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Full download Logistics and Supply Chain Management, 6th 6th Edition Martin Christopher file pdf all chapter on 2024
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Praise for Logistics and Supply
Chain Management
‘Major world events in recent years – ranging from the Covid-19 pandemic, blockage of
the Suez Canal and war in Ukraine – have highlighted the critical role played by logistics
and supply chain management in the global economy and have brought these subjects
to the forefront of public interest. This important book by one of the leading thinkers in
the field is essential reading, not just for practitioners and students of these subjects,
but for everyone with a keen interest in how logistics activities and supply chain designs
shape our everyday lives. The clear text and logical flow of chapters, augmented by a
range of interesting and diverse case examples, take the reader on a journey of discov-
ery into how today’s supply chains should be structured and managed.’
Professor John Mangan, Chair in Marine Transport and Logistics,
School of Engineering, Newcastle University, UK
‘It should not have needed a global pandemic and a war in Europe to raise the
importance of building and managing resilient supply chains. The techniques to achieve
this are not new; achieving value has always been the goal, and the latest edition of
this excellent book lays these out in a clear and compelling manner. It is updated to
embrace digitisation, and to address the sustainability imperative, and is set in today’s
context of volatility and disruption. Procurement and supply chain professionals can
learn from this book as part of their continuing professional development.’
Malcolm Harrison, CEO, Chartered Institute of Procurement and Supply
‘Since the first edition was published thirty years ago, this book has become one
of the leading texts on logistics and supply chain management, providing guidance
both to students and practitioners. The author provides valuable insights into how
performance in these vital business processes can be improved and sustained.’
Yossi Sheffi, Eliza Gray II Professor of Engineering Systems, MIT, USA
‘Martin Christopher’s latest book captures the entire evolution of logistics and
supply chain thinking and associated concepts through to current times, including
digitisation, new business models, sustainability, and perspectives on what we can
expect to see in the years ahead. It is comprehensive and beautifully illustrated with
examples and short case studies. A must-read for students and managers alike.’
Dr John Gattorna, global supply chain ‘thought leader’ and author
That’s why we’re working with leading authors to bring you the
latest thinking and best practices, so you can get better at the
things that are important to you. You can learn on the page or
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Previously published 1992, 1998, 2005, 2011 (print), 2016 (print and electronic)
Sixth edition published 2023 (print and electronic)
The right of Martin Christopher to be identified as author of this work has been asserted by him in accordance
with the Copyright, Designs and Patents Act 1988.
The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a retrieval sys-
tem, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise,
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Lane, London EC4A 1EN.
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Pearson Education is not responsible for the content of third-party internet sites.
10 9 8 7 6 5 4 3 2 1
26 25 24 23 22
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
To Margaret
vii
Contents
3 Going to market 51
Distribution channels are value delivery systems 52
One size doesn’t fit all 55
Innovation in the distribution channel 56
The omni-channel revolution 58
The personalised supply chain 62
viii
5 Matching supply and demand 89
The lead-time gap 90
Improving visibility of demand 91
The decoupling point 93
The supply chain fulcrum 94
Forecast for capacity, execute against demand 96
Demand management and planning 96
Collaborative planning, forecasting and replenishment 100
CONTENTS ix
Financing global supply chains 205
Organising for global logistics 205
Thinking global, acting local 209
Globalisation: the next phase 211
x C ONTENTS
17 Creating a sustainable supply chain 291
The triple bottom line 291
Greenhouse gases and the supply chain 293
Reducing the transport-intensity of supply chains 295
Beyond the carbon footprint 296
Reduce, re-use, re-cycle 299
The impact of congestion 301
CONTENTS xi
Pearson’s Commitment to
Diversity, Equity and Inclusion
Pearson is dedicated to creating bias-free content that reflects the diversity,
depth and breadth of all learners’ lived experiences. We embrace the many
dimensions of diversity including, but not limited to, race, ethnicity, gender,
sex, sexual orientation, socioeconomic status, ability, age and religious or
political beliefs.
Education is a powerful force for equity and change in our world. It has the
potential to deliver opportunities that improve lives and enable economic
mobility. As we work with authors to create content for every product and
service, we acknowledge our responsibility to demonstrate inclusivity and
incorporate diverse scholarship so that everyone can achieve their potential
through learning. As the world’s leading learning company, we have a duty to
help drive change and live up to our purpose to help more people create a
better life for themselves and to create a better world.
xiii
Preface
In the thirty years since the first edition of this book was published the business envi-
ronment has changed dramatically. Whereas once there was a degree of stability,
now there is turbulence. Instead of being able to plan ahead, organisations today
must be able to respond to events as they happen. Such a seismic change to the
backdrop to economic activity requires new ways of working for every organisation,
particularly in the way in which they manage the supply/demand network of which
they are a part.
