Supply Chain and Logistics in National, International and Governmental Environment: Concepts and Models

329 Pages·2009·3.679 MB·English

by  Reza Zanjirani Farahani, Nasrin Asgari (auth.), Reza Zanjirani Farahani, Nasrin Asgari, Hoda Davarzani (eds.)

Contributions to Management Science
Reza Zanjirani Farahani • Nasrin Asgari
Hoda Davarzani
Editors
Supply Chain and
Logistics in National,
International and
Governmental
Environment
Concepts and Models
Editors
Dr. Reza Zanjirani Farahani Dr. Nasrin Asgari
Centre for Maritime Studies Centre for Maritime Studies
National University of Singapore National University of Singapore
Singapore Singapore
[email protected]
and
Institute for Trade Studies & Research
Tehran
Iran
[email protected]
Hoda Davarzani
Institute for Trade Studies & Research
Tehran
Iran
and
Tarbiat Modares University
Industrial Engineering Department
Faculty of Engineering
Tehran
Iran
[email protected]
ISSN 1431-1941
ISBN 978-3-7908-2155-0 e-ISBN 978-3-7908-2156-7
DOI: 10.1007/978-3-7908-2156-7
Springer Dordrecht Heidelberg London New York
Library of Congress Control Number: 2009922332
© Springer-Verlag Berlin Heidelberg 2009
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This bookis dedicatedto
ProfessorHartmutStadtler
whosebookandmentorship
paved thewayforus toacquirea
better understandingof
SupplyChainManagement
Preface
Logisticsisanintegralpartofoureverydaylife.Todayitinfluencesmorethanevera
largenumberofhumanandeconomicactivities.Inthisbook,authorstrytoillustrate
someadvancedlogisticsandsupplychainmanagementtopics,recentlymentioned
byacademicandindustrialpersonnel.Thisbookhasbeenorganizedin12chapters
such that the reader can study each chapter not only independently as shown in
Fig.1;butalsoaspartofawhole.Ifsomeonewantstostudythebookmoredeeply,
thesuggestedapproachforthisstudyisshowninFig.2.
Sothereadersofthisbookmaybedividedintoatleasttwogroups:(1)students
in Master’s courses or higher, who can use this book in their courses as a whole,
and (2) expertswho want to learn more abouta new topic in logistics and supply
chainmanagement;thisgroupmaywanttoreadachapteraboutaspecialtopicthat
isfoundinthisbook.
In the context of global competition, the more latent topics in logistics supply
chain management are fast growing. This book falls within this perspective and
presents12chaptersthatwellillustratethevarietyandcomplexityofthese topics.
Thisbookisorganizedasfollows:
Chapter1introduceslogisticsandsupplychainmanagementandcontainssome
primal definitions about these two concepts; some obstacles, prerequisites and
infrastructures of modernized logistics and supply chain management and global
supplychainmanagementareillustrated.
Chapter2concentratesonperformancemeasurementscalesandindicators.Per-
formancemeasurementistheprocessofquantifyingtheeffectivenessandefficiency
of action. Performance measurement systems are described as the overall set of
metrics used to quantify both the efficiency and effectiveness of action. After
demonstratingtheimportanceofperformancemeasurement,SCOR indicatorsand
taxonomy,aswellasbalancedscorecardsarepresentedasmorepopularapproaches.
Chapter 3 is about the global supply chain management system. “Global” ref-
erestotransactionsinvolvingindividualsorfirmsinmorethanonecountry.Supply
chainmanagementincludesintegrationandcoordinationactivitiessuchaslogistics,
marketing, sourcing, etc. This chapter focuses on globalization and its challenge;
vii
viii Preface
Fig.1 Sequencingthechaptersindependently
Fig.2 Sequencingthechaptersdependently
we assume that you have enough knowledge of SCM and explain the difference
betweendomesticandglobalsupplychains.
Chapter4isaboutnationallogisticscost.Logisticscostmeasurementisaproper
indicatorofthepastandthefuture.Asaleadindicator,Logisticscostmeasurement
would supportnationalpolicy makingand the targeteddeploymentof operational
andcapitalresources.Thischapterdemonstratestheimportanceofcalculatinglogis-
ticscost,itscomplexityandmajorcomponents.Attheend,thischapterillustrates
somecalculatingmethodsandtheirresults.
