Supply Chain Management For Dummies

Supply Chain Management For Dummies
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Increase your knowledge of supply chain management and leverage it properly for your business   If you own or make decisions for a business, you need to master the critical concept of supply chain management. Supply Chain Management For Dummies, 2nd Edition guides you to an understanding of what a supply chain is and how to leverage this system effectively across your business, no matter its size or industry. The book helps you learn about the areas of business that make up a supply chain, from procurement to operations to distribution. And it explains the importance of supporting functions like sales, information technology, and human resources. You’ll be prepared to align the parts of this system to meet the needs of customers, suppliers, and shareholders. By viewing the company as a supply chain, you’ll be able to make decisions based on how they will affect every part of the chain. To help you fully understand supply chains, the author focuses on the Supply Chain Operations Reference (SCOR) model. This approach allows all types of professionals to handle their work demands. • Use metrics to improve processes • Evaluate business risks through analytics • Choose the right software and automation processes • Plan for your supply chain management certification and continuing education A single business decision in one department can have unplanned effects in one or more areas, such as purchasing or operations. Supply Chain Management For Dummies helps you grasp the connections between business lines for wiser decision making and planning.

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Daniel Stanton. Supply Chain Management For Dummies

Supply Chain Management For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Supply Chain Management For Dummies Cheat Sheet” in the Search box. Table of Contents

List of Tables

List of Illustrations

Guide

Pages

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Where to Go from Here

Getting Started with Supply Chain Management

The Growing Demand for Supply Chain Management

Defining Supply Chain Management

Exploring Complex Business Challenges

Operating Under Supply Chain Management Principles

Customer focus

Systems thinking

Bimodal innovation

Collaboration

Flexibility

Technology

Global perspective

Risk management

Visibility

Value creation

Introducing Five Supply Chain Tasks

Implementing the New Supply Chain Agenda

Placing the right people in the right jobs

Putting the right technology in place

Focusing on internal collaboration

Directing external collaboration

Applying project management

Understanding Supply Chains from Different Perspectives

Managing Supply Chain Flows

Synchronizing Supply Chain Functions

Purchasing

Logistics

Operations

Connecting Supply Chain Communities

Designing Supply Chain Systems

Measuring Supply Chain Processes

Digging into Your Supply Chain

Prioritizing Supply Chain Goals

Step 1: Understand what customers value

Step 2: Recognize your competitors

Step 3: Understand your products or services

WHAT JOB DOES A MILKSHAKE DO?

