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IVIANAGING
SUPPLY CHAINS
A LOGISTICS APPROACH WITH Sf UDENT 6 b

C. John Langley, Jr.
Georgia Institute of Technology

John J. Coyle
The Pennsylvania State University

Brian J. Gibson
Auburn University

Robert A. Novack
The Pennsylvania State University

Edward J. Bardi
The University of Toledo

SOUTH-WESTERN fe CENGAGE LearningAustralia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

Contents
Preface xxi
About the Authors xxv

Parti
Chapter

1 Supply Chain Management: An Overview 3
SUPPLY CHAIN PROFILE: SAB Distribution: A Sequel

4

Introduction 6
What Forces Are Driving the Rate of Change 7
Globalization 7
Technology 9
Organizational Consolidation 9
The Empowered Consumer 10
Government Policy and Regulation 11
ON THE LINE: Malt-O-Meal Company: Going National

13

The Supply Chain Concept 14
Development of the Concept 14
Major Supply Chain Issues 21
Supply Chain Networks 21
Complexity 22
Inventory Deployment 22
Information 22
J

ON THE LINE: How Supply Chain Variation Impacts Shareholder
Value 23

Cost/Value 23
Organizational Relationships 24
Performance Measurement 24
Technology 24
Transportation Management 24
SUPPLY CHAIN TECHNOLOGY: Transforming Supply Chain IT into
"Business Technology"

25

Supply Chain Security 26
Summary 27
Study Questions 27
Notes 28
Case 1-1: Central Transport, Inc. 29
Chapter

2

Role of Logistics in Supply Chains 30
SUPPLY CHAIN PROFILE: Jordano Foods

31

Introduction 32
What Is Logistics? 34
Value-Added Roles of Logistics 36
ON THE LINE: U.S. Providers Say Logistics in China Is on the Right
Track 38

viii

Contents

Logistics Activities 39
Scope of Activities 39
ON THE LINE: India's Logistics Challenges in a Nutshell

43

Logistics in the Economy: A Macro Perspective 43
Logistics in the Firm: The Micro Dimension 47
Logistics Interfaces with Manufacturing/
Operations 47
Logistics Interfaces