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PART ONE...................................................................................................................................................... 6
Chapter 1 – 21st – century supply chains........................................................................................................ 6
Supply chain revolution........................................................................................................................................6
Why integration creates value.............................................................................................................................6
Generalized supply chain model and supply chain applications..........................................................................7
Generalized supply chain model...........................................................................................................................7
Supply chain definitions and activities.................................................................................................................8
Integrative management and supply chain processes.........................................................................................9
Enterprise extension......................................................................................................................................10
Integrated service providers..........................................................................................................................10
Collaboration.................................................................................................................................................10
Supply chain value proposition..........................................................................................................................10
Value proposition conclusion........................................................................................................................11
Responsiveness...................................................................................................................................................11
Globalization......................................................................................................................................................12
Consumer requirements................................................................................................................................13
Technology adoption.....................................................................................................................................13
Conclusion......................................................................................................................................................13
Chapter 3 - Logistics..................................................................................................................................... 14
The Logistics of Business Is Big and Important..................................................................................................14
The logistical value proposition..........................................................................................................................14
Service benefits..............................................................................................................................................14
Cost minimization..........................................................................................................................................14
Logistics value generation.............................................................................................................................15
The work of logistics...........................................................................................................................................15
Logistical operations..........................................................................................................................................16
Logistical integration objectives.........................................................................................................................18
Logistical operating arrangements....................................................................................................................18
Flexible structure................................................................................................................................................19
Supply chain synchronization.............................................................................................................................20
Performance cycle structure..............................................................................................................................20
Chapter 4 – Customer Accommodation........................................................................................................ 23
Customer-focused marketing.............................................................................................................................23
Supply chain service outputs.........................................................................................................................23
Omnichannel marketing................................................................................................................................24
Customer service................................................................................................................................................24
The perfect order...........................................................................................................................................25
Logistics service platforms.............................................................................................................................25
Customer satisfaction.........................................................................................................................................25
Customer expectation...................................................................................................................................26
, Limitations of Customer Satisfaction.............................................................................................................28
Customer success...............................................................................................................................................28
Achieving customer success..........................................................................................................................28
Value-Added services....................................................................................................................................29
Developing customer Accomodation Strategy...................................................................................................29
Framework for strategic choice.....................................................................................................................29
Customer Relationship Management (CRM) Technology.............................................................................30
PART THREE................................................................................................................................................. 31
Chapter 8 - Transportation........................................................................................................................... 31
Transportation functionality and participants...................................................................................................31
Functionality..................................................................................................................................................31
Participants....................................................................................................................................................31
From regulation to a free market system..........................................................................................................32
Transportation Model structure.........................................................................................................................32
Rail.................................................................................................................................................................32
Truck..............................................................................................................................................................32
Water.............................................................................................................................................................33
Pipeline..........................................................................................................................................................33
Air...................................................................................................................................................................33
Model comparative characteristics and capabilities.....................................................................................33
Infrastructure crisis........................................................................................................................................34
Specialized transportation services....................................................................................................................34
Parcel Service.................................................................................................................................................34
Intermodal.....................................................................................................................................................34
Nonoperating intermediaries........................................................................................................................35
Transportation economics and pricing...............................................................................................................35
Economy of distance......................................................................................................................................35
Economy of weight........................................................................................................................................35
Economy of density.......................................................................................................................................36
Other pricing factors......................................................................................................................................36
Costing Freight...............................................................................................................................................36
Pricing freight.................................................................................................................................................37
Transportation operations management...........................................................................................................38
Transportation management systems...........................................................................................................38
Operations.....................................................................................................................................................38
Consolidation.................................................................................................................................................38
Documentation...................................................................................................................................................39
Product pricing and transportation....................................................................................................................39
FOB pricing.....................................................................................................................................................39
Delivered pricing............................................................................................................................................39
Pickup Allowances.........................................................................................................................................40
Chapter 9 - Warehousing, Materials Handling, and Packaging.......................................................................41
Strategic warehousing.......................................................................................................................................41
Service benefits..............................................................................................................................................41
Economic benefits.........................................................................................................................................42
Warehouse ownership arrangements................................................................................................................43
Network Deployment....................................................................................................................................43
Warehouse Decisions.........................................................................................................................................44
, Site selection..................................................................................................................................................44
Design............................................................................................................................................................44
Product-mix analysis......................................................................................................................................44
