Supply Chain Networks and Business Process Orientation: Advanced Strategies and Best Practices

by McCormack; Kevin P.

• ISBN13: 9781574443271
• ISBN10: 1574443275
• eBook ISBN(s): 9781040179826
• Edition: 1st
• Format: Hardcover
• Copyright: 2002-11-25
• Publisher: CRC Press
• More Book Details

Summary

The Internet has provided the catalyst for building networks of companies that interoperate to increase customer value and competitive advantage. The horizontal integration of supply chains both internally and externally is critical and the result of applying the concepts of Business Process Organization across a network of companies. Supply Chain Networks and Business Process Orientation: Advanced Strategies and Best Practices demonstrates how companies can build successful supply chain networks. Prescriptive benchmarking models illustrate proven strategies, tactics, and methods for achieving a superior level of supply chain performance. Case studies put the models and best practices into a clear business context.

Table of Contents

Introduction	1	(8)
Summary	5	(2)
References	7	(2)
Business Process Orientation --- From Vertical Integration to Networked Communities	9	(22)
An Overview of the BPO Concept	10	(2)
Functional Orientation: How Did We Get Here?	12	(1)
Process and Value Creation	13	(3)
Business Process Orientation in the 1990s --- Technology Enablement	16	(3)
Business Process Orientation in the 1990s --- Organizational Design	19	(2)
BPO: From Concept to Measurement	21	(2)
The Impacts of BPO	23	(3)
Business Process Orientation and the Networked Corporation	26	(2)
Summary	28	(1)
References	29	(2)
BPO and the Supply Chain Performance	31	(14)
Supply Chain Management and BPO	31	(3)
Data Collection	34	(1)
Finding the Relationships	35	(5)
Relating BPO to Supply Chain Performance	40	(2)
Summary	42	(3)
BPO and Supply Chain Management Maturity	45	(24)
Process Maturity and SCM	45	(11)
Process Maturity Concepts and Foundations	45	(3)
Assessing Supply Chain Network Maturity using BPO	48	(2)
SCM Maturity Levels	50	(2)
BPO Components in the SCM Maturity Model	52	(4)
Using the SCM Maturity Model	56	(8)
Case 1: Ad Hoc --- ``Shore Up the Chassis Before You Race the Car''	57	(2)
Basic Process Documentation	59	(1)
Basic SCM Best Practices	59	(1)
Basic SCM	60	(1)
Basic Process Jobs	60	(1)
Basic SCM Measures	60	(1)
Basic Operations Strategy	60	(1)
Conclusion	61	(1)
Case 2: Defined --- ``Expand the Chassis and Turbocharge the Engine with Advanced Measurements''	61	(1)
Basic Process Structure	61	(1)
Basic Operation Strategy	62	(1)
Balance is a Problem	62	(1)
Case 3: Integrated --- ``Patch a Few Holes in the Chassis and Push to the Next Level''	63	(1)
Basic SCM Jobs	64	(1)
Basic SCM Measures	64	(1)
Advanced Process Structure	64	(1)
SCM Maturity and Business Performance	64	(2)
Conclusion and the Extended Supply Chain --- The Next Frontier	66	(1)
References	67	(2)
The Extended Supply Chain and the Internet --- The Bridge to a Supply Chain Network	69	(18)
Introduction	69	(1)
Background	70	(2)
Scope and Organization of Our Study	72	(1)
Defining the Concepts and Measures	73	(4)
Internet Technology Usage	73	(1)
Integrating Practices	73	(1)
Measures	74	(3)
Data Gathering and Results	77	(4)
Sample	77	(1)
Analysis of Data	77	(4)
Results and Findings	81	(2)
Conclusions and Implications	83	(1)
References	84	(3)
Interactions and Relationships in the Networked Economy	87	(16)
Introduction	87	(1)
Interaction Costs --- Unbundling the Corporation	88	(3)
More Than Just Communication	91	(3)
Information Exchange and Network Alignment	94	(2)
Building Stronger Network Bonds --- The Ties that Bind	96	(3)
Trust	96	(1)
Commitment	97	(1)
Cooperation	98	(1)
Dependence	98	(1)
Summary	99	(2)
References	101	(2)
Unbundling the Corporation: A Blueprint for Supply Chain Networks	103	(28)
Understanding Supply Chain Networks	103	(11)
Identifying the Main Thread and Business Strategy Alignment	104	(3)
Classifying the Supply Chain Players	107	(2)
Tracing the Flows through the Network --- Physical, Information, and Cash	109	(3)
Network Dynamics --- Static, Switched, and Chaotic	112	(2)
Building BPO within a Supply Chain Network	114	(3)
The APICS SCM Principles and BPO	115	(2)
Integrating BPO with Network Design	117	(5)
