1st Edition

Retail Supply Chain Management

By James B. Ayers, Mary Ann Odegaard Copyright 2008
    446 Pages 53 B/W Illustrations
    by Auerbach Publications

    A consequence of business specialization is the implementation of weak processes that cross departmental and corporate boundaries. Supply chain management (SCM) addresses this issue by requiring a process view that reaches across these confines. Due to globalization and a competitive environment, those within the retail supply chains are particularly vulnerable. New ways of managing require an understanding of the entire chain by participants at every level-retailer, distributor, manufacturer, and service provider.

    Demonstrating the link between markets, products, and product strategies in the supply chain, Retail Supply Chain Management provides the knowledge and skills required to thrive in this environment. It demonstrates the connection between the processes involved in manufacturing, distribution, warehousing, and transportation, and how to use these connections to their best advantage.

    The book offers fresh insights into the financial and operational tools that are available and how to use these tools in order to deliver quality products in the most cost efficient manner. The authors' collaboration brings together expertise from both operations and retail business management, matching the solutions available from SCM with the challenges and opportunities that arise in the retail industry. The text also includes case studies and experiences from leaders in SCM as well as hard lessons learned by those trying to lead. These examples illustrate specific solutions to common situations in a retail supply chain.

    THE RETAIL SUPPLY CHAIN
    Defining the Retail Supply Chain
    More Than Stores
    Defining the Terms: Supply Chain and Supply-Chain
    Management
    The Importance of Customer Segments
    Adding Value Along the Chain

    Success in a Retail Business
    Financial Statements and Analysis
    Merchandise Replenishment and Budgeting
    Preparing a Merchandise Budget
    Success at the Retailer Level-Summary

    Types of Retail Supply-Chain Businesses
    Supply Chain Component Data
    US Retail Supply Chain
    Selected Supply Chain Company Returns
    Types of Retail Supply Chain Businesses-Summary

    A Changing World: Moving Toward Comparative Advantage
    Primer on Comparative Advantage
    Concept of Distance
    Applying the Framework
    The Changing World-Summary

    Corporate Social Responsibility, Sustainability, and the
    Retail Industry
    CSR at Retailers
    CSR Link to Strategy
    Framework for Classifying CSR Activities
    Boots Ltd.-CSR/Financial Report Convergence
    CSR and Retail-Summary

    FORCES SHAPING THE RETAIL SUPPLY-CHAIN ENVIRONMENT
    Drivers of Retail Supply Chain Change
    Drivers are Important
    Innovation Driver
    Extended Product Design
    Globalization
    Flexibility Imperative-the Ultimate Capability
    Process-Centered Management
    Collaboration
    Know Your Drivers

    Paths to the Customer
    Meeting Market Needs-Dimensions
    Proctor & Gamble Case Study
    Role of Specifications
    Nature of Demand
    Quality Function Deployment (QFD) Tool
    Paths to the Customer-Summary

    Supply Chain Risk
    Location/Trading Partner Selection Risks
    External Supply Chain Production/Logistics Risks
    Internal Supply Chain Production/Logistics Risks
    Supply Chain Risk-Summary

    Retail Supply Chain Metrics
    Metrics Problems
    Alignment with Strategy
    Definitions of Supply Chain Success
    Mid-Tier and Ground-Level Metrics
    Supply Chain Metrics-Summary

    Meeting the Needs of Supply Chain Decision Makers
    New Decisions at Herman Miller
    Proactive Decision Making
    Applications for Information Technology
    Assessing the Need for Information
    Meeting Decision-Maker Needs-Summary

    RETAIL STRATEGY AND SUPPLY CHAINS
    Product Types-Value to the Customer
    The Product Life Cycle
    Innovative and Functional Products
    Market Mediation Costs
    Customer Value and Product Types-Summary

    Businesses Inside the Business
    The Conventional Supply Chain
    Market Segments
    Spheres-Modules for Supply Chain Design
    Summary-Businesses Inside the Business

    Activity Systems and Process Definition
    IKEA-Activity System Example
    Enabling Spheres and Supply Chain Processes
    Defining Processes
    Activity Systems and Process Definition-Summary

    Retail SCM-Skills Required
    Five Tasks for SCM Excellence
    Assessing SCM Skills
    SCM Skills-Summary

    RETAIL SUPPLY-CHAIN PROCESS IMPROVEMENT
    Organizing to Improve Retail Supply-Chain Performance
    West Marine Case
    Continuous Improvement Cycles
    S&OP Process and Functional Roles
    Organizing to Improve Performance-Summary

    Collaboration with Supply-Chain Partners
    Supply Chain Roles
    Core Competency
    Partnerships Vocabulary
    Organizing a Partnership
    Partner Collaboration-Summary
    Endnotes

    The Demand-Driven Supply Chain
    Vision for the Demand-Driven Supply Chain
    The Path from Forecast-Driven to Demand-Driven
    Demand-Driven Tools and Techniques
    Sponsoring the Demand-Driven Supply Chain
    Demand-Driven Supply Chain-Summary

    Product Tracking Along Retail Supply Chains
    Low-Tech Retailing
    Beyond Basic Barcodes
    Radio Frequency Identification (RFID)
    Tracking in Transit
    The Future of Product Tracking
    Product Tracking-Summary

    ACHIEVING FINANCIAL SUCCESS IN THE RETAIL SUPPLY CHAIN
    Understanding Supply-Chain Costs
    Barriers to Cost Visibility
    Goal: Activity-Based Costing by Product
    Activity-Based Costs by Product (IV-D)
    Understanding Costs-Summary

    Barriers to Addressing Root Causes for Cost
    Root Causes for Supply Chain Cost
    No Focus
    Confusion
    Motivators
    Boundaries
    Rigidity
    Barriers to Cost Reduction-Summary

    Multicompany Collaboration to Reduce Costs-Who, What, and How
    Case Study-Frozen and Refrigerated Foods "Cold Chain"
    Recognize Root Causes
    Levels of Collaboration
    Who-Rationalizing the Customer/Supplier Base
    What and How-Pursuing Partnership Opportunities
    Multicompany Collaboration to Reduce Cost-Summary

    Retail Return Loops
    GENCO Case Study-the Rise of the Return Loop
    Types of Returns
    Opportunities in Returns
    Return Loops-Summary

    GLOSSARY
    BIBLIOGRAPHY
    INDEX

    Biography

    James B. Ayers, Mary Ann Odegaard