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Topics: Supply chain management, Supply chain, Logistics Pages: 14 (2705 words) Published: October 28, 2014
IVIANAGING
SUPPLY CHAINS
A LOGISTICS APPROACH WITH Sf UDENT 6 b

C. John Langley, Jr.
Georgia Institute of Technology

John J. Coyle
The Pennsylvania State University

Brian J. Gibson
Auburn University

Robert A. Novack
The Pennsylvania State University

Edward J. Bardi
The University of Toledo

SOUTH-WESTERN
fe CENGAGE LearningAustralia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

Contents
Preface xxi
About the Authors xxv

Parti
Chapter

1 Supply Chain Management: An Overview 3
SUPPLY CHAIN PROFILE: SAB Distribution: A Sequel

4

Introduction 6
What Forces Are Driving the Rate of Change 7
Globalization 7
Technology 9
Organizational Consolidation 9
The Empowered Consumer 10
Government Policy and Regulation 11
ON THE LINE: Malt-O-Meal Company: Going National

13

The Supply Chain Concept 14
Development of the Concept 14
Major Supply Chain Issues 21
Supply Chain Networks 21
Complexity 22
Inventory Deployment 22
Information 22
J

ON THE LINE: How Supply Chain Variation Impacts Shareholder
Value 23

Cost/Value 23
Organizational Relationships 24
Performance Measurement 24
Technology 24
Transportation Management 24
SUPPLY CHAIN TECHNOLOGY: Transforming Supply Chain IT into
"Business Technology"

25

Supply Chain Security 26
Summary 27
Study Questions 27
Notes 28
Case 1-1: Central Transport, Inc. 29
Chapter

2

Role of Logistics in Supply Chains 30
SUPPLY CHAIN PROFILE: Jordano Foods

31

Introduction 32
What Is Logistics? 34
Value-Added Roles of Logistics 36
ON THE LINE: U.S. Providers Say Logistics in China Is on the Right Track 38

viii

Contents

Logistics Activities 39
Scope of Activities 39
ON THE LINE: India's Logistics Challenges in a Nutshell

43

Logistics in the Economy: A Macro Perspective 43
Logistics in the Firm: The Micro Dimension 47
Logistics Interfaces with Manufacturing/
Operations 47
Logistics Interfaces with Marketing 48
Logistics Interfaces with Other Areas 52
Logistics in the Firm: Factors Affecting the Cost and
Importance of Logistics 53
Competitive Relationships 53
Product Relationships 55
Spatial Relationships 58
Techniques of Logistics System Analysis 59
Short-Run/Static Analysis 59
Long-Run/Dynamic Analysis 61
Approaches to Analyzing Logistics Systems 62
Materials Management versus Physical
Distribution 62
Cost Centers 64
Nodes versus Links 64
Logistics Channels 65
SUPPLY CHAIN TECHNOLOGY: Data Scrubbing: It's the Next Big Thing

Logistics and Systems Analysis 68
Cost Perspective 69
Levels of Optimality 69
Summary 72
Study Questions 72
Notes 73
Case 2-1: Senco Electronics Company 74
Case 2-2: Peanut Plantation 76
Suggested Readings for Part I 77

Part II
Chapter

3

Global Dimensions of Supply Chains 81
SUPPLY CHAIN PROFILE: Red Fish, Blue Fish, LLP

82

Introduction 83
Supply Chains in a Global Economy 84
ON THE LINE: Adapting to Operating in Low-Cost Regions

85

The Scope and Magnitude of Global Business 87
Global Markets and Strategy 88
ON THE LINE: Managing the Risk Inherent in Global
Outsourcing

89

68

Contents

Supply Chain Security: A Balancing Act 91
SUPPLY CHAIN TECHNOLOGY: Zara Shows H o w

Chapter

4

92

Ports 93
North American Free Trade Agreement 93
Maquiladora Operations 95
Asian Emergence 95
New Directions 96
Global Transportation Options 96
Ocean 96
Air 98
Motor 99
Rail 99
Strategic Channel Intermediaries 99
Foreign Freight Forwarders 99
Non-Vessel-Operating Common Carriers 100
Export Management Companies 101
Export Trading Companies 101
Customs House Brokers 101
Storage Facilities and Packaging 102
Storage Facilities 102
Packaging 102
Summary 104
Study Questions 104
Notes 105
Case 3-h Red Fish, Blue Fish, LLP:
A Sequel 106
Supply Chain Relationships 107
SUPPLY CHAIN PROFILE: Supply Chain Relationships-There Is No "Magic Bullet" 108

Introduction 109...
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