Preface
Writing this book is primarily to provide an up-to-date text at a reasonable cost. The scope of supply chain and logistics has continued to grow with a rapid speed, which is reflected in the content of this book. This book has included core aspects of supply chain and logistics philosophy and practice.
Besides, it is necessary to note that we have covered the general principles of supply chain and logistics that can be applied in any country of the world. Simply, for some aspects, there are differences that are difficult to generalize. Under this situation, we have tended to use the European approach or model, but we have also added some international material and examples from China, Pakistan, India and the United States. Within the scope of this book, it is impractical to include all issues in detail from a global perspective.
Undeniably, the logistics industry continues to change radically and to grow with a rapid speed. The quality of supply chain and logistics managers and personnel has been also improved with the growth in scope that a job in supply chain and logistics entails. We believe that this book will help significantly in the quest of supply chain and logistics to reduce cost and improve service, as well as to keep up-to-date the different facets of supply chain and logistics. In addition, this book will help candidates who are undertaking examinations for the many universities and professional institutes and bachelor and master students who are studying for degrees in supply chain management.
This book is divided into 13 chapters, each covering a key subject area in supply chain and logistics:
1. Introduction to supply chain management
2. Key issues in logistics and supply chain
3. Global sourcing
4. Warehousing and storage equipment
5. Inventory management
6. Warehouse design and management
7. Domestic and global logistics
8. Procurement
9. Performance measurement and evaluation
10. Environmental and ethical issues in SCM
11. IT in supply chain management
12. Future trend of supply chain
13. Case studies
Chapter 1: In the first chapter, an introduction to the subject is provided, and some definitions are given. This chapter covers the following topics:
• Definitions of supply chain management
• Value chain and supply chain
• A generic view of supply chain
• The umbrella of supply chain
• Why vertical integration failed
• What are the bullwhip effect and snowball effect?
• Latest trend in supply chain management
Chapter 2: The second chapter includes the following topics:
• SCM issues and suggested problem-solving approaches
• Network configuration and competition
• Information sharing
• Developing collaborative planning activities
• Key issues and challenges for logistics
Chapter 3: The third chapter discusses the following topics:
• Differences between international purchasing and global sourcing
• Supplier selection issues
• Organizational issues
• Supplier selection and evaluation process
• Key supplier evaluation criteria
• Developing from international purchasing to global sourcing
• Global sourcing success elements
• Future trend of global sourcing
Chapter 4: The fourth chapter discusses the following topics:
• The role of warehouses
• Types of distribution centre and warehouse
• Operations of warehouses
• Objectives of good warehouse design and management
• Palletized storage
Chapter 5: The fifth chapter discusses the following topics:
• Independent and dependent demand
• Tools of inventory management
• The basic types of inventories
• ABC inventory control system
• Inventory models
• The continuous review system and the periodic review system
Chapter 6: The sixth chapter includes the following topics:
• Warehouse design procedure
• Prepare site layouts
• Warehouse management and information
• Data transmission and capture
Chapter 7: The seventh chapter includes the following topics:
• Objective of transportation
• Legal forms of transportation
• Different modes of transportation
• Transportation regulation and deregulation
• Global logistics intermediaries
• Environmental sustainability
• The impact of reverse logistics
Chapter 8: The eighth chapter discusses the following topics:
• Importance of procurement
• Goal of procurement
• Choosing and monitoring supplier performance
• Procurement cycle
• Types of purchase
Chapter 9: The ninth chapter is all about performance measurement and evaluation
in supply chain management. This chapter broadly covers the following
topics:
• Why measurement performance?
• Problems with supply chain measurement and evaluation
• Procurement and supply chain performance measurement classifications
• Developing a system of performance measurement and evaluation
• Benchmarking of performance
• Balanced scorecard for supply and purchasing
Chapter 10: The tenth chapter discusses the following topics:
• Why should purchasing be concerned?
• Green, sustainable and environmental soundness
• The triple bottom line
• Developing policy on environmental soundness
• The hierarchy of waste
• The concept of product stewardship
• The development of Kraljic’s model
• Senior management commitment
Chapter 11: The 11th chapter covers the following:
• Basic communication, e.g. EDI and barcodes
• Software use in supply chain, e.g. WMS
• Inventory and transport management systems
• Integrating supply chain IT
• Implementation of DSS and ERP
Chapter 12: The 12th chapter discusses the following topics:
• Emerging mega-trends
• Shifting centres of gravity
• The multichannel revolution
• Structural flexibility
• Trends of future SCM
Chapter 13: The 13th chapter covers the following case studies:
• Case 1 The Global Sourcing Wire Harness Decision
• Case 2 Negotiation-Porto
• Case 3 Purchasing Ethics
• Case 4 Insourcing/Outsourcing: the FlexCon Piston Decision