Expansion.......................................................................................................................................................44
Handling.........................................................................................................................................................44
Layout............................................................................................................................................................44
Sizing..............................................................................................................................................................45
Warehouse operations.......................................................................................................................................45
Primary warehouse operations..........................................................................................................................45
Product handling............................................................................................................................................45
Product handling considerations...................................................................................................................46
Storage...........................................................................................................................................................47
Secondary Warehouse operations.....................................................................................................................48
Accuracy and audits.......................................................................................................................................48
Security..........................................................................................................................................................48
Safety and maintenance................................................................................................................................48
Environmental concerns and regulatory environment.................................................................................48
Systems...............................................................................................................................................................48
Warehouse management systems................................................................................................................49
Yard management systems...........................................................................................................................50
Information-directed systems.......................................................................................................................50
Packaging perspectives......................................................................................................................................50
Packaging for handling efficiency......................................................................................................................50
Package Design..............................................................................................................................................51
Utilization.......................................................................................................................................................51
Communication.............................................................................................................................................51
Chapter 11 – Network Design....................................................................................................................... 51
Enterprise facility network.................................................................................................................................52
Spectrum of location decisions......................................................................................................................52
Local presence: an obsolete paradigm..........................................................................................................52
Warehouse requirements...................................................................................................................................52
Procurement drivers......................................................................................................................................52
Manufacturing drivers...................................................................................................................................52
Customer relationship drivers.......................................................................................................................52
Warehouse justification.................................................................................................................................53
Systems concept and analyses...........................................................................................................................53
Total cost integration.........................................................................................................................................53
Transportation economics.............................................................................................................................53
Inventory economics.....................................................................................................................................55
Total cost network.........................................................................................................................................57
Formulating logistical strategy..........................................................................................................................58
Cost minimization..........................................................................................................................................58
Treshold service.............................................................................................................................................58
Service sensitivity analysis.............................................................................................................................59
Establishing strategy......................................................................................................................................60
Other considerations in logistics network design..............................................................................................60
Planning methodology.......................................................................................................................................61
Phase I – Problem definition and planning........................................................................................................61
Feasibility assessment...................................................................................................................................61
PART ONE...................................................................................................................................................... 6
Chapter 1 – 21st – century supply chains........................................................................................................ 6
Supply chain revolution........................................................................................................................................6
Why integration creates value.............................................................................................................................6
Generalized supply chain model and supply chain applications..........................................................................7
Generalized supply chain model...........................................................................................................................7
Supply chain definitions and activities.................................................................................................................8
Integrative management and supply chain processes.........................................................................................9
Enterprise extension......................................................................................................................................10
Integrated service providers..........................................................................................................................10
Collaboration.................................................................................................................................................10
Supply chain value proposition..........................................................................................................................10
Value proposition conclusion........................................................................................................................11
Responsiveness...................................................................................................................................................11
Globalization......................................................................................................................................................12
Consumer requirements................................................................................................................................13
Technology adoption.....................................................................................................................................13
Conclusion......................................................................................................................................................13
Chapter 3 - Logistics..................................................................................................................................... 14
The Logistics of Business Is Big and Important..................................................................................................14
The logistical value proposition..........................................................................................................................14
Service benefits..............................................................................................................................................14
Cost minimization..........................................................................................................................................14
Logistics value generation.............................................................................................................................15
The work of logistics...........................................................................................................................................15
Logistical operations..........................................................................................................................................16
Logistical integration objectives.........................................................................................................................18
Logistical operating arrangements....................................................................................................................18
Flexible structure................................................................................................................................................19
Supply chain synchronization.............................................................................................................................20
Performance cycle structure..............................................................................................................................20
Chapter 4 – Customer Accommodation........................................................................................................ 23
Customer-focused marketing.............................................................................................................................23
Supply chain service outputs.........................................................................................................................23
Omnichannel marketing................................................................................................................................24
Customer service................................................................................................................................................24
The perfect order...........................................................................................................................................25
Logistics service platforms.............................................................................................................................25
Customer satisfaction.........................................................................................................................................25
Customer expectation...................................................................................................................................26
, Limitations of Customer Satisfaction.............................................................................................................28
Customer success...............................................................................................................................................28
Achieving customer success..........................................................................................................................28
Value-Added services....................................................................................................................................29
Developing customer Accomodation Strategy...................................................................................................29
Framework for strategic choice.....................................................................................................................29
