Building Supply Chain Excellence in Emerging Economies

by Lee, Hau; Lee, Chung-Yee

• ISBN13: 9780387384283
• ISBN10: 0387384286
• Format: Hardcover
• Copyright: 2006-10-31
• Publisher: Springer Nature

Summary

The rapidly developing new economies in China, India, Hungary, Vietnam, Costa Rica, Mexico, Brazil, etc., are at the crossroads of almost all major supply chains. In fact, these emerging economies are in fact growing faster than the established industrial economies of the world. However, given the physical, social and cultural characteristics of the emerging economies, managing supply chains there could be even more challenging than in developed economies. How can we manage supply chains well in emerging economies, coordinate information flows with multiple partners, tackle challenges such as unexpected disruptions, diversify the risks and increase flexibilities, be efficient but at the same time contribute to the social and environmental developments of these economies, and use supply chain concepts and practices to improve the economic welfare of these countries, such as basic infrastructure developments and disaster relief, are the topics and issues of the book.BUILDING SUPPLY-CHAIN EXCELLENCE IN EMERGING ECONOMIES provides some insights on the answers to the above questions and will enable practitioners to gain insights on the developments, challenges and opportunities when operating supply chains in emerging economies. Innovative approaches are outlined and illustrated with examples of real-world experiences by progressive companies and thought leaders. We also hope that this collection will stimulate researchers to gain deeper understanding and develop methods in operating supply chains in emerging economies.We have organized the book in three key sections. Global Supply Chain: General Strategies and Framework develops the overall framework in managing global supply chains and developing strategies. Supply Chain Management in Emerging Economies: Challenges and Opportunities describes the challenges and opportunities in supply chain management of emerging economies ' the infrastructure constraints, the logistics inefficiencies, and limitations in service operations; and discusses how to create opportunities in such adverse conditions. Building Supply Chain Excellence: Innovations and Success Cases is devoted to a number of industrial cases that showcase innovative approaches to gain excellence, and share insights and lessons from such experiences.

Author Biography

Chung-Yee Lee is the former Editor of IIE's Scheduling Logistics and has taught the U. of Florida and Texas A&M prior to his appointment as Head of the IE and EM department at Hong Kong University of Science and Technology. Hau Lee previously served as Editor-in-Chief of Management Science. Hau Lee is considered as one of the pre-eminent research scholars in Supply Chain Management.

