1st Edition

Supply Chain Construction
The Basics for Networking the Flow of Material, Information, and Cash




ISBN 9781482240467
Published August 26, 2015 by CRC Press
484 Pages 54 B/W Illustrations

USD $90.95

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Book Description

All too often, entrepreneurs start small businesses unaware of their need for a supply chain network. And, large companies are acquired and their product lines merged with little regard for supply chain network integration and rationalization. Written for practitioners by a practitioner with 40 years of experience, Supply Chain Construction: The Basics for Networking the Flow of Material, Information, and Cash presents an integrated, comprehensive blueprint for building and/or rebuilding an end-to-end supply chain. Emphasizing flexibility and strength, the book explores optimal ways to withstand product evolution, contingencies, organizational life cycles, and disasters for the long haul.

Each chapter begins with a storyline describing the interpersonal relationships and intrapersonal conflicts that attend change. This is followed by a logical sequence of checklists, diagrams, maps, mathematical models, and spreadsheets for each topic. The author presents a 20-step blueprint that defines the supply chain network container and its product contents and includes example applications of the blueprint to nontraditional businesses found in small to medium-sized companies. He also includes decision factor charts for selecting the right suppliers, factories, and distributors; comprehensive examples of both forward and reverse supply chain network construction; and detailed explanations of inbound, midbound, and outbound logistics considerations.

Just as a surgeon performing a delicate operation needs to understand the consequences of cutting into an intersection of the body’s internal organs, you, the supply chain practitioner, need to understand the consequences of cutting into an intersection of a network’s material flow, information flow, and cash flow. Covering the practical issues of highly integrated networks woven together by corporate relationships and enabled by information technology, this book shows you how to systematically build and/or rebuild a robust supply chain that not only ensures growth, but also solidifies the future of your company as a whole.

Table of Contents

Eight Steps
Prologue
Name Your Supply Chain Scenario
Let’s Get Started
Complete This Eight-Step Approach
Set a Focused Objective to Connect the Market and Product
Write a Supply Chain Construction Requirements Specification
Study the Blueprint Before Beginning Construction
In Summary
The Blueprint--"Make It Work"
You Don't Know What You Don't Know
Follow the Blueprint
Build a Forward Supply Chain—A Comprehensive Example
In Summary
Building Relationships
Staffing the Dream Team
Sign Up for the Journey
Know When to Start and End a Supply Chain Construction Project
Organize the Supply Chain Construction Project
Educate and Train
Build Trust within Parent Organization Relationships
Develop Network Relationships
Build Trust with External Relationships
In Summary
Cash Flow
A Dollar Wise and 10 Million Foolish
Get a Handle on the Balance
Cash in on the Cash-to-Cash Cycle
Let the Velocity and Variability Principles Guide Construction
Build an Information Backbone
Profit from the Margin
Price Based on Cost
Forecast Cash Replenishment
Budget Cash for the Supply Chain Construction Project
Fund the Construction Project
In Summary
Make
Connecting the Dots
Know What Your Customer Values
Understand What Makes a Good Factory
Select the Best Factory
Compare Factory Price/Landed Costs for Distribution
Prepare the RFQ
Evaluate First Samples
Optimize Midbound Logistics Costs
Beware the Hidden Costs of Offshore Manufacturing
In Summary
Source
When You Care Enough to Source the Very Best
Start with Part Numbering
Translate the BOM into Requirements for a Supply Base
Practice Commodity Management
Determine a Material Budget before Shopping for Suppliers
Select the Best Supplier
Optimize Inbound Logistics Costs
Outsourcing the Supply Base: A Case Study
In Summary
Deliver
Where in the World Has My Product Gone?
Know the Nature of Market Demand
Use Customer Preferences to Define Delivery Channels
Understand What Makes a Good Distributor
Embrace Specialized It
Select the Best Distribution Network
Optimize Outbound Logistics Costs
In Summary
Return
No Deposit, No Return
Accommodate Returns in the Forward Network
Build a Reverse Supply Chain--A Comprehensive Example
In Summary
Demand Planning
All Forecasts Are Wrong
Focus on Consistent, Reliable Delivery
Let the Vocalize and Visualize Principles Guide Construction
Work from the Big Picture
Forecast the Order
Capture the Order
Broadcast the Order
In Summary
Inventory Management
In Stock, No Problem
Ask These Eight Inventory Questions
Get the Lay of the Land
Push Inventory into the Push/Pull Boundary
Set Lot Size, Reorder Point, Lead Time, and Safety Stock
Pull Inventory Out of the Push/Pull Boundary
In Summary
Performance Measures--Make It Work Well
You Get What You Measure
Measure KPIs
Work with This Basic Performance Measurement System
Use a Value Circle to Make Comparisons
Validate Performance to Gain Customer Acceptance
Performance Diagnostics
Improve the Margin
Decrease the Network Inventory Investment
Track Project Team Progress Against the Plan
In Summary
Using Excel to Plot a Value Circle
Risk Management--"Make It Work in a Flexible, Risk- Tolerant Manner"
Risky Business
Complete the Current Supply Chain Construction Project
Separate What You Can Control from What You Cannot Control
Change the Product—If You Can
Change the Network—If You Can
Change the Business Model—If You Can
Risk Management
In Summary
Epilogue
Bibliography

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Author(s)

Biography

William T. Walker, CFPIM, CIRM, CSCP retired as Director of Supply Chain at StarTrak Information Technologies, LLC after 40+ years practitioner experience in engineering, materials, purchasing, operations, and supply chain architecture with Hewlett-Packard, Agilent Technologies and Siemens Building Technology. Bill wrote the book Supply Chain Architecture: A Blueprint for Networking the Flow of Material, Information and Cash. He now teaches supply chain engineering at NYU Tandon School of Engineering. Bill is an APICS Fellow holding lifetime certifications, a past APICS E&R Foundation President, and a past APICS Society VP of Education. His BSEE and MSIE degrees are from Lehigh University.

Featured Author Profiles

Author - William T  Walker, CFPIM, CSCP-F, CLTD-F, CIRM
Author

William T Walker, CFPIM, CSCP-F, CLTD-F, CIRM

Adjunct Professor of Supply Chain Engineering, NYU Tandon School of Engineering
Brooklyn, NY, USA

Learn more about William T Walker, CFPIM, CSCP-F, CLTD-F, CIRM »

Reviews

"Walker provides a comprehensive process for creating or modifying an end-to-end supply chain network. His 8-step methodology and the 20-step blueprint are a must approach for anyone building a new supply chain network or modifying an existing one. Walker’s approach reflects 40 years of hands on experience in supply chains. His subject matter expertise is reflected throughout the book through his clear writing style and inclusion of supporting figures and tables. The use of a storyline gives the reader an easy-to-read introduction to each chapter and the inclusion of rarely discussed topics like relationships and returns are engaging. I like the use of value circles for comparing 'as is' to 'to be' performance measures as well as the inclusion of a chapter on risk management. This a must-read book for all supply chain practitioners."
-Jeffrey L. Johnson, Senior Business Analyst