Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems

✍ Scribed by Robert B. Handfield Ernest L. Nichols Jr.

• Publisher: FT Press
• Year: 2002
• Tongue: English
• Leaves: 398
• Category: Library

✦ Synopsis

Supply chains exist for one reason: to create customer value. Radical changes in every aspect of business and technology have fostered the emergence of integrated "value chains" that maximize customer value by maximizing efficiency and integration. This book identifies key emerging trends and drivers in supply chain management, introduces powerful new strategies for redesigning supply chains, and presents comprehensive global case studies showing how Nortel and General Motors have transformed their own supply chains to optimize value and drive out costs. The authors begin by reviewing the state-of-the-art in supply chain management, and emerging trends that will lead to even greater change in the coming years. They show how to map an existing supply chain network, identify and integrate information flows within the organization, and find the "sweet spots" -- changes that will drive the greatest added value. They show how to enhance collaboration and trust throughout the supply chain; integrate customers and suppliers to design products that support efficient supply chains; and how to make the most of strategic cost management techniques.The book includes detailed chapters on B2B e-commerce, on creating information visibility on the Web, and finally on the key factors that lead to success in actual deployments.

✦ Table of Contents

Supply Chain Redesign Transforming Supply Chains into Integrated Value Systems......Page 2
Title Page......Page 4
Dedication Page......Page 10
Contents......Page 12
Preface......Page 22
Acknowledgements......Page 24
About the Authors......Page 26
CHAPTER 1 Supply Chain Management: Transforming Supply Chains into Integrated “Value Systems”......Page 28
Defining Supply Chains......Page 35
Increasing Customer Demands for Value Across the Supply Chain......Page 39
Supply Chain Relationships......Page 41
Information Systems and Supply Chain Management......Page 44
A Process Model: SCM for Value System Creation......Page 51
Internal Integration Between Business Functions......Page 52
Collaboration with Suppliers and Customers......Page 53
B2B Integration: The Final Step.......Page 55
Change Management: The Challenge Facing Supply Chain Managers......Page 59
Endnotes......Page 61
CHAPTER 2 Understanding and Improving Supply Chains and Key Supply Chain Processes......Page 62
Introduction......Page 65
Process Mapping......Page 67
Relationship Mapping5......Page 69
Process Flow Charts......Page 71
Internal Supply Chains......Page 75
External Supply Chains......Page 76
Gaining Insights into Current Organizational Practices......Page 77
Joint Projects between Supply Chain Members......Page 78
Role of Benchmarking......Page 79
Cycle Time Overview......Page 80
Causes of Long Cycle Times11......Page 81
Opportunities for Cycle Time Reduction across the Supply Chain......Page 84
Re-Engineering Supply Chain Logistics......Page 88
Logistics as a Source of Competitive Advantage for the Supply Chain......Page 89
Role of Third-Party Logistics Service Providers......Page 90
International Considerations......Page 91
Re-Engineering Challenges and Opportunities......Page 92
The Supply Chain Operations Reference Model (SCOR)......Page 94
Supply Chain Performance Measurement......Page 95
The “Balanced Scorecard” Approach to Supply Chain Performance Measurement......Page 96
What Should We Measure?......Page 97
Procter and Gamble’s Perfect Order System......Page 100
Total Cost......Page 101
Summary......Page 103
Endnotes......Page 105
CHAPTER 3 Internal Integration— Managing Information Flows within the Organization......Page 110
A Historical Perspective......Page 113
Drivers of Supply Chain Systems and Applications......Page 114
Internal and External Strategic Integration......Page 115
Availability of Powerful Information Systems and Technology......Page 116
Replace Obsolete Systems......Page 117
Strategic Cost Management......Page 118
Enterprise Resource Planning (ERP)......Page 121
Implementing ERP Systems......Page 123
ERP “Meltdowns”......Page 125
Supply Chain ERP Modules......Page 127
ERP and Data Warehouses......Page 129
Customer Relationship Management......Page 130
When Your Web Site is Not Aligned With Your Business Strategies......Page 134
Decision Support Systems......Page 135
Summary......Page 137
Endnotes......Page 138
CHAPTER 4 The Financial Impacts of SCM—Finding the “Sweet Spot”......Page 140
Insourcing/Outsourcing: A Controversial Issue......Page 143
Initiating the Insourcing/Outsourcing Decision......Page 145
Strategy Development......Page 146
Shifting Technology Life Cycles......Page 147
Core Competence......Page 148
Technological Maturity......Page 150
Assessing Costs......Page 152
Insourcing Disadvantages......Page 153
Outsourcing Advantages......Page 155
Outsourcing Disadvantages......Page 156
Summary......Page 167
Endnotes......Page 168
CHAPTER 5 Creating Collaboration and Trust in the Supply Chain......Page 170
Roots of Supply Chain Relationship Management......Page 173
NEC’s Purchasing Policy5......Page 176
Honda’s Supplier Relationships6......Page 177
