Supply Chain Management Best Practices, Second Edition
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More About This Title Supply Chain Management Best Practices, Second Edition


Learn what it takes to develop and have a "best-in-class" supply chain

This new edition shows you how to build supply chains that work by illustrating how leading companies are doing it. Identifying world-class supply chains in more than a dozen different industries and explaining in detail how these companies got to where they are, this essential book reveals the proven strategies, solutions, and performance metrics used by leading companies to design their extended enterprises.

  • Identifies proven strategies, solutions, and performance metrics for supply chain management best practice benchmarks
  • Shows how to manage supply chains in a global marketplace and how to choose third-party providers
  • New edition includes new chapters on green supply chains and lean supply chains, and expanded analysis of emerging technologies
  • Includes coverage of supply chain metrics, planning and forecasting, procurement, manufacturing, transportation, globalization, customer service, collaboration, security, and workforce management
  • Written by the Editorial Director of Penton Media's Supply Chain Group and a Contributing Editor to IndustryWeek magazine

It also offers guidance on the latest technology, green supply chains, going lean, how to choose third-party logistics providers, and how to manage the supply chain in a global environment.


DAVID BLANCHARD is an award-winning journalist and the Editorial Director and Associate Publisher of Penton Media's Supply Chain Group. He has served as editor-in-chief of several Penton magazines, including IndustryWeek, the leading publication for manufacturing professionals, Logistics Today, and Supply Chain Technology News. He has also launched and edited numerous print and online publications covering the supply chain, transportation, manufacturing, and computer industries. He is a frequent speaker at major supply chain industry events. He lives in a suburb of Cleveland, Ohio.


