The Art and Science of Demand and Supply Chain Planning in Todays Complex Global Economy

Cover
Endrosment Page
Half Title
Title Page
Copyright Page
Table of Contents
Preface
About the Author
Section I Supply Chain Strategy
	Chapter 1 Introduction to Demand and Supply Chain Planning in Today’s Complex and Increasingly Uncertain Global Economy
		How This Book Can Help
		Where We Are Today and Changing Strategies
			Revising Processes
			Transforming Technology
			Managing People and Change
		Where to Look for Improvement: On the Demand Side
			Improving Timing and Accuracy
			Flattening Volatility
			Enabling Accurate Forecasts
		Where to Look for Improvement: On the Supply Side
			Supply-Side Accuracy and Timeliness
			People, Process, Technology
	Chapter 2 Understanding the Importance of Supply Chain to an Organization and Developing a Strategy for a Sustained Competitive Advantage
		Historical Perspective
		Value as a Utility
		Corporate, Business, and Supply Chain Strategy
			Mission and Vision Statements
			Strategy Defined
			Determining Your Corporate and Business Strategy
			Strategic Choices
		Supply Chain Objective and Strategic Importance
			“Outside-In” vs. “Inside-Out” Thinking
		Supply Chain Strategy “Transformation” Methodology
		Business Model Canvas and Supply Chain Model Canvas
			Business Model Canvas
			Supply Chain Model Canvas
		Supply Chain Strategy Implementation Methodology
			People
			Process
			Technology
	Chapter 3 Supply Chain Performance: Achieving Strategic Fit and Scope
		Supply Chain Strategy Elements and Drivers
			Industry Framework
			Unique Value Proposal
			Managerial Focus
			Internal Processes
		Supply Chain Drivers and Their Impact on Its Capabilities
			Efficiency vs. Responsiveness
			The Right Mix of Efficiency and Responsiveness
			Segmentation Strategy for Supply Chains
			Technology Is a Foundation for an Efficient and Responsive Supply Chain
		Achieving Strategic Fit
	Chapter 4 Supply Chain Metrics and Measurements
		Measurement and Control Methods
			The Evolution of Metrics
			Data Analytics
			Measurement Methods
		Measurement Categories
		Balanced Scorecard Approach
			Customer Service Metrics
			Operational Metrics
			Financial Metrics
			Innovation and Learning Metrics
		Supply Chain Operations Reference Model
		Supply Chain Dashboard and KPIs
			Indicators
		Benchmarking
	Chapter 5 Supply Chain Network Design
		The Importance of Facility Location When Designing a Supply Chain
		Supply Chain Network Design Influencers
			Types of Trade-offs in the Location Decision
		Types of Distribution Networks
			Manufacturer Storage with Direct Shipping
				Impact on Costs
				Impact on Service
			Manufacturer Storage with Direct Shipping and In-Transit Merge
				Impact on Costs
				Impact on Service
			Distributor Storage with Carrier Delivery
				Impact on Costs
				Impact on Service
			Distributor Storage with Last-Mile Delivery
				Impact on Costs
				Impact on Service
			Manufacturer or Distributor Storage with Customer Pickup
				Impact on Costs
				Impact on Service
			Retailer Storage with Customer Pickup
				Impact on Costs
				Impact on Service
			Impact of E-business on the Distribution Network
				Cost Impacts
				Service Impacts on the Distribution Network
		Supply Chains Must Adapt to Omni Channel Retail
			What Needs to Be Done?