Table of Contents

Preface	p. xiii
Global Supply Chain: General Strategies and Framework
On the Globalization of Operations and Supply Chain Strategies: A Conceptual Framework and Its Application	p. 3
Introduction	p. 3
The Driving Forces of the Globalization Process	p. 5
Global Market Forces	p. 7
Technological Forces	p. 11
Global Cost Forces	p. 15
Political and Macroeconomical Forces	p. 20
Applying the Framework: The Acrilan Case	p. 24
Summary	p. 34
References	p. 36
Globalization and Emerging Markets: The Challenge of Continuous Global Network Optimization	p. 37
The Optimization Paradox	p. 38
Why Are Companies Falling Behind in Optimizing Their Global Networks?	p. 41
Profiting from Continuous Network Optimization	p. 46
Conclusion	p. 64
Defining Complexity Masters	p. 64
Shanghai or Charlotte? The Decision to Outsource to China and Other Low Cost Countries	p. 67
Introduction	p. 67
The Four Companies	p. 68
A Framework for the Decision Process	p. 71
Corporate Strategy Review	p. 73
Operations Strategy Review	p. 78
Total Landed Cost	p. 83
Risk	p. 85
Domestic Sourcing	p. 88
Summary and Conclusions	p. 89
References	p. 92
Life-Saving Supply Chains: Challenges and the Path Forward	p. 93
Introduction	p. 93
The Scope, Importance and Challenge of Humanitarian Logistics	p. 95
The Humanitarian Sector Ecosystem	p. 96
The Path Forward	p. 102
Conclusion: Learning as the Basis for Strategic Contribution	p. 108
Appendix: Resources and Direction for the Academic Community	p. 108
References	p. 110
Dual Sourcing Strategies: Operational Hedging and Outsourcing to Reducing Risk in Low-Cost Countries	p. 113
Introduction	p. 113
Company Background	p. 114
Miniature Car Market	p. 117
Die-Cast Manufacturing	p. 120
Outsourcing Strategy - Vendor Operations Asia	p. 123
Production Options	p. 125
Lessons from Mattel	p. 130
Supply Chain Management in Emerging Economies: Challenges and Opportunities
Managing Supply Chain Operations in India: Pitfalls and Opportunities	p. 137
Introduction	p. 137
India: Source and Market	p. 138
Supply Chain Management in India	p. 142
Concluding Remarks	p. 151
Acknowledgements	p. 153
References	p. 154
Integrated Fulfillment in Today's China	p. 155
WTO Entry: Integrated Fulfillment	p. 156
Side Bar	p. 156
Recommendations for Foreign Companies	p. 166
China's Logistics Rules Obscure the Way Forward	p. 172
Proceed with Caution, but Do Proceed	p. 174
References	p. 175
Logistics Management in China: Challenges, Opportunities and Strategies	p. 177
Preface	p. 177
Overview of Logistics Market in China	p. 179
Obstacles and Challenges	p. 183
Opportunities and Tactics	p. 191
Conclusions	p. 197
References	p. 199
Connectivity at Inter-modal Hub Cities: The Case of Hong Kong	p. 201
Introduction	p. 201
Logistics Development in PRD	p. 203
Challenges on Connectivity and New Operating Models	p. 206
Managing Freight Flow at Relay Centers	p. 213
Looking Ahead	p. 220
Acknowledgement	p. 220
References	p. 221
Service Parts Management in China	p. 223
Introduction	p. 223
Why Worry About Service Parts?	p. 224
What Makes the Service Parts Business Different?	p. 225
Service Parts in Emerging Markets	p. 228
Why Emerging Markets Are Less Willing to Pay a Premium for Genuine OEM Parts	p. 229
Why Foreign OEMs Have a Hard Time Competing on Price	p. 231
Logistics Problems Add to the Challenge	p. 232
The Profit Challenge	p. 234
Improving the Business	p. 234
Getting Your Service Parts Supply Chain into Fighting Trim	p. 239
DHL in China: The Role of Logistics Governance	p. 241
Introduction	p. 241
What is Logistics Governance?	p. 244
Why Logistics Governance Matters	p. 244
DHL in China	p. 246
National Logistics Governance	p. 248
Economic Zones	p. 252
Pan Pearl River Delta Economic Zone	p. 253
Logistics Parks	p. 255
Bonded Facilities	p. 255
Zone-Port Interaction Area (Free Port)	p. 256
The Issue of Licenses	p. 257
Conclusions	p. 259
References	p. 262
Building Supply Chain Excellence: Innovations and Success Cases
Supply Chain Reengineering in Agri-Business: A Case Study of ITC's e-Choupal	p. 265
Introduction	p. 266
Procurement Efficiency in the Soy-Supply Chain	p. 273
Variety-based Strategies in the Wheat Supply Chain	p. 285
Re-engineered Supply Chains for Commodity Services: The Story of Coffee	p. 291
Summary and Conclusion	p. 302
References	p. 307
Esquel Group: Going Beyond the Traditional Approach in the Apparel Industry	p. 309
Introduction	p. 310
Esquel Group - Company Background	p. 312
Strive for Quality and the Transition to Vertical Integration	p. 314
Value Proposition to Customers	p. 325
Internal Operations Management	p. 327
E-Culture	p. 332
Corporate Social Responsibility	p. 337
Taking Care of Employees	p. 339
Future Perspective	p. 340
References	p. 343
End-To-End Transformation in the CEMEX Supply Chain	p. 345
Introduction	p. 345
The Cement Supply Chain	p. 347
CEMEX's Corporate History	p. 349
The Roots of Culture and Technology Innovation at CEMEX	p. 350
The CEMEX Supply Chain in Mexico	p. 352
End-To-End Supply Chain Transformation	p. 354
Supply Chain Integration with Information Technology	p. 357
Results and Lessons from Transformation	p. 364
The IDS Story: Reinventing Distribution Through Value-Chain Logistics	p. 367
The Li & Fung Story of Export Trading	p. 368
The Emergence of IDS Group in Asian Import Distribution	p. 369
The Challenge of Traditional Distribution	p. 370
The IDS Approach - Value-Chain Logistics	p. 373
IDS - A Regional Powerhouse	p. 375
Business Transformation - Change Management and a New Culture	p. 379
Three- Year Strategic Plan	p. 381
IDS - New Business Model	p. 384
The Future - Poised for Growth	p. 386
The Journey Continues	p. 389
Building a Sustainable Supply Chain: Starbucks' Coffee and Farm Equity Program	p. 391
Sustainable Supply Chain	p. 392
The Starbucks Corporation	p. 392
The Specialty Coffee Industry and the Starbucks Coffee Supply Chain	p. 394
C.A.F.E. Practices	p. 396
Success Story of a Coffee Farmer - Investment Payoff for CAFE Standards	p. 399
Benefits to Starbucks	p. 400
Corporate Social Responsibility	p. 402
C.A.F.E. Practices Implementation	p. 403
Concluding Remarks	p. 404
Building a Distribution System in Eastern Europe: Organic Growth in the Czech Republic	p. 407
Introduction	p. 407
Early Company History	p. 408
Papirius' Strategy	p. 411
Superstores Expand Globally	p. 417
A Lurking Threat	p. 420
Update and Learnings	p. 421
A Path to Low Cost Manufacturing for Integrated Global Supply Chain Solutions	p. 427
Background	p. 427
Why Manufacture Electronics in China?	p. 428
Cost Advantage	p. 429
You Can't Afford Not To Be in China	p. 430
Challenges	p. 431
Solectron China Experience	p. 432
Proximity to Local Supply Chain	p. 433
Government Support and Cooperation	p. 434
Six Sigma Lean Manufacturing	p. 435
Solectron Has Advantages in Logistics in China	p. 436
Design for China Supply Chain	p. 438
Conclusion	p. 438
Transforming an Indian Manufacturing Company: The Rane Brake Linings Case	p. 441
Trade Liberalization and its Impact in India	p. 441
What Does It Take To Be a Global Supplier?	p. 442
RBL Before the Transformation	p. 443
New Goals	p. 444
History	p. 445
The Japanese Professors at RBL	p. 446
Executing TQM at RBL	p. 447
Materials Management at RBL	p. 448
Customer and Supplier Coordination to Improve Product Specification and Performance	p. 449
How Has RBL Evolved as a Result of Its Deming Journey?	p. 450
Discussion	p. 451
Conclusions	p. 454
References	p. 455
Index	p. 457
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