Supply Chain Redesign : Transforming Supply Chains into Integrated Value Systems

by Handfield, Robert B.; Nichols Jr., Ernest L.

• ISBN13: 9780130603128
• ISBN10: 0130603120
• Edition: 1st
• Format: Hardcover
• Copyright: 2002-01-01
• Publisher: FT Press

Summary

Today's most competitive companies are going beyond "first-generation" supply chain management, to integrate processes, information flows, and material flows more thoroughly than ever before. Supply Chain Redesign brings together the field's latest advances, giving business professionals a complete framework for driving out costs, improving efficiency, and optimizing the business value of any supply chain. Robert Handfield and Ernest Nichols offer practical insight and detailed guidance into every aspect of supply chain redesign-mapping existing supply chains, identifying changes that promise the best and fastest ROI, intelligently leveraging new technologies, strengthening relationships with key partners, and much more. From the world's most significant case studies to the latest emerging trends, this book is an unparalleled resource for supply chain success. * Powerful new approaches to strategic cost management Today's most systematic and most effective approaches to managing cost * Building and strengthening key supplier relationships Deepening the collaborative, trust-based supplier relationships that are critical to success * New technologies, emerging standards Leveraging the advantages of Web-based technologies-and minimizing the risks * Deploying your strategy: the central role of leadership What senior management must do to support your supply chain initiative * "Supply chain friendly" product design Designing products that support lean supply chains * GM and Nortel: Making global supply chain redesign work Comprehensive case studies from two of the world's largest supply chain initiatives The complete, hands-on guide to optimizing any supply chain. Emerging trends and key success factors Enhancing collaboration and trust throughout your redesigned supply chain Designing products that support efficient supply chains Supply chain "sweet spots"-identifying changes with the greatest payoff Effective B2B e-commerce and Web-based strategies Nortel and GM: case studies in successful supply chain redesign Supply chains exist for one reason: to create customer value. Radical changes in every aspect of business and technology have fostered the emergence of integrated "value chains" that maximize customer value by maximizing efficiency and inte-gration. In this book, leading supply chain experts Robert Handfield and Ernest Nichols review the state-of-the-art in supply chain management, identify emerging trends that will lead to even greater change, and present powerful new strate-gies for redesigning any supply chain. Handfield and Nichols show how to map existing supply chain networks, identifying and integrating information flows throughout an organization. Using real-world examples, they demonstrate how to enhance collaboration and trust throughout the supply chain; integrate customers and suppliers to design products that support efficient supply chains; and make the most of strategic cost management techniques. The book includes detailed chapters on B2B e-commerce, on creating information visibility on the Web, and on the key factors that lead to success in actual deployments.

Table of Contents

Preface.
1. Supply Chain Management: Transforming Supply Chains into Integrated “Value Systems” .

Defining Supply Chains. Increasing Customer Demands for Value Across the Supply Chain. Supply Chain Relationships. Information Systems and Supply Chain Management. A Process Model: SCM for Value System Creation. Change Management: The Challenge Facing Supply Chain Managers. Endnotes.

2. Understanding and Improving Supply Chains and Key Supply Chain Processes.

Introduction. Understanding Supply Chains through Process Mapping. Process Flow Charts. Internal Supply Chains. External Supply Chains. Benefits of Interorganizational Supply Chain Collaboration. The Importance of Time in Creating High-Performance Supply Chains. Opportunities for Cycle Time Reduction across the Supply Chain. Re-Engineering Supply Chain Logistics. Supply Chain Performance Measurement. Summing It Up: The Perfect Order Versus Total Cost. Summary. Endnotes.

3. Internal Integration—Managing Information Flows within the Organization.

A Historical Perspective. Drivers of Supply Chain Systems and Applications. Internal and External Strategic Integration. Globalization of Markets. Availability of Powerful Information Systems and Technology. Enable New Business Processes. Replace Obsolete Systems. Strategic Cost Management. Enterprise Resource Planning (ERP). Implementing ERP Systems. ERP “Meltdowns” . Supply Chain ERP Modules. ERP and Data Warehouses. When Your Web Site is Not Aligned With Your Business Strategies. Decision Support Systems. Summary. Endnotes.

4. The Financial Impacts of SCM—Finding the “Sweet Spot” .

Insourcing/Outsourcing: A Controversial Issue. Initiating the Insourcing/Outsourcing Decision. Understanding Your Core Competence. Technological Maturity. Understanding the Market. Insourcing Versus Outsourcing—Advantages/Disadvantages. Summary. Endnotes.

