Supply Chain and Logistics Management Made Easy Methods and Applications for Planning, Operations, Integration, Control and Improvement, and Network Design

THE PRACTICAL, EASY INTRODUCTION TO MODERN SUPPLY CHAIN/LOGISTICS MANAGEMENT FOR EVERY PROFESSIONAL AND STUDENT!

COVERS CORE CONCEPTS, PLANNING, OPERATIONS, INTEGRATION, COLLABORATION, NETWORK DESIGN, AND MORE

This easy guide introduces the modern field of supply chain and logistics management, explains why it is central to business success, shows how its pieces fit together, and presents best practices you can use wherever you work.

Myerson explains key concepts, tools, and applications in clear, simple language, with intuitive examples that make sense to any student or professional. He covers the entire field: from planning through operations, integration and collaboration through measurement, control, and improvement.

You?ll find practical insights on hot-button issues ranging from sustainability to the lean-agile supply chain. Myerson concludes by helping you anticipate key emerging trends?so you can advance more quickly in your own career.

Trillions of dollars are spent every year on supply chains and logistics. Supply chain management is one of the fastest growing areas of business, and salaries are rising alongside demand. Now, there?s an easy, practical introduction to the entire field: a source of reliable knowledge and best practices for students and professionals alike.

Paul A. Myerson teaches you all you?ll need to start or move forward in your own supply chain career. Writing in plain English, he covers all the planning and management tasks needed to transform resources into finished products and services, and deliver them efficiently to customers.

Using practical examples, Myerson reviews the integration, collaboration, and technology issues that are essential to success in today?s complex supply chains. You?ll learn how to measure your supply chain?s performance, make it more agile and sustainable, and focus it on what matters most: adding customer value.

• MASTER NUTS-AND-BOLTS OPERATIONAL BEST PRACTICES
  Improve procurement, transportation, warehousing, ordering, reverse logistics, and more
• BUILD A BETTER GLOBAL SUPPLY CHAIN
  Manage new risks as you improve sustainability
• STRENGTHEN KEY LINKAGES WITH YOUR PARTNERS AND CUSTOMERS
  Get supply chains right by getting collaboration right
• PREVIEW THE FUTURE OF SUPPLY CHAINS?AND YOUR SUPPLY CHAIN CAREER
  Discover ?where the puck is headed??so you can get there first

