average ......................................................................127 5.3.2 Weighted moving average ......................................................128 5.3.3 Exponential smoothing ...........................................................129 5.3.4 Double exponential smoothing for trended data .....................130 5.3.5 Multiplicative seasonal method for seasonal data ..................132 5.4 Reduce Forecast Variability .............................................................134 5.4.1 Sources of variability ..............................................................134 5.4.2 Measure variability .................................................................135 5.4.2.1 Measure bias and accuracy ........................................136 5.4.2.2 Tracking signal ..........................................................137 5.4.3 Reduce demand variability and increase production flexibility ................................................................................138 5.5 Demand Management: Forecasting in е -Business Environment ......139 5.5.1 Enhance value through synchronize demand forecast ............139 5.5.2 Delayed differentiation and postponement .............................140 5.6 Demand Management Performance Metrics ....................................141 5.7 Summary ..........................................................................................141 Questions for Pondering ...........................................................................142 Problems ..................................................................................................142 Supplement 5.1: Synchronizing Production and Inventory Management in Supply Chain: Introduction to Beer Game ......................145 References ................................................................................................147 6. Transforming Demand in Supply Chain: Production Planning and Scheduling ................................................................................................149 6.1 Transforming Demand through Production Planning .......................149 6.1.1 Aggregate planning ...............................................................151 6.1.2 Dimensions of aggregation planning ......................................152 6.1.3 Planning alternatives ..............................................................152 6.1.4 Planning strategies ..................................................................153 6.2 Master Production Schedule .............................................................153 6.2.1 The basics of master production scheduling ...........................153 6.2.2 Available to promise .............................................................158 6.2.3 Available to sell ......................................................................158 6.2.4 e-Business solution - Global available to promise .................158 6.3 Collaborative Planning .....................................................................159 6.3.1 Overview of collaborative planning .......................................159 6.3.2 Pull and push boundary in production planning ....................161 xviii Supply Chain Management: Concepts, Techniques, and Practices 6.3.3 Manufacturing flexibility .......................................................163 6.3.4 Synchronization - HP example ..............................................165 6.4 Demand Transformation ...................................................................166 6.4.1 Enhancing value through demand transformation in supply chain ...........................................................................166 6.4.2 Demand transformation performance metrics ........................167 6.5 Summary ..........................................................................................168 Questions for Pondering ...........................................................................169 Problems ..................................................................................................169 References ................................................................................................170 7. Managing Inventories in Supply Chain ....................................................173 7.1 Brief History of Inventory Management ..........................................173 7.2 Inventory Concepts ..........................................................................175 7.2.1 Definition of inventory ...........................................................175 7.2.2 Purpose of holding inventory .................................................176 7.2.3 Inventory for independent and dependent demand .................177 7.2.4 Inventory costs .......................................................................178 7.2.5 The cost of inaccurate inventory ............................................178 7.2.6 Inventory measures .................................................................180 7.3 Managing Inventory Cost - EOQ-Based Inventory Models ............181 7.3.1 Economic order quantity ........................................................181 7.3.2 Inventory replenishment - Reorder point system ...................183 7.3.3 Inventory replenishment - Periodic review system ................184 7.4 Improving Customer Service Level: Managing Safety Stock ..........185 7.4.1 Safety stock ............................................................................185 7.4.2 Cycle service level ..................................................................186 7.4.3 Fill rate ...................................................................................187 7.5 New Initiatives е -Business Initiatives for Inventory Management .....................................................................................191 7.5.1 Bullwhip effects and information sharing ..............................191 7.5.2 Push-pull strategy in inventory management .........................192 7.5.3 Vendor managed inventory ....................................................193 7.5.4 Inventory reduction: Lean inventory systems ........................194 7.5.5 Issues related to information technology ................................196 7.6 Enhancing Value through Inventory Management in Supply Chain ....................................................................................197 7.7 Inventory Management Performance Metrics ..................................198 Contents xix 7.8 Summary ..........................................................................................199 Questions for Pondering ...........................................................................199 Problems ...................................................................................................199 Supplement 7.1: Quantity Discount .........................................................202 Supplement 7.2: Risk Pooling ..................................................................210 References ................................................................................................211 PART FOUR: TRANSPORTATION AND LOGISTICS Logistic Network and Distribution ...........................................................215 8.1 Logistics in Supply Chain Management ...........................................215 8.1.1 Facility configuration of global supply chain .........................216 8.1.2 Reversed logistic network ......................................................218 8.2 Data for Logistic Network Planning .................................................220 8.2.1 Data sources ...........................................................................220 8.2.2 Data check list ........................................................................221 8.3 Techniques for Logistic Network Configuration ..............................221 8.3.1 Optimization models ..............................................................222 8.3.2 Computer simulation ..............................................................222 8.3.3 Heuristics model .....................................................................222 8.3.4 Expert systems and decision support systems ........................223 8.4 Facility Location and Configuration ................................................223 8.4.1 Single facility location ............................................................223 8.4.1.1 The center of gravity method ....................................223 8.4.1.2 The median method ...................................................228 8.4.2 Configure multiple facilities ...................................................230 8.5 Warehouse ........................................................................................235 8.5.1 Nature and importance of warehouse .....................................235 8.5.2 Warehouse in supply chain .....................................................237 8.5.2.1 Public and private warehouse ....................................237 8.5.2.2 Types of warehouse ..................................................239 8.5.3 Cross docking .........................................................................239 8.6 Enhancing Value through Logistics Management in Supply Chain ....................................................................................240 8.7 Summary ..........................................................................................240 Questions for Pondering ...........................................................................241 xx Supply Chain Management: Concepts, Techniques, and Practices Problems ...................................................................................................241 References ................................................................................................243 9. Transportation Systems and e-Distribution ..............................................245 9.1 Transportation ..................................................................................245 9.1.1 Carriers ...................................................................................246 9.1.2 Shippers ..................................................................................247 9.2 Overview of Carrier Operations .......................................................247 9.2.1 Motor carrier ..........................................................................247 9.2.2 Railroads ................................................................................249 9.2.3 Water carrier ...........................................................................250 9.2.4 Air carrier ...............................................................................251 9.2.5 Pipeline ...................................................................................251 9.2.6 Intermodal service ..................................................................252 9.2.7 Shipping containers ................................................................253 9.3 The Network of Shipper and Carrier in е -Distribution..................... 254 9.3.1 Carrier side е -Distribution...................................................... 254 9.3.2 Shipper side е -Distribution..................................................... 255 9.3.3 The network of shipper and carrier in е -Distribution............. 256 9.4 The Rise of Intermediaries in Transportation ...................................257 9.4.1 The rise of intermediaries .......................................................257 9.4.2 Third party logistics in transportation service ........................258 9.4.3 Fourth party logistics in transportation service ......................259 9.5 Trade-off of Transportation and Inventory Costs .............................260 9.6 Vehicle Routing and Scheduling ......................................................262 9.6.1 Characteristics describing vehicle routing ..............................264 9.6.2 Solution procedure for vehicle routing and scheduling ..........264 9.6.3 е -Business tools for creating routes ........................................270 9.7 Railway Freight Car Scheduling ......................................................270 9.7.1 Railway system ......................................................................271 9.7.2 Characteristics describing railway freight scheduling ............271 9.8 Enhancing Value through Transportation ........................................273 9.9 Summary ..........................................................................................274 Questions for Pondering ...........................................................................274 Problems ...................................................................................................275 References ................................................................................................277 Appendix 1: World Container Ports: Top 25 2001-2003 .........................278 Appendix 2: Airport Cargo Loading & Unloading: Top 25 2001-2003 ...279 Contents xxi PART FIVE: e-BUSINESS SOLUTIONS 10. е -Business Solutions: The Enabler of Global Supply Chain ....................283 10.1 e-Business Solutions: The Enabler of Global Supply Chain ..........283 10.1.1 Global supply chain ...........................................................283 10.1.2 е -Solution outsourcing: A perceivable trend ......................284 10.2 Enterprise Information Systems (EIS) ...........................................285 10.2.1 Business process re-engineering: The foundation for implementing EIS..............................................................286 10.2.2 Legacy systems .................................................................287 10.2.3 Client / server technology ..................................................288 10.2.4 Major modules of EIS systems ..........................................289 10.2.5 Major EIS systems vendors ................................................290 10.2.6 Small and mid-size EIS market ..........................................292 10.3 Customer Relation Management (CRM) .......................................293 10.3.1 CRM s relation to supply chain management ....................293 10.3.2 CRM implementation .........................................................294 10.4 Other е -Business Solutions ............................................................295 10.4.1 Collaborative planning, forecasting, and replenishment (CPFR) ........................................................296 10.4.2 е -Hub ................................................................................. 