What Everyone Needs to Know About SCM

Supply chain management (SCM) is not just for supply chain managers. People in other parts of the organization need to understand SCM as well because they directly influence the success or failure of supply chain initiatives. ere!s a primer to enlighten your colleagues about supply chain management while helping them see more clearly the important role that they play in achieving supply chain e"cellence. Imagine a concept thatif fully understood and applied across organizationscould ADVERTISEMENT increase operating and financial performance, provide new sources of competitive advantage, and lead to a better managed business. Imagine further that while almost everyone has heard of this concept, many do not understand its meaning. And those who do understand it have widely different interpretations about its scope and application. There's no need to imagine: That concept is supply chain management !"#$. #ost e%perts will li&ely agree on the basic components, and perhaps even the definition, of a supply chain. '%perience tells us, however, that many non(supply chain managers do not fully understand what supply chain management truly entails or appreciate the advantages of a well(managed supply chain. )urthermore, these managers may not &now how they contribute to the success or failure of their company's supply chain initiatives. To create a world(class supply chain, everyone in the organization must understand and support the conceptnot *ust those directly involved in supply chain operations. This article presents supply chain management in a way that will ma&e it understandable to non(supply chain managers. As part of that discussion, we will sort through the conflicting views of supply chain management and clarify some fundamental concepts and definitions. +hen doing this, it is helpful to present supply chain management in terms of its broad, overall ob*ectives and not *ust in terms of specific activities or strategies. The article concludes by highlighting what non(supply chain managers should &now about the four pillars, or enablers, of supply chain e%cellence. #eeded$ % Clearer &nderstanding ,art of the reason why supply chain management is so difficult to understand is the multitude of perspectives and definitions surrounding the term. According to educator and author -obert #. #oncz&a of #ichigan !tate .niversity, these multiple perspectives often can be found even within the same organization. The following e%ample demonstrates the potential negative conse/uences of this type of situation. '%ecutives at a ..!. 'ast("oast consumer products company recently concluded that the team they assembled to pursue supply chain improvements had failed to achieve anything of significance. An e%ternal review concluded that the team members did not fully understand the concept or ob*ectives of supply chain management. They could not grasp what their company was trying to achieve in ta&ing an integrated view of the enterprise or what a shift from a vertical functional$ to a horizontal cross( functional$ organization really entailed. !everal members admitted that they had difficulty viewing issues beyond their limited functional perspective. +hen the team did pursue improvement opportunities that crossed departmental or functional boundaries, they often encountered vocal resistance from functional managers. This e%ample shows that supply chain understanding must cross organizational boundaries. #anagers and team members in other functional areas need to understand the concept because they often play an integral role in supporting supply chain activities and processes. '%hibit 0 summarizes some of the ways that non(supply chain managers affect supply chain management initiatives.$ )or e%ample, it is hard to imagine conducting a comprehensive supplier evaluation without assessing a supplier's technical capabilities. This assessment, however, re/uires the active support of the

engineering community. As engineers increasingly participate in activities, such as supplier evaluation, that reach beyond their areas of technical e%pertise, their understanding of supply chain management must increase accordingly. 1b*ective evidence, however, suggests that many engineers do not fully understand supply chain management. A comprehensive review of &nowledge and competency areas by the !ociety of #anufacturing 'ngineers found that supply chain management was the second highest( rated &nowledge shortfall for engineers.0 The same is li&ely true of the other functional areas shown in the e%hibit. A more widespread understanding of supply chain management can lead to some important benefits and outcomes. )irst, it should help non(supply chain managers realize that supply chain initiatives are not narrow pro*ects but rather core components of organizational goals. This is an important point for most companies to communicate. A recent survey by 2eloitte "onsulting revealed that 30 percent of 4orth American manufacturers ran&ed supply chain management as very important or critical to overall company success although only 5 percent said their supply chains were currently world class$. !econd, supply chain initiatives are more li&ely to receive needed support when others across the organization understand the importance of supply chain management. )inally, the cross(functional nature of supply chain management demands functional support before companies can create a world(class supply chain. The ris&s involved in not creating this wider understanding are as great as the potential benefits. -ecent research by 6ain 7 "ompany and the ..!. 