Supply Chain Optimization: Building the Strongest Total Business Network / Edition 1

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As the myriad of companies that have recently downsized are coming to realize, it's difficult to pursue increased profits with reduced resources. Supply Chain Optimization outlines a strategy for overcoming this problem by breaking down the boundaries that have traditionally segregated supply chain participants from one another - fractionalizing their earning power. By analyzing the entire process, from initial supply to ultimate consumption, the authors help readers to identify the goals, avoid the pitfalls, and implement this new method of doing business. At the heart of the authors' plan is a four-step model to mobilize joint effort and focus resources from suppliers, manufacturers, distributors, and retailers on initiatives that have a high pay-back potential. The book includes case studies that show what a wide range of companies are actually doing to achieve supply chain optimization. Companies profiled include: Proctor & Gamble, Baxter Healthcare Corporation, Packaging Corporation of America, and Dominick's. Supply Chain Optimization offers survival tools for companies of all sizes. The authors describe consortiums, or "share groups", of smaller companies that can compete with the volume leverage of large corporations, superstores, and warehouse stores. By analyzing their shared supply chain and pooling their available resources, these consortiums can find hidden savings to protect their profit margins and remain competitive in today's marketplace.

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Editorial Reviews

Publishers Weekly - Publisher's Weekly
The authors, principals of A.T. Kearney Management Consultants, have helped many businesses achieve performance gains. Drawing on their experience, Poirier and Reiter explain how companies should eliminate every inefficiency existing within their delivery systems and redefine and reengineer supply chains to establish an error-free, mutually beneficial network extending from original supply to final consumption. Unless such supply chains are formed, they argue, corporations may find themselves out of business in today's competitive environment. The authors present a complex and innovative proposition in an insightful, straightforward way, carefully defining specialized terms and illustrating their theses with actual case studies. They stress that firms should focus on what consumers consider valuable, with customer satisfaction the key measure rather than benefit to manufacturer or retailer. Information technology capable of providing accurate, up-to-the-minute data plays a critical role in developing a successful inter-enterprise supply chain partnership. Human frailtiesa win-lose attitude, reluctance to share and lack of trustare what will most likely cause a partnership to fail. This work warrants scrutiny by manufacturing and retail executives. Illustrations not seen by PW. (July)
A four-step model for creating partnerships between suppliers, manufacturers, distributors, and retailers in order to survive the competition (or eliminate it). The business consultant co-authors analyze the process from initial supply to consumption, and identify the goals and pitfalls of doing business with "supply chain optimization," including case studies from Proctor & Gamble, Healthcare Corporation, and Dominick's. These examples form the basis for smaller company "share groups" that pool resources to find profit margins. Annotation c. Book News, Inc., Portland, OR (
Mary Whaley
Poirier and Reiter show how companies that form a supply chain that creates, distributes, and sells products or services can and should work together to establish a supply network with an unbeatable competitive advantage. They explore various approaches to cost savings, business partnering, reengineering the supply chain, and utilizing the field of logistics, which has matured into an important business practice. Using their own research and case studies, the authors point out that the only way to bring the supply chain network to optimization is to share savings across the group of supply-chain participants and to seek investment opportunities to benefit all participants in the future. Obstacles to achieving these goals include reserving benefits only for upstream constituents, lack of trust between partners, and protection of turf. The optimum strategy is to manage the group within the supply-chain system as if it were one organization, not independent entities with separate agendas. The authors cite Jack Welch, chairman of General Electric, as a CEO who "actively seeks to incorporate this attitude into "the culture of his company.
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Product Details

  • ISBN-13: 9781881052937
  • Publisher: Berrett-Koehler Publishers, Inc.
  • Publication date: 1/28/1996
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 300
  • Product dimensions: 6.43 (w) x 9.58 (h) x 0.98 (d)

Meet the Author

Poirier is a partner in CSC National Supply Chain Practice, an adjunct management professor, and the author of several business titles.

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Table of Contents

1 The Supply Chain 1
2 The Pursuit of Supply Chain Optimization 31
3 The Interenterprise Solution 54
4 A New Look at Business Partnering 80
5 Overcoming Obstacles to Success 106
6 Reengineering the Supply Chain 127
7 Advanced Partnering 160
8 Logistics as the Driving Force 198
9 Creating the Virtual Network 225
10 Bringing the Network to Optimization 265
References 287
Index 289
The Authors 299
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