Front cover image for Supply chain management for dummies

Supply chain management for dummies

Daniel Stanton (Author)
Everyone can impact the supply chain Supply Chain Management For Dummies helps you connect the dots between things like purchasing, logistics, and operations to see how the big picture is affected by seemingly isolated inefficiencies. Your business is a system, made of many moving parts that must synchronize to most efficiently meet the needs of your customers—and your shareholders. Interruptions in one area ripple throughout the entire operation, disrupting the careful coordination that makes businesses successful; that's where supply chain management (SCM) comes in. SCM means different things to different people, and many different models exist to meet the needs of different industries. This book focuses on the broadly-applicable Supply Chain Operations Reference (SCOR) Model: Plan, Source, Make, Deliver, Return, and Enable, to describe the basic techniques and key concepts that keep businesses running smoothly. Whether you're in sales, HR, or product development, the decisions you make every day can impact the supply chain. This book shows you how to factor broader impact into your decision making process based on your place in the system. Improve processes by determining your metrics Choose the right software and implement appropriate automation Evaluate and mitigate risks at all steps in the supply chain Help your business function as a system to more effectively meet customer needs We tend to think of the supply chain as suppliers, logistics, and warehousing—but it's so much more than that. Every single person in your organization, from the mailroom to the C-suite, can work to enhance or hinder the flow. Supply Chain Management For Dummies shows you what you need to know to make sure your impact leads to positive outcomes
Print Book, English, 2018
For Dummies, a Wiley brand, Hoboken, NJ, 2018
xiv, 332 pages : illustrations ; 24 cm.
9781119410195, 1119410193
Introduction 1About This Book 1Foolish Assumptions 1Icons Used in This Book 2Where to Go from Here 2Part 1: Getting Started with Supply Chain Management 5Chapter 1: The Growing Demand for Supply Chain Management 7Defining Supply Chain Management 7Exploring Complex Business Challenges 9Operating Under Supply Chain Management Principles 11Customer focus 12Systems thinking 12Bimodal innovation 12Collaboration 13Flexibility 13Technology 14Global perspective 14Risk management 14Visibility 15Value creation 15Introducing Five Supply Chain Tasks 15Implementing the New Supply Chain Agenda 16Placing the right people in the right jobs 17Putting the right technology in place 17Focusing on internal collaboration 17Directing external collaboration 18Applying project management 18Chapter 2: Understanding Supply Chains from Different Perspectives 19Managing Supply Chain Flows 19Synchronizing Supply Chain Functions 20Purchasing 21Logistics 22Operations 23Connecting Supply Chain Communities 24Designing Supply Chain Systems 27Measuring Supply Chain Processes 29Chapter 3: Digging into Your Supply Chain 31Prioritizing Supply Chain Goals 31Step 1: Understand what customers value 32Step 2: Recognize your competitors 33Step 3: Understand your products or services 33Looking at Cost Drivers 35Procurement costs 35Transportation costs 36Inventory costs 36Quality costs 36Dealing with Trade-Offs 37Sales versus operations 38Customer versus supplier 40Engineering versus procurement 40Inventory versus customer service 41Inventory versus downtime 43Procurement versus logistics 44Chapter 4: Optimizing Your Supply Chain 47Designing Your Network 47Improving and Innovating Processes 49Lean 49Six Sigma 51Theory of Constraints 53Structuring Supply Chain Projects 55Managing Cross-Functional Project Teams 56Creating Cross-Functional Project Plans 57Creating a RACI Matrix 59Designing Project Scorecards 61Using the DIRECT Model 62Part 2: Managing Supply Chain Processes 65Chapter 5: Connecting Supply Chain Processes 67Understanding Supply Chain Processes 67Introducing the SCOR Model 68Establishing Process Metrics 72Building the Right Supply Chain 73Chapter 6: Planning the Supply Chain 77Balancing Supply and Demand 78Aligning Resources with Requirements 79Analyzing Your Customers 81Planning Your Products 82Planning Your Production Systems 83Planning Your Delivery Systems 84Planning for Returns 85Chapter 7: Sourcing, Purchasing, and Procurement 87Understanding Strategic Sourcing 88Segmenting Your Supply Chain 88Managing Life Cycle Costs 90Minimizing input costs 91Sourcing your inputs 92Forecasting your demand 94Insourcing, outsourcing, and offshoring 94Managing Supplier Relationships 95Establishing Supply Contracts 97Selecting contract terms 97Selecting payment terms 98Mitigating Supplier Risks 100Establishing Purchasing Ethics 104Chapter 8: Making Your Products or Services 107Planning and Scheduling Production 108Planning production 108Considering capacity 112Identifying Manufacturing Process Types 115Operating a discrete manufacturing process 115Operating a continuous manufacturing process 117Choosing Your Production Environment 118Make-to-stock 119Make-to-order 119Engineer-to-order 120Implementing Quality Control and Quality Assurance 121Considering the risks of poor quality 122Controlling quality and variability 122Reducing Manufacturing Waste 124Chapter 9: Delivering Your Products or Services 127Understanding Modes of Transportation 128Pipeline 129Ocean 129Rail 129Truck 131Parcel 132Air 133Selecting Modes of Transportation 134Managing Warehousing and Inventory 135Receiving 137Put-away 137Inventory counts 138Picking 138Packing 139Shipping 139Yard management 140Over, short, and damaged 141Establishing Inventory Ordering Policies 141Selecting Material Handling Equipment 143Managing and Filling Orders 