Preface to the Second Edition xv

Acknowledgments xvii


CHAPTER 1 If Supply Chain Is the Answer, Then What’s the Question? 3

Flashpoints 3

You Knew This Job Was Dangerous When You Took It 3

The Big Picture 5

The Supply Chain’s Back Story 6

Roadblocks on the Supply Chain Path 8

Separating the Good from the Best 10

CHAPTER 2 Anatomy of a Supply Chain 13

Flashpoints 13

Aerospace: Changing the Game, for Better or Worse 14

Automotive: Building Customer Loyalty for the Long Term 16

Chemicals: Finding the Right Supply Chain Formula 17

Consumer Packaged Goods: The Moment of Truth 18

Food and Beverage: Cutting Out the Middleman 20

High Tech/Electronics: Zero Latency 21

Pharmaceuticals: Fighting Counterfeiters with RFID 22

Retail: Customer Centricity 24

CHAPTER 3 Supply Chain Metrics: Measuring Up to High Standards 27

Flashpoints 27

How to Prevent a Supply Chain Heart Attack 28

What Makes a Supply Chain Leader? 29

Measure Satisfaction 31

Everybody’s Talking about Benchmarking 32

Do the Right Things 33

Supply Chain Checkup 33

Time for a Turnaround 34

Learn the SCOR 35

SCM for Dummies 36

Follow the Roadmap 37

Make It All Meaningful 38


CHAPTER 4 Planning and Forecasting: Headed for the Future 43

Flashpoints 43

A Bias against Good Plans 45

From Soup to S&OP 46

No Time Like the Real Time 47

The Truth Plays Out 48

End-to-End Integration 49

The First Shall Be First 50

Analyze This 52

A Happy Ending 53

CHAPTER 5 Procurement: Go Right to the Source 55

Flashpoints 55

Giving Procurement Its Due 56

Managing the Changes 57

Keep Your Friends Close and Your Suppliers Closer 58

Looking Backward to See Forward 59

Working for Every Penny 60

Ensuring a Healthy Supply Chain 61

The War on Complexity 62

It Seemed like a Good Idea at the Time 63

An Online Car Wreck 64

A Rating Service for Buyers and Sellers 65

CHAPTER 6 Manufacturing: Supply Chain on the Make 67

Flashpoints 67

A Direct Line to Supply Chain Success 68

Better Decisions for the Customer 70

Tying It All Together 71

Digital Supply Chains 71

Collaborating on Product Designs 73

Nearly Perfect 75

The Future of Manufacturing 77

CHAPTER 7 Transportation: Logistics à la Mode 79

Flashpoints 79

Riding the Roads 80

Regulations and Deregulation 81

Fuel for Thought 82

A Capacity for Change 83

Know Thyself, and Thy Carrier Too 84

How to Achieve Sustainable Savings 85

Collaboration Is a Two-Way Street 86

A Carrier by Any Other Name 87

Automate to Consolidate 88

Get It There on Time 90

CHAPTER 8 Distribution and Warehousing: Going with the Flow 91

Flashpoints 91

Virtual Inventory 92

Cross-Docking, Compliance, and Collaboration 94

Handle with Care 95

Where the Rubber Meets the Load 97

Can You Hear Me Now? 98

Wireless in the Warehouse 99

Turn, Turn, Turn 100

Half Full or Half Empty? 101

How to Better Manage Your Warehouse 102

CHAPTER 9 Site Selection: Location, Location, Location 105

Flashpoints 105

Striking the Proper Balance 107

A Site for Sore Eyes 108

Finding the Right Place 109

A Look at Gillette’s Distribution Network 110

Cost versus Service 111

Match Your Network to Your Business Strategy 112

How Much Is Too Much? 113

Weighing the Intangibles 114

Quality over Quantity 115

A Quick Guide to Site Selection 116

CHAPTER 10 Globalization: It’s a Not-So-Small World 119

Flashpoints 119

Playing by Somebody Else’s Rules 120

Develop a Global Vision 121

Friendly Nations 122

“Low Cost” Sometimes Means “Poor Service” 124

Living in a Somewhat Flat World 125

Keeping an Eye on China 126

Take a Look for Yourself 128

Finding the Next Global Hot Spot 129

The Need for Supply Chain Visibility 130

Closer to Home 131

CHAPTER 11 Customer Service: Keeping the Customer Satisfied 133

Flashpoints 133

The Perfect Order 134

The High Cost of Imperfection 135

One Good Return Deserves Another 136

Supply Chain in Reverse 138

Managing the Relationship 140

Money in the Bank 142

Supply Chain at Your Service 143

A Culture of Customer Satisfaction 144

Part III Supply Chain Strategies 145

CHAPTER 12 3PLs: When You’d Rather Not Do It Yourself 147

Flashpoints 147

A Shift to the Supply Chain Side 148

Letting Somebody Else Do It 149

Supply Chain Essentials and Nonessentials 150

Finding Your Core Competency 151

Square Pegs And Round Holes 153

Think Strategically 153

The Financial Impact of Outsourcing 154

Staying in Touch 155

Going beyond the 3PL Model 156

Outpacing the Competition 157

CHAPTER 13 Collaboration: Extending the Enterprise 159

Flashpoints 159

Mutually Beneficial Relationships 160

Winning Small Victories 161

Respecting Your Partners 162

A Better Way to Sell Mouthwash 163

A Nine-Step Program for CPFR 165

Great Expectations, So-So Results 165

More Reliability and Better Service 167

Challenges in Supplier Management 169

How to Get the Most Out of a Relationship 170

CHAPTER 14 Security: Seeking Shelter from Supply Chain Storms 173

Flashpoints 173

“It’ll Never Happen Here” 174

Customs-Trade Partnership against Terrorism 176

Getting Countries to Talk to Each Other 177

Sometimes Low Tech Is as Good as High Tech 178

Taking Responsibility for Your Supply Chain 179

Securing the Supply Chain 181

10+2 182

Taking Steps toward Effective Compliance 183

Supply Chains at Risk 184

An Investment Worth Making 186

CHAPTER 15 RFID: A Game of Tags 189

Flashpoints 189

The ABCs of RFID 190

Proactive Replenishment 192

In Search of Payback 193

Tagging till the Cows Come Home 194

Taking RFID Seriously 196

Work the Bugs Out 197

A Matter of Privacy 198

No Need to Be Passive 199

CHAPTER 16 Green Supply Chains: It’s Not Easy Going Green 203

Flashpoints 203

The Elephant in the Room 204

Justifying the Cost 205

Look for the Green Label 206

The Carbon Footprint of a Banana 207

Sustainability throughout the Supply Chain 209

Good to Green 209

How Big Blue Went Green 211

Eco-Friendly Strategies 212

Low-Hanging Fruit 213

CHAPTER 17 Continuous Improvement: Lean on Me 215

Flashpoints 215

From Push to Pull 217

The Toyota Way 218

Don’t Settle for Occasional Improvement 219

Lean Principles 221

Lean, Mean Flying Machine 222

The Value of Teamwork 224

Leaning in the Right Direction 225

CHAPTER 18 The Supply Chain Profession: What Keeps You Up at Night? 227

Flashpoints 227

Talent Search 228

Hiring Problem Solvers 231

Training the Next Generation 232

Optimizing the Workforce 233

What Keeps You Up at Night? 234

Gray Matters 235

The Secret to Supply Chain Success 236

Notes 241

About the Author 261

Index 263