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The Supply Chain Game Changers: Applications and Best Practices that are Shaping the Future of Supply Chain Management

Name: The Supply Chain Game Changers: Applications and Best Practices that are Shaping the Future of Supply Chain Management
ISBN: 9780134093796

by Theodore H. Stank, J. Paul Dittmann, Michael Burnette, Chad Autry

October 2015

Intermediate to advanced

320 pages

8h 28m

English

Pearson

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About This eBook
Title Page
Copyright Page
Contents
Foreword
Acknowledgments
About the Authors
Introduction
1. Game-Changing Trends in Supply Chain Management
First Annual Report by the Supply Chain Management Faculty at the University of TennesseeIntroductionCustomer Service to Customer Relationship ManagementWhy Is This a Game-Changing Trend?Progress Made but More NeededMany Firms Still Operate With a Traditional Service MindsetFrom a High Level of Standard Service to Customized ServiceMultiple Supply Chain Configurations Are RequiredThe Fallacy of Being All Things to All CustomersChallenges of Prioritizing Service LevelsExampleAdversarial to Collaborative RelationshipsWhy Is This a Game-Changing Trend?Encouraging Evidence of CollaborationA Three-Part Best-Practice ModelSupply Chain Collaboration—Additional Key Success FactorsSummaryIncremental Change to a Transformational Agile StrategyWhy Is This a Game-Changing Trend?Most Firms Lack an Agile Transformational StrategyThree Activities Needed to Be More Adaptive and AgileThe Essence of Agile StrategiesAlertnessAccessibilityDecisivenessSwiftnessAgility in PracticeAn Agile Workforce Is CriticalSummaryFunctional Focus to Process Integration: Cross-Functional Integration—Purchasing Through LogisticsWhy Is This a Game-Changing Trend?Deep Cross-Functional Integration Is Still a Major ChallengeWhy Companies Need to ChangeThe Challenge: Business-Wide Cross-Functional IntegrationAn Unrecognized Problem: Purchasing and Logistics IntegrationThe Fallacy of Supply Chain Integration Between Purchasing and LogisticsStep-by-Step Process for Integrating Purchasing and Logistics: Eight StepsThe Benefits of Integrating Purchasing and LogisticsEnablers of Cross-Functional IntegrationSummaryAbsolute Value for the Firm to Relative Value for Customers—World-Class MetricsWhy Is This a Game-Changing Trend?Supplier and Customer-Segmented Metrics Can Be Powerful ToolsMandate for New MetricsCreate the Right Cross-Functional AccountabilityEstablish a Driver-Based Metrics FrameworkThe Perfect Order Metrics FrameworkSet Appropriate GoalsEnsure That Metrics Cannot Be Easily GamedExampleSummaryForecasting to Endcasting—Demand ManagementWhy Is This a Game-Changing Trend?Improvement, But Still Short of MaturityThe State of Forecasting TodayOffshoring and Long Lead Times Increase PriorityInternal Collaboration and S&OPForecasting Versus Endcasting/Demand ManagementExampleSummaryTraining to Knowledge-Based Learning—Talent ManagementWhy Is This a Game-Changing Trend?Education Is Being Focused on Broad Goals of the FirmThe Modern Supply Chain ExecutiveSupply Chain as Part of the Executive TeamThe Critical Competencies of Top Supply Chain TalentAcquire the Best TalentFrom Training to Knowledge-Based LearningSummaryVertical Integration to Virtual IntegrationWhy Is This a Game-Changing Trend?Leveraging the Expertise of Third-Party SuppliersThe Benefits of Virtual IntegrationSupply Chain Disruptions are CommonVirtual Integration of Goods: OutsourcingVirtual Integration of ServicesCurrent Trends and ImplicationsSummaryInformation Hoarding to Information Sharing and VisibilityWhy