145Leveraging Third-Party Logistics 147Chapter 10: Managing Product Returns and Reverse Supply Chains 149Growing Revenues with Easy Returns 150Processing Returns of New or Excess Products 151Minor wear and tear 151Damage or tampering 152Substitution 152Processing Returns of Used or Defective Products 152Managing Closed-Loop Supply Chains 153Handling Unauthorized Returns and Fraudulent Products 154Managing Trade-Ins 155Chapter 11: Enabling Your Supply Chain 157Managing Your Business Rules 157Managing Supply Chain Performance 158Setting performance goals 159Align your metrics with your customers 159Share Your Metrics with Your Suppliers 160Managing Your Assets 160Labeling Your Products 161Addressing Supply Chain Security Issues 163Ensuring physical security 163Dealing with counterfeiting 163Tackling regulatory compliance 164Addressing unique product requirements 165Protecting supply chain information 165Leveraging Information Technology 166Leveraging Human Resources 167Mastering Project Management 169Part 3: Using Technology to Manage Supply Chains 173Chapter 12: Managing Supply Chain Software 175Understanding How Processes Evolve 176Using Transportation Management Systems 178Using Warehouse Management and Execution Systems 180Using Demand Planning Systems 182Using Material Requirements Planning Systems 183Using Distribution Requirements Planning Systems 185Using Labor Management Systems 186Using Customer Relationship Management Systems 187Using Supplier Relationship Management Systems 188Using Enterprise Resources Planning Systems 189Using Supply Chain Modeling Software 190Using Business Intelligence Software 192Leveraging Software Analysts 194Anticipating the Future of Supply Chain Software 195Chapter 13: Integrating Advanced Manufacturing into Your Supply Chain 197Avoiding Obsolescence 198Capitalizing on Advanced Manufacturing 199Automated manufacturing 199Computer-aided design 2003D printing 200Automated Mobile Robots 203Unmanned and Autonomous Vehicles 204Chapter 14: Managing Digital Supply Chains 207Digitalizing Products and Services 208Integrating Planning, Execution, and Visibility 209Creating Customer Centricity 210Sharing with Blockchains 211Harnessing the Internet of Things, Big Data, and the Cloud 212Employing Artificial Intelligence 214Retooling for Omnichannel 214Part 4: Driving Value with Supply Chain Management 217Chapter 15: Transforming Your Supply Chain 219Improve Transparency and Visibility 219Deploying Demand Shaping 220Performing Postponement 221Renewing Regional Sourcing 222Reducing Stock-Keeping Units 223Optimizing Inventory 224Incorporating Vendor-Managed Inventory 226Adjusting Payment Terms 227Using Supply Chain Finance 228Control the Bullwhip Effect 229Share information with your partners 229Reduce and align lot sizes 230Manage promotions 230Starting with Small Improvements 231Creating Sandboxes 231Chapter 16: Adopting Supply Chain Metrics 233Understanding Metrics 233Identifying Performance Attributes 235Understanding SCOR Metrics 236Reliability 236Responsiveness 237Agility 237Cost 238Asset management efficiency 238Optimizing Operational Metrics 238Supplier metrics 239Procure to pay metrics 239Customer service metrics 239Capacity, throughput, and yield metrics 240Formalizing Financial Metrics 241Accounts payable metrics 241Total spend metrics 241Savings metrics 242Perfecting People Metrics 242Engagement metrics 242Productivity and efficiency metrics 243Turnover metrics 243Safety metrics 244Solidifying Sustainability Metrics 245Consumption metrics 245Waste metrics 246Chapter 17: Managing Supply Chain Risks 247Challenging Assumptions About the Future 247Building Supply Chain Resilience 249Identifying Risks 250Classifying Risks 252Scoring Risks 253Managing Risks 255Accept the risk 255Transfer the risk 256Avoid the risk 256Mitigate the risk 256Chapter 18: Building Supply Chain Analytics 259The Rise of Big Data, Sensors, and the Internet of Things 260Outline of an Analytics Plan 261Define your theory about the problem or opportunity 262Acquire the data 263Clean, structure, and filter the data 263Query the data and test your theory 264Look for correlations and patterns 264Correlation, Causation, and Interpolation 265Modeling, Simulation, and Optimization 268Simulation 269Optimization 269Scenario Planning 270Dashboards and Control Towers 272Part 5: Building Your Supply Chain Management Career 275Chapter 19: Selecting a Supply Chain Career 277Doing Your Homework 277Examining Supply Chain Career Categories 278Associates 281Technicians 283Planners and Analysts 284Engineers 286Supervisors 287Managers 288Sales Representatives 290Information Technology Managers 290Project Managers 292Journalists 292Executives 292Educators 293Humanitarian Supply Chain Professionals 294Chapter 20: Pursuing Supply Chain Education 295Earning Certificates and Certifications 295APICS 296Project Management Institute 299Council of Supply Chain Management Professsionals 300Institute for Supply Management 301International certifications 302Earning Degrees and Diplomas 303Undergraduate degrees 304Graduate degrees 304Exploring Online Education Options 304Traditional online programs 305MITx MicroMasters in Supply Chain Management 305Coursera 305LinkedIn Learning 306YouTube 306Playing Supply Chain Games 306The Beer Game 307The Fresh Connection 307Part 6: The Part of Tens 309Chapter 21: Ten Questions to Ask About Your Supply Chain 311Who Are Your Key Customers? 311What Do Your Key Customers Value? 312How Could Your Supply Chain Create More Value? 312How Do You Define Supply Chain Management? 313What Information Do You Share with Suppliers? 313How Do You Compare with Competitors? 314What Changes Could Increase Revenue? 315What Changes Could Lower Costs? 315What Affects Your Supply Chain Now? 316What Will Affect Your Supply Chain in the Future? 317Index 319