Description
In recent years, management gurus have urged businesses to adopt such strategies as just-in-time, lean manufacturing, offshoring, and frequent deliveries to retail outlets. But today, these much-touted strategies may be risky. Global financial turmoil, rising labor costs in developing countries, and huge volatility in the price of oil and other commodities can disrupt a company's entire supply chain and threaten its ability to compete. In Operations Rules, David Simchi-Levi identifies the crucial element in a company's success: the link between the value it provides its customers and its operations strategies. And he offers a set of scientifically and empirically based rules that management can follow to achieve a quantum leap in operations performance.
Flexibility, says Simchi-Levi, is the single most important capability that allows firms to innovate in their operations and supply chain strategies. A small investment in flexibility can achieve almost all the benefits of full flexibility. And successful companies do not all pursue the same strategies. Amazon and Wal-Mart, for example, are direct competitors but each focuses on a different market channel and provides a unique customer value proposition--Amazon, large selection and reliable fulfillment; Wal-Mart, low prices--that directly aligns with its operations strategy. Simchi-Levi's rules--regarding such issues as channels, price, product characteristics, value-added service, procurement strategy, and information technolog---transform operations and supply chain management from an undertaking based on gut feeling and anecdotes to a science.
Author: David Simchi-Levi
Publisher: MIT Press
Published: 09/13/2013
Pages: 252
Binding Type: Paperback
Weight: 0.75lbs
Size: 8.60h x 5.70w x 0.60d
ISBN13: 9780262525152
ISBN10: 0262525151
BISAC Categories:
- Business & Economics | Production & Operations Management
- Business & Economics | Operations Research
- Business & Economics | Management | General
About the Author
David Simchi-Levi is Professor of Engineering Systems at MIT and is considered one of the premier thought leaders in supply chain management. He coauthored the award-winning Designing and Managing the Supply Chain. He is the founder of LogicTools (now part of IBM), which provides software solutions and professional services for supply chain planning.