Table of Contents

CONTENTS

Introduction1

Steve Jobs and Supply Chain1

Need for Supply Chain Revolution2

Zara's Supply Chain Advantage3

TJX's Sourcing Advantage4

About the Author's Work5

The Book 6

Change Management8

PART 1

INCREASE REVENUE WITH HELP FROM SUPPLY CHAIN AND SOURCING

CHAPTER 1 Drive Customer Satisfaction--Through Excellent Service13

Benefiting From Excellent Service15

Amazon's Customer Service Advantage16

Best Buy's Challenges with Customer Service18

Increasing Service Levels19

Tailoring Service Level by Customer Segment21

Developing a Competitive Edge25

Getting Customers to Pay for Increased Service26

Improving Service with the Help of Supply Chain29

CHAPTER 2 Boost Revenue with Supply Chain33

The Airbus Supply Chain Advantage35

The Rise of Boeing35

Innovation and Supply Chain36

Airbus Enters the Market37

Boeing Plays Catch-Up39

Making Customization a Reality44

Influence Upstream R&D Process45

Segment Supply Chain by Demand Pattern47

Enabling Global Sourcing48

Moving to Demand-Driven Planning51

Boosting Revenue with Supply Chain54

CHAPTER 3 Amplify Alliance Performance with Sourcing57

Alliances Can Make or Break a Company59

Art of Alliance--Starbucks Style60

Nokia's Failure to Embrace Alliances62

Sourcing's Involvement in Alliances64

Making Alliances Successful with Sourcing73

PART 2

REDUCE BUSINESS RISK THROUGH EFFICIENT OPERATIONS

CHAPTER 4 Debottleneck the Supply Chain and Reduce Risk79

Business Risks from Supply Chain 81

Benefits of Debottlenecking Supply Chain82

Supply Chain Challenges at the Department of Defense (DoD)87

Supply Chain Complexity87

Reducing Nonmoving Inventory89

Simplifying Ordering91

Streamlining the Supply Chain91

Simplifying Delivery92

Simplifying Planning94

Simplifying New Product Introduction94

Simplifying Internal Organization Alignment96

Simplifying Engagement with Suppliers98

Fixing Supply Chain Bottlenecks98

CHAPTER 5 Increase Retail Success by Managing Store Investment103

Store Investment and Retail Success105

Retail Industry Evolution106

Store Investment107

Macy's Challenges with Store Investment109

Costco's Approach110

Evaluating Store Investment112

Reducing Store Costs115

Simplifying Store Development123

Driving Retail Success with Sourcing126

PART 3

IMPROVE PROFITABILITY FROM AREAS THAT ARE CURRENTLY OUT OF SCOPE FOR SOURCING ORGANIZATIONS

CHAPTER 6 Enhance Marketing Efficiency131

Evolving Expectations from Marketing133

Marketing by Coca-Cola134

Sourcing Organizations' Challenges with Marketing136

Lever Brothers' vs. Procter & Gamble's Approach to Marketing Efficiency137

Measuring Marketing Performance138

Marketing--Complex Services140

Creative Agencies141

Media Buying143

Direct Marketing146

Market Research148

Implementing Marketing Efficiency Program151

CHAPTER 7 Smart Real Estate Outsourcing153

Need for Smart Outsourcing155

Facilities Outsourcing at Procter & Gamble157

Cost Savings vs. Cost Reduction158

Trends159

Facilities Outsourcing: Transitioning Toward Full Service160

Failing to Achieve Cost Reductions162

Evolving Customer Expectations164

Swinging of the Pendulum: Decline of IFM165

Disrupting Industry--Short- and Long-Term Trends167

Enabling Cost Reduction with Technology170

Making Smart Outsourcing a Reality172

PART 4

DRIVE BUSINESS EXCELLENCE WITH HELP FROM SOURCING

CHAPTER 8 Source Excellence177

Excellence--Utopia or Reality?179

Apple Helping AT&T Wireless Achieve Excellence180

Other Examples182

Involving Sourcing in Excellence184

Defining Excellence186

360 Triangulation187

Supplier Workshops190

Sourcing Excellent Solutions192

Making Excellence a Reality194

Conclusion197

HP's Struggle199

Private Equity Industry Challenges200

Sustainable Competitive Advantage for Diversified Companies201

Improving Lives204

A Final Word 207

Glossary209

Notes227

Index229

About the Author

Suman Sarkar is a partner at Three S Consulting, where he has helped leading companies drive excellence in their supply chain and sourcing.

Reviews

..".clear, simple exploration of efficiencies that can be gained throughout the supply chain...thorough examination of sourcing and services and how to best meet customer needs efficiently." --Choice
..".simply and understandably laid out, making it especially useful for non-supply chain managers and executives or anyone wanting to grasp the basics of supply chain's potential." --Supply Chain Digest