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Principles of Supply Chain Management


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Table of Contents


Evolution of Supply Chains
Learning Outcomes
What Is a Supply Chain?
Importance of SCM
Evolution of Supply Chains
Changing Government Orientation
Current Trends That Link Supply Chain Participants More Closely
Current Developments in SCM
Obstacles to Supply Chain Integration
Examples of Companies with Successful Supply Chains
Progress toward an Integrated Supply Chain
Supply Chain Models

Supply Chains as a System
Learning Outcomes
Supply Chain Systems
Types of Supply Chains
Examples of Supply Chains in Different Industries
Open Systems vs. Closed Systems
Effect of External Influences on Supply Chains
Obstacles and Enablers of Supply Chain Integration
Internal and External Customers
Open Systems vs. Closed Systems
Effect of External Influences on Supply Chains
Obstacles and Enablers of Supply Chain Integration
Performance Measurement
Allocation of Costs, Resources, and Benefits along the
Supply Chain
Value Creation as the Ultimate Objective


Determining Customer Needs
Learning Outcomes
Group Customers into Homogeneous Segments
Determine the Needs of the Ultimate Consumer
How Do You Accurately Determine Needs?
How Do You Forecast Demand?
Attributes of a Well-Designed Product
Product Design Approaches
Determine the Number of Supply Chains Needed within a Company
Performance Measurement
Determine the Needs of Internal Customers

A System to Meet Customer Needs
Learning Outcomes
What Is Customer Relationship Management?
Global Supply Chain Forum Model
How CRM Can Be Used to Design a Supply Chain?
Product Lifecycle Management
Supply Chain Mapping
Determining Resource Requirements
Designing Processes to Match with Products
Determining the Mix of "Make" and "Buy"
Aligning Entities along the Supply Chain
Evaluating the System Design

Demand Management
Learning Outcomes
Definition of Demand Management
Importance of Demand Management
Managing Demand
Managing Supply
Merging Supply and Demand into a Demand Management Process
Demand Management in Manufacturing
Demand Management in Services
Proposed Demand Management Strategies
Factors That Affect the Selection of a Demand Management Strategy
Relationship between Factors and Strategies
Model for Integrating Demand and Supply Management
Programs Used to Implement Demand Management Strategies
Demand Management along the Supply Chain


Distribution and Retailing
Learning Outcomes
Retail Function
Designing the Retail Process
Managing a Retail Business
Retail and Inventory Management
Present Situation in Retailing
Future in Retailing
Role of Wholesalers and DCs
Critical Success Factors for Distribution
Inventory within Distribution Functions
Inventory Management between Retailer and Distributor
Technology in Distribution Functions
Positioning Services within the Distribution Functions
Predominant Delivery Methods
Third-Party Service Providers
Distribution Performance Measurement
Retailer-Distributor Relationship

Production and Service Processes
Learning Outcomes
Evolution of the Production Function
Critical Success Factors for Manufacturers
Manufacturing Strategies
Batch to Lean Operations
Make or Buy Strategies
Capacity Planning
Service Production Strategies
Relationships with Downstream Customers
From Transactions to Processes
Trends in Production
Performance Measurement

Learning Outcomes
Role of Procurement in the Supply Chain
Traditional Purchasing
Contemporary Purchasing
Critical Success Factors for Procurement
Changing Role of Purchasing
Purchasing Functions
Purchasing at Different Stages of the Supply Chain
Dealing with Off shore Outsourcing
Performance Measurement
Future of Purchasing

Reverse Supply Chains
Learning Outcomes
Description of Reverse Supply Chain Networks
Principal Drivers of the Movement
Activities in Reverse Logistics
Role of Private Industry
Role of Government
Role of Consumer
Reverse Logistics Network


The Need to Integrate
Expected Outcomes
Setting the Stage
From Mass Production to Mass Customization
From Vertical Integration to Virtual Integration
From Homogeneous Cultures to Diverse Cultures
Drivers of Change
Involves Change Management
Steps in the Integration Process
Need for Strategic Planning
Need for a Multi-Year Project Plan
Performance Measurement across the Supply Chain
Integration Requires Sharing

Why Integration Is Difficult
Learning Outcomes
Determining Strategic Objectives
Evaluating the Potential Return on Investment
Designing for Participant Differences
Need for Multiple Supply Chains
Selecting and Implementing Technology
Realigning Infrastructure
Transforming Company Cultures
Building Relationships
Measuring Performance
Maintaining the System
Obstacles to International SCM

