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Efficient planning and superior execution against clear objectives is the way companies operate best. For many companies, the planning process is carefully orchestrated, objectives are set, budgets are negotiated, resources are allocated, and then it's up to the organization to execute. But what happens when the unexpected occurs? Say, an event occurs that throws the status quo into turmoil. What if your business declines by 40% in 1 month, what do you do? Conversely, what if your demand spikes by 50% in just a few months, what then? Suppose a natural disaster happens, or a new technology creates a significant, but unplanned opportunity? We call these events 'stretch opportunities'. This book will focus on strategic thinking and tactical examples of how best to prepare for such events. We will outline common themes across all such challenges. We will introduce three key management concepts: Flexibility, Agility and Real Options. We also include a specific chapter on how to structure supply chains to capitalize on stretch opportunities and we provide specific tactical frameworks to build in agility, flexibility and real options into a supply chain. We will end with a checklist that managers can use to ensure that the right questions are asked in developing supply chains so that the ability to "surge" at profitable opportunities is nourished.
Efficient planning and superior execution against clear objectives is the way companies operate best. For many companies, the planning process is carefully orchestrated, objectives are set, budgets are negotiated, resources are allocated, and then it's up to the organization to execute. But what happens when the unexpected occurs? Say, an event occurs that throws the status quo into turmoil. What if your business declines by 40% in 1 month, what do you do? Conversely, what if your demand spikes by 50% in just a few months, what then? Suppose a natural disaster happens, or a new technology creates a significant, but unplanned opportunity? We call these events 'stretch opportunities'. This book will focus on strategic thinking and tactical examples of how best to prepare for such events. We will outline common themes across all such challenges. We will introduce three key management concepts: Flexibility, Agility and Real Options. We also include a specific chapter on how to structure supply chains to capitalize on stretch opportunities and we provide specific tactical frameworks to build in agility, flexibility and real options into a supply chain. We will end with a checklist that managers can use to ensure that the right questions are asked in developing supply chains so that the ability to "surge" at profitable opportunities is nourished.
Thanks to the development of internet- and network-based information and communication systems, virtually every product and service produced today has a supply chain that extends around the globe. For the last twenty-five years, companies such as Wal-Mart, Dell, and Toyota have enjoyed strong competitive advantages in their respective markets as a result of their world-class supply chains. As the supply chain increasingly lengthens, managers at all levels of the organization must understand the unique challenges of working with suppliers and customers located around the world--and the opportunities that can build new competitive advantages. This book will introduce readers at all levels of experience to cutting-edge methods and strategies for global sourcing and global distribution through the discussion of current research and case study vignettes from companies in every corner of the world.
While managers typically view business through the lens of a single firm, this book challenges readers to take a broader view of their enterprises and opportunities. Here, more than 50 leading thinkers in business and many other disciplines take on the challenge of understanding, managing, and leveraging networks.
One of the many outcomes resulting from the explosion of international trade is access to lower cost production opportunities through outsourcing. This phenomenon has increased the importance of supply chains, the information technology needed to coordinate them and the need for this relatively complex enterprise to be exceptionally well-managed. There are obviously many cost benefits to be had from maintaining a strong and far-reaching supply chain. However, this opportunity to lower costs entails significant risks, such as tsunamis, earthquakes, political unrest, and economic turbulence. This book will introduce concepts and examples of risk in supply chain management, followed by an identification and discussion of an array of quantitative tools (selection methods, risk simulation modeling, and business scorecard analysis) to help manage these risks. Many books are appearing that address various aspects of supply chain risks. No other book known to the author addresses this set of modeling tools as a means of managing this risk.
In the past, vertical integration was a way to gain efficiency in supply chains. Today, vertical integration doesn't work as well because specialty organizations have developed to perform specific tasks very efficiently. Efficiency through supply chains is achieved today by linking specialists throughout the vertical business hierarchy. This sort of linkage is possible because of the technology that has developed which facilitates it, making today supply chains both faster and more cost effective. Supply Chain Information Technology surveys the different systems that are used by businesses to achieve these efficiencies. The target market for this book is practitioners in the supply chain management field, one of the fastest growing fields in our economy. The rapid growth in computer technology provides supply chains with valuable tools to better coordinate and control their operations. This book describes how these systems provide supply chains with information system support. The design of these systems and the tasks they perform are demonstrated with the help of analytic techniques and models that are used in the book.
Every company must continually wrestle with the problem of deciding the right quantity and mix of products or services that it should produce as well as when and where to produce them. The problem is challenging because the decision must be made with uncertain and conflicting information about future demand, available production capacity, and sources of supply. The decision is in fact a highly complex balancing act, involving tradeoffs along many dimensions - for example, inventory targets vs. customer service levels, older products vs. newer ones, direct customers vs. channel partners - and requiring the compromise of constituents - sales, marketing, operations, procurement, product development, finance, as well as suppliers and customers - with varied objectives. The ability of a company to nimbly navigate this decision process without giving too much influence to any of the parties involved largely determines how well the company can respond to changing market conditions and ultimately whether the company will continue to thrive. This book focuses on the complex challenges of supply chain planning - the set of business processes that companies use for planning to meet future demand. Supply chain planning comprises a variety of planning processes within an organization: demand planning, sales & operations planning, inventory planning, promotion planning, supply planning, production planning, distribution planning, and capacity planning. Of course, not all companies engage in all of these planning activities and they may refer to these activities by other names but they all struggle with the on-going effort of matching demand with supply. Many textbooks address supply chain planning problems and present mathematical tools and methods for solving certain classes of problems. This book is intended to complement these texts by focusing not on the mathematical models but on the problems that arise in practice that either these models do not adequately address or that make applying the models difficult or impossible. The book is not intended to provide pat solutions to these problems, but more to highlight the complexities and subtleties involved and describe ways to overcome practical issues that have worked for some companies.
