Supply Chain Management

Successful supply chain management requires cross-functional integration of key business processes within the firm and across the network of firms that comprise the supply chain. It is focused on the management of key relationships and the improvements in performance that can be achieved. However, in many companies executives struggle to achieve the necessary integration. The problem is that they do not fully understand the supply chain management processes and the linkages necessary to integrate those processes. By understanding them and recognizing why and how they should be implemented, executives will be able to create more integrated supply chains which will lead to increased revenues and profitability for all member firms.

The first edition of Supply Chain Management: Processes, Partnerships, Performance was published by SCMi in 2004. The 2nd, 3rd and 4th editions were published in 2006, 2008 and 2014, respectively.

What’s New in the 5th Edition?

Since the 4th edition, we have collaborated with executives and academics to improve the book. Highlights of changes in the 5th edition include:

The original product-intensive SCM framework was developed in cooperation with executives from major manufacturing companies. Since services represent 87% of the US economy, we worked with executives from 13 service companies to develop a SCM framework for services. The industries represented included: airline, banking, car rental, credit card, grocery retail, healthcare provider, parcel delivery, personal finance, private jet charter, professional service, restaurant, retail, and food service. All but one of the 13 companies had sales of over $1 billion. Nine had revenues of more than $10 billion and three of those companies had revenues more than $50 billion. We found that there were no differences in the supply chain maps of product-intensive companies and service-intensive companies. Because there are no pure product or service supply chains, both frameworks are necessary to manage a supply chain. For example, every customer category of a global car rental company with sales of more than $10 billion involves a service but three of the seven major categories of suppliers, automobiles, fuel and automobile parts are for products and the other four are for services. The 5^th edition addresses this complexity.
There is a new chapter, Service Delivery Management, which in service-intensive companies is the process that takes the place of the manufacturing flow management, order fulfillment, and returns management processes in the product-intensive SCM framework. Service delivery management includes all activities necessary to design a supply chain network that enables the company to meet customers’ demand for services while maximizing profitability. The service delivery management process team is responsible for ensuring that the product/service agreements with customers are designed, coordinated, and executed seamlessly, so that they provide value and meet profitability goals. It includes ensuring that resources and capabilities have the flexibility to accommodate demand.
There is a new assessment tool for the service delivery management process.
The chapters have been organized into five parts: I) Introduction to Supply Chain Management; II) Building the Network of Relationships in the Supply Chain; III) Supply Chain Operations; IV) Managing the Supply Chain; and V) Assessment Tools.
Learning objectives and end-of-chapter questions have been added to each chapter.
A more detailed summary of a Partnership Meeting conducted in the United Kingdom was added as an Appendix to the chapter Developing and Implementing Partnerships in the Supply Chain.
A more comprehensive example of a demand management assessment at a major sporting goods company has been added.
The chapter on mapping for supply chain management now includes service companies.
Updates and enhancements have been made to all the chapters. New industry examples from implementations of the framework, and integration of material specifically focused on the issues of sustainability and risk management have been added. For instance, the Manufacturing Flow Management and Lean Thinking and Supply Chain Management chapters have been combined and thoroughly rewritten.
In Chapter 18, Supply Chain Management: The Next Steps, we introduce the combined SCMi framework that prepares management to respond to whatever challenges and opportunities might arise, and we reinforce that the SCMi framework is a new business model for all companies.

First Page of Each Chapter

Authors

Douglas M. Lambert is Raymond E. Mason Chaired Professor Emeritus at Fisher College of Business, and Academy Professor, The Ohio State University. From 1992 to 2020, he served as Director of The Global Supply Chain Forum, a team of academics and executives who conducted research on the critical issues related to achieving excellence in Supply Chain Management. Dr. Lambert has been a faculty member for over 500 executive development programs in North and South America, Europe, Asia and Australasia. He is the author or co-author of eight books and more than 100 articles. Dr. Lambert has worked with numerous international companies in the USA and overseas to implement the framework and tools described in this book. He holds an honors BA and MBA from the Ivey Business School at Western University and a Ph.D. from The Ohio State University.

Matias G. Enz is an Associate Professor of Supply Chain Management at the University of Missouri-St. Louis. He was a member of The Global Supply Chain Forum research team from 2008 to 2020 conducting research on value co-creation and supply chain management for services. He has facilitated meetings using the Partnership Model and the Collaboration Framework in Australia, UK, and USA and taught the SCMi supply chain management framework on executive programs in Europe, North America and South America. He holds an industrial engineering degree from Universidad Nacional de Rosario, Argentina and received his Ph.D. from The Ohio State University.

I have employed many of the fundamental building blocks of supply chain management spelled out in this book to transform a supply chain into a competitive weapon. If you want to deliver extraordinary business results in a challenging economic environment, study and apply the principles of this book.

Once again Douglas Lambert and his colleagues have given us fresh insights into how supply chains should be structured and managed to ensure enduring competitive advantage. Based on original research across many sectors the authors provide practical guidance on how to achieve excellence in the supply chain through building better and stronger relationships.

This book develops a robust model of supply chain management processes and properly defines them so that they can be managed. This enhanced understanding enables the enterprise to realize that supply chain management is too important to be just a function. It is everybody’s job

This book provides an entry into the opportunities afforded from a more sophisticated approach to supply chain management, covering the theory through to practical application, against the backdrop of 21st century supply chains and the issues they face.

In this book, we discovered a framework to help us manage business relationships and make cross-functional integration a reality. We strongly believe that managing relationships both with customers and suppliers represents an opportunity to achieve a competitive advantage in a market where products tend to become commodities.