Retail Supply Chain Management
Authors: James B. Ayers-Mary Ann Odegaard
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http://www.amazon.com/Retail-Supply-Management-Resource-eboo...
A consequence of business specialization is the implementation of weak processes that cross departmental and corporate boundaries. Supply chain management (SCM) addresses this issue by requiring a process view that reaches across these confines. Due to globalization and a competitive environment, those within the retail supply chains are particularly vulnerable. New ways of managing require an understanding of the entire chain by participants at every level-retailer, distributor, manufacturer, and service provider.
Demonstrating the link between markets, products, and product strategies in the supply chain, Retail Supply Chain Management provides the knowledge and skills required to thrive in this environment. It demonstrates the connection between the processes involved in manufacturing, distribution, warehousing, and transportation, and how to use these connections to their best advantage.
The book offers fresh insights into the financial and operational tools that are available and how to use these tools in order to deliver quality products in the most cost efficient manner. The authors' collaboration brings together expertise from both operations and retail business management, matching the solutions available from SCM with the challenges and opportunities that arise in the retail industry. The text also includes case studies and experiences from leaders in SCM as well as hard lessons learned by those trying to lead. These examples illustrate specific solutions to common situations in a retail supply chain.
Contents
Preface
Acknowledgments
About the Authors
Section 1 The Retail Supply Chain
1 Defining the Retail Supply Chain
1.1 More Than Stores
1.2 Defining the Terms: Supply Chain and Supply ChainManagement
1.3 The Importance of Customer Segments
1.4 Adding Value Along the Chain
2 Success in a Retail BusinessAnalysis
2.1.1 Retail Income Statements
2.1.2 Retail Balance Sheets
2.1.3 Financial Analysis
2.2 Merchandise Replenishment and Budgeting
2.2.1 The Importance of Replenishment Models in Retail Supply Chains
2.2.2 Merchandise Types—Staple versus Fashion
2.2.2.1 Staple or Functional Products
2.2.2.2 Fashion or Innovative Products
2.2.2.3 Merchandise Budget: An Example
2.2.2.4 Merchandise Replenishment Model
2.2.2.5 Merchandise Budget Follow-Up
2.3 Preparing a Merchandise Budget
2.4 Summary
3 Types of Retail Supply Chain Businesses
3.1 Supply Chain Component Data
3.2 Retail Supply Chains in the United States
3.3 Selected Supply Chain Company Returns
3.4 Summary
4 A Changing World: Moving Toward Comparative Advantage
4.1 Primer on Comparative Advantage
4.2 Concept of istance
4.3 Applying the framework
4.3.1 Revenue
4.3.2 Workforce Costs
4.3.3 Fixed Costs
4.3.4 Purchased Item Costs
4.4 Summary
5 Corporate Social Responsibility, Sustainability, and the Retail Industry
5.1 CSR at Retailers
5.2 CSR Link to Strategy
5.2.1 Link between CSR and Competitive Advantage
5.2.2 Private Companies and Social Issues
5.3 framework for Classifying CSR Activities
5.4 Boots Ltd.—CSR/Financial Report Convergence
5.5 Summary
Section 2 Forces Shaping the Retail Supply Chain Environment
6 Drivers of Retail Supply Chain Change
6.1 Drivers Are Important
6.2 Innovation Driver
6.3 Extended Product Design
6.4 Globalization
6.5 Flexibility Imperative—the Ultimate Capability
6.5.1 Management Mindset
6.5.2 Defining Needed Flexibility
6.6 Process-Centered Management
6.7 Collaboration
6.7.1 Definitions of Collaboration
6.7.2 Stage 3 (Multicompany) SCM
6.8 Know Your Drivers
7 Paths to the Customer
7.1 Meeting Market Needs—Dimensions
