Supply Chain Management

Transcription

1 Supply Chain Management T E X T A N D C A S E S V <': '" >0" >, -. _, -i- Janat Shah Indian Institute of Management Bangalore PEARSON. Education Chennai Delhi Chandigarh Upper Saddle River Boston London Sydney Singapore Hong Kong Toronto Tokyo

2 CONTENTS v._ Part I: Introduction and a Strategic View of Supply Chains 1 The Role of Supply Chain Management in Economy and Organization 3 Introduction 4 What Is Supply Chain Management? 4 Evolution of Supply Chain Management 5 Key Concepts in Supply Chain Management 7 Decisions in a Supply Chain 8 The Importance of the Supply Chain 10 Enablers of Supply Chain Performance 12 Improvement in Communication and IT 12 Entry of Third-party Logistics Providers - 13 Enhanced Inter-firm Coordination Capabilities 13 Supply Chain Performance in India 14 Challenges in Maintaining a Supply Chain in India 15 Supply Chain Challenges for the Indian FMCG Sector 16 Supply Chain Strategy and Performance Measures 23 Introduction 24 Customer Service and Cost Trade-offs 24 Order Delivery Lead Time 26 Supply Chain Responsiveness 29 Delivery Reliability 31 Product Variety 32 Supply Chain Performance Measures 33 Benchmarking Supply Chain Performance Using Financial Data 35 Linking Supply Chain and Business Performance 37

3 v! Contents A. Enhancing Supply Chain Performance Supply Chain Optimization Supply Chain Integration Supply Chain Restructuring 3 Outsourcing: Make Versus Buy o / Introduction Make Versus Buy: The Strategic Approach Identifying Core Processes The Business Process Route The Product Architecture Route Market Versus Hierarchy Economies of Scale Agency Cost Transaction Cost Incomplete Contracts Integrative Framework of Market Versus Hierarchy The Make-Versus-Buy Continuum Tapered Integration y Collaborative Relationship Sourcing Strategy: Portfolio Approach Reconfiguration of the Supply Base Impact of the Internet on Sourcing Strategy Part II: Managing Material Flow in Supply Chains 67 i Inventory Management 69 Introduction 70 Types of Inventory 71 Cycle Inventory. 72 Safety Stock 72 Decoupling Stocks 72 Anticipation Inventory ' 72 Pipeline Inventory ' ', ' 73 Deadstock 73 Inventory-related Costs 74 Ordering Costs 74 Inventory-carrying Costs 74 Stockout Costs 75 Computing Inventory-related Costs. 75 Managing Cycle Stock 77 Cycle Stock Inventory Model : 77 Managing Safety Stock 79 Capturing Uncertainty 81 Impact of Service Level on Safety Stock 82 Managing Seasonal Stock 86 Planning for Seasonal Demand 87

4 Xll Contents Supply Side Cost Data Strategic Role of Units in the Network, Strategic Role Framework Role Evolution Within a Network Location of Service Systems Locating Retail Outlets Locating Public Service Systems Designing Aftermarket Service System Network Incorporating Uncertainty in Network Design Part III: Managing Information Flow in Supply Chains Demand Forecasting Introduction The Role of Forecasting Characteristics of Forecasts Time Horizon for Forecasting Qualitative Forecasting Methods The Delphi Approach Market Research, Life Cycle Analogy Informed Judgement Quantitative Methods Time-series Method Causal Models. Forecast Error Time-series Forecasting Models Case 1: Forecasting Level Form Case 2: Forecasting the Trend Form Case 3: Forecasting Seasonality Case 4: Forecasting Combination of Seasonality and Trend Data Preparation for Building Time-series Models Behavioural Issues in Forecasting Information Technology in Supply Chain Management Introduction, Enabling Supply Chain Management Through Information Technology IT in Supply Chain Transaction Execution IT in Supply Chain Collaboration and Coordination IT in Supply Chain Decision Support IT in Supply Chain Measurement and Reporting Strategic Management Framework for IT Adoption in Supply Chain Management

5 Contents Supply Chain Management Application Marketplace 203 Future Trends 203 Part IV: Supply Chain Innovations 211 Supply Chain Integration 213 Introduction 214 Internal Integration 215 Centralized System 216 Decentralized System 217 Hybrid System 217 External Integration 218 Increase in Demand Volatility While Moving Up the Supply Chain. 218 Impact of Buyer Practices on Demand Distortions Across the Buyer-Suppliertink 219 Impact of Supplier Practices on Demand Distortions Across the Buyer-Supplier Link ' 221 Bullwhip Effect: Demand Volatility and Information Distortions Across Supply Chains 223 Remedial Strategies to Counteract Demand Distortions Across Supply Chains. 225 Barriers to External Integration 227 Building Partnership and Trust in a Supply Chain 230 Steps in Building Successful Relationships 231 Effect of Interdependence on Relationships 232 Supply Chain External Integration: Industry-level Initiatives 233 Vendor-managed Inventory 233 Efficient Customer Response 234 CPFR 235 JO Supply Chain Restructuring 239 Introduction 240 Supply Chain Mapping 240 Value-addition Curve 241 Customer Entry Point in the Supply Chain 241 Point of Differentiation. 242 Supply Chain Process Restructuring. 242 Postpone the Point of Differentiation 244 Postponement Case Studies 244 Postponement for Reducing Transportation Cost 246 Problems with Implementing the Postponement Strategy 246 Changing the Shape of the Value-addition Curve 247

6 Contents Advance the Customer Ordering Point: Move from MTS to CTO Supply Chain 248 Altering Customer Offering Bundle 249 Illustrative Case Studies 250 Moving from MTS to CTO: Alternative Approaches 251 Moving from the MTS to the CTO Model: The Role of Innovations and Experimentations. 253 Restructuring the Supply Chain Architecture 253 Restructure Flow in the Chain: Hindustan Unilever Case 254 Restructure Placement of Inventory in the Chain 255 _^ Agile Supply Chains 261 Introduction 262 Supply Chains for High Demand Uncertainty Environment 263 Forecast Updating 264 Responsive Supply Chain: Optimal Use of Dual Sources of Supply 266 Illustration of Responsive Supply Chain Approach 267 ^\ Speculative Approach 268 Responsive Approach 270 Impact of Negatively Correlated Demand Structure 274 Sources of Supply Chain Disruptions and Its Impact on Business 275 Sources of Supply Chain Disruptions 275 Consequences of Supply Chain Disruptions 277 Methodologies for Handling Disruptions 277 Multi-location Sourcing 278 Location of the Secondary Source. 279 Pricing and Revenue Management 285 Introduction 286 Pricing 286 Law of Demand and Optimal Pricing Decision 286 Case of Non-linear Demand Curve 288 Revenue Management for Multiple Customer Segments 289 Pricing Under Capacity Constraint for Multiple Segments 293 Revenue Management Under Uncertain Demand and Limited-capacity Situations 295 Capacity Allocation Among Multiple Segments 295 Forward Market Versus Spot Market 297 Overbooking 298 Revenue Management for Inventory Assets: Markdown Management 300 Innovative Pricing 301

7 Contents VT T AV- Part V: Supply Chain Cases 305 Kurlon Limited 307 Vehicle Routing at Baroda Union 321 PC International Division 327 Supply Chain Initiative at APR Limited 331 Managing Tendupatta Collection Operations 341 Supply Chain Management at Dalmia Cement Ltd 355 Power Equipments (India) Ltd 363 The Global Green Company 375 Marico Industries: my SAP Supply Chain Management 395 Subhiksha: Managing Store Operations 415 I Brand and Company Index 433. ; Subject Index 437