Chapter 5 focuses on spatial planning. One of the key parts of development
planning for the economic sector is planning for the geographical and spatial
development of economic activities, which is crucial in achieving balanced and
sustainable development.Spatial planningincludesmethodsthat the public sector
Preface ix
utilizestoinfluencethefuturedistributionoftheactivitiesinthespace.Whenspeak-
ing about the spatial aspects of logistics activities, we are concerned about the
geographical and location characteristics of the logistics industry and the conse-
quencesofthoselocations.ThischapterintroducesCoreGeographicalDimensions
ofLogistics,TheRoleofPublicSectorinSpatialPlanningandSpatialPlanningfor
Logistics.
Chapter6isaboutsupplynetworkdesign.Itisimportanttoknowtheessentials
inadistributionnetworkdesign.Toachievethis,thischapterhasageneraloverview
ofdistributionnetworksandsomeoftheirmodels.Then,inthenextparts,itfocuses
moreonthenationalandinternationalpartsofthisstoryandthetheoreticalpoints
mentionedhereareillustratedinthreecasestudies.
Chapter7containssomeusefulconceptsinoutsourcingandprivatization.Priva-
tization has gainedworldwideacceptance in the past decade. Thischapter tries to
gather some privatization definitionsand related literature. After that, some steps,
methods,results,management,monitoringandchallengesareillustrated.Attheend,
somecasestudiedaredemonstratedtoexhibittheoriesinpractice.
Chapter8concentratesonexportclusters.Industrialclusters,especiallyexport-
orientedclusters,arethenewandemergingstrategiesforcompaniesandcountries
toachieveexportdevelopmentthroughouttheworld.Aclusterisageographically
proximategroupofinterconnectedcompaniesandassociated institutionsin a par-
ticularfield,linkedbycommonalitiesandcomplementaries.Thischapterintroduces
clusters,especiallyexportones,andoneofitsfamousmodels,clusterstructureand
successfactors.Attheendofthischapter,thetheoreticalaspectsareillustratedby
somecasestudiesinpractice.
Chapter 9 discusses some of the fundamental aspects of Green Supply Chain
Management(GrSCM).First,itdiscussesGrSCM,itsorigins,advantages,barriers,
andinitiatives.Next,itreviewsgreendesign,greenoperations,greenprocurement,
and GrSCM frameworks. The chapter ends with a description of the role of gov-
ernmentsandinternationalorganizationsinpromotinganddevelopinggreensupply
chainpractices.
Chapter 10 is about logistics and supply chain management in times of disas-
ter.Thischapterprovidesanoverviewofthegrowingsignificanceofdisastersand
the role of logistics in improving the humanitarian response. Second, it discusses
relief logistics and its differences from commercial logistics. Finally, it reviews
relieflogisticssubsystemsanddescribessomeofitscriticalsubsystems.
Chapter 11 tries to demonstratemilitary logistics and supply chain. This chap-
terexplainsthefundamentaldifferencesbetweencorporateandarmysupplychain
management and investigates the supply chain management in The United States
Department of Defense (DoD). This chapter ends with concepts in practice by
depictingacaseinFinland.
Chapter12isaboutlogisticsandsupplychainmanagementinformationsystems.
Inordertoimproveagility,manycompanieshavedecentralizedtheirvalue-adding
activitiesbyoutsourcinganddevelopingvirtualenterprise(VE).Thisfacthighlights
the importance of information technology (IT) in integrating suppliers/partnering
firmsin virtualenterprisesand supplychain. Supplychain management(SCM) is
x Preface
an approachthat has evolvedfrom the integration of these considerations.So this
chapterconcentratesonthisimportantrealityandillustratesdevelopingITinSCM
and related literature. This chapter continues with e-government concept and its
relatedissues.
This manuscript ends with Chap. 13, presenting some case studies related to
supplychainmanagementindifferentcountries.
We expressourappreciationforeditorialwhomanagedto editsuccessfullythe
manuscriptsthatwerecharacterizedbyagreatvarietyofindividualpreferencesin
styleandlayout,andtoAliceBlanck,WernerA.Mu¨llerfromSpringerPublishing,
Dr. Niels Peter Thomas, Springer, Editor, Business/Economics and also Kumar
AthiappanSPiTechnologiesIndiaPrivateLtd.fortheirsupport.