7.2 Procter & Gamble Case Study
7.3 Role of Specifications
7.4 Nature of Demand
7.5 Quality Function Deployment (QFD) Tool
7.5.1 QFD Overview
7.5.2 Supply Chain QFD Example
7.6 Summary
8 Supply Chain Risk
8.1 Location/Trading-Partner Selection Risks
8.2 External Supply Chain Production/Logistics Risks
8.3 Internal Supply Chain Production/Logistics Risks
8.4 Supply Chain Risk—Summary
9 Retail Supply Chain Metrics
9.1 Metrics Problems
9.2 Alignment with Strategy
9.3 Definitions of Supply Chain Success
9.4 Mid-Tier and Ground-Level Metrics
9.4.1 Service Metrics
9.4.2 Operating Metrics
9.4.3 Financial Metrics
9.5 Supply Chain Metrics—Summary
10 Meeting the Needs of Supply Chain Decision Makers
10.1 New Decisions at Herman Miller
10.2 Proactive Decision Making
10.3 Applications for Information Technology
10.4 Assessing the Need for Information
10.5 Meeting Decision-Maker Needs—Summary
Section 3 Retail Strategy and Supply Chains
11 Product Types—Value to the Customer
11.1 The Product Life Cycle
11.2 Innovative and Functional Products
11.3 Market Mediation Costs
11.4 Customer Value and Product Types—Summary
12 Businesses Inside the Business
12.1 The Conventional Chain
12.2 Market Segments
12.3 Spheres—Modules for Supply Chain Design
12.4 Summary—Businesses Inside the Business
13 Activity Systems and Process Definition
13.1 Activity System—the IKEA Example
13.1.1 Make Choices, Develop Themes
13.1.2 Define Activities
13.1.3 Draw Links
13.2 Enabling Spheres and Supply Chain Processes
13.3 Defining Processes
13.4 Activity Systems and Process Definition—Summary
14 Retail Supply Chain Management—Skills Required
14.1 Five Tasks for SCM Excellence
14.2 Assessing Retail SCM Skills
14.3 Summary—SCM Skills
Section 4 Retail Supply Chain Pr ocess Improvement
15 Organizing to Improve Retail Supply Chain Performance
15.1 West Marine Case
15.1.1 West Marine As-Is
15.1.2 Evaluation of the As-Is
15.1.3 Destination (To-Be)
15.1.4 Barriers to Success
15.1.5 Pathway to Change
15.2 Continuous Improvement Cycles
15.2.1 PDCA in a Retail Supply Chain
15.2.2 DMAIC
15.2.3 CPFR Model
15.3 S&OP Process and Functional Roles
15.5 Organizing to Improve Performance—Summary
16 Collaboration with Supply Chain Partners
16.1 Supply Chain Roles
16.1.1 Fewer but Broader
16.1.2 Collaboration Landscape
16.2 Core Competency
16.3 Partnerships Vocabulary
16.3.1 Partnership Purpose
16.3.2 Partnership Direction
16.3.3 Partnership Choice
16.4 Organizing a Partnership
16.5 Partner Collaboration—Summary
17 The Demand-Driven Supply Chain
17.1 Vision for the Demand-Driven Supply Chain
17.1.1 Documenting the Current Situation
17.1.2 Product Types
17.1.3 Barriers to the Demand-Driven Supply Chain
17.1.4 The To-Be and Potential To-Be Demand Driven
17.2 The Path from Forecast-Driven to Demand-Driven Supply Chain
17.2.1 Continuous Improvement Model for the Demand-Driven Supply Chain
17.2.2 The 3C Alternative to MRPII
17.3 Demand-Driven Tools and Techniques
17.3.1 Operating Improvements
17.3.1.1 Lean Supply Chain Approaches
17.3.1.2 Constraint Management
17.3.1.3 Quality Improvements
17.3.1.4 Design for Commonality
17.3.2 Management Improvements
17.3.2.1 Synchronization and Fixed-Interval Planning
17.3.2.2 Simplification
17.4 Sponsoring the Demand-Driven Supply Chain
17.5 Demand-Driven Supply Chain—Summary
18 Product Tracking Along Retail Supply Chains
18.1 Low-Tech Retailing
18.2 Beyond Basic Bar Codes
18.3 Radio Frequency Identification
18.3.1 The Retail Application
18.3.2 Active RFID
18.3.3 RFID Applications
18.4 Tracking in Transit
18.5 The Future of Product Tracking
18.5.1 Case Study for RFID Application
18.5.2 A Future RTLS System
18.6 Summary
Section 5 Achieving Financial Success in the Retail Supply Chain
19 Understanding Supply Chain Costs
