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Velocity Management in Logistics and Distribution Resourcemanagseries 3/25/05 2:13 PM Page 1 AU2859 half title page 6/6/05 3:29 PM Page 1 Velocity Management in Logistics and Distribution ResourceManagseries 3/25/05 2:13 PM Page 1 The St. Lucie Press Series on Resource Management Titles in the Series Applying Manufacturing Execution Systems Inventory Classification Innovation: by Michael McClellan Paving the Way for Electronic Commerce and Vendor Managed Inventory Back to Basics: by Russell G. Broeckelmann Your Guide to Manufacturing Excellence by Steven A. Melnyk and Lean Manufacturing: Tools, Techniques, R.T. “Chris” Christensen and How to Use Them by William M. Feld Basics of Supply Chain Management by Lawrence D. Fredendall and Ed Hill Lean Performance ERP Project Management: Implementing the Virtual Collaborative Manufacturing: Supply Chain Using Real-Time Information to Support by Brian J. Carroll the Supply Chain by Michael McClellan Macrologistics Management: A Catalyst for Organizational Change Enterprise Resources Planning and Beyond: by Martin Stein and Frank Voehl Integrating Your Entire Organization by Gary A. Langenwalter Restructuring the Manufacturing Process: Applying the Matrix Method ERP: Tools, Techniques, and Applications by Gideon Halevi for Integrating the Supply Chain by Carol A. Ptak with Eli Schragenheim Supply Chain Management: The Basics and Beyond Handbook of Supply Chain Management by William C. Copacino by Jim Ayers The Supply Chain Manager’s Integral Logistics Management: Problem-Solver: Maximizing the Value of Planning and Control of Comprehensive Collaboration and Technology Supply Chains, Second Edition by Charles C. Poirier by Paul Schönsleben Supply Chain Networks and Business Integrated Learning for ERP Success: Process Orientation: Advanced Strategies A Learning Requirements and Best Practices Planning Approach by Kevin P. McCormack and William C. Johnson by Karl M. Kapp, with William F. Latham and Hester N. Ford-Latham Introduction to e-Supply Chain Management: Engaging Technology to Build Market-Winning Business Partnerships by David C. Ross AU2859 title page 6/6/05 3:25 PM Page 1 Velocity Management in Logistics and Distribution Lessons from the Military to Secure the Speed of Business Joseph L. Walden Boca Raton London New York Singapore A CRC title, part of the Taylor & Francis imprint, a member of the Taylor & Francis Group, the academic division of T&F Informa plc. Published in 2006 by CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2006 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10987654321 International Standard Book Number-10: 0-8493-2859-4 (Hardcover) International Standard Book Number-13: 978-0-8493-2859-6 (Hardcover) Library of Congress Card Number 2005040582 This book contains information obtained from authentic and highly regarded sources. Reprinted material is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable efforts have been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. No part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC) 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data Walden, Joseph L. Velocity management in logistics and distribution : lessons from the military to secure the speed of business / Joseph L. Walden. p. cm. -- (St. Lucie Press series on Resource management) Includes bibliographical references and index. ISBN 0-8493-2859-4 (alk. paper) 1. Business logistics. 2. Industrial procurement--Management. 3. United States. Army--Procurement. 4. United States. Army--Supplies and stores. 5. United States. Army--Management. I. Title. II. Series. HD38.5.W343 2005 658.7--dc22 2005040582 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com Taylor & Francis Group and the CRC Press Web site at is the Academic Division of T&F Informa plc. http://www.crcpress.com Dedication This book is dedicated to my wife, Kay, and my two daughters, Amber and Bobbi, for supporting me through the years and for their love. Everything I do is for you. v Table of Contents Acknowledgments ............................................................................ xiii Introduction ........................................................................................xv About the Author........................................................................... xxvii SECTION I: ASSESSING AND MANAGING RISK AND SECURITY 1 Risk Assessment ...........................................................................3 Summary .......................................................................................................... 14 Questions for Thought ................................................................................... 15 Book List for Introduction and Chapter One............................................... 18 Notes ................................................................................................................ 18 2 Risk Management and Supply Chain Security ........................19 The Use of Risk Management........................................................................ 22 Conclusions ..................................................................................................... 34 Discussion Questions...................................................................................... 36 Book List for Chapter Two ............................................................................ 37 Notes ................................................................................................................ 37 3 Securing Your Supply Chain .....................................................39 Supply Chain Security .................................................................................... 49 Vulnerability Assessment ................................................................................ 51 Information Security................................................................................... 52 Cyber-Terrorism.......................................................................................... 53 Information Collaboration ......................................................................... 56 The Latest Threat to Your Information Systems and Proprietary Data...... 57 The Impact of RFID on Security and Visibility ....................................... 59 Bioterrorism Security.................................................................................. 61 Port Security ............................................................................................... 62 Security against Theft................................................................................. 63 Operational Security................................................................................... 64 Lessons in Security..................................................................................... 68 Conclusions ..................................................................................................... 69 Discussion Questions...................................................................................... 69 vii viii Ⅲ Table of Contents Book List for Chapter Three.......................................................................... 70 Notes ................................................................................................................ 70 SECTION II: SUPPLY CHAIN VELOCITY AND HOW TO ACHIEVE IT 4 Corporate Awareness and Velocity...........................................75 The Road Ahead—How Do We Improve? ................................................... 84 Applications of Seeing Yourself and Knowing Yourself ............................. 87 Time and Knowing Yourself.......................................................................... 90 Perspective and Seeing Yourself.................................................................... 91 Benchmarking ................................................................................................. 92 Summary and Conclusions............................................................................. 93 Questions for Thought ................................................................................... 94 Book List for Chapter Four............................................................................ 94 Notes ................................................................................................................ 95 5 Personal and
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