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Logistics
Management
& Strategy
Competing Through
the Supply Chain
Fourth Edition
Alan Harrison &
Remko van Hoek
Logistics Management
and Strategy
We work with leading authors to develop the
strongest educational materials in logistics,
bringing cutting-edge thinking and best
learning practice to a global market.
Under a range of well-known imprints, including
Financial Times Prentice Hall, we craft high quality print and
electronic publications which help readers to understand
and apply their content, whether studying or at work.
To find out more about the complete range of our
publishing, please visit us on the World Wide Web at:
www.pearsoned.co.uk
Logistics Management
and Strategy
Competing through the supply chain
Fourth Edition
Alan Harrison
Remko van Hoek
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First published 2002
Second edition published 2005
Third edition published 2008
Fourth edition published 2011
© Pearson Education Limited 2002, 2005
© Alan Harrison and Remko van Hoek 2008, 2011
The rights of Alan Harrison and Remko van Hoek to be identified as authors of this work
have been asserted by them in accordance with the Copyright, Designs and Patents Act
1988.
All rights reserved. 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 or otherwise, without either the prior written permission of the
publisher or a licence permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership
rights in such trademarks, nor does the use of such trademarks imply any affiliation with or
endorsement of this book by such owners.
Pearson Education is not responsible for the content of third party internet sites.
ISBN: 978-0-273-73022-4
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Harrison, Alan, 1944–
Logistics management and strategy : competing through the supply chain
/ Alan Harrison, Remko van Hoek. — 4th ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-273-73022-4 (pearson : alk. paper) 1. Business logistics.
2. Industrial management. I. Hoek, Remko I. van. II. Title.
HD38.5.H367 2010
658.5–dc22
2010041143
10 9 8 7 6 5 4 3 2 1
14 13 12 11
Typeset in 9.5pt Stone Serif by 73
Printed by Ashford Colour Press Ltd., Gosport
The publisher’s policy is to use paper manufactured from sustainable forests.
To Cathi, Nick, Katie, Maryl and Ticho, with love.
Contents
Foreword
Preface
Authors’ acknowledgements
Publisher’s acknowledgements
How to use this book
Plan of the book
xiii
xv
xvii
xix
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xxiii
Part One COMPETING THROUGH LOGISTICS
1 Logistics and the supply chain
Introduction
1.1 Logistics and the supply chain
1.1.1 Definitions and concepts
1.1.2 Supply chain: structure and tiering
1.2 Material flow and information flow
1.2.1 Material flow
1.2.2 Information flow
1.3 Competing through logistics
1.3.1 Hard objectives
1.3.2 Supportive capabilities
1.3.3 Soft objectives
1.3.4 Order winners and qualifiers
1.4 Logistics strategy
1.4.1 Defining ‘strategy’
1.4.2 Aligning strategies
1.4.3 Differentiating strategies
1.4.4 Trade-offs in logistics
Summary
Discussion questions
References
Suggested further reading
2 Putting the end-customer first
Introduction
2.1 The marketing perspective
2.1.1 Rising customer expectations
2.1.2 The information revolution
2.2 Segmentation
2.3 Demand profiling
2.4 Quality of service
2.4.1 Customer loyalty
2.4.2 Value disciplines
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viii Contents
2.4.3
Relationship marketing and customer relationship
management (CRM)
