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Supply Chain Management: A Global Perspective, 2nd Edition



Supply Chain Management: A Global Perspective, 2nd Edition

Nada R. Sanders

ISBN: 978-1-119-39232-3 September 2017 352 Pages

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Supply chain management, rapidly-advancing and growing ever more important in the global business climate, requires an intense understanding of both underlying principles and practical techniques. Including both a broad overview of supply chain management and real-world examples of SCM in companies ranging from small to large, this book provides students with both the foundational material required to understand the subject matter and practical tips that demonstrate how the latest techniques are being applied. Spanning functional boundaries, this well-regarded book is now in its second edition and has quickly become a standard course text at many universities.

This newest edition continues to provide a balanced, integrative, and business-oriented viewpoint of the material, and deeply explores how SCM is intertwined with other organizational functions. New material has been added to address the importance of big data analytics in SCM, as well as other technological advances such as 3-D printing, cloud computing, machine learning, driverless vehicles, the Internet of Things, RFID, and others.

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Preface ix

1 Introduction to Supply Chain Management 1

What is Supply Chain Management (SCM)? 3

Supply Chain Leader’s Box: 9

The Boundary-Spanning Nature of SCM 9

The Rise of SCM 12

Supply Chain Leader’s Box: Dell Computer Corporation 13

Characteristics of a Competitive Supply Chain 14

Global Insights Box: Zara 15

Trends in SCM 16

Supply Chain Leader’s Box: Wal-Mart 16

Big Data Analytics Box: Tesco 18

Managerial Insights Box—Outsourcing Innovation: Goldcorp Inc. 22

Careers in SCM and Professional Organizations 23

Chapter Highlights 23

Key Terms 24

Discussion Questions 24

Case Study: McNulty’s Muscular Materials (MMM) 24

Case Questions 24

References 25

2 Supply Chain Strategy 26

What is Supply Chain Strategy? 28

Achieving a Competitive Advantage 29

Supply Chain Leader’s Box: Wal-Mart 30

Global Insights Box: Toyota Motor Corporation 32

Building Blocks of Supply Chain Strategy 32

Managerial Insights Box—Outsourcing Alliances: Li & Fung Ltd. 38

Supply Chain Strategic Design 39

Supply Chain Leader’s Box: Barlean’s Organic Oils 42

Strategic Considerations 43

Big Data Analytics Box: Amazon 44

Productivity as a Measure of Competitiveness 44

Chapter Highlights 46

Key Terms 47

Discussion Questions 47

Problems 47

Case Study: Surplus Styles 47

Case Questions 48

References 48

3 Network and System Design 49

The Supply Chain System 51

Supply Chain Leader’s Box—Moving to Process Thinking: LG Electronics 54

Understanding Processes: Theory of Constraints (TOC) 54

Integration of Supply Chain Processes 58

Designing Supply Chain Networks 60

Managerial Insights Box: Coca-Cola 61

Big Data Analytics Box: Segmentation in Retail 64

Enterprise Resource Planning (ERP) 64

Chapter Highlights 67

Key Terms 67

Discussion Questions 67

Problems 67

Case Study: Boca Electronics LLC 68

Case Questions 68

References 69

4 Marketing 70

What is Marketing? 72

Supply Chain Leader’s Box: Gap Inc. 73

Supply Chain Leader’s Box—Accommodating Changing Customer Preferences: PepsiCo 75

Customer-Driven Supply Chains 76

Managerial Insight’s Box—Understanding the Customer: Target 78

Delivering Value to Customers 80

Global Insights Box—Global Customer Service: Coca-Cola Japan 84

Channels of Distribution 85

Managerial Insights Box—Changing the Distribution Channel: Steinway Pianos 87

Big Data Analytics Box: Oasis 90

Chapter Highlights 90

Key Terms 91

Discussion Questions 91

Case Study: Gizmo 91

Case Questions 91

References 92

5 Operations Management 93

What is Operations Management (OM)? 95

Supply Chain Leader’s Box: Wal-Mart 98

Product Design 99

Big Data Analytics Box: Honda 100

Global Insights Box: Ryanair 102

Process Design 105

Managerial Insights Box—A New Manufacturing Process: Rapid Manufacturing 108

Facility Layout 108

Managerial Insights Box: Mazzi’s versus Totino’s Pizza 110

Line Balancing in Product Layouts 111

Process Automation 114

Global Insights Box: KUKA Robotics Corp. 115

Chapter Highlights 116

Key Terms 116

Discussion Questions 116

Problems 116

References 117

6 Sourcing 118

What is Sourcing? 120

Supply Chain Leader’s Box—Co-Creation: The Auto Industry 123

The Sourcing Function 123

Sourcing and SCM 125

Global Insights Box - Outsourcing Analytics: Accenture 126

Supply Chain Leader’s Box—Risk Management: IBM 127

Managerial Insights Box—Outsourcing Alliances: Roots 130

Big Data Analytics Box: FedEx 132

Measuring Sourcing Performance 132

Chapter Highlights 133

Key Terms 134

Discussion Questions 134

Problems 134

Class Exercise: Toyota 135

Case Study: Snedeker Global Cruises 135

Case Questions 136

References 136

7 Logistics 137

What is Logistics? 139

Supply Chain Leader’s Box: United Parcel Service (UPS) 140

Logistics Tasks 145

Big Data Analytics Box—Driverless Cars: Uber 145

Transportation 147

Supply Chain Leader’s Box: Sysco 148

Global Insights Box—Rail Service Between China and Europe: “Northeast Passage” 150