Is This a Game-Changing Trend?Moderate ProgressEnterprise SystemsHow Do We Move Forward From Here?The Supply Chain Network As a Social OrganismEmerging Issues in Information SharingSummaryManagerial Accounting to Value-Based Management—Using Supply Chain ExcellenceWhy Is This a Game-Changing Trend?Managing Overall Company Value With the Supply ChainDriving Shareholder Value With Your Supply ChainDriving Shareholder Value With Your Supply Chain by Creating Economic ProfitIncreased Economic Profit Means Increased Shareholder ValueSummaryChapter 1 Addendum: Game Changers Update—10 + 5 Trends for 2025Game-Changing Trend 1: Customer Service to Relationship Management to Intelligent Value Co-CreationGame-Changing Trend 2: Functional Focus to Process Focus to Systemic FocusGame-Changing Trend 3: Incremental Change to Transformational Agility to Prognostic AgilityGame-Changing Trend 4: Information Hoarding to Information Sharing to Information SynthesisGame-Changing Trend 5: Adversarial Relationships to Collaborative Relationships to Vested RelationshipsGame-Changing Trend 6: Demand Forecasting to Demand Endcasting to Demand ShapingGame-Changing Trend 7: Training to Knowledge-Based Development to Talent ManagementGame-Changing Trend 8: Vertical Integration to Virtual Integration to Flexible Network IntegrationGame-Changing Trend 9: Functional Measurement to Customer Service Measurement to Relevant Value MeasurementGame-Changing Trend 10: Managerial Accounting to Value-Based Management to Total Value OrientationThe “+5” Game-Changing TrendsGame-Changing Trend 11: TransformationGame-Changing Trend 12: “Dumb” Technology to “Smart” Technology to Autonetic TechnologyGame-Changing Trend 13: Local Optimization to Global Optimization to “Glocal” OptimizationGame-Changing Trend 14: Risk Agnostic to Risk Management to Risk PrognosisGame-Changing Trend 15: Untenability to Sustainability to ProstainabilitySummaryTransition: Game-Changing Trends in Supply Chain to Global Supply Chains
2. Global Supply Chains
The Fourth in the Game-Changers Series of University of Tennessee Supply Chain Management White PapersExecutive Summary: Best Practices for Managing Global Supply ChainsUsing the EPIC Framework to Evaluate Global RegionsSummary of Key Themes From the EPIC AssessmentBest PracticesSCND—Global Sourcing Analysis and Decision MakingBest Practices for Managing a Complex, Global Supply ChainSourcesIntroduction: Global Supply ChainBack to the FutureWhere It All started: The (Re)emerging Power of AsiaIt Is “All About” the Shifting Total Cost of Ownership (TCO)Execution Is More Important Than CostGlobal Supply Chains Present Risk for CompaniesWhat Does All of This Mean for Global Supply Chains?The Need for a Global Supply Chain Management StrategyEPIC Framework to Evaluate Global RegionsAssessing Supply Chain Readiness Across Regions of the GlobeHow the EPIC Framework WorksEconomyPoliticsInfrastructureCompetenceThe Regional AssessmentsEPIC Framework and the Supply Chain Network Design (SCND) ModelSummary of Key Themes From the EPIC AssessmentBest PracticesSCND—Global Sourcing Analysis and Decision Making1. Strategy drivenExamples2. ScaleExamples3. Analysis Mastery4. TCO/NPV BasedExamples5. Holistic Product DesignExamplesBest Practices for Managing a Complex, Global Supply Chain1. Global Sales & Operations PlanningExamples2. Process to Manage ComplexityExamples3. Supplier Partnerships (Materials, Equipment)Examples4. Talented, “On-the-Ground” TeamExamples5. Rapid Response (Supply Chain Visibility)Visibility of VisibilityControl TowersSummaryTransition: Global Supply Chains to Managing Risk in the Global Supply Chain