This text offers a practical approach for understanding the US Army's extremely complex global logistics system, widely acknowledged as one of the largest in the world. The focus is on inventory management policy where prescriptions are illuminated through the prism of an enterprise supply chain analysis. Although Army aviation logistics examples are emphasized throughout, the fundamental issues and potential solutions are broadly applicable to other large-scale military and industrial supply chains as well. Following a summary of recent trends for background and context, a multi-stage conceptual model of the logistics structure is presented to segment and guide the effort. This multi-stage model is used to systematically analyze major organizational components of the supply chain, diagnose structural disorders and prescribe solutions. Integration challenges are addressed using cost-benefit perspectives which incorporate supply chain objectives of efficiency, resilience, and effectiveness. The design and evaluation section proposes an "analytical architecture" consisting of four complementary modeling approaches, collectively referred to as "dynamic strategic logistics planning", to enable a coordinated, enterprise approach for Army Logistics Transformation. An organizational construct is presented for an "engine for innovation" to accelerate and sustain continual improvement for Army logistics and supply chain management - a "Center for Innovation in Logistics Systems". Finally, strategic management challenges associated with enterprise integration and transformational change are addressed: organizational design; management information and decision support systems; strategic alignment for a learning organization; and workforce considerations including human capital investment needs. The text concludes with a relevant historical vignette and closes with a summary of expected benefits.
Intended for an audience of graduate students, executive MBA students, and mid-to upper level government and corporate managers, Design, Analysis and Optimization of Supply Chains: A System Dynamic Approach examines the complexity of the types of organizations that comprise a modern supply chain, the problems that arise as a result of this complexity, and the solutions and analytical approaches available to managers that can help resolve these real world problems and dilemmas. The modern enterprise, be it a large corporation or a government agency, has two key dimensions of complexity: static and dynamic. The static complexity refers to the remarkable number of companies and agencies that enable delivery of the product or service. A static "snapshot" of this end-to-end enterprise would reveal hundreds if not thousands of companies involved in the supply network and many additional firms involved in the distribution and delivery to customers. Planning, communication, coordination and execution of this large system network is fundamentally challenging just because of the sheer size. This large, extended network represents the static complexity. The dynamic complexity arises from the difficulty of managing the performance of this extended enterprise over time. This requires having the appropriate metrics to track performance over time, the management skills to develop strategies, the ability to collect and monitor the correct data for true visibility, and the recognition and understanding of the long lags between actions and results. Design, Analysis and Optimization of Supply Chains: A System Dynamic Approach incorporates real-world examples and cases, representing actual complex enterprise systems including firms involved and with long lead times, to illustrate the multi-faceted activities occurring within a modern supply chain and the challenges they pose to managers. Simulation and optimization techniques are introduced and used to develop strategies for improved performance.
: Information is power in supply chain operations, negotiations, continuous improvement programs, and process improvement, and indeed in all aspects of managing an operation. Accurate and timely information can result in better decisions that translate into improvement of bottom line results. The development and effective use of cost modeling as a method to understand the cost of products, services, and processes can help drive improvements in the quality and timeliness of decision making. In the supply chain community an understanding of the actual cost structures of products and services, whether with new or non-partner suppliers, can facilitate fact-based discussions which are more likely to result in agreements that are competitively priced and with fair margins. Further, accurate cost models which are cooperatively developed between supply chain partners can form the basis for joint efforts to reduce non-value-added costs and provide additional focus towards operational improvement. While many organizations feel confident they have an understanding of the cost structure for products and services produced internally, cost modeling often uncovers areas where significant cost improvement can be obtained. Cost of quality is a particular type of internal cost model that analyzes the true costs associated with the production of less than perfect products and services. The development of a cost of quality model can provide insight into how products or services of higher quality can be produced at lower cost. This book provides the business student or professional a concise guide to the creation and effective use of both internal and external cost models. Development of internal cost models is discussed with illustrations showing how they can be deployed to assist in new product development, pricing decisions, make-or-buy decisions and the identification of opportunities for internal process improvement projects. The creation and use of external cost models are discussed providing insight into how their use can drive collaborative improvement efforts among supply chain partners, better prepare for price negotiations, and keep negotiations focused on facts rather than emotions--all while allowing for future discussions with preferred suppliers to focus on more strategic and operational improvement initiatives, and less on pricing. A number of detailed cost model examples are provided to educate on both how cost models are constructed, and to demonstrate how they have been effectively deployed