Today's fiercest business battles are taking place between competitors' supply chains, with victory dependent on finding a way to deliver products to customers faster, better, and cheaper than anyone else. For proof, just look to Dell and Amazon.com, both of which revolutionized their industries by changing how companies produce, distribute, and sell physical goods. But they're hardly alone. By revamping their supply chains, Siemens CT improved lead time from six month to two weeks, Gillette slashed $400 million of inventory, and Chrysler saved $1.7 billion a year - before, alas, letting its innovative vendor partnerships falter. It's a high-stakes game, and you don't have a lot of choice about playing; if your company touches a physical product, it's part of a supply chain. And your success ultimately hangs on the weakest link in that chain. In Supply Chains: A Manager's Guide, best-selling author David Taylor shows you how to assemble a killer supply chain using the knowledge, technology, and tools employed in supply-chain success stories. Using his signature fast-track summaries, graphics, and sidebars, Taylor offers a clear roadmap to understanding and solving the complex problems of supply-chain management. Modern manufacturing has driven down the time and cost of the production process, leaving supply chains as the final frontier for cost reduction and competitive advantage. Supply Chains: A Manager's Guide will quickly give managers the foundation they need to contribute effectively to their company's supply-chain success. Main Page 1 Table of Contents 2 Copyright 5 Praise for Supply Chains: A Manager's Guide 7 Acknowledgments 9 Introduction 10 About the Cover 13 Part I: Challenges 14 Chapter 1. The New Competition 15 The Thrill of Victory 16 The Agony of Defeat 20 A High Stakes Game 24 The New Competition 27 Chapter 2. The Rules of the Game 30 Facilities and Links 31 Demand, Supply, and Cash 35 Distribution and Procurement 40 Complexity and Variability 44 Chapter 3. Winning as a Team 49 JIT Supply Programs 50 Retail Replenishment Programs 53 The Problem with Programs 57 Insights from Game Theory 62 Winning Through Collaboration 67 Part II: Solutions 71 Chapter 4. Supply Chains as Systems 72 Business Cybernetics 73 A Rogues Gallery of Relations 77 The Dynamics of Delay 81 Feedback and Stability 85 Chapter 5. Modeling the Supply Chain 89 The Case for Models 90 Conceptual Models 94 Mathematical Models 96 Simulation Models 101 Combining Models 106 Chapter 6. Supply Chain Software 109 The Manufacturing Platform 110 Advanced Planning Systems 113 Supply Chain Applications 116 Implicit Business Models 120 Internet-Based Systems 122 Part III: Operations 126 Chapter 7. Meeting Demand 127 Communicating Demand 129 Processing an Order 133 Assembling the Goods 138 Shipping the Order 141 Collecting the Cash 144 Accelerating Fulfillment 147 Chapter 8. Maintaining Supply 150 Triggering Replenishment 152 Determining Order Quantity 155 Maintaining Safety Stock 157 Streamlining Replenishment 162 Chapter 9. Measuring Performance 166 Measuring Time 167 Measuring Cost 173 Measuring Efficiency 177 Measuring Effectiveness 181 Part IV: Planning 184 Chapter 10. Forecasting Demand 185 Projecting Trends 186 Aggregating Demand 191 Analyzing the Future 195 Integrating Forecasts 200 Chapter 11. Scheduling Supply 204 Planning with ERP 205 Optimizing with APS 209 Validating with Simulators 212 Integrating Schedules 216 Chapter 12. Improving Performance 221 Setting Objectives 222 Avoiding Conflicts 226 Aligning Incentives 232 Improving Planning 236 Part V: Design 241 Chapter 13. Mastering Demand 242 Knowing the Customer 243 Analyzing the Product 248 Shaping Demand 253 Stabilizing Demand 256 Chapter 14. Designing the Chain 260 Choosing a Strategy 261 Exploring Your Options 265 Designing the Chain 270 Chapter 15. Maximizing Performance 275 Increasing Velocity 277 Pooling Risk 280 Designing for Supply 285 Postponing Differentiation 288 Notes on Sources 292 Chapter 1 The New Competition 293 Chapter 2 The Rules of the Game 295 Chapter 3 Winning as a Team 296 Chapter 6 Supply Chain Software 298 Chapter 7 Meeting Demand 299 Chapter 8 Maintaining Supply 300 Chapter 9 Measuring Performance 301 Chapter 10 Forecasting Demand 302 Chapter 12 Improving Performance 303 Chapter 13 Mastering Demand 304 Chapter 14 Designing the Chain 305 Chapter 15 Maximizing Performance 306 Suggested Readings 307 Intermediate Level 308 Advanced Level 309 Collections of Articles 310 Glossary 311 During the past twenty years, companies have reduced the time and cost of the manufacturing process. Now, they are attempting to streamline their supply chains in the same way, but they are struggling with this initiative. This shift in focus is quickly changing the nature of business competition. The battle is no longer company vs. company, it's supply chain vs. supply chain. The formula for winning this new battle is assembling a killer supply chain -- the one that, like those of Dell and WalMart, will let them deliver products to their customers faster, better, and cheaper than anyone else. Written by best-selling author David A. Taylor, this is a guide to understanding and solving the complex problems of supply chain management. Using Taylor's signature fast-track summaries, graphics, sidebars, and additional content and exercises on the CD-ROM and Web site, readers will easily grasp the critical insights into this demanding subject, and walk away knowing just what they need to know in order to contribute effectively to their company's supply chain success. The author provides a high-level overview that shows how supply chain initiatives can contribute to overall business success. The guide helps you understand and learn to solve the complex problems presented by supply chain management and features tools and exercises.