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| Preface | |
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| Acknowledgments | |
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| About the Authors | |
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| The Building Blocks of Supply Chain Strategy | |
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| Supply Chain Management and Competitive Strategy | |
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| The Theory of Supply Chain Management | |
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| Supply Chain Management Defined | |
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| The Internal Value Chain | |
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| The Bullwhip Effect | |
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| Supply Chain Management in Practice | |
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| Integrating Supply Chain Thinking into Corporate Strategy | |
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| The Essence and Evolution of Strategic Management | |
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| The Four Decision Areas of Strategy | |
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| The Influence of SC Thinking on Strategy | |
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| A Look Ahead: A Process Road Map for Strategic SCM | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: SCM-Latest Fad or Strategic Imperative? | |
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| Endnotes | |
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| The Beer Game | |
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| Customer Fulfillment Strategies | |
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| The Information-Empowered Customer | |
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| Creating Value to Meet Customers' Needs | |
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| Quality | |
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| Cost | |
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| Flexibility | |
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| Delivery | |
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| Innovation | |
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| Trade-Offs Versus Synergies | |
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| Understanding Satisfaction to Fulfill Customers' Needs | |
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| Customer Service Strategies | |
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| Customer Satisfaction Strategies | |
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| Customer Success Strategies | |
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| The End Customer | |
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| Implementing a Customer-Centric Fulfillment Strategy | |
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| Matching Fulfillment Strategies to Customer Needs | |
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| Defining Relationship Intensity | |
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| Evaluating the Profitability of Customer Relationships | |
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| Using Customer Relationship Management Systems | |
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| Recognizing Barriers to Effective Customer Fulfillment | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: SCM[superscript 2] | |
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| Endnotes | |
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| Productivity and Quality Management | |
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| Process Thinking: SCM's Foundation | |
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| A Need for Process Management | |
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| Functional Organization and Its Consequences | |
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| The Anatomy of a Process | |
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| Systems Thinking and Process Management | |
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| A Holistic View | |
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| Information Availability and Accuracy | |
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| Cross-Functional and Interorganizational Teamwork | |
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| Measurement | |
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| Systems Analysis | |
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| Systems Thinking at Work | |
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| A Process View of the Company | |
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| The Strategic Linkage | |
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| Resource Management | |
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| Boundary-Spanning Mechanisms | |
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| Process Reengineering | |
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| Identify Desired Outcomes | |
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| Make the Process Visible | |
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| Reorganize the Process | |
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| Assign Responsibility for Work | |
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| Leverage Technology | |
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| Reimagine Systematically | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: Global Semiconductor's Market Share Slide | |
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| Endnotes | |
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| Decision Making Under Uncertainty | |
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| The New Product Development Process: Managing the Idea Infrastructure | |
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| Introduction | |
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| Mitigating Risk in New Product Development | |
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| Formalized Risk Management | |
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| Early Involvement of Critical Supply Chain Players | |
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| Core Competencies | |
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| "Design for" Considerations | |
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| Modular Versus Integral Product Design | |
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| Marketing and the Criticality of the Customer | |
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| Customer-Driven Marketing and the Importance of the Product | |
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| Harley-Davidson and Its Supply Chain | |
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| Product Positioning | |
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| Pricing to Meet Consumer Demand | |
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| New Product Development | |
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| Target Price, Profit, and Cost in NPD | |
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| Target Cost Breakdown and the NPD Team | |
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| Cost Management Activities During NPD | |
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| New Product Launch | |
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| The Role of Finance in New Product Development | |
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| The Boundary-Spanning Role of Finance at Intel | |
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| Measures of Profit | |
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| Cash Flow | |
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| Economic Value-Added | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: Reorganizing for New Product Development and Ongoing Customer Management | |
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| Endnotes | |
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| Evaluating the Return on a New Product Project | |
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| The Order Fulfillment Process: Managing the Physical Flow Infrastructure | |
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| Functional Components of the Physical Flow | |
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| Acquiring the Goods: The Nature of Purchasing Management | |
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| The Purchasing Process | |
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| Purchasing Skills for a Supply Chain World | |
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| Producing the Goods: The Nature of Production Management | |
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| The Production Process | |
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| Toyota's Quest for Lean Production | |
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| Operations Management in the Services Setting | |
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| Operations Skills for a Supply Chain World | |
