Index

3M,57

Acrilan, xvapplication of global forces framework ,

24-34Asian crisis, 24

Advanced planning and scheduling, 59Agri-busines s, xviiAgro-ecological zones, 267A-Licen se, 257Antidumping, 55, 58, 60Anupindi , Ravi, xvii , 306Apparel industry / Apparel goods, 310Apple Computers

and competitive priorities, 10Aschkenase , Steven, xviAsia,41Asian Crisis 1997, 24Asian currency devaluation, 126ASICS chips, 15Assets

intangible assets , 57, 60intellectual assets, see Intellectual property

Auctionspecial, 298standard, 298, 299

Automot ive industry, 42, 43, 55--60low-pollution vehicles, 59

Barry, M. J., 292BMW, 43Bolton, Jamie M., xviBonded

area, 212consolidation center, 213, 220consolidation facility, 202terminal ,212

Bottom line, 60, 61

Brand integrity, 56BRIC countries, xivBullwhip effect, 401Business innovation, 196

Canonglobal location , 13

Carlsberg, 54Cement supply chain, 347CEMEX supply chain , xvii, 345, 346, 349, 350,

352CEPA, 248, 249, 260, 261Chang, Ben, xviiChannels

oilseed, 274, 280wheat, 287

Charlotte, xvChemicals industry, 44Chen, Wesley, xviiiCheung, Raymond , xviChina, 38,41,42,45,52-58,63

engineering talent, 12high-tech exporter, 12logistics cost as percentage of GOP, 17low labor rates, 17R&D, 12, 15semiconductor industry, 12

China logistics status/challenges, 233Chinese government , 179Chrysler and Mitsubishi

and technology sharing , 14circulation system , 178Cisco, xiiiCNF,62Coffee

Arabica , 292, 295clean, 295,296,299, 300green, 292, 295

458 BUILDING SUPPLY CHAIN EXCELLENCE IN EMERGING ECONOMIES

raw, 295-297, 300Robusta , 292, 295

Coffee and farm equity, 396, 397Commissions agent services, 157Commodity exchange market, 194Commodity services, 272, 298, 302Compact yarn, 317Competitive drivers, 52-57Complexity masters, 46-49, 56, 59, 64-66Compliance

demands, 44drive~,49,52,57-6I,64

Composite recycle technology, 59Computers, LCD & plasma monitors for, 58Connection

activity, 201, 202, 206Connectivity, xvi, 207Conservation, 403Construction solutions, 355Consumer products industry, 37, 53, 58, 61, 63Consumer safety, 56Continuous improvement , 335Contract manufacturing, 428Copyright infringement, see Intellectual

propertyCorporate culture, 313, 332, 336, 340Corporate governance, 57Corporate mission, 75Corporate strategy, 73

example, 75-76review process, 74

Corporate values, 75Cost

advantage, 429, 430customs, duties, taxes, 84inbound materials, 83-84inbound logistics, 84inventory, 84manufacturing, 84outbound logistics, 84overhead, 84reduction, 47, 48relationship management, 85soft,85translation, 85travel,85

Counterfeit products, 55-56Cross-border, 201, 206, 209, 213Currency rate fluctuations , 42

Customer and supplier coordination, 449Customer service, 45, 47, 66Customer service : apparel industry, 331Customs/duties, 41, 58-60

customs software, 59Czech Republic, xviii

economic climate, 409

Decentralized operations, 50Delivery, 137, 142, 146, 149Dell,47Dell Computer , xiiiDell-Direct, 303Demand chain, 53-54Demand-driven value chains, 305Deming Prize winning Indian manufacturing

companies, 439Denso,59Design, 137, 142, 143-154DHL, xvi

in China, background, 246Direct distribution strategy, 411Direct trade, 298, 299Disasters, statistics on, 94, 96Dis-intermediation, 304Dispersion, 265, 267, 269, 270, 302Distribution service models

guarantees, 416overnight delivery, 413

Distribution services, 157, 160, 166, 171Distribution system in Eastern Europe , xviiiDRAM chips, 14Drug industry, 52Dual sourcing strategies, xvDuda, Stacy, xviiDuPont, 59Dynamic planning, 362

e-Choupal, 265, 266, 271advantage, 282benefits, 266, 282,290, 301,304business platform, 306network, 283regions, 272scale, 271, 283soybean, 278,28D-282virtual integration , 304wheat, 288, 289

