Like no other text on the subject, Supply Chain Management: A Global Perspective provides a balanced and integrated perspective of both the foundational principles and pragmatic, business-oriented functions of SCM. Highlighting the holistic and interconnected nature of SCM, this comprehensive volume addresses supply chain strategy, design, planning, controlling, management and more. The text features numerous real-world business examples that illustrate SCM best practices while helping students understand the complexities of SCM decision making.
Now in its third edition, this well-respected text provides a global focus, cross-functional approach, and strong pedagogy. Clear, student-friendly chapters contain discussion questions, case studies, and examples designed to develop managerial thinking, explore key managerial issues, and bring difficult concepts to life. Detailed yet accessible coverage of topics including operations management, sourcing, logistics, forecasting, demand planning, and sustainable supply chain management offers a realistic practitioner’s view of SCM in the contemporary business landscape.
Table of Contents
Preface xi
1 Introduction To Supply Chain Management 1
What is Supply Chain Management (SCM)? 3
Supply Chain Leader’s Box: Amazon.com 9
The Boundary-Spanning Nature of SCM 10
The Rise of SCM 13
Supply Chain Leader’s Box: Dell Computer Corporation 14
Characteristics of a Competitive Supply Chain 14
Global Insights Box: Zara 15
Trends in SCM 16
Supply Chain Leader’s Box: Wal-Mart 17
Big Data Analytics Box: Tesco 18
Managerial Insights Box - Outsourcing Innovation: Goldcorp Inc. 22
Empowering Entrepreneurs Box 23
Careers in SCM and Professional Organizations 23
Chapter Highlights 24
Key Terms 24
Discussion Questions 24
Case Study: McNulty’s Muscular Materials (MMM) 25
Case Study: Making Decisions with Data Analytics: FutureChain 25
Bibliography 26
2 Supply Chain Strategy 27
What is Supply Chain Strategy? 29
Achieving a Competitive Advantage 30
Supply Chain Leader’s Box: Wal-Mart 31
Global Insights Box: Toyota Motor Corporation 33
Building Blocks of Supply Chain Strategy 33
Managerial Insights Box - Outsourcing Alliances: Li & Fung Ltd. 39
Supply Chain Strategic Design 40
Supply Chain Leader’s Box: Barlean’s Organic Oils 43
Strategic Considerations 44
Big Data Analytics Box: Amazon 45
Empowering Entrepreneurs Box 46
Productivity as a Measure of Competitiveness 46
Chapter Highlights 48
Key Terms 48
Discussion Questions 49
Problems 49
Case Study: Surplus Styles 49
Case Study: Making Decisions with Data Analytics: Whole Goods 50
Bibliography 50
3 Network and System Design 51
The Supply Chain System 53
Supply Chain Leader’s Box - Moving to Process Thinking: LG Electronics 56
Understanding Processes: Theory of Constraints (TOC) 56
Integration of Supply Chain Processes 61
Designing Supply Chain Networks 62
Managerial Insights Box: Coca-Cola 63
Big Data Analytics Box: Segmentation in Retail 66
Empowering Entrepreneurs Box 66
Enterprise Resource Planning (ERP) 66
Chapter Highlights 69
Key Terms 69
Discussion Questions 69
Problems 70
Case Study: Boca Electronics LLC 70
Case Study: Making Decisions with Data Analytics: J-Consulting 71
Bibliography 71
4 Marketing 72
What is Marketing? 74
Supply Chain Leader’s Box: Gap Inc. 75
Supply Chain Leader’s Box - Accommodating Changing Customer Preferences: PepsiCo 77
Customer-Driven Supply Chains 78
Managerial Insights Box - Understanding the Customer: Target 80
Delivering Value to Customers 82
Global Insights Box - Global Customer Service: Coca-Cola Japan 86
Channels of Distribution 87
Managerial Insights Box - Changing the Distribution Channel: Steinway Pianos 89
Big Data Analytics Box: Oasis 91
Empowering Entrepreneurs Box 92
Chapter Highlights 92
Key Terms 92
Discussion Questions 93
Case Study: Gizmo 93
Case Study: Making Decisions with Data Analytics: Your Friend Mark 94
Bibliography 94
5 Operations Management 95
What is Operations Management (OM)? 97
Supply Chain Leader’s Box: Wal-Mart 100
Product Design 101
Big Data Analytics Box: Honda 102
Global Insights Box: Ryanair 103
Process Design 107
Managerial Insights Box - A New Manufacturing Process: Rapid Manufacturing 110
Facility Layout 110
Managerial Insights Box: Mazzi’s versus Totino’s Pizza 112
Line Balancing in Product Layouts 112
Process Automation 116
Global Insights Box: Kuka Robotics Corp. 116
Empowering Entrepreneurs Box 117
Chapter Highlights 118
Key Terms 118
Discussion Questions 118
Problems 119
Case Study: Making Decisions with Data Analytics: Song’s Mumbai Restaurant 119
Bibliography 120
6 Sourcing 121
What is Sourcing? 123
Supply Chain Leader’s Box - Co-Creation: The Auto Industry 126
The Sourcing Function 126
Sourcing and SCM 128
Global Insights Box - Outsourcing Analytics: Accenture 129
Supply Chain Leader’s Box - Risk Management: IBM 130
Managerial Insights Box - Outsourcing Alliances: Roots 133
Big Data Analytics Box: Fedex 135
