INSEAD Library

Includes bibliographical references and glossary

Digitized

Essentials of Logistics and Management Contents Chapter 0 Introduction 0.1 0.2 0.3 0.4 What is "The Essentials of Logistics and Management" ? ...................... 1 New stakes, new challenges for logistics ............................................... 1 Logistics: a holistic approach .................................................................. 3 Acknowledgements..................................................................................... 5 Chapter 1 Financial accounting 1.1 1.2 1.3 1.4 1.5 1.6 Introduction ..................................................................................................7 The balance sheet: current assets........................................................... 10 The balance sheet: liabilities and shareholder's equity......................... 12 The income statement............................................................................... 15 The statement of cash flows..................................................................... 17 Working capital .......................................................................................... 19 1.7 Financial ratios........................................................................................... 19 1.8 Analyzing the income-statement ratios.................................................... 22 1.9 Balance sheet standards by Industry....................................................... 24 1.10 Additional disclosures and audit reports.................................................. 24 1.11 Conclusion................................................................................................... 25 1.12 Glossary....................................................................................................... 26 1.13 Bibliography................................................................................................ 28 1.14 The authors................................................................................................. 29 Chapter 2 Logistical strategy and globalization 2.1 2.2 2.3 2.4 Organization and competition in a globalized economy......................... 31 Global logistics........................................................................................... 40 Bibliography................................................................................................ 52 The author.................................................................................................. 52 Chapter 3 Customer service management 3.1 3.2 3.3 3.4 3.5 3.6 Introduction................................................................................................. 55 Attaining total customer satisfaction and harnessing technology in services .................................................................................................. 57 Developing cross-functional coordination in services............................ 62 Innovative architecture, service capability and customer loyalty.......... 69 Off shoring services for competitive advantage...................................... 74 Concluding remarks................................................................................... 82 3.7 3.8 Bibliography...................................................................................................... 82 The author......................................................................................................... 83 Introduction....................................................................................................... Forms and strategies of design........................................................................ Discovery of stochastic lags and oversized inventories.................................... Designing the logistics project's life cycle......................................................... Measuring the risk ........................................................................................... Simulating the risk profile of the logistics project.............................................. Designing with multicriteria decision-making tools........................................... Bibliography...................................................................................................... The author......................................................................................................... Introduction....................................................................................................... Production, logistics and transport................................................................... Logistical management of transport.................................................................. Conclusions ..................................................................................................... References....................................................................................................... The author........................................................................................................ 85 86 88 91 97 99 103 106 107 109 109 114 131 135 135 Chapter 4 The structure and the operations of logistics systems 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 Chapter 5 Transport management as a key logistics issue 5.1 5.2 5.3 5.4 5.5 5.6 Chapter 6 Logistics of international trade 6.1 6.2 6.3 6.4 6.5 6.6 6.7 Introduction....................................................................................................... Key logistics options......................................................................................... Major aspects of an international trade transaction ......................................... The international movement of goods............................................................... Border crossing issues .................................................................................... Recommended readings................................................................................. The authors .................................................................................................... Supply chain management............................................................................... Managing variety.............................................................................................. The supply chain in the digital era.................................................................... Supply chain management and strategy.......................................................... The authors ..................................................................................................... 137 138 143 154 168 171 172 173 186 193 198 204 Chapter 7 Designing the supply chain 7.1 7.2 7.3 7.4 7.5 Chapter 8 Marketing and purchasing management 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Introduction....................................................................................................... Marketing evolution: widening scope and customer focus................................ Understanding market dynamics - relationships and networks of actors............................................................................................................ Trade marketing, ECR and category management........................................... B to B marketing - building relations for long-term partnership......................... Project marketing - selling customized networks.............................................. Conclusion........................................................................................................ Bibliography...................................................................................................... The authors ...................................................................................................... 207 207 209 217 219 223 227 228 228 Chapter 9 Production systems 9.1 9.2 The just in time approach, of misleading simplicity .......................................... 231 Computerized approach to production management: MRP (Manufacturing Resources Planning)................................................................ 247 9.3 9.4 9.5 Interdependence of methods and representations.................................... Bibliography............................................................................................... The author................................................................................................. 252 254 258 257 258 260 262 268 273 276 278 280 281 Chapter 10 Operations research in logistics 10.1 What is operations research? ...................................................................... 10.2 Vehicle routing problems.............................................................................. 10.3 The traveling salesman problem................................................................... 10.4 Solution methods for the TSP....................................................................... 10.5 Solution methods for the vehicle routing problem......................................... 