Economic growth, 179Economic incentives, 399,405

Index

Economic zones in China , 252economies of scale, 284, 290Efficient consumer respon se, xiiiElectronics, consumer, 42, 53Emerging economies, xviEnd-of-Life Vehicles directive (ELV), 43End-to -end transformation, xviiEnge l, Douglas A., xvEngineeri ng

global location, 12Enterprise Resource Planning (ERP), 59Environment/environmental issues, 42-44, 47,

59Environmental challenges in China, 31 1Environmental protection in textile & apparel

production, 310, 323, 333, 337Esquel Group, xvii, 311, 312Europe,41-43,54,58,61,63

1992, 21CentraUEastern Europe, 37, 38, 45, 54European Union (EU), 38, 42, 58Western Europe, 37, 38, 54, 58

Export bonded warehouse, 256Extra Long Staple (ELS ) cotton, 316

Fanucglobal location , 13

Farm-to -market, 269, 270, 275, 279, 286, 295,302,304

Fast Moving Consumer Goods (FMCC), 369,374,386

Feng, Gengzhong, xviFinance/accounting, 37, 51, 57Financia l markets, 42Fitter, R., 294Flexibility, 47, 54, 64, 66Row coordinatio n, 214Food Corporation of India, 285, 287, 289, 290Food safety , 57Ford,43

and operational flexibility, 21Ford and Mazda

and technology sharing, 14Forecast erro r, 54Foreign Invested Enterprise (FIE), 169Forste r, Paul, xviFragmentation, 265, 267 , 269, 270, 272Franchising, 157, 167, 168Free Trade Zone (FTZ), 252 , 256, 261

459

Free trade, 403Freight

exchange, 202, 203flow, 201, 205, 213

Garment industry, 309in China , 309, 310

GATT,22GOP, xiii , 178General Motors 43, 62-63

global location, 12and operatio nal flexibility, 21

General Motors and Toyotaand technology sharing, 14

Germanystate-of-the-art markets, 10Volkswage n operational flexibility, 21

Glaudemans, H., 290G1axoSmithKline, 52Global competitiveness of Indian

manufacturing, 451Globa l cost forces

diminis hing importance of direct laborcosts , 16-18

China , 17hidden costs, BPO, 17hidden costs, manufacturing, 17island hopping strategy, 17Korea, 17misunderstand cost structure, 16Nike,17Taiwan, 17Thaila nd, 17

increasi ng capital intensity of productionfacilities, 19

local goverments, 19taxes, 19

new cost prioritie sGlobal manufacturing, 428Global market forces

competitive priorities , 9Apple Computers and sourcing, 10international product life cycle, 9

competitive threat, 9Kellogg and Nestle, 9

foreign competi tion, 8-11and capi tal goods, 8and consumer goods, 8

Foreign dema nd, 9Presence in state-of-the-art markets, 10-1 1

460 BUILDING SUPPLY CHAIN EXCELLENCE IN EMERGING ECONOMIES

Germany, 10Japan, 10United States, 10

Global network optimization, xvGlobal supply chain, xv, 427, 430Globali zation, 309

and customization and fast response, 9and economies of scale, 9and emerging markets, xvcontributing forces, 5Four Forces framework, 6

government's restriction , 190

Harley-Davidson, 58Health issues, 42, 44Heterogeneity , 265,267,269,270,302Hitachi and Texas Instrument s

and technology sharing, 14, 19Holistic approach , 37,44--51 ,55, 61, 64Hong Kong

high-tech exporter, 12Hoyt, David, xviiHub-and-spoke network, 284, 303. 305Human resource s, 77, 78Humanitarian aid sector, 96-98Humanitari an logistics, 93-111

challenges, 98-101strategies for improvement, 102-107

Humanitarian sector funding flows. 97-98Hybrid technology, 59

IBMglobal location , 13

IBM and Siemensand technolog y sharing. 19

ICT, 271, 303IDS, xviiImports. 41, 42, 55, 58, 60India, 42, 45, 53, 55, 58, 138

GDP, agriculture, 266, 267R&D,15talent, 12

Inefficiency, 272,277,278,296, 302Information management, 195Information standardization, 213Information technology, 350, 351, 354Ingersoll-Rand, 55Inland Steel and Nippon Steel

and technology sharing, 14

Innovation , 42, 45, 53, 55- 57, 60, 65Institutional infrastructure , 268, 269Integrated fulfilment , 155

in today' s China, xviIntegrated supply chain, 428Integrated-di stribution , 373, 374, 382Intel

local content requirements, 23Intellectual property, 44, 57, 60, 77, 78, 87

patents, 60Intermediary, 278, 295, 304Inter-modal , 201, 220

hub,206Invacare, 57Inventory, 83, 84Inventory management, 227, 240, 355Investments, 41, 42, 46-49, 55, 60,63Ireland

local content requirements, 23tax rates and pharmaceutical companies, 19

IT (Informati on Technology) applications: usein textile & apparel production, 313. 327,330