2.4.4 Measuring service quality
2.5 Setting priorities for logistics strategy
2.5.1 Step 1: Diagnose current approach to market segmentation
2.5.2 Step 2a: Understand buying behaviour
2.5.3 Step 2b: Customer value analysis
2.5.4 Step 3: Measure logistics strategy drivers
2.5.5 Step 4: Specify future approach to market segmentation
Summary
Discussion questions
References
Suggested further reading
3 Value and logistics costs
Introduction
3.1 Where does value come from?
3.1.1 Return on investment (ROI)
3.1.2 Financial ratios and ROI drivers
3.2 How can logistics costs be represented?
3.2.1 Fixed/variable
3.2.2 Direct/indirect
3.2.3 Engineered/discretionary
3.3 Activity-based costing (ABC)
3.3.1 ABC example
3.3.2 Cost–time profile (CTP)
3.3.3 Cost-to-serve (CTS)
3.4 A balanced measurement portfolio
3.4.1 Balanced measures
3.4.2 Supply chain management and the balanced scorecard
3.4.3 Supply chain financial model
3.5 Supply chain operations reference model (SCOR)
Summary
Discussion questions
References
Suggested further reading
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Part Two LEVERAGING LOGISTICS OPERATIONS
4 Managing logistics internationally
Introduction
4.1 Drivers and logistics implications of internationalisation
4.1.1 Logistical implications of internationalisation
4.1.2 Time-to-market
4.1.3 Global consolidation
4.1.4 Risk in international logistics
4.2 The tendency towards internationalisation
4.2.1 Focused factories: from geographical
to product segmentation
4.2.2 Centralised inventories
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Contents
4.3
The challenges of international logistics and location
4.3.1 Extended lead time of supply
4.3.2 Extended and unreliable transit times
4.3.3 Multiple consolidation and break points
4.3.4 Multiple freight modes and cost options
4.3.5 Price and currency fluctuations
4.3.6 Location analysis
4.4 Organising for international logistics
4.4.1 Layering and tiering
4.4.2 The evolving role of individual plants
4.4.3 Reconfiguration processes
4.5 Reverse logistics
4.6 Managing for risk readiness
4.6.1 Immediate risk readiness
4.6.2 Structural risk readiness
4.7 Corporate social responsibility in the supply chain
Summary
Discussion questions
References
Suggested further reading
5 Managing the lead-time frontier
Introduction
5.1 The role of time in competitive advantage
5.1.1 Time-based competition: definition and concepts
5.1.2 Variety and complexity
5.1.3 Time-based initiatives
5.1.4 Time-based opportunities to add value
5.1.5 Time-based opportunities to reduce cost
5.1.6 Limitations to time-based approaches
5.2 P:D ratios and differences
5.2.1 Using time as a performance measure
5.2.2 Using time to measure supply pipeline performance
5.2.3 Consequences when P-time is greater than D-time
5.3 Time-based process mapping
5.3.1 Stage 1: Create a task force
5.3.2 Stage 2: Select the process to map
5.3.3 Stage 3: Collect data
5.3.4 Stage 4: Flow chart the process
5.3.5 Stage 5: Distinguish between value-adding
and non-value-adding time
5.3.6 Stage 6: Construct the time-based process map
5.3.7 Stage 7: Solution generation
5.4 Managing timeliness in the logistics pipeline
5.4.1 Strategies to cope when P-time is greater than D-time
5.4.2 Practices to cope when P-time is greater than D-time
5.5 A method for implementing time-based practices
5.5.1 Step 1: Understand your need to change
5.5.2 Step 2: Understand your processes
5.5.3 Step 3: Identify unnecessary process steps and large
amounts of wasted time
ix
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x Contents
5.5.4 Step 4: Understand the causes of waste
5.5.5 Step 5: Change the process
5.5.6 Step 6: Review changes
5.5.7 Results
5.6 When, where and how?
Summary
Discussion questions
References
Suggested further reading
6 Supply chain planning and control
Introduction
6.1 The supply chain ‘game plan’
6.1.1 Planning and control within manufacturing
6.1.2 Managing inventory in the supply chain
6.1.3 Planning and control in retailing
6.1.4 Inter-firm planning and control
6.2 Overcoming poor coordination in retail supply chains
6.2.1 Efficient consumer response (ECR)
6.2.2 Collaborative planning, forecasting
and replenishment (CPFR)
6.2.3 Vendor-managed inventory (VMI)
6.2.4 Quick response (QR)
Summary
Discussion questions
References
Suggested further reading
7 Just-in-time and the agile supply chain
Introduction
7.1 Just-in-time and lean thinking
7.1.1 The just-in-time system
7.1.2 The seven wastes
7.1.3 JIT and material requirements planning
7.1.4 Lean thinking
7.1.5 Application of lean thinking to business processes
7.1.6 Role of lean practices
7.2 The concept of agility
7.2.1 Classifying operating environments
7.2.2 Preconditions for successful agile practice
7.2.3 Developing measures that put the end-customer first