The intention behind this book, since its first edition, has always been to explore
the ways in which organisations can better serve their customers and in so doing,
improve the value they create. As markets become more competitive and the level
of uncertainty increases, the challenge is how to develop a supply chain strategy that
is capable of adapting to constantly changing conditions. Pandemics, geo-political
events, trade wars and supply chain disruptions have characterised the recent past –
demanding a much greater degree of flexibility and agility on the part of companies
as they seek to respond to these potential threats.
A further significant change that organisations must contend with today is the
growing complexity of their supply chains. This has partly arisen as a consequence
of outsourcing activities that were previously performed in-house, resulting in a
much higher level of interdependencies across the supply/demand ecosystem. This
increase in complexity makes the need for effective supply chain management even
more critical than before. Hopefully the ideas presented in this book will assist both
students and practitioners in their search for better ways to understand and manage
supply chains in this age of uncertainty.
Martin Christopher,
Emeritus Professor of Marketing & Logistics,
School of Management,
Cranfield University, UK.
xiv
Publisher’s acknowledgements
Text Credits:
Prelims Dr Yossi Sheffi: Quoted by Dr. Yossi Sheffi, Elisha Gray II Professor of
Engineering and Director, MIT Center for Transportation & Logistics; Prelims Alan
Braithwaite: Quoted by Alan Braithwaite, Chairman, LCP Consulting and Visiting
Professor, Cranfield Centre for Logistics and Supply Chain Management; Prelims
Bo-Inge Stensson: Quoted by Bo-Inge Stensson, Senior Vice President, Global
Purchasing, SKF Group; Prelims Matthias Holweg: Quoted by Professor Matthias
Holweg, Saïd Business School, University of Oxford; Prelims Bjorn Van Jensen:
Quoted by Bjorn Van Jensen, Vice President, Global Logistics, Electrolux; Prelims Dr
John Gattorna: Quoted by Dr John Gattorna, supply chain ‘thought leader’ and
author of Dynamic Supply Chains; Prelims Professor Hau Lee: Quoted by Professor
Hau Lee, Stanford Graduate School of Business, USA; 1 Erwin Rommel: Quoted by
Erwin Rommel; 2 Harvard University Press: Shaw, A.W., Some Problems in Market
Distribution, Harvard University Press, 1915; 3 CRC Press: Oliver R.K. and Webber,
M.D., Supply-Chain Management: Logistics catches up with strategy, Outlook, 1982;
3 Cranfield University: Aitken, J., Supply Chain Integration within the Context of a
Supplier Association, Cranfield University, Ph.D. Thesis, 1998.; 4 Penguin Random
House LLC: Ohmae, K., The Mind of the Strategist, Penguin Books, 1983; 10 The
Free Press: Porter, M.E., Competitive Advantage, The Free Press, 1985; 14 Emerald
Group Publishing: Adapted from (1989) Stevens, G. C., ‘Integrating the supply
chain’, International Journal of Physical Distribution and Materials Management, 19(8),
Emerald Group Publishing Limited; 19 D. Appleton & Company: Borsodi, R., The
Distribution Age, D. Appleton & Co, 1929; 20 The MIT Press: Holweg, M. and Pil,
F.K., The Second Century, MIT Press, 2004; 28 John Wiley and Sons: Johansson,
H.J. et al., Business Process Re-engineering, John Wiley, 1993; 32 Theodore Levitt:
Quoted by Theodore Levitt; 35 John Wiley & Sons, Inc: Baker, S., New Consumer
Marketing, John Wiley & Sons, 2003; 52 McKinsey & Co., Inc: Lanning, M. J. and
Michaels, E. G., ‘A Business is a Value Delivery System’, McKinsey & Co., Inc., June
1998; 54 Bain & Company, Inc: Kovac, M., Ledingham, D., & Weinger, L., ‘Creating
an Adaptive Go-to-Market System’, Bain & Co. www.bain.com/publications/articles/
creating-an-adaptive-go-to-market-system.aspx. Accessed 5 April 2015;
57 Telegraph Media Group Limited: The Sunday Telegraph on 5 April 2015 read
‘7,500 jobs at risk as retailers shut stores’.; 59 Deutsche Bank AG: Deutsche Bank
Research, FX Blog, “Labor supply is going up,up,up 5th may 2021”; 64 Peter
Drucker: Drucker, P., ‘The Economy’s Dark Continent’, Fortune, Vol. 72, April 1962;
74 SAGE Publications: Srivastava, R. et al., ‘Market-Based Assets and Shareholder
