Supply Chain Management on Demand

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1 Chae An Hansjorg Fromm (Eds.) Supply Chain Management on Demand Strategies, Technologies, Applications With contributions by numerous experts With 87 Figures 4y Springer Technische Universitat Darmstadt Fachbereich 1 Betriebswirtschaftliclie^ibliothek Inveritar-Nr.:..p?&i Abstell-Nr.: /. "A MO.

2 Table of Contents 1 Beyond ROI Where ROI Falls Short ROI is dead. Long live ROI Action 1: Analyze Supply Chain Value Drivers Action 2: Quantify Value Driver Impact Action 3: Use a Common Framework Action 4: Link ROI to Business Strategy Action 5: Consider the Risks Action 6: Put ROI to Work Making it Happen Supply Chain Value Modeling at IBM Understanding Value Driver Interactions 16 References 16 2 Supply Chain Simulation Introduction Comparison to Business Process Simulation Simulation Modeling Requirements Data Processes Entities Resources Supply Chain Process Example Strategic Uses of Supply Chain Simulation Case Study: Build-to-Plan vs. Continuous Replenishment Operational Uses of Supply Chain Simulation 32 References 34 3 Inventory Management in High Technology Value Chains Introduction and Overview High-Technology Value Chains Complex Configured Hardware Value Chains Configure-To-Order Value Chains 41

3 XIV Table of Contents Semiconductor Value Chains A Multi-Echelon Inventory Model for Complex Configured Hardware AMT: The Optimization Engine Case Study: IBM's Hard Disk Drive Value Chain Configure-to-Order for High-Volume High-Variety Products The Optimization Model Case Study: IBM's Personal Computer Value Chain Semiconductor Value Chains The Optimization Model Case Study: Xilinx Semiconductor Value Chain Summary 61 References 62 Product Pricing in the e-business Era Introduction Pricing in the e-business Environment Current Pricing Practice Research Literature Commercial Systems Benefits of Price Optimization Case Studies Concluding Remarks 92 References 93 Applications of Implosion in Manufacturing Manufacturing Resource-Allocation Models: A Small Example An Implosion Heuristic IBM usage of implosion Mathematical Formulation of the Implosion LLP 110 References 114 Strategic Sourcing and Procurement Background Overview Spend Analysis Functional Requirements Data Cleansing/Scrubbing Techniques 122

4 Table of Contents XV Data Cleansing for Spend Analysis Sourcing Core Ingredients Support Functions Mapping Features to Functional Components Tactical Procurement Conclusions References 141 Managing Risk with Structured Supply Agreements Introduction Current Practices Current Research Framework for Analyzing Structured Supply Agreements Technical Implementation Range Forecasting Computational Risk Analysis of Portfolios and Options of Structured Agreements Mathematical Formulation Calculation Engine Contract Design & Management Reporting Industry Examples : Tooling/Capacity Planning in Automobile Industry Capacity and Launch Planning in the CPG Industry Supply chain coordination in the High-Tech Industry Summary 164 References 164 Reverse Logistics - Capturing Value in the Extended Supply Chain Introduction The Supply Side - Reverse Product Flows The Demand Side - Remarketing Designing the Reverse Logistics Process Take-Back Strategies Grading and Disposition Location and Network Design Inventory Management and Value of Information Conclusions 184 References 185

5 XVI Table of Contents 9 Service Parts Logistics Management Introduction to Service Parts Logistics Overview of this chapter Service Parts Logistics Probabilistic Demand Lifetime The Service Logistics Management Process Service Planning Service Network Design Policy Planning Source Selection and Contract Management Policy Fulfillment Order Management Source Management and Engineering Service Delivery Management Information System System Solution Developments The Next Step: Managing the Service Logistics Supply Chain 208 References.' Business Process Integration Introduction The Vision The Challenge Bridging the Gap A Multi-Layer Modeling Framework for BPIM Supply Chain Scenario Framework Details Strategy Layer Operation Layer Operation Model for the JIT Example Execution Layer Sense and Respond Supply Chains through BPIM 229 References Collaboration in e-supply Networks Introduction From Supply Chains to e-supply Networks Some Theory - Towards Event-based, Collaborative Business Networks The New Competitive Landscape of e-supply Networks 239

6 Table of Contents XVII 11.3 Intercompany Relationships in e-supply Networks Relationships through e-markets Collaborative Processes in e-markets Collaborative Planning in e-markets Manufacturer-Customer Collaborative Planning Processes Manufacturer-Supplier Collaborative Planning Processes Manufacturer-3PL Collaborative Planning Processes Benefits of Collaboration in e-supply Networks Implementing Collaborative Planning Organizational Implementation Considerations Technological Implementation Considerations Some Implementation Considerations Who should you collaborate with? How should you go about collaboration? What are the requirements for and implications of implementation? Epilogue 283 References Sense and Respond Business Performance Management Introduction Related Work Sense and Respond Business Performance Management Roadmap Automation Visibility Control Adaptiveness : Sense and Respond Business Performance Management Framework Model-Driven Architecture Monitoring Framework Sense and Respond Business Performance Management Applications Demand Conditioning for PC Manufacturing Inventory Management in a Technology Supply Chain Summary and Future Study 310 References 311

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