Enterprise Supply Chain Management: Integrating Best in Class Processes

Preface xi

Acknowledgments xv

PART I INTRODUCTION 1

CHAPTER 1 What Is a Supply Chain? 3

Definitions 3

Physical Manifestation of a Supply Chain 5

Elements of a Supply Chain Model 7

Summary 11

CHAPTER 2 Scope of the Supply Chain 13

Core Supply Chain Functions 13

Extended Supply Chain Functions 14

Supply Chain: Planning versus Execution 14

Overview of the Supply Chain Landscape 17

Summary 21

PART II SUPPLY CHAIN PLANNING 23

CHAPTER 3 Supply Chain Network Design 25

Inputs and Outputs of the Supply Chain Network Design Process 26

Related Subprocesses 28

Summary 30

CHAPTER 4 Demand Planning 31

Demand Forecasting 32

Allocation Planning 38

Summary 41

CHAPTER 5 Supply Planning 43

Inventory Planning 43

Replenishment Planning 53

Production Planning 60

Logistics Capacity Planning 67

Summary 70

PART III SUPPLY CHAIN EXECUTION 73

CHAPTER 6 Supply Management 75

Strategic Sourcing 75

Replenishment Execution 84

Production Scheduling 89

Supplier Performance Management 91

Global Trade Management 98

Summary 101

CHAPTER 7 Transportation Management 103

Transportation Planning and Execution 103

Freight Audit and Verification 113

Fleet Management 115

Summary 117

CHAPTER 8 Warehouse Management 119

Inbound Warehouse Operations 123

Outbound Warehouse Operations 125

Warehouse Inventory Management 129

Yard Management 132

Warehouse Labor Management 135

Slotting Optimization 136

Billing Management and Cost Allocation 138

Summary 141

CHAPTER 9 Reverse Logistics Management 143

Returns Disposition Determination 144

Logistics Planning and Execution for Returns 145

Summary 147

PART IV SUPPLY CHAIN COLLABORATION 149

CHAPTER 10 Collaborative Processes 151

Collaborative Planning Processes 152

Collaborative Execution Processes 153

Collaborative Performance Management 155

Summary 156

APPENDIX A Supply Chain Technology 157

ERP and Supply Chain Management 157

Best-of-Breed versus ERP 158

Software as a Service (SaaS) or License Considerations for Successful Supply Chain 159

Technology Deployments 163

Change Management 167

APPENDIX B RFID Technology 173

RFID Adoption in the Industry 174

APPENDIX C Understanding Cross-docking 177

Planned Cross-docking or Flow-through 178

Opportunistic Cross-docking 178

Evaluating Readiness 179

APPENDIX D Supply Chain and Finance: A Quick Primer 183

Supply Chain Processes Reducing COGS 184

Supply Chain Processes Increasing Asset Turnover 185

APPENDIX E How Green Is Your Supply Chain? 187

Integrated Assortment Planning and Sourcing Sourcing and Supplier Selection: Manufacturing, 188

Packaging, and Recycling 188

Logistics and Distribution 189

Total Landed Cost 189

Depth of Supply Chain Models 190

Carbon Cost Index 190

APPENDIX F Commonly Used EDI Transaction Codes 193

APPENDIX G Incoterms (International Commercial Terms) 195

Index 201