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2019 | Book

Introduction to Supply Chain Management Read chapter Read first chapter

Strategic Supply Chain Management

Authors: Syed Abdul Rehman Khan, Zhang Yu

Publisher: Springer International Publishing

Book Series : EAI/Springer Innovations in Communication and Computing

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

This book covers the scope of supply chain and logistics, which has continued to grow with a rapid speed. The book includes core aspects of supply chain and logistics philosophy and practice. The authors then cover the general principles of supply chain and logistics that can be applied in countries throughout the world. Where concepts cannot be generalized, they are based primarily on a European model. The authors have also added some international material and examples from China, Pakistan, India, and the USA. The book is intended to help 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 a global market. In addition, this book helps candidates to who are undertaking examinations for universities and professional institutes, and bachelor and master students who are studying for degrees in supply chain management. In addition, the book covers technical terminologies, definitions, and a supply chain dictionary.

Table of Contents

Frontmatter
Chapter 1. Introduction to Supply Chain Management
Abstract
SCM is the integration process of dealing business partners, which starts from supplier of raw material to final customer/consumer, including all transportation activities, intermediate processes, storage activities and, finally, sale to the end customer/consumer.
In nowaday competitive environment, the practices of SC are acting as a crucial supporter in the success of business in terms of reducing the overall business cost, eliminating waste, increasing the quality of products and services and, finally, building competitive edge.
Since the 1980s, several firms have been aware of the benefits of supply chain. The foundation of SC can be seen in the areas of manufacturing, storing, procurement, with supply chain members and . Finally, as technology, political forces, economic conditions and market position change all over the world, the practice of SCM also changes. In simple words, these are major leading indicators of supply chain.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 2. Key Issues in Logistics and Supply Chain
Abstract
This chapter has emphasized some of the main issues and problems of SCM and logistics, including distribution network configuration, supply chain integration, strategic partnering and inventory control, etc., and it has also discussed some of the problem-solving approaches, including network flow optimization, ERP , outsourcing vs. buying, statistical process control and TQM, with the help of different literature reviews.
Further, a couple of the key influences on supply chain and logistics development are identified in this chapter. Key changes occurring throughout the supply chain are probable. These many developments are indicative of ongoing basic and essential changes. Specifically, the association among supplier, manufacturer, distributor, retailer and consumer may need rethinking. Now the main idea of supply chain and logistics is moving towards the need for supply chain and logistics partnership. The overall trend, strengthened by the latest IT (information technology), is greater integration in end-to-end supply chain management.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 3. Global Sourcing
Abstract
International purchases of components, materials, services and finished products will continue to grow. Due to that, supply management staff at all levels must be more and more familiar with the nuances of global/worldwide sourcing. Despite many companies would prefer to buy from nearest countries (geographically close), it is not possible every time. Companies operating in competitive industries must buy from the best sources available in the world. Developing these sources demands continual monitoring of both country trend and supply market. Currently, many companies prefer to source from India or China. Less publicized but just as important is low-cost country sourcing rising in Eastern Europe. Of course, globalization will carry on and continue to be a major force that requires assessment on a firm-by-firm basis. Once the assessment is completed, management of supply must respond with an effective global strategy.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 4. Warehousing and Storage Equipment
Abstract
This chapter highlights and summarizes the major strategic issues that have a significant impact on the design and management of warehouse systems. In the broader perspective of the supply chain, highlighted points must be considered if stores are to function effectively.
Warehouses and handling systems in warehouses do not operate alone. Their aim and roles must be decided through the overall end-to-end supply chain (SC) within which they operate. There is no doubt that warehouses play a vital role in the success of whole SCM. In the SC, warehouses must integrate closely with the other components, and they should be utilized effectively and efficiently because the method by which they operate will have direct and significant effects on both costs and customer service.
A major aspect for determining the most suitable system of storage for a particular application is to choose one whose characteristic very similarly matches the overall requirements of the store within which it is to work.
The primary elements for determining the most suitable system of storage for any application covers:
  • Effective use of space—building height and access aisles
  • Efficient system of stock location and information
  • Employee safety
  • Security and integrity of stock
  • Stock layout for minimum movement
  • Characteristics and nature of products and unit loads held
  • Efficient access to inventory for replenishing
  • Minimum cost of overall system
Syed Abdul Rehman Khan, Zhang Yu
Chapter 5. Inventory Management
Abstract
Companies depend on inventory to balance demand and supply, and to buffer uncertainties in the SC (supply chain). On the other hand, for a company, inventory can be one of the most valuable assets; hence, it should be well managed. The right quantity of inventory helps and supports operations of business, but too little inventory can adversely affect customer service. Conversely, extra inventory or excess inventory not only leads to unnecessary inventory holding but hides manufacturing problems and other flaws in a firm.
This chapter discusses the overall role of inventory and several techniques of inventory management, which are broadly used for balancing supply and demand. The classic ABC classification of inventory was discussed along with the ABC matrix as a means to monitor whether a company is stocking the right inventories. This chapter also discussed RFID technology (radio frequency identification device), which has the potential to radically change the way inventories are managed and controlled in the upcoming future.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 6. Warehouse Design and Management
