ABSTRACT
This chapter outlines a variety of analytical techniques and tools that can enhance management understanding and command of the supply chain. The concept of “business process re-engineering” is receiving heightened attention in business literature and among top executives in an increasing number of companies. There have exceptions, of course—companies that realized the importance of first simplifying or improving the underlying process before overhauling the system. The most effective mechanism a company can use to assure operational coordination is the periodic sales and operations planning meeting (SOPM). The application of the “Quality Philosophy” or the “Total Quality Concept” (TQC) to the logistics function is accelerating. Non-competitive benchmarking involves comparing the methods and costs of generic business functions with companies in non-competing businesses that are perceived to be superior at a particular function. The distribution manager in most companies is in the best position to initiate and lead a customer profitability analysis.