		Distribution Disruption: Ready or Not, Here It Comes
		Omni Channel Multiplies the Challenges for Distribution-centric Supply Chains
		Store Delivery May Keep Traditional Brick-and-Mortar Retailers in the (Omni Channel) Game
			Getting Creative
			E-commerce Looking for Room to Grow
		Location Decisions
			Strategic Considerations
				Selecting a New Facility
			Location Decisions Hierarchy
				Country Decision
				Regional Decision
				Local Decision
			Dominant Factors in Manufacturing
			Dominant Factors in Services
		Location Techniques
			Location Cost–Volume Analysis
			Weighted Factor Rating Method
			Center of Gravity Method
			The Transportation Problem Model
		Technology
	Chapter 6 A Lean, Agile, and Smart Supply Chain to Meet the Volatile Demand and Supply Conditions of the 21st Century
		Hybrid Supply Chain
			Either or Both
		The Smart Supply Chain
		History of Lean
			Value-Added vs. Non-value-Added Activities
		Waste
		Lean Culture and Teamwork
			Lean Teams
			Kaizen and Teams
			Team and Kaizen Objectives
		Value Stream Mapping
			VSM Benefits
		Lean Tools
			Standardized Work
			5S Workplace Organization System
			Visual Controls
			Facility Layout
			Batch Size Reduction and Quick Changeover
			Quality at the Source
			Point of Use Storage
			Total Productive Maintenance
			Pull/Kanban and Work Cells
			Lean and Six Sigma
		Omni Channel Requires an Agile and Responsive Supply Chain
		The Retail Supply Chain Needs to Continuously Adapt
			Areas for Change and Improvement
		Lean and Agile Supply Chain Planning Process
			Lean Supply Chain Objectives
		A Lean Supply Chain Implementation Methodology
	Chapter 7 Strategic Sourcing and Procurement
		Strategic Sourcing vs. Procurement
		Strategic Sourcing Processes
		Lean Strategic Sourcing
			Seven Activities of Lean Strategic Sourcing
		Lean Sourcing Journey
		Lean Strategic Sourcing MRO: Case Study 1
			Challenge
			Approach
		Results
		Sourcing as Strategy: Case Study 2
			Challenge
			Approach
		Results
		Procurement (aka Sourcing)
		The Procurement Process
			Step 1 – Identify and Review Requirements
				Direct Procurement
				Indirect Procurement
			Step 2 – Establish Specifications
			Step 3 – Identify and Select Suppliers
				Vendor Evaluation
			Step 4 – Determine the Right Price
				Negotiation
		Key Procurement Metrics
		Lean Procurement
			Core Principles of Lean Procurement
		Procurement Technology
			Technology to Enhance Lean Procurement
		Erskine Lean Review of Procurement – Case Study 1
			Challenge
			Approach
		Results
		Scapa – Case Study 2
			Challenge
			Approach
		Results
	Chapter 8 Integration, Coordination, and Collaboration in the Supply Chain
		Internal and External Integration
			Internal Integration
			External Integration
				Supply Chain Collaboration by Industry
				Levels of External Collaboration
				Types of External Collaboration
				Benefits to Collaboration
		Supply Chain Collaboration Methods – A Closer Look
			Quick Response
			Efficient Consumer Response
			Collaborative Planning, Forecasting, and Replenishment
		Industry 4.0 and Supply Chain 4.0 for Further Integration and Collaboration
			Integrated Process Optimization
			Collaboration through the Cloud
Section II Demand-Side Planning
	Chapter 9 Demand Planning: The Art and Science of Forecasting
		Forecasting Used to Be Strictly Like “Driving Ahead, Looking in the Rearview Mirror”
		Demand Sensing and Shaping
			Artificial Intelligence and Forecasting
		Forecasting Realities
		Types of Forecasts
			Demand Drivers
				Internal Demand Drivers
				External Demand Drivers
		Forecasting Process Steps
		Quantitative vs. Qualitative Models
			Qualitative Models
				Knowledge and Intuition of the Products
				Market Surveys
				Jury of Executive Opinion
				Delphi Method
			Quantitative Models
				Time Series Models
				Associative Models
			A Blended Approach: Collaboration and Consensus Forecasting
		Product Life Cycles and Forecasting
			Introduction Phase
			Growth Phase
			Maturity Phase
			Decline Phase
		Time Series Components
		Time Series Models
		Causal or Associative Models
			Correlation
			Seasonality
			Multiple Regression
			Box–Jenkins
			Focus Forecasting
		Forecasting Metrics
			Forecast Error Measurement
				Mean Absolute Deviation (MAD)
				Mean Squared Error (MSE)
				Mean Absolute Percent Error (MAPE)
				Tracking Signal
		Order Management and Customer Service
	Chapter 10 Information Technology in Demand Planning
		Demand Forecasting Technology and Best Practices
		Forecasting Technology Options and Requirements
			Why Use Forecasting Technology?