Italylocal content requirem ents, 23

ITC Group, 265, 270, 302lTC 's e-Choupal, xviiIyer, Ananth, xviii

James, LaShawn, xviiJanssen, R., 292Japan

auto industry, 14engineering talent, 12high-tech exporter, 12R&D,15state-of-the-art markets, 10steel industry, 14technical standards regulations, 23video displays, 13

Jiang, Wei, xviJohnson , Eric, xv, xviiiJohnsson, 0 ., 290

Kaplinski , R., 294Kellogg and Nestle

and competitive threat, 9Key Performance Indicators (KPl's ), 378, 380Khanna, T., 303Kiosk,27I , 278, 300, 303

Index

Kopczak, Laura , xvKorea

low labor rates, 17Koudal, Peter, xvKouvelis, Panos, xv

Labor compliance, 339Labor conditions / Working condition s, 311,

314,339Labor laws, 57Lack of professional s, 190Lean manufacturing, 76, 82Lean methodology for distribution, 227, 240Lee, Allen, xviLee, Hau L., xvii, 304Legislation , 43, 44Leung, Kevin, xviLi and Fung, xviiLife-saving supply chains, xvLiu, Wenbo, xviLocal content , 77Localization, 429, 438Logistics

at CEMEX, 353, 356cost in GDP, 184development, 203financing, 196global , 55, 62governance, xvi, 244hub, xviindustry, 178infrastructure, 202, 206management in China, xvipolicy, 182providers , 54service provider, 202

Logistics park, 255, 256Logistics University, 356Low cost manufacturing, 427,428,430Low equilibrium, 269, 270, 302Low-cost sourcing 41, 50, 52, 54, 55, 58Low-pollution vehicles , see Automotive

industryLTV and Sumitomo

and technology sharing , 14

Mackwani, Zeryn, xviiiMagretta, J., 304Management levers, 80, 82, 83

461

Managing change and competitive forces, 446Mandi,274Manufacturing and commercial enterprise, 184Manufacturing condition s

Bangkok , 129Guangzhou, 125Indonesia, 126Kuala Lumpur, 128Penang, 127Shanghai, 129

Maquiladoras, 22Market economy system , 178Market opportunities, 77, 78Marketing/sales, 38,42,46,47,51,53-54,56,

65Marubeni and National Steel

and technology sharing, 14Mattei, xvMaximize customer satisfaction , 444Mazda and Ford

and technology sharing, 14McDonalds

call center location, 14Mega-diversity, 267Mercedes- Benz

state-of-the-art markets, 11Merge, 193Mergers & acquisitions, 42, 60, 62Mexico, 38

Volkswagen operational flexibility, 21Mexico cement industry, 348Minimum Support Prices (MSP), 285-287Mitsubishi and Chrysler

and technology sharing, 14Mobile phones, 53-54, 56Mock, J., 290Motorola , 53Motorola and Toshiba

and technology sharing, 19MultiFiber Agreement (MFA), 310Multinational companies, 41, 54, 58, 59, 62Munoz, Raul, xviii

NAFTA,21Nagarajan, S., 288Nano-technology: use in fabric production , 322Nash, Keith, xviNational economy, 178National Steel and Marubeni

and technology sharing, 14

462 BUILDING SUPPLY CHAIN EXCELLENCE IN EMERGING ECONOMIES

Negotiation, 298, 299Nestle and Kellogg

and competitive threat, 9Netherlands, the, 41Niederhoff, Julie, xvNike

island hopping strategy, 17Nippon Steel and Inland Steel

and technology sharing, 14Nokia, 53, 56

global location, 12North America, 37, 38, 54, 58

Okocim ,54Operational efficiency : apparel industry , 327,

329,330Operational hedging, 133Operations mission, 79, 80Operations objectives , 78-79, 80-82Operations strategy , 78-80