3. Managing Risk in the Global Supply Chain
A Report by the Supply Chain Management Faculty at the University of TennesseeExecutive SummaryRisk in the Global Supply Chain IntroductionRisk: A Daily Fact of LifeInsurance: A Surprising FindingThe Alarming State of Supply Chain Risk ManagementAn Up-to-Date Twist on Risk: The Survey Says . . .1. Documented Risk Management Processes2. Facility Loss3. Supplier Loss4. Supply Chain Risk Ratings5. Risk Mitigation StrategiesFailure Mode and Effect AnalysisBest Practice Case Studies in Supply Chain Risk ManagementIBMLockheed MartinThe Supply Chain Risk identification Structure (SCRIS)Risk Exposure IndexRecommendations to Manage Supply Chain RiskIdentify RisksThird-Party RiskOther Approaches to Identifying Supply Chain RiskPrioritize RisksExample One: Addressing Supply Chain Risk at a Food Manufacturer Using FMEAExample Two: Addressing Supply Chain Risk at a Durable Goods ManufacturerMitigate RisksUsing Insurance to Mitigate RiskSupply Chain Professionals May Not Understand Insurance ProductsSummaryTransition: Managing Risk in the Global Supply Chain to the ABCs of DCs—Distribution-Center Management: A Best Practices Overview
4. The ABCs of DCs—Distribution-Center Management: A Best Practices Overview
The Fifth in the Game Changers Series of University of Tennessee Supply Chain Management White PapersIntroductionReceiving, Put Away, and ReturnsReceivingPut AwayReturnsPicking/Order Fulfillment/ShippingProfiling/Slotting (Zoning or ABC Zoning)Picking SystemsVoice PickingPick-to-LightRadio FrequencyAutomated Picking (A-frame or Automated Storage and Retrieval Systems)Goods-to-Person Picking (KIVA)Robotics and AGVsManual/Paper-Based SystemsPostponement OperationsHow to Select the Right Picking SystemOmni-Channel PickingLean WarehousingKeep It Simple5STotal Employee InvolvementStandard Work and Making Problems VisibleManagement WalkaboutsVisual ManagementTotal Productive MaintenanceEliminate Before You AutomateValue Stream MappingOffice OperationsSix SigmaCross-DockingMetrics and Planning—Developing a DC Management Strategic PlanMetricsMake Sure Metrics Have a Logical FrameworkGoal Setting and the Importance of BenchmarkingThe Best Warehouse MetricsSafetyCustomer ServiceCostAsset ManagementPeople Development, Management, and MoraleWarehouse Information SystemsWarehouse Management System (WMS) FunctionalityGoods receiptsPut awayProfiling or slottingPickingShippingReal-time visibility into inventory and ordersLabor managementYard and dock managementCross-dockingInventory cycle countingIntegrated with enterprise resource planning systemReverse logisticsSmall parcel managementAutomationChoosing a Warehouse Management SystemChange ManagementLayout and Space OptimizationEliminate HoneycombingRacking and MezzaninesStacking Height and Product StackabilityEliminate Nondistribution FunctionsWarehouse Layout: Docks and AislesReceiving and ShippingNetwork OptimizationSafety and SecuritySafety Mindset/CultureSafety MetricsSafety ProcessesSecurityPeopleThird-Party Logistics OperatorsHourly AssociatesKaizenManagement PersonnelSustainabilitySummaryAbout the Global Supply Chain InstituteTransition: The ABCs of DCs—Distribution-Center Management: A Best Practices Overview to Bending the Chain—The Surprising Challenge of Integrating Purchasing and Logistics
5. Bending the Chain: The Surprising Challenge of Integrating Purchasing and Logistics
A Report by the Supply Chain Management Faculty at the University of TennesseeExecutive SummaryThe Surprising Challenge: Purchasing and Logistics IntegrationSupply and Demand DisconnectsSupply Side DisconnectsThe Surprising Gap Between Purchasing and LogisticsExampleThe Research: Linking Purchasing and Logistics Integration (PLi) to Improved Functional and Financial PerformanceMajor Finding 1: Purchasing and Logistics Frequently Are Found in a Broader Supply Chain or Operations Organization but Really Exist As Two Separate and Disconnected FunctionsMajor Finding 2: Both Purchasing and Logistics Are Well-Aligned Independently With Their Business Unit’s Strategy