Flow is an important resource not only for procurement and supply chain management professionals, but for any manager concerned with enterprise-level success.
This book describes the concept of flow, which evokes physical properties that exist in nature, such as the flow of electricity, the flow of time, and the flow of materials. In terms of process optimization, flow encompasses the integration of end-to-end supply chains and the movement towards relocation of the global supply base to near-shore and on-shore geographies. Achieving flow is essential for organizations seeking to improve their supply chain performance in a time of increasing disruption that is likely to continue for some time.
This book highlights the high-level effectiveness of business strategies that use predictions based on the sequence of world events, global supply chains, and data gathered by smart technologies. By broadly applying physical laws to the global supply chain, Rob Handfield and Tom Linton explore the impact of supply chain physics on global market policies, such as tariffs, factory location, pandemic response, supply-based geographies, and outsourcing.
The authors provide specific recommendations on what to do to improve supply chain flows, and include important insights for managers with examples from companies such as Biogen, General Motors, Siemens, and Flex on their response to COVID-19.
Show moreFlow is an important resource not only for procurement and supply chain management professionals, but for any manager concerned with enterprise-level success.
This book describes the concept of flow, which evokes physical properties that exist in nature, such as the flow of electricity, the flow of time, and the flow of materials. In terms of process optimization, flow encompasses the integration of end-to-end supply chains and the movement towards relocation of the global supply base to near-shore and on-shore geographies. Achieving flow is essential for organizations seeking to improve their supply chain performance in a time of increasing disruption that is likely to continue for some time.
This book highlights the high-level effectiveness of business strategies that use predictions based on the sequence of world events, global supply chains, and data gathered by smart technologies. By broadly applying physical laws to the global supply chain, Rob Handfield and Tom Linton explore the impact of supply chain physics on global market policies, such as tariffs, factory location, pandemic response, supply-based geographies, and outsourcing.
The authors provide specific recommendations on what to do to improve supply chain flows, and include important insights for managers with examples from companies such as Biogen, General Motors, Siemens, and Flex on their response to COVID-19.
Show morePreface
1. Supply Chain Flows and Immunity
2. Time, Velocity, and Immunity
3. Thermodynamics and Evolutionary Flow
4. Compression: The Localization of Supply Chains
5. Freedom of Flow: The Adoption of Digital Dexterity
6. Electrical Current
7. Future Supply Chain Flows
Notes
Index
Rob Handfield, PhD is the Bank of America University Distinguished Professor of supply Chain Management at North Carolina State University and Executive Director of the supply Chain Resource Cooperative.
Tom Linton is a globally recognized former Chief Supply Chain Officer, He currently is a senior advisor at McKinsey and Company, a board member at Sierra Wireless Inc. as well as a senior advisor to supply chain software leaders Resilinc and Project 44.
"Rob Handfield and Tom Linton shed a bright light on the most
overlooked reality in the supply chain world: movement is money.
