RFID Strategic Implementation and ROI: A Practical Roadmap to Success

By Charles Poirier and Duncan McCollum

J. Ross Publishing, 2006

$44.95; 198 pages

ISBN: 1-932159-47-9

To order: Visit www.jrosspub.com

Looking at the title, the first thought that might logically enter a reader's mind is, "Do we really need another book about RFID (radio-frequency identification)?" Well, we probably don't need just any book. But a book that clearly and concisely explains the technology and provides practical advice on making the business case for it is certainly worthwhile. RFID: Strategic Implementation and ROI does that.

Written by CSC consultants Charles Poirier and Duncan McCollum, this relatively short (under 200 pages) book speaks mainly in nontechnical language that the average business reader can understand. There's a clear explanation of how the technology works as well as some real-world advice on putting it into action. Particularly helpful is the chapter dedicated to successfully implementing an RFID pilot project.

It's important to note several recurring themes here that are too often neglected in books about technology in general and RFID in particular. One is the importance of making RFID adoption a part of a broader supply chain strategy. For example, if that strategy is to enhance visibility into product flow throughout the supply chain, how can the RFID technology facilitate that? (The reality is that RFID can increase supply chain visibility in many dramatic ways, as the authors point out.)

Another recurring theme is the importance of documenting the value of RFID to the business. There's a practical discussion of how to focus the discussion away from RFID being "just another piece of technology" to RFID being a resource that has a positive impact on costs, revenues, and profits. This is prime fodder for developing the business case!

The authors acknowledge that some observers doubt the potential for RFID to achieve widespread adoption beyond the Department of Defense and Wal-Mart-type mandates that have been in place for a while. Their view, however, is that "We're witnessing the forward progress of an unstoppable technology adoption." As such, we all have to be ready.

Global Sourcing & Purchasing Post 9/11: New Logistics Compliance Requirements and Best Practices

By Michael Assaf, Cynthia Bonincontro, and Stephen Johnsen

J. Ross Publishing, 2006

$54.95; 311 pages

ISBN: 1-932159-39-8

To order: Visit www.jrosspub.com

More and more companies are turning to global sourcing as a way to seize both cost and competitive advantages. Yet, at the same time, importing has become more and more complicated. Global Sourcing and Purchasing Post 9/11 hopes to demystify the process and help supply chain managers move product into the United States more efficiently.

To accomplish this, the book covers both the fundamentals of importing and the tangled web of new regulations, security compliance rulings, fees, and costs that have emerged in the wake of the Sept. 11 terrorist attacks.

All three of the authors—Michael Assaf, Cynthia Bonincontro, and Stephen Johnsen—are experienced import compliance and control professionals for Bayer Corp. As a result, they pack the pages with practical suggestions and tips. For example, readers will learn: how to provide instructions to their foreign suppliers that will ease entry into the United States, what fees and costs to pay attention to, and what to consider when selecting a transportation service provider or broker. To illustrate their points, the authors often provide effective, real-life examples—mostly from the health care and pharmaceutical industries.

Two main messages come through quite clearly in this book: Successful importing requires a great deal of pre-planning, and it requires lots of teamwork. The authors stress that comprehensively researching cost and risk factors is a key to success. They walk the reader through each step in the process, point out problems readers might face, and suggest best practices. They also dedicate a good portion of the book to defining the participants involved in importing. These included both internal colleagues in the regulatory affairs, logistics, transportation, and warehousing departments and external partners such as suppliers, transportation providers, and brokers.

Considerable attention is also given to the various government agencies that companies must deal with during the importation process. The authors do not just focus on U.S. Customs and Border Patrol, they also give a comprehensive overview of other government agencies such as the Food and Drug Administration, the Environmental Protection Agency, and the U.S. Department of Agriculture.

There is no doubt that customs and security regulations are highly specialized and dense areas of knowledge. Most of the time, Global Sourcing and Purchasing Post 9/11 does an admirable job of explaining this complex subject matter in a clear, straight-forward manner that is understandable even to the novice.

