David Blanchard - Supply Chain Management Best Practices

189 190

190 191

191 192

192 193

193 194

194 195

195 196

196 197

197 198

198 199

199 200

200 201

201 202

202 203

203 205

204 206

205 207

206 208

207 209

208 210

209 211

210 212

211 213

212 214

213 215

214 216

215 217

216 218

217 219

218 220

219 221

220 222

221 223

222 224

223 225

224 226

225 227

226 228

227 229

228 230

229 231

230 232

231 233

232 234

233 235

234 236

235 237

236 239

237 240

238 241

239 242

240 243

241 244

242 245

243 246

244 247

245 248

246 249

247 251

248 252

249 253

250 254

251 255

252 256

253 257

254 258

255 259

256 260

257 261

258 262

259 263

260 264

261 265

262 266

263 267

264 268

265 269

266 271

267 272

268 273

269 274

270 275

271 276

272 277

273 278

274 279

275 280

276 281

277 282

278 283

279 284

280 285

281 286

282 287

283 288

284 289

285 290

Third Edition

DAVID BLANCHARD

Copyright © 2021 by David Blanchard. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993, or fax (317) 572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data

Names: Blanchard, David, 1958- author.

Title: Supply chain management best practices / David Blanchard.

Description: Third Edition. | Hoboken : Wiley, 2021. | Revised edition of the author’s Supply chain management, c2010.

Identifiers: LCCN 2021010995 (print) | LCCN 2021010996 (ebook) | ISBN 9781119738237 (hardback) | ISBN 9781119738213 (adobe pdf) | ISBN 9781119738190 (epub)

Subjects: LCSH: Business logistics.

Classification: LCC HD38.5 .B476 2021 (print) | LCC HD38.5 (ebook) | DDC 658.5—dc23

LC record available at https://lccn.loc.gov/2021010995LC ebook record available at https://lccn.loc.gov/2021010996

Cover design: Wiley

Cover image: (c) Kentoh/Shutterstock

To Nancy, Julia, and Grace

When I wrote the first edition of this book, the terrorist attacks of September 11, 2001, were still fresh in people's minds and the world was still grappling with new security procedures that changed travel, security, and global supply chains in ways that nobody could have imagined pre-9/11. The US Department of Homeland Security was as frequently mentioned in supply chain circles as the IRS is mentioned at accounting firms. It was pretty much accepted as gospel that the world as we knew it had been changed forever. Welcome, the saying went, to the New Normal, characterized by stringent security measures that would slow global trade to a near halt as cargo and passengers alike would need to be thoroughly screened at every land, sea, and airport.

I wrote the second edition a few years later when the United States, and pretty much the rest of the world, was plunged in what came to be known as the Great Recession. The housing market had tanked, the stock market had crashed, unemployment had spiked, and the new “New Normal,” we were told, would be an economy of very modest growth. Supply chain professionals were being advised to go lean—not just following the principles of continuous improvement, but preparing for an economy that might never fully bounce back.

That brings us to this third edition, which was written while the entire world was grappling with the COVID-19 pandemic. At this writing, while we seem to have gotten past the worst of the virus, and while the rapid development and distribution of vaccines are bolstering hopes that the pandemic could soon be downgraded to just a really bad health situation, it’s unclear as to exactly when, or if, we’ll see what the Next Normal looks like. It's safe to say that even after the impact of COVID-19 has faded somewhat into memory, there will always be another crisis or another “we've never seen anything like this before” moment on the global supply chain stage.

*

When you give a book a title like Supply Chain Management Best Practices , there's not much mystery in what it's going to be about. Throughout its 16 chapters, this book will identify some of the best supply chains in the world, describe in detail what it means to have a “best-in-class” supply chain, and offer suggestions—in the form of best practices—on how to build a world-class supply chain.

This book is largely told through the experiences of supply chain practitioners and experts. The companies and the people referred to in this book are real, as are their accomplishments (and, in some cases, their failures). What sets this book apart from other supply chain books is that I have taken a journalist's approach to the subject rather than an academic's or a consultant's. As the editorial director of a diverse group of trade publications, I've had access to supply chain professionals at companies of all sizes, in dozens of different industries. So in writing this book throughout its three editions, I have set out to tell the story of supply chain management through the eyes of the people who know it best.