to improve market sensitivity
7.2.4 Shared goals to improve virtual integration
7.2.5 Boundary spanning S&OP process to improve
process integration
Summary
Discussion questions
References
Suggested further reading
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Contents
xi
Part Three WORKING TOGETHER
8 Integrating the supply chain
Introduction
8.1 Integration in the supply chain
8.1.1 Internal integration: function to function
8.1.2 Inter-company integration: a manual approach
8.1.3 Electronic integration
8.2 Choosing the right supply relationships
8.3 Partnerships in the supply chain
8.3.1 Economic justification for partnerships
8.3.2 Advantages of partnerships
8.3.3 Disadvantages of partnerships
8.4 Supply base rationalisation
8.4.1 Supplier management
8.4.2 Lead suppliers
8.5 Supplier networks
8.5.1 Supplier associations
8.5.2 Japanese keiretsu
8.5.3 Italian districts
8.5.4 Chinese industrial areas
8.6 Supplier development
8.6.1 Integrated processes
8.6.2 Synchronous production
8.7 Implementing strategic partnerships
8.8 Managing supply chain relationships
8.8.1 Creating closer relationships
8.8.2 Factors in forming supply chain relationships
Summary
Discussion questions
References
Suggested further reading
9 Sourcing and supply management
Introduction
9.1 What does procurement do?
9.1.1 Drivers of procurement value
9.2 Rationalising the supply base
9.3 Segmenting the supply base
9.3.1 Preferred suppliers
9.3.2 Strategic relationships
9.3.3 Establishing policies per supplier segment
9.3.4 Vendor rating
9.3.5 Executive ownership of supply relationships
9.3.6 Migrating towards customer of choice status
9.4 Procurement technology
9.5 Markers of boardroom value
9.6 What does top procurement talent look like?
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xii Contents
Summary
Discussion questions
References
Suggested further reading
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Part Four CHANGING THE FUTURE
10 Logistics future challenges and opportunities
Introduction
10.1 Changing economics?
10.2 Internal alignment
10.3 Selecting collaborative opportunities upstream and downstream
10.4 Managing with cost-to-serve to support growth and profitability
10.5 The supply chain manager of the future
10.6 Changing chains
Summary
Discussion questions
References
Suggested further reading
Index
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351
Supporting resources
Visit www.pearsoned.co.uk/harrison to find valuable online resources
For instructors
● Complete, downloadable Instructor’s Manual, containing teaching notes, notes on case
studies and teaching tips, objectives and discussion points for each chapter
● Downloadable PowerPoint slides of all figures from the book
For more information please contact your local Pearson Education sales representative or visit
www.pearsoned.co.uk/harrison
Foreword
I am delighted to introduce Logistics Management and Strategy, now in its fourth
edition – a further aid in our ability to drive our understanding of such a critical
part of the business environment. In Bausch and Lomb logistics remains a key
area of management attention, given its central role in customer service and the
opportunities it provides for cost control, two fundamental essentials for any
global business today.
Bausch and Lomb is built on a tradition of developing state of the art Optical
products – from contact lenses to cataract surgery and the fast-growing optical
pharmaceutical markets. These complex supply chains cover five continents and
serve varying types of customers including hospitals, opticians and multiple
retailers. They involve stock-keeping units (skus) requiring temperature control,
serial traceability and sterility, and make for a diverse and challenging set of
logistics demands.
When you then add these challenges to a range of over 100,000 skus – with
some products being offered in over 7,000 different refractive powers/pack sizes –
then you can understand why utilising the very latest approaches to logistics
management and strategy is absolutely crucial.
In recent years we have invested heavily in automated warehouses, such as
at our site in Amsterdam, recently recognised as one of the ‘top ten’ logistics
facilities in the Netherlands. We have also developed our utilisation of agile
logistics. This has been addressed by reducing the number of base products
produced in our 17 factories, whilst increasing our customer responsiveness
through postponement of labelling, bundling, promotional artwork and language compliance. In this regard, being a member of the Agile Supply Chain
Research Club at Cranfield and working with Alan has been a rewarding and
beneficial experience. I note that some of our experience has been invested in
Chapter 7.