There are times, however, when the book could be organized more cohesively. Additionally, a glossary with easy-to-find definitions of terms and acronyms would have been helpful for readers—especially nonexperts. Yet in spite of these minor flaws, Global Sourcing and Purchasing Post 9/11 provides a comprehensive resource for this age of the increasingly global supply chain.

www.finlistics.com

You speak in terms of performance. Shipment has arrived. Inventory has been reduced. Cycle time has dropped. Order is full and complete. Your CFO speaks in terms of money. Revenue growth. Profitability. Capital utilization. The resource center on Finlistics's Web site can help you translate from supply chain-speak to finance-speak.

Finlistics Solutions helps supply chain practitioners link business process change to financial metrics. Its online resource center has several articles and presentations by president and co-founder Stephen Timme that can improve supply chain managers' ability to navigate the financial arena. For example, Timme's presentation from the 2004 Council of Logistics Management (now the Council of Supply Chain Management Professionals) Conference provides a seven-step process for "Building a Better Business Case." The steps include: 1) financial performance gap analysis, 2) business process mapping, 3) supply chain management solution mapping, 4) solution benefits estimates, 5) business case development, 6) implementation, and 7) measurement. The concept of financial performance gap analysis is further fleshed out in Timme's article: "Benchmarking Financial Performance Gaps: A Top-Down Approach."

To supplement this information, the site also offers several online tools. The "Industry Analyzer" provides financial benchmarks for certain select industries such as beverages, pharmaceuticals, and electrical goods distribution. For example, the analyzer lists the industry median and top-quartile values for such metrics as revenue growth, percent cost of goods sold, and days in inventory.

Meanwhile the "Application Templates" can guide companies through the process of examining how certain common supply chain changes will affect their company's finances. The four templates are for change in mode of transportation, change in order quantity, change in source, and change in total cost of holding inventory. Finally managers can search Finlistics's glossary for concise definitions of common financial terms.

All these tools will help managers communicate better with executives in the C-level offices. To make sure that companies continue to realize the strategic importance of supply chain management, this skill will remain critical.

Lean Six Sigma Logistics: Strategic Development to Operational Success

By Thomas Goldsby and Robert Martichenko

J. Ross Publishing, 2005

$49.95; 282 pages

ISBN: 1-932159-36-3

To order: Visit www.jrosspub.com

Lean and Six Sigma concepts are not just for manufacturing any more. Increasingly, companies are using these methodologies to improve their supply chain processes. In the new book Lean Six Sigma Logistics, Thomas Goldsby and Robert Martichenko address how to eliminate waste through disciplined efforts to understand and reduce variation—while at the same time increasing speed and flow in the supply chain.

Many are familiar with the tools and techniques of lean and Six Sigma such as define-measure-analyze-improve-control (DMAIC), value-stream mapping, and 5S. Goldsby and Martichenko, however, show how these tools can be used in a logistics context. In particular, they stress the importance of focusing on "total logistics cost."

Goldsby and Martichenko do a particularly good job of identifying the wastes and costs in logistics in areas such as inventory, transportation, space and facilities, time, packaging, administration, and knowledge. As they point out, much has been written about waste in manufacturing but little is mentioned about the waste in logistics processes. The problem, according to the authors, is that logistics' large scope can make it difficult to discover and eliminate those wastes.

The key to minimizing those wastes is to follow what the authors call the "Logistics Bridge Model." The Logistics Bridge consists of the "logistics flow" (or the movement of assets, information, and money), "logistics capability" (how predictable, stable, and visible the logistics process is), and "logistics discipline" (standardized processes and procedures for collaboration, systems optimization, and waste elimination). The book concludes with a case study illustrating these concepts in a real-world context.

Lean Six Sigma Logistics is cleanly written and well-structured. Readers should be aware, however, that it takes a strategic, high-level approach to the subject matter. This book is less about the nuts and bolts of implementing a lean Six Sigma program and more about providing a well-reasoned rationale for doing so.

SCMR Launches China Resource Center

www.scmr.com/china

For evidence of the importance of China to the global economy, you need look no further than the itinerary for Chinese president Hu Jintao's recent trip to the United States. His first stop was not in Washington DC to meet with the president of the United States but in Washington State to meet with the chairman of Microsoft.

