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Supply Chain Management For Dummies

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  • Edition: 2nd
  • Format: Paperback
  • Copyright: 2020-12-15
  • Publisher: For Dummies

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Supplemental Materials

What is included with this book?


Increase your knowledge of supply chain management and leverage it properly for your business


If you own or make decisions for a business, you need to master the critical concept of supply chain management. Supply Chain Management For Dummies, 2nd Edition guides you to an understanding of what a supply chain is and how to leverage this system effectively across your business, no matter its size or industry.

The book helps you learn about the areas of business that make up a supply chain, from procurement to operations to distribution. And it explains the importance of supporting functions like sales, information technology, and human resources. You’ll be prepared to align the parts of this system to meet the needs of customers, suppliers, and shareholders. By viewing the company as a supply chain, you’ll be able to make decisions based on how they will affect every part of the chain.

To help you fully understand supply chains, the author focuses on the Supply Chain Operations Reference (SCOR) model. This approach allows all types of professionals to handle their work demands.   

•          Use metrics to improve processes

•          Evaluate business risks through analytics

•          Choose the right software and automation processes

•          Plan for your supply chain management certification and continuing education

A single business decision in one department can have unplanned effects in one or more areas, such as purchasing or operations. Supply Chain Management For Dummies helps you grasp the connections between business lines for wiser decision making and planning.

Author Biography

Daniel Stanton is known as "Mr. Supply Chain." His books are used by students and professionals around the world, and his courses on LinkedIn Learning have been viewed more than 1 million times. He holds numerous industry certifications, including Certified Supply Chain Professional (CSCP) and SCPro.