In the last two years Bausch and Lomb has greatly reduced inventory holdings
through a number of logistics initiatives – improving working capital whilst
maintaining, and even improving, customer service levels.
But the fight goes on, and it is with texts such as Logistics Management and
Strategy in your armoury that you can continue to drive further improvements in
your supply chain. The great aspect of this text is its readability – it does not seek
to lecture the reader, but imparts its wisdom in a straightforward and practical
manner. Fundamentally, I believe that is the essence of the science of logistics.
Every element of our complex logistical environment is captured in this book
with new sections covering sustainability, planning and control, and particularly
the strategic role of procurement – all adding to the rich content.
In introducing this collaboration between Alan and Remko my parentage
springs to mind. This was another Anglo-Dutch partnership – albeit with different outcomes!
xiv Foreword
I have spent the last twenty-five years in logistics, working in both British and
Dutch environments. The last ten of these years have been in a global role. The
output of Alan’s and Remko’s partnership rings true in so many areas – and offer
methods and approaches which will continue to drive our improvements in the
coming years.
Paul Mayhew MSc, MCILT
Vice President, Global Logistics
Bausch and Lomb.
Preface
Logistics has been emerging from Peter Drucker’s shadowy description as ‘the
economy’s dark continent’ for some years. From its largely military origins, logistics has accelerated into becoming one of the key business issues of the day, presenting formidable challenges for managers and occupying some of the best
minds. Its relatively slow route to this exalted position can be attributed to two
causes. First, logistics is a cross-functional subject. In the past, it has rightly
drawn on contributions from marketing, finance, operations and corporate strategy. Within the organisation, a more appropriate description would be a business
process, cutting across functional boundaries yet with a contribution from each.
Second, logistics extends beyond the boundaries of the organisation into the supply chain. Here, it engages with the complexities of synchronising the movement
of materials and information between many business processes. The systems nature of logistics has proved a particularly difficult lesson to learn, and individual
organisations still often think that they can optimise profit conditions for themselves by exploiting their partners in the supply chain. Often they can – in the
short term. But winners in one area are matched by losers in another, and the losers are unable to invest or develop the capabilities needed to keep the chain
healthy in the long term. The emergence of logistics has therefore been dependent on the development of a cross-functional model of the organisation, and on
an understanding of the need to integrate business processes across the supply
network.
While its maturity as a discipline in its own right is still far from complete, we
believe that it is time to take a current and fresh look at logistics management
and strategy. Tools and concepts to enable integration of the supply chain are
starting to work well. Competitive advantage in tomorrow’s world will come
from responding to end-customers better than competition. Logistics plays a vital
role in this response, and it is this role that we seek to describe in this book.
The globalisation of logistics assumes that quality can be duplicated anywhere,
that risks are relatively small, and that sustainability does not really matter. Case
study 4.2 quotes an environmental activist as saying ‘we are producing food in
one corner of the world, packing it in another and then shipping it somewhere
else. It’s mad.’ The reality is that 21st-century supply chains are developing very
different profiles from those developed by the mindsets of ten or 20 years ago.
Risk will become more important. Plans will need to be in place to prevent or
mitigate the impact of financial, operational and political uncertainty. It is both
environmentally and economically right to focus on sustainability. Logistics
stands at the heart of this debate.
This text has a clear European foundation (its currency is the euro) and an international appeal. In line with the globalisation of logistics, we have included
cases from other parts of the world than Europe – diverse though European logistics solutions are – including South Africa, the United States, Japan, China and
Australia.
xvi Preface
Accordingly, we start in Part One with the strategic role of logistics in the supply chain. We continue by developing the marketing perspective by explaining
our view of ‘putting the end-customer first’. Part One finishes by exploring the
concept of value and logistics costs. In Part Two, we review leveraging logistics
operations in terms of their global dimensions, and of the lead-time frontier. Part
Two continues by examining the challenges of coordinating manufacturing and
retail processes, and the impact on logistics of just-in-time and the agile supply
chain. Part Three reviews working together, first in terms of integrating the supply chain and second in terms of sourcing and supply management. Our book
ends with Part Four, in which we outline the logistics future challenge.
