Supply Chain Management For Dummies 2e

Daniel Stanton is known as "Mr. Supply Chain." His books are used by students and professionals around the world, and his courses on LinkedIn Learning have been viewed more than 1 million times. He holds numerous industry certifications, including Certified Supply Chain Professional (CSCP) and SCPro.

Introduction 1 About This Book 1 Foolish Assumptions 1 Icons Used in This Book 2 Where to Go from Here 2 Part 1: Getting Started with Supply Chain Management 5 Chapter 1: The Growing Demand for Supply Chain Management 7 Defining Supply Chain Management 7 Exploring Complex Business Challenges 9 Operating Under Supply Chain Management Principles 11 Customer focus 12 Systems thinking 12 Bimodal innovation 12 Collaboration 13 Flexibility 13 Technology 14 Global perspective 14 Risk management 14 Visibility 15 Value creation 15 Introducing Five Supply Chain Tasks 15 Implementing the New Supply Chain Agenda 16 Placing the right people in the right jobs 17 Putting the right technology in place 17 Focusing on internal collaboration 17 Directing external collaboration 18 Applying project management 18 Chapter 2: Understanding Supply Chains from Different Perspectives 19 Managing Supply Chain Flows 19 Synchronizing Supply Chain Functions 20 Purchasing 21 Logistics 22 Operations 23 Connecting Supply Chain Communities 23 Designing Supply Chain Systems 26 Measuring Supply Chain Processes 29 Chapter 3: Digging into Your Supply Chain 31 Prioritizing Supply Chain Goals 31 Step 1: Understand what customers value 31 Step 2: Recognize your competitors 33 Step 3: Understand your products or services 33 Looking at Cost Drivers 35 Procurement costs 35 Transportation costs 36 Inventory costs 36 Quality costs 36 Dealing with Trade-Offs 37 Sales versus operations 37 Customer versus supplier 40 Engineering versus procurement 40 Inventory versus customer service 41 Inventory versus downtime 43 Procurement versus logistics 44 Chapter 4: Optimizing Your Supply Chain 47 Designing Your Network 47 Improving and Innovating Processes 49 Lean 49 Six Sigma 51 Theory of Constraints 53 Structuring Supply Chain Projects 55 Managing cross-functional project teams 55 Creating cross-functional project plans 56 Creating a RACI matrix 59 Designing project scorecards 60 Using the DIRECT model 61 Part 2: Managing Supply Chain Processes 65 Chapter 5: Connecting Supply Chain Processes 67 Introducing the SCOR Model 68 Establishing Process Metrics 72 Building the Right Supply Chain 73 Chapter 6: Planning the Supply Chain 75 Balancing Supply and Demand 76 Aligning Resources with Requirements 77 Analyzing Your Customers 79 Planning Your Products 80 Planning Your Production Systems 81 Planning Your Delivery Systems 82 Planning for Returns 83 Chapter 7: Sourcing, Purchasing, and Procurement 85 Understanding Strategic Sourcing 86 Segmenting Your Supply Chain 86 Managing Life Cycle Costs 88 Minimizing input costs 89 Sourcing your inputs 90 Forecasting your demand 92 Insourcing, outsourcing, and offshoring 92 Managing Supplier Relationships 93 Managing Procurement Processes 95 Establishing Supply Contracts 95 Selecting contract terms 96 Selecting payment terms 97 Mitigating Supplier Risks 99 Dealing with risks 100 Deciding which risks to manage 100 Implementing supplier development 103 Increasing supplier diversity 103 Establishing Purchasing Ethics 104 Sustainable Sourcing 105 Chapter 8: Making Your Products or Services 107 Planning and Scheduling Production 108 Planning production 108 Considering capacity 112 Identifying Manufacturing Process Types 114 Operating a discrete manufacturing process 115 Operating a continuous manufacturing process 117 Choosing Your Production Environment 117 Make-to-stock 118 Make-to-order 119 Engineer-to-order 121 Implementing Quality Control and Quality Assurance 121 Considering the risks of poor quality 121 Controlling quality and variability 122 Reducing Manufacturing Waste 124 Chapter 9: Delivering Your Products or Services 127 Understanding Modes of Transportation 128 Pipeline 129 Cargo ship 129 Rail 129 Truck 131