2epartment of "ommerce revealed that the opportunity for improved supply chain performance is largely unrealized. 5 1ne could argue that this opportunity gap is partially driven by a lac& of clear understanding among non(supply chain managers. 'ispelling the Confusion To foster a deeper understanding of !"# among non(supply chain managers, it's best to begin with the basics. )irst, a definition: A supply chain is a set of three or more organizations lin&ed directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer. !upply chain management, then, involves proactively managing the two(way movement and coordination that is, the flows$ of goods, services, information, and funds from raw material through end user. A company with a 8supply chain orientation8 is one that recognizes the strategic value of managing operational activities and flows across a supply chain. 4on(supply chain managers need to recognize that !"# re/uires the coordination of a wide range of activities and flows that e%tend across functional and organizational boundaries. These activities include purchasing and material releasing, inbound and outbound transportation, receiving, materials handling, warehousing and distribution, inventory control and management, demand and supply planning, order processing, production planning and scheduling, shipping, processing, and customer service. "ompanies have been performing these activities for many years. 6ut what they haven't been doing until recently is viewing them as interrelated activities that need to be aligned, coordinated, and synchronizedthe essence of effective supply chain management. Accordingly, non(supply chain managers should be encouraged to view the supply chain as a set of interrelated processes rather than a series of discrete, nonaligned activities. These processes are designed to achieve a specific ob*ective or outcome, such as new product development, customer order fulfillment, or supplier evaluation and selection. 9iewing supply chains as a set of systematic processes ma&es sense for a number of reasons. Almost by definition, processes usually move across functional boundaries. A process view, therefore, aligns well with a supply chain orientation. Also a well(defined, well(communicated process provides everybody with a standardized wor&flow and eliminates the need to reinvent procedures every time the company develops a product, fulfills an order, or evaluates a supplier. )urthermore, having a systematic process ma&es it easier to incorporate best practices and &nowledge, which enhances the li&elihood of success. ,erhaps most importantly, if an organization has formal, defined processes, it can document and measure them, which facilitates supply chain improvements. )inally, viewing supply chain activities within the conte%t of globally aligned processes ma&es it possible to implement consistency across geographic units. 4on(supply chain managers also need to understand how the term supply chain relates to other terms with which they may be familiar, such as supply management, physical distribution, and value chain. '%hibit 5 presents the supply chain within the conte%t of these other terms. The e%hibit shows, for e%ample, how supply chain management encompasses both physical distribution and supply management. !upply or material management activities focus on the upstream portion of the supply chain and are mainly concerned with suppliers and inbound logistics. ,hysical distribution activities involve that part of the supply chain where wor&(in(process becomes finished goods and moves toward customers. .nderstanding the relationships between the terms is important to being able to

conceptualize a holistic supply chain.

Additionally, non(supply chain managers often as& about the difference between a value chain and a supply chain. The confusion surrounding these terms is not surprising as some sources use the two interchangeably. According to #ichael ,orter, who first articulated the concept in the 03:;s, the value chain is comprised of both the primary and support activities shown in '%hibit 5. .nder our definition, the supply chain consists only of the primary activities or the operational part of the value chain. The supply chain, therefore, can be thought of as a subset of the value chain. In other words, while everyone in the same organization wor&s in the value chain, not everyone within the organization wor&s in the supply chain. .nli&e a supply chain, which is by definition both internally and e%ternally focused, ,orter's original value(chain model focused primarily on internal participants. "urrent thin&ing, however, has e%panded that original model to include suppliers and customers that reside upstream and downstream from the focal organization. 6y adopting this e%tended enterprise view, companies e%plicitly recognize that competition is no longer between companies but rather between coordinated supply chains or networ&s of companies. ,rogressive firms understand that managing cost, /uality, and delivery re/uires this e%tended attention to suppliers and customers that reside several tiers from the producer. % #ew (ay )o *iew SCM #any articles in previous issues of !upply "hain #anagement -eview describe how progressive organizations have striven to create a sustainable advantage by implementing a wide array of supply chain strategies and approaches. 