Supply Chain Management Best Practices Second Edition DAVID BLANCHARD WILEY John Wiley & Sons, Inc.
Preface to the Second Edition Acknowledgments xv xvii PART I CHAPTER 1 INTRODUCTION TO SUPPLY CHAIN MANAGEMENT 1 If Supply Chain Is the Answer, Then What's the Question? 3, - 3 You Knew This Job Was Dangerous When You Took It 3 The Big Picture 5 The Supply Chain's Back Story 6 Roadblocks on the Supply Chain Path 8 Separating the Good from the Best 10 CHAPTER 2 Anatomy of a Supply Chain 13 13 Aerospace: Changing the Game, for Better or Worse 14 Automotive: Building Customer Loyalty for the Long Term 16 Chemicals: Finding the Right Supply Chain Formula 17 Consumer Packaged Goods: The Moment of Truth 18 Food and Beverage: Cutting Out the Middleman 20 High Tech/Electronics: Zero Latency 21 Pharmaceuticals: Fighting Counterfeiters with RFID 22 Retail: Customer Centricity 24 vu
VU1 Contents CHAPTER 3 Supply Chain Metrics: Measuring Up to High Standards 27 27 How to Prevent a Supply Chain Heart Attack 28 What Makes a Supply Chain Leader? 29 Measure Satisfaction 31 Everybody's Talking about Benchmarking 32 Do the Right Things 33 Supply Chain Checkup 33 Time for a Turnaround N Learn the SCOR 35 SCM for Dummies 36 Follow the Roadmap 37 Make It All Meaningful 38 34 PART II TRADITIONAL CORE PROCESSES OF SUPPLY CHAIN MANAGEMENT. 41 CHAPTER 4 Planning and Forecasting: Headed for the Future 43 43 A Bias against Good Plans 45 From Soup to*s&op 46 No Time Like the Real Time 47 The Truth Plays Out. 48 End-to-End Integration 49 The First Shall Be First 50 Analyze This 52' A Happy Ending 53 CHAPTER 5 Procurement: Go Right to the Source 55 55 Giving Procurement Its Due 56 Managing the Changes ' 57 Keep Your Friends Close and Your Suppliers Closer 58 Looking Backward to See Forward 59 Working for Every Penny 60 Ensuring a Healthy Supply Chain 6l
IX The War on Complexity 62 It Seemed like a Good Idea at the Time 63 An Online Car Wreck ' 64 A Rating Service for Buyers and Sellers 65 CHAPTER 6 Manufacturing: Supply Chain on the Make 67 67 A Direct Line to Supply Chain Success 68 Better Decisions for the Customer 70 Tying It All Together 71 Digital Supply Chains 71 Collaborating on Product Designs 73 Nearly Perfect 75 The Future of Manufacturing 77 CHAPTER 7 Transportation: Logistics a la Mode 79 79 Riding the Roads 80 Regulations and Deregulation 81 Fuel for Thought 82 A Capacity for Change 83 Know Thyself, and Thy Carrier Too 84 How to Achieve Sustainable Savings 85 Collaboration Is a Two-Way Street 86 A Carrier by Any Other Name 87 Automate to Consolidate ' 88 Get It There on Time 90 CHAPTER 8 Distribution and Warehousing: Going with the Flow 91 91 Virtual Inventory 92 Cross-Docking, Compliance, and Collaboration 94 Handle with Care 95 Where the Rubber Meets the Load 97 Can You Hear Me Now? 98 Wireless in the Warehouse 99
Turn, Turn, Turn Half Full or Half Empty? How to Better Manage Your Warehouse 100 101 102 CHAPTER 9 Site Selection: Location, Location, Location Striking the Proper Balance A Site for Sore Eyes Finding the Right Place A Look at Gillette's Distribution Network Cost versus Service Match Your Network to Your Business Strategy How Much Is Too Much? Weighing the Intangibles Quality over Quantity A Quick Guide to Site Selection 105 105 107' 108 109 110 111 112 113 114 115 116 CHAPTER 10 Globalization: It's a Not-So-Small World Playing by Somebody Else's Rules Develop a Global Vision Friendly Nations "Low Cost" Sometimes Means "Poor Service" Living in a Somewhat Flat World Keeping an Eye on China Take a Look for Yourself Finding the Next Global Hot Spot The Need for Supply Chain Visibility Closer to Home 119 119 120 121 122 124 125 126 128' 129 130 131 CHAPTER 11 Customer Service: Keeping the Customer Satisfied 133 133 The Perfect Order 134 The High Cost of Imperfection 135 One Good Return Deserves Another 136 Supply Chain in Reverse 138
XI Managing the Relationship Money in the Bank Supply Chain at Your Service A Culture of Customer Satisfaction 140 142 143 144 PART III CHAPTER 12 CHAPTER 13 SUPPLY CHAIN STRATEGIES 3PLs: When You'd Rather Not Do It Yourself A Shift to the Supply Chain Side Letting Somebody Else Do It Supply Chain Essentials and Nonessentials Finding Your Core Competency Square Pegs And Round Holes Think Strategically The Financial Impact of Outsourcing Staying in Touch Going beyond the 3PL Model Outpacing the Competition Collaboration: Extending the Enterprise Mutually Beneficial Relationships Winning Small Victories Respecting Your Partners A Better Way to Sell Mouthwash A Nine-Step Program for CPFR Great Expectations, So-So Results More Reliability and Better Service Challenges in Supplier Management How to Get the Most Out of a Relationship 145 147 147 148 149 150 151 153 153 154 155 156 157 159 159 160 161 162 163 165 165 '167 169 170 CHAPTER 14 Security: Seeking Shelter from Supply Chain Storms "It'll Never Happen Here" 173 173 174
Xll Contents CHAPTER 15 Customs-Trade Partnership against Terrorism Getting Countries to Talk to Each Other Sometimes Low Tech Is as Good as High Tech Taking Responsibility for Your Supply Chain Securing the Supply Chain 10+2 Taking Steps toward Effective Compliance Supply Chains at Risk An Investment Worth Making RFID: A Game of Tags The ABCs of RFID Proactive Replenishment In Search of Payback Tagging till the Cows Come Home Taking RFID Seriously Work the Bugs Out. A Matter of Privacy No Need to Be Passive 176 177 178 179 181 182 183 184 186 189 189 190 192 193 194 196 197 198 199 CHAPTER 16 - Green Supply Chains: It's Not Easy Going Green The Elephant in the Room Justifying the Cost Look for the Green Label The Carbon Footprint of a Banana Sustainability throughout the Supply Chain Good to Green How Big Blue Went Green Eco-Friendly Strategies Low-Hanging Fruit 203 203 204 205 206 207 209 209 211 212 213 CHAPTER 17 Continuous Improvement: Lean on Me 215 215
xiii From Push to Pull The Toyota Way Don't Settle for Occasional Improvement Lean Principles Lean, Mean Flying Machine The Value of Teamwork Leaning in the Right Direction 217 218 219 221 222 224 225 CHAPTER 18 The Supply Chain Profession: What Keeps You Up at Night? Talent Search Hiring Problem Solvers Training the Next Generation Optimizing the Workforce What Keeps You Up at Night? Gray Matters The Secret to Supply Chain Success 227 227 228 231 232 233 234 235 236 Notes 241 About the Author Index 261 263