Guide to Supply Chain Management

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1 Colin Scott Henriette Lundgren Paul Thompson Guide to Supply Chain Management 4Q Springer

2 Contents 1 Introduction to Supply Chain Management What Starts a Supply Chain? A Functional View of Supply Chain Management Supply Chain Players Supply Chain Dynamics 6 2 Guide to Plan in Supply Chain Management Inventory and Supply Chains Different Types of Inventory CycleStock SafetyStock...' Reducing Inventory Demand and Supply Planning Describing Demand Forecasting Methods Demand Planning Improvements Two Models of Order Cycle Management The Economic Order Quantity (EOQ) Sales and Operations Planning The S&OP Process Guiding Principles-for Successful S&OP Implementations Customer Service Improvements Through S&OP Why S&OP Implementations Fail Different Planning Horizons Case Study of Best Practice in Plan: Beiersdorf Suggestions for Further Reading 36 References 36

3 xii Contents 3 Guide to Source in Supply Chain Management Introduction to Sourcing The Purchasing Process: Pre-order Steps The Purchasing Process: Post-order Steps Tactical Sourcing Strategic Sourcing Initiatives Category Sourcing Supplier Relationship Management Sourcing Management Tools Negotiation Cost Management Case Study of Best Practice in Source: Negotiations Suggestions for Further Reading 51 References 51 4 Guide to Make in Supply Chain Management Introduction to Make From Craft to Mass Manufacturing Five Types of Manufacturing Process Manufacturing Planning and Control JIT Manufacturing Strategies JIT Philosophy Elements of JIT Manufacturing Limitations of JIT Lean Manufacturing TQM and Continuous Improvement Improving Performance Through Waste Reduction Tools to Improve Make Performance Case Study of Best Practice in Make: Unipart Suggestions for Further Reading 73 References 73 5 Guide to Deliver in Supply Chain Management Introduction to Deliver Network Trade-Offs Facility Location Decisions Deliver Components Transport Management Air : Road Rail Water Pipeline Intermodal Operations 83

4 Contents 5.3 Warehouse Management Warehouse Planning Warehouse Planning Process Warehouse Layout Case Study of Best Practice in Deliver: DHL Suggestions for Further Reading 89 References 89 Guide to Return in Supply Chain Management Introduction to Return Why Do Products Return? Drivers of Reverse Logistics Key Players in Reverse Logistics The Return Process Reverse Logistics Activities and Recovery Options Five Stages of the Product Return Process Different Return Business Models Product Recovery Issues Strategic Outlook in Returns Returns in Different Industry Sectors Improving Returns Golden Rules for Returns Management Case Study of Best Practice in Return: Wincanton Suggestions for Further Reading 109 References.' 109 Guide to Strategy in Supply Chain Management Ill 7.1 Introduction to Corporate Strategy Ill What is Corporate Strategy? Ill What is Competitive Strategy? Achieving Strategic Alignment in Supply Chain Companies Concepts to Support Supply Chain Strategy Development Four Drivers of Supply Chain Performance Five Inventory Strategies Lean and Agile i? Postponement Case Study of Best Practice in Strategy: Wal-Mart Suggestions for Further Reading 122 References i 123 Guide to People in Supply Chain Management The Importance of People in Supply Chain Organisations Constructing a Learning and Development Strategy Linking Learning and Development to Supply Chain Strategies v 127

5 xiv Contents Encouraging a Learning Culture Team Development in Supply Chain Management Dimensions of Situational Leadership Leadership and Team Development Levels Matching Development Level and Leadership Style Individual Learning of Supply Chain Professionals Four Types of Learning Styles Learning in Supply Chain Management: Applying Different Styles Improving Performance Through Supply Chain Learning Case Study of Best Practice in People: Supply Chain Academy Suggestions for Further Reading 139 References Guide to Finance in Supply Chain Management Introduction to Supply Chain Finance The Business Process Gearing Returns HurdleRates How Companies Cascade Financial Information Profit and Loss Balance Sheet CashFlow How to Add Value and Improve Corporate Financial Performance Supply Chain Impact on ROCE Applying Six Supply Chain Performance Levers Case Study of Best Practice in Finance: NWF Suggestions for Further Reading 154 References Guide to Customer Service in Supply Chain Management Introduction to Customer Service Who Are Our Customers? Managing Variability to Improve Customer Service Managing Key Customers Customer Lifetime Value Customer Service Ambassadors Delivering Against Customer Needs Delivering the Core Promise Meeting and Exceeding Customer Expectations Service Recovery 165

6 Contents xv 10.4 Case Study of Best Practice in Customer Service: Unilever Suggestions for Further Reading 168 References Guide to Outsourcing in Supply Chain Management What is Outsourcing? Growth Drivers in Outsourcing Common Reasons for Outsourcing Outsourcing Concerns The Tendering Process of Outsourcing Step 1: Review Scope for Outsourcing and Requirements Step 2: Identify Potential Service Providers Step 3: Produce Request for Information and Shortlist Step 4: Prepare and Issue the Request for Quotation Step 5: Assess the Tenders Step 6: Select Contract and Assess Risk Step 7: Determine Contract Step 8: Implement Contract Step 9: Manage Ongoing Relationship Improved Service Through Better 3PL Management Disputes: Why Outsourcing Relationships Fail Managing Expectations Managing the Relationship Case Study of Best Practice in Outsourcing: Hi-Tech Industry Suggestions for Further Reading 181 References 182 About the Authors 183 Index 185 i'-s

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