Quick Response in the Supply Chain

Frontmatter

1. Quick Response: From Evolution to Revolution — New Strategies for Business Logistics

Abstract

The term Quick Response (QR) describes a number of recent developments in business logistics. QR has both specific and general logistics applications and furthermore has implications at both operations level and for company strategy.

M. Walker

2. The Quick Response Model and its Applicability in the UK

Abstract

Quick Response developed in the US textile and clothing industry as a result of research, instigated in 1984, by the ’Crafted with pride in USA council’. The research was intended to investigate ways in which the industry could improve its long term competitiveness and focussed on supply chain analysis. It revealed that although individual components of the supply chain were efficient, the overall efficiency of the system was very low. In seeking to minimize costs independently of each other the fibre, textile, clothing and retail companies were inadvertently pursuing practices that added significant costs to the overall supply chain.

M. Silman

3. The Role of Logistics and IT in the European Enterprise

Abstract

The shape of European manufacturing and distribution must change. Historically, multi-national manufacturing and distribution companies operating in Europe, particularly those involved in the supply of high-tech and fast moving consumer goods, have comprised national sub-units with performance measured by local bottom line results. Communication and interaction between sites has been constrained by import duty barriers, quotas, national standards and regulations. This is changing. The move towards a single market, changes to statutory requirements and the introduction of the concept of ’mutual recognition’ has provided companies with an opportunity to standardize products and business processes across Europe. The Schengen Agreement has progressively simplified border crossing between France, Germany and the Benelux countries, reducing border crossing time and accelerating the movement of products.

G. Stevens

4. Electronic Trading in Europe

Abstract

The intention of this chapter is to examine the potential means of delivering pan- European electronic trading systems and the prospects and pitfalls awaiting those endeavouring to trade electronically across Europe.

R. B. Cole

5. Electronic Commerce — A Vital Component in Logistics Strategies

Abstract

The pressure is on to improve inter-company communications, nationally and internationally, across the supply chains in which we all operate. At GE Information Services (GE), we are seeing the emergence of an exciting new phenomenon - what has been called the ’Virtual Organization’.

J. Jenkins

6. Global Networking: Why a Managed Solution is Best

Abstract

Michael Porter in his book Competitive Advantage states ’information systems [are] having a profound impact on competition and competitive advantage because of the pervasive role of information in the value chain’. Consequently those companies who can link their information systems and communicate critical business information quickly and efficiently should achieve a competitive advantage.

G. McArthur

7. In-house or Third Party Distribution?

Abstract

The reasons given for manufacturers, wholesalers and retailing companies contracting out their distribution are many and varied but most are well known to all who operate in this field. After all, distribution contractors like Christian Salvesen, Tibbett & Britten, Excel and Hays have been preaching them loud and clear for the last ten years. They hold out the promise of, among other benefits:

• Incredible Savings on Operating Costs
• Liberating Vast Amounts of Capital
• Dramatic Service Improvements
• An End to Industrial Relations Hassle
• Freedom to Concentrate on the Real Business etc.

J. A. Sturrock

8. Distribution Trends in the Food Manufacturing and Processing Industries

Abstract

Few, within the logistics industry, would deny that the major food retailers have been instrumental in effecting change within the Grocery Supply Chain. Their ongoing strategies to drive down costs, both internally and with suppliers, have generally been respected if not always welcomed.

M. Browne, N. Greenslade

9. Pan-European Business Systems: Results of Survey

Abstract

The key issue in today’s business environment is the reconciliation of the often incompatible pressures of cost control,responsiveness to competition and the drive to develop new markets.

T. Evans

10. Supply Chain Planning Under Uncertainty

Abstract

Many organizations are faced with a constantly changing, uncertain economic environment and progressively shorter product life cycles. In addition complex corporate joint venture alternatives need to be evaluated and requests for increasingly stiffer service levels have to be taken into consideration.

C. Lucas, G. Mitra, S. A. Mirhassani

11. New Trends in Rapid Response Manufacturing Logistics

Abstract

Benetton., the Italian sportswear manufacturer, distributes 50 million pieces of clothing worldwide through a highly efficient Quick Response linkage among manufacturing, warehousing, sales and the retailers they-serve. When, for example, a popular style of winter-weight slacks is about to sell out early in the fall, a retailer records the product through direct links with Benetton’s mainframe computer in Italy. The order is downloaded to an automated machine that makes the slacks in the necessary range of sizes and colours. Workers pack the order in a bar-coded carton addressed to the retail store, and then send the box to Benetton’s single warehouse - a highly automated $30 million facility shipping 230,000 pieces of clothing a day to 5000 stores in 60 countries. Including manufacturing time, Benetton can ship the completed order in only four weeks.

P. Dempsey

12. Quick Response Manufacturing in the Tyre Industry

Abstract

Having spent several years in automotive component supply, and in particular the tyre industry, the authors of this chapter have witnessed at first hand the radical changes which have hit the industry in recent years. This chapter will examine the background and historical context of the growth of manufacturing which has led to its present position. It will then seek to describe some of the relevant practices and theoretical frameworks prevalent in the 1990s; in particular, the techniques that are used within manufacturing. This will then be followed by a more detailed description of the tyre manufacturing process, its components and raw materials and their suppliers. Finally, the authors will demonstrate how different parts of the tyre making process are more adaptable to quick response manufacturing than others.

P. A. Folwell, C. I. Jones

13. Changing Methods in the Toiletries Industry: A Case Study

Abstract

Over the last decade there have been many changes within the FMCG arena. Bristol-Myers Consumer Products is part of the American multi-national Bristol- Myers Squibb Corporation ranked within the top pharmaceutical companies in the world. With a turnover in excess of $13 billion and an impressive earnings ratio, Bristol-Myers Squibb has changed dramatically to adapt to these demands.

B. Tunmore

14. Time Based Distribution

Abstract

Physical distribution of industrial goods is an area that has not changed during the last few decades. Production oriented companies usually have a long distribution channel to break down large production batches, step by step, warehouse by warehouse, to a product-mix demanded by the customers. A sales-oriented company uses a wide distribution channel, with many sales offices and ware-houses, to be geographically close to the customers.

M. Abrahamsson

15. Integrators: The Challenge of Changing Logistics Structures

Abstract

I would like to explain how an integrated operator is approaching the task of establishing a network of services throughout Europe and how this fits into the various logistic changes that are currently taking place.

T. Keating

16. Quick Response in Retail Distribution: An International Perspective

Abstract

This chapter discusses the implementation of the concept of Quick Response to different retail markets of the world, notably the UK, USA, continental Europe and Japan. While much of the initial work on Quick Response focused upon the fashion sector of business, this chapter deals specifically with grocery markets where arguably Quick Response should be a part of corporate philosophy. It will be shown that the enabling technologies to implement Quick Response are in place but success at reducing inventory through the supply chain and in minimizing lead times varies not only from country to country but between companies in specific countries. The reasons for such variations include the nature of retailer - supplier relations, the degree of fragmentation or concentration of retail markets, the extent of retail branding and the distribution ’culture’ evident in different parts of the world.

J. Fernie