ABSTRACT

This chapter begins with the meaning of supply chain engineering (SCE) and describes, at a high level, the types of decisions made in managing a supply chain. It introduces a variety of supply chain performance measures and shows how they relate to a company's financial measures. The chapter discusses the importance of SCE and the distinguishing characteristics of those firms recognized as leaders in supply chain management (SCM). It focuses on location and distribution strategies for designing and operating supply chain networks. Enablers make things happen and, in the case of SCM, are considered essential for a supply chain to perform effectively. The chapter also discusses outsourcing decisions and supplier selection. The efficiency of a given supply chain focuses on how well resources are utilized across the chain in fulfilling customer demand. The chapter concludes with a discussion of supply chain logistics, risk pooling strategies, and contracting in supply chains.