Guide to Supply Chain Management
Page 29
Dell 2, 42, 50, 57–8, 140, 149, 196
Delphi Automotive 60–1, 86
demand 30, 96, 113–14, 138, 154, 209
forecasting 20, 70
triggers 105–6, 105
demand management 34, 136–7, 156, 162
demand planning 32, 43, 156, 162, 170, 171, 174–5
demand-supply balancing 28–9, 31, 36
see also synchronisation
Deming cycle see PDCA
Deming, W. Edwards 4, 77
deregulation 7, 7, 48, 49
design for assembly 103
design for configurability 130, 144–5
design for manufacturability 67, 87
design for supply chain 150, 154, 206
DHL 235
differential pricing 113–14
differentiation 54, 54, 142–3, 144
direct to customer sales 42
direct-to-store see DC bypass
Dischinger, John 25
distribution 131, 156, 162, 183
distribution centre bypass see DC bypass
distribution resource planning see DRP
diversification 116, 122–3, 152
DMAIC cycle 78
document management customisation 144
Dreams 130–1, 143
Dresser Rand 205
DRP (distribution resource planning) 19, 170, 171, 179
drum-buffer-rope concept 34–5
DSTS 144
dual sourcing 16, 122
Duffy, Mike 82
Dunhill 131
E
e-commerce 43, 162, 171, 171, 172, 180, 227
e-procurement 43, 69, 69, 173–4, 193, 207
early supplier involvement 150, 152–3, 161, 206
economic growth 61–2, 61
economic order quantity see EOQ
economic value added see EVA
ECR (efficient consumer response) 14–15, 109–10
EDI (electronic data interchange) 10, 15, 67, 69, 87–9, 170, 181
EDLP (everyday low price) 58, 96, 110, 205
efficiency 34, 34–5, 35, 36, 60–1, 102, 138, 206
efficient consumer response see ECR Eggers, Christophe 88
electronic billing 69–70
electronic data interchange see EDI
electronic requests for quotation see eRFQ
Emirates SkyCargo 138
end-of-life items 24, 60, 66, 67
engineer to order see ETO
Englehard 107
Enron 23
enterprise resource planning see ERP
environmental concerns 24, 154, 203
EOQ (economic order quantity) algorithms 5, 6, 19, 227
equipment pooling 83, 85
eRFQ (electronic requests for quotation) 70, 170, 171
Ericsson 120, 201
ERP (enterprise resource planning) systems 26, 82, 144
IT systems 22, 124–5, 170, 171, 180, 182–3, 201, 206
ETO (engineer to order) 51, 52, 104, 139, 140
EU (European Union) 8, 23, 61–2, 118
EVA (economic value added) 33, 44–6, 45, 184–8, 186, 190, 201, 205
event management 90–1, 202–3
everyday low price see EDLP
exports, infrastructure and 47–9
extensible markup language see XML
external expenditure 68–71
F
Fair Isaac 134
fashion industry 102, 154, 234–5
fast-moving consumer goods see FMCG
Federated Department Stores 20
FedEx 71, 79, 90, 114, 167, 170
maintenance 76, 98, 103, 180
feedback from customers 143, 147, 150, 158–9, 160–1, 173
financial performance 44–6, 45, 92–4, 92, 93
financial processes 41
fishbone diagrams 79–80, 80, 95
fixed assets 92
fixed-price contracts 118, 121
fleet management 73, 177, 228
flexibility 34, 35, 36, 102, 128, 128, 130, 138
Honda 60, 61, 128
flexible manufacturing 11, 142
FMC Technologies 114
FMCG (fast-moving consumer goods) 14–15, 26
Ford Motor Company 68, 174
forecasting 30–1, 33, 43, 96, 109, 114–15, 152
cyclical trends 189–90, 190
demand forecasts 20, 109
Forrester, Jay 9, 209
forward branding 150, 153–4
France 47, 62
fuel costs 21
Fulham 107–8
functional organisation 155–6, 156