Abstract
This chapter has discussed the warehouse design and fundamental responsibilities of management for distribution centres and warehouse operation, and the need for monitoring to identify potential performance failures and ensure efficient operation. The essential importance of communication and information in these processes has been emphasized, and the IT (information technology) utilized in these operations has been reviewed.
The objective of a design should be always to get the right technology and design to fulfil the given requirements. Whatever technology level is used, whether fairly basic or a robotic system or sophisticated automated system, an effective communication and information system, probably computer-based, should always be incorporated into the operational design.
Finally, the pressures on top-level management have been to minimize inventory and costs while improving customer service, but in a context of increased legislation regulating such aspects as safety, quality and environmental constraints. Developments that have allowed management to fulfil these requirements include IT and, where suitable, the use of robotics and high levels of automation.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 7. Domestic and Global Logistics
Abstract
This chapter has discussed the vital or key role that logistics plays in general and to SCs in particular. However, this is a broad subject matter; we have attempted to review the factors within the United States local and global logistics to provide the reader an adequate understanding of the whole logistics and its association with SCM. These factors cover 3PL, basics of transportation, sustainability in logistics, warehousing, reverse logistics and also global logistics. It is hoped that readers have gained an in-depth understanding of many factors within the extensive topic of logistics, including why these are significantly vital for effective and efficient supply chain management.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 8. Procurement
Abstract
In this chapter, the role of procurement has been defined, and the importance of procurement in the perspective of supply chain management, how firms can choose a suitable supplier, and what the procedure for supplier selection is also have been described. Usually supplier selection or choosing supplier procedure varies from company to company, industry to industry and in fact from product to product—for example, if a company wants to buy some strategic or critical products, some procedures can be more detailed and time-consuming. On the other hand, if a company wants to buy some ordinary products or inexpensive products, such as stationary and paper, some procedures will be less complicated and less time-consuming. In addition, we have discussed the steps involved in a procurement cycle, advantages of e-procurement and covered different arrangements for purchasing.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 9. Performance Measurement and Evaluation
Abstract
A system of measurement and evaluation of purchasing and SC (Supply Chain) should support corporate objectives. A system of measurement that directs behaviour and activity away from those objectives is counterproductive and may cause more harm than good.
There is a need to generate systems of measurement that are quick to respond to change. Companies will also gradually require measures that focus on end outcomes rather than on particular operation. Additionally, top executive must have the ability to differentiate between poor and good practices/outcomes of purchasing. A well-developed performance system of measurement can help provide this difference. Undeniably, the balanced scorecard is a very advantageous method of purchasing and supply measurement.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 10. Environmental and Ethical Issues in SCM
Abstract
This chapter verified that supply and purchasing managers should be concerned regarding the environmental aspect of the SCM. The chapter defined the idea of environmental soundness, green SCs and sustainable development. It has reviewed and also outlined supply and purchasing managers’ contribution to increasing environmental soundness. Finally, the chapter discussed and also identified many important execution problems.
Environmental soundness in SCM may not be classed as a critical requirement of business. Although the full effects of the many pressures may take some time to filter through to purchasing in some sectors, in others it is already a middle-of-the-road issue. Firms that deliberate environmental problems to be “strategic” will not wait for the consequences of activity to have an effect—companies will seek proactively for the possible impact on their business and also attempt to reduce the risk before it is fully demonstrated or manifested. The competitive pressure that this market development can be expected to place upon companies will inevitably find its way speedily to managers of purchasing and supply.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 11. IT in Supply Chain Management
Abstract
This chapter has highlighted the major areas where IT has a significant effect on SC. Brief descriptions were provided as follows:
Some basic factors of communications were considered first, additionally EDI (electronic data interchange), order processing and barcodes.
Main developments in SC planning were thought as those incorporating company-wide information systems, SCM and network strategy.
Looking more closely at the basic logistics elements, the information technology-related aspects of inventory, transport and warehousing were reviewed.
Finally, some other critical aspects were considered, including EPOS systems, internet and e-commerce, integration of Supply Chain Information Technology, and implementation of Decision Support Systems (DSS) and Enterprise Resource Planning (ERP).
Syed Abdul Rehman Khan, Zhang Yu
Chapter 12. Future Trends in Supply Chain
Abstract
In this chapter, we have briefly discussed “future trends in supply chain management”. In the brief history of SCM we have already watched and observed several dramatic modifications in practice. On the other hand, in the next 15 or so years we are likely to see yet more dramatic vicissitudes. One thing is certain, as SCs become constantly more network-based and virtual, and as worldwide mega-trends reshape the trade and business landscape, the role of supply chain and logistics engineering in safeguarding a healthy ecological/environmental friendly future will become even more critical.
Syed Abdul Rehman Khan, Zhang Yu
Chapter 13. Case Studies
Abstract
Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be pre-packaged in 24 × 24 × 6-inch cartons. Each packaged unit weighs approximately 10 pounds.
Syed Abdul Rehman Khan, Zhang Yu
Backmatter
Metadata
Title
Strategic Supply Chain Management
Authors
Syed Abdul Rehman Khan
Zhang Yu
Copyright Year
2019
Electronic ISBN
978-3-030-15058-7
Print ISBN
978-3-030-15057-0
DOI
https://doi.org/10.1007/978-3-030-15058-7