6ut instead of thin&ing in these terms, non(supply chain managers may find it helpful to step bac& and consider what broad ob*ectives can be achieved through supply chain initiatives. These ob*ectives include the effective management of ris&, relationships, and trade(offs. 1nce they understand these broad ob*ectives, non(supply chain managers can begin to comprehend why their companies are pursuing certain supply chain strategies and approaches. They will also begin to better understand that the *ob of today's supply chain professional is increasingly one of ris&, relationship, and trade(off management. These three &ey management activities are discussed below. +ffective Management of ,is-is& involves the possibility that an undesirable event or action will occur that affects business or supply chain operations. It represents variability or uncertainty that deviates from a desired state. The effective prevention and management of ris& is logically a ma*or supply chain goal. !upply chain variability or uncertainty can result from many scenarios such as the discontinuation of a vital component or material, a railcar derailing, or an inaccurate forecast$ that, if realized, have varying degrees of impact. '%perts have classified supply chain ris& into these categories: design, /uality, cost, availability, manufacturability, supply, financial, legal, and environmental, health, and safety. < +hile a certain amount of ris& is always present, supply chain professionals must develop cost(effective ways to prevent ris& and, if a ris& materializes, minimize its effect. ,ractices such as /uality certification, supplier development, information sharing, improved forecasting, and effective contracting can actually prevent ris& from occurring in the first place. =owever, if a company can only commit limited resources to ris& prevention, it might have to focus on buffering against the effects of supply chain uncertainties instead. In this case, supply chain professionals manage rather than prevent ris&. '%amples of ris& management techni/ues include alleviating uncertainties by using multiple supply sources or holding safety stoc&. #ost organizations rely on a combination of ris& prevention and ris& management techni/ues to address uncertainties. !upply chain managers add value to their organizations by conceptualizing ris& and establishing the procedures, practices, and contingency plans to manage those ris&s. In all li&elihood, these contingency plans, procedures, and practices will affect people not directly involved in supply chain management. )or this reason, managers and employees in other parts of the organization need to understand the ris& management ob*ectives of supply chain management. )or e%ample, non(supply chain personnel may be more comfortable with changes in inventory policies if they understand that those changes are being made to mitigate ris&s caused by variable forecasting in Asia.

+ffective Management of Supply Chain ,elationships If functional managers accept that competitive success is increasingly a matter of one supply chain e%celling over another, they will certainly see the importance of creating and maintaining effective supply chain relationships. This does not mean, however, that all supply chain relationships need to be viewed as special or uni/ue. Instead, different relationships re/uire different levels of attention, information sharing, and collaboration. !upply chain professionals add significant value by determining the appropriate relationship for a particular partner and selecting the most appropriate supply chain approach. '%hibit < presents a 5%5 matri% that shows how different spend items re/uire different &inds of supplier relationships and different types of supply chain practices. A conceptually similar approach can be applied downstream with customers.$ The goods and services in the transaction /uadrant, for e%ample, have a lower total value with a limited supply mar&et. !upply chain professionals create value here by reducing the transaction cost of the purchase. 'ven when an item has many potential suppliers, the cost of searching for and comparing sources outweighs the value resulting from this effort. In reality, relationships are not a concern in this /uadrant. The mar&et /uadrant includes standard lower(to(medium total value items or services that are characterized by many suppliers and low supplier(switching costs. !upply professionals rely on competitive bidding, shorter(term contracting, reverse Internet auctions, and blan&et purchase orders when obtaining mar&et items. -elationships with the providers of these items are typically competitive and price focused. Thus, pursuing a higher(level relationship here would be unproductive because the cost of the relationship would li&ely outweigh the resulting benefit. The leverage /uadrant features goods and services that benefit from consolidating volumes with fewer supply chain members. >onger(term contracts for larger volumes are typically used in this /uadrant. "ontract negotiations should focus on factors that can affect supply chain performance such as cost, /uality, delivery, pac&aging, logistics, inventory management, and service. 2epending on the item, a total cost rather than price focus begins to emerge here. -elationships with suppliers that provide leveraged items should be, at a minimum, cooperative. The strategic /uadrant includes goods and services that consume a large portion of total purchase dollars, are essential to a product's function, or help differentiate the product in a way valued by the end customer. These goods and services often involve customization rather than standardization. "onse/uently, this /uadrant features fewer suppliers that can satisfy a purchaser's re/uirements. Although strategic items represent a small portion of total transactions and part numbers, they often have a disproportionate effect on product cost or performance. 