functional processes 37–41, 38–9
Futuris Automotive 104
G
Galeries Lafayette 92, 133
game theory 37, 112
Gantt charts 5
GE (General Electric) 79, 105, 150
General Mills 71
General Motors 87, 99, 141
Georgescu, Peter 126
Georgia Pacific 84–5, 105, 137, 182
Ghana Nuts 86
Gillette 81–2
GlaxoSmithKline 235
global competition 20–1, 21, 63
global positioning systems see GPS
global sourcing 155, 205, 233, 234
global supply chains 43, 102–3
globalisation 7–9, 8, 147, 200, 202
Goldratt, Eliyahu 34–5
Google 127, 153
Gotfredson, Mike 130
governments, agenda for 207–9
GPS (global positioning systems) 10, 103, 127
Graff, Jamison 137–8
Great Atlantic & Pacific Tea Company (A&P) 20
green issues 24, 154, 203
grocery industry 11, 14–15, 20
gross margin 128–9, 129, 185, 186
group purchasing 45, 71
H
Hail (Saudi Arabia) 196
Halliburton 167
Hammer, Michael 230
Handfield, Robert 231
Harley Davidson 141, 165
Hastings, David 183
Hayes, Robert 51–2, 51 Heinrich, Claus 43
Herman Miller 86–7
Hewlett-Packard (HP) 17, 107, 137, 154, 196, 202
history of supply chain thought 227–33
Honda 60–1, 68, 90, 126, 128, 153, 165
hotel rooms 30–1, 135
“house of quality” 131–3, 132
HP see Hewlett-Packard
HTML (hypertext markup language) 181
Hugos, Michael 47
hybrid strategy 56–7, 56, 57–60, 57, 60–1
I
IBM 25, 86, 142, 143, 193
IKEA 141
Immelt, Jeff 150
Incyte Pharmaceuticals 183
India 22, 235
individual auto-replenishment 11
Industrial Revolution 5
information 9–11, 19–20, 206, 207, 207
information systems 10–11, 137–8, 159, 170–83, 171, 172, 193
infrastructure 37, 47–9, 61–2, 61, 96–7, 205, 207–9
innovation 36, 36, 55, 56–7, 56, 147, 168, 203
benefits 34, 44, 45, 148–9, 148, 185, 186
and business strategy 54, 54–5, 54
customer relationship management 179
for economic growth 61, 61, 62
elements of strategy 34, 38–9, 40, 44, 149–54, 206
information systems 172, 173, 175, 179, 180, 181, 182
in integrated strategy 56, 57, 59–60, 61
metrics 186, 188, 191–2, 195
organisation 161–2, 161, 168, 169
success factors 147–8
and value chain role 53, 53
see also product development; product introduction; product launches
integrated information systems 182–3
integrated organisation 161–2, 161
integrated strategy 56–7, 56, 57–60, 57, 60–1
integration sourcing strategy 68–9, 69–70, 69, 70
/>
Intel 153
intelligent transport networks 208
internal processes 117–18
internet 10, 16, 62, 162, 203, 236
InterSwitch 100
inventory 21, 23, 52, 60, 75, 99, 207–8, 233
bullwhip effect and 17, 46, 90–1, 111–12
centralisation 107–8
China 49
consignment 67, 87, 174–5
management 13, 26, 33, 43, 66, 156, 207
reducing 35, 46, 74, 82, 93, 100, 104, 173, 200–1, 228
stratification 107, 108
vendor-managed 67, 87, 156, 175
Investment Technology Group 235
iParty 152
Iron Mountain 81, 84, 170
Ishikawa diagrams 79–80, 80, 95
IT (information technology) 43, 62, 72, 170
see also information systems; software
J
Jabil Circuit 140, 170, 175
JDA Software 137–8
Jenkins, Peter 42
jidoka 79, 95
JIT (just-in-time) 35, 42, 50, 95, 96, 99–103, 175
job-shop production 51, 52, 139, 139
John Deere 165, 233
Joyce, James 83–4
Juran, Joseph 77
Jurassic Park (film) 132–3
just-in-time see JIT
K
kaizen 67, 77, 79, 86, 94, 113
kanban cards 95, 100
