Illustrates SCM best practices while helping students understand the complexities of SCM decision making
Now in its fourth edition, Supply Chain Management: A Global Perspective integrates the foundational principles and business-oriented functions of supply chain management (SCM) in one comprehensive volume. Providing students with a balanced and integrated perspective with a global focus, this market-leading textbook highlights the holistic and interconnected nature of SCM while addressing supply chain strategy, design, planning, sourcing, logistics, forecasting, demand planning, operations management, and more.
A standard text at universities around the world, Supply Chain Management offers cross-functional coverage, a student-friendly pedagogy, and a wealth of real-world examples of SCM in companies of various sizes. Author Nada R Sanders draws upon her extensive experience in academia and industry to provide both the foundational material required to understand the subject matter and practical tips that demonstrate how the latest techniques are being applied.
Supply chain management is advancing rapidly and becoming ever more important in the global business climate. Covering both the underlying principles and practical techniques of SCM, Supply Chain Management: A Global Perspective, Fourth Edition, remains an ideal textbook for upper-level undergraduate courses in Operations Management, Supply Chain Management, and Logistics Management programs.
New to this Edition:
- Updated content in each chapter illustrating the latest business practices in the context of SCM
- Increased focus on new and emerging technologies, including AI, that are changing supply chains
- New real-world examples of key concepts applied to supply chains of companies of various sizes and sectors
- New discussion topics reflecting recent international, government, and organizational policy issues relevant to SCM
- New and updated cases, discussion questions, examples, and classroom exercises
Wiley Advantage:
- Provides consistent and fully integrated coverage of all key areas of SCM concepts, strategic implementations, and operational techniques
- Examines supply chain management as a boundary-spanning function that is intertwined with other organizational areas
- Discusses how recent developments in trade, tax, tariffs, data protection, and national security impact the global supply change
- Contains extensive pedagogical tools and solved problems designed to make difficult concepts accessible
- Features a wealth of cases and examples of the latest business practices in supply chain management
- Includes access to a companion website with an extensive test bank, PowerPoint slides, an instructor's manual, and other teaching resources
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 10
The Boundary- Spanning Nature of SCM 10
The Rise of SCM 13
Supply Chain Leader’s Box: Dell Computer Corporation 15
Characteristics of a Competitive Supply Chain 15
Global Insights Box: Zara 16
Trends in SCM 17
Supply Chain Leader’s Box: Walmart 18
AI & Analytics Box: Tesco 21
Managerial Insights Box - Outsourcing Innovation: Goldcorp Inc. 25
Empowering Entrepreneurs Box 26
Careers in SCM and Professional Organizations 27
Chapter Highlights 27
Key Terms 27
Discussion Questions 28
Case Study: McNulty’s Muscular Materials (MMM) 28
Case Study: Making Decisions with Data Analytics: FutureChain 29
Bibliography 29
2 Supply Chain Strategy 30
What Is Supply Chain Strategy? 32
Achieving a Competitive Advantage 33
Supply Chain Leader’s Box: Walmart 35
Global Insights Box: Toyota Motor Corporation 36
Building Blocks of Supply Chain Strategy 37
Managerial Insights Box - Outsourcing Alliances: Li & Fung Ltd. 43
Supply Chain Strategic Design 43
Supply Chain Leader’s Box: Barlean’s Organic Oils 46
Strategic Considerations 48
AI & Analytics Box: Amazon 49
Empowering Entrepreneurs Box 50
Productivity as a Measure of Competitiveness 50
Chapter Highlights 52
Key Terms 52
Discussion Questions 53
Problems 53
Case Study: Surplus Styles 53