This text is intended for MSc students on logistics courses, and as an accompanying text for open learning courses such as global MSc degrees and virtual universities. It will also be attractive as a management textbook and as recommended
reading on MBA options in logistics and supply chain management.
In the second edition, we listened carefully to students and to reviewers alike
and set out to build on the foundation of our initial offering. We updated much
of the material while keeping the clear structure and presentation of the first
edition. There were lots of new cases and we updated others. We attempted to
touch on many of the exciting developments in this rapidly expanding body of
knowledge, such as governance councils, the prospects for a radio frequency
identification device (RFID) and the future of exchanges. The third edition retains the clarity and up-to-date content which have become hallmarks of the previous editions. This edition continues to provide further new and updated cases
to illustrate developments in the subject. This time, Chapters 6, 7 and 10 have
been largely reconstructed, but you will also find many improvements to other
chapters resulting from our research and work with industrial partners.
The fourth edition continues to build on the foundations we have developed
so far, while continuing to update the content and keep it abreast of the rapidly
developing logistics body of knowledge. Many of the cases have been updated
too and new ones introduced. Chapters 6 and 7 have again been largely reconstructed, and we have refocused Chapter 9 around sourcing and supply management. We have continued to develop the theme of sustainable logistics, which
we classify as a competitive priority right from the start. We are grateful to Paul
Mayhew of Bausch and Lomb, who has written the Foreword to this edition following the retirement of Alain Le Goff.
We hope that our book will offer support to further professional development
in logistics and supply chain management, which is needed today more than
ever before. In particular, we hope that it encourages you to challenge existing
thinking, and to break old mindsets by creating a new and more innovative future. Transformation of supply chains is a focus for everyone in the 21st century.
Since we launched this textbook in 2001, it has become a European best seller –
and is popular in Australia, Singapore and South Africa. It is also developing an
important following in the United States. Our book has also been launched in
local language formats in Japan, Brazil, Russia, China, Poland, Mongolia and the
Ukraine.
Authors’ acknowledgements
We should like to acknowledge our many friends and colleagues who have contributed to our thinking and to our book. Cranfield colleagues deserve a special
mention: Dr Janet Godsell, Dr Carlos Mena, Simon Templar, Dr Heather
Skipworth, Dr Paul Chapman (now at Saïd Business School), Dr Paul Baines and
Professor Richard Wilding have all made important contributions. Sri Srikanthan
helped us with the financial concepts used in section 3.2. Members of the Agile
Supply Chain Research Club at Cranfield also deserve special mention, notably
Chris Poole of Procter & Gamble (now of B&Q), Paul Mayhew of Bausch & Lomb
(who provides the foreword for the new edition), Ian Shellard and David Evans of
Rolls-Royce, Mark Brown of Pentland Brands (who updated the apparel cases 4.4
and 8.1) and Joe Thomas of Tesco (who updated Case study 1.1). We have picked
the brains of several who have recently retired from the industry, including
David Aldridge (formerly of Cussons UK), Philip Matthews (formerly of Boots
the Chemist) and Graham Sweet (formerly of Xerox, Europe). A number of professors from other universities have contributed ideas and cases, including
Marie Koulikoff-Souviron (SKEMA Business School, Nice), Jacques Colin (CretLog,
Aix-en-Provence), Konstantinos Zographos (Athens University of Economics and
Business), Huo Yanfang (University of Tianjin), Thomas Choi (Arizona State University), David Bennett (Newcastle Business School) and Corrado Ceruti (University
of Roma Tor Vergata). Many of our MSc graduates, such as Steve Walker and
Alexander Oliveira, also made important contributions. Professor Yemisi Bolumole (University of North Florida) helped us to re-draft earlier versions of the first
edition. Dr Jim Aitken (University of Surrey) contributed to our supply chain segmentation thinking in Chapter 2, and we have used his work on supplier associations in Chapter 8. We also acknowledge the encouragement of Matthew Walker
and Sophie Playle at Pearson Education in the preparation of this text and their
encouragement to meet deadlines! Also, we thank the reviewers who made many
valuable comments on earlier editions of this book. We are very grateful to all of
these, and to the many others who made smaller contributions to making this
book possible. Cathi Maryon helped to research several of the cases and to project manage the manuscript. Finally, we thank Lynne Hudston for helping wherever she could – in addition to helping to run our Supply Chain Research Centre
at Cranfield!