5. Creating Collaboration and Trust in the Supply Chain.

Roots of Supply Chain Relationship Management. A Conceptual Model of Alliance Development. Developing a Trusting Relationship with Supply Chain Partners. Challenges to Managing Supply Chain Relationships. Summary. Endnotes.

6. Customer/Supplier Integration into New Product Development.

Changes to the New Product Development Process. Supplier Integration Into New Product Development. Supplier Integration Approaches. Supplier Integration Into New Product Development Process Model. Assessing the Supplier's Technology Roadmap. Developing Suppliers Capabilities. Summary. Endnotes.

7. Strategic Cost Management in a Global Supply Chain.

The Financial Impacts of Supply Chain Management: Rolling Up the Numbers. Strategic Cost Management Initiatives Across the Supply Chain. Volume Leveraging and Cross Docking: Harvesting the Low-Hanging Fruit. Global Logistics and Material Positioning. Global Supplier Development. Target Pricing. The “Greening” of the Supply Chain: Life Cycle Costing, Re-Manufacturing, and Recycling. Cost Management Enablers. Endnotes.

8. Navigating the Business to Business (B2B) E-Commerce Landscape.

The Evolution of the Internet. Attributes of the Internet. The B2B Technology Landscape. Standards: The Basis for B2B Integration. The “Emerging” Standards. Which Standard Should Be Adopted? Looking Forward: Emerging Technologies. Problems With Implementing Standards. Endnotes.

9. Creating Information Visibility.

The Importance of Information in Supply Chains: Avoiding the Sting of the “Bullwhip” . Creating Information Visibility in Supply Chains. Information Visibility System Best Practices. Collaborative Planning, Forecasting, and Replenishment (CPFR). Collaborative Contract Management Visibility Systems. Deploying Information Visibility Systems: A Case Example. Conclusion. Endnotes.

10. Managing Change in the Supply Chain: Lessons from General Motors.

Managing Change in the Supply Chain. Radical Change Management: The Lopez Era. Changing the Purchasing Culture. Internal Integration of Supply Chain Functions. The New Era of Order to Delivery: Drivers for Change. Changing the Culture for Supply Chain Redesign. Future Challenges. Endnotes.

Index.

Excerpts

Preface Integrated supply chain management is now recognized as a core competitive strategy. As organizations continuously seek to provide their products and services to customers faster, cheaper, and better than the competition, managers have come to realize that they cannot do it alone; rather, they must work on a cooperative basis with the best organizations in their supply chains in order to succeed. When pressed to identify how to achieve this strategy, however, the path forward for managers is not clear. Numerous "solution providers" offer the "magic bullets" to supply chain integration; yet the results are never guaranteed. In this book, we focus on the concept of the value system. We propose that by integrating the flows of information, materials, technology, and resources in a supply chain, a true system of creating value for the end customer can be created. This book shares insights gained from our research, which has brought us in contact with managers in engineering, purchasing, operations, logistics, information systems, and sales functions across a range of industries. These experiences have been synthesized to create a managerial perspective of the core tasks and challenges required to transform supply chains into high-performing value systems. This text is unique in that it describes a phenomenon that has been rapidly evolving yet never fully deployed by any single organization. Although other books have dealt with the individual processes associated with developing new products, buying materials, transforming them, and shipping them to customers, we believe our treatment of the topic from an integrated managerial perspective is unique. Because supply chain management involves all functions within organizations, this book has been written for a general audience and provides insights into the conceptual foundations of supply chain management. It also presents a topical discussion of what a supply chain is, why it is important, and what types of challenges are implicit in managing supply chains. In sum, this book will enable readers to better understand... The contribution of supply chain management to creating value, in the form of increased profitability, technology leadership, and market share in the modern organization Requirements for analyzing and improving supply chain business processes The benefits of integrating major functional activities, including product design, purchasing, information systems, manufacturing planning and control, inventory management, human resource development, financial planning, forecasting, sales, quality management, distribution, transportation and other areas via internal information systems Understanding the "sweet spot", or area of greatest value to focus resources in organizational supply chains Strategies for creating collaboration and trust among supply chain participants The contribution of customers and suppliers to collaborative product/processs/service design Strategies for achieving significant shared cost reductions among supply chain partners Latest developments in B2B standards and applications that facilitate supply chain integration and creation of value systems Recent technologies that enable visibility of end customer requirements for multiple tiers of OEM's and suppliers in a supply chain A detailed case study of a major change management initiative at General Motors that illustrates the critical success factors required to create an integrated value system, as well as the challenges in deploying a value system initiative These points are illustrated through multiple examples from a variety of industries and settings, based on extensive research over many years. The concepts are presented in an easy to understand narrative that is intended for any reader interested in learning about supply chain management.