Supply Chain Logistics Management, Fifth Edition
By Donald J. Bowersox, David J. Closs, M. Bixby Cooper and John C. Bowersox
Contents:
About the Authors vi
Preface vii
PART ONE
SUPPLY CHAIN LOGISTICS MANAGEMENT 1
Chapter 1
21st-Century Supply Chains 2
The Supply Chain Revolution 3
Why Integration Creates Value 4
Generalized Supply Chain Model and Supply Chain Applications 5
Generalized Supply Chain Model 7
Supply Chain Definitions and Activities 8
Integrative Management and Supply Chain Processes 9
Integrated Service Providers 11
Collaboration 13
Supply Chain Value Proposition 14
Effectiveness 14
Efficiency 15
Relevancy 15
Sustainability 15
Value Proposition Conclusion 15
Responsiveness 15
Anticipatory Business Model (Push) 16
Responsive Business Model (Pull) 16
Barriers to Implementing Responsive Systems 17
Globalization 18
Industry Disruptors 19
Consumer Requirements 19
Technology Adoption 20
Conclusion 21
Summary 21
Study Questions 22
Challenge Questions 22
Chapter 2
Supply Chain Information Technology 23
Information System Functionality 24
Supply Chain Information System Modules 27
Enterprise Integration and Administration 27
Enterprise Supply Chain Operations 28
Enterprise Planning and Monitoring 29
Communication Technology 30
Consumer Connectivity 30
Blockchain 31
Logistics Operations Modules 32
Summary 33
Study Questions 34
Challenge Questions 34
Chapter 3
Logistics 35
The Logistics of Business Is Big
and Important 36
The Logistical Value Proposition 37
Service Benefits 38
Cost Minimization 39
Logistics Value Generation 40
The Work of Logistics 40
Order Processing 41
Inventory 41
Transportation 42
Warehousing, Materials Handling, and Packaging 43
Facility Network Design 44
Logistical Operations 45
Inventory Flow 45
Information Flow 47
Logistical Integration Objectives 47
Responsiveness 48
Variance Reduction 48
Inventory Reduction 48
Shipment Consolidation 48
Quality 49
Life Cycle Support 49
Logistical Operating Arrangements 50
Echelon 50
Direct 50
Combined 51
Flexible Structure 52
Supply Chain Synchronization 54
Performance Cycle Structure 55
Performance Cycle Uncertainty 57
Summary 58
Study Questions 59
Challenge Questions 60
Chapter 4
Customer Accommodation 61
Customer-Focused Marketing 62
Transactional versus Relationship Marketing 63
Supply Chain Service Outputs 64
Omnichannel Marketing 66
Customer Service 67
Availability 67
Operational Performance 68
Service Reliability 70
The Perfect Order 70
Logistics Service Platforms 71
Customer Satisfaction 72
Customer Expectations 72
A Model of Customer Satisfaction 73
Increasing Customer Expectations 76
Limitations of Customer Satisfaction 76
Customer Success 78
Achieving Customer Success 78
Value-Added Services 79
Developing Customer Accommodation Strategy 80
Framework for Strategic Choice 81
Customer Relationship Management Technology 82
Summary 84
Study Questions 85
Challenge Questions 85
PART TWO
SUPPLY CHAIN OPERATIONS 87
Chapter 5
Integrated Operations Planning 88
Supply Chain Planning 89
Supply Chain Visibility 89
Simultaneous Resource Consideration 89
Resource Utilization 90
Supply Chain Planning Applications 90
Demand Planning 90
Production Planning 91
Logistics Planning 91
Inventory Deployment 92
Sales and Operations Planning (S&OP) 92
S&OP Process 93
Making S&OP Work 96
APS System Overview 97
APS System Components 99
Supply Chain Planning Benefits 101
Supply Chain Planning Considerations 102
Integrated Business Planning 103
Supply Chain Planning Summary 103
Collaborative Planning, Forecasting,
and Replenishment 104
Forecasting 105
Forecasting Requirements 106
Forecasting Components 107
Forecasting Process 109