1pportunities usually e%ist to create value through collaborative efforts. The following illustrates how applying the ideas in '%hibit < can help non(supply chain managers understand supply chain practices and relationships. !everal years ago, ?eneral #otors announced a four(year agreement with 6ethlehem !teel now part of International !teel ?roup$ to fulfill a significant portion of the company's 4orth American steel re/uirements. ?# also announced a 0;(year agreement with Alcan to provide substantial amounts of aluminum. The Alcan agreement included formulas to stabilize aluminum price volatility, the e%change of technical personnel, and *oint efforts to increase the use of aluminum in ?#'s cars and truc&s. +hile steel and aluminum are both important to ?#, they each call for a different type of relationship. The steel mar&et has many /ualified suppliers. )urthermore, steel is a mature and even declining material in cars and truc&s. A logical approach is to consider it a leverage item and pursue cooperative relationships. Aluminum, on the other hand, is increasing in importance, and there are only two ma*or 4orth American producers that can meet ?#'s re/uirements. This mar&et situation ma&es aluminum a strategic item that would benefit from a collaborative relationship. )rom a supply perspective it ma&es sense for ?# to pursue different approaches and relationships that match the characteristics of the steel and aluminum mar&ets. !upply chain managers must have the ability to evaluate supply chain re/uirements and identify the relationship that best satisfies a particular re/uirement. ,ursuing a cooperative or collaborative relationship when a competitive relationship is more appropriate li&ely creates no new value. "onversely, pursuing a competitive relationship when a cooperative or collaborative relationship ma&es sense will

li&ely leave some value unrealized. +ffective Management of )rade./ffs +hen organizations ma&e choices to accept less of one thing in order to receive more of something else, trade(offs result. Although trade(offs are not uni/ue to supply chain management, the scope of activities ta&ing place under the supply chain umbrella ma&es trade( offs common in this space. To illustrate, 2avid !imchi(>evi of #IT has identified five common trade(offs that are present in most supply chains, summarized in '%hibit @.@ These trade( offs often represent a source of conflict among functional groups, particularly when measurement systems encourage narrow or uncoordinated behavior. !upply chain e%ecutives, if given the authority, are in a uni/ue position to view the different sides of a trade(off and 8referee8 an outcome that supports organizational rather than functional goals. >aura Ashley, the producer of women's fashions and household accessories, e%emplifies a company that is effectively managing trade(offs. )or many years it operated with five ma*or warehouses, eight logistics carriers, and ten unconnected information systems. Ta&ing a supply chain(wide view, >aura Ashley wor&ed with a third(party logistics provider and decided to serve global customers from a single distribution center. ,lanners could now pool random demand, allowing spi&es in one area to offset lower(than(e%pected demand in another. +hile the single hub system resulted in higher transportation costs, >aura Ashley has realized overall cost benefits from better scheduling of transportation, less cross(shipping of material across warehouses, and better inventory management. .sing the e%pertise of a third( party logistics provider and trading off inventory and transportation costs helped re*uvenate an ailing brand. !ometimes the logic for a particular supply chain decision such as deciding to serve customers from one distribution center$ is only discernable from a high(level view of the organization. This is particularly the case for non(supply chain managers who are not directly involved in supply chain decisions. '%plaining !"# in terms of trade(offs might ma&e the reasons for these decisions more understandable. )he 0our Pillars of +"cellence 1nce managers have a better perspective of supply chain management, they need to recognize that supply chain e%cellence does not happen *ust because a company announces its commitment to the concept. +hat separates companies that achieve real benefits from those that don't is a commitment to the four pillars of supply chain e%cellence. These pillars enable the development of progressive supply chain strategies and approaches. '%hibit A presents the four pillars. This model

maintains that firms have certain guiding philosophies and business re/uirements relating to areas such as globalization, customer responsiveness, or supply chain integration. The four pillars of supply chain e%cellence, in turn, support the development of strategies and approaches that promote the effective management of ris&, relationships, and trade(offs. 4on(supply chain personnel should be familiar with the four pillars because of the increasing li&elihood that they will be as&ed to participate in a supply chain initiative. )or e%ample, many supply chain innovations now are being enabled by new technology. The IT department, therefore, will naturally be involved in implementing and integrating this technology. =uman resources will be involved, too, ma&ing sure that the organization has access to supply chain personnel who have the proper &nowledge and s&ills. )urthermore, non(supply chain personnel may be affected by the changes companies ma&e to put these pillars in place. "hanges in organizational design, for e%ample, often have far(reaching effects across a company. Pillar 1$ Capable uman ,esources =aving the right people with the