review process, 8Q.-83, 9Q.-91Optimal design, 48Optimization paradox, 41ORGALIME, 43Organic cotton, 323, 334Organic farm produce , 403Outsource, xvOutsourcing, 41,42,51,179,314,324,428Outsourcing options, 71Outsourcing strategy

core vs non-core product, 123dual sourcing, 133

Outward Processing Arrangement (OPA), 319

Pacific Rim, 21Palepu, K., 303Pan Pearl River Delta, 253, 260Patent, see Intellectual propertyPauwels, J., 290Pearl River Delta, 204, 206Peleg-Gillai, Barchi, xviiPeople issues, 63-64Pereira, G., 293Performance measure , 364Performance metrics : apparel industry , 330Pharmaceuticals

capital intensity and global location , 19Phi, Joseph, xviiPhilips

technical standards regulations, 23Physical infrastructure, 268, 274, 284, 302Plan, 137, 138, 142, 144-146, 149, 152Planned economy, 178Platform, 266,273,298,299, 306Poland,54Policies' fuzziness , 190Policy deployment and daily routine

management, 447Policy relaxation, 201, 202, 211, 214Political and macroeconomic forces

Europe 1992,21exchange rates, 20GATT,22local content requirements, 23maquiladoras, 22NAFfA,21non-tariff barriers, 22operating flexibility, 20Pacific Rim, 21quotas, 22tariffs , 22textile quotas, 22trigger price mechan ism, 22WTO, 22

Postponement, 354Prahalad, C. K., 271Price competition, 54Procter & Gamble, 47Procure , 137, 142, 146-148Procurement efficiency, 272 , 273, 302Product

innovation, 42 , 45, 53, 55, 56, 65liability, 57lifecycle , 43, 53, 55quality , 39,66traceability, 43, 57

Production planning: apparel industry, 327, 328Production, 137, 140, 142, 145, 146, 148, 149,

152Productivity, 201, 205, 208, 218Public distribution system (PDS), 285Puerto Rico

tax rates and pharmaceutical companies, 19Purchasing price parity, 131Pyke, David, xv

Quick response, xiiiQuota restrictions, 309, 310, 319, 341, 342

Index

R&D (Research & Development) in the apparelindustry, 321, 335

Radio-frequency identification (RFlD), 60Rane Brake Lining, xviiiReal time supply chains , 361, 362, 363Recycling , 59

end-of-Iife recycling , 57Registration, Evaluation and Authorization of

Chemicals (REACH), 44Regulatory issues , 47, 48, 57-59Re-intermediation, 301Relay center, 201, 209, 213Research & development (R&D)/Engineering,

37,42,45-48,53,55-57,60Retailers, specialty , 53Retailing , 157, 167Revenue enhancement, 48RPID (Radio Frequency Identification) : use in

apparel production, 313, 316, 331, 332Risk management, 268, 273, 298, 299,301,302Risk,85-88

currenc~ 85-86, 87-88intellectual property, 87lead time, 86-88political, 85-86, 88quality, 55, 86-88uncertainty, 87-88

Risk-hedging strategies , xvRoad Warrior, 378Rolling mix strategy, 119Russia, 58

engineering talent, 12

Saaband operational flexibility, 21

Safeguard measures, 60Samsung,53Samyojak, 283, 303Sanchalak,279,280,282,303,304Sarbanes-Oxley regulations, 58Security concerns, 42Self-logistics, 184Sense and respond , 366Service network , 214Service parts management in emerging

economiesasset management sophistication, 230China distribution channels, 229importance of, 224-225

463

improvement opportunities, 235-240in China, xvikey factors for success, 225-228OEM challenges, 229-232profit challenges , 232-234supply chain "Building Blocks", 226-227

Seshadri, Sridhar, xviiiSeven-Eleven Japan , xiiiShanghai, xvShoran, J0' 289Siemens

global location, 12Siemens and IBM

and technology sharing , 19Silos/silo mentality, 44, 62Singapore

high-tech exporter, 12Sivakumar, So, xvii, 306Six sigma, 76, 78, 83

lean manufacturing, 435Slovakia

Volkswagen operational flexibility, 21Social infrastructure, 268, 269Social responsibility, 337Socially responsible supply chains, xviii, 392,