		How Technology Helps the Demand Forecasting Process
			Listening to Social Media
			Improve Demand Forecasting with the IoT
			Streamline and Improve Forecasting Processes with AI and ML
				Typical AI-based Forecasting System
				Accuracy in Demand
				Traditional Solution Drawbacks
			Demand Uncertainty and Existing Method Forecast Performance
			Knowledge Gaps Filled by Machine Learning
			Food for Thought
		A Lean Approach to Forecasting
			Lean Forecasting Process
		Plan and Deliver
		Order Management and Customer Relationship Systems
			Order Management Systems
			Customer Relationship Management Systems
Section III Supply-Side Planning
	Chapter 11 Supply Chain (Independent Demand) Inventory Management and Control
		Independent vs. Dependent Demand Inventory
		Types of Inventory
		Costs of Inventory
			Carrying or Holding Costs
			Ordering Costs
			Setup Costs
			Total Cost Minimized
		Economic Order Quantity Model
			Basic EOQ Calculation
		Reorder Point Models
			Fixed Quantity (“Q”) Model
				Min/Max and Par Methods
				Safety Stock
			Fixed Period (“P”) Model
			Single Period Model
		ABC Method of Inventory Planning and Control
			Realities of ABC Classification
			Other Uses for ABC Classification
		Inventory Control and Accuracy
			Cycle Counting
		Key Metrics
	Chapter 12 Sales and Operations (Aggregate) Planning
		The Process Decision
			Goods and Service Processes
				Project Process
				Job Shop Process
				Batch Process
				Assembly Line or Repetitive Process
				Continuous Flow Process
				Mass Customization
		Aggregate Planning and Master Production Scheduling Process Overview (Figure 12.2)
		Aggregate Planning
			S&OP Process
				It’s Time to Bring the Outside-In to Your S&OP Process
			S&OP in Retail
			Integrated Business Planning
				Planning and Control
				Obstacles to Implementation
				Get Motivated
			View from the Control Tower
				Control Towers Help to Support a Lean Supply Chain
			Demand and Supply Options
				Demand Options
				Supply (Capacity) Options
			Aggregate Planning Strategies
			Production, Sales, and Inventory Method of Planning
		Master Production Schedule
			Production Strategies
			System Nervousness
				Distribution Requirements Planning (DRP) Software
				Rough-Cut Capacity Planning
	Chapter 13 Resource Planning – Dependent Demand Inventory and Purchasing
		Material Requirements Planning
			Bill of Material
			MRP Mechanics
		Purchasing
			Step 5 – Issue Purchase Orders
			Step 6 – Follow Up to Assure Correct Delivery
			Step 7 – Receive and Accept Goods
			Step 8 – Approve Invoice for Payment
	Chapter 14 Resource Planning – Short-Term Scheduling and Omni Channel Delivery
		Short-Term Scheduling
			Types of Scheduling
			Sequencing
				Priority Rules
		Short-Term Scheduling Process
			Continuous vs. Discrete Industry Scheduling
			Finite Capacity Scheduling
			Service Scheduling
		Types of Distribution Networks
			Manufacturer Storage with Direct Shipping
				Impact on Costs
				Impact on Service
			Manufacturer Storage with Direct Shipping and In-Transit Merge
				Impact on Costs
				Impact on Service
			Distributor Storage with Carrier Delivery
				Impact on Costs
				Impact on Service
			Distributor Storage with Last-Mile Delivery
				Impact on Costs
				Impact on Service
			Manufacturer or Distributor Storage with Customer Pickup
				Impact on Costs
				Impact on Service
			Retailer Storage with Customer Pickup
				Impact on Costs
				Impact on Service
		Delivery in Today’s Omni Channel Retail World
		Managing Last-Mile Costs and Efficiency Is Critical
			Some Ideas to Reduce Last-Mile Transportation Costs
		How Omni Channel Fulfillment Is Affecting Transportation Sourcing and Execution
		Where Is Last-Mile Delivery Headed?
