Logistics Management & Strategy, 5th edition
Competing Through the Supply Chain

Book Title

By: Alan Harrison, et al.
October 2014
Pearson Education
Distributed by Trans-Atlantic Publications Inc.
ISBN: 9781292004150
427 Pages
$117.50 Paper Original


Description:

A concise, applied and strategic introduction to the subject of logistics and supply chain management, perfect for modern managers and students of logistics and supply chain management.

Logistics and supply chain management continue to transform the competitive landscape and have become one of today’s key business issues. This fifth edition of Logistics Management and Strategy continues to take a practical, integrated and international approach to logistics, and includes the very latest research to reflect the innovative and exciting developments in this subject area.

A clear framework guides the reader through the four parts of the book, covering;

  • an introduction to logistics and its contribution to competitiveness and value creation,
  • leveraging logistics operations within the context of the customer
  • supplier partnerships, interfaces and the challenges of integration
  • leading-edge thinking in logistics and the future challenges ahead

This new edition contains;

· 15+ new cases (including Heineken, Unilever and Johnson and Johnson)
- coverage of disaster logistics and Corporate Social Responsibility from the supply chain perspective
- discussion of global governance of the supply chain
- even more coverage on value and logistics costs and segmented supply chain strategy, equipping the reader with the latest thinking

Contents:

