New Course

+ INTRODUCTION TO SUPPLY CHAIN MANAGEMENT
3-D Printing, Additive Manufaturing, and Robotics
Postponement
The Lean Supply Chain
Managing Supply Chain Disruptions
Supply Chain Security
Sustainability and the “Green” Supply Chain
Innovation
The Financial Supply Chain
@ Careers in SCM and Professional Organizations
= Chapter Highlights
gw Key Terms
@ Discussion Questions
m Case Study: McNulty’s Muscular Materials (MMM)
Most of us have had the experience of sitting at a Starbucks coffee shop enjoying a cup
of coffee, a frappuccino, or perhaps a pumpkin spice latte. We have enjoyed the “Starbucks experience,” sipping a beverage, lounging in one of the many chairs, and perhaps
reading a newspaper or a good book. We may have briefly noticed that Starbucks’ coffee
beans come from all across the globe, including Guatemala, Sumatra, Brazil, Kenya, Mexico, and Ethiopia. However, we have probably not given much thought to the complexity
of decisions and coordination required to make sure that we, the customers, receive the
beverages we are enjoying as we sit in the café.
In fact, for Starbucks to be able to deliver such a high-quality, consistent, and broad
product offering to more than 23,000 store locations worldwide, it must manage an extensive global network of trading partners, from coffee growers to roasting plants to coffee
distributors. It must manage relationships, ensure the highest quality, and guarantee product availability at each store location, all the while maintaining efficiency and keeping
costs as low as possible. So while we, the customers, sit in the dimly lit and hip café
enjoying the “Starbucks experience,” behind the scenes is a company that is managing
one of the biggest global supply chains in the world.
Supply chain management (SCM) is the fastest-growing area of business today. In fact,
it is at the core of the success of such companies as Amazon, Nike, Toyota, Wal-Mart,
P&G, Zara, PepsiCo, BMW, L’Oréal, and McDonalds, as well as Starbucks, and countless
others. These companies have achieved world-class status in large part due to a strong
focus on SCM.
Most people assume that they have some idea of what SCM is about. They usually think
it is part of logistics and distribution, or purchasing, or perhaps marketing. It is likely,
however, that you do not yet know the full complexity and broad reach of this rapidly
evolving business concept. At a recent conference Paul Mathews, Executive VP of Supply
Chain for the Limited, joked that people still think of SCM as “kicking boxes and licking
labels.” He wanted to highlight the misunderstanding of SCM many people still have.
The purpose of this book is to help you develop a comprehensive understanding of
SCM. This includes understanding the key issues involved and becoming familiar with