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Supply Chain Vector: Linking Execution of Global Business Models with Financial Performance, by Daniel Gardner
Fee Download Supply Chain Vector: Linking Execution of Global Business Models with Financial Performance, by Daniel Gardner
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In this cutting-edge book, Gardner clearly defines global supply chain management and logistics and articulates what it takes to be successful on the international stage.
- Sales Rank: #2064822 in Books
- Brand: Brand: J Ross Pub
- Published on: 2004-03-01
- Original language: English
- Number of items: 1
- Dimensions: 9.38" h x .77" w x 6.10" l, 1.07 pounds
- Binding: Hardcover
- 252 pages
- Used Book in Good Condition
About the Author
Daniel L. Gardner, CPIM, President, Latin America Division, Exel Global Logistics, has more than 17 years experience in the Third Party Logistics Business spanning a variety of industries and geographies across supply chains. He is a published author and active speaker. Mr. Gardner previously distinguished himself as a Professor of Logistics & Supply Chain Management at both the University of Miami and Florida International University Graduate Business Schools, where he continues to hold adjunct professor status.
Most helpful customer reviews
0 of 0 people found the following review helpful.
Supply Chain Vector
By Larry Zgrabik
Very good flow and application of the general information, makes for a very good resource document.
0 of 0 people found the following review helpful.
Supply Chain Vector
By Bruce J. Follansbee
With logistics getting more and more attention, and with its pervasive involvement in both materials and distribution management, logistics can be viewed as the glue that holds the entire supply chain mosaic together. As organizations realize the impact that supply chain management has on the bottom line, Supply Chain Vector provides an excellent explanation as to how the financials all tie together and how best to leverage the supply chain. Gardner goes into great detail, including a case study at the end of the book, illustrating how the actions of supply chain managers impact the overall financial performance of an organization.
Especially interesting to me was the discussion relating to the use third party logistics providers (3PLs). With integrated logistics, 3PLs offer the ability for a single entity to manage the entire process, including international air/ocean/overland transportation, customs clearance services, warehousing, distribution, etc. By consolidating these activities with a single 3PL, customers benefit by lead time reduction, and enhanced visibility and cost improvement. The author advocates the use of 3PLs throughout the process, even suggesting that in embracing lean manufacturing, just as raw material suppliers need to be involved in the design process, so should 3PLs as well. From a tactical perspective, potential improvements in the areas such as order management and documentation flow are plentiful and can be facilitated by the 3PL firm.
By going a step further and using an LLP - Lead Logistics Provider or 4PL, supply chain executives manage relationships, not processes (classic outsourcing). By rationalizing the number of 3PL relationships and choosing an LLP organization they can focus on the real business of supply chain management: the control of landed costs, stabilization of lead times, the pursuit of reduced inventory levels, and removing waste, or non-value-adding activities, e.g. overspending on services, administrative overload, extended transportation lead times and redundant processes.
Advantages of working with a 3PL are:
*Local expertise
*Key government or business contacts
*Knowledge of customs procedures
*Logistics Infrastructure
*3PL activities transcend industries:
-Accumulated expertise and access to non-proprietary best practices and application of lessons learned.
The use of the same 3PL at origin and destination removes several steps from the process. Because waste is interpreted as time unnecessarily spent. The time savings in documentation exchange is of immediate appeal to lean supply chain managers. A 3PL can play a value-adding role in the proper handling of documentation:
"3 Cs"
Consistent: All information is the same on all documents: consignee/shipper name and address, product description, pieces, weight, country of origin, marks and numbers.
Complete: Commercial invoice, packing list, bill of lading, certificate of origin, import license, certificate if inspection, letter of credit.
Correct: All information on documents is accurate and matches cargo: labels, piece count, purchase order number, sales order number, and import license.
Whether or not an organization is a disciple of the outsourcing philosophy, it is undeniable that certain supply chain functions are best carried out by a 3PL provider. Not surprisingly, it is precisely these functions that collectively drive supply chain performance, creating the opportunity for financial enhancements on both the income and balance sheet. Similar to the benefits of working with a contract manufacturer, when negotiated and managed correctly, an outsourced 3PL model offers advantages that a company could never achieve on its own.
Cost benefits of working with a 3PL:
1)Payroll - avoid investment in logistics department, labor intensive warehousing and trucking operations.
2)Communication - Communication can consume up to 15¢ of every margin dollar. 3PLs can save customers the time and expense of addressing logistics-related issues with clients, suppliers and strategic partners around the world.
3PLs can decrease a client's investment in raw materials, work-in-process, and finished goods, reduce the need for clients to tie up cash in warehouses, trucks and other distribution-related assets. In addition, a 3PL can be engaged to work on reducing transportation lead times to the operational and financial benefit of the client.
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