Table of Contents
Chapter 1 | Supply Chain Management: Architecting the Supply Chain for Competitive
Advantage ........................................................................................................................5
1.1 The Foundations of Supply Chain Management .............................................................. 5
1.2 The Rise of Supply Chain Management .......................................................................... 5
1.3 Defining Supply Chain Management .............................................................................. 6
1.3.1 Defining Logistics Management .........................................................................................................6
1.3.2 Defining Supply Chain Management..................................................................................................6
1.3.3 Redefining SCM ..................................................................................................................................6
1.3.4 Channel Configuration .......................................................................................................................8
1.4 Supply Chain Competencies ........................................................................................... 9
1.4.1 Customer Management .....................................................................................................................9
1.4.2 Supplier Management ........................................................................................................................9
1.4.3 Channel Alignment .............................................................................................................................9
1.4.4 Supply Chain Collaboration ..............................................................................................................10
1.4.5 Operations Excellence ......................................................................................................................10
1.4.6 Integrative Technologies ..................................................................................................................10
Chapter 2 | Supply Chain Technology Foundations: Exploring the Basics ..........................11
2.1 The Importance of Information Technology ................................................................. 11
2.1.1 Automate knowledge .......................................................................................................................11
2.1.2 Using Technology to Create Knowledge ..........................................................................................11
2.1.3 Using Technology to Integrate and Network Knowledge ................................................................11
2.2 Enterprise Information Technology Basics .................................................................... 11
2.2.1 Enterprise Technology Architecture ................................................................................................11
2.2.2 Enterprise Business Architecture .....................................................................................................12
2.2.3 Inter-Enterprise Business Architecture ............................................................................................12
2.3 New Technologies ....................................................................................................... 13
2.3.1 New Generation of Technology Enablers ........................................................................................13
2.3.2 Software-as-a-Service (SaaS)............................................................................................................13
2.3.3 Wireless Technology ........................................................................................................................13
2.3.4 Global Trade Management Solutions (GTM) ...................................................................................13
Chapter 3 | Supply Chain System Foundations: Understanding Today’s Technology
Solutions ........................................................................................................................15
3.1 Five Basic Functions of SC Information Systems ............................................................ 15
3.2 EBS System Components ............................................................................................. 15
3.3.1 Secondary Functional Areas of Operation .......................................................................................16
3.3.2 Middleware ......................................................................................................................................16
3.4 Standard EBS Systems ................................................................................................. 17
3.4.1 Enterprise Resource Planning ..........................................................................................................17
3.4.2 Basic ERP functions diagram ............................................................................................................17
3.4.3 Distribution enterprise system diagram ..........................................................................................18
3.4.4 EBS Benefits and Risks......................................................................................................................18
3.4.5 EBS Choices ......................................................................................................................................18
3.5 Advent of Internet Business Technologies .................................................................... 19
3.5.1 Defining Internet Business ...............................................................................................................19
, 3.5.2 Evolution of Internet Business .........................................................................................................19
3.6 Phases of Web-enabled e-Business .............................................................................. 20
3.6.1 Phase 1 | I-Marketing.......................................................................................................................20
3.6.2 Phase 2 | e-Commerce .....................................................................................................................20
3.6.3 Phase 3 | e-Business Marketplaces .................................................................................................21
3.6.4 Phase 4 | e-Collaboration Marketplaces .........................................................................................21
3.7 Today’s e-Business Marketplace – Summary ................................................................ 21
3.7.1 Customer Service-Driven Elements..................................................................................................22
3.7.2 Supply Chain Operations-Driven Elements ......................................................................................22
Chapter 4 | Technology-Driven Supply Chain Evolution: Building Lean, Adaptive, Demand-
Driven Supply Networks ..................................................................................................24
4.1 SCM Challenges ........................................................................................................... 24
4.2 The Lean Supply Chain ................................................................................................. 24
4.2.1 Anatomy of Lean Principles..............................................................................................................24
4.2.2 Lean SCM Technologies....................................................................................................................25
4.2.3 Cross-Enterprise Collaboration ........................................................................................................25
4.2.4 Lean SCM Implementation ...............................................................................................................26
4.2.5 Demand Management .....................................................................................................................26
4.3 Adaptive Supply Chains ............................................................................................... 26
