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Principles of Supply Chain Management

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Table of Contents

OVERVIEW OF SUPPLY CHAIN MANAGEMENT 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 Introduction 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 THE CUSTOMER PERSPECTIVE Determining Customer Needs Learning Outcomes Introduction 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 Introduction 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 THE SUPPLY PERSPECTIVE-DISTRIBUTION, PRODUCTION, AND PROCUREMENT Distribution and Retailing Learning Outcomes Introduction 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 Introduction 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 Procurement/Purchasing Learning Outcomes Introduction 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 Introduction 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 Future INTEGRATED SUPPLY CHAINS The Need to Integrate Expected Outcomes Introduction 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 Introduction 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 Introduction Who Manages the Supply Chain? The World of Lean Production Stages in Moving from Functional-Focus to Cross-Enterprise Collaboration 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 THE FINANCIAL AND INFORMATION TECHNOLOGY PERSPECTIVES Information Flow along the Supply Chain Learning Outcomes Introduction 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 THE FUTURE 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 Index 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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