Martin Christopher Emeritus Professor of Marketing & Logistics, Cranfield School of Management

Preface

This book traces its origins to the University of Hull Logistics Institute in the UK where three of the four authors (Mangan, Lalwani and Butcher) worked together between 2005 and 2008. It was during this time that we recognised the need for this textbook which we are glad to say has been very well received by students, practitioners and lecturers, and which we are now happy to present as an updated and enhanced second edition. For this second edition we are delighted that Roya Javadpour from California Polytechnic State University has joined us as a co-author. Since producing our first edition Tim Butcher has moved to Royal Melbourne Institute of Technology (RM1T) in Australia, John Mangan has moved to Newcastle University in the UK, and Chandra Lalwani now shares his time between a number of universities around the world including both Hull and Newcastle in the UK. In this second edition we have endeavoured to again produce a comprehen­sive book with the following key characteristics:

Be concise - logistics is a very pragmatic subject and it has been our intention throughout to 'stick to the point'. We hope that you the reader will appreciate this. Notwithstanding such intended brevity, we have endeavoured to cover both practical and strategic aspects of the subject matter. The book is neither a 'how to' cook book, nor is it a high-level strategy book with little relevance to practice. The aim of the book is to convey to both advanced students and practitioners of logistics and supply chain management the diverse operational and strategic content of the subjects of logistics and supply chain management

Truly global, up-to-date perspective - the world is changing daily and the typical 'Western' worldview no longer necessarily dominates. As we will see in the book, logistics is a key driver of globalisation and a facilitator of international trade and development. We have thus endeavoured to reflect these characteristics by adopting a truly global perspective and hope that the book will appeal to students regardless of what geography they are located in. The context of logistics is constantly shaped by emerging trends and new technologies and we have tried to ensure that the book is as up to date as possible and takes cognisance of these trends and technologies. Sadly, despite much progress, today's world still contains many divisions, tensions and inequalities. We have attempted to be aware of these while fully embracing a neutral and non-political perspective.

Pedagogical approach - we have endeavoured to use a variety of pedagogies in this book, which we hope will create a fertile learning platform for the

xoreader. Both long(er) and short(er) case studies are included and are intended to highlight key issues in a focused manner. Key points are detailed in separ_at boxes and this should also help with revision. Italics are used within the text emphasise specific issues. Various terms are in bold when first used to indicate that explanations are given in the glossary at the end of the book. We hope you find these various features useful. There are two other features of our pedagogical approach which we believe are especially important.

Firstly, the four authors named on the cover are not the only people to have co tributed to this book. We are also very fortunate to have contributions from varied experts in specific areas of logistics and supply chain management. They hav written chapters and case studies based on their specific areas of expertise and which we believe add to the richness of this book over and above what we could have achieved working on our own. This multidisciplinary approach has allowed us to draw into the book not just logisticians, but also people from backgrounds a$ diverse as, for example, military and accounting.

The second pedagogical feature we wish to highlight is the mix of qualitative and quantitative content in this book. We are of the view that many logistics books tend to occupy one of two opposite positions, either containing a large share of quantitative material, or else none at all. We believe that a certain level of quanti­tative aptitude and knowledge is an important feature of most logistics and supply chain managers' jobs (for example, in the areas of logistics costs and inventory management). Many such managers, however, do not routinely engage in sophis­ticated mathematical analysis; this is usually the domain of operations researchers, engineers and management accountants. We thus aim to convey the necessary quantitative features of logistics and supply chain management, while at the same time not excessively burdening the reader with quantitative analysis.

These various characteristics and perspectives adopted in the book are discussed further in Chapter 1. The book is divided into three parts, again this is discussed, and the content of each part elaborated, in Chapter 1. In this second edition, we have restructured the book and updated relevant content from the first edition. For example the area of rela­tionships in the supply chain is increasingly seen as a topic of importance and we have thus revised and added to the content on this topic which was previously spread across a number of chapters in the first edition; in this second edition this topic is afforded its own chapter (Chapter 3). In addition new chapters have been added dealing with: simu­lation, security, reverse logistics, and services supply chains. New chapter supplements on containerisation, modelling and transport planning have now been included, and a number of new cases have also been introduced.

