Global Macrotrends and Their Impact on Supply Chain Management

CHAD W. AUTRY is Associate Professor of Supply Chain Management and Director of Supply Chain Forum—North America at the University of Tennessee’s College of Business Administration. He contributes actively to the Council of Supply Chain Management Professionals and the Warehouse Education and Research Council, and has led local and national events for the Production and Operations Management Society and Institute for Supply Management. He holds a Ph.D. in Business Administration/Supply Chain Management from the University of Oklahoma. THOMAS J. GOLDSBY, Professor of Logistics at The Ohio State University, is Associate Director of its Center for Operational Excellence and Research Associate at its Global Supply Chain Forum. He has supervised more than 100 Lean/Six Sigma supply chain projects with industry partners and coauthored the book Lean Six Sigma Logistics. He has received recognition for excellence in teaching and research at Iowa State University, The Ohio State University, and the University of Kentucky. He holds a Ph.D. in Marketing and Logistics from Michigan State University. JOHN E. BELL is an Assistant Professor of Supply Chain Management at the University of Tennessee’s College of Business Administration and a board member of the Western Decision Sciences Institute. He earned his Ph.D. in Management at Auburn University, taught at the Air Force Institute of Technology and Georgia College & State University, and spent more than 20 years as a U.S. Air Force logistics and maintenance officer. He has published more than 20 academic articles on vehicle routing, facility location selection, supply chain strategy, and related topics.

Preface   xiv

Part I Global Macrotrends Impacting the Supply Chain Environment  1

Chapter 1 Supply Chain Management in the 21st Century   3

A Note on Futurism 7

The Underpinnings of Supply Chain Management  9

What You Will Learn from This Book  15

Managing the Supply Chain to Mitigate Macrotrend Risks 18

Chapter 2 Global Population Growth and Migration   21

Impacts of Population Change on Demand and Supply  25

Population Growth Perspectives  27

Organic Population Growth Issues for Supply Chain Managers  33

Supply Chain Problems Created by Migration-Based Growth  36

The Future Supply Chain Manager’s Population-Oriented Agenda  41

Chapter 3 Global Connectivity and Socioeconomic Leveling   55

Is Globalization Real?  57

Economic Leveling and Connectivity Issues for Future Supply Chain Managers  68

Chapter 4 The Changing Physical Environment   83

The Environment and You, You and the Environment  86

Environmental Pressures on Supply Chains   93

Environmental Challenges for Future Supply Chain Managers  99

Chapter 5 Geopolitical and Social Systems Disruptions   111

Commodity Hoarding and Export Restriction: The China Syndrome   117

Government Risks and Considerations 125

Tangible and Virtual Intentional Disruption  129

Geopolitical Challenges for Future Supply

Chain Managers  132

Part II Macrotrend Implications for Supply Chain Functionality  147

Chapter 6 Implications for Supply Chain Planning:

Demand and Supply Uncertainty  149

How Supply Chain Plans Improve Performance  151

The Supply Chain Planning Function 153

Macrotrend Demand/Supply Impacts: Supply Chain Planning Considerations  157

Chapter 7 Implications for Sourcing/Procurement: Natural Resource Scarcity  165

Understanding Resource Scarcity Today and Tomorrow  166

Natural Resource Attributes and Their Future Implications  170

The Seven Forces Driving Resource Scarcity  174

Scarcity Strategies for the Future Procurement/Supply Manager  180

Sourcing and Procurement Responses to Resource Scarcity Through 2030  182

Chapter 8 Implications for Production: Disrupted Process Flows  185

Manufacturing and the Larger Economy  186

Manufacturing-Driven Supply Chain Strategies  191

Manufacturing Strategies for the Future Production Manager  201

Chapter 9 Implications for Transportation/Logistics: Congestion and Infrastructure Decay 207

Friction of Distance  209

Public-Private Partnerships and Other Solutions  213

Responding to Congestion, Distance Friction, and an Overwhelmed Infrastructure  215

Diffusing Congestion with Advanced Technologies  221

Part III Macrotrend Risk-Mitigation Strategies  225

Chapter 10 Mitigating Supply-Driven Imbalance   227

Employment Approaches  230

Conservation Approaches  235

Resource Scarcity Mitigation Strategies for the Supply Chain  240

Mitigating Supply-Driven Imbalances  244

Chapter 11 Mitigating Demand-Driven Imbalance  247

Demand Shaping in the Transforming World: Macro and Micro Issues  250

The Case for Demand/Supply Integration  254

Implementing DSI to Mitigate Demand-Side Imbalances  258

Applying the Demand-Imbalance Mitigation Strategies  272

Index  275