LEAN AND AGILEVALUE CHAINMANAGEMENTA Guide to theNext Level of Improvement

Ehap H. Sabri, Ph.D.Salim N. Shaikh

J.ROSSP U B L I S H I N G

Contents

Preface xviAcknowledgment xxiAbout the Authors

Part I Executive Summary 1

Chapter 1: The Big Picture of the Lean and Agile Value Chain 3

Wake-Up Call to Market Reality 3Definitions and LAVC Principles 7Value Chain Processes' Challenges and Solutions '. 21

Chapter 2: Lean and Agile Value Chain Building Blocksand Maturity Levels 39

Building Blocks and Evolution of the Lean and Agile Value Chain 39LAVC Maturity Levels 56Closing Remarks and Future Trends 61

Part II Best-Practice Processes 1. 69

Chapter 3: Supplier Relationship ManagementSuperprocess 71

Introduction 71North-South and East-West Collaboration 73SRM Challenges 74Strategic Sourcing 78Product Design 93Procurement 103SRM Superprocess Workflow Summary 124

Chapter 4: Supply Chain Management Superprocess 131

Introduction 131SCM Evolution 132

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vi Lean and Agile Value Chain Management

GoalofSCM 134SCM Challenges 135Enablers 137Strategic Management 139Sales and Operations Planning 153Demand Fulfillment 190SCM Superprocess Workflow Summary 216S CM Superprocess Workflow for the Fashion Retail Industry 219

Chapter 5: Customer Relationship ManagementSuperprocess 231

Introduction 231CRM Challenges 231Evolution of CRM ". 234Future of CRM 236Who Is the Customer? 237Managing Customer Relationships 239Customer Lifetime Value 241Selling Management 256Customer Service Management 263CRM Superprocess Workflow Summary 271

Chapter 6: Lean and Agile Value Chain Technology Applicationsand Trends 277

Introduction 277New Generation of LAVC Technology Infrastructure 278SRM-Enabled Software Applications ,/. 282SCM-Enabled Software Applications 292CRM-Enabled Software Applications 296

Part III Project and People Management with Lean and AgileValue Chain Transformation 301

Chapter 7: Transformation Program Cycle 303

Introduction 303Aligning the Transformation Program with Corporate Goals 304Developing Vision, Objectives, and Strategies of the Program 308Process Analysis 309Selecting a Software Provider 310Calculating ROI 312

Contents vii

Developing Program and Project Plans 314Project Implementation 315Updating the Performance Management System 319

Chapter 8: Change Management Supported Processes 321

Introduction 321Developing a Winning Transformation Team 322Education and Cultural Support 328Communication Management 336Tracking and Controlling 348Effective Performance Management Systems 350Closing Remarks 362

Chapter 9: Lean and Agile Value Chain Transformation CaseStudy: Office Systems 365

Introduction 365Office Systems, Inc 365Aligning the Transformation Program with Corporate Goals 366Developing Vision, Objectives, and Strategies of the Program 370Process Analysis 371Selecting a Software Application Provider 379Return on Investment 380Developing Program and Project Plans 380Project Implementation 381Case Study Questions 383

Chapter 10: Lean and Agile Value Chain Success Stories \and Lessons Learned 385

Supplier Relationship Management-Driven Success Stories 385Supply Chain Management-Driven Success Stories 388Customer Relationship Management-Driven Success Stories 417Success Story from the Service Industry '. 428

Index 433