Build a Competitive Infrastructure	117	(2)
Leverage Worldwide Logistics	119	(3)
Integrating BPO with Network Operations	122	(5)
Synchronize Supply with Demand	122	(3)
Measure Performance Globally	125	(2)
Driving Value through High BPO Maturity	127	(1)
Summary	128	(1)
References	129	(2)
The Challenges of Building a Networked Supply Chain	131	(16)
Introduction	132	(1)
The SC Network Model	132	(2)
Building the Model	134	(7)
Concepts and Components	134	(1)
Measuring SC Network Performance	135	(2)
Situational Factors	137	(1)
SC Network Situational Factors --- Internal	137	(3)
SC Network Situational Factors --- External (Environmental)	140	(1)
Applying the Model to an SC Network	141	(3)
The Focus of the Model	141	(1)
Using the Model to Create Alignment within the SC Network	142	(2)
Conclusions	144	(1)
References	145	(2)
Case 1: Herding Cats across the Supply Chain	147	(10)
Ram Reddy
William C. Johnson
Background	147	(1)
Defining the Problem	148	(1)
Proposed Solution	149	(1)
The 800-pound Gorilla Approach --- Role of the Channel Master	150	(1)
Collaborative Team Approach --- A Win--Win Focus	151	(1)
What Happened?	152	(1)
The Lessons Learned	152	(2)
Case Questions	154	(1)
References	155	(2)
Case 2: Envera™ --- Creating Value through Supply Chain Optimization in the Chemical Industry	157	(12)
Richard Chvala
William C. Johnson
History	157	(1)
Envera's Value Development and Deployment	158	(1)
Explanation of Value Chain Economics	158	(1)
Origin of the Envera™ --- Business-to-Business (B2B) Exchange	159	(3)
Developing and Launching Envera --- First Steps	162	(1)
Transforming Chemical Industry Supply Chains	163	(1)
Forces of Change	164	(2)
Benefits of Supply Chain Etransformation	166	(1)
The Challenges and Competitive Responses	167	(1)
Case Study Questions	168	(1)
Appendix A: Final Survey Questions	169	(16)
Exhibit A.1 BPO Survey Questionnaire	169	(6)
Process View (PV)	170	(1)
Process Jobs (PJ)	170	(1)
Process Management and Measurement Systems (PM)	170	(1)
Interdepartmental Dynamics (ID)	171	(1)
Interdepartmental Conflict	171	(1)
Interdepartmental Connectedness	171	(1)
Organizational Performance (OP)	172	(1)
Measures of Esprit de Corps	172	(1)
Overall Performance (5 = excellent, 1 = poor)	173	(1)
General Questions Needed for Analysis and Reporting of Results	173	(2)
Exhibit A.2 Supply Chain Assessment Survey	175	(10)
Supply Chain Management	175	(1)
Decision Process Area: Plan (Includes P1: Plan Supply Chain, and P0: Plan Infrastructure)	175	(2)
Decision Process Area: Source (Includes P2: Plan Source)	177	(1)
Decision Process Area: Make (Includes P3: Plan Make)	178	(1)
Decision Process Area: Deliver (Includes P4: Plan Deliver)	179	(2)
Common Themes Within Each Supply Chain Decision Process Area: Strategies, Tactics and Philosophy Components that are Common Across the Supply Chain	181	(1)
Relative Performance	182	(1)
General Questions Needed for Analysis and Reporting of Results	183	(2)
Appendix B: Regression and Coefficient Alpha Analysis Results	185	(4)
Appendix C: Extended Supply Chain vs. Internet Usage Correlation Results	189	(2)
Appendix D: SC Network Model and Situational Factors --- Detailed Survey Questions	191	(10)
Exhibit D.1: SC Network Model Components and Outcomes --- Detailed Survey Questions	191	(1)
Detailed Survey Questions	191	(1)
Process View (PV)	192	(1)
Process Jobs (PJ)	193	(1)
Process Management and Measurement Systems (PM)	193	(1)
Process Structures (PS)	193	(1)
Process Values and Beliefs (PVB)	194	(1)
Technology Support (TS)	194	(1)
Overall Performance (5 = Excellent, 1 = Poor)	195	(1)
Measures of Supply Chain Network Esprit de Corps	195	(1)
Internal Situational Factors --- Supply Chain Network Power Measures	195	(3)
Expert Power	195	(1)
Referent Power	196	(1)
Legitimate Power	196	(1)
Legal Legitimate Power	196	(1)
Reward Power	196	(1)
Coercive Power	196	(1)
Other Measures	197	(1)
Commitment	197	(1)
Conflict	197	(1)
Conflict Resolution	197	(1)
Cooperation	197	(1)
Trust	198	(1)
Performance	198	(1)
Competitive Edges Survey Instrument	198	(3)
External Situational Factors --- (Environmental Factors)	199	(1)
Market Turbulence	199	(1)
Competitive Intensity	200	(1)
Technological Turbulence	200	(1)
Glossary	201	(12)
Index	213