Supply Chain Architecture: A Blueprint for Networking the Flow of Material, Information, and Cash: Walker; William T.: 9781574443578: Book: Business & Economics: eCampus.com

About the Author

Preface

xix

Acknowledgments

xxiii

About This Book

xxv

A False Start

(10)

Friday, June 7

(3)

The Network Context

(4)

Defining the Customer's Context

(1)

Defining the Value Context

(2)

The Threshold of Competitiveness

(1)

Barriers to Success

(1)

In Summary

(2)

Conceptualizing a New Business Model

(32)

Monday, June 10

(4)

The Network Big Picture

(9)

Supply Chain Definition

(2)

The Upstream Supply Chain Network

(1)

The Midstream Supply Chain Network

(1)

The Downstream Supply Chain Network

(1)

The Reverse Stream Supply Chain Network

(1)

Follow the Material Flow

(1)

Separating Interwoven Networks

(2)

Network Mapping

(7)

Analyzing a Competitor's Network

(2)

Analyzing a Network from Internal Company Data

(2)

Analyzing a Reverse Supply Chain Network

(3)

Focus First on the Customer

(1)

Competitive Competencies

(1)

Thinking Outside the Box

(7)

Who's Keeping Score?

(1)

Imagine a Different Way of Doing Business

(6)

In Summary

(4)

Collaborating Network Relationships

(42)

Wednesday, June 26

(4)

Classifying Network Organizations

(5)

The Trading Partner

(1)

The Nominal Trading Partner

(1)

The Strategic Nominal Trading Partner

(1)

The Network Orchestrator

(2)

Network Relationship Dynamics among the Trading Partners

(1)

Designing the Core Network

(26)

Focus on Trading Partners and the Material Flow

(1)

Designing Downstream Fulfillment

(7)

Designing Midstream Manufacturing

(8)

Designing the Upstream Supply Base

(4)

Designing the Reverse Stream

(6)

Managing Risk in Trading Partner Relationships

(4)

The Relationship Life Cycle

(1)

The Partnership Agreement

(3)

In Summary

(3)

Designing a Competitive Network

(44)

Friday, June 28

(4)

Linking the Trading Partners

(4)

The Basic Building Block of Network Flows

(3)

Adding Nominal Trading Partners

(1)

APICS Supply Chain Management Principles

(1)

Evaluating a Competitive Network Design

(2)

Network Partitioning to Reduce Landed Cost

(7)

At One Extreme: The Vertically Integrated BOM

(2)

At The Other Extreme: The Internationally Partitioned BOM

(3)

The Elements of Landed Cost

101

(2)

Network Length and Width Relationships with the Product BOM

103

(1)

The Velocity Principle

103

(8)

The Order-to-Delivery-to-Cash Cycle

103

(1)

Process Mapping the Order-to-Delivery-to-Cash Cycle

104

(4)

Maximizing Velocity

108

(3)

The Variability Principle

111

(14)

Physical Distribution Connections---Transit Time

111

(1)

Express Small Parcel [Next Day/Days]

111

(1)

Motor Freight [Hours/Days/Week]

112

(1)

Airfreight [Half Day/Days]

112

(1)

Rail Freight [Days/Week]

112

(1)

Ocean Freight [Days/Weeks]

113

(1)

Intermodal

113

(1)

Special Transportation

113

(1)

Incoterms

114

(1)

Physical Distribution Connections---Customs Clearance Time

114

(1)

Import Duty Compliance

114

(3)

Anti-Terrorism Security Measures

117

(1)

Free Trade Zone/Foreign Trade Zone

117

(1)

Export License Compliance

117

(1)

Information Flow Connections

118

(1)

Cash Flow Connections

119

(1)

Letter Of Credit [Days/Weeks/Months]

119

(1)

Check Sent by Surface Mail [Days/Week]

120

(1)

Check Sent Overnight by the US Postal Service, FedEx or DHL [Day]

120

(1)

Factoring [Days]

120

(1)

Credit Card/Procurement Card [Minutes]

120

(1)

Electronic Funds Transfer [Minutes]

121

(1)

Methods of Paying Duty

121

(1)

The Normal Distribution

121

(1)

Minimizing Variability

122

(3)

In Summary

125

(4)

Overcoming Information Boundaries

129

(40)

Tuesday, July 9

129

(3)

Scoping the Information System Discussion

132

(1)

Assessing the Information System as an Asset or a Liability

133

(6)

Provides Information versus Data

133

(2)

Meets All Process Coverage Requirements

135

(2)