297 10.4.3 Electronic product code: radio frequency ID (RFID) .........298 10.4.4 Global available-to-promise (GATP) .................................299 10.4.5 Vendor managed inventory (VMI) .....................................300 10.4.6 Cross docking .....................................................................301 10.4.7 Geographic information systems (GIS) ..............................301 10.5 Technology Standardization of е -Business .................................... 302 10.5.1 Electronic data interchange (EDI) ......................................302 10.5.2 Extensible markup language (XML) ..................................303 10.6 Enhancing Value through е -Business Applications .......................304 10.7 Summary ........................................................................................305 Questions for Pondering ...........................................................................305 References ................................................................................................306 11. Business Intelligence in Supply Chain Management: Data, Information, and Knowledge .....................................................................307 11.1 Business Intelligence .....................................................................307 1 1.1.1 Business intelligence definition .........................................307 Supply Chain Management: Concepts, Techniques, and Practices 11.1.2 Business intelligence value chain .......................................308 11.2 The Value of Business Intelligence ................................................311 11.2.1 Bullwhip effects ................................................................311 11.2.2 Effects ofinformation flow on material flow .....................312 11.3 Data, Information, and Knowledge in Supply Chain Management ...................................................................................313 11.3.1 Data collection and organization ........................................313 11.3.2 Information extraction ........................................................314 11.3.3 Knowledge management ....................................................316 11.4 Business Intelligence Methodology ...............................................316 11.4.1 Data warehousing ...............................................................316 11.4.2 Data mining ........................................................................317 11.5 Enhancing Value through Knowledge Managing in Supply Chain ..................................................................................318 11.6 Summary ........................................................................................319 Questions for Pondering ...........................................................................319 References ................................................................................................320 Appendix 3: Data Mining and Warehousing Tools and Vendors .............321 PART SIX: SUPPLY CHAIN PERFORMANCE AND EVALUATION 12. Performance Measures: From Order Winning to Order Fulfillment ........325 12.1 Introduction ....................................................................................325 12.2 Order Winning in Supply Chain ....................................................325 12.2.1 Identify and capture the right customers ............................325 12.2.2 Create a customer-responsive supply chain ......................326 12.3 Fulfillng Orders in Supply Chain ...................................................327 12.3.1 Creating a collaborative, flexible and cost-efficient order fulfillment process ....................................................327 12.3.2 Choosing the right technology to support supply chain operations .................................................................328 12.3.3 Fulfilling customer orders in supply chain .........................329 12.4 Financial Measurement ..................................................................329 12.4.1 Inventory measures ............................................................330 12.4.2 Relationship of supply chain variables to income statement ............................................................................330 Contents xxiii 12.4.3 The shortcomings of financial performance .......................332 12.5 The Supply Chain Operations Reference Model (SCOR) ..............333 12.6 The Balanced Scorecard .................................................................335 12.7 The Future of Supply Chain Management .....................................336 Questions for Pondering ...........................................................................338 References ................................................................................................338 Subject Index ...................................................................................................339 Company Index ...............................................................................................345
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Supply Chain Management concepts, techniques and practices ; enhancing value through collaboration
Supply Chain Management (DE-588)4684051-5 gnd
subject_GND (DE-588)4684051-5
title Supply Chain Management concepts, techniques and practices ; enhancing value through collaboration
title_auth Supply Chain Management concepts, techniques and practices ; enhancing value through collaboration
title_exact_search Supply Chain Management concepts, techniques and practices ; enhancing value through collaboration
title_full Supply Chain Management concepts, techniques and practices ; enhancing value through collaboration by Ling Li
title_fullStr Supply Chain Management concepts, techniques and practices ; enhancing value through collaboration by Ling Li
title_full_unstemmed Supply Chain Management concepts, techniques and practices ; enhancing value through collaboration by Ling Li
title_short Supply Chain Management
title_sort supply chain management concepts techniques and practices enhancing value through collaboration
title_sub concepts, techniques and practices ; enhancing value through collaboration
topic Supply Chain Management (DE-588)4684051-5 gnd
topic_facet Supply Chain Management
url http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015958776&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA
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