4.3.1 Supply Chain Risk .............................................................................................................................27
4.3.2 Advent of the Adaptive Supply Chain ..............................................................................................27
4.3.3 Components of Adaptive Supply Chain Management .....................................................................27
4.3.4 Advantages of Adaptive Supply Chain Management.......................................................................27
4.4 Demand-Driven supply networks ................................................................................. 28
4.4.1 DDSN attributes ...............................................................................................................................28
4.4.2 Competencies ...................................................................................................................................28
4.4.3 Advantages of Demand-driven supply chain ...................................................................................29
4.4.4 Comparison Lean, Adaptive and Demand-driven supply chain .......................................................29
Chapter 5 | Customer and Service Management .............................................................30
5.1 Creating the Customer-Centric Supply Chain ................................................................ 30
5.2 Mapping the cluster of CRM components..................................................................... 30
5.3 Understanding Today’s Customer Dynamics................................................................. 31
5.3.1 The Whale Curve of Cumulative Profitability...................................................................................31
5.3.2 Customer Lifetime Value (CLV) ........................................................................................................31
5.4 Creating the Customer-Centric Organization ................................................................ 32
5.4 Applying Technology to CRM ....................................................................................... 33
5.4.1 CRM/E-CRM System Major Functions..............................................................................................33
1. Internet Sales.................................................................................................................. 33
2. Sales Force Automation (SFA) .......................................................................................... 33
3. E-CRM Marketing ............................................................................................................ 34
4. Customer Service Management (CSM) ............................................................................. 34
5. Partner Relationship Management (PRM) ........................................................................ 35
6. Electric Bill Presentment and Payment (EBPP).................................................................. 35
5.4.2 CRM Analytics...................................................................................................................................36
, 5.5 Implementing CRM ..................................................................................................... 36
5.6 New Concepts in Customer Management..................................................................... 36
5.6.1 Customer Experience Management (CEM)......................................................................................36
5.6.2 Merging CRM and CEM ....................................................................................................................36
5.6.3 Redefining CRM Technologies to Embrace CEM..............................................................................37
5.6.4 The Advent of Social Networking .....................................................................................................37
Lead-to-Cash Business Process ................................................................................................ 37
Contact-to-lead ...................................................................................................................... 39
Lead-to-opportunity ............................................................................................................... 39
Opportunity-to-quote............................................................................................................. 40
Quote-to-order ...................................................................................................................... 40
Order to cash ......................................................................................................................... 41
Chapter 6 | Manufacturing and Supply Chain Planning: Linking Product Design,
Manufacturing, and Planning to Increase Productivities ..................................................42
6.1 Manufacturing in the Age of Global Enterprise ............................................................. 42
6.2 Demand-driven Manufacturing .................................................................................... 42
6.3 Challenges to Manufacturing Infrastructure ................................................................. 43
6.4 Outsoucing and Supplier Partnership ........................................................................... 43
6.5 Changing Performance Targets .................................................................................... 43
6.5.1 The Future of Manufacturing ...........................................................................................................43
6.5.2 Impact of Technology on Manufacturing.........................................................................................44
6.5.3 Manufacturing Planning ...................................................................................................................44
6.5.4 Plant Maintenance and Quality Management .................................................................................44
6.5.5 Product Lifecycle Management (PLM) .............................................................................................44
6.5.5 Impact of Internet Networking Technologies ..................................................................................44
6.6 Collaborative Product Commerce (CPC)........................................................................ 45
6.6.1 Linking Supply Chain Design Capabilities .........................................................................................45
6.6.2 Contents of CPC................................................................................................................................45
6.7 Managing Manufacturing Planning Functions ............................................................... 45
6.8 Manufacturing Planning .............................................................................................. 46
6.8.1 Advanced Production and Scheduling Systems (APS)......................................................................46
6.8.2 SC Planning .......................................................................................................................................46
6.8.3 Collaborative Planning Forecasting and Replenishment (CPFR) ......................................................47
6.9 Manufacturing Execution System (MES) ............................................................................ 48
Chapter 7 | Supplier Relationship Management: Integrating Supplier into the Value Chain
......................................................................................................................................49
7.1 Purchasing .................................................................................................................. 49
7.2 Defining Purchasing and Supplier Relationship Management (SRM) ............................. 49
7.2.1 Components of SRM ........................................................................................................................49
7.2.2 Benefits of SRM ................................................................................................................................50