For years, companies have been struggling to understand how to successfully incorporate China into their increasingly global supply chains. To help deepen that understanding, Supply Chain Management Review has brought together some of its most recent feature articles and columns on China into one online resource center. Topics include dealing with China's supply chain "talent gap," weighing the pros and cons of sourcing from China, and the implications for the United States' own transportation infrastructure.

Webcast Highlights Procurement

www.scmr.com

Another new online resource at www.scmr.com is a recent Webcast on "How Procurement Can Boost Your Bottom Line." This hour-long program provides an in-depth look at the benefits of having a world-class procurement organization.

The Webcast consists of presentations by Chris Sawchuk of The Hackett Group and Robert Rudzki, founder of Greybeard Advisors and co-author of Straight to the Bottom Line.

Sawchuk's presentation draws heavily from a series of ongoing, comprehensive surveys that The Hackett Group has conducted of procurement organizations from a wide range of industries and company types. The majority of Sawchuk's presentation looks at what differentiates a world-class procurement organization from an average procurement department.

Rudzki's presentation expands the discussion further by making clear to listeners why having a strong procurement organization is so essential. According to Rudzki, one of the best kept secrets in the business world is that advanced procurement and supply management practices can turbocharge a company's financial performance, particularly in terms of return on invested capital.

Improving the Extended Value Stream: Lean for the Entire Supply Chain

Darren Dolcemascolo

Productivity Press, 2006

$45; 209 pages

ISBN: 1-56327-333-0

To order: visit www.productivitypress.com

In the very first paragraph, author and lean manufacturing consultant Darren Dolcemascolo sums up why extending lean management principles beyond your own company's boundaries is so important. In short, the majority of a product's cost is due not to what is occurring within your own walls but what is happening at your suppliers' facilities. Improving your suppliers' processes, therefore, can have a profound impact on profitability, lead times, inventory levels, and quality.

Improving the Extended Value Stream: Lean for the Entire Supply Chain provides readers with a step-by-step plan for bringing the concepts of lean to their suppliers. These steps include three "planning" steps and five "implementation" steps. The planning processes include 1) mapping the extended value stream, 2) defining core competencies, and 3) developing an implementation plan.

The majority of the book focuses on the five implementation steps that occur as managers reach outside their own organization. These are 1) identify new suppliers and contract with new and existing suppliers, 2) work with suppliers and customers to map their door-to-door value streams, 3) work with suppliers and customers to implement their future-state plans using process kaizen, 4) develop a supplier association to sustain, improve, and expand lean, and 5) implement continuous improvement strategy. Within this eight-step plan, Dolcemascolo covers several key techniques such as extended value-stream mapping, process kaizen, outsourcing strategy, supplier evaluation, and supplier integration activities.

Charts, checklists, and an illustrative case study make Improving the Extended Value Stream a practical workbook. It provides detailed descriptions of how to conduct every step. For example, Dolcemascolo does not just suggest companies map out their current as-is processes. Instead he also explains how you would actually draw one of those maps, what information and materials you would need and sketches out examples of what that map might look like. He speaks to concerns that value-stream mapping often has little basis in reality by providing suggestions for the content and format of an implementation plan. Finally, each chapter ends with a series of questions that will help the reader think about how the concepts discussed can be applied to their own business.

The concept of continuous improvement plays a large role in the lean management mentality. Fittingly then, Improving the Extended Value Stream concludes by looking ahead to several techniques for further improvement. For example, companies can work toward involving suppliers in lean product development and introduction efforts. Other options include establishing supplier parks, co-locating supplier processes, and co-locating customer processes.

As companies increase their outsourcing efforts, extending best practices such as lean to suppliers will only grow in importance. Books such as Improving the Extended Value Stream will help managers cope with this new reality. For those companies where a significant percentage of the manufacturing is outsourced, the steps in Dolcemascolo's book will help them decide what should and should not be outsourced and how to accomplish it effectively.