Value: A Framework for Analysis’, Journal of Marketing, Vol. 62, No. 1, January 1998,
pp. 2–18; 75 John Wiley & Sons, Inc: Shillinglow, G., ‘The Concept of Attributable
Cost’, Journal of Accounting Research, Vol. 1, No. 1, Spring 1963.; 80 A T Kearnley:
Hill, G.V., Logistics – The Battleground of the 1990s, A.T. Kearney., Inc; 81 Emerald
xv
Publishing: Hill, G.V. and Harland, D.V., ‘The customer profit centre’, Focus 2(2),
Institute of Logistics and Distribution Management, 1983; 134 McGraw-Hill: Stock,
J.R. and Lambert, D.M., Strategic Logistics Management, 2nd edition, Irwin, 1987;
143 Emerald Group Publishing: Adapted from (1991) Scott, C. and Westbrook,
R., ‘New strategic tools for supply chain management’, International Journal of
Physical Distribution of Logistics Management, 21(1), Emerald Group Publishing.;
150 mThink: Cookson, C. ‘Linking Supply Chains to Support Collaborative Manu-
facturing’, Ascet, Vol. 3, 2001, www.ascet.com; 151 AT Kearney: Virtual Supply
Chain, A.T. Kearney; 153 AT Kearney: Internet Value Chain Economics, A.T. Kearney;
160 MCB UP Ltd: Lei, D. and Goldhars, J.D., ‘Computer-Integrated Manufacturing:
Redefining the Manufacturing Firm into a Global Service Business’, International
Journal of Operations & Production Management, Vol. 11, No. 10, 1991.; 162 The
MIT Press: Forrester, J., Industrial Dynamics, MIT Press, 1961; 165 Grocery
Manufacturers Association: Direct Store Delivery, Grocery Manufacturers
Association of America; 170 Keith Cochrane: Quoted by Keith Cochrane; 170 John
Manzini: Quoted by John Manzini; 184 Institute for Operations Research and
the Management Sciences: Ward, J., et al., ‘HP Transforms Product Portfolio
Management with Operations Research’, Interfaces, Vol. 40, No. 1, pp. 17–32, 2010;
186 Harvard Business Review: Gottfredson, M. and Aspinal, K., ‘Innovation vs
Complexity: What is too Much of a Good Thing?’, Harvard Business Review,
November 2005, pp. 62–71; 192 The Seattle Times: Dreamliner makes history with
plastic, outsourcing, design — and delays, The Seattle Times, December 12, 2009;
192 Dow Jones & Company, Inc: Jet Blues: Boeing Scrambles to Repair Problems
With New Plane’, The Wall Street Journal, December 7, 2007.; 202 Montgomery
Research, Inc: Styles, Peter, ‘Determining Supply Chain Event Management’, in
Achieving Supply Chain Excellence Through Technology, Montgomery Research, San
Francisco, 2002.; 204 Cranfield University: Cranfield School of Management, Cre-
ating Resilient Supply Chains, Report on behalf of the Department for Transport,
Cranfield School of Management, Cranfield University, 2003; 205 Pricewaterhouse-
Coopers (PWC): Courtesy of PwC (Vietnam) Limited, 2018. Retrieved from https://
www.pwc.com/vn/en/services/deals/working-capital-management.html; 214
Accenture: The Digital Supply Network: A New Paradigm for Supply Chain Manage-
ment. Accenture 2014; 216 Ernst & Young: ‘Digital Supply Chain! It’s All About That
Data’, Ernst & Young (EY), 2016; 223 Boston Consulting Group: ‘Conquering Com-
plexity in Supply Chains with Digital Twins’, Rainer Schuster (Partner and Associate
Director), Gaurav Nath (Managing Director & Partner), Llorenç Mitjavila (Managing
Director & Senior Partner), Boston Consulting Group, 2020; 229 Harvard Business
School Publishing: Chase, R.B. and Garvin, D.A. ‘The Service Factory’, Harvard
Business Review, July/August 1989.; 230 University of Cambridge: Adapted from
Neely, Institute for Manufacturing, University of Cambridge; 232 Emerald Group
Publishing: Aronsson, H., Abrahamsson, M. and Spens, K., ‘Developing lean and
agile health care supply chains’, Supply Chain Management: An International Journal,
Vol. 16, No. 3, 176–183, Emerald Group Publishing Limited.; 233 Emerald Group
Publishing Limited: Towill, D.R. & Christopher, M. (2006) ‘An evolutionary approach
to the architecture of effective healthcare delivery systems’, Journal of Health Organ-
ization and Management, Vol. 19, No. 2, pp. 130–147.; 235 Taylor & Francis
● Competitive advantage
Logistics and supply chain management are not new ideas. From the building of the
pyramids to the relief of hunger in Africa there has been little change to the principles
underpinning the effective flow of materials and information to meet the requirements
of customers.
