《物流与供应链管理》读书笔记英文版

《物流与供应链管理》(LOGISTICS AND SUPPLY CHAIN MANAGEMENT)

Capsule summary of the book：

The world changes unpredictably, which is dependent on the quick transformation of supply chain to adapt to the variational circumstances. This book focuses tightly on those variations mentioned above, emphasizing the problems that appear when enterprises attach importance to complicated management, as well as when forecast-driven business model transforms into demand-driven business model. Also, this book elaborates how to gives enterprises dominating and competitive superiority with effective logistics and supply chain management.

Chapter1 Logistics, the supply chain and competitive strategy

1.1 Supply chain management is a wider concept than logistics

One goal of supply chain management might be to reduce or eliminate the buffers of inventory that exist between organizations in a chain through the sharing of information on demand and current stock levels. This is the concept of ‘Co-Managed Inventory’ (CMI).

The focus of supply chain management is upon the management of relationships in order to achieve a more profitable outcome for all parties in the chain. This brings with it some significant challenges since there may be occasions when the narrow self-interest of one party has to be subsumed for the benefit of the chain as a whole.

1.2 Competitive advantage

At its most elemental, commercial success derives from either a cost advantage or a value advantage or, ideally, both. It is as simple as that – the most profitable competitor in any industry sector tends to be the lowest cost producer or the supplier providing a product with the greatest perceived differentiated values.

A useful way of examining the available options is to present them as a simple matrix.

Value advantage

Cost advantage

To summarize, those organizations that will be the leaders in the markets of the future will be those that have sought and achieved the twin peaks of excellence: they have gained both cost leadership and service leadership.

1.3 The supply chain becomes the value chain

Organizations should look at each activity in their value chain and assess whether they have a real competitive advantage in the activity. If they do not, the argument goes, then perhaps they

should consider outsourcing that activity to a partner who can provide that cost or value advantage.

1.4 The mission of logistics management

The scope of logistics spans the organization, from the management of raw materials through to the delivery of the final product.

The last decade has seen the rapid introduction of flexible manufacturing systems (FMS), of new approaches to inventory based on materials requirements planning (MRP) and just-in-time (JIT) methods and, perhaps most important of all, a sustained emphasis on total quality management (TQM).

1.5 The changing competitive environment

●The new rules of competition

●Globalization of industry

●Downward pressure on price

●Customers taking control

Summary:

This chapter familiarizes the reader with the tenets of competitive strategy and within them the vectors of strategic direction: cost and value advantage. Vertically integrated businesses continue to be dismembered, refocused and transformed into virtual ones held together not by ownership but by closely integrated core business processes and financial engineering. Instead of rivalry and mistrust within the supply chain, new competitive pressures are demanding speed and flexibility, which themselves require greater openness and trust. In fact the ability to manage process innovation and integration are becoming as important capabilities as product innovation.

Chapter2 T Logistics and customer value

2.1 Delivering customer value

Quality × Service

Customer value = ––––––––––––––––

Cost × Time

Quality: The functionality, performance and technical specification of the offer.

Service: The availability, support and commitment provided to the customer.

Cost: The customer’s transaction costs including price and life cycle costs.

Time: The time taken to respond to customer requirements, e.g. delivery lead times.

2.2 What is customer service?

Customer service could be examined under three headings:

1. Pre-transaction elements

Written statements of service policy, Accessibility, Organization structure, System flexibility.

2. Transaction elements

Order cycle time, Inventory availability, Order fill rate, Order status information.

3. Post-transaction elements