Managing Supply Chains A Logistics Approach 9th Edition Pdf Chapter 2
Indira Rossetto
John Langley, Professor of Supply Chain Management and Director of Supply Chain Executive Programs at the Georgia Institute of Technology, is actively involved in supply chain management and business logistics. His professional involvement includes supply chain strategy, supply chain relationships, and outsourcing of logistics services. Dr. Langley received a BS degree in mathematics, an MBA degree in finance, and a PhD degree in logistics management, all from Penn State University. Dr. Langley has coauthored numerous books and is a consultant and advisor to business firms and serves on the board of directors of UTi Worldwide Inc., Forward Air Corporation, and Averitt Express, Inc.
managing supply chains a logistics approach 9th edition pdf chapter 2
Download Zip ===== https://gohhs.com/2yVS2t
Since 1963, the Council of Supply Chain Management Professionals (CSCMP) has been providing networking, career development, and educational opportunities to the logistics and supply chain management community.
This chapter defines the field of Disaster Response Logistics (DRL) and provides a comprehensive overview of the wide range of emergency functions that are performed as part of DRL. Using this classification of emergency functions, the authors identify the emergency functions where supply chain and operations management could play an important role. Then, the authors proceed to outline the corresponding research needs. The resulting set of research needs provide guidance to new entrants to disaster response logistics, and to individuals interested in exploring under-studied subjects, about areas where research is lacking.
The pandemic continues to offer significant challenges for supply chains globally. Even in 2022, national lockdowns slow or even temporarily stop the flow of raw materials and finished goods, disrupting manufacturing as a result. However, the pandemic has not necessarily created any new challenges for supply chains. In some areas, it brought to light previously unseen vulnerabilities including staff shortages and losses due to closures. But overall, it has accelerated and magnified problems that already existed in the supply chain.
The pandemic has indeed accelerated many preexisting trends, and supply chain is no exception: Our 2020 survey found that 64% of surveyed supply chain executives say digital transformation will accelerate due to the pandemic. And our 2022 research report shows the race is on for digital enablement and automation: by 2035, 45% of supply chains are expected to be mostly autonomous (e.g., robots in warehouses and stores, driverless forklifts and trucks, delivery drones and fully automated planning).
Looking forward, multiple disruptions are happening more quickly and factors such as geopolitical risks, cyber threats and economic instability are continuing to put pressure on supply chains. So the supply chain of the future will need to be agile, flexible, efficient, resilient and digitally networked for improved visibility. Organizations, therefore, should focus on five priorities for recovery and beyond.
Competition in the 21st century requires an approach that considers the supply chain concept in tandem with the value-creation process within a firm: best value supply chains. These chains do not fixate on speed or on any other single metric. Instead, relative to their peers, best value supply chains focus on the total value added to the customer.
Adaptability refers to a willingness and capacity to reshape supply chains when necessary. Generally, creating one supply chain for a customer is desired because this helps minimize costs. Adaptable firms realize that this is not always a best value solution, however. For example, in the defense industry, the U.S. Army requires one class of weapon simulators to be repaired within eight hours, while another class of items can be repaired and returned within one month. To service these varying requirements efficiently and effectively, Computer Science Corporation (the firm whose supply chains maintain the equipment) must devise adaptable supply chains. In this case, spare parts inventory is positioned in proximity to the class of simulators requiring quick turnaround, while the less-time-sensitive devices are sent to a centralized repair facility. This supply chain configuration allows Computer Science Corporation to satisfy customer demands while avoiding the excess costs that would be involved in localizing all repair activities.
Seaports are functioning as platforms within global supply chains and global production networks. These supply chains are highly dynamic as they react to changes in global trade patterns, consumer preferences, and advances in supply chain management and information technology.
Ports are a nexus in supply chains as they support the interaction between global supply chains and regional production and consumption markets. Global supply chains have become complex, pressuring the logistics industry to simultaneously improve their costs, performance, and resilience to disruptions. Logistics services that still offer value may experience a debasement and become basic services, only generating a small margin. This is especially the case for physical added value.
Within supply chains, corporations interact with external suppliers, internal departments, external distributors, and customers. The successful management of a supply chain is influenced by customer expectations, globalization, technological innovations, government regulation, competition, and sustainability concerns.
One of the main basic driving forces of change in the port industry emerges from globalization and the structural shift from supply-driven to demand-driven economies. The supply-driven economy was based on economies of scale in production, standardization, and mass consumption of standard products. This approach was scrutinized as productivity increases linked to economies of scale met their structural boundaries and as a growing individualism began to have an impact on consumption patterns. The outcome was a shift to a more demand-driven economic system, combined with global production networks on the supply side of the markets.
Consolidation in the logistics sector will result in a smaller number of companies that will empower the supply chain to support increasingly efficient ICT systems. The data component will leverage performant and pro-active service providers to transform into companies with a new outlook on logistics services. Next to an increasing number of traditional activities being outsourced, such as transport, warehousing, and various types of value-added services, the presence of collaboration platforms will capacitate certain service providers to develop new types of logistics services.
The security of supply will become increasingly important. The resilience of the supply chain is becoming a crucial element in dealing with ever more present supply chain disruptions due to local political instability, natural disasters, acts of terrorism, etc. Supply chains will need to have redundancy built-in. Supply chains will be designed for resilience. This will result in increased supply chain visibility and data sharing between supply chain stakeholders.
The systematic use of greener alternatives for logistics needs to be developed as environmental pressures from society increase, including through more stringent regulations and consumer behavior changes. This impacts the way ports operate and how they are linked, which is associated with a re-engineering of supply chains in favor of modal shift and synchromodality. This results in the development of sustainable hubs and corridors along which new supply chain networks need to be developed. Corporations are adapting their business models to include sustainability criteria in their procurement and operations, which impacts the related supply chains through the setting up of Green Supply Chain Management strategies.
An important part of the success of the circular economy hinges on the way logistics will enable the transparency needed to set up efficient and integrated fully circular supply chain networks. Next to the physical aspect of integrating supply chain flows to maximize circular economy opportunities, end-to-end integration of supply chain processes will be crucial. Thus, the circular economy offers new opportunities for shipping and logistics service providers and challenges them to collaborate with industry stakeholders.
A logistics company following a differentiation strategy might create an environment in which the actual or perceived cost for a buyer of changing the source of supply of a service is high. In these circumstances, the customer might depend on the supplier for particular services, or the benefits of switching to another supplier might not be worth the cost or risk. A port or maritime shipping company that offers unique and integrated tailor-made services to its customers has more chances of limiting the footloose behavior of that customer and, as such, increases customer loyalty. If a company succeeds in becoming an industry standard, other businesses typically have to conform to that standard to remain competitive.
Innovative corporations are taking a broader view of their business segments they seek to control and manage. As the ambition of global corporations often exceeds their capability and resources, outsourcing of logistics functions can be an important strategic option. Outsourcing enables a producer to transform fixed costs into variable costs, freeing internal resources for investments in core activities. Four basic forms of outsourcing can be distinguished concerning supply chain management:
A 3PL is an asset-based company that offers logistics and supply chain management services to its customers (manufacturers and retailers). It commonly owns assets such as distribution centers and transport modes.
aa06259810