7.3 The Internet-Driven SRM Environment (E-SRM) ........................................................... 50
7.3.1 E-marketplace ..................................................................................................................................50
7.3.2 EBS Backbone functions ...................................................................................................................51
7.3.3 E-SRM Services Functions ................................................................................................................51
, 7.3.3 E-SRM Processing .............................................................................................................................52
7.3.4 e-SRM Technology Services .............................................................................................................52
7.4 Anatomy of the e-SRM Marketplace Exchange Environment ........................................ 52
7.5 Emergence of Today’s B2B Marketplace ....................................................................... 53
7.5.1 Defining the Trading Exchange ........................................................................................................53
7.5.2 Future of B2B e-Marketplaces .........................................................................................................53
7.6 Implementing e-SRM ................................................................................................... 53
Chapter 8 | Logistics Resource Management: Utilizing Technology to Enhance Logistics
Competitive Advantage ..................................................................................................55
8.1 Defining Logistics Resource Management (LRM) .......................................................... 55
8.1.1 Critical processes ..............................................................................................................................56
8.2 Process capabilities ..................................................................................................... 56
8.2.1 Logistics Performance Management ...............................................................................................56
8.2.2 Fulfillment Planning and Execution..................................................................................................57
8.2.3 Logistics Partnership Management..................................................................................................58
8.2.4 Shipment Visibility............................................................................................................................59
8.2.5 Fulfillment Event Management (SCEM) ...........................................................................................59
8.3 Defining LRM in the Age of Global Internet .................................................................. 59
8.4 Internet-Enabled LRM Technologies ............................................................................. 60
8.4.1 Enterprise Performance Measurement ...........................................................................................60
8.4.2 Warehouse Management ................................................................................................................60
8.4.3 WMS application components .........................................................................................................60
8.5 Transport Management System (TMS) ......................................................................... 61
8.5.1 TMS applications ..............................................................................................................................61
8.6 Internet-Driven LSPs .................................................................................................... 62
8.6.1 Logistics outsourcing ........................................................................................................................63
8.7 Steps in LRM Strategy Development ............................................................................ 63
8.8 Global Trade Management Systems (GTM) .................................................................. 63
Chapter 1 | Supply Chain Management: Architecting the Supply Chain for Competitive
Advantage ........................................................................................................................5
1.1 The Foundations of Supply Chain Management .............................................................. 5
1.2 The Rise of Supply Chain Management .......................................................................... 5
1.3 Defining Supply Chain Management .............................................................................. 6
1.3.1 Defining Logistics Management .........................................................................................................6
1.3.2 Defining Supply Chain Management..................................................................................................6
1.3.3 Redefining SCM ..................................................................................................................................6
1.3.4 Channel Configuration .......................................................................................................................8
1.4 Supply Chain Competencies ........................................................................................... 9
1.4.1 Customer Management .....................................................................................................................9
1.4.2 Supplier Management ........................................................................................................................9
1.4.3 Channel Alignment .............................................................................................................................9
1.4.4 Supply Chain Collaboration ..............................................................................................................10
1.4.5 Operations Excellence ......................................................................................................................10
1.4.6 Integrative Technologies ..................................................................................................................10
Chapter 2 | Supply Chain Technology Foundations: Exploring the Basics ..........................11
2.1 The Importance of Information Technology ................................................................. 11
2.1.1 Automate knowledge .......................................................................................................................11
2.1.2 Using Technology to Create Knowledge ..........................................................................................11
2.1.3 Using Technology to Integrate and Network Knowledge ................................................................11
2.2 Enterprise Information Technology Basics .................................................................... 11
2.2.1 Enterprise Technology Architecture ................................................................................................11
2.2.2 Enterprise Business Architecture .....................................................................................................12
2.2.3 Inter-Enterprise Business Architecture ............................................................................................12
2.3 New Technologies ....................................................................................................... 13
2.3.1 New Generation of Technology Enablers ........................................................................................13
2.3.2 Software-as-a-Service (SaaS)............................................................................................................13
2.3.3 Wireless Technology ........................................................................................................................13
2.3.4 Global Trade Management Solutions (GTM) ...................................................................................13
Chapter 3 | Supply Chain System Foundations: Understanding Today’s Technology
Solutions ........................................................................................................................15