Case Study: Making Decisions with Data Analytics: Whole Goods 54
Bibliography 54
3 Network and System Design 55
The Supply Chain System 57
Supply Chain Leader’s Box: Walmart 58
Supply Chain Leader’s Box - Moving to Process Thinking: LG Electronics 61
Understanding Processes: Theory of Constraints (TOC) 61
Integration of Supply Chain Processes 66
Designing Supply Chain Networks 68
Managerial Insights Box: Coca- Cola 68
Big Data Analytics Box: Segmentation in Retail 72
Empowering Entrepreneurs Box 72
Enterprise Resource Planning (ERP) 72
Chapter Highlights 75
Key Terms 76
Discussion Questions 76
Problems 76
Case Study: Boca Electronics LLC 76
Case Study: Making Decisions with Data Analytics: J Consulting 77
Bibliography 78
4 Marketing 79
What Is Marketing? 81
Supply Chain Leader’s Box: Gap Inc. 83
Supply Chain Leader’s Box - Accommodating Changing Customer Preferences: Pepsico 85
Customer- Driven Supply Chains 86
Managerial Insights Box - Understanding the Customer: Target 88
Delivering Value to Customers 90
Supply Chain Leader’s Box: Amazon 95
Global Insights Box - Global Customer Service: Coca- Cola Japan 96
Global Insights Box - Global Adaptation: Mcdonald’s 96
Channels of Distribution 97
Managerial Insights Box - Changing the Distribution Channel: Steinway Pianos 100
Supply Chain Leader’s Box: Omnichannel Experience: Starbucks 102
Big Data Analytics Box: Oasis 102
Empowering Entrepreneurs Box 103
Chapter Highlights 103
Key Terms 104
Discussion Questions 104
Case Study: Gizmo 104
Case Study: Making Decisions with Data Analytics: Your Friend Mark 105
Bibliography 105
5 Operations Management 106
What Is Operations Management (OM)? 109
Supply Chain Leader’s Box: Walmart 112
Product Design 113
Big Data Analytics Box: Honda 115
Global Insights Box: Ryanair 116
Process Design 120
Managerial Insights Box - A New Manufacturing Process: Rapid Manufacturing 123
Facility Layout 124
Managerial Insights Box: Mazzi’s vs Totino’s Pizza 126
Line Balancing in Product Layouts 127
Process Automation 130
Global Insights Box: Kuka Robotics Corp. 131
Empowering Entrepreneurs Box 133
Chapter Highlights 133
Key Terms 133
Discussion Questions 133
Problems 134
Case Study: Making Decisions with Data Analytics: Song’s Mumbai Restaurant 134
Bibliography 135
6 Sourcing 136
What Is Sourcing? 138
Supply Chain Leader’s Box - Cocreation: The Auto Industry 141
The Sourcing Function 142
Sourcing and SCM 144
Global Insights Box - Outsourcing Analytics: Accenture 145
Supply Chain Leader’s Box - Risk Management: IBM 147
Supply Chain Leader’s Box: e- Auctions: Procter & Gamble (P&G) 150
Managerial Insights Box - Outsourcing Alliances: Roots 150
AI & Analytics Box: FedEx 152
Measuring Sourcing Performance 152
Empowering Entrepreneurs Box 154
Chapter Highlights 154
Key Terms 154
Discussion Questions 155
Problems 155
Class Exercise: Toyota 155
Case Study: Snedeker Global Cruises 156
Case Study: Making Decisions with Data Analytics: J&G 156
Bibliography 157
7 Logistics 158
What Is Logistics? 160
Supply Chain Leader’s Box: United Parcel Service (UPS) 161
Managerial Insights Box: Super Bowl Logistics 162
Logistics Tasks 167
Big Data Analytics Box - Autonomous Vehicles: Uber 167
Transportation 169
Supply Chain Leader’s Box: Sysco 170
Global Insights Box - Rail Service Between China and Europe: Northeast Passage 172
Warehousing 172
Third- Party Logistics (3PL) Providers 175
Empowering Entrepreneurs Box 176
Chapter Highlights 176
Key Terms 177
Discussion Questions 177
Problems 177
Case Study: Strategic Solutions Inc. 178
Case Study: Making Decisions with Data Analytics: Morning Foods Inc. 179
Bibliography 179
8 Forecasting and Demand Planning 180
What Is Forecasting? 182
Managerial Insights Box: Forecasting Beyond Widgets 184
Managerial Insights Box - Forecasting is Predicting Any Future Event 186
The Forecasting Process 187
Managerial Insights Box: Generative AI And Forecasting 190
Types of Forecasting Methods 190
Supply Chain Leader’s Box: Tesla Motors 192
AI and Analytics Box - Improving Weather Forecasting: National Oceanic and Atmospheric