Foreword xiii

Preface xv

Authors’ acknowledgements xvii

Publisher’s acknowledgements xix

How to use this book xxi

Plan of the book xxiii

Part One COMPETING THROUGH LOGISTICS

1 Logistics and the supply chain 3

Introduction 3

1.1 Logistics and the supply chain 4

1.1.1 Definitions and concepts 6

1.1.2 Supply chain: structure and tiering 8

1.2 Material flow and information flow 12

1.2.1 Material flow 12

1.2.2 Information flow 15

1.3 Competing through logistics 16

1.3.1 Hard objectives 17

1.3.2 Supportive capabilities 19

1.3.3 Soft objectives 25

1.3.4 Order winners and qualifiers 26

1.4 Logistics strategy 27

1.4.1 Defining ‘strategy’ 28

1.4.2 Aligning strategies 29

1.4.3 Differentiating strategies 30

1.4.4 Trade-offs in logistics 31

Summary 32

Discussion questions 33

References 33

Suggested further reading 34

2 Putting the end-customer first 35

Introduction 35

2.1 The marketing perspective 36

2.1.1 Rising customer expectations 37

2.1.2 The information revolution 37

2.2 Segmentation 38

2.3 Demand profiling 46

2.4 Quality of service 50

2.4.1 Customer loyalty 51

2.4.2 Value disciplines 53

2.4.3 Relationship marketing and customer relationship management (CRM) 53

2.4.4 Measuring service quality 56

2.5 Setting priorities for logistics strategy 56

2.5.1 Step 1: Diagnose current approach to market segmentation 58

2.5.2 Step 2a: Understand buying behaviour 59

2.5.3 Step 2b: Customer value analysis 60

2.5.4 Step 3: Measure logistics strategy drivers 60

2.5.5 Step 4: Specify future approach to market segmentation 63

Summary 68

Discussion questions 69

References 70

Suggested further reading 71

3 Value and logistics costs 73

Introduction 73

3.1 Where does value come from? 74

3.1.1 Return on investment (ROI) 75

3.1.2 Financial ratios and ROI drivers 77

3.2 How can logistics costs be represented? 79

3.2.1 Fixed/variable 81

3.2.2 Direct/indirect 85

3.2.3 Engineered/discretionary 87

3.3 Activity-based costing (ABC) 89

3.3.1 ABC example 91

3.3.2 Cost–time profile (CTP) 92

3.3.3 Cost-to-serve (CTS) 94

3.4 A balanced measurement portfolio 95

3.4.1 Balanced measures 96

3.4.2 Supply chain management and the balanced scorecard 97

3.4.3 Supply chain financial model 99

3.5 Supply chain operations reference model (SCOR) 101

Summary 105

Discussion questions 105

References 106

Suggested further reading 106

Part Two LEVERAGING LOGISTICS OPERATIONS

4 Managing logistics internationally 109

Introduction 109

4.1 Drivers and logistics implications of internationalisation 111

4.1.1 Logistical implications of internationalisation 114

4.1.2 Time-to-market 115

4.1.3 Global consolidation 116

4.1.4 Risk in international logistics 119

4.2 The tendency towards internationalisation 120

4.2.1 Focused factories: from geographical to product segmentation 120

4.2.2 Centralised inventories 121

4.3 The challenges of international logistics and location 124

4.3.1 Extended lead time of supply 125

4.3.2 Extended and unreliable transit times 125

4.3.3 Multiple consolidation and break points 125

4.3.4 Multiple freight modes and cost options 126

4.3.5 Price and currency fluctuations 126

4.3.6 Location analysis 128

4.4 Organising for international logistics 130

4.4.1 Layering and tiering 130

4.4.2 The evolving role of individual plants 131

4.4.3 Reconfiguration processes 132

4.5 Reverse logistics 141

4.6 Managing for risk readiness 143

4.6.1 Immediate risk readiness 143

4.6.2 Structural risk readiness 144

4.7 Corporate social responsibility in the supply chain 145

Summary 150

Discussion questions 150

References 151

Suggested further reading 151

5 Managing the lead-time frontier 153

Introduction 153

5.1 The role of time in competitive advantage 154

5.1.1 Time-based competition: definition and concepts 154

5.1.2 Variety and complexity 155

5.1.3 Time-based initiatives 156

5.1.4 Time-based opportunities to add value 157

5.1.5 Time-based opportunities to reduce cost 159

5.1.6 Limitations to time-based approaches 161

5.2 P:D ratios and differences 162

5.2.1 Using time as a performance measure 162

5.2.2 Using time to measure supply pipeline performance 163

5.2.3 Consequences when P-time is greater than D-time 165

5.3 Time-based process mapping 168

5.3.1 Stage 1: Create a task force 169

5.3.2 Stage 2: Select the process to map 169

5.3.3 Stage 3: Collect data 170

5.3.4 Stage 4: Flow chart the process 170

5.3.5 Stage 5: Distinguish between value-adding 
and non-value-adding time 170

5.3.6 Stage 6: Construct the time-based process map 171

5.3.7 Stage 7: Solution generation 171

5.4 Managing timeliness in the logistics pipeline 176

5.4.1 Strategies to cope when P-time is greater than D-time 177

5.4.2 Practices to cope when P-time is greater than D-time 178

5.5 A method for implementing time-based practices 179

5.5.1 Step 1: Understand your need to change 179

5.5.2 Step 2: Understand your processes 180

5.5.3 Step 3: Identify unnecessary process steps and large amounts of wasted time 181

5.5.4 Step 4: Understand the causes of waste 181

5.5.5 Step 5: Change the process 181

5.5.6 Step 6: Review changes 181

5.5.7 Results 182

5.6 When, where and how? 183

Summary 183

Discussion questions 184

References 184

Suggested further reading 184

6 Supply chain planning and control 185

Introduction 185

6.1 The supply chain ‘game plan’ 187

6.1.1 Planning and control within manufacturing 187

6.1.2 Managing inventory in the supply chain 193

6.1.3 Planning and control in retailing 198

6.1.4 Inter-firm planning and control 201

6.2 Overcoming poor coordination in retail supply chains 203

6.2.1 Efficient consumer response (ECR) 204

6.2.2 Collaborative planning, forecasting and replenishment (CPFR) 210

6.2.3 Vendor-managed inventory (VMI) 214

6.2.4 Quick response (QR) 217

Summary 218

Discussion questions 219

References 219

Suggested further reading 220

7 Just-in-time and the agile supply chain 221

Introduction 221

7.1 Just-in-time and lean thinking 223

7.1.1 The just-in-time system 224

7.1.2 The seven wastes 228

7.1.3 JIT and material requirements planning 229

7.1.4 Lean thinking 232

7.1.5 Application of lean thinking to business processes 234

7.1.6 Role of lean practices 235

7.2 The concept of agility 236

7.2.1 Classifying operating environments 241

7.2.2 Preconditions for successful agile practice 242

7.2.3 Developing measures that put the end-customer first to improve market sensitivity 246

7.2.4 Shared goals to improve virtual integration 247

7.2.5 ‑Boundary spanning S&OP process to improve process integration 248

Summary 249

Discussion questions 250

References 251

Suggested further reading 252

Part Three WORKING TOGETHER

8 Integrating the supply chain 255

Introduction 255

8.1 Integration in the supply chain 257

8.1.1 Internal integration: function to function 258

8.1.2 Inter-company integration: a manual approach 259

8.1.3 Electronic integration 260

8.2 Choosing the right supply relationships 264

8.3 Partnerships in the supply chain 270

8.3.1 Economic justification for partnerships 271

8.3.2 Advantages of partnerships 271

8.3.3 Disadvantages of partnerships 271

8.4 Supply base rationalisation 272

8.4.1 Supplier management 272

8.4.2 Lead suppliers 272

8.5 Supplier networks 273

8.5.1 Supplier associations 273

8.5.2 Japanese keiretsu 276

8.5.3 Italian districts 278

8.5.4 Chinese industrial areas 280

8.6 Supplier development 284

8.6.1 Integrated processes 284

8.6.2 Synchronous production 285

8.7 Implementing strategic partnerships 285

8.8 Managing supply chain relationships 290

8.8.1 Creating closer relationships 290

8.8.2 Factors in forming supply chain relationships 291

Summary 292

Discussion questions 294

References 295

Suggested further reading 297

9 Sourcing and supply management 299

Introduction 299

9.1 What does procurement do? 301

9.1.1 Drivers of procurement value 302

9.2 Rationalising the supply base 314

9.3 Segmenting the supply base 316

9.3.1 Preferred suppliers 319

9.3.2 Strategic relationships 320

9.3.3 Establishing policies per supplier segment 320

9.3.4 Vendor rating 321

9.3.5 Executive ownership of supply relationships 322

9.3.6 Migrating towards customer of choice status 324

9.4 Procurement technology 326

9.5 Markers of boardroom value 326

9.6 What does top procurement talent look like? 327

Summary 328

Discussion questions 329

References 329

Suggested further reading 330

Part Four CHANGING THE FUTURE

10 Logistics future challenges and opportunities 333

Introduction 333

10.1 Changing economics? 334

10.2 Internal alignment 336

10.3 Selecting collaborative opportunities upstream and downstream 340

10.4 Managing with cost-to-serve to support growth and profitability 343

10.5 The supply chain manager of the future 345

10.6 Changing chains 347

Summary 349

Discussion questions 350

References 350

Suggested further reading 350

Index 351