Tehran,Iran RezaZanjiraniFarahani
March,2009 NasrinAsgari
HodaDavarzani
Contents
1 Overview .................................................. 1
RezaZanjiraniFarahani,NasrinAsgari,andHodaDavarzani
1.1 DefinitionofLogistics ..................................... 1
1.2 DefinitionofSCM ........................................ 3
1.3 BackgroundofLogisticsandSCMResearches................. 5
1.4 Obstacles,Pre-RequisitesandInfrastructures
ofModernizedLogisticsandSCM........................... 7
1.5 ChallengesofUnionCountriesandGlobalSCM ............... 9
1.6 LogisticsandSCMinDevelopingCountries................... 11
1.7 ResearchTrendsinLogisticsandSCM ....................... 14
References..................................................... 18
2 PerformanceMeasurement ................................... 21
SaraSharahiandMaryamAbedian
2.1 ImportanceofMeasurement ................................ 21
2.2 PropertiesofPerformanceMeasures ......................... 22
2.3 ProcessManagementSystemAnalysis ....................... 23
2.4 Process-OrientedApproach................................. 24
2.4.1 SCORModelLevelOnePerformanceMeasure
(Huangetal.2005) ................................ 24
2.4.2 MeasurementinStrategic,TacticalandOperational
Levels(Gunasekaranetal.2004)..................... 26
2.4.3 SCPinTransportLogistics(Laietal.2002) ........... 29
2.4.4 TaxonomyofMeasureofSCPinMoreDetail
(ShepherdandGunter2006) ........................ 31
2.5 Goal-OrientedApproach ................................... 35
2.5.1 SixPerspectivestoMeasurethePerformanceofSCM
(OttoandKotzab2003) ............................ 35
2.5.2 PerformanceMeasuresofPerspectives................ 35
2.6 AttributesofNationalLogisticsSystems...................... 37
xi
xii Contents
2.7 UsingtheBalancedScorecardstoManageSCP
(Bolstorff2006) .......................................... 41
References..................................................... 41
3 GlobalSupplyChainManagement............................. 43
MohsenSheikhSajadieh
3.1 GlobalSupplyChainDrivers................................ 44
3.1.1 MarketDrivers.................................... 44
3.1.2 CostDrivers...................................... 45
3.1.3 GovernmentDrivers ............................... 45
3.1.4 CompetitiveDrivers ............................... 46
3.2 GlobalVs.DomesticSupplyChains ......................... 46
3.2.1 DifferencesBetweenGlobalandDomesticSCs ........ 47
3.2.2 SelectingGlobalorDomesticSupplyChain? .......... 49
3.3 CharacteristicsofGlobalSupplyChains ...................... 50
3.3.1 Farness .......................................... 50
3.3.2 ForecastingComplexities........................... 50
3.3.3 EconomicalandPoliticalWorries .................... 51
3.3.4 InfrastructuralInsufficiency......................... 51
3.4 GlobalSourcing .......................................... 51
3.4.1 GlobalSourcingChallenges......................... 52
3.4.2 GlobalSourcingDimensions........................ 53
3.5 DemandManagement ..................................... 55
References..................................................... 56
4 NationalLogisticsCosts ...................................... 57
MirSamanPishvaee,HadiBasiri,andMohsensheikhSajadieh
4.1 ImportanceofLogisticsCosts............................... 57
4.2 ComplexityofCalculatingLogisticsCosts .................... 60
4.3 ComponentsofNationalLogisticsCosts...................... 60
4.4 FactorsAffectingNationalLogisticsCosts .................... 62
4.5 LogisticsCostsinAgriculture............................... 64
4.5.1 LogisticsCostsComponentsIncludinginMethod ...... 64
4.5.2 ResultAnalysis ................................... 65
4.6 StateofLogisticsinAmerica ............................... 67
4.6.1 LiteratureReview ................................. 67
4.6.2 CASSMethodology ............................... 70
4.7 StateofLogisticsinSouthAfrica............................ 80
4.7.1 SouthAfrica’sMethodology ........................ 80
4.7.2 ConclusionofStateofLogisticsSurvey
inSouthAfrica ................................... 80
4.8 Conclusion............................................... 82
References..................................................... 83