19.1 Barriers to Cost Visibility
19.1.1 Understanding Costs Is Complicated
19.1.2 Partners Must Share Information
19.1.3 ABC Needs a “Makeover”
19.2 Goal: Activity-Based Costing by Product
19.2.1 The Starting Point (I-A)
19.2.2 Department Costs with Capital Recovery (II-B)
19.2.3 Multicompany Process Cost (III-C)
19.2.3.1 Set Process Boundaries
19.2.3.2 Document Process Flow
19.2.3.3 Decide What Cost Categories to Include
19.2.3.4 Assign Costs to Process Steps
19.2.3.5 Analyze Findings
19.3 Activity-Based Costs by Product (IV-D)
19.3.1 Gather Product Line Information
19.3.2 Adjust Unit Costs and Volumes Through Engineering Studies
19.3.3 Calculate Product Line Profitability.
19.4 Understanding Costs—Summary
20 Barriers to Addressing Root Causes for Cost
20.1 Root Causes for Supply Chain Cost
20.2 No Focus
20.2.1 Project Management Basics
20.2.2 Team Building
20.3 Confusion
20.3.1 Promoting SCM
20.3.2 Graduated Approach
20.4 Motivators
20.4.1 Measures
20.4.2 Flexibility Defined
20.5 Boundaries
20.5.1 Divide and Conquer
20.5.2 Multicompany Participation
20.6 Rigidity
20.6.1 Mindset Changes
20.6.2 Changing the Project
20.7 Barriers to Cost Reduction—Summary
21 Multicompany Collaboration to Reduce Costs—Who, What, AND How
21.1 Case Study—Frozen and Refrigerated Foods “Cold Chain”
21.2 Recognize Root Causes
21.3 Types of Collaboration
21.4 Who—Rationalizing the Customer/Supplier Base
21.5 What and How—Pursuing Partnership Opportunities
21.5.1 Type A: One-Way Data Exchange Collaboration
21.5.2 Type B: Two-Way Data Exchange Collaboration
21.5.3 Cooperative Collaboration
21.5.4 Cognitive Collaboration
21.6 Multicompany Collaboration to Reduce Cost—Summary
22 Retail Return Loops
22.1 GENCO Case Study—the Rise of the Return Loop
22.2 Types of Returns
22.3 Opportunities in Returns
22.3.1 Reduced Returns
22.3.2 Improved Customer Service
22.3.3 Collaboration with Partners
22.3.4 Customer Feedback
22.3.5 Material Source
22.3.6 Environmental Mitigation
22.3.7 Additional Business
22.3.8 Cash-to-Cash Cycle Reduction
22.3.9 Process Standardization
22.4 Return Loops—Summary MsSVig
Authors: James B. Ayers-Mary Ann Odegaard
http://www.amazon.com/Retail-Supply-Management-Resource-eboo...
A consequence of business specialization is the implementation of weak processes that cross departmental and corporate boundaries. Supply chain management (SCM) addresses this issue by requiring a process view that reaches across these confines. Due to globalization and a competitive environment, those within the retail supply chains are particularly vulnerable. New ways of managing require an understanding of the entire chain by participants at every level-retailer, distributor, manufacturer, and service provider.
Demonstrating the link between markets, products, and product strategies in the supply chain, Retail Supply Chain Management provides the knowledge and skills required to thrive in this environment. It demonstrates the connection between the processes involved in manufacturing, distribution, warehousing, and transportation, and how to use these connections to their best advantage.
The book offers fresh insights into the financial and operational tools that are available and how to use these tools in order to deliver quality products in the most cost efficient manner. The authors' collaboration brings together expertise from both operations and retail business management, matching the solutions available from SCM with the challenges and opportunities that arise in the retail industry. The text also includes case studies and experiences from leaders in SCM as well as hard lessons learned by those trying to lead. These examples illustrate specific solutions to common situations in a retail supply chain.