What Makes Alliances Different from Other Relationships?......Page 178
A Conceptual Model of Alliance Development7......Page 181
Level One: Alliance Conceptualization......Page 183
Level Two: Alliance Pursuit......Page 185
Level Three: Alliance Selection......Page 186
Level Four: Alliance Implementation and On-Going Assessment......Page 188
Developing a Trusting Relationship with Supply Chain Partners......Page 190
Reliability......Page 191
Competence......Page 192
Affect-Based Trust (“Goodwill”)......Page 193
Vulnerability......Page 194
Loyalty......Page 195
A Road Map to Trust......Page 199
Mechanisms to Support the Relationship......Page 200
Confidentiality......Page 201
Research and Development......Page 202
Leverage......Page 203
Summary......Page 204
Endnotes......Page 205
CHAPTER 6 Customer/Supplier Integration into New Product Development......Page 208
Changes to the New Product Development Process......Page 211
Supplier Integration Approaches......Page 213
Supplier Integration Into New Product Development Process Model......Page 216
Identifying Desired Supplier Capabilities and Potential Suppliers......Page 217
Supplier Risk Assessment......Page 220
Assessing the Supplier’s Technology Roadmap......Page 223
Timing of Supplier Integration......Page 225
Process Engineering Support......Page 227
Financial and Facility Support......Page 228
Summary......Page 229
Endnotes......Page 230
CHAPTER 7 Strategic Cost Management in a Global Supply Chain......Page 232
The Financial Impacts of Supply Chain Management: Rolling Up the Numbers......Page 234
Strategic Cost Management Initiatives Across the Supply Chain......Page 237
Volume Leveraging and Cross Docking: Harvesting the Low-Hanging Fruit......Page 239
Cross Docking......Page 242
Design for Supply Chain Management......Page 245
Total Cost of Ownership19......Page 250
Developing a Total Cost System......Page 251
Applications of Total Cost of Ownership Data......Page 253
Elements of Total Cost......Page 254
Global Logistics and Material Positioning......Page 257
Global Supplier Development......Page 259
Target Pricing24......Page 261
Target Pricing Defined......Page 262
Prerequisites for Successful Target and Cost-Based Pricing......Page 263
Cost-Based Pricing Applications......Page 264
The “Greening” of the Supply Chain: Life Cycle Costing, Re-Manufacturing, and Recycling25......Page 265
Green Supplier Evaluation and Selection Practices......Page 268
Surplus and Scrap Disposition......Page 269
Product Design, Packaging, and Labeling......Page 271
Activity-Based Costing......Page 273
Executive Support: Making the Business Case......Page 274
Endnotes......Page 275
CHAPTER 8 Navigating the Business to Business (B2B) E-Commerce Landscape......Page 280
Core Technology Architectures......Page 283
Who Pays for the Internet?......Page 284
Advantages of the Internet......Page 285
Disadvantages of the Internet......Page 286
EDI: The Technology That Started It All......Page 287
Virtual Private Networks: The Next Generation......Page 290
Auctions, Hubs, and Exchanges4......Page 292
Aggregation or Matching, Neutral or Biased?......Page 295
Reverse Auctions......Page 296
Standards: The Basis for B2B Integration5......Page 298
Open Applications Group (OAG)......Page 300
Java EC Framework......Page 301
Open-EDI Reference Model (ISO 14662)......Page 302
Spirit......Page 303
Open Buying on the Internet (OBI)......Page 304
Open Financial Exchange (OFX)......Page 305
RosettaNet......Page 306
Open Application Group (OAG)......Page 307
Criteria to Consider......Page 308
Symmetric e-Business Processes......Page 310
Asymmetric E-Business Processes......Page 312
Advantages of Symmetric and Asymmetric Standards......Page 313
Digital Cash......Page 314
The UNSPSC Code......Page 315
Problems With Implementing Standards......Page 317
Endnotes......Page 318
CHAPTER 9 Creating Information Visibility......Page 320
The Bullwhip Effect......Page 322
Supply-Chain Organizational Dynamics......Page 323
What is Information Visibility?......Page 325
Benefits of Information Visibility......Page 327
I-Supply: A Visibility System that Works!......Page 328
A Fictional Example of Supply-Chain Information Visibility......Page 332
Events in the Supply Chain......Page 335
Company Profiles......Page 341
Insource or Outsource System Development?......Page 342
What Information Should Be Shared?......Page 343
What Are The Required System Capabilities......Page 344
System Implementation......Page 346
What are the Internal Company Criteria Required for Functionality of the System?......Page 347
Collaborative Contract Management Visibility Systems......Page 355
Deploying Information Visibility Systems: A Case Example......Page 357
End Notes......Page 361
CHAPTER 10 Managing Change in the Supply Chain: Lessons from General Motors......Page 364
Managing Change in the Supply Chain......Page 366
Radical Change Management: The Lopez Era6......Page 368
Changing the Purchasing Culture......Page 371
Internal Integration of Supply Chain Functions......Page 372
The New Era of Order to Delivery: Drivers for Change......Page 375
The Customer in Control......Page 377
GM’s Response......Page 378
Changing the Culture for Supply Chain Redesign......Page 381
Organizational Transformation......Page 382
Future Challenges......Page 385
Endnotes......Page 389
INDEX......Page 392