Minimizes Risk Exposure

137

(1)

Costs Minimized for Information Systems Maintenance

138

(1)

Basic Data Structures

139

(9)

Subcycle Data Structures

139

(3)

BOM Data Structures

142

(3)

Physical Inventory and Cash Inventory Data Structures

145

(2)

Public, Private, and Trade Secret Information

147

(1)

Partitioned Networks

148

(6)

Nonubiquitous Information

148

(2)

Auditing the Network Design

150

(1)

A Virtual Enterprise Example

150

(4)

Tracking and Tracing

154

(3)

Trading Information for Inventory

154

(3)

Subtlety in Tracing

157

(1)

Competing with Parallel Information Flows

157

(8)

Subcycles in Serial Networks

157

(3)

Paralleling Subcycles to Overlap Orders

160

(3)

Paralleling Subcycles to Eliminate Invoicing

163

(2)

Industry Standards and Best Practices

165

(2)

The Supply-Chain Council Interindustry Best Practices

166

(1)

The VICS Interindustry Standards

167

(1)

In Summary

167

(2)

Leading Change in Performance Measurement

169

(40)

Thursday, July 11

169

(4)

Moving From a Cost View to a Throughput View

173

(4)

State a Clear Objective

173

(1)

Speak to a Compelling Vision

174

(1)

Fully Disclose the Rewards and the Risks

175

(1)

Define the Right Global Performance Measures

176

(1)

Business Process Orientation

177

(2)

The BPO Components of Supply Chain Management

177

(1)

Levels of BPO Maturity Drive Competitive Results

178

(1)

Defining a Global Performance Measure

179

(7)

The Equivalent Throughput Global Performance Measure

179

(4)

Integrating the Performance Measure into a Network Dashboard

183

(1)

A Food Industry Example

184

(2)

Negotiate---Communicate---Educate

186

(5)

Negotiate---Communicate---Educate

191

(6)

What Is the Message?

191

(1)

How Is It Communicated?

192

(1)

When Is It Communicated?

192

(2)

An Example Communications Plan

194

(2)

Feedback and Damage Control

196

(1)

Negotiate---Communicate---Educate

197

(1)

Project Management for Performance Measures

198

(7)

Set the Project Scope and Organize the Team for Success

198

(2)

The Red Dot/Green Dot Project Management and Communication Tool

200

(2)

Risk Management: Scenario Planning, Contingencies and Triggers

202

(2)

Project Tracking with Contingency Triggers

204

(1)

In Summary

205

(4)

Operating a Competitive Network

209

(48)

Thursday, July 18

209

(4)

An Introduction to Network Operations

213

(3)

The Composite BOM

213

(2)

The Push/Pull Boundary

215

(1)

Evaluating a Competitive Network Operation

216

(1)

The Impact of Network Partitioning on Working Capital

217

(5)

Outsourcing Implications on the Balance Sheet

218

(3)

The Downside of Outsourcing

221

(1)

The Vocalize Principle

222

(14)

A Continuum of Network Operating Modes

222

(3)

Production and Inventory Control Inside the Four Walls

225

(1)

Production and Inventory Control in Distributed Networks

225

(1)

Network Operational Control

226

(1)

Manufacturing Resource Planning

226

(2)

Vendor Managed Inventory

228

(1)

Kanban

228

(1)

Synchronization

229

(1)

Network Routing of the Demand Signal in a Synchronized Operation

229

(2)

Optimizing the Network Throughput Engine

231

(2)

Locating the Network Push/Pull Boundary

233

(1)

Percent of the Network Vocalized

234

(2)

The Visualize Principle

236

(17)

The Capable Network

237

(1)

The Network Constraint

237

(2)

Determining the Required Network Constraint Capacity

239

(1)

Classifying Network Inventory

240

(1)

Determining the Required Inventory Buffer Size

241

(1)

The Total Network Inventory Performance Measure

242

(2)

The Impact of Variability and Uncertainty on Total Network Inventory

244

(3)

Using Network Visibility to Reduce Total Network Inventory

247

(2)

Driving Inventory Out of a Network

249

(2)

Percent of the Network Visualized

251

(2)

In Summary

253

(4)

Planning for Network Operations

257

(50)

Saturday, August 10

257

(3)

Setting a Network Context for Planning

260

(6)

Basic Network Operations

261

(1)

Matching Supply with Demand

262

(2)

Demand Distortion and the Bullwhip Effect

264

(1)

Exchange Curves

264

(2)

Network Operations Complexity

266

(7)