Forecasting Techniques 111
Forecasting Accuracy 115
Summary 117
Study Questions 117
Challenge Questions 118
Chapter 6
Procurement and Manufacturing 119
The Quality Imperative 120
Dimensions of Product Quality 120
Total Quality Management 121
Procurement Importance 122
Procurement Objectives 123
Continuous Supply 123
Minimum Inventory Investment 124
Quality Improvement 124
Technology and Innovation 124
Lowest Total Cost of Ownership 124
Procurement Strategy 126
Insourcing versus Outsourcing 126
Alternative Procurement Strategies 127
Procurement Strategy Portfolio 130
Logistical Interfaces with Procurement 131
Just-in-Time 131
Procurement of Logistics Services 132
Performance-Based Logistics 133
Manufacturing 133
Manufacturing Processes 133
Job Shop Process 133
Batch Process 134
Line Flow Process 134
Continuous Process 135
Matching Manufacturing Strategy
to Market Requirements 135
Manufacturing Strategies 135
Engineer-to-Order 135
Make-to-Order 136
Assemble-to-Order 136
Make-to-Plan 136
Mass Customization 138
Lean Systems 139
Six Sigma 139
Design-for-Logistics 140
Summary 141
Study Questions 141
Challenge Questions 142
PART THREE
SUPPLY CHAIN LOGISTICS
OPERATIONS 143
Chapter 7
Inventory 144
Inventory Functionality and Definitions 145
Inventory Functionality 146
Inventory Definitions 147
Inventory Carrying Cost 151
Capital 151
Taxes 151
Insurance 151
Obsolescence 152
Storage 152
Planning Inventory 152
When to Order 152
How Much to Order 153
Managing Uncertainty 158
Demand Uncertainty 158
Performance Cycle Uncertainty 162
Safety Stock with Combined Uncertainty 162
Estimating Fill Rate 165
Dependent Demand Replenishment 167
Inventory Management Policies 168
Inventory Control 168
Reactive Methods 170
Planning Methods 172
Collaborative Inventory Replenishment 176
Postponement 178
Inventory Management Practices 180
Product/Market Classification 180
Segment Strategy Definition 181
Policies and Parameters 182
Summary 182
Study Questions 183
Challenge Questions 183
Chapter 8
Transportation 184
Transport Functionality and Participants 185
Functionality 185
Participants 186
From Regulation to a Free Market System 188
Transportation Modal Structure 190
Rail 190
Truck 192
Water 194
Pipeline 194
Air 195
Modal Comparative Characteristics
and Capabilities 196
Infrastructure in Crisis 196
Specialized Transportation Services 197
Parcel Service 197
Intermodal 199
Nonoperating Intermediaries 200
Transportation Economics and Pricing 201
Economy of Distance 201
Economy of Weight 202
Economy of Density 202
Other Pricing Factors 202
Costing Freight 203
Pricing Freight 204
Transportation Operations Management 209
Transportation Management Systems 209
Operations 210
Consolidation 211
Negotiation 212
Control 213
Payment, Auditing, and Claims Administration 213
Documentation 213
Bill of Lading 213
Freight Bill 215
Shipment Manifest 215
Product Pricing and Transportation 215
FOB Pricing 215
Delivered Pricing 216
Pickup Allowances 217
Summary 217
Study Questions 218
Challenge Questions 218
Chapter 9
Warehousing, Materials Handling,
and Packaging 219
Strategic Warehousing 220
Service Benefits 221
Economic Benefits 222
Warehouse Ownership Arrangements 226
Private 226
Public 227
Contract 228
Network Deployment 228
Warehouse Decisions 229
Site Selection 229
Design 229
Product-Mix Analysis 230
Expansion 230
Handling 231
Layout 231
Sizing 232
Warehouse Operations 232
Primary Warehouse Operations 232
Product Handling 232
Product Handling Considerations 234
Storage 241
Secondary Warehouse Operations 243
Accuracy and Audits 243
Security 243
Safety and Maintenance 244
Environmental Concerns and Regulatory
Environment 245
Systems 246