Commodities

Luxury goods

Fashion goods

Durable goods

Technology

Looking at Cost Drivers

Procurement costs

Transportation costs

Inventory costs

Quality costs

Dealing with Trade-Offs

Sales versus operations

S&OP

Customer versus supplier

Engineering versus procurement

Inventory versus customer service

Inventory versus downtime

Procurement versus logistics

Optimizing Your Supply Chain

Designing Your Network

Improving and Innovating Processes

Lean

Six Sigma

Step 1: Define

Step 2: Measure

Step 3: Analyze

SIX SIGMA TRAINING AND CERTIFICATION

Step 4: Improve

Step 5: Control

Theory of Constraints

Structuring Supply Chain Projects

Managing cross-functional project teams

Authority and Influence

Communication

Prioritization

Creating cross-functional project plans

Creating a RACI matrix

Designing project scorecards

Using the DIRECT model

Define the objective

Investigate the options

Resolve to a course of action

Execute the plan

Change the system

Transition the people

Managing Supply Chain Processes

Connecting Supply Chain Processes

Introducing the SCOR Model

SIPOC

Establishing Process Metrics

Building the Right Supply Chain

Planning the Supply Chain

Balancing Supply and Demand

Aligning Resources with Requirements

Analyzing Your Customers

Planning Your Products

Planning Your Production Systems

Planning Your Delivery Systems

Planning for Returns

Sourcing, Purchasing, and Procurement

Understanding Strategic Sourcing

Segmenting Your Supply Chain

Managing Life Cycle Costs

Minimizing input costs

Sourcing your inputs

Forecasting your demand

Insourcing, outsourcing, and offshoring

Managing Supplier Relationships

Managing Procurement Processes

Establishing Supply Contracts

Selecting contract terms

Selecting payment terms

Mitigating Supplier Risks

Dealing with risks

Deciding which risks to manage

BRAINSTORMING RISKS AND EFFECTS

Implementing supplier development

Increasing supplier diversity

Establishing Purchasing Ethics

Sustainable Sourcing

Making Your Products or Services

Planning and Scheduling Production

Planning production

Setting a demand goal

Creating a production schedule

Finalizing the production schedule

Considering capacity

Design capacity

Operating capacity

Capacity utilization

Identifying Manufacturing Process Types

Operating a discrete manufacturing process

Operating a continuous manufacturing process

Choosing Your Production Environment

Make-to-stock

Make-to-order

PROCESS TYPES VERSUS PRODUCTION ENVIRONMENTS

Engineer-to-order

Implementing Quality Control and Quality Assurance

Considering the risks of poor quality

Controlling quality and variability

ISO 9001 CERTIFICATION

Reducing Manufacturing Waste

Delivering Your Products or Services

Understanding Modes of Transportation

Pipeline

Cargo ship

Rail

CONTAINER SHIPPING

Truck

TYPES OF TRAILERS

Parcel

Air

Selecting Modes of Transportation

INTERNATIONAL COMMERCIAL TERMS

Managing Warehousing and Inventory

Receiving

Put-away

Inventory counts

Picking

Packing

Shipping

Yard management

Over, short, and damaged

Establishing Inventory Ordering Policies

Selecting Material Handling Equipment

Managing and Filling Orders

Maintaining Visibility of Shipments

MANAGING LAST-MILE DELIVERIES

Leveraging Third-Party Logistics

Optimizing Freight Audit and Payment

Managing Product Returns and Reverse Supply Chains

Growing Revenue with Easy Returns

Processing Returns of New or Excess Products

Minor wear and tear

Damage or tampering

Substitution

Processing Returns of Used or Defective Products

Managing Closed-Loop Supply Chains

Handling Unauthorized Returns and Fraudulent Products

Managing Trade-Ins

Enabling Your Supply Chain

Managing Your Business Rules

Managing Supply Chain Performance

Setting performance goals

Align your metrics with your customers

Share your metrics with your suppliers

Managing Your Assets

Labeling Your Products

Preventing Tampering

Addressing Supply Chain Security Issues

Ensuring physical security

Dealing with counterfeiting

HONEYWELL AEROSPACE PARTS TRACKING

Tackling regulatory compliance

Addressing unique product requirements

TRACKING SHIPMENTS

Protecting supply chain information

Leveraging Information Technology

HOW IT HAS CHANGED SUPPLY CHAINS

Leveraging Human Resources

LINKING TALENT DEVELOPMENT TO CORPORATE PERFORMANCE

Mastering Project Management

Using Technology to Manage Supply Chains

Managing Supply Chain Software

Understanding How Processes Evolve

Using Transportation Management Systems

Using Electronic Load Boards

Using Warehouse Management and Execution Systems

PLANNING SOFTWARE VERSUS EXECUTION SOFTWARE

Using Demand Planning Systems

Using Material Requirements Planning Systems

Using Manufacturing Execution Systems

Using Distribution Requirements Planning Systems

Using Labor Management Systems

Using Customer Relationship Management Systems

Using Supplier Relationship Management Systems

Using Enterprise Resources Planning Systems

Using Supply Chain Modeling Software

A GOOD MODEL IS BETTER THAN A PERFECT MODEL

Using Business Intelligence Software

Leveraging Software Analysts

GARTNER’S MAGIC QUADRANT

Anticipating the Future of Supply Chain Software

Integrating Advanced Manufacturing into Your Supply Chain

Avoiding Obsolescence

Preparing for Industry 4.0

LAUNCHING INTO INDUSTRY 4.0

Capitalizing on Advanced Manufacturing

Automated manufacturing

Computer-aided design

3D printing

3D PRINTING IN HUMANITARIAN SUPPLY CHAINS

AUTOMATION LINGO

Automated Mobile Robots

Unmanned and Autonomous Vehicles

AERIAL DRONES IN HEALTH CARE

Managing Digital Supply Chains

Digitalizing Products and Services

Integrating Planning, Execution, and Visibility

Creating Customer Centricity

Sharing with Blockchains

Harnessing the Internet of Things, Big Data, and the Cloud

Connecting with Social Media

