Global Logistics and Supply Chain Management

Global Logistics and Supply Chain Management is a comprehensive, fully up-to-date introduction to the subject. Addressing both practical and strategic perspectives, this revised and updated fourth edition offers readers a balanced and integrated presentation of Logistics and Supply Chain Management (LSCM)concepts, practices, technologies, and applications. Contributions from experts in specific areas of LSCM provide readers with real-world insights on supply chain relationships, transport security, inventory management, supply chain designs, the challenges inherent to globalization and international trade, and more.

The text examines how information, materials, products, and services flow across the public and private sectors and around the world. Detailed case studies highlight LSCM practices and strategies in a wide range of contexts, from humanitarian aid and pharmaceutical supply chains to semi-automated distribution centers and port and air cargo logistics. Examples of LSCM in global corporations such as Dell Computer and Jaguar Land Rover highlight the role of new and emerging technologies. This edition features new and expanded discussion of contemporary topics including sustainability, supply chain vulnerability, and reverse logistics, and places greater emphasis on operations management.

About the authors ix

Preface xi

Acknowledgements xv

Map xvii

Part One – Context 1

1. Introduction 3

2. Globalisation and International Trade 21

3. Supply Chain Strategy: Lean and Agile 31

4. Service Supply Chains 51

5. Systems and Networks 62

Part One Case Studies 74

Dell – Pioneers in Mass Customisation 74

Jaguar Land Rover’s Global Supply Chain: From Design to Execution 77

Part Two – Transport and Logistics 91

6. Transport 93

7. Containerisation 106

8. Logistics Service Providers 117

9. Facilitating International Freight Flows 127

Part Two Case Studies 138

Air Cargo 138

Port-Centric Versus Inland Location Decisions in Gothenburg, Sweden 143

Part Three – Managing Operations 149

10. Inventory Management, Planning and Control 151

11. Materials Handling and Warehousing 167

12. Outsourcing, Offshoring and Procurement 183

Part Three Case Studies 203

The Medical Devices Company 203

Patient Safety and the Pharmaceutical Supply Chain 205

Part Four – Data and Analysis 215

13. Data Flows and Digitisation 217

14. Management Science Applications 229

15. Managing Vulnerability 239

Part Four Case Studies 252

Contamination in the Bulk Agri-Commodity Logistics Chain 252

Supply Chains Become Self-Thinking 259

Part Five – Supply Chain Design and Improvement 263

16. Sustainability in Logistics and Supply Chain Management 265

17. Emerging Supply Chain Designs 280

Part Five Case Studies 290

Why Supply Chains Should Be Involved in Product Design 290

Oman: One of the World’s Next Great Logistics Hubs? 293

Glossary G-1

Index I-1

John Mangan is Professor of Marine Transport and Logistics in the School of Engineering at Newcastle University in the UK and Visiting Professor at the School of Business, Trinity College Dublin. He has spent his entire career around the logistics sector, starting as an air freight clerk, then as a civil servant focused on marine transport, and following this he commenced his academic career – his qualifications include Master's Degrees from both Lancaster and Cranfield Universities, and he completed his PhD at the Logistics Systems Dynamics Group in Cardiff University. He previously held academic roles at: University College Dublin, the Irish Management Institute, as a Fulbright Scholar at Boston College, and the University of Hull (where he was founding Director of the University of Hull Logistics Institute) prior to taking up his current position at Newcastle University in 2008.

Chandra Lalwani is Emeritus Professor of Supply Chain Management at the University of Hull Business School. He has also held positions as Adjunct Professor at RMIT University in Australia and as Visiting Professor at Newcastle University in the UK. He holds a BEng in Electrical Engineering, an MEng in Control Systems and another MEng in Systems Engineering. He obtained his PhD from the University of Wales in 1978 based on his research on the dynamic modelling of commodity flow systems. Prior to joining the University of Hull, he taught at Cardiff University Business School where he was also responsible for doctoral research in logistics and operations management. He is editor emeritus of the International Journal of Logistics Management published by Emerald.

Agustina Calatayud is Senior Transport Specialist at the Inter-American Development Bank (IDB),* the main development institution for Latin America. She leads IDB's research and technology agendas on transportation and logistics. Before joining IDB, she worked with international organisations (European Commission, International Labor Organization and United Nations) and the public sector in the areas of logistics, transport infrastructure and private sector development. She holds a PhD in Mechanical and Systems Engineering from Newcastle University, UK, and Master's Degrees from the University of California, Berkeley and the University of Padua, Italy. Her research has received international awards from the Chartered Institute of Logistics and Transport, Emerald Publishing and the European Logistics Association.