Warehousing 150

Third-Party Logistics (3PL) Providers 153

Chapter Highlights 153

Key Terms 154

Discussion Questions 154

Problems 154

Case Study: Strategic Solutions Inc. 154

Case Questions 156

References 156

8 Forecasting and Demand Planning 157

What is Forecasting? 159

Managerial Insights Box: Forecasting beyond Widgets 160

Global Insights Box—Matching Supply and Demand: World Health Organization (WHO) 162

The Forecasting Process 163

Managerial Insights Box: Predictive Analytics 165

Types of Forecasting Methods 166

Big Data Analytics Box—Improving Weather Forecasting: NOAA 168

Time Series Forecasting Models 169

Causal Models 175

Measuring Forecast Accuracy 178

Collaborative Forecasting and Demand Planning 180

Supply Chain Leader’s Box—Using Collaborative Technology: Li & Fung 181

Chapter Highlights 183

Key Terms 183

Discussion Questions 183

Problems 184

Case Study: Speedy Automotive 185

Case Questions 187

References 187

9 Inventory Management 188

Basics of Inventory Management 190

Managerial Insights Box—Service Inventory: Zoots 191

Supply Chain Leader’s Box: John Deere & Company 195

Inventory Systems 195

Fixed-Order Quantity Systems 198

Big Data Analytics Box—Analytics Driven Inventory: Dell 205

Fixed-Time Period Systems 205

Independent versus Dependent Demand 207

Global Insights Box: Intel Corporation 208

Managing Supply Chain Inventory 208

Chapter Highlights 212

Key Terms 212

Discussion Questions 212

Problems 213

References 213

10 Lean Systems and Six-Sigma Quality 214

What is Lean? 216

Big Data Analytics Box: General Electric 218

Supply Chain Leader’s Box: U.S. Army 219

Lean Production 220

Global Insights Box: UPS 221

Respect for People 223

Total Quality Management (TQM) 224

Managerial Insights Box: Lean Tools in the Popular Press 227

Statistical Quality Control (SQC) 228

Supply Chain Leader’s Box: Intel Corporation 229

Six Sigma Quality 236

The Lean Six Sigma Supply Chain 237

Chapter Highlights 240

Key Terms 240

Discussion Questions 240

Problems 241

Case Study: Buckeye Technologies 242

Case Questions 242

References 243

11 Supply Chain Relationship Management 244

Supply Chain Relationships 246

Big Data Analytics Box—The Network Effect: Amazon 249

Supply Chain Leaders’ Box—Open Innovation: Proctor & Gamble 251

The Role of Trust 252

Global Insights Box—Growth Through Partnership: Coca-Cola in Africa 256

Managing Conflict and Dispute Resolution 256

Managerial Insights Box: Commodity Swapping 260

Negotiation Concepts, Styles, and Tactics 260

Relationship Management in Practice 265

Chapter Highlights 267

Key Terms 267

Discussion Questions 267

Case Study: Lucid v. Black Box 268

Case Questions 268

References 268

12 Global Supply Chain Management 270

Global Supply Chain Management 272

Supply Chain Leader’s Box—Challenges of Global Culture: Wal-Mart 273

Global Market Challenges 276

Managerial Insights Box: Coca-Cola’s China Branding Challenge 278

Global Infrastructure Design 280

Big Data Analytics Box—Supplier Risk: Cisco 281

Cost Considerations 282

Managerial Insights Box—Beyond Cost: BMW 283

Political and Economic Factors 284

Chapter Highlights 286

Key Terms 286

Discussion Questions 287

Case Study: Wú’s Brew Works 287

Case Questions 291

References 292

13 Sustainable Supply Chain Management 293

What is Sustainability? 295

Global Insights Box: The Great Pacific Garbage Patch 296

Supply Chain Leaders Box: Fibria Celulose 298

Evaluating Sustainability in SCM 302

Big Data Analytics Box: Coca-Cola 310

Sustainability in Practice 312

Managerial Insights Box: Carbon Fiber Auto Parts 313

Chapter Highlights 316

Key Terms 316

Discussion Questions 317

Case Study: Haitian Oil 317

Case Questions 318

References 318

Appendix 319

Glossary 321

Index 329

New to this Edition:
  • Material new to this edition includes the addition of the effects of big data analytics on supply chains
  • With a new focus on technology, the book addresses advancements that are changing supply chains, from 3-D printing to cloud computing and driverless vehicles
  • Updated examples include key concepts applied to supply chains of various size companies, from small to large firms

Wiley Advantage:

  • Provides a comprehensive foundation of supply chain management, from a broad overview of SCM to strategic implementations and operational techniques
  • Offers readers cross-functional, integrated coverage of supply chain management applicable to the various areas of SCM
  • Features a global focus that takes into account global supply networks, international tariffs, foreign regulations, and many more
  • Includes content in each chapter to illustrates the latest business practices revolving around the topic addressed