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Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems

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Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems

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  • Supply chain mapping techniques—Shows students how to describe and understand existing supply chains.
    • Gives students solid foundational knowledge about how conventional supply chains work and look before they are optimized.

  • Supply chain cost issues—Reviews the costs associated with conventional supply chains, opportunities for savings, and costs associated with redesign initiatives.
    • Gives business students practical techniques and skills for assessing ROI in supply chain projects.

  • Effective B2B e-commerce and Web-based strategies—Covers today's leading and emerging approaches to optimizing supply chains.
    • Teaches techniques and approaches that will be relevant in actual practice for many years to come.

  • Supply chain-friendly product design—Shows how to design products that will be easy to build and deliver efficiently.
    • Gives business and engineering students crucial insight into how up-front product design decisions impact the entire supply chain.

  • Two detailed case studies—Presents detailed coverage of supply chain redesign initiatives at both GM and Nortel.
    • Helps students understand the real supply chain management challenges faced by today's largest enterprises.


  • Copyright 2002
  • Edition: 1st
  • Premium Website
  • ISBN-10: 0-13-060312-0
  • ISBN-13: 978-0-13-060312-8

Supply Chain Redesign delivers practical guidance for every aspect of supply chain redesign: mapping existing supply chains; identifying changes that promise the best ROI; intelligently leveraging new technologies; strengthening relationships with key partners; designing products that support lean supply chains; implementing new approaches to strategic cost management; and much more. Coverage includes key success factors, emerging trends, and detailed case studies from Nortel and GM.

Sample Content

Online Sample Chapter

Supply Chain Redesign: Integrating Suppliers Into New Product Development

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Click here for a sample chapter for this book: 0130603120.pdf

Table of Contents


1. Supply Chain Management: Transforming Supply Chains into Integrated “Value Systems”.

Defining Supply Chains. Increasing Customer Demands for Value Across the Supply Chain. Supply Chain Relationships. Information Systems and Supply Chain Management. A Process Model: SCM for Value System Creation. Change Management: The Challenge Facing Supply Chain Managers. Endnotes.

2. Understanding and Improving Supply Chains and Key Supply Chain Processes.

Introduction. Understanding Supply Chains through Process Mapping. Process Flow Charts. Internal Supply Chains. External Supply Chains. Benefits of Interorganizational Supply Chain Collaboration. The Importance of Time in Creating High-Performance Supply Chains. Opportunities for Cycle Time Reduction across the Supply Chain. Re-Engineering Supply Chain Logistics. Supply Chain Performance Measurement. Summing It Up: The Perfect Order Versus Total Cost. Summary. Endnotes.

3. Internal Integration—Managing Information Flows within the Organization.

A Historical Perspective. Drivers of Supply Chain Systems and Applications. Internal and External Strategic Integration. Globalization of Markets. Availability of Powerful Information Systems and Technology. Enable New Business Processes. Replace Obsolete Systems. Strategic Cost Management. Enterprise Resource Planning (ERP). Implementing ERP Systems. ERP “Meltdowns”. Supply Chain ERP Modules. ERP and Data Warehouses. When Your Web Site is Not Aligned With Your Business Strategies. Decision Support Systems. Summary. Endnotes.

4. The Financial Impacts of SCM—Finding the “Sweet Spot”.

Insourcing/Outsourcing: A Controversial Issue. Initiating the Insourcing/Outsourcing Decision. Understanding Your Core Competence. Technological Maturity. Understanding the Market. Insourcing Versus Outsourcing—Advantages/Disadvantages. Summary. Endnotes.

5. Creating Collaboration and Trust in the Supply Chain.

Roots of Supply Chain Relationship Management. A Conceptual Model of Alliance Development. Developing a Trusting Relationship with Supply Chain Partners. Challenges to Managing Supply Chain Relationships. Summary. Endnotes.

6. Customer/Supplier Integration into New Product Development.

Changes to the New Product Development Process. Supplier Integration Into New Product Development. Supplier Integration Approaches. Supplier Integration Into New Product Development Process Model. Assessing the Supplier's Technology Roadmap. Developing Suppliers Capabilities. Summary. Endnotes.