Part I: Supply Chain and Logistics Management: Overview 1

Chapter 1: Introduction 3

Supply Chain Defined 4

SCOR Model 5

An Integrated, Value-Added Supply Chain 7

The Value Chain 7

Leveraging the Supply Chain 8

Supply Chain Strategy for a Competitive Advantage 9

Segmenting the Supply Chain 10

The Global Supply Chain and Technology 11

Chapter 2: Understanding the Supply Chain 13

Historical Perspective 13

Value as a Utility 14

Organizational and Supply Chain Strategy 15

Mission Statement 15

SWOT Analysis 16

Strategic Choices 17

Supply Chain Strategy Elements and Drivers 17

Supply Chain Strategy Methodology 19

Supply Chain Opportunities and Challenges 23

Supply Chain Talent Pipeline 26

Career Opportunities in Supply Chain and Logistics Management 27

Growing Demand 27

Part II: Planning for the Supply Chain 31

Chapter 3: Demand Planning 33

Forecasting Used to Be Strictly Like “Driving Ahead,

Looking in the Rearview Mirror” 34

Forecasting Realities 35

Types of Forecasts 36

Demand Drivers 36

Forecasting Process Steps 37

Quantitative Versus Qualitative Models 38

Qualitative Models 38

Quantitative Models 39

Product Lifecycles and Forecasting 40

Introduction 41

Growth 41

Maturity 41

Decline 41

Time Series Components 42

Time Series Models 43

Associative Models 44

Correlation 45

Seasonality 45

Multiple Regression 46

Forecasting Metrics 46

Forecast Error Measurement 47

Demand Forecasting Technology and Best Practices 48

Chapter 4: Inventory Planning and Control 51

Independent Versus Dependent Demand Inventory 51

Types of Inventory 53

Costs of Inventory 53

Carrying or Holding Costs 54

Ordering Costs 54

Setup Costs 54

Total Cost Minimized 55

Economic Order Quantity Model 56

Basic EOQ Calculation 57

Reorder Point (ROP) Models 57

Fixed-Quantity Model 57

Fixed-Period Model 60

Single-Period Model 61

ABC Method of Inventory Planning and Control 61

Realities of ABC Classification 62

Other Uses for ABC Classification 63

Inventory Control and Accuracy 63

Cycle Counting 63

Key Metrics 64

Inventory Planning and Control Technology 65

Software 65

Hardware 67

Careers 67

Chapter 5: Aggregate Planning and Scheduling 69

The Process Decision 70

Goods and Service Processes 70

Planning and Scheduling Process Overview 72

Aggregate Planning 74

S&OP Process 74

Demand and Supply Options 76

Aggregate Planning Strategies 78

Master Production Schedule 78

Production Strategies 79

System Nervousness 80

Material Requirements Planning 80

Bill of Materials 80

MRP Mechanics 81

Short-Term Scheduling 83

Types of Scheduling 84

Sequencing 84

Finite Capacity Scheduling 85

Service Scheduling 85

Technology 86

Part III: Supply Chain Operations 87

Chapter 6: Procurement in the Supply Chain 89

Make or Buy 90

Outsourcing 90

Other Supply Chain Strategies 91

The Procurement Process 93

Identify and Review Requirements 93

Establish Specifications 94

Identify and Select Suppliers 95

Determine the Right Price 97

Issue Purchase Orders 98

Follow Up to Ensure Correct Delivery 99

Receive and Accept Goods 100

Approve Invoice for Payment 100

Key Metrics 100

Technology 101

Chapter 7: Transportation Systems 103

Brief History of Transportation Systems in America 103

Transportation Cost Structure and Modes 105

Transportation Costs 105

Modes 105

Legal Types of Carriage 110

For Hire 110

Private 110

Transportation Economics 111

Transportation Cost Factors and Elements 111

Rates Charged 114

Effects of Deregulation on Pricing 115

Pricing Specifics 115

Documents 116

Domestic Transportation Documents 116

International Transportation Documents 119

Key Metrics 122

Technology 122

Chapter 8: Warehouse Management and Operations 125

Brief History of Warehousing in America 126

Economic Needs for Warehousing 126

Types of Warehouses 127

Warehouses by Customer Classification 127

Warehouses by Role in the Supply Chain 128

Warehouses by Ownership Type 129

Warehouse Economic Benefits 131

Consolidation 132

Accumulation, Mixing, and Sorting 133

Postponement 134

Allocation 134

Market Presence 135

Warehouse Design and Layout 135

Size of Facility 135

Facility Layout 137

Warehouse Operations 140

Packaging 141

Key Metrics 142

Customer-Facing Metrics 142

Technology 143

Warehouse Management Systems 143

Yard Management Systems 145

Chapter 9: Order Management and Customer Relationship Management. .147

Order Management 148

Order Placement 148

Order Processing 148

Order Preparation and Loading 149

Order Delivery 150

Customer Relationship Management 150

Customer Service 150

Customer Relationship Management 154

Technology 155

Chapter 10: Reverse Logistics and Sustainability 157

Reverse Logistics Activities 157

Repairs and Refurbishing 158

Refilling 159

Recall 159

Remanufacturing 159

Recycling and Waste Disposal 160

Returns Vary by Industry 160

Publishing Industry 160

Computer Industry 160

Automotive Industry 160

Retail Industry 161

Reverse Logistic Costs 161

Reverse Logistics Process 161

Receive 161

Sort and Stage 161

Process 162

Analyze 162

Support 162

Reverse Logistics as a Strategy 162

Using Reverse Logistics to Positively Impact Revenue 162

Other Strategic Uses of Reverse Logistics 163

Reverse Logistics System Design 164

Product Location 164

Product Collection System 164

Recycling or Disposal Centers 165

Documentation System 165

Reverse Logistics Challenges 165

Retailer-Manufacturer Conflict 165

Problem Returns and Their Symptoms 166

Cause and Effect 166

Reactive Response 166

Managing Reverse Logistics 166

Gatekeeping 167

Compacting the Distribution Cycle Time 168

Reverse Logistics Information Technology Systems 168

Centralized Return Centers 168

Zero Returns 169

Remanufacture and Refurbishment 169

Asset Recovery 170

Negotiation 170

Financial Management 170

Outsourcing 170

Reverse Logistics and the Environment 170

Supply Chain Sustainability 171

Green Logistics 171

Chapter 11: Global Supply Chain Operations and Risk Management 173

Growth of Globalization 173

Factors Influencing Globalization 174

Reasons for a Company to Globalize 174

Global Supply Chain Strategy Development 175

International Transportation Methods 177