3.1 Five Basic Functions of SC Information Systems ............................................................ 15
3.2 EBS System Components ............................................................................................. 15
3.3.1 Secondary Functional Areas of Operation .......................................................................................16
3.3.2 Middleware ......................................................................................................................................16
3.4 Standard EBS Systems ................................................................................................. 17
3.4.1 Enterprise Resource Planning ..........................................................................................................17
3.4.2 Basic ERP functions diagram ............................................................................................................17
3.4.3 Distribution enterprise system diagram ..........................................................................................18
3.4.4 EBS Benefits and Risks......................................................................................................................18
3.4.5 EBS Choices ......................................................................................................................................18
3.5 Advent of Internet Business Technologies .................................................................... 19
3.5.1 Defining Internet Business ...............................................................................................................19
, 3.5.2 Evolution of Internet Business .........................................................................................................19
3.6 Phases of Web-enabled e-Business .............................................................................. 20
3.6.1 Phase 1 | I-Marketing.......................................................................................................................20
3.6.2 Phase 2 | e-Commerce .....................................................................................................................20
3.6.3 Phase 3 | e-Business Marketplaces .................................................................................................21
3.6.4 Phase 4 | e-Collaboration Marketplaces .........................................................................................21
3.7 Today’s e-Business Marketplace – Summary ................................................................ 21
3.7.1 Customer Service-Driven Elements..................................................................................................22
3.7.2 Supply Chain Operations-Driven Elements ......................................................................................22
Chapter 4 | Technology-Driven Supply Chain Evolution: Building Lean, Adaptive, Demand-
Driven Supply Networks ..................................................................................................24
4.1 SCM Challenges ........................................................................................................... 24
4.2 The Lean Supply Chain ................................................................................................. 24
4.2.1 Anatomy of Lean Principles..............................................................................................................24
4.2.2 Lean SCM Technologies....................................................................................................................25
4.2.3 Cross-Enterprise Collaboration ........................................................................................................25
4.2.4 Lean SCM Implementation ...............................................................................................................26
4.2.5 Demand Management .....................................................................................................................26
4.3 Adaptive Supply Chains ............................................................................................... 26
4.3.1 Supply Chain Risk .............................................................................................................................27
4.3.2 Advent of the Adaptive Supply Chain ..............................................................................................27
4.3.3 Components of Adaptive Supply Chain Management .....................................................................27
4.3.4 Advantages of Adaptive Supply Chain Management.......................................................................27
4.4 Demand-Driven supply networks ................................................................................. 28
4.4.1 DDSN attributes ...............................................................................................................................28
4.4.2 Competencies ...................................................................................................................................28
4.4.3 Advantages of Demand-driven supply chain ...................................................................................29
4.4.4 Comparison Lean, Adaptive and Demand-driven supply chain .......................................................29
Chapter 5 | Customer and Service Management .............................................................30
5.1 Creating the Customer-Centric Supply Chain ................................................................ 30
5.2 Mapping the cluster of CRM components..................................................................... 30
5.3 Understanding Today’s Customer Dynamics................................................................. 31
5.3.1 The Whale Curve of Cumulative Profitability...................................................................................31
5.3.2 Customer Lifetime Value (CLV) ........................................................................................................31
5.4 Creating the Customer-Centric Organization ................................................................ 32
5.4 Applying Technology to CRM ....................................................................................... 33
5.4.1 CRM/E-CRM System Major Functions..............................................................................................33
1. Internet Sales.................................................................................................................. 33
2. Sales Force Automation (SFA) .......................................................................................... 33
3. E-CRM Marketing ............................................................................................................ 34
4. Customer Service Management (CSM) ............................................................................. 34
5. Partner Relationship Management (PRM) ........................................................................ 35
6. Electric Bill Presentment and Payment (EBPP).................................................................. 35
5.4.2 CRM Analytics...................................................................................................................................36
, 5.5 Implementing CRM ..................................................................................................... 36
5.6 New Concepts in Customer Management..................................................................... 36
5.6.1 Customer Experience Management (CEM)......................................................................................36
5.6.2 Merging CRM and CEM ....................................................................................................................36
5.6.3 Redefining CRM Technologies to Embrace CEM..............................................................................37
5.6.4 The Advent of Social Networking .....................................................................................................37
Lead-to-Cash Business Process ................................................................................................ 37