Administration (NOAA) 194
Time Series Forecasting Models 195
Supply Chain Leader’s Box - Using Collaborative Technology: li & Fung 207
Empowering Entrepreneurs Box 208
Chapter Highlights 209
Key Terms 209
Discussion Questions 209
Problems 210
Case Study: Speedy Automotive 211
Case Study: Making Decisions with Data Analytics: TechGiant 213
Bibliography 213
9 Inventory Management 214
Basics of Inventory Management 216
Managerial Insights Box - Service Inventory: Zoots 217
Supply Chain Leader’s Box: John Deere & Company 221
Inventory Systems 222
Fixed- order Quantity Systems 224
AI and Analytics Box - Analytics- driven Inventory: Dell 231
Fixed- time Period Systems 232
Independent vs Dependent Demand 234
Global Insights Box: Intel Corporation 234
Managing Supply Chain Inventory 235
Empowering Entrepreneurs Box 239
Chapter Highlights 239
Key Terms 240
Discussion Questions 240
Problems 240
Case Study: Making Decisions with Analytics: ColorWorld 241
Bibliography 242
10 Lean Systems and Six Sigma Quality 243
What Is Lean? 245
Supply Chain Leader’s Box - Kaizen: Toyota 247
Artificial Intelligence (AI) and Analytics Box: General Electric 248
Supply Chain Leader’s Box: U.S. Army 249
Lean Production 250
Global Insights Box: UPS 250
Global Insights Box: Supplier Kanbans: Hewlett- Packard (HP) 252
Respect for People 253
Total Quality Management (TQM) 254
Supply Chain Leader’s Box: General Electric Company (GE) 255
Managerial Insights Box - Costs of Quality: Boeing And The 737 MAX Aircraft 256
Managerial Insights Box: Lean Tools in the Popular Press 260
Statistical Quality Control (SQC) 260
Supply Chain Leader’s Box: Intel Corporation 262
Six Sigma Quality 268
The Lean Six Sigma Supply Chain 270
Empowering Entrepreneurs Box 273
Chapter Highlights 273
Key Terms 274
Discussion Questions 274
Problems 274
Case Study: Buckeye Technologies 275
Case Study: Making Decisions with Data Analytics: Calloway Inc. 276
Bibliography 276
11 Supply Chain Relationship Management 277
Supply Chain Relationships 279
Box Big Data Analytics Box - The Network Effect: Amazon 283
Supply Chain Leader’s Box - Open Innovation: Procter & Gamble 285
The Role of Trust 286
Supply Chain Leader’s Box: Toyota 288
Global Insights Box - Growth Through Partnership: Coca- Cola in Africa 291
Managing Conflict and Dispute Resolution 291
Managerial Insights Box: Commodity Swapping 295
Negotiation Concepts Styles and Tactics 296
Relationship Management in Practice 302
Empowering Entrepreneurs Box 304
Chapter Highlights 304
Key Terms 305
Discussion Questions 305
Case Study: Lucid v. Black Box 305
Case Study: Making Decisions with Data Analytics: Buckeye Deliveries 306
Bibliography 306
12 Global Supply Chain Management 307
Global Supply Chain Management 309
Supply Chain Leader’s Box - Challenges of Global Culture: Walmart 311
Managerial Insights Box - Global Reach 312
Global Market Challenges 314
Managerial Insights Box: Coca- Cola’s China Branding Challenge 316
Global Infrastructure Design 318
Big Data Analytics Box - Supplier Risk: Cisco 321
AI and Analytics Box: Amazon’s Utilization of Information Technology 321
Cost Considerations 322
Managerial Insights Box - Beyond Cost: BMW 324
Political and Economic Factors 324
Empowering Entrepreneurs Box 327
Chapter Highlights 328
Key Terms 328
Discussion Questions 328
Case Study: Wú’s Brew Works 328
Case Study: Making Decisions with Data Analytics: Mika Enterprises 333
Bibliography 333
13 Sustainable Supply Chain Management 334
What Is Sustainability? 336
Global Insights Box: The Great Pacific Garbage Patch 337
Supply Chain Leader’s Box: Fibria Celulose 339
Evaluating Sustainability in SCM 345
Big Data Analytics Box: Coca- Cola 353
Sustainability in Practice 355
Managerial Insights Box: Carbon Fiber Auto Parts 356
Empowering Entrepreneurs Box 360
Chapter Highlights 360
Key Terms 360
Discussion Questions 361
Case Study: Haitian Oil 361
Case Study: Making Decisions with Data Analytics: Wellington’s Coffee House 362
Bibliography 362
Appendix The Standard Normal Distribution A-1
Glossary G-1
Index I-1