Throughout the history of mankind, wars have been won and lost through logis-
tics’ strengths and capabilities – or the lack of them. It has been argued that the
defeat of the British in the American War of Independence can largely be attributed to
logistics failures. The British Army in America depended almost entirely upon Britain
for supplies; at the height of the war there were 12,000 troops overseas and for the
most part they had not only to be equipped, but fed from Britain. For the first six years
of the war the administration of these vital supplies was totally inadequate, affecting
the course of operations and the morale of the troops. An organisation capable of
supplying the army was not developed until 1781 and by then it was too late.1
In the Second World War logistics also played a major role. The Allied Forces’
invasion of Europe was a highly skilled exercise in logistics, as was the defeat of
Rommel in the desert. Rommel himself once said that ‘. . . before the fighting proper,
the battle is won or lost by quartermasters’.
1
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1799; and that it flowers the end of June; in which month our drawing was
made, this year, at the Hammersmith Nursery.
PLATE CCLI.
LACHENALIA PURPUREO-CÆRULEO.
SPECIFIC CHARACTER.
HEBENSTREITIA AUREA.
Golden-flowered Hebenstreitia.
GENERIC CHARACTER.
SPECIFIC CHARACTER.
1. A flower.
2. The Empalement magnified.
3. A Blossom cut open with the chives remaining attached,
magnified.
4. The Pointal natural size.
5. The same, magnified.
The Hebenstreitias may all be reckoned as rather biennial plants than
perennial shrubs; they must be increased every year to keep up a succession,
which is a matter of no difficulty; as, if cuttings of any of the species are put
into separate small pots, and kept from the air by a hand-glass, for about a
month, they will become flowering plants by September, if the cuttings are
made in May. Our present plant was introduced in 1796 by Messrs. Lee and
Kennedy, Hammersmith, at whose nursery the drawing was made this year
in the month of March. They mostly flower in spring, and autumn; the
flowers are very fragrant at night. They are natives of the Cape of Good
Hope.
PLATE CCLIII.
TALINUM PATENS.
Panicled Purslane.
GENERIC CHARACTER.
SPECIFIC CHARACTER.
Talinum foliis lanceolato ovatis, sessilibus, planis; panicula ramosa,
terminali; floribus rubris.
Purslane with leaves between lance and egg-shaped, without foot-stalks,
flat; panicle branching and terminal; flowers red.
GERANIUM PROCUMBENS.
Procumbent Geranium.
SPECIFIC CHARACTER.
1. The Empalement.
2. The Chives spread open, and magnified.
3. The Pointal, and Seed buds, magnified.
This pretty Geranium is rather a delicate plant, and must be kept very dry in
the winter; as, from the situation of its branches, which are pressed to the
earth, and rather fleshy, they will be very apt to rot, if loo often watered, or
placed in a damp part of the green house. It was introduced in the year 1781,
by G. Hibbert, Esq. in whose collection, only, we have as yet seen it. Mr.
Allen informs us, that it is to be propagated as well by cuttings, as from the
seeds, which it does not produce plentifully. It has the appearance, if we may
judge by analogy, to be but a biennial, and not an abiding plant. It flowers in
April and May, and should be planted in light rich earth.
Here we have a botanical treat for the learned, who have adopted the new
arrangement of this very vagarious tribe; for in this one plant are united
some of the most essential characters of the three L’Heritierian Genera,
which, justly, formed but divisions of Linnæus’s original genus; agreeing
with Geranium and Erodium in the nectariferous cup; with Pelargonium in
the blossom and seed; but differing from all three, in having but four fertile
chives, with six abortive ones. A fact ascertained by the examination of
above fifty flowers, taken from four different plants.
PLATE CCLV.
MORÆA NORTHIANA.
Northian Moræa.
SPECIFIC CHARACTER.
SPECIFIC CHARACTER.
1. The Empalement.
2. A Flower cut and spread open.
3. The Seed-bud, Chives, and Summits, one summit magnified.
This variety of Ixia blossoms about June; and, like the rest of this species,
continues in flower near a month. It is one of the hardiest, and certainest
blowers, amongst the whole genus, and propagates freely; no particular
treatment is necessary for it, but what has been often repeated for the
management of these plants.
PLATE CCLVII.
FALKIA REPENS.
Creeping Falkia.
GENERIC CHARACTER.