Employing Artificial Intelligence

Preparing for Quantum Computers

Retooling for Omnichannel

Driving Value with Supply Chain Management

Transforming Your Supply Chain

Improving Transparency and Visibility

Deploying Demand Shaping

Performing Postponement

Renewing Regional Sourcing

Reducing Stock-Keeping Units

Optimizing Inventory

Incorporating Vendor-Managed Inventory

Adjusting Payment Terms

Using Supply Chain Finance

Controlling the Bullwhip Effect

Sharing information with your partners

Reducing and aligning lot sizes

Managing promotions

TOILET-PAPER SHORTAGES

Starting with Small Improvements

Creating Sandboxes

Investing in Innovation

Adopting Supply Chain Metrics

Understanding Metrics

Identifying Performance Attributes

Understanding SCOR Metrics

Reliability

Responsiveness

Agility

Cost

Asset management efficiency

Optimizing Operational Metrics

Supplier metrics

Procure to pay metrics

Customer service metrics

Capacity, throughput, and yield metrics

Formalizing Financial Metrics

Accounts payable metrics

Total spend metrics

Savings metrics

Perfecting People Metrics

Engagement metrics

Productivity and efficiency metrics

Turnover metrics

Safety metrics

Solidifying Sustainability Metrics

Consumption metrics

Waste metrics

Managing Supply Chain Risks

Challenging Assumptions about the Future

Building Supply Chain Resilience

Identifying Risks

Classifying Risks

Scoring Risks

Managing Risks

Accepting the risk

Transferring the risk

Avoiding the risk

Mitigating the risk

Handling a Crisis

Building Supply Chain Analytics

The Rise of Big Data, Sensors, and the Internet of Things

Outline of an Analytics Plan

Define your theory of the problem or opportunity

Acquire relevant data

Clean, structure, and filter the data

Query the data and test your theory

Look for correlations and patterns

Correlation, Causation, and Interpolation

Modeling, Simulation, and Optimization

Simulation

BUILDING A MODEL

Optimization

Scenario Planning

THE MIT SCENARIO PLANNING TOOLKIT

Scorecards, Dashboards, and Control Towers

CATERPILLAR’S ASSURANCE OF SUPPLY CENTER

Building Your Supply Chain Management Career

Selecting a Supply Chain Career

Doing Your Homework

Examining Supply Chain Career Categories

Associates

Technicians

Planners and analysts

Engineers

Supervisors

Managers

Sales representatives

Information technology managers

Project managers

Executives

Journalists

Educators

Humanitarian supply chain professionals

Pursuing Supply Chain Education

Earning Certificates and Certifications

APICS certifications from the Association for Supply Chain Management

APICS Certified Professional in Inventory Management (CPIM)

APICS Certified in Logistics, Transportation and Distribution (CLTD)

APICS Certified Supply Chain Professional (CSCP)

APICS Supply Chain Operations Reference-Professional (SCOR-P)

Council of Supply Chain Management Professionals

Institute for Supply Management

Certified Professional in Supply Management (CPSM)

Certified Professional in Supplier Diversity (CPSD)

The International Society of Logistics (SOLE)

Demonstrated Logistician (DL)

Certified Master Logistician (CML)

Certified Professional Logistician (CPL)

Project Management Institute

The Futurist Institute

International certifications

Chartered Institute for Logistics and Transport (CILT)

Chartered Institute for Procurement and Supply (CIPS)

Supply Chain Canada

International Supply Chain Education Alliance

Demand Driven Institute

Earning Degrees and Diplomas

Undergraduate degrees

Graduate degrees

Exploring Online Education Options

Traditional online programs

MITx MicroMasters in Supply Chain Management

Arizona State University Online MS-SCM

Coursera

LinkedIn Learning

YouTube

Playing Supply Chain Games

The Beer Game

The Fresh Connection

Rise of Industry

Following Supply Chain Media

RESOURCES FOR VETERANS

The Part of Tens

Ten Questions to Ask about Your Supply Chain

Who Are Your Key Customers?

What Do Your Key Customers Value?

How Could Your Supply Chain Create More Value?

How Do You Define Supply Chain Management?

What Information Do You Share with Suppliers?

How Do You Compare with Competitors?

What Changes Could Increase Revenue?

What Changes Could Lower Costs?

What Affects Your Supply Chain Now?

What Will Affect Your Supply Chain in the Future?

Index. Numerics

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

Y

Z

About the Author

Dedication

Acknowledgments

WILEY END USER LICENSE AGREEMENT

Отрывок из книги

Supply chain management is about seeing your business as an interconnected system. Supply Chain Management For Dummies covers the tools, rules, and language that you need to understand how the parts of your company’s supply chain fit together. The book also shows you how to plan and manage your supply chain in ways that reduce costs, increase profits, and minimize risk.

Many books treat supply chain management as part of operations, logistics, or procurement, but this book takes a broader approach, showing that those functions are interconnected parts of a system.

.....

When you combine high-performance requirements with complicated technologies and dependence on global customers and suppliers, you have a recipe for chaos. Lots of variables mean that many things can go wrong. Even a small disturbance, such as a shipment that gets delayed, can lead to a series of problems farther down the supply chain — stockouts, shutdowns, penalties, and more. Managing a supply chain means being aware of risks and implementing processes to detect and mitigate threats. Stability may be the key to making supply chains work smoothly, but risk management is the key to avoiding or minimizing the costs of dealing with surprises. Done well, risk management can even provide opportunities to capture value during times of uncertainty.

.....

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