key performance indicators see KPIs
KGHM 106, 233
kitting 103, 141
KLM 167
KPIs (key performance indicators) 197–9
Kux, Barbara 63
L
La Poste 88
labour 6–7, 21
Laem Chabang (Thailand) 48
Lafley, A.G. 150
Lambert, Douglas 110, 229, 231, 232
lead times 30, 43, 114, 137, 138–9, 142
lean approach 2, 4, 34, 74–5, 95, 123, 138, 200
lean distribution 58, 94, 207
lean manufacturing 27, 63, 67, 74–81, 94, 207, 227
see also kaizen
level loading 101
“leverage” categories 68, 69, 69
Lieb, Robert 6
Life Fitness 143
life-cycle costs 33
lifetime services 130, 145
linear programmes 227
logistics 1, 2, 7, 25, 26, 33–4, 41, 43
place in organisation 155
planning 154
poor infrastructure and 47
for price discounting 58
services 204–5
see also 3PL
logistics management 32, 227–9, 228
long supply chains 7–9, 8, 14, 118, 151, 164
long-term contracts 45, 70, 115, 123, 145
L’Oréal 199
Lorenz attractor 18, 18
Lorenz, Edward 17–18, 18
Los Angeles (US) 113–14, 208–9
low costs 43, 63
low-cost country sourcing 23–4, 44–5, 63, 122, 153, 234, 235
M
M&C Specialties 151, 201
Macapagal Arroyo, Gloria 235
Maccoby, Michael 167, 167
McDonald’s 20, 92, 128–9
MacGregor 235
machine tool industry 16–17
McLean, Malcolm 8–9
Macmillan, Doug 127
macroeconomics 18–19, 210
Macy’s 20
make to order see MTO
make to plan see MTP
make to stock see
MTS manufacturing 25, 33, 43, 162
costs 20, 21
strategy 51–2, 51
Marchi, Massimo 124
marketing 43, 161–2, 182
Marks and Spencer 92, 133, 178, 234–5
mass customisation 10, 51, 126, 130, 138–42, 139
mass production 6
Matalan 234
materials control 43, 193
materials requirements planning see MRP
Mattel 23–4
MCC (Micro-Compact Car) 99–100
Mentzer, John 109, 117, 117
Mercator 138
metrics 37, 184–5, 193, 197–9
maturity model 192–7, 194–5, 196–9
primary results 185, 186, 192
process metrics 186, 188–92, 190, 192
subsidiary results 185–8, 186, 192
Micro-Compact Car (MCC) 99–100
Middle East 8, 49, 202
Miles, Stephen 206–7
mining industry 20
Minteq 151
MIT (Massachusetts Institute of Technology) 206–7
mode selection (transport) 67, 83–4
modularisation 99–100, 103, 141–2
Monoprix 15, 87, 228
Monte Carlo simulations 141–2
risk assessment 118, 119
Moran, Felipe 109
Motorola 78, 151, 201
MRP (materials requirements planning) 29, 142, 176, 193
MTO (make to order) 50, 51, 52, 96, 104, 105, 139, 139
transition to 104, 106–7, 203
MTP (make to plan) 104, 106
MTR Foods India 22
MTS (make to stock) 51, 52, 104, 106, 107, 139–40, 139, 141
N
Nampak 98
national competitiveness 47, 210
National Model 209
national supply chain maturity model 61–2, 61
Nederlandse Bibliothek Dienst 178
Nelson, R. David 60–1
Netflix 130, 133–4, 145–6, 149
network design 170, 171, 172, 173
New York City Housing Authority 157–9
Noe, David 27, 142
Nokia 50, 120, 127, 201
“non-critical” categories 68, 69, 69, 70
Northwest Airlines 167
nucleus companies see anchor players
Nypro 50, 151
O
obsolescence 43, 60, 146, 193
OCR (optical character recognition) 178–9
offshoring 24, 71, 234, 235
Ohno, Taiichi 76
oil industry 13, 16, 16, 90, 202
oil prices 8, 21
Oliver, Keith 1
Oluwehinmi, Seyi 100
OM (operations management) 5, 6, 31–2, 32
on-demand availability 130, 142, 144
one-piece flow 100, 102, 142
operating environments 104–6, 105