and Activities but Not Nearly As Well-Aligned With Each OtherMajor Finding 3: Despite Formal Organizational Links Between Purchasing and Logistics, Interaction Between the Functions Is Typically Informal and UnstructuredMajor Finding 4: Maintaining Open Lines of Communication Is the Most Widely Used Technique to Foster IntegrationBest PracticesBest Practice 1: Fully Integrated End-to-End Supply Chain Organization With Common MetricsExampleExamplesExamplesBest Practice 2: Talented supply chain organization that rewards people for in-depth mastery and end-to-end supply chain leadershipExamplesBest Practice 3: Purchasing and logistics network with an operating decision framework based on best overall total value of ownership (TVO = total cost of ownership plus level of customer creation)ExamplesBest Practice 4: Effective information systems and work processes that enable superior business results by providing multifunctional supply chain teams the proper tools and informationExamplesExamplesExampleSeven Actions a Supply Chain Leader Can Take TodayHow High Is Your PLi?Transition: Bending the Chain—The Surprising Challenge of Integrating Purchasing and Logistics to Supply Chain Talent—Our Most Important Resource
6. Supply Chain Talent—Our Most Important Resource
The Sixth in the Game-Changing Trends Series of University of Tennessee Supply Chain Management White PapersExecutive SummaryWhat Makes Supply Chain Talent Unique?What Is Included?Our Most Important ResourceIntroductionDeveloping a Talent Management StrategyTalent Management MythsThe Need for Ownership of the Talent StrategyTalent Strategy Must Support Organizational GoalsThe Need for Investment in TalentThink About Talent Like You Think About Supply Chain ManagementTalent Management Industry Research Results and RecommendationsAnalyzeFindRecruitDevelopRetainGlobal Supply Chain Institute Talent Management RecommendationsEight Talent Management Best PracticesBest Practices in Supply Chain Talent Management1. Clear definition of the “Who”Example2. Use of Mentors, Sponsors, and First Coaches3. Individual Skill and Development PlansExamples4. Internships/Co-OpsInternships and Co-Ops Assure Fit5. Top University PartnershipsExample6. Top-Talent SystemsExample7. Hire for Overall Supply Chain—Not for a Specific JobExample8. Active Diversity ProgramExampleFinal Thought on Best PracticesCase Studies in Hourly Supply Chain Talent ManagementCase Study 1: The Great Driver ShortageWhy the ShortageDemographicsCompetition from other industriesLifestyleWage ratesBig brotherStricter driver requirementsBest Practices for Retaining/Attracting DriversFindRecruitDevelopRetainRecommendation: Solving The Great Driver ShortageCase Study 2: Supply Chain Technician and Warehouse Personnel ChallengesSummarySupply Chain Talent Skill Matrix and Development Plan Tool
Conclusion
Index

Content preview from The Supply Chain Game Changers: Applications and Best Practices that are Shaping the Future of Supply Chain Management

4. The ABCs of DCs—Distribution-Center Management: A Best Practices Overview

The Fifth in the Game Changers Series of University of Tennessee Supply Chain Management White Papers

J. Paul Dittmann, Ph.D., Lloyd Rinehart, Ph.D.,Ted Stank, Ph.D., Chad Autry, Ph.D., Mike Burnette

Introduction

Logistics professionals who operate distribution centers (DCs) have a tough job. Management constantly challenges them to cut cost, which means doing more with less. While focused on that, they need to make sure that customer responsiveness does not suffer and even improves. Clearly, this calls for a highly advanced management skill set.

This chapter draws on data from three sources. The first is information gleaned from the supply chain audits done at the ...

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The Supply Chain Game Changers: Applications and Best Practices that are Shaping the Future of Supply Chain Management

by Theodore H. Stank, J. Paul Dittmann, Michael Burnette, Chad Autry

4. The ABCs of DCs—Distribution-Center Management: A Best Practices Overview