right s&ills is the first step toward supply chain e%cellence. '%hibit A lists what leading companies have identified as the &nowledge and s&ills demanded of today's supply chain professional. +hy is an awareness of these s&ills important to non(supply chain managersB The reality is that few, if any, organizations have a department of supply chain management. -esources to support supply chain initiatives usually come from many parts of the company, including those outside of the traditional supply chain domain. Increasingly, supply chain initiatives are team based using part(time members from across an organization. The most valuable team members will be those who can ta&e a broad view of business activities while adopting a process view of tas&s and activities. #ost companies have created regional or decentralized operations that are proficient at tactically managing transactions and material flows within an uncoordinated networ&. =owever, effective supply chain management re/uires close collaboration and coordination with engineering, procurement, logistics, suppliers, customers, and mar&eting to coordinate activities and material flows. .nfortunately, a level of mistrust sometimes characterizes the relationship between these groups. To be effective, a supply chain manager needs to be able to bridge those gaps and connect with these groups. Individuals with cost management s&ills also are becoming critical to supply chain management. As companies are reluctant to raise prices to customers, cost management becomes essential to longer( term success. !upply chain specialists at a ma*or ..!. chemical company, for e%ample, are re/uired to evaluate ma*or supply chain decisions using total cost models with data provided by suppliers and other sources. Another company re/uires the development of a hypothetical 8best8 supply chain cost with potential savings identified in three areasmaterial savings, currency savings, and savings resulting from opening a material re/uirements to competition. A third organization re/uires the identification of upstream cost drivers past immediate suppliers, which it then targets for improvement. ?aining access to the right s&ills will re/uire a sound human(resources strategy that includes developing high(potential individuals from within the supply chain operation, recruiting talent from other functional groups or companies, and hiring promising college graduates. 2etailed and regular assessments of employee &nowledge and s&ill sets also must ta&e place with the appropriate training developed in response. These efforts should strive to satisfy an overarching ob*ective: 'nsure that /ualified participants can support supply chain re/uirements. Pillar 2$ Proper /rganizational 'esign Although often overloo&ed, organizational design plays a &ey role in promoting or impeding the attainment of supply chain ob*ectives. 1rganizational design refers to the process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility re/uired to achieve company( and supply chain(wide goals and ob*ectives. A '%hibit A highlights some of the features that increasingly will be part of the organizational design at most companies. !maller companies may find, however, that they will have less of a need to implement some of these supply chain design features because they do not have the scope, comple%ity, and resources of larger companies.$ In particular, cross(functional teams will continue to play a ma*or role in coordinating and managing supply chain activities. 4on(supply chain managers need to be aware of this trend because they may be as&ed to provide individuals to wor& on supply chain(related teams. They also should be aware that the use of organizational wor& teams does not guarantee greater supply chain success. )ew studies have established a clear connection between teaming and higher performanceand even fewer have /uantitatively assessed the impact of teaming on corporate performance. 6ecause of the high costs associated with teams, companies should be selective about forming them.

Pillar 3$ ,eal.)ime and Shared 4nformation )echnology IT e%cellence supports supply chain e%cellence by enabling the seamless movement of information, which leads to more informed supply chain decisions. -egardless of the type of information technology platform or software used, supply chain systems should capture and share information across functional groups and organizational boundaries in real time or near real time. This may involve transmitting the location of transportation vehicles via global positioning systems, transmitting material re/uirements with +eb(based '2I electronic data interchange$ systems, or capturing demand and replenishment data using bar(code technology. -adio(fre/uency identification -)I2$ tags also are beginning to capture real(time data about material and product movement. 4on(supply chain managers should understand the important role that this shared, real(time data provides to the supply chain because they often are the ones providing that data. In many instances, supply chain personnel, systems, and process rely on datasuch as /uality information, customer order information, or point(of(sale informationthat is being collected or generated by non(supply chain personnel. '%amples showing the relationship between information technology and supply chain e%cellence are plentiful. 