A Practical Introduction to Supply Chain

In many businesses, supply chain people are trapped in reactive roles where they source, contract, purchase, receive, warehouse, and ship as a service. However, in some businesses suppliers contribute to improvement programs, technology, funding, marketing, logistics, and engineering expertise. Breaking into a proactive supply chain role takes broad thinking, a talent for persuasion, and the courage to go after it. This book supplies proven methods to help you do so.

A Practical Introduction to Supply Chain describes how to run an efficient supply chain that exceeds expectations in terms of cost, quality, and supplier delivery. It explains the need to integrate systems, the flow of information, and the way in which people work together between commercial purchasing, materials management, and distribution parts of the supply chain.

**Sharing powerful insights from the perspective of a supply chain manager, the book details practical techniques drawn from the author's decades of experience. It presents methods that apply directly to supply chains involving a physical product, manufactured internally or outsourced, as well as physical operations such as oilfield services.

*This book demonstrates how to make a supply chain organization work in practice-contributing more to business success than traditional purchasing and logistics organizations can. In addition to writing about practical supply chain issues and approaches, the author also describes proven methods he used while working with client teams on assignments. He also details some of the ways his teams used to manage the *people part of the change.

Autorentext

David Pheasey started his working life as a mechanical engineer and worked as a production engineer for the Lucas Group in the UK. In the 1980s, computers were becoming powerful enough to run some of the systems we now take for granted and he became involved in the management of the implementation of material requirements planning systems. He then moved into a position responsible for materials management in a small but growing microcomputer manufacturing business. He later took responsibility for the commercial aspects of the supply chain and travelled to Asia and the US, sourcing and managing suppliers.

David joined Ingersoll Engineers in the early 1990s as a consultant specializing in supply chain. At that time, Ingersoll Engineers were one of the foremost implementers of cellular technology and David project managed several transformation programs involving the integration of people from functional departments into cellular and mini business organizations. In 2004, David and a long-term colleague, Richard Wardle, set up Demand Chain International, now part of the International Consulting Network.

Inhalt

**Introduction

**Supply Chain in a Strategic Context
**Importance of Supply Chain Performance to the Business
Scope of the Supply Chain
Supply Chain Organizations and Relationships with Other Functions
Supply Chain Metrics

Seven Elements of Supply Chain Excellence
Understanding Customers and Demand
The Capability of Your Supply Base to Meet Your Requirements
Relationships
Supply Chain Business Processes
Information Technology
Supply Chain People
Lean Practice in the Supply Chain

Understanding Customers and Demand
Forecasting Demand
S&OP
Dependent and Independent (Spares/Maintenance) Demand
Regularity of Demand
Standardization
Critical Parts
Forecasting and Planning for Different Types of Demand

Supply Management
Supply Base Alignment
Managing Low-Value Items and Services
Categorizing Spend and Starting Work on Your Supply Base
Commodity Management
Sourcing and Supplier Selection
Pricing
Total Cost
Risk Assessment and Mitigation
Relationships
Negotiation
Supplier Development
Supplier Life Cycle Management
Cost Reduction
Lead-Time Reduction
Contracts and Agreements
Key Contract Clauses and Issues
Trade Regulations and Compliance
Bribery and Corruption
Corporate Responsibility
Regulations Regarding Electronics and Substances
Auditing Requirements and Sarbanes-Oxley

Logistics
S&OP
Rough-Cut and Finite Capacity Planning/Scheduling
MRP
Making Logistics Easier
Inventory Management
Distribution

Supply Chain Business Processes
End-to-End Processes
Supply Chain Information Technology
IT to Support Competition-Beating Processes

Supply Chain People and Organizations
Communication Skills and Quality
Organization Structures, Teams, and People
Commodity Groups and the Organization
Linking the Planning and Purchasing Functions
Managing Up, Managing Down, and Managing Along the Supply Chain

Lean Supply Chain Practice
Applicability of Lean Tools in the Supply Chain
Waste Removal
Process Mapping
Continuous Improvement Cycles: PDCA and DMAIC
Example of Lean Improvements in the Supply Chain
KPIs

Making Change Happen
Dealing with Unpleasant News
Step Change and Incremental Change
Taking Advantage of IT as a Driver of Change
Speak with Data
Change Cycle
Willingness and Ability
Change Equation

Product Design and Development and the Supply Chain
Supplier Involvement in Product Design Teams

Appendix: Example Supply Chain Role Profiles

Index