10.6 Real - life constraints.................................................................................... 10.7 Arc routing problems.................................................................................... 10.8 Conclusion.................................................................................................... 10.9 Bibliography.................................................................................................. 10.10 The author.................................................................................................. Chapter 11 Modeling and simulation in logistics 11.1 Introduction................................................................................................... 11.2 Discrete-event simulation ............................................................................ 11.3 Mathematical toolbox.................................................................................... 11.4 Applications.................................................................................................. 11.5 Bibliography.................................................................................................. 11.6 The authors ................................................................................................. 283 283 287 312 321 322 Chapter 12 Information systems 12.1 Introduction................................................................................................... 12.2 Information Systems (IS) vs Information Technology (IT)............................. 12.3 Information Systems..................................................................................... 12.4 Conclusion and Perspectives........................................................................... 12.5 Glossary....................................................................................................... 12.6 References/Useful Links (as of March 2007)................................................ 12.7 The author.................................................................................................... 323 324 324 336 338 339 340 Chapter 13 Information technology for logistics 13.1 Introduction................................................................................................... 13.2 Enterprise Resources Planning (ERP)......................................................... 13.3 Supply Chain Collaboration (SCC)............................................................... 13.4 Digital Market (DM)....................................................................................... 13.5 The author.................................................................................................... 341 342 346 349 359 Chapter 14 Forecast analysis and forecasting models 14.1 Introduction................................................................................................... 14.2 Model application.......................................................................................... 14.3 Characteristics of a chronological series and forecasting basics.................. 14.4 Examples of forecasting models................................................................... 14.5 Forecasting model: application..................................................................... 14.6 Models and forecast results.......................................................................... 14.7 Quality of a forecast...................................................................................... 14.8 Interpretation of forecast results................................................................... 14.9 Forecasting approach, application ............................................................... 14.10 Conclusion.................................................................................................. 14.11 Glossary..................................................................................................... 14.12 General bibliography................................................................................... 14.13 The author.................................................................................................. 361 362 362 363 364 367 369 372 376 378 379 379 379 Chapter 15 Financial elements 15.1 Introduction................................................................................................... 15.2 Optimization of internal flows by traditional structures of financing ............................................................................................... 15.3 Securitization and structured financing......................................................... 15.4 Optimization of investment decisions ........................................................... 15.5 Financial choice............................................................................................ 15.6 Financial consequences of methods of finance............................................ 15.7 Conclusion.................................................................................................... 15.8 Bibliography.................................................................................................. 15.9 The author.................................................................................................... 381 382 384 387 393 398 408 408 489 Chapter 16 Logistics: processing and controlling 16.1 Logistics business processes....................................................................... 16.2 Business process management ................................................................... 16.3 Controlling..................................................................................................... 16.4 Activity based costing................................................................................... 16.5 The author.................................................................................................... 411 421 425 433 439 Chapter 17 World-class management 17.1 Introduction................................................................................................... 17.2 The process of management (POM)............................................................. 17.3 The policy fundamentals............................................................................... 17.4 The policy dynamics..................................................................................... 17.5 Policy implementation and review................................................................. 17.6 Policy assessment and audit........................................................................ 17.7 Conclusion.................................................................................................... 17.8 Bibliography.................................................................................................. 17.9 The author.................................................................................................... 441 443 443 451 458 459 464 464 466 Chapter 18 World-class logistics 18.1 Structure and organization............................................................................... 18.2 Logistics organisation................................................................................... 18.3 Concepts and best practices......................................................................... 18.4 Outsourcing.................................................................................................. 18.5 Inbound supply chain - requisition to pay (RTP) process.............................. 18.6 Outbound supply chain - order to cash (OTC) process................................. 18.7 Conclusion.................................................................................................... 18.8 The author.................................................................................................... 467 468 474 480 484 489 492 493 Chapter 19 Managing human resources 19.1 Introduction................................................................................................... 19.2 The context of a project................................................................................ 19.3 The actors in the project............................................................................... 19.4 Major problems............................................................................................. 19.5 Team motivation .......................................................................................... 19.6 Conflicts in projects....................................................................................... 19.7 The factors of project success...................................................................... 19.8 Check-list: do and don't................................................................................ 19.9 Bibliography.................................................................................................. 19.10 The author.................................................................................................. 495 498 501 505 506 509 512 515 516 517