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| Delivering the Goods: The Nature of Logistics Management | |
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| The Logistical Process | |
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| Logistics Skills for a Supply Chain World | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: The Club War | |
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| Endnotes | |
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| Forecasting and Inventory Management | |
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| Epilogue | |
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| Designing the Global Supply Chain | |
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| Scanning and Global Supply Chain Design | |
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| Why Supply Chain Management Now? | |
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| The Journey from Ownership to Relationship Integration | |
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| The Decline of Ownership Integration | |
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| The Rise of Relationship Integration | |
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| A Changing Supply Chain World | |
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| Environmental Scanning | |
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| Forces Shaping Today's Supply Chain Environment | |
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| The Globalization of Markets | |
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| Forces Driving Globalization | |
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| Globalization's Implications | |
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| Globalization's Rules | |
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| Designing a Global Network | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: The Scanning and Planning Internship | |
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| Endnotes | |
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| Facility Location | |
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| Supply Chain Mapping | |
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| Introduction | |
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| The Importance of Supply Chain Design | |
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| Nokia | |
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| Process Mapping | |
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| Process Analysis | |
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| Value Stream Mapping | |
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| Supply Chain Design | |
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| Design for Supply Chain Initiatives | |
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| Approaches to Supply Chain Design | |
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| Supply Chain Mapping Approaches | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: Mapping the Mac | |
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| Endnotes | |
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| Project Management | |
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| Strategic Supply Chain Cost Management | |
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| The Profit Leverage Effect of Supply Chain Cost Reduction | |
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| Strategic Cost Management Principles | |
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| Supply Chain Analysis | |
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| Value Proposition Analysis | |
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| Cost Driver Analysis | |
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| Example of Strategic Cost Management: Southwest Airlines | |
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| Responsibility for Strategic Cost Management | |
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| Industry Examples | |
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| Determining the Tools to Support Strategic Cost Management | |
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| Classification of Supply Chain Decisions | |
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| Classification of Decisions: Analyzing the Quadrants | |
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| Commodity Classificiation | |
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| Activity-Based Cost Management | |
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| Problems with Traditional Managerial Accounting Systems | |
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| The ABCM Solution | |
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| Making Better Decisions | |
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| Problems with ABCM Implementation | |
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| Total Cost of Ownership | |
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| Determine Desired Benefits of TCO | |
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| Form a Team to Work on TCO Analysis | |
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| Identify Relevant Costs and Gather Data | |
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| Pine-Tune the TCO Analysis, Including Sensitivity Analysis | |
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| Present Recommendations to Top Management | |
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| Additional Examples of TCO Analysis | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: The Costly Packaging Decision | |
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| Endnotes | |
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| Core Competencies and Outsourcing | |
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| What Is a Core Competence? | |
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| The Outsourcing Challenge | |
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| Benefits of Outsourcing | |
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| Constraints and Risks of Outsourcing | |
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| Establish the Outsourcing Team and Goals | |
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| Skill Level Required for Buyers | |
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| Bringing Activities or Processes In-house | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: Outsourcing for the First Time | |
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| Endnotes | |
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| Supply Chain Rationalization and Role Shifting | |
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| The Challenge of Complexity | |
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| Sources of Complexity | |
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| Organizational Structure | |
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| Value-Added Processes | |
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| The Operating Network | |
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| The Company's SKUs | |
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| The Supply Base | |
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| The Customer Base | |
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| The Logistics System | |
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| SC Rationalization: The Case of Supply-Base Optimization | |
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| How Many Suppliers Do You Need? | |
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| The Supply-Base Optimization Process | |
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| Shifting Roles Among SC Members | |
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| Second-Tier Sourcing Contracts | |
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| Supplier Certification | |
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| Vendor-Managed Replenishment | |
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| Supplier-Integrated Manufacturing | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: Designing a Hybrid Global Sourcing Strategy | |
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| Endnotes | |
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| Epilogue | |
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| Collaborating Across the Supply Chain | |
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| Relationship Management | |
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| Supply Chain Relationships | |
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| The Relationship Continuum | |
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| Managing Transactional Relationships | |
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| Managing Strategic Alliances for Success | |
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| A Model for Alliance Management | |
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| Practices That Support Synergistic Alliances | |