operational performance 92–4, 92, 93
operations management see OM
operations research (OR) 227
optical character recognition see
OCR optimal inventory placement 96, 107–8
OR see operations research
order fulfilment organisation 156–7, 157–9
order processing 66, 182–3
ordering 10, 17, 140
orders 19, 30, 90, 114, 146, 189
lead times 30, 43, 114, 137, 138–9, 142
organisational change management 37
organisational structure 155–62, 156–8, 160–1, 165–7, 168, 169, 183
outposting inventory 107–8
outsourcing 67, 71–2, 73–4, 127, 130–1, 155, 200, 234
safety 23–4
see also low-cost country sourcing
Ouyang, Yanfeng 15
overcorrection 19
P
packaging 72, 154
paperless work flow 67, 87–9
Parametric Technology Corporation 181–2
partnerships 70, 112, 165, 167–8, 167, 183, 207
for innovation 152–3, 173
public-private 98, 196, 205, 207–9
PDAs (personal digital assistants) 59–60, 127, 145, 177
PDCA (plan-do-check-act) 75, 78, 79, 80, 95
Peppers, Donald 133, 141
perfect order fulfilment 96, 104, 205
performance
financial 44–6, 45, 92–4, 92, 93
macroeconomic 210
personal digital assistants see PDAs
personal interactions 130, 142–4
personalisation 11, 106, 126–7, 142, 144–5
Pfizer 183
Philippines 235
PierPASS 113–14, 208–9
plan-do-check-act see PDCA
plan-source-make-deliver 229–30, 233
planning 43, 66
Plaxo 162
PLM (product life-cycle management) 26, 137, 150, 152
IT systems 152, 162, 171, 171, 172, 181–2, 201
Poincaré, Henri 17
point-of-sale data 9–10, 15, 137
Poirier, Charles 32–3, 110, 231, 233
poka-yoke 77, 77–8
Popular Telephony 145
Port Said (Egypt) 204
Porter, Michael 54, 229
ports 48, 62, 96–7, 178, 204, 208
Los Angeles 113–14, 208–9
postponement 35, 99–100, 102–3, 123, 141–2, 207
Pratt & Whitney 145
premium quality 43, 44
price erosion 20, 21
price risk 116–17, 118
Priceline 180
PricewaterhouseCoopers Consulting 193
pricing 113–14, 162, 171, 171, 172, 180, 207
congestion pricing 208
customer-specific 136–8
primary results 185, 186, 192
prisoner’s dilemma 111, 111
privatisation 7, 47, 73, 233
process analysis tools 75, 79–81
process mapping 75, 79, 80–1
process metrics 186, 188–92, 190, 192
process re-engineering 230, 230–1
Procter & Gamble 15, 109, 149, 150
procurement 43, 70, 155, 162, 235
product design 144–5
product development 36, 155, 162, 196
product introduction 36, 44, 59–60, 162, 182
product launches 147–8, 150, 150–1, 175, 207
product life-cycle management see PLM
product life-cycles 42–4, 60, 147, 154, 202, 206
product-services 203–5, 204
production capacity 30, 66
production control 6, 33, 155, 156, 175–6
production cycle time 92–3
production process models 139–41, 139
project management 37
promotions 19, 90
prototyping 150, 151, 175, 206
Ptak, Carol 34–5
public-private partnerships 205, 207–9
pull-based demand trigger 96, 98–9
purchasing 25, 43, 183
push supply chain 152
Q
Qatar Fuel 196–7
QEC (“quick engine change”) 103
quality 43, 44, 66, 67, 207
quality function deployment 131–3, 132
Quayle, Michael 26
“quick engine change” see QEC
R
R&D 149, 149, 161–2
radio frequency identification see RFID
railways 21, 28, 47–8, 58, 83, 90, 97, 128
BNSF 97–8, 208
rapid replenishment 28, 35, 100
rapid response 37, 126, 142, 207
rationalisation 36, 36, 55, 55, 63, 233, 234