Ocean 177

Air 177

Motor 178

Rail 178

Global Intermediaries 178

Global Supply Chain Risks and Challenges 178

Questions to Consider When Going Global 179

Key Global Supply Chain Challenges 180

Risk Management 181

Potential Risk Identification and Impact 181

Sources of Risk 182

Supply Chain Disruptions 183

Risk Mitigation 184

Part IV: Supply Chain Integration and Collaboration 187

Chapter 12: Supply Chain Partners 189

Outsourcing 189

Reasons to Outsource 190

Steps in the Outsourcing Process 191

Supply Chain and Logistics Outsourcing Partners 192

Traditional Service Providers 192

Third-Party Logistics Providers 193

Fourth-Party Logistics Service Providers 196

Chapter 13: Supply Chain Integration Through Collaborative Systems 199

Internal and External Integration 200

Internal Integration 200

External Integration 201

Supply Chain Collaboration Methods: A Closer Look 206

Quick Response 206

Efficient Consumer Response 207

Collaborative Planning, Forecasting, and Replenishment 208

Chapter 14: Supply Chain Technology 211

Supply Chain Information 211

Supply Chain Information Needs 213

Supply Chain Software Market 214

Supply Chain Planning 215

Supply Chain Execution 215

Other Supply Chain Technologies 216

SCM System Costs and Options 217

Best-in-Class Versus Single Integrated Solution 217

Consultants 218

Current and Future Trends in Supply Chain Software 218

Short-Term Supply Chain Technology Trends 218

Emerging Supply Chain Technology Trends 219

Part V: Supply Chain and Logistics Network Design 223

Chapter 15: Facility Location Decision 225

The Importance of Facility Location When Designing a Supply Chain 225

Supply Chain Network Design Influencers 226

Types of Distribution Networks 228

Manufacturer Storage with Direct Shipping 228

Manufacturer Storage with Direct Shipping and In-Transit Merge 229

Distributor Storage with Carrier Delivery 230

Distributor Storage with Last-Mile Delivery 232

Manufacturer or Distributor Storage with Customer Pickup 233

Retailer Storage with Customer Pickup 234

Impact of E-Business on the Distribution Network 235

Location Decisions 237

Strategic Considerations 237

Location Decision Hierarchy 238

Dominant Factors in Manufacturing 240

Dominant Factors in Services 240

Location Techniques 240

Location Cost-Volume Analysis 240

Weighted Factor Rating Method 242

Center of Gravity Method 243

The Transportation Problem Model 245

Technology 246

Careers 246

Chapter 16: Facility Layout Decision 249

Types of Layouts 249

Product Layouts 250

Process Layouts 250

Hybrid Layouts 253

Cellular (or Work Cell) Layouts 253

Fixed-Position Layout 255

Facility Design in Service Organizations 255

Designing and Improving Product Layouts 256

Assembly Line Design and Balancing 256

Work Cell Staffing and Balancing 258

Warehouse Design and Layout Principles 260

Design and Layout Process 260

Technology 261

Careers 262

Part VI: Supply Chain and Logistics Measurement, Control, and Improvement 263

Chapter 17: Metrics and Measures 265

Measurement and Control Methods 265

The Evolution of Metrics 266

Data Analytics 266

Measurement Methods 267

Measurement Categories 267

Balanced Scorecard Approach 268

Customer Service Metrics 269

Operational Metrics 269

Financial Metrics 270

SCOR Model 270

Supply Chain Dashboard and KPIs 273

Indicators 274

Benchmarking 274

Chapter 18: Lean and Agile Supply Chain and Logistics 277

Lean and Waste 277

History of Lean 278

Value-Added Versus Non-Value-Added Activities 279

Waste 280

Lean Culture and Teamwork 281

Lean Teams 282

Kaizen and Teams 283

Team and Kaizen Objectives 283

Value Stream Mapping 283

VSM Benefits 286

Lean Tools 286

Standardized Work 288

5S-Workplace Organization System 288

Visual Controls 289

Facility Layout 289

Batch Size Reduction and Quick Changeover 289

Quality at the Source 290

Point-of-Use Storage 291

Total Productive Maintenance 291

Pull/Kanban and Work Cells 291

Lean and Six Sigma 292

Chapter 19: Outlook for Supply Chain and Logistics Management 293

Supply Chain and Logistics Career Outlook 293

Trends in Supply Chain and Logistics Management 294

Supply Chain Trends 294

Logistics Trends 295

Supply Chain Leadership Trends 296

Supply Chain Technology Trends 297

Conclusion 299

References 301

Index 305

Paul A. Myerson is a Professor of Practice in Supply Chain Management at Lehigh University and holds a B.S. in Business Logistics and an M.B.A. in Physical Distribution.

Professor Myerson has an extensive background as a Supply Chain and Logistics professional, consultant, and teacher. Prior to joining the faculty at Lehigh, Professor Myerson has been a successful change catalyst for a variety of clients and organizations of all sizes, having over 30 years experience in Supply Chain and Logistics strategies, systems, and operations that have resulted in bottom-line improvements for companies such as General Electric, Unilever, and Church and Dwight (Arm & Hammer).

Professor Myerson created and has marketed a Supply Chain Planning software tool for Windows to a variety of companies worldwide since 1998.

He is the author of the books Lean Supply Chain & Logistics (McGraw-Hill, Copyright 2012) and Lean Wholesale and Retail (McGraw-Hill, Copyright 2014) as well as a Lean Supply Chain and Logistics Management simulation training game and training package (Enna.com, copyright 2012–13).

Professor Myerson also writes a column on Lean Supply Chain for Inbound Logistics Magazine and a blog for Industry Week magazine.

The ideal new introduction to modern supply chain management for every manager, professional, and student

• Practical, accessible, and up-to-date: designed from the ground up to maximize “takeaways” and support today’s best practices
• Covers core concepts, planning, operations, integration, collaboration, network design, metrics, control, improvement, lean/agile, and much more
• Explains why supply chains have become so important, and how their components can fit together in highly-efficient global networks
• By world-renowned supply chain professional, consultant, and teacher Paul Myerson, Lean Supply Chain columnist for Inbound Logistics Magazine