Customer Relationship Management (CRM) Technology.............................................................................30
PART THREE................................................................................................................................................. 31
Chapter 8 - Transportation........................................................................................................................... 31
Transportation functionality and participants...................................................................................................31
Functionality..................................................................................................................................................31
Participants....................................................................................................................................................31
From regulation to a free market system..........................................................................................................32
Transportation Model structure.........................................................................................................................32
Rail.................................................................................................................................................................32
Truck..............................................................................................................................................................32
Water.............................................................................................................................................................33
Pipeline..........................................................................................................................................................33
Air...................................................................................................................................................................33
Model comparative characteristics and capabilities.....................................................................................33
Infrastructure crisis........................................................................................................................................34
Specialized transportation services....................................................................................................................34
Parcel Service.................................................................................................................................................34
Intermodal.....................................................................................................................................................34
Nonoperating intermediaries........................................................................................................................35
Transportation economics and pricing...............................................................................................................35
Economy of distance......................................................................................................................................35
Economy of weight........................................................................................................................................35
Economy of density.......................................................................................................................................36
Other pricing factors......................................................................................................................................36
Costing Freight...............................................................................................................................................36
Pricing freight.................................................................................................................................................37
Transportation operations management...........................................................................................................38
Transportation management systems...........................................................................................................38
Operations.....................................................................................................................................................38
Consolidation.................................................................................................................................................38
Documentation...................................................................................................................................................39
Product pricing and transportation....................................................................................................................39
FOB pricing.....................................................................................................................................................39
Delivered pricing............................................................................................................................................39
Pickup Allowances.........................................................................................................................................40
Chapter 9 - Warehousing, Materials Handling, and Packaging.......................................................................41
Strategic warehousing.......................................................................................................................................41
Service benefits..............................................................................................................................................41
Economic benefits.........................................................................................................................................42
Warehouse ownership arrangements................................................................................................................43
Network Deployment....................................................................................................................................43
Warehouse Decisions.........................................................................................................................................44
, Site selection..................................................................................................................................................44
Design............................................................................................................................................................44
Product-mix analysis......................................................................................................................................44
Expansion.......................................................................................................................................................44
Handling.........................................................................................................................................................44
Layout............................................................................................................................................................44
Sizing..............................................................................................................................................................45
Warehouse operations.......................................................................................................................................45
Primary warehouse operations..........................................................................................................................45
Product handling............................................................................................................................................45
Product handling considerations...................................................................................................................46
Storage...........................................................................................................................................................47
Secondary Warehouse operations.....................................................................................................................48
Accuracy and audits.......................................................................................................................................48
Security..........................................................................................................................................................48
Safety and maintenance................................................................................................................................48
Environmental concerns and regulatory environment.................................................................................48
Systems...............................................................................................................................................................48
Warehouse management systems................................................................................................................49
Yard management systems...........................................................................................................................50
Information-directed systems.......................................................................................................................50
Packaging perspectives......................................................................................................................................50
Packaging for handling efficiency......................................................................................................................50
Package Design..............................................................................................................................................51
Utilization.......................................................................................................................................................51
Communication.............................................................................................................................................51
Chapter 11 – Network Design....................................................................................................................... 51
Enterprise facility network.................................................................................................................................52
Spectrum of location decisions......................................................................................................................52
Local presence: an obsolete paradigm..........................................................................................................52
Warehouse requirements...................................................................................................................................52
Procurement drivers......................................................................................................................................52
Manufacturing drivers...................................................................................................................................52
Customer relationship drivers.......................................................................................................................52
Warehouse justification.................................................................................................................................53
Systems concept and analyses...........................................................................................................................53
Total cost integration.........................................................................................................................................53
Transportation economics.............................................................................................................................53
Inventory economics.....................................................................................................................................55
Total cost network.........................................................................................................................................57
Formulating logistical strategy..........................................................................................................................58
Cost minimization..........................................................................................................................................58
Treshold service.............................................................................................................................................58
Service sensitivity analysis.............................................................................................................................59
Establishing strategy......................................................................................................................................60
Other considerations in logistics network design..............................................................................................60
Planning methodology.......................................................................................................................................61
Phase I – Problem definition and planning........................................................................................................61
Feasibility assessment...................................................................................................................................61
