Want to learn more? We hope you enjoy this McGraw-Hill eBook! If you’d like more information about this book, its author, or related books and websites, please click here. Critical Acclaim for Strategic Supply Chain Management Cohen and Roussel effectively capture and communicate the critical elements and roadmap of world-class supply chain management. Put into practice, this book will serve as a timeless tool for those looking to transform their organization’s supply chain into a sustainable competitive advantage. Jim Miller Vice President, Operations, Cisco Systems The five core principles behind this book are deceptively simple.
Yet few supply chain practitioners have the authors’ depth and breadth of experience. Cohen and Roussel take the topic far beyond the theoretical, offering numerous examples of how companies have adopted and adapted these principles. Senior executives can use this book to structure a supply chain strategy that will result in immediate top- and bottom-line benefits. Geoffrey Moore Author, Crossing the Chasm, Inside the Tornado, Living on the Fault Line Cohen and Roussel successfully balance the “why” with the “what” of supply chain management.
This practical book assembles the components of an effective supply chain in a clear, well-supported way. Those who want to drive supply chain success would be well-served in reading this book and learning from its many examples. Dick Hunter Vice President, Dell Americas Operations, Dell, Inc. It is rare to find a book that covers both the supply chain principles and the organizational and practical aspects so well.
Cohen and Roussel have given management and practitioners a most insightful treatment of the secrets to supply chain success. Hau Lee Thoma Professor of Operations, Information, and Technology, Graduate School of Business, Stanford University The authors successfully describe the many complex trade-offs that companies must consider in developing a winning supply chain strategy. Consequently, their book is as relevant and useful to the company CEO and CFO as it is to the COO, who should use it as the “how-to” guide to develop an operations strategy for the corporation. Gary McIlraith Supply Chain Director, British Sky Broadcasting Ltd Cohen and Roussel provide a valuable overview for any CEO who intends to make supply chain management a competitive advantage.
Whether you’re the CEO of an established global company or the founder of a start-up, Strategic Supply Chain Management can provide you with the guiding principles and a roadmap to get your company moving in the right direction. Guerrino De Luca President and CEO, Logitech International The authors have captured the essential elements of how a company can drive superior performance by positioning supply chain management as a core man- agement discipline. The book creates a template for how you can align an orga- nization to transfer a winning strategy into meaningful results. Bill Cantwell Vice President, Supply Chain, Air Products and Chemicals, Inc.
Cohen and Roussel take a rich set of strategies and explain them in a way that a relative newcomer could understand, yet retain the necessary depth to benefit sea- soned professionals. Throughout this book, the authors provide powerful methods for organizing and implementing supply chain improvements. Their linkage of these strategies back to elements of the Supply-Chain Council’s SCOR model provides the practitioner with a thorough approach to drive tangible results. The real-life examples are invaluable.
Miller Chairman, Supply-Chain Council The supply chain presents a significant opportunity for cost reduction and cus- tomer value creation. This is the underpinning theme of this easy-to-read and practical book. Cohen and Roussel have skillfully drawn from their extensive experience working with organizations in diverse industries to synthesize best practices in supply chain management. Of the many books that discuss supply chain management, this is one of the better ones.
Martin Christopher Professor, Cranfield University, United Kingdom Finally, a practical guide that links the latest in supply chain management think- ing with relevant examples of how successful practitioners apply these principles in the real world. A must read for all supply chain professionals attempting to take their supply chain performance to the next level. McGregor Senior Vice President, NAFTA Logistics, BASF Corporation Cohen and Roussel provide a disciplined, practical, and insightful approach to achieving a world-class supply chain structure. Their book’s concepts are rele- vant to the many challenges corporations face today, and consistent with our experiences at HP.
This book is transformational, and should help any supply chain professional achieve excellence. Dick Conrad Senior Vice President, Global Operations, Supply Chain, HP STRATEGIC SUPPLY CHAIN MANAGEMENT The Five Disciplines for Top Performance SHOSHANAH COHEN JOSEPH ROUSSEL McGraw-Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America.
