Handbook of Logistics and Supply Chain Management, Volume 2

578 Pages·2008·34.572 MB·578\578

by  Brewer, Ann M., Button, Kenneth J., Hensher, David A. (Eds.)

HANDBOOK
OF
LOGISTICS AND
SUPPLY-CHAIN
MANAGEMENT
Edited by
ANN M. BREWER
Institute of Transport Studies,
University of Sydney
KENNETH J. BUTTON
The School of Public Policy,
George Mason University
DAVID A. HENSHER
Institute of Transport Studies,
University of Sydney
United Kingdom - North America - Japan -
India - Malaysia - China
Emerald Group Publishing Limited
Howard House, Wagon Lane, Bingley BD 16 1W A, UK
Third edition 2008. Previous editions 1982, 1988
Copyright 0 2008 Emerald Group Publishing Limited
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"-.= when areaarina scholarlv
INVESTOR IN PEOPLE
INTRODUCTION TO THE SERIES
Transportation and logistics research has now reached maturity, with a solid
foundation of established methodology for professionals to turn to and for future
researchers and practitioners to build on. Elsevier is marking this stage in the life
of the subject by launching a landmark series of reference works: Elsevier’s
Handbooks in Transport. Comprising specially commissioned chapters from the
leading experts of their topics, each title in the series will encapsulate the essential
knowledge of a major area within transportation and logistics. To practitioners,
researchers and students alike, these books will be authoritative, accessible and
invaluable.
David A. Hensher
Kenneth J. Button
The Institute of
Logistics and Transport
This Handbook is supported by The Institute of Logistics and Transport (ILT).
The Institute is the professional body for individuals and organizations involved in
logistics, transport and supply-chain management. The Institute supports its
22 000 members and each sector, by actively promoting professional excellence
and best practice and encourages the adoption of efficient and sustainable
logistics and transport policies.
The Institute of Logistics and Transport
11/12 Buckingham Gate
London
SWlE 6LB
UK
Tel: [phone]
Fax: [phone]
Emaii: [email protected]
http://www.iolt.org.uk
CONTENTS
Introduction to the series V
Chapter 1
Introduction
ANN M. BREWER, KENNETH J. BUTTON and DAVID A. HENSHER
1. Introduction
2. How is the new economy different from the old view?
3. What is knowledge in the economy?
4. The Handbook
Part 1. Globalization and International Perspectives 9
Chapter 2
Perspectives on Global Performance Issues
TREVOR D. HEAVER 11
1. Introduction 11
2. Logistics service and performance measurement 12
2.1. The aspects of logistics in an economy 13
2.2. The multifaceted and intangible nature of logistics 14
3. Types of performance measure 14
3.1. The use of input and output data 15
3.2. The sources of data 16
3.3. The purposes of performance measurement 17
3.4. Benchmarking 18
4. Performance measurement at different levels 18
4.1. Performance measurement at the micro level 19
4.2. Performance at the macro level 20
5. Issues in the pursuit of good logistics performance 22
5.1. The roles of public policy in logistics 23
5.2. The roles of co-operation and rivalry among companies 25
5.3. Human resource capabilities and information technology 27
6. Conclusion 27
References 28
...
Contents
Vlll
Chapter 3
European Transport: Insights and Challenges
CEES RUIJGROK 29
1. Introduction 29
2. Trends in transport and logistics 31
2.1. Major European trends and their impact on logistics and transport 31
2.2. Logistics trends in Europe 35
3. Expectations and challenges 42
3.1. Enlargement of the European Union 42
3.2. Infrastructure, regional economies, and the environment 43
3.3. The implementation of EU policy 44
3.4. Development of markets 44
References 45
Chapter 4
North America: Insights and Challenges
THOMAS M. CORSI and SANDOR BOYSON 47
1. Evolving logistics best practices 47
2. North American supply chain leaders 50
2.1. Federal Express 50
2.2. Sun Microsystems 50
2.3. Cisco Systems 51
3. Major gaps between leaders and the rest of corporate America 52
4. Bridging the gap: diffusion of the net-centric supply chain 53
4.1. Greater use of third-party logistics for out-sourcing 54
4.2. Rise of the applications service providers 54
4.3. Advances in middleware 55
4.4. Electronic marketplaces/exchanges 56
5. Aview to the future 57
References 58
Chapter 5
International Logistics: A Continuous Search for Competitiveness
HILDE MEERSMAN and EDDY VAN DE VOORDE 61
1. Introduction 61
2. International logistics: what’s in a name? 66
3. Altered environmental factors 68
3.1. Globalization of the production process 68
3.2. Growing international trade 69
3.3. The emergence of supply chain management 71
3.4. Time-based competition (TBC) 71
3.5. Growing global e-commerce 72
Contents ix
4. Consequences for market players 73
5. Conclusion 76
References 76
Part 2. Supply Chain Management 79
Chapter 6
The Development of Thinking in Supply Chain and Logistics Management
