Stores Management

Stores management is a crucial part of the supply chain in terms of location, stock held, storage, and replenishment.

Supply Chain Management

If your international supply chain management is the weakest link in your organisation, your board or chief executive will say good-bye — without a winking eye. How do you know your supply chain in the age of globalisation and internationalisation is effective? Literature in its many forms contains a lack of clarity and completeness in the how to’s of implementation. This chapter covers the nuts and bolts of what’s required and what can go wrong. I’ve been there, seen it, done it and didn’t get fired. Reality, therefore, pervades this chapter. Within this chapter, I will explore definitions and concepts of logistics and supply chain management, including the value chain, logistics management, global sourcing, and the bullwhip effect. Illustrations will be taken from the private and public sector along with a suggested interlock strategy.

Physical Distribution

We have, so far, looked at the operation of stores and stockyards, transport operation, and the various samples of legislation with which the stores manager must comply. We need now to consider the methods of achieving effective planning and control of the distribution of goods, to customers, stores and warehouses. Without effective distribution, the supply chain is doomed

Transport

Shipping, transport, and distribution in terms of supply chain management can be grouped under one heading: Logistics. Logistics planning involves not only the transportation side of distribution but also provides the “place element” in the marketing mix by helping to ensure that products arrive in sufficient quantities and in saleable condition at points from which the consumer can most easily buy them. Thus, logistics management includes forecasting demand and then matching supply to meet that demand through procurement of materials, production scheduling, inventory management, order processing, warehousing, and transportation. In international systems, the logistics planning function comprises a number of subsystems that have central points-of-reach territory. There is a further subsystem for the management of local logistics (i.e., the transport and distribution systems used by the importer to move products to customers in the market concerned). Logistics, as well as being essential for moving goods to their destinations, is also a key marketing activity. As such it requires marketing management’s attention. Logistics contributes to a major portion of costs, particularly in international business. Logistic planning also plays a major role in creating a good relationship with customers, ensuring that sales opportunities are not lost because of stock outs (which allows competitors to eat away at the company’s market share). In assessing the real cost of transportation, you should be concerned with factors relating to reliability, time, and price. Decisions in choosing methods of transport and distribution therefore will be based on “trade-offs” between these factors. Transportation costs are often peculiar in that they frequently bear little relation to distance. Competition and volume are the key factors in cargo pricing. For example, the rate of goods transported from the Far East to the East Coast of the United States costs less than the transport rate of goods going the other way. Costs from the United States to South America are frequently lower than costs of transport among South American countries. All transport costs have increased, however, largely due to increased security operations.

Managing the Supply Chain Function

The supply chain manager is concerned with not only managing the flow of materials and resources, he or she is also concerned with managing the human resources through which control of materials is achieved. In this chapter I will investigate the problems associated with staffing the positions or roles that have been defined in the structure. I shall consider aspects of recruitment and training and the preparation of job descriptions and operating manuals. People are probably the most important asset in any supply chain. In addition to these elements of the staffing problem, I shall also focus attention on a closely related managerial requirement. This concerns techniques of directing and motivating the staff to achieve departmental and corporate objectives and to provide opportunities for members of the logistics function to satisfy their own individual goals at the same time. This topic is a controversial one and in the social environment of today, traditional views have come under severe attack. I shall consider these opposing views in the context of supply chain management.

Quality Management and Customer Service

This chapter provides a brief overview of a lengthy aspect of the supply chain — that of quality. After defining quality and the costs of failure, methods of getting it right such as ISO 9000, ISO 4000, quality management, and efficient consumer response, are covered. Quality is an essential ingredient of the supply chain.

Strategic Purchasing Management

Purchasing is at the heart of any supply chain. Purchasing needs to be strategic to facilitate an effective supply chain. Within this chapter, I will explore corporate planning, purchasing planning and strategies, corporate and environmental factors and how to go about the strategy and planning process. I will also explore buying decisions, ethical purchasing, and procurement agencies.

Developments in Purchasing and Supply Chain Management and Logistics

The purpose of this chapter is to provide an overview of the differences between procurement, purchasing, outsourcing, supply, and, sustainable supply chain management. An overview of the global marketplace and the emerging business issues of the 21st century will also be provided, along with some guidance on effective education programmes. Supply chain management a crucial element of competitive advantage (see, e.g., Figure 1). Understanding what supply chain management is and what it means is vital.

E-Business

In this chapter, I examine electronic data interchange and the phenomenon of e-business with a focus on e-procurement.

Provisioning and Inventory Control

Provisioning and inventory control is crucial to a wide range of organisations in ensuring a smooth operation of the supply chain. Getting it wrong can be disastrous.