Table of Contents

Introduction 1

About This Book 1

Foolish Assumptions 1

Icons Used in This Book 2

Where to Go from Here 2

Part 1: Getting Started with Supply Chain Management 5

Chapter 1: The Growing Demand for Supply Chain Management 7

Defining Supply Chain Management 7

Exploring Complex Business Challenges 9

Operating Under Supply Chain Management Principles 11

Customer focus 12

Systems thinking 12

Bimodal innovation 12

Collaboration 13

Flexibility 13

Technology 14

Global perspective 14

Risk management 14

Visibility 15

Value creation 15

Introducing Five Supply Chain Tasks 15

Implementing the New Supply Chain Agenda 16

Placing the right people in the right jobs 17

Putting the right technology in place 17

Focusing on internal collaboration 17

Directing external collaboration 18

Applying project management 18

Chapter 2: Understanding Supply Chains from Different Perspectives 19

Managing Supply Chain Flows 19

Synchronizing Supply Chain Functions 20

Purchasing 21

Logistics 22

Operations 23

Connecting Supply Chain Communities 23

Designing Supply Chain Systems 26

Measuring Supply Chain Processes 29

Chapter 3: Digging into Your Supply Chain 31

Prioritizing Supply Chain Goals 31

Step 1: Understand what customers value 31

Step 2: Recognize your competitors 33

Step 3: Understand your products or services 33

Looking at Cost Drivers 35

Procurement costs 35

Transportation costs 36

Inventory costs 36

Quality costs 36

Dealing with Trade-Offs 37

Sales versus operations 37

Customer versus supplier 40

Engineering versus procurement 40

Inventory versus customer service 41

Inventory versus downtime 43

Procurement versus logistics 44

Chapter 4: Optimizing Your Supply Chain 47

Designing Your Network 47

Improving and Innovating Processes 49

Lean 49

Six Sigma 51

Theory of Constraints 53

Structuring Supply Chain Projects 55

Managing cross-functional project teams 55

Creating cross-functional project plans 56

Creating a RACI matrix 59

Designing project scorecards 60

Using the DIRECT model 61

Part 2: Managing Supply Chain Processes 65

Chapter 5: Connecting Supply Chain Processes 67

Introducing the SCOR Model 68

Establishing Process Metrics 72

Building the Right Supply Chain 73

Chapter 6: Planning the Supply Chain 75

Balancing Supply and Demand 76

Aligning Resources with Requirements 77

Analyzing Your Customers 79

Planning Your Products 80

Planning Your Production Systems 81

Planning Your Delivery Systems 82

Planning for Returns 83

Chapter 7: Sourcing, Purchasing, and Procurement 85

Understanding Strategic Sourcing 86

Segmenting Your Supply Chain 86

Managing Life Cycle Costs 88

Minimizing input costs 89

Sourcing your inputs 90

Forecasting your demand 92

Insourcing, outsourcing, and offshoring 92

Managing Supplier Relationships 93

Managing Procurement Processes 95

Establishing Supply Contracts 95

Selecting contract terms 96

Selecting payment terms 97

Mitigating Supplier Risks 99

Dealing with risks 100

Deciding which risks to manage 100

Implementing supplier development 103

Increasing supplier diversity 103

Establishing Purchasing Ethics 104

Sustainable Sourcing 105

Chapter 8: Making Your Products or Services 107

Planning and Scheduling Production 108

Planning production 108

Considering capacity 112

Identifying Manufacturing Process Types 114

Operating a discrete manufacturing process 115

Operating a continuous manufacturing process 117

Choosing Your Production Environment 117

Make-to-stock 118

Make-to-order 119

Engineer-to-order 121

Implementing Quality Control and Quality Assurance 121

Considering the risks of poor quality 121

Controlling quality and variability 122

Reducing Manufacturing Waste 124

Chapter 9: Delivering Your Products or Services 127

Understanding Modes of Transportation 128

Pipeline 129

Cargo ship 129

Rail 129

Truck 131

Parcel 133

Air 133

Selecting Modes of Transportation 134

Managing Warehousing and Inventory 136

Receiving 138

Put-away 138

Inventory counts 138

Picking 139

Packing 139

Shipping 140

Yard management 141

Over, short, and damaged 141

Establishing Inventory Ordering Policies 142

Selecting Material Handling Equipment 143

Managing and Filling Orders 145

Maintaining Visibility of Shipments 147

Leveraging Third-Party Logistics 148

Optimizing Freight Audit and Payment 149

Chapter 10: Managing Product Returns and Reverse Supply Chains 151

Growing Revenue with Easy Returns 151

Processing Returns of New or Excess Products 153

Minor wear and tear 154

Damage or tampering 154

Substitution 154

Processing Returns of Used or Defective Products 155

Managing Closed-Loop Supply Chains 155

Handling Unauthorized Returns and Fraudulent Products 156

Managing Trade-Ins 157

Chapter 11: Enabling Your Supply Chain 159

Managing Your Business Rules 159

Managing Supply Chain Performance 160

Setting performance goals 161

Align your metrics with your customers 161

Share your metrics with your suppliers 162

Managing Your Assets 162

Labeling Your Products 164

Preventing Tampering 166

Addressing Supply Chain Security Issues 166

Ensuring physical security 166

Dealing with counterfeiting 167

Tackling regulatory compliance 168

Addressing unique product requirements 168

Protecting supply chain information 170

Leveraging Information Technology 170

Leveraging Human Resources 171

Mastering Project Management 174

Part 3: Using Technology to Manage Supply Chains 177

Chapter 12: Managing Supply Chain Software 179

Understanding How Processes Evolve 180

Using Transportation Management Systems 182