Global Logistics and Supply Chain Management has become an established reference source for all those with a concern for how international operations can be better managed in today's inter-connected world. In this new edition the authors provide numerous insights into the ways in which global trade can be facilitated through enhanced logistics and supply chain management.
-Martin Christopher, Emeritus Professor of Marketing & Logistics, Cranfield University, UK

This fourth edition is written by a good team with experience in academia and industry. The key elements that are very useful include a managerial focus, use of simple and lucid language to explain technical and complex concepts, and a comprehensive treatment of the various issues that are part of supply chain management. I highly recommend this book and congratulate the authors on their hard work.
-Vivek Natarajan, Professor of Marketing, Lamar University, United States

This new edition of one of the established textbooks on logistics and supply chain management is very welcome. It retains the breadth, clarity and practical relevance of the previous editions while keeping up to date with new trends, concepts and research in this fast-moving subject area. The book provides a global perspective on these recent developments, using interesting new case studies to explore their supply chain impacts.
-Alan McKinnon, Professor of Logistics, Kuehne Logistics University, Germany

This book gives a truly global insight into the fascinating and important subjects of logistics and supply chain management. Managers working in the sector, as well as students of these subjects, would benefit from keeping a copy of this informative book closely to hand.
-Roberto Palacios Rodriguez, Professor, Tecnológico de Monterrey (ITESM), Mexico

This book deserves much attention from academia, practitioners and policy-makers due to its practical and strategic perspectives and also sufficient indebtedness of theoretical foundation. During my teaching and researching global logistics for many years at university, I have always felt a great need to find a book of this kind. The book is well and uniquely designed with its chapter layout of learning objectives, good summary boxes, illustrations, case examples and learning reviews. Simply following the smooth flow and enjoying its interesting story-telling style, readers can easily grasp most of the contents.
-Young-Tae Chang, President of Korea Maritime Institute and Fellow Professor, Inha University, South Korea

Global Logistics and Supply Chain Management has been the prescribed reading for my teaching since its first edition. I use this text at the undergraduate and postgraduate levels because the material has been mastered to cover both basic concepts and also more complex issues. The book is sufficiently internationalised to make it interesting to a broad range of students and the accompanying support material (especially the case studies) makes the teaching experience so user-friendly. I am thrilled with this new edition of the book and will continue to use it as essential reading for my students well into the future.
-Elizabeth Jackson, Senior Lecturer in Supply Chain Management & Logistics, Curtin University, Australia

The global environment is ever changing and this textbook provides the analytical framework and the content needed for anyone wanting to understand international logistics and global supply chain management.
-Ruth Banomyong, Dean, Thammasat Business School, Thailand

The authors have done an excellent job outlining the key concepts of logistics and global supply chain management both at the strategic and tactical levels. The abundance of examples and real-world case studies, and the focus on applications, make a valuable learning experience.
-Janat Shah, Professor and Director, Indian Institute of Management (IIM) Udaipur, India

This book is written in very simple and easy to understand language covering intricate aspects of Global Logistics and Supply Chain Management. It also includes practical and contemporary case studies which makes it very relevant for both faculty and students. A must have book for anyone who is interested in Logistics and Supply Chain Management.
-Bindu Nair, Acting Dean - Business School, Emirates Aviation University, Dubai

A highly appropriate blend of theory and practical application.
-Edward Sweeney, Professor of Logistics and Systems, Aston University, UK

This 4th edition covers all the main topics in global logistics and SCM and how to successfully operate a supply chain especially in the context of digitisation and current challenges such as increased supply chain complexity.
-Trinh Thi Thu Huong, Vice-Dean, Foreign Trade University, Vietnam

This book admirably addresses logistics and supply chain issues and challenges from both academic and practical points of view. The embedded case studies also allow the reader to envision sensible ways of solving often complex decision-making problems in various types of supply chains.
-Pisit Jarumaneeroj, Asst. Professor, Chulalongkorn University, Thailand

Up to date case studies and examples enable students to relate to the concepts, hence driving better understanding of the various topics. The information and knowledge presented are comprehensive and to the point; phraseology and terminologies are extremely up to date and reader friendly. In my experience, this book is suited for use in both academic and business settings.
-Reza Pouraghabagher, Emeritus Professor, Cal Poly University, United States