396,401,402,404Software integration, 60Solectron, xviiiSony,43Source, 138, 139, 153South America , 45South Korea

high-tech exporter, 12Specialty coffee supply chain, 394, 395Stable supply bases, 400Stalk, Go, 289Standardization, 50Starbucks, xvii, 392-394State-owned enterprise, 178Storage, 183Subsidies , 57Sumitomo and LTV

and technology sharing, 14Superstore international expansion

Office Depot , 418Wal-mart, 417

Supplier integration, 354Supplier management, 227, 240Supply bases from emerging economies, 392

464 BUILDING SUPPLY CHAIN EXCELLENCE IN EMERGING ECONOMIES

Supply Chain Architect, xviiSupply chain

cost optimization, 431integration, 357

Supply chain management (SCM)applications: use in textile & apparelproduction, 313

Supply chain operati ons in India, xviSupply chain reengineering, xviiSupply chain structure in the textile & apparel

industry, 315Supply chain visibility, 402Supply chains for disaster relief, 93-111Sustainable supply chains, 392, 405Suzhou Industrial and Logi stics Park, xviiiSwaminathan, Jayashankar, xviSystematic restriction, 189

Taiwanhigh-tech exporter, 12low labor rates, 17R&D,IS

Tax/taxationcorporate tax, 59indirect taxes, 59, 60, 61tax credits , 60value-added taxes, 60

Technological forcesdiffusion of technic al knowledge, 28

BPO, 12engineering, 12high-tech supplier location, 13high-technology manufacturing, 12MBAs ,I2new product design , 13R&D,12

Fewnes s, 12Mass customization, 11-12R&D facilities, 14

ASICs,I4China, 15India, 15Japan , 15Taiwan, 15technical standards, 15

Technologi cal advancements, 11-1 2Technology sharing and interfirm

collaborat ions, 14Chrysle r and Mitsubishi, 14

Ford and Mazda, 14GM and Toyota, 14Inland Steel and Nippon Steel , 14LTV and Sumitomo, 14National Steel and Maruben i, 14Texas Instruments and Hitachi, 14

Technolog y infrastructure, 49-5 I, 63Television, high-definition , 58Texas Instruments

local content requirem ents, 23Texas Instruments and Hitachi

and technology sharing, 14, 19Textile industry in India, 310Thailand

low labor rates, 17Third-party logistics, 179Thomas , Anisy a, xvTitus , A., 293Toshiba and Motorola

and technolo gy sharing, 19Total landed cost, 77, 78, 83- 85, 430Toyota, 47 , 59

and operational flexibility, 21Toyota and General Motors

and technolo gy sharing, 14TQM implem entation at Rane Brake Lining s,

447Trade barrier s: China, 34 1Tradem arks, see Intellectual propertyTradersnet, 298, 299, 301Tradex , 378Trading rights, 157, 158, 164, 171

commitments, 158Transfer price, 60Transportation, 178

management, 59optimization, 360

Transportation cost, 20 I, 206, 2 I2gap, 208

Trigantic, 378Trunk line service, 192

Unbalanced logist ics development, 185Union, 193United StateslU.S., 41, 44, 54,57,60,61

auto industry, 14"Buy Ame rican", 23engineering talent, 12logistics cost as percent age of GOP, 17state-of-the-art markets, 10

Index

steel industry, 14Technical Standards regulation s, 23

Upton, D., 271Uruguay Round Agreement on Textiles and

Clothing (ATe), 310USTER® quality certification, 314

Value chain, 42, 46, 48-53, 57capabilities, 65-66complexity, 65

Value proposition to customers in the apparelindustry, 325

Value provisioning, 265, 273Value-chain logistics, 367, 373, 374, 384Variety and SKU growth, 423Variety based strategy, 265, 272, 273Variety premium, 289Vector SCM, 62-63Vendor-Managed Inventory (VMI), 327Vertical integration, 309,311 ,315,324Visibility, 41, 49, 50, 54ViTAL,378

465

Volk, David, xviiiVolkswagen

and operational flexibility, 21Volvo

and operational flexibility, 21

Wal-Mart, xiiiWarehouse management system (WMS) , 378Wholesaling, 157World Bank, xviiiWorld Trade Organisation (WTO ), 42, 155, 156Wrinkle -free, 322WTO,xvi,22

effect on logistics industry in China, 248,260,261

Xeroxglobal location, 13

Yu, Gang, xvi

Zara, xiii

Early Titles in theINTERNATIONAL SERIES INOPERATIONS RESEARCH & MANAGEMENT SCIENCE

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* A list of the more recent publications in the series is at the front of the book *