Constant, Repetitive Demand as the Planning Baseline

266

(2)

Operating under Dynamic Demand Patterns

268

(2)

Operating with Different Sets of Planning Rules

270

(1)

Operating with Discontinuities in the Supply Chain Network

271

(1)

Operating While Integrating or Disintegrating the Network

272

(1)

Forecasting

273

(7)

Forecasting the Right Things

273

(1)

Forecasting Demand

273

(1)

Forecasting Supply

274

(1)

Forecasting Supply for Remanufacturing

274

(1)

Forecasting Things Right

275

(1)

The Level Forecast

275

(2)

The Trend Forecast

277

(1)

The Seasonal Forecast

277

(1)

The Econometric Forecast

278

(1)

Calculating Forecast Error

278

(2)

Practical Push Planning Techniques

280

(11)

The Big Picture

280

(2)

Push Planning Examples

282

(5)

Time-Phased Offsets and Net Requirements Logic

287

(2)

The Impact of Lot Sizing

289

(1)

Purchase Orders versus Vendor Managed Inventory

290

(1)

Practical Pull Planning Techniques

291

(6)

Planning the Dynamic Range of a Capable Network

291

(1)

Subordinating Information and Cash Constraints to Material Constraints

292

(1)

Operating Rules at the Push/Pull Boundary

293

(1)

Preload Inventory for Synchronous Operation

293

(1)

A Detailed Pull Example

294

(2)

Synchronizing the Cash Flow

296

(1)

Synchronized versus Kanban Pull Operations

296

(1)

Closing the Network Planning Loop

297

(7)

Operations Replanning

298

(1)

A Network Example of Buffer Inflation

299

(1)

Risk Management

300

(4)

In Summary

304

(3)

Generating Top Line Growth and Bottom Line Profit

307

(48)

Sunday, September 1

307

(3)

The Value Principle

310

(5)

Value in the Eye of the Beholder

310

(1)

Value Cause and Effect

311

(1)

The Value Circle

312

(1)

Return On Invested Capital

313

(2)

Optimizing the Network

315

(3)

Networking the Flow of Material, Information, and Cash

315

(1)

An Excel Spreadsheet Analogy

316

(2)

First Level Network Optimization

318

(7)

Rationalizing the Core Network Footprint

318

(2)

An Example of Rationalizing the Core Network Footprint

320

(5)

Second Level Network Optimization

325

(4)

The Essential Node Connections

325

(1)

Rationalizing the Core (Nominal) Trading Partner Subcycles

326

(1)

An Example of Rationalizing the Subcycles

327

(2)

Third Level Network Optimization

329

(7)

Responsiveness, Flexibility, and Adaptability

330

(2)

Closing the Feedback Loop for Planning

332

(1)

Closing the Feedback Loop for Performance Measures

333

(1)

An Example of Optimizing Responsiveness

334

(2)

Matching Demand with Supply

336

(5)

The Pricing Interface

337

(1)

Dynamic Pricing

338

(3)

The Top and Bottom Line

341

(9)

Network Optimization (Cause) and the Income Statement (Effect)

341

(4)

Network Optimization (Cause) and the Balance Sheet (Effect)

345

(2)

The Cash-To-Cash Cycle

347

(1)

Network Risk Management Related to Financial Performance

348

(2)

In Summary

350

(5)

A New Start

355

(26)

Symptoms of a Deeper Problem

355

(8)

What is the Business, and What Markets are Served by This Organization?

360

(1)

What is the Product Delivered by This Organization?

360

(1)

What are the Main Commodities Supplied to This Organization?

361

(1)

Who are the Other Trading Partners in the Current Network?

362

(1)

Prepare for Success

363

(10)

Where Does This Organization Fit into the Current Supply Chain Network?

363

(3)

What Is the Business Strategy?

366

(1)

Who Should Be Part of the Solution?

366

(4)

Where Is the Organization Competitively?

370

(1)

How Does This Organization Currently Measure Its Performance?

370

(1)

How Should the Organization Be Measured?

370

(1)

What Is the Program Objective and Deadline for Change?

371

(2)

Why Will Focusing on Supply Chain Management Make a Difference when the Issue Is a Revenue Shortfall? Why not Just Increase the Sales Effort?