			Technology and the Last Mile
	Chapter 15 Information Technology in Supply Planning
		Viewpoints of Supply Chain Information Systems
			Supply Chain Macro Processes
			Supply Chain Information Technologies
				Control Towers
				Linking Technologies
		Enterprise Resource Planning Systems
			ERP Technology
		Inventory (and Production) Planning and Control Technology
			Sales and Operations Planning
			Warehouse Management Systems
			Order Management Systems
			Customer Relationship Management Systems
			Transportation Management Systems
			Distribution Requirements Planning (DRP)
			Master Production Scheduling (MPS)
			Material Requirements Planning
			Short-Term Scheduling Technology
				Advanced Planning and Scheduling Systems
				Finite Capacity Scheduling Systems
			Advanced Planning and Scheduling Systems Technology
Section IV The Road Ahead
	Chapter 16 The Impact of Omni Channel, the Pandemic, and Other Natural and Manmade Events on the Supply Chain
		Omni Channel Retail Areas of Attention
		Omni Channel Supply Chain Enablers
			Many (Un)Happy Returns: Return Strategy as an Enabler
		Technology as an Enabler
			Omni Channel Order Management Systems and Their Benefits
		Next Steps in Your Supply Chain’s Omni Channel Journey
		Omni Channel Supply Chain Challenges
		Why Is Omni Channel Important?
		The Impact of Omni Channel Commerce on the Retail Supply Chain
			Processing Customer Orders
			Delivery from Store or Distribution Center?
			Inventory Optimization and Sales and Operations Planning
			Impacts on Distribution/Fulfillment Centers and IT
			Impact of a Multi-step Picking Process
		The Impact of Omni Channel Commerce on Manufacturers
			Key Challenges
		Pandemics, Climate Change, and Other Supply Chain Disruptions: The Road Map out of This Mess
			Risk Mitigation Strategies
			Where to Start
			Work from the Top Down
	Chapter 17 Global Supply Chain Risk Management: Identification and Mitigation
		Managing and Mitigating Risk
			Riding Out the (Whitewater) Rapids
				Instead of a Crystal Ball …
		Global Supply Chain Operations and Increased Need for Risk Management
		Growth of Globalization
			Factors Influencing Globalization
			Reasons for a Company to Globalize
		Global Supply Chain Strategy Development
		International Transportation Methods
			Ocean
			Air
			Motor
			Rail
			Global Intermediaries
				Storage Facilities
				Packaging
		Global Supply Chain Risks and Challenges
			Questions to Consider when Going Global
			Key Global Supply Chain Challenges
		Risk Management
			Potential Risk Identification and Impact
			Sources of Risk
				Internal Risks
				External Risks
			Supply Chain Structure and Vulnerabilities
			Supply Chain Risks and Tactics for Mitigation
	Chapter 18 Harmonized Demand and Supply Chain Planning – It’s the Journey, Not Just the Destination
		We Are All in This Together: Teamwork in a Lean Workplace
			Team Building
			Management’s Role
			Keeping It Going
		People, Process, and Technology: Synchronized for the Evolving Supply Chain Planning Strategy
			Principles of a Supply Chain Strategy
			Developing and Implementing a Future-State Vision
			Leveraging the PPT Framework
		Demand and Supply Chain Planning Capabilities Needed for the Future
			The Need for Resiliency
			Visibility into the Supply Chain
			Capacity and Cost vs. Timeliness
			Improving Forecast Accuracy
			Ongoing AI and Cloud Technology Adoption
Appendix A Case Studies: Demand and Supply Chain Planning (Combining People, Process, and Technology)
Appendix B Chapter Discussion Questions
References
Index