Contents
Preface
Acknowledgments
About the Authors
1 Defining the Retail Supply Chain
1.1 More Than Stores
1.2 Defining the Terms: Supply Chain and Supply ChainManagement
1.3 The Importance of Customer Segments
1.4 Adding Value Along the Chain
2 Success in a Retail BusinessAnalysis
2.1.1 Retail Income Statements
2.1.2 Retail Balance Sheets
2.1.3 Financial Analysis
2.2 Merchandise Replenishment and Budgeting
2.2.1 The Importance of Replenishment Models in Retail Supply Chains
2.2.2 Merchandise Types—Staple versus Fashion
2.2.2.1 Staple or Functional Products
2.2.2.2 Fashion or Innovative Products
2.2.2.3 Merchandise Budget: An Example
2.2.2.4 Merchandise Replenishment Model
2.2.2.5 Merchandise Budget Follow-Up
2.3 Preparing a Merchandise Budget
2.4 Summary
3 Types of Retail Supply Chain Businesses
3.1 Supply Chain Component Data
3.2 Retail Supply Chains in the United States
3.3 Selected Supply Chain Company Returns
3.4 Summary
4 A Changing World: Moving Toward Comparative Advantage
4.1 Primer on Comparative Advantage
4.2 Concept of istance
4.3 Applying the fr
4.3.1 Revenue
4.3.2 Workforce Costs
4.3.3 Fixed Costs
4.3.4 Purchased Item Costs
4.4 Summary
5 Corporate Social Responsibility, Sustainability, and the Retail Industry
5.1 CSR at Retailers
5.2 CSR Link to Strategy
5.2.1 Link between CSR and Competitive Advantage
5.2.2 Private Companies and Social Issues
5.3 fr
5.4 Boots Ltd.—CSR/Financial Report Convergence
5.5 Summary
6 Drivers of Retail Supply Chain Change
6.1 Drivers Are Important
6.2 Innovation Driver
6.3 Extended Product Design
6.4 Globalization
6.5 Flexibility Imperative—the Ultimate Capability
6.5.1 Management Mindset
6.5.2 Defining Needed Flexibility
6.6 Process-Centered Management
6.7 Collaboration
6.7.1 Definitions of Collaboration
6.7.2 Stage 3 (Multicompany) SCM
6.8 Know Your Drivers
7 Paths to the Customer
7.1 Meeting Market Needs—Dimensions
7.2 Procter & Gamble Case Study
7.3 Role of Specifications
7.4 Nature of Demand
7.5 Quality Function Deployment (QFD) Tool
7.5.1 QFD Overview
7.5.2 Supply Chain QFD Example
7.6 Summary
8 Supply Chain Risk
8.1 Location/Trading-Partner Selection Risks
8.2 External Supply Chain Production/Logistics Risks
8.3 Internal Supply Chain Production/Logistics Risks
8.4 Supply Chain Risk—Summary
9 Retail Supply Chain Metrics
9.1 Metrics Problems
9.2 Alignment with Strategy
9.3 Definitions of Supply Chain Success
9.4 Mid-Tier and Ground-Level Metrics
9.4.1 Service Metrics
9.4.2 Operating Metrics
9.4.3 Financial Metrics
9.5 Supply Chain Metrics—Summary
10 Meeting the Needs of Supply Chain Decision Makers
10.1 New Decisions at Herman Miller
10.2 Proactive Decision Making
10.3 Applications for Information Technology
10.4 Assessing the Need for Information
10.5 Meeting Decision-Maker Needs—Summary
11 Product Types—Value to the Customer
11.1 The Product Life Cycle
11.2 Innovative and Functional Products
11.3 Market Mediation Costs
11.4 Customer Value and Product Types—Summary
12 Businesses Inside the Business
12.1 The Conventional Chain
12.2 Market Segments
12.3 Spheres—Modules for Supply Chain Design
12.4 Summary—Businesses Inside the Business
13 Activity Systems and Process Definition
13.1 Activity System—the IKEA Example
13.1.1 Make Choices, Develop Themes
13.1.2 Define Activities
13.1.3 Draw Links
13.2 Enabling Spheres and Supply Chain Processes
13.3 Defining Processes
13.4 Activity Systems and Process Definition—Summary
14 Retail Supply Chain Management—Skills Required
14.1 Five Tasks for SCM Excellence
14.2 Assessing Retail SCM Skills
14.3 Summary—SCM Skills
15 Organizing to Improve Retail Supply Chain Performance
15.1 West Marine Case
15.1.1 West Marine As-Is
15.1.2 Evaluation of the As-Is
15.1.3 Destination (To-Be)
15.1.4 Barriers to Success
15.1.5 Pathway to Change