How to Build an Integrated Supply Chain
Learning Outcomes
Who Manages the Supply Chain?
The World of Lean Production
Stages in Moving from Functional-Focus to Cross-Enterprise
A Comprehensive Supply Chain Model
Decisions Needed to Achieve a Lean and Agile Supply Chain
Integrated Supply Chain
Steps in the Change Process
A Look Ahead


Information Flow along the Supply Chain
Learning Outcomes
Need for Information Flow
Types of Information Transmitted
Intracompany Technologies Used
Supply Chain Direct Links
Linking Technologies
Linking Applications
Third-Party Services
Benefi ts of Information Technologies
Barriers to IT Adoption
Model of an Integrated Supply Chain Information System

Funds Flow along the Supply Chain
Learning Outcomes
Overview of the Flow of Funds
Need for Electronic Funds Flow
Benefi ts and Obstacles of Funds Flow in Supply Chains
Participants Other Th an Members of the Supply Chain
Performance Measurement
Eff ect of Production Strategies on Funds Flow
Technologies Used
New Concepts in Funds Flow
Funds Flow in the Reverse Supply Chain
A Comprehensive Example

ROI for Supply Chains and Other Issues
Learning Outcomes
Supply Chain Configurations
Programs Requiring Close Supply Chain Relationships
Need to Evaluate Supply Chain ROI
Tangible Costs
Indirect Costs
Cash Flow and Time Value of Money Considerations
Intangible Benefits
Intangible Costs
Plan for Equitable Distribution among Members
Role of Prime Mover in the Supply Chain
Changes in Supply Chain Composition
Case Studies


Trends in Supply Chain Development and Management
Learning Outcomes
From the Past to the Present
Evolution of Critical Success Factors in the United States
Major Drivers of Change in Supply Chains
Changes Needed in the Future
Global Business Perspective
Balanced Approach to Offshore Outsourcing
Continuing Changes in Technology
Vanishing Boundaries between Manufacturing and Services
Process Evolution from Transactions to Integrated
Infrastructure Refinements
Culture and Employees
Supply Chain Relationships

Preparation for the Future
Learning Outcomes
Recognize the Need to Adapt to Changing Conditions
Identify What Needs to Be Done
Summary of Challenges
Role of Government
Role of Third Parties
Future Technology-Information Technology Oriented
Build Strategic and Operational Plans
Continue the Drive for Collaboration
Develop Performance Measures for Supply Chain Management
Structure the Organization to Manage Change
Modify the Culture to Accept Change
Drive for Sustainability
Wisdom-Education and Training
Vanishing Boundaries between Manufacturing and Services
Application of Chaos Theory to Business


Each chapter includes a Summary, Discussion Questions, & References

About the Author

Richard E. "Dick" Crandall is a professor in the College of Business at Appalachian State University (ASU), Boone, North Carolina. He is a certified fellow in production and inventory management (CFPIM) and is also a certified supply chain professional (CSCP) by APICS--The Association for Operations Management. He received his PhD in production/operations management from the University of South Carolina, Columbia and is a registered professional engineer and a certified public accountant. Prior to joining ASU, Dick worked as an industrial engineer and in management positions for manufacturing and service companies. He was a consultant with a major consulting firm, installing systems for both operations and financial applications. With Rick Crandall, he coauthored the book New Methods of Competing in the Global Marketplace: Critical Success Factors from Service and Manufacturing, published in 2008 by CRC Press, Taylor & Francis. William "Rick" Crandall currently serves as a professor of management at the University of North Carolina at Pembroke. He received his PhD in business administration with a focus on organizational behavior and human resource management from the University of Memphis, Tennessee. His primary research interest is in the area of crisis management, helping organizations cope with catastrophic events. He is the author of the new book, Crisis Management in the New Strategy Landscape (coauthored with John Parnell and John Spillan, also of the University of North Carolina at Pembroke), released by Sage Publications. He is also active in researching issues related to supply chain management. Prior to entering higher education, Dr. Crandall worked in management for ARA Services (now ARAMARK), a service management firm based in Philadelphia. Charlie C. Chen was educated at Claremont Graduate University, California and received his PhD in management information systems. He is an associate professor in the Department of Computer Information Systems at Appalachian State University, Boone, North Carolina. His research interests include project management and supply chain management. He is a member of the Association for Information Systems and Decision Sciences Institute, and is certifi ed by the Project Management Institute as a project management professional (PMP). Dr. Chen has published in journals such as Communications of Association for Information Systems, Behaviour and Information Technology, Journal of Knowledge Management Research, Practice, and the Journal of Information Systems Education. Dr. Chen is a dedicated transnational scholar and is a trip leader for study-abroad programs in Asia.

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