Measuring Sourcing Performance 135
Empowering Entrepreneurs Box 136
Chapter Highlights 137
Key Terms 137
Discussion Questions 137
Problems 138
Class Exercise: Toyota 138
Case Study: Snedeker Global Cruises 138
Case Study: Making Decisions with Data Analytics: J&G 139
Bibliography 139
7 Logistics 141
What is Logistics? 143
Supply Chain Leader’s Box: United Parcel Service (UPS) 144
Logistics Tasks 149
Big Data Analytics Box - Autonomous Vehicles: Uber 149
Transportation 151
Supply Chain Leader’s Box: Sysco 152
Global Insights Box - Rail Service Between China and Europe: “Northeast Passage” 153
Warehousing 154
Third-Party Logistics (3PL) Providers 157
Empowering Entrepreneurs Box 157
Chapter Highlights 157
Key Terms 158
Discussion Questions 158
Problems 158
Case Study: Strategic Solutions Inc. 159
Case Study: Making Decisions with Data Analytics: Morning Foods Inc. 160
Bibliography 161
8 Forecasting and Demand Planning 162
What is Forecasting? 164
Managerial Insights Box: Forecasting Beyond Widgets 166
Global Insights Box - Matching Supply and Demand: World Health Organization (WHO) 167
The Forecasting Process 168
Managerial Insights Box: Predictive Analytics 170
Types of Forecasting Methods 171
Big Data Analytics Box - Improving Weather Forecasting: NOAA 174
Time Series Forecasting Models 174
Causal Models 180
Measuring Forecast Accuracy 183
Collaborative Forecasting and Demand Planning 185
Supply Chain Leader’s Box - Using Collaborative Technology: Li & Fung 186
Empowering Entrepreneurs Box 188
Chapter Highlights 188
Key Terms 188
Discussion Questions 189
Problems 189
Case Study: Speedy Automotive 190
Case Study: Making Decisions With Data Analytics: TechGiant 192
Bibliography 192
9 Inventory Management 193
Basics of Inventory Management 195
Managerial Insights Box - Service Inventory: Zoots 196
Supply Chain Leader’s Box: John Deere & Company 200
Inventory Systems 200
Fixed-Order Quantity Systems 203
Big Data Analytics Box - Analytics Driven Inventory: Dell 209
Fixed-Time Period Systems 210
Independent versus Dependent Demand 212
Global Insights Box: Intel Corporation 212
Managing Supply Chain Inventory 213
Empowering Entrepreneurs Box 216
Chapter Highlights 216
Key Terms 217
Discussion Questions 217
Problems 218
Case Study: Making Decisions With Data Analytics: Colorworld 218
Bibliography 219
10 Lean Systems and Six-Sigma Quality 220
What is Lean? 222
Big Data Analytics Box: General Electric 224
Supply Chain Leader’s Box: U.S. Army 225
Lean Production 226
Global Insights Box: UPS 226
Respect for People 228
Total Quality Management (TQM) 230
Managerial Insights Box: Lean Tools in the Popular Press 233
Statistical Quality Control (SQC) 234
Supply Chain Leader’s Box: Intel Corporation 235
Six Sigma Quality 241
The Lean Six Sigma Supply Chain 243
Empowering Entrepreneurs Box 245
Chapter Highlights 246
Key Terms 246
Discussion Questions 246
Problems 247
Case Study: Buckeye Technologies 248
Case Study: Making Decisions with Data Analytics: Calloway Inc. 248
Bibliography 249
11 Supply Chain Relationship Management 250
Supply Chain Relationships 252
Big Data Analytics Box - The Network Effect: Amazon 255
Supply Chain Leader’s Box - Open Innovation: Proctor & Gamble 257
The Role of Trust 258
Global Insights Box - Growth Through Partnership: Coca-Cola in Africa 262
Managing Conflict and Dispute Resolution 262
Managerial Insights Box: Commodity Swapping 266
Negotiation Concepts, Styles, and Tactics 266
Relationship Management in Practice 271
Empowering Entrepreneurs Box 273
Chapter Highlights 274
Key Terms 274
Discussion Questions 274
Case Study: Lucid v. Black Box 274
Case Study: Making Decisions with Data Analytics: Buckeye Deliveries 275
Bibliography 276
12 Global Supply Chain Management 277
Global Supply Chain Management 279
Supply Chain Leader’s Box - Challenges of Global Culture: Wal-Mart 281
Global Market Challenges 283
Managerial Insights Box: Coca-Cola’s China Branding Challenge 285
Global Infrastructure Design 287
Big Data Analytics Box - Supplier Risk: Cisco 288
Cost Considerations 289
Managerial Insights Box - Beyond Cost: BMW 290
Political and Economic Factors 291
Empowering Entrepreneurs Box 293
Chapter Highlights 294
Key Terms 294
Discussion Questions 294
Case Study: Wú’s Brew Works 294
Case Study: Making Decisions with Data Analytics: Mika Enterprises 299
Bibliography 299
13 Sustainable Supply Chain Management 300
What is Sustainability? 302
Global Insights Box: The Great Pacific Garbage Patch 303
Supply Chain Leader’s Box: Fibria Celulose 305
Evaluating Sustainability in SCM 309
Big Data Analytics Box: Coca-Cola 317
Sustainability in Practice 319
Managerial Insights Box: Carbon Fiber Auto Parts 320
Empowering Entrepreneurs Box 323
Chapter Highlights 323
Key Terms 324
Discussion Questions 324
Case Study: Haitian Oil 324
Case Study: Making Decisions with Data Analytics: Wellington’s Coffee House 325
Bibliography 326
Appendix The Standard Normal Distribution A-1
Glossary G-1
Index I-1