Using Electronic Load Boards 184

Using Warehouse Management and Execution Systems 185

Using Demand Planning Systems 187

Using Material Requirements Planning Systems 188

Using Manufacturing Execution Systems 190

Using Distribution Requirements Planning Systems 191

Using Labor Management Systems 192

Using Customer Relationship Management Systems 193

Using Supplier Relationship Management Systems 194

Using Enterprise Resources Planning Systems 195

Using Supply Chain Modeling Software 196

Using Business Intelligence Software 198

Leveraging Software Analysts 199

Anticipating the Future of Supply Chain Software 201

Chapter 13: Integrating Advanced Manufacturing into Your Supply Chain 203

Avoiding Obsolescence 204

Preparing for Industry 4.0 205

Capitalizing on Advanced Manufacturing 206

Automated manufacturing 206

Computer-aided design 207

3D printing 207

Automated Mobile Robots 210

Unmanned and Autonomous Vehicles 212

Chapter 14: Managing Digital Supply Chains 215

Digitalizing Products and Services 216

Integrating Planning, Execution, and Visibility 217

Creating Customer Centricity 218

Sharing with Blockchains 219

Harnessing the Internet of Things, Big Data, and the Cloud 220

Connecting with Social Media 222

Employing Artificial Intelligence 222

Preparing for Quantum Computers 223

Retooling for Omnichannel 223

Part 4: Driving Value with Supply Chain Management 225

Chapter 15: Transforming Your Supply Chain 227

Improving Transparency and Visibility 227

Deploying Demand Shaping 228

Performing Postponement 229

Renewing Regional Sourcing 230

Reducing Stock-Keeping Units 231

Optimizing Inventory 232

Incorporating Vendor-Managed Inventory 234

Adjusting Payment Terms 235

Using Supply Chain Finance 236

Controlling the Bullwhip Effect 237

Sharing information with your partners 238

Reducing and aligning lot sizes 238

Managing promotions 238

Starting with Small Improvements 239

Creating Sandboxes 240

Investing in Innovation 241

Chapter 16: Adopting Supply Chain Metrics 243

Understanding Metrics 243

Identifying Performance Attributes 245

Understanding SCOR Metrics 246

Reliability 246

Responsiveness 247

Agility 247

Cost 248

Asset management efficiency 248

Optimizing Operational Metrics 249

Supplier metrics 249

Procure to pay metrics 249

Customer service metrics 249

Capacity, throughput, and yield metrics 250

Formalizing Financial Metrics 251

Accounts payable metrics 251

Total spend metrics 252

Savings metrics 252

Perfecting People Metrics 253

Engagement metrics 253

Productivity and efficiency metrics 253

Turnover metrics 254

Safety metrics 254

Solidifying Sustainability Metrics 255

Consumption metrics 255

Waste metrics 256

Chapter 17: Managing Supply Chain Risks 259

Challenging Assumptions about the Future 259

Building Supply Chain Resilience 261

Identifying Risks 262

Classifying Risks 264

Scoring Risks 265

Managing Risks 267

Accepting the risk 267

Transferring the risk 268

Avoiding the risk 268

Mitigating the risk 268

Handling a Crisis 269

Chapter 18: Building Supply Chain Analytics 271

The Rise of Big Data, Sensors, and the Internet of Things 272

Outline of an Analytics Plan 273

Define your theory of the problem or opportunity 273

Acquire relevant data 274

Clean, structure, and filter the data 275

Query the data and test your theory 275

Look for correlations and patterns 276

Correlation, Causation, and Interpolation 276

Modeling, Simulation, and Optimization 280

Simulation 280

Optimization 281

Scenario Planning 281

Scorecards, Dashboards, and Control Towers 283

Part 5: Building Your Supply Chain Management Career 287

Chapter 19: Selecting a Supply Chain Career 289

Doing Your Homework 289

Examining Supply Chain Career Categories 290

Associates 293

Technicians 295

Planners and analysts 297

Engineers 298

Supervisors 299

Managers 300

Sales representatives 302

Information technology managers 303

Project managers 304

Executives 304

Journalists 305

Educators 305

Humanitarian supply chain professionals 306

Chapter 20: Pursuing Supply Chain Education 307

Earning Certificates and Certifications 307

APICS certifications from the Association for Supply Chain Management 308

Council of Supply Chain Management Professionals 311

Institute for Supply Management 312

The International Society of Logistics (SOLE) 314

Project Management Institute 314

The Futurist Institute 315

International certifications 316

Earning Degrees and Diplomas 317

Undergraduate degrees 317

Graduate degrees 318

Exploring Online Education Options 318

Traditional online programs 319

MITx MicroMasters in Supply Chain Management 319

Arizona State University Online MS-SCM 319

Coursera 320

LinkedIn Learning 320

YouTube 320

Playing Supply Chain Games 321

The Beer Game 321

The Fresh Connection 322

Rise of Industry 322

Following Supply Chain Media 323

Part 6: The Part of Tens 325

Chapter 21: Ten Questions to Ask about Your Supply Chain 327

Who Are Your Key Customers? 327

What Do Your Key Customers Value? 328

How Could Your Supply Chain Create More Value? 328

How Do You Define Supply Chain Management? 329

What Information Do You Share with Suppliers? 329

How Do You Compare with Competitors? 330

What Changes Could Increase Revenue? 331

What Changes Could Lower Costs? 331

What Affects Your Supply Chain Now? 332

What Will Affect Your Supply Chain in the Future? 333

Index 335

Supplemental Materials

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

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