This supply chain duo makes a compelling case that we will face big
challenges in our increasingly VUCA world, where the physical
realities - and physics - of supply chains will be pushed to the
limit. A big takeaway is clear: the stakes are high, but the
rewards will be great for those who can build and maintain
resilient supply chains."--Jason Schenker, Author of Futureproof
Supply Chain and Chairman of The Futurist Institute
"This is a great read for operations strategists and practitioners
alike, who are looking to understand how to think through and
navigate complexities of supply chain design. Leaning on creative
parallels to fundamental laws that govern science, the book
provides great insights into how one should think of optimization
and evolution of supply chains in today's world."--Joydeep Ganguly,
Chief Operating Officer, Gilead Science
"The use of flows to explain and structure supply chain strategies
and operations offers a powerful lens to integrate theories
originated from physical laws with the evolving realities of supply
chains. It provides the reader with insights and perspectives on
how to innovate in this dynamic world."--Hau Lee, Thoma Professor
of Operations, Information and Technology, Stanford Graduate School
of Business
"Linton and Handfield provide another, and timely, insightful look
into the roots of supply chain performance. In a post-global world
the 'laws' they reveal are essential reading to those wanting to
understand or practice supply chain management." --Yossi Sheffi,
Elisha Gray II Professor of Engineering Systems, Massachusetts
Institute of Technology, and author of A Shot in the Arm
"By recognizing our supply chain's composition, learning its
behaviors and optimizing it responsibly, we can be more resilient
to unforeseen challenges and get ahead of discoverable, predictable
changes."--Bob Murphy, VP Supply Chain & Chief Procurement Officer,
IBM
"Linton and Handfield continue to challenge conventional supply
chain heuristics. Even this deep into the twenty-first century,
supply chains are too frequently understood - and managed - as a
sequence of transactions. And they are too frequently managed
retroactively, in response to events, rather than proactively,
anticipating events. Applying principles from the physics of flow
systems, the authors argue that our supply networks cannot remain
rigid and static, but must evolve over time. This new conceptual
approach importantly includes not just anticipating supply
disruptions (i.e., supply risk) but also understanding changing
demand signals, an often overlooked element of managing supply
networks. Finally, this new way of thinking shifts attention from
last century's static financial metric - i.e., cost. In this new
way of understanding supply systems, the authors focus on free cash
flow. An emphasis on cost ignores the many other ways in which
companies inadvertently destroyed value, by increasing inventories,
or ignoring obsolescence, or failing to understand how freight
delays extended the cash conversion cycle. In contrast, free cash
flow incorporates all these elements of working capital, allowing
companies to understand better how their supply ecosystems create
value holistically."--Tom Derry, Chief Executive Officer, Institute
of Supply Management
"Once again, Linton and Handfield provide great insight for today's
C-suite, enabling them to build out actionable pathways for
improved supply chain decision making. The authors' expertise and
wisdom is shared throughout the book and is powerful for
accelerating the flow and optimizing financial results."--Chris
Collier, retired Chief Financial Officer, Flex
"Supply chains are the most complex system of transactions in our
human civilization. Market principles of supply and demand bring
them to life, but the physics of flow and friction explain their
behavior. In a world threaded with connectivity but constrained by
borders, we need sophisticated thinking to find the patterns that
will shape the future of supply chains - and by extension, the
world economy and geopolitics as well. This paradigm shifting new
book by Handfield and Linton could not be better timed or
reasoned."--Parag Khanna, Founder of FutureMap and author of
Connectography
"In Flow, the authors raise some innovative, provocative, and in
many instances counter-intuitive ideas on how companies can enhance
their supply chain efficiency. This is a very valuable contribution
to finding long-term supply chain solutions." --Kevin Brown, Chief
Supply Chain Officer, Dell Technologies
"This is the second collaboration between Tom Linton, who has led
one of the largest and most complex supply chains in the world, and
Rob Handfield, a thoughtful and creative academic. They use the
lens of physics to develop powerful insights on important issues in
supply chains, like the need for speed, visibility, and
localization. This book is an excellent read for anyone who wants
to see the supply chain of the future, now."--Marshall L. Fisher,
Professor of Operations, Information and Decisions, The Wharton
School, University of Pennsylvania
"This is an excellent book all supply chain practitioners should
read to survive and thrive in this complex and interconnected world
we now live in. There are many great real-life examples which are
excellent and relevant."--Daniel Koh, VP Global Strategic Sourcing,
HPE
"Supply chain impacts grab the headlines and elevate logistics
visibility as a business imperative. In this impressive
illumination of the modern supply chain, Tom Linton and Rob
Handfield explain the importance of thinking through this global
movement of things by addressing the underlying rules that make it
work." --Jett McCandless, Founder & CEO, project44
"Our supply chains are failing to keep up with our new world, where
decades of established norms are shifting at unprecedented speeds.
Tom and Rob have laid out the blueprint for how we can evolve our
organizations to harness the unprecedented access to data,
technology and innovation we now have. At a time when business
leaders are trying to use up valuable cash for just-in-case
inventories, they have shown us how SPEED, resulting from deeper
visibility and stronger supplier relationships across tiers, can
create fast-flowing supply chains that actually free up cash. A
must read for business leaders."--Bindiya Vakil, CEO, Resilinc
Corporation
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