373

(1)

Navigating an Aggressive Course

373

(3)

A New Start

376

(4)

Epilogue

380

(1)

Appendix A The Network Blueprint

381

(24)

First Steps and the Environmental Context

381

(2)

Step 1: State the Network Objective in the Context of the Business Strategy (Chapter 2)

381

(1)

Step 2: Identify Customer Requirements in the Context of the Competitive Environment (Chapter 2)

382

(1)

Step 3: Benchmark the Competition (Chapter 2)

382

(1)

Network Blueprint Sheet #1: Network Design

383

(6)

The Network Design Specification

383

(1)

Step 4: Assemble a Set of Value-Adding Trading Partners to Transverse the Network (Chapter 3)

384

(1)

Step 5: Test that the Organizations in the Core Network are All Trading Partners (Chapter 3)

384

(1)

Step 6: Ensure That the Core Network Aligns with the Business Strategy (Chapter 2)

385

(1)

Step 7: Optimize the Product Cost Structure within the Core Network (Chapter 4)

385

(1)

Step 8: Rationalize the Length and Width of the Core Network (Chapter 3)

386

(1)

Step 9: Define the Set of Information-to-Material Subcycles (Chapter 4)

386

(1)

Step 10: Define the Set of Information-to-Cash Subcycles (Chapter 4)

387

(1)

Step 11: Maximize the Order-to-Delivery-to-Cash Velocity Among Trading Partners (Chapters 4, 5)

387

(1)

Step 12: Extend the Core Network to Reach Every Customer, to Complete the Composite BOM, and to Access Every Supplier (Chapter 4)

388

(1)

Step 13: Minimize Network Order-to-Delivery-to-Cash Variability (Chapters 4, 5)

388

(1)

Network Blueprint Sheet #2: The Composite BOM

389

(3)

The Product BOM Specification

390

(1)

Step 14: Generate a Composite BOM (Chapter 7)

391

(1)

Step 15: List All SKUs and Pareto the List by Revenue and by Contribution Margin (Chapter 9)

391

(1)

Step 16: Determine a Predominant BOM Type from the Composite BOM (Chapters 7, 9)

391

(1)

Step 17: Fit the BOM to the Network and Decide the Network Operating Mode (Chapter 7)

392

(1)

Network Blueprint Sheet #3: Network Operations

392

(11)

The Network Operation Specification

393

(1)

Step 18: Locate the Push/Pull Boundary of Inventory Buffers and Cash Buffers Based on Customer Expectations and Competitive Delivery (Chapter 7)

394

(1)

Step 19: Determine Network Capability Over the Expected Demand Uncertainty (Chapters 7, 8)

394

(1)

Step 20: Identify the Network Constraint and the Network Orchestrator (Chapters 3, 8)

394

(1)

Step 21: Position and Size the Inventory Buffers (Chapters 7, 8)

395

(1)

Step 22: Analyze the Composite BOM for Opportunities to Postpone and to Risk Pool Inventory. Use Statistical Safety Stock on Unique Materials to Support Mix Variation (Chapters 7, 8)

396

(1)

Step 23: Forecast the Right Things and Forecast Things Right (Chapter 8)

396

(1)

Step 24: Broadcast Demand in Parallel to Minimize the Bullwhip Effect (Chapter 7)

397

(1)

Step 25: Use Collaborative Pull Planning in the Pull Zone (Chapter 8)

397

(1)

Step 26: Use Collaborative Push Planning in the Push Zone (Chapter 8)

397

(1)

Step 27: Maximize the Vocalization of Demand Across the Network (Chapter 7)

398

(1)

Step 28: Synchronize the Flow of Cash Across the Network (Chapters 5, 8)

398

(1)

Step 29: Plot the Principle Axes on the Value Circle (Chapters 4, 7)

398

(2)

Step 30: Plot Global Performance Measures on the Value Circle (Chapters 4, 6, 7, 9)

400

(1)

Step 31: Maintain Network Alignment with the Business Strategy (Chapter 9)

401

(1)

Step 32: Optimize the Inventory and Cash Assets in the Nodes and Pipelines (Chapters 5, 7, 9)

401

(1)

Step 33: Maximize Visualization Throughout the Network (Chapters 6, 7)

401

(1)

Step 34: Use the Perfect Order As a Measure of Quality to the Customer (Chapter 9)

402

(1)

Step 35: Use ROIC to Measure Shareholder Value (Chapter 9)

402

(1)

Step 36: Optimize Network Planning and Performance Measurement Feedback (Chapter 9)

402

(1)

Final Steps

403

(2)

Step 37: Fit an Information System to the Network (Chapter 5)

403

(1)

Step 38: Manage Change Continuously (Chapters 6, 10)

404

(1)

Appendix B

Bibliography

405

(2)

Index

407


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