Publisher’s acknowledgements
We are grateful to the following for permission to reproduce copyright material:
Figures
Figure 1.2 from Operations Management, 2nd ed., FT/Prentice Hall (Slack, N, Chambers,
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D.J. 1990), © Emerald Group Publishing Limited all rights reserved; Figure 1.7 from
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service, Sloan Management Review, Spring, pp. 39–48 (Parasuraman, A., Berry, L. and
Zeithaml, V. 1991); Figure 2.5 from The impact of technology on the quality-valueloyalty chain: a research agenda, Journal of the Academy of Marketing Science, Vol. 28,
No. 1, pp. 168–74 (Parasuraman, A. and Grewal, D. 2000), With kind permission from
Springer Science and Business Media; Figure 2.6 from Relationship Marketing for
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and Peck, H. 1995); Figure 2.8 from Developing Supply Chain Strategy: A management
guide, Cranfield University (Harrison, A., Godsell, J., Julien, D., Skipworth, H.,
Achimugu, N. and Wong, C. 2007); Figures 2.10, 2.10, 2.13 from Developing Supply
Chain Strategy: A management guide, Cranfield University (Harrison et al 2007); Figure
2.14 from Logistics – the missing link in branding: Bacalhau da Noruega vs. Bacalhau
Superior, ISL – Logistics Conference Proceedings, Lisbon (Jahre, M. and Refsland-Fougner,
A-K 2005); Figures 3.1, 3.3, 3.7, 3.8 from Sri Srikanthan; Figures 3.9, 3.10 from Understanding the relationships between time and cost to improve supply chain performance, International Journal of Production Economics (Whicker, L., Bernon, M., Templar, S.
and Mena, C. 2006), with permission from Elsevier; Figure 3.11 from Using the balanced scorecard to measure supply chain performance, Journal of Business Logistics,
Vol. 21, No. 1, pp. 75–93 (Brewer, P.C. and Speh, T.W. 2000), Reproduced with permission of Council of Supply Chain Management Professionals in the format textbook via
Copyright Clearance Center; Figure 3.12 from The Influence of Supply Chains on a
Company’s Financial Performance, Cranfield University (Johnson, M and Templar, S.);
Figure 3.13 from http://www.tesco-careers.com/home/about-us/visions-and-values;
Figures 4.11, 4.12, 4.13 from Reconfiguring the supply chain to implement postponed
manufacturing, International Journal of Logistics Management, Vol. 9, No. 1, pp. 95–110
(van Hoek, R.I. 1998); Figure 6.1 from Manufacturing Planning and Control for Supply
Chain Management, 5th Ed., McGraw Hill (Vollman, T.E., Berry, W.L., Whybark, D.C.