15.2 Continuous Improvement Cycles
15.2.1 PDCA in a Retail Supply Chain
15.2.2 DMAIC
15.2.3 CPFR Model
15.3 S&OP Process and Functional Roles
15.5 Organizing to Improve Performance—Summary
16 Collaboration with Supply Chain Partners
16.1 Supply Chain Roles
16.1.1 Fewer but Broader
16.1.2 Collaboration Landscape
16.2 Core Competency
16.3 Partnerships Vocabulary
16.3.1 Partnership Purpose
16.3.2 Partnership Direction
16.3.3 Partnership Choice
16.4 Organizing a Partnership
16.5 Partner Collaboration—Summary
17 The Demand-Driven Supply Chain
17.1 Vision for the Demand-Driven Supply Chain
17.1.1 Documenting the Current Situation
17.1.2 Product Types
17.1.3 Barriers to the Demand-Driven Supply Chain
17.1.4 The To-Be and Potential To-Be Demand Driven
17.2 The Path from Forecast-Driven to Demand-Driven Supply Chain
17.2.1 Continuous Improvement Model for the Demand-Driven Supply Chain
17.2.2 The 3C Alternative to MRPII
17.3 Demand-Driven Tools and Techniques
17.3.1 Operating Improvements
17.3.1.1 Lean Supply Chain Approaches
17.3.1.2 Constraint Management
17.3.1.3 Quality Improvements
17.3.1.4 Design for Commonality
17.3.2 Management Improvements
17.3.2.1 Synchronization and Fixed-Interval Planning
17.3.2.2 Simplification
17.4 Sponsoring the Demand-Driven Supply Chain
17.5 Demand-Driven Supply Chain—Summary
18 Product Tracking Along Retail Supply Chains
18.1 Low-Tech Retailing
18.2 Beyond Basic Bar Codes
18.3 Radio Frequency Identification
18.3.1 The Retail Application
18.3.2 Active RFID
18.3.3 RFID Applications
18.4 Tracking in Transit
18.5 The Future of Product Tracking
18.5.1 Case Study for RFID Application
18.5.2 A Future RTLS System
18.6 Summary
19 Understanding Supply Chain Costs
19.1 Barriers to Cost Visibility
19.1.1 Understanding Costs Is Complicated
19.1.2 Partners Must Share Information
19.1.3 ABC Needs a “Makeover”
19.2 Goal: Activity-Based Costing by Product
19.2.1 The Starting Point (I-A)
19.2.2 Department Costs with Capital Recovery (II-B)
19.2.3 Multicompany Process Cost (III-C)
19.2.3.1 Set Process Boundaries
19.2.3.2 Document Process Flow
19.2.3.3 Decide What Cost Categories to Include
19.2.3.4 Assign Costs to Process Steps
19.2.3.5 Analyze Findings
19.3 Activity-Based Costs by Product (IV-D)
19.3.1 Gather Product Line Information
19.3.2 Adjust Unit Costs and Volumes Through Engineering Studies
19.3.3 Calculate Product Line Profitability.
19.4 Understanding Costs—Summary
20 Barriers to Addressing Root Causes for Cost
20.1 Root Causes for Supply Chain Cost
20.2 No Focus
20.2.1 Project Management Basics
20.2.2 Team Building
20.3 Confusion
20.3.1 Promoting SCM
20.3.2 Graduated Approach
20.4 Motivators
20.4.1 Measures
20.4.2 Flexibility Defined
20.5 Boundaries
20.5.1 Divide and Conquer
20.5.2 Multicompany Participation
20.6 Rigidity
20.6.1 Mindset Changes
20.6.2 Changing the Project
20.7 Barriers to Cost Reduction—Summary
21 Multicompany Collaboration to Reduce Costs—Who, What, AND How
21.1 Case Study—Frozen and Refrigerated Foods “Cold Chain”
21.2 Recognize Root Causes
21.3 Types of Collaboration
21.4 Who—Rationalizing the Customer/Supplier Base
21.5 What and How—Pursuing Partnership Opportunities
21.5.1 Type A: One-Way Data Exchange Collaboration
21.5.2 Type B: Two-Way Data Exchange Collaboration
21.5.3 Cooperative Collaboration
21.5.4 Cognitive Collaboration
21.6 Multicompany Collaboration to Reduce Cost—Summary
22 Retail Return Loops
22.1 GENCO Case Study—the Rise of the Return Loop
22.2 Types of Returns
22.3 Opportunities in Returns
22.3.1 Reduced Returns
22.3.2 Improved Customer Service
22.3.3 Collaboration with Partners
22.3.4 Customer Feedback
22.3.5 Material Source
22.3.6 Environmental Mitigation
22.3.7 Additional Business
22.3.8 Cash-to-Cash Cycle Reduction
22.3.9 Process Standardization
22.4 Return Loops—Summary MsSVig