1ver the last ten years, "hevronTe%aco has demonstrated the powerful impact of an information(enabled supply chain. .sing state(of(the(art information systems that provide real(time data, the company has shifted from a supply(driven business model to a demand(driven one. C #ar&eting, logistics, supply chain planners, and refining operations all are using demand data captured at filling stations and point(of(sale data from large industrial customers. This data is used to plan refinery loads, determine spot(mar&et purchases, and schedule refill deliveries. The sharing of data across the company has improved decision ma&ing at virtually every point in the customer(facing supply chain. Pillar 5$ ,ight Measures and Measurement Systems The right measures and measurement systems represent the fourth pillar supporting supply chain e%cellence. .nfortunately, too few organizations have recognized the important relationship between measurement and supply chain e%cellence. This is evidenced by how few companies have implemented measurement systems for their end(to(end supply chain. A survey by ,urchasing magazine revealed that A0 percent of responding companies lac&ed a system for measuring supplier performance, a &ey component of supply chain effectiveness. )urthermore, only one in ten respondents claimed to be satisfied with the present state of their measurement system. A study sponsored by the "ouncil of >ogistics #anagement revealed that while a ma*ority of companies measured some aspect of supply chain performance, most focused on internal supply chain activities rather than the end(to(end supply chain processes. D 4on(supply chain managers may as&, why is measurement important enough to be considered a pillar of supply chain e%cellenceB )irst, ob*ective measurement supports fact(based decision ma&ing, which is an important criteria of total /uality management. !econd, measurement is an ideal way to communicate re/uirements to other members of your supply chain and to promote continuous improvement and change. The ,urchasing survey cited above revealed that D; percent of respondents believed their supplier measurement system noticeably improved the performance of measured suppliers. )urthermore, 3; percent of respondents indicated that suppliers were moderately or highly responsive to reports of poor performance as revealed by measurement systems. Third, measurement conveys to employees what is important by lin&ing critical measures to desired business outcomes. )inally, the measurement process helps companies identify whether new initiatives are producing the desired results. #easurement may be the single(best tool to control a diverse set of supply chain activities and processes. There is no definitive or prescriptive set of supply chain measures nor is there one best way to measure supply chain performance. 6ut we do &now that effective measures and measurement systems satisfy certain criteria. These criteria, which '%hibit A summarizes, provide a set of principles for assessing potential supply chain measures and measurement systems. Together these four pillars support the development of progressive approaches and strategies that begin to define supply chain e%cellence. If organizations don't build and continually reinforce these pillars, they will increasingly fall behind those that do. The bottom line: 6oth supply chain managers and non(supply chain managers need to agree on the importance of these enabling capabilities and wor& to put them in place. ,ealizing the Promise of SCM 2ifferent perspectives, competency gaps, and performance shortfalls related to supply chain management underscore the need for a deeper and broader understanding of this conceptparticularly

among those not directly wor&ing in the supply chain space. "ompanies that ignore this need will forever wonder why their e%pectations of supply chain management fail to match the reality. +idening our understanding of supply chain management will re/uire a mi% of formal and informal efforts. )ormally, supply chain managers will have to educate and train non(supply chain personnel, invite functional managers to supply chain planning sessions, and wor& with non(supply chain managers to identify high(potential people to support formal supply chain initiatives. Informally, supply chain managers must ta&e every opportunity to convince others of the logic of pursuing integrated supply chain activities. 6ecause at the end of the day, if supply chain management fails to provide the advantages promised by its proponents, it will be placed in a pile with other business fads that promised so much but delivered so little. 0ootnotes 0 !ociety of #anufacturing 'ngineers. 8#anufacturing 'ducation ,lan ,hase III: 5;;0(5;;5 "ritical "ompetency ?aps,8 2earborn, #ich., p.@. 5 "oo&, #iles and -ob Tyndall. 8>essons from the >eaders,8 !upply "hain #anagement -eview, 4ovemberE2ecember 5;;0, p. 5<. < Fsidisin, ?eorgeG Ale% ,anelliG and -ebecca .pton. 8,urchasing 1rganization Involvement in -is& Assessments, "ontingency ,lans, and -is& #anagement: An '%ploratory !tudy,8 !upply "hain #anagement: An International Hournal, vol.A, no. @, 5;;;, p. 0:3. @ !imchi(>evi, 2avidG ,hilip Iamins&yG and 'dith !imchi(>evi. 2esigning and #anaging the !upply "hain, "oncepts, !trategies, and "ase !tudies, 6oston: #c?raw(=ill Irwin, 5;;<, pp.0;5(0;D. A =amel, ?. and ".I. ,ralahad, "ompeting for the )uture, =arvard 6usiness !chool ,ress: "ambridge, #ass., 033@, as reported in 2on =ellriegel, Hohn +. !locum, and -ichard +. +oodman. 1rganizational 6ehavior, "incinnati: !outh(+estern "ollege ,ublishing, 5;;0, p. @D@. C +orthe, 6en. 8!upply "hain #anagement2rilling for 'very 2rop of 9alue,8 "I1 #agazine, Hune 0, 5;;5, obtained from http:EEwww.cio.comEarchiveE D Ieebler, Hames !.G 2avid A. 2urtscheG and 2. #ichael >edyard, Ieeping !core: #easuring the 6usiness 9alue of >ogistics in the !upply "hain, 1a& 6roo&, Ill.: "ouncil of >ogistics #anagement, 0333.