and Jacobs, F.R. 2005), Reproduced with permission of the McGraw-Hill Companies;
Figure 6.8 from ‘Relationships in the supply chain’ in J. Fernie and L. Sparks (eds) Logistics
and Retail Management: Insights into current practice and trends from leading experts, Kogan
Page (After Fernie, J 1998); Figure 6.9 from Shrinkage in Europe 2004: a survey of stock loss
in the FMCG sector, ECR-Europe, Brussels (Beck, A 2004); Figure 8.6 from The impact of
modular production on the dynamics of supply chains, International Journal of Logistics
Management, Vol. 9, 25–50 (van Hoek, R. and Weken, H.A.M. 1998), © Emerald Group
Publishing Limited all rights reserved; Figure 8.9 from www.santonishoes.com,
xx Publisher’s acknowledgements
reprinted by permission of Santoni Shoes; Figure 8.12 from An empirical investigation
into supply chain management, International Journal of Physical Distribution and Logistics Management, Vol. 28, No. 8, pp. 630–650 (Speckman, R.E., Kamauff, J.W. and Myhr,
N. 1998), © Emerald Group Publishing Limited all rights reserved.; Figure 8.14 from
The pervasive human resource picture in interdependent supply relationships, International Journal of Operations and Production Management, Vol. 27, No. 1, pp. 8–27
(Koulikoff-Souviron, M. and Harrison, A. 2007); Figure 9.6 from McKinsey Quarterly
2007/1, Excerpt from McKinsey Quarterly 2007/1. www.mckinseyquarterly.com
Copyright © 2010 McKinsey & Company. All rights reserved. Reprinted by permission.; Figure 9.10 from An integrative framework for supplier relationship management, Industrial Management and Data Systems, Vol. 110, No. 4, pp. 595–515 (Park, J.,
Shin, K., Chang, T-W., and Park, J. 2010), © Emerald Group Publishing Limited all
rights reserved; Figure 9.15 from Vendor rating for an entrepreneur development
programme: a case study using the analytic hierarchy process method, Journal of the
Operational Research Society, Vol. 50, pp. 916–30 (Yayha, S. and Kingsman, B. 1999)
Tables
Table 2.5 from Strategy formulation in an FMCG supply chain, Proceedings of the EurOMA
Conference, Copenhagen (Godsell, J. and Harrison, A, 2002); Table 2.6 from Logistics
service measurement: a reference framework, Journal of Manufacturing Technology
Management, Vol. 15, No. 3, pp. 280–90 (Rafele, C. 2004), © Emerald Group Publishing
Limited all rights reserved.; Table 3.1 from Management Accounting, Official Terminology,
CIMA (1989); Table 3.2 from Sri Srikanthan; Table 3.6 from www.supply-chain.org;
Table 4.7 from www.rlec.org, reprinted by permission of Reverse Logistics Executive
Council; Table 4.8 from CSR Guideline for Suppliers, revision 2, October 2006,
www.nec.co.jp/purchase/pdf/sc_csr_guideline_e.pdf, reprinted by permission of NEC
Corporation
Text
Case Study 1.2 from JIT in a distribution environment, International Journal of Logistics
and Distribution Management, Vol. 9, No. 1, pp. 32–4 (Eggleton, D.J. 1990); Case Study
1.5 from Backing the future, Marketing (00253650), pp. 16–17 (Barry, M. and Calver, L.
2009), Reproduced from Marketing magazine with the permission of the copyright
owner, Haymarket Business Publications Limited.; Case Study 2.4 from Based on an
article by John Arlidge, Sunday Times, 26/10/2003; Case Study 2.6 from Logistics – The
Missing Link in Branding: Bacalhau da Noruega vs. Bacalhau Superior, ISL – Logistics
Conference Proceedings, Lisbon (Jahre, M. and Refsland-Fougner, A-K. 2005); Case Study
4.2 from Sunday Times, 20/05/2007 (Jon Ungoed-Thomas); Case Study 4.2 from
www.cranfield.ac.uk/cww/perspex, Reprinted by permission of Cranfield University;
Case Study 6.1 from Dr. Heather Skipworth, after an original by Dr Paul Chapman;
Case Study 8.3 from Integration of the Supply Chain: The effect of Inter-Organisational
Interactions between Purchasing-Sales-Logistics, PhD thesis, Cranfield School of Management (Aitken, J. 1998); Case Study 8.5 from Professor Huo Yanfang, Tianjin University
School of Management; Case Study 8.7 from The pervasive human resource picture in
interdependent supply relationships, International Journal of Operations and Production
Management, Vol. 27, No. 1, pp. 8–27 (Koulikoff-Souviron, N. and Harrison, A. 2007)
In some instances we have been unable to trace the owners of copyright material,
and we would appreciate any information that would enable us to do so.
How to use this book
This book is divided into four parts, centred around a model for logistics. The
model for logistics is introduced in the first chapter of Part One, which places logistics in terms of its contribution to competitiveness, customer service and the
creation of value. Part Two of the book focuses on leveraging logistics operations
within the context of quality of service and cost performance objectives. Part Three
focuses on working together, and Part Four pulls together four elements of leadingedge thinking in logistics, homing in on future challenges for the subject.
Part One
Part Two
Competing
through
logistics
Leveraging
logistics
operations
Part Three
Part Four
Working
together
Changing
the future
The book has been arranged to ta