7. Strategic Cost Management in a Global Supply Chain.

The Financial Impacts of Supply Chain Management: Rolling Up the Numbers. Strategic Cost Management Initiatives Across the Supply Chain. Volume Leveraging and Cross Docking: Harvesting the Low-Hanging Fruit. Global Logistics and Material Positioning. Global Supplier Development. Target Pricing. The “Greening” of the Supply Chain: Life Cycle Costing, Re-Manufacturing, and Recycling. Cost Management Enablers. Endnotes.

8. Navigating the Business to Business (B2B) E-Commerce Landscape.

The Evolution of the Internet. Attributes of the Internet. The B2B Technology Landscape. Standards: The Basis for B2B Integration. The “Emerging” Standards. Which Standard Should Be Adopted? Looking Forward: Emerging Technologies. Problems With Implementing Standards. Endnotes.

9. Creating Information Visibility.

The Importance of Information in Supply Chains: Avoiding the Sting of the “Bullwhip”. Creating Information Visibility in Supply Chains. Information Visibility System Best Practices. Collaborative Planning, Forecasting, and Replenishment (CPFR). Collaborative Contract Management Visibility Systems. Deploying Information Visibility Systems: A Case Example. Conclusion. Endnotes.

10. Managing Change in the Supply Chain: Lessons from General Motors.

Managing Change in the Supply Chain. Radical Change Management: The Lopez Era. Changing the Purchasing Culture. Internal Integration of Supply Chain Functions. The New Era of Order to Delivery: Drivers for Change. Changing the Culture for Supply Chain Redesign. Future Challenges. Endnotes.




Integrated supply chain management is now recognized as a core competitive strategy. As organizations continuously seek to provide their products and services to customers faster, cheaper, and better than the competition, managers have come to realize that they cannot do it alone; rather, they must work on a cooperative basis with the best organizations in their supply chains in order to succeed. When pressed to identify how to achieve this strategy, however, the path forward for managers is not clear. Numerous "solution providers" offer the "magic bullets" to supply chain integration; yet the results are never guaranteed.

In this book, we focus on the concept of the value system. We propose that by integrating the flows of information, materials, technology, and resources in a supply chain, a true system of creating value for the end customer can be created. This book shares insights gained from our research, which has brought us in contact with managers in engineering, purchasing, operations, logistics, information systems, and sales functions across a range of industries. These experiences have been synthesized to create a managerial perspective of the core tasks and challenges required to transform supply chains into high-performing value systems. This text is unique in that it describes a phenomenon that has been rapidly evolving yet never fully deployed by any single organization. Although other books have dealt with the individual processes associated with developing new products, buying materials, transforming them, and shipping them to customers, we believe our treatment of the topic from an integrated managerial perspective is unique.

Because supply chain management involves all functions within organizations, this book has been written for a general audience and provides insights into the conceptual foundations of supply chain management. It also presents a topical discussion of what a supply chain is, why it is important, and what types of challenges are implicit in managing supply chains. In sum, this book will enable readers to better understand...

  • The contribution of supply chain management to creating value, in the form of increased profitability, technology leadership, and market share in the modern organization
  • Requirements for analyzing and improving supply chain business processes
  • The benefits of integrating major functional activities, including product design, purchasing, information systems, manufacturing planning and control, inventory management, human resource development, financial planning, forecasting, sales, quality management, distribution, transportation and other areas via internal information systems
  • Understanding the "sweet spot", or area of greatest value to focus resources in organizational supply chains
  • Strategies for creating collaboration and trust among supply chain participants
  • The contribution of customers and suppliers to collaborative product/processs/service design
  • Strategies for achieving significant shared cost reductions among supply chain partners
  • Latest developments in B2B standards and applications that facilitate supply chain integration and creation of value systems
  • Recent technologies that enable visibility of end customer requirements for multiple tiers of OEM's and suppliers in a supply chain
  • A detailed case study of a major change management initiative at General Motors that illustrates the critical success factors required to create an integrated value system, as well as the challenges in deploying a value system initiative

These points are illustrated through multiple examples from a variety of industries and settings, based on extensive research over many years. The concepts are presented in an easy to understand narrative that is intended for any reader interested in learning about supply chain management.


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