acceleration effect 155–6
Accenture (fmly Andersen Consulting) 65,
223
activities
non-value adding 129–30, 133, 162
value adding 130, 130
activity-based costing 80, 81, 163, 230
adaptability 263–4
after sales support 166
agility
customer responsiveness 115–16
definition 99–100
foundations 112–16
supply chain 102, 102, 206
velocity and visibility drive
responsiveness 88
aggregate demand forecast 90–1
Ahlstrom 235
Amazon 166, 262
American War of Independence 1
AMR Research 66, 211
Apple 66
Aspinall, K. 163
attitude 212
BAe Systems 205
Baker, S. 38
balanced metrics 212
balanced scorecard 239–40
barcoding 151
benchmarking 237–8
internal 134
model 239–40
Benetton 154
Bills of Materials 162, 166, 168, 245
Boeing 787 Dreamliner 169–70
Borsodi, Ralph 20
bottlenecks 139–40, 203
Buffet, Warren 65
Bullwhip 154
bullwhip effect 165
business models
efficient 190–1
need for new 212–14
transformations 218–20
business process re-engineering (BPR)
113
butterfly effect 159–60
CAD (computer aided design) 144
CAM (computer aided manufacturing) 144
Canon 116
capabilities 16
capacity, rough cut 91–2
carbon
and supply chain 244–5
carbon footprint 248–52, 259
Carbon Trust 249
cash and receivables 60
cash flow 58
changing the profile 66
and shareholder value 65–6
cash-to-cash cycles 126–9
Caterpillar 30
centralisation of distribution 191
centres of excellence 19
Chrysler 198
Cisco Systems 147
claims procedures 52
climate change 243, 244, 258
closed-loop supply chains 250
Coca-Cola 171
collaborative planning, forecasting and
replenishment (CPFR) 94–7, 97
collaborative working 141
and networks 205, 214–17
prisoner’s dilemma 214–15, 215
collective strategy development 217
co-makership 215–17
commoditisation 16, 28
competencies 16
competition
network 211–26
new rules 15–18
competitive advantage 4–9
through capabilities and competencies
16
through cost advantage 5, 7–8
Index
269
Page numbers in italics denote a table/diagram
270
competitive advantage (continued)
through customer service 28
gaining 9, 9
and logistics 7
new rules of 15–18
and process innovation 17–18
procurement policies 12
through productivity 9, 10–11
service-based 16
3 Cs 4, 4–5
time-based 121–5
through value 4, 6–7, 8–9, 29–30
competitive environment
changing 15–24
customer-centered 22–4
globalisation 18–19
price deflation 19–22
resilience in 24
computer aided design (CAD) 144
computer aided manufacturing (CAM) 144
congestion 252–5
consensus forecasts 91
consumer electronics, price deflation 20
core processes 16
cost advantage 5, 7–8
cost leadership 7–8
costing
activity-based 80, 81, 163, 230
logistics oriented 70–2
mission 71–2, 80–1
costs
alternative concepts 231
analysis of total 67–70
attributable 72
avoidable 73, 81
customer 57, 74–5, 74
customer profitability 74
customer service 44
of distribution network 69
impact of logistics missions 71
of inventory holdings 69–70
logistics, analysis of 66–7
operating 64
opportunity 77
product 87
profitability analysis 72–8
set-up 111
strategies 34
supply chain view 21–2
transparency 230–1
critical paths
identifying 200–2
managing 202–3
see also supply chain
critical value analysis 50
Crocs 266
cross-docking 150, 254
cross-functional teams 205, 234
current assets 60
current liabilities 61
customer complexity 163, 168
customer retention 219
customer service 30–7, 49, 55
augmenting core product 35
and competitive advantage 28
components 31–2, 32, 40, 41
composite index 54
cost 44
cost/benefit analysis 43–6
definition 30–1
and 80/20 rule (Pareto) 49
functional (conventional) organisations
232
global management 183
goals 70–1
and inventory investment 45
and marketing effectiveness 34, 36
objectives 42–3
priority setting 46–50
relationship management 219
reliability 23
and retention 34–7
segment identification 41–2
standards 50–4
customer value
and supply chain strategy 39
customers
costs of average 74
80/20 rule (Pareto) 46, 46, 49–50, 165–6,
168
expectations 22–3, 28
lifetime value 36
local differences 177
needs identification 39–42
profit and loss account 74, 75
profitability accounting 72
profitability analysis 73, 72–6, 76
profitability matrix 77
reaction to stock-outs 33
relationship marketing 28
responsiveness to 23, 115–16
INDEX
270
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