Contact-to-lead ...................................................................................................................... 39
Lead-to-opportunity ............................................................................................................... 39
Opportunity-to-quote............................................................................................................. 40
Quote-to-order ...................................................................................................................... 40
Order to cash ......................................................................................................................... 41
Chapter 6 | Manufacturing and Supply Chain Planning: Linking Product Design,
Manufacturing, and Planning to Increase Productivities ..................................................42
6.1 Manufacturing in the Age of Global Enterprise ............................................................. 42
6.2 Demand-driven Manufacturing .................................................................................... 42
6.3 Challenges to Manufacturing Infrastructure ................................................................. 43
6.4 Outsoucing and Supplier Partnership ........................................................................... 43
6.5 Changing Performance Targets .................................................................................... 43
6.5.1 The Future of Manufacturing ...........................................................................................................43
6.5.2 Impact of Technology on Manufacturing.........................................................................................44
6.5.3 Manufacturing Planning ...................................................................................................................44
6.5.4 Plant Maintenance and Quality Management .................................................................................44
6.5.5 Product Lifecycle Management (PLM) .............................................................................................44
6.5.5 Impact of Internet Networking Technologies ..................................................................................44
6.6 Collaborative Product Commerce (CPC)........................................................................ 45
6.6.1 Linking Supply Chain Design Capabilities .........................................................................................45
6.6.2 Contents of CPC................................................................................................................................45
6.7 Managing Manufacturing Planning Functions ............................................................... 45
6.8 Manufacturing Planning .............................................................................................. 46
6.8.1 Advanced Production and Scheduling Systems (APS)......................................................................46
6.8.2 SC Planning .......................................................................................................................................46
6.8.3 Collaborative Planning Forecasting and Replenishment (CPFR) ......................................................47
6.9 Manufacturing Execution System (MES) ............................................................................ 48
Chapter 7 | Supplier Relationship Management: Integrating Supplier into the Value Chain
......................................................................................................................................49
7.1 Purchasing .................................................................................................................. 49
7.2 Defining Purchasing and Supplier Relationship Management (SRM) ............................. 49
7.2.1 Components of SRM ........................................................................................................................49
7.2.2 Benefits of SRM ................................................................................................................................50
7.3 The Internet-Driven SRM Environment (E-SRM) ........................................................... 50
7.3.1 E-marketplace ..................................................................................................................................50
7.3.2 EBS Backbone functions ...................................................................................................................51
7.3.3 E-SRM Services Functions ................................................................................................................51
, 7.3.3 E-SRM Processing .............................................................................................................................52
7.3.4 e-SRM Technology Services .............................................................................................................52
7.4 Anatomy of the e-SRM Marketplace Exchange Environment ........................................ 52
7.5 Emergence of Today’s B2B Marketplace ....................................................................... 53
7.5.1 Defining the Trading Exchange ........................................................................................................53
7.5.2 Future of B2B e-Marketplaces .........................................................................................................53
7.6 Implementing e-SRM ................................................................................................... 53
Chapter 8 | Logistics Resource Management: Utilizing Technology to Enhance Logistics
Competitive Advantage ..................................................................................................55
8.1 Defining Logistics Resource Management (LRM) .......................................................... 55
8.1.1 Critical processes ..............................................................................................................................56
8.2 Process capabilities ..................................................................................................... 56
8.2.1 Logistics Performance Management ...............................................................................................56
8.2.2 Fulfillment Planning and Execution..................................................................................................57
8.2.3 Logistics Partnership Management..................................................................................................58
8.2.4 Shipment Visibility............................................................................................................................59
8.2.5 Fulfillment Event Management (SCEM) ...........................................................................................59
8.3 Defining LRM in the Age of Global Internet .................................................................. 59
8.4 Internet-Enabled LRM Technologies ............................................................................. 60
8.4.1 Enterprise Performance Measurement ...........................................................................................60
8.4.2 Warehouse Management ................................................................................................................60
8.4.3 WMS application components .........................................................................................................60
8.5 Transport Management System (TMS) ......................................................................... 61
8.5.1 TMS applications ..............................................................................................................................61
8.6 Internet-Driven LSPs .................................................................................................... 62
8.6.1 Logistics outsourcing ........................................................................................................................63
8.7 Steps in LRM Strategy Development ............................................................................ 63
8.8 Global Trade Management Systems (GTM) .................................................................. 63