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We couldn’t have dedicated the time and energy to writing this book without your understanding and teamwork on the home front. This page intentionally left blank. For more information about this title, click here. C O N T E N T S Foreword by Gordon Stewart and Mike Aghajanian ix Acknowledgments xvii ELI LILLY PROFILE: Supporting Product Lifecycles with Supply Chain Management 1 Chapter 1 Core Discipline 1: View Your Supply Chain as a Strategic Asset 9 Five Key Configuration Components 10 Four Criteria of a Good Supply Chain Strategy 20 Next-Generation Strategy 36 AUTOLIV PROFILE: Applying Rocket Science to the Supply Chain 39 Chapter 2 Core Discipline 2: Develop an End-to-End Process Architecture 49 Four Tests of Supply Chain Architecture 50 Architectural Toolkits 66 Top Three Levels of the SCOR Model 70 Five Processes for End-to-End Supply Chain Management 78 Next-Generation Processes 88 AVON PROFILE: Calling on Customers Cost-Effectively 91 Chapter 3 Core Discipline 3: Design Your Organization for Performance 101 Organizational Change Is an Ongoing Process 102 Evolution of the Supply Chain Organization 108 Guiding Principles for Organizational Design 111 Gaining Respect for the Supply Chain Discipline 122 Next-Generation Organizational Design 128 vii viii CONTENTS OWENS CORNING PROFILE: Reorganizing for “a Bright Future” 131 Chapter 4 Core Discipline 4: Build the Right Collaborative Model 139 Collaboration Is a Spectrum 143 Finding the Right Place on the Spectrum 147 The Path to Successful Collaboration 148 Next-Generation Collaboration 164 U.
DEPARTMENT OF DEFENSE PROFILE: Making the Tail Smaller and the Tooth Stronger 169 Chapter 5 Core Discipline 5: Use Metrics to Drive Business Success 185 Why Measure? 186 Managing Performance with Metrics 188 Which Metrics? 205 Case in Point: Performance Management at 3Com 210 Next-Generation Performance Management 213 GENERAL MOTORS PROFILE: Driving Customer Satisfaction 217 Chapter 6 A Roadmap to Change 229 Advanced Systems Aren’t Enough 230 Characteristics of the Next Generation 232 Developing a Roadmap 236 SEAGATE TECHNOLOGY PROFILE: Real-Time Response to Demand 249 Appendix A: Source and Methodology for Benchmarking Data 259 Appendix B: The Supply Chain Maturity Model 273 Appendix C: Comparison of Characteristics for Levels 2 and Level 3 SCOR Metrics 279 Notes 301 Index 307 F O R E W O R D In many ways this book is overdue. It is the book that we at PRTM wanted to write almost a decade ago, and yet at that time we merely would have been speculating about the future development of supply chain management as a core management discipline. For instance, we very likely would have underestimated the impact of information technology and ignored some emerging best practices. This book is the result of a 15-year history of research, benchmarking, and client results in this discipline at PRTM and an equivalent level of experience by the authors, PRTM partners Shoshanah Cohen (Mountain View, California) and Joseph Roussel (Paris, France).
In this book we set out to offer readers our understanding of the cur- rent state of supply chain management theory and practice based on our experience and observations from engagements on supply chain projects at over 600 organizations. We also offer profiles of recent transformative supply chain initiatives at major companies and the U. Department of Defense (the largest supply chain in the world). Finally, we offer our per- spective on future challenges in the development of competitive, customer- facing supply chains.
This book focuses rightly on the present and the future; it is here in the Foreword that we hope to provide some historic perspective on how supply chain management came to be the dominating management disci- pline of the late 1990s and how it has become the root of huge invest- ments in enterprise resource planning (ERP) and advanced planning and scheduling (APS) systems implementations in almost every major global corporation. We can trace the origins of good supply chain management discipline to the late 1800s. The following extract dates from Bremner’s Industries of Scotland (1869): Gartsherrie Ironworks are the largest in Scotland.