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| Attitudes and Behaviors That Impede Alliance Development | |
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| The Role of Trust and Power in Supply Chain Relationships | |
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| Trust Is Two Sided | |
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| Trust Is Behavior | |
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| Trust Requires Open Information Sharing | |
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| Trust Is Personal | |
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| Trust Means Performance | |
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| Assessing Supply Chain Trust | |
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| Modern Negotiation and Relationship Management | |
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| What Is Negotiation? | |
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| When Is Negotiation Appropriate? | |
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| Negotiation Philosophies | |
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| Preparing for a Successful Negotiation | |
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| Conducting Successful Negotiations | |
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| Becoming a Skillful Negotiator | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: How Close Is Too Close? | |
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| Endnotes | |
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| Information Sharing | |
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| The Importance of Information | |
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| Achieving Connectivity Through Information Technology | |
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| Brief History of Information System Connectivity | |
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| Enterprise Resource Planning (ERP) Systems | |
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| ERP Implementation Issues | |
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| The Future: ERP II? | |
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| E-Commerce and the Internet | |
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| E-Marketplaces | |
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| Radio Frequency Technology | |
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| Electronic On-Line Bidding Events: The Reverse Auction | |
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| Information Technology Summary | |
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| Achieving Information Sharing Through Willingness | |
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| Why Should Information Be Shared? | |
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| What Information Should Be Shared? | |
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| When Should Information Be Shared? | |
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| Who Should Be Sharing the Information? | |
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| Challenges to Open Information Sharing | |
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| The Information Irony | |
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| What Does the Future Hold? | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: Supply-Base Reduction at Transport | |
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| Endnotes | |
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| Performance Measurement | |
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| The Role of Performance Measurement | |
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| Traditional Measurement | |
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| Asset Management | |
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| Cost | |
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| Customer Service | |
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| Productivity | |
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| Quality | |
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| Caveats Regarding Traditional Measurement Practice | |
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| Supply Chain Measurement | |
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| Alignment | |
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| Customer Satisfaction | |
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| Process Costing | |
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| Supply Chain Measures | |
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| Scorecards | |
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| Customized Measures | |
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| Benchmarking | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: The Gorilla's Dilemma | |
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| Endnotes | |
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| People Management: Bridge or Barrier to SCM | |
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| The Supply Chain Manager | |
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| The Most Valuable Asset? | |
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| Investing in Employee Capabilities | |
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| The Cross-Trained Worker | |
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| The Cross-Experienced Manager | |
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| Cross-Functional Teams | |
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| Establishing an Empowerment Culture | |
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| Empowerment at Newmont Gold | |
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| The "ABCs" of an Empowerment Culture | |
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| Integrating People and Technology Systems | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: Collaboration's Missing Link | |
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| Endnotes | |
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| Collaborative Innovation | |
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| The Dynamics of Success | |
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| The Perils of Complacency | |
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| The Learning Organization | |
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| Innovation Strategies | |
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| Transformational Innovation | |
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| Incremental Innovation | |
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| Pet Projects at Newmont Gold | |
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| FrameworkS at Johnson & Johnson | |
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| Employee Initiative and Innovation at 3M | |
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| Collaborative Innovation Initiatives | |
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| Collaborative Improvement Suggestion Programs | |
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| Collaborative Training | |
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| Collaborative Problem Solving | |
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| Collaborative Pilot Projects | |
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| Collaborative Process Improvement | |
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| Organizing for Long-Term Collaboration | |
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| Executive Governance Councils | |
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| Supply Chain Advisory Councils | |
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| Conclusion | |
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| Summary of Key Points | |
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| Review Exercises | |
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| Case: The Case for Supply Chain Advisory Boards | |
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| Endnotes | |
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| Epilogue | |
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| Creating a Cycle of Satisfaction | |
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| Getting the Data Right | |
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| Supplier Quality at Triton Diamond | |
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| Quality Upstream at HI-TECH Semiconductor | |
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| Quality Issue/Consequential Damages | |
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| Chatham, Ltd., Market Analysis | |
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| Evaluating a Leader's Strategy for Managing Procurement Leverage | |
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| A Mandate for Costs Reduction Due to the Competitive Environment | |
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| Glossary | |
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| Index | |