Warehouse Management Systems 246
Yard Management Systems 247
Information-Directed Systems 248
Packaging Perspectives 249
Packaging for Handling Efficiency 251
Package Design 251
Unitization 252
Communication 254
Summary 255
Study Questions 255
Challenge Questions 256
PART FOUR
SUPPLY CHAIN LOGISTICS DESIGN 257
Chapter 10
Global Supply Chains 258
Global Economies 258
Global Supply Chain Integration 260
Logistics in a Global Economy 260
Globalization Strategies 261
Managing the Global Supply Chain 264
Global Sourcing 268
Rationale for Low-Cost-Country Sourcing 268
Challenges for Low-Cost-Country Sourcing 268
Guidelines for Sourcing 269
Global Comparison of Supply Chain
Characteristics 271
Modes of Entry 271
Global Compliance 272
Customs and Border Protection 272
Compliance 273
Customs Broker 273
Enforcement 273
Conclusion 274
Summary 274
Study Questions 274
Challenge Questions 275
Chapter 11
Network Design 276
Enterprise Facility Network 277
Spectrum of Location Decisions 278
Local Presence: An Obsolete Paradigm 278
Warehouse Requirements 279
Procurement Drivers 279
Manufacturing Drivers 280
Customer Relationship Drivers 281
Warehouse Justification 282
Systems Concept and Analysis 282
Total Cost Integration 283
Transportation Economics 283
Inventory Economics 286
Total Cost Network 291
Formulating Logistical Strategy 293
Cost Minimization 293
Threshold Service 293
Service Sensitivity Analysis 295
Establishing Strategy 297
Other Considerations in Logistics
Network Design 298
Planning Methodology 300
Phase I: Problem Definition and Planning 301
Feasibility Assessment 301
Project Planning 307
Phase II: Data Collection and Analysis 309
Assumptions and Data Collection 309
Analysis 312
Phase III: Recommendations and
Implementation 313
Recommendations 313
Implementation 314
Application of Supply Chain Principles 315
Decision Application 318
Decision Framework 319
Strategy Drivers 322
Summary 324
Study Questions 325
Challenge Questions 325
PART FIVE
SUPPLY CHAIN LOGISTICS
ADMINISTRATION 327
Chapter 12
Relationship Management 328
Development and Management of Internal Logistics
Relationships 329
Functional Aggregation 329
Developing a Process Perspective 331
Development and Management
of Supply Chain Relationships 335
Types of Supply Chain Relationships and
Dependency 336
Power vs. Leadership 337
Developing Trust in Relationships 339
Managing Supply Chain Relationships
over Time 340
Initiating 340
Implementing 341
Maintaining 341
Terminating 343
Summary 343
Study Questions 344
Challenge Questions 344
Chapter 13
Performance Measurement 345
Measurement System Objectives 345
Operational Assessment 346
Functional Perspectives 347
Measuring Customer Relationships 351
Determining Appropriate Metrics 353
Rationalizing Performance Metrics 354
Supply Chain Comprehensive Metrics 354
Benchmarking 357
Information Technology and Measurement 358
Financial Assessment 359
Cost-Revenue Analysis 359
Strategic Profit Model 363
Requirements for Financial Reporting 367
Summary 368
Study Questions 368
Challenge Questions 369
Chapter 14
Supply Chain Trends 370
Understanding End-to-End Supply Chain
Management 371
Developing Supply Chain Management
Talent 372
Acquisition 372
Development 373
Conservation 374
Retention 374
Summary 375
Managing Risk and Complexity 375
Risk Management 375
Complexity Management 376
Summary 378
Managing Threats and Environmental
Changes 378
Understanding the Security, Regulatory,
and Compliance Environment 379
Understanding Purchasing and Total Cost
Management 380
Summary 380
Study Questions 381
Challenge Questions 381
Epilogue 382
Problems 384
Cases 396
Name Index 439
Subject Index 441