DARREN HALL and ALAN BRAITHWAITE 81
1. The significance of supply chain management 81
1.1. A matter of definition 82
1.2. The layout of this chapter 83
2. The precursor to supply chain management: functional excellence
and its inadequacies 83
2.1. Operations research and manufacturing systems 84
2.2. Materials management 84
2.3. Quality 85
2.4. Purchasing and sourcing strategy 86
3. Leanness: the first supply chain agenda 87
3.1. Muda and supply chain management 87
3.2. Time compression 89
3.3. Push and pull supply chains 90
4. The structure of supply chains 92
4.1. Western and Japanese hierarchies 92
4.2. Network supply structures 94
5. Enlightenment at last, but what is next? 95
References 97
Chapter 7
The Supply Chain Management and Logistics Controversy
DOUGLAS M. LAMBERT 99
1. Introduction 99
2. SCM versus logistics 100
3. The marketing perspective 101
4. A conceptual framework of supply chain management 103
4.1. Supply chain network structure 104
4.2. Identifying supply chain members 105
4.3. The structural dimensions of the network 106
5. Supply chain business processes 107
5.1. Customer relationship management process 108
5.2. Customer service management process 108
Contents
X
109
5.3. Demand management process
109
5.4. Customer order fulfillment process
5.5. Manufacturing flow management process 109
110
5.6. Procurement process
110
5.7. Product development and commercialization
111
5.8. Returns process
6. Types of business process links 111
112
6.1. Managed process links
112
6.2. Monitored process links
112
6.3. Not-managed process links
112
6.4. Non-member process links
7. Business process chains 114
8. The management components of supply chain management 116
9. Mapping the supply chain 119
10. Re-engineering improvement into the supply chain 120
11. Implementing integrated supply chain management 121
12. Conclusions 123
References 125
Chapter 8
The Concept of Value: Symbolic Artifact or Useful Tool?
127
ANN M. BREWER
1. Introduction 127
127
1.1. Defining value
128
1.2. Strategic value management
2. The industry view 129
129
2.1. Value chain
130
2.2. Value creation
130
2.3. Shareholder value
3. The resource-based view 131
3.1. Relationship value 131
4. Is value management simply symbolic artifact or useful tool? 136
5. Conclusion 137
References 138
Chapter 9
Intermodal Transportation
141
BRIAN SLACK
1. Introduction 141
2. Definitions 141
3. Origins of intermodal transport 142
Contents xi
4. The role of containerization in contemporary intermodal
transportation 144
5. Implications of the container 147
5.1. Terminal activities are highly capitalized 147
147
5.2. Hubbing
5.3. Massive increase in site requirements for intermodal terminals 148
5.4. Scale economies in ships, railways, and planes 148
5.5. Restructuring of the container industry 148
6. Organizational challenges to intermodal transportation 149
150
6.1. Liability
150
6.2. Documentation
150
6.3. Intermodal intermediaries
151
6.4. Regulatory issues
152
6.5. Intermodal futures
References 154
Part 3. Logistics Management 155
Chapter 10
Integrated Logistics Strategies
ALAN McKINNON 157
1. Introduction 157
2. A brief history of logistical integration 158
3. Strategy formulation 162
4. Corporate goals 162
5. Value enhancement 163
5.1. Product diversification 163
5.2. Development of higher value products 164
5.3. Improved service quality 164
6. Cost reduction 164
7. Logistical strategies 165
8. The role of freight transport with integrated logistics strategies 167
9. Conclusion 168
References 168
Chapter I I
Lean Logistics
PETER HINES, DANIEL JONES and NICK RICH 171
1. Introduction 171
2. Problem definition 171
3. Anew logic 173
4. A distribution example: Toyota parts supply system 176
xii Contents
177
4.1. Manufacturing: Stamping and chroming
177
4.2. Delivery
178
4.3. Ordering
178
4.4. Warehouse management
179
4.5. Dealers
179
4.6. Network structure
5. Targeting improvements within the lean enterprise 180
180
5.1. Process activity mapping
181
5.2. Supply chain response matrix
184
5.3. Production variety funnel
185
5.4. Quality filter mapping
187
5.5. Demand amplification mapping
188
5.6. Decision point analysis
189
5.7. Physical structure
190
5.8. Summary
6. A distribution case 190
7. Where do we go from here? 192
References 193
Chapter 12
Inventory Management
195
DONALD WATERS
1. Introduction 195
2. Stocks and inventories 195
3. Objectives of inventory management 196
4. Scientific inventory control 198
5. Periodic review systems 199
6. Dependent demand inventory systems 20 1
7. Just-in-time operations 204
8. Systems with pull 205
9. Reducing stocks in the supply chain 206
10. Changes in aggregate stocks 208
11. Review 210
References 21 1
Chapter 13
Just-in-time
213
SAMANTHA Y. TAYLOR
1. The just-in-time philosophy 213
2. Development of JIT 214
3. The aggregate effects of JIT and transportation 216
4. The logistics of transportation 218