BOOK COMPANION WEBSITE

Our text is also supported by additional teaching and learning resources, which are available on the companion website at www.wileyeurope.com/college/mangan. They include PowerPoint slides, suggested answers to end-of-chapter questions and case teaching notes for lecturers. Students will also find an online glossary and multiple choice quizzes

Acknowledgements

Many people have helped us on our journey to produce the first and now the second editions of this book. First and foremost, the book would not exist but for the continu­ing support and advice received from many people at John Wiley & Sons Ltd. These include Sarah Booth, Nicole Burnett, Jennifer Edgecombe, Steve Hardman, and Anneli Mockett. We thank them for their professionalism and patience. We would also like to thank the various anonymous reviewers for their helpful comments. Thanks also to the many lecturers and students who used the first edition: we thank them for their feedback which is always beneficial. Thanks too to our universities and our many colleagues who have given us the space and encouragement to complete this time-consuming, yet rewarding, project.

Special thanks are also due to our mentor and friend Professor Martin Christopher of Cranfield University who kindly again provided the foreword.

Certain specific elements of the book were generated from funded and/or collaborative research undertakings and in this regard we would like to acknowledge with much grati­tude the support of the various sponsoring agencies and individuals. We are also very grateful to various copyright holders for allowing us to use certain material.

We sincerely thank the various chapter contributors whose expert inputs have added considerably to our own endeavours: Dr Chuda Basnet and Dr Paul Childerhouse (Waikato University), Dr Peter Baker (Cranfield University), Mr Noel McGlynn (Micro­soft), Mr Martin Murphy (SCMG), Dr Helen Peck (Cranfield University), Professor Shams Rahman (RMIT University), Dr Risto Talas (University of Hull) and Professor Mike Tayles (University of Hull). We would like to also thank the various case contribu­tors for agreeing to the inclusion of their insightful cases: Dr Peter Baker, Mr Ciaran Brady (PLS Pharma Logistics), Professor Louis Brennan (Trinity College Dublin), Profes­sor Marc Day (Henley Management College), Mr Tom Ferris, Mr Simon Healy (Media- ware), Dr Graham Heaslip (National University of Ireland, Maynooth), Dr Elizabeth Jackson (Newcastle University), Professor Booi Kam and Mr Jin Hao (RMIT University), Professor Roger Moser (European Business School), Ms Anne Nagle (Nagle Business Solutions), Dr Seamus O'Reilly (University College Cork) and Professor Mike Tayles (University of Hull). .

INTRODUCTION

This chapter lays the foundations of the textbook and explains the origins and appWca- tions of logistics and supply chain management, as well as giving descriptions ol Vu'/ concepts. A framework for the textbook is developed and this illustrates where each chapter fits in the overall schema of the book, while the various perspectives adopted the authors when writing this book are also described.

The chapter comprises six core sections:

The evolution of logistics and supply chain management

What is logistics?

What is supply chain management?

Distinguishing logistics and supply chain management

Applications to manufacturing and services

Book framework

Not only are logistics and SCM key aspects of today's business world, but they are also of importance in the not-for-profit and public sectors. In addition, while the origins of much logistics thinking and practice are in a manufacturing context, we are witnessing increased and highly successful application of logistics and SCM principles in a services context also (just think of the efficiencies which have been driven into many service- based activities such as banking and hospitals where the emphasis has shifted to serving more customers, better, faster, cheaper).

The terms logistics and SCM, although often used interchangeably, are distinct and will be defined later in the chapter. First, however, it is appropriate to examine how some key developments over the past couple of decades have shaped the evolution of these important areas. In fact six separate and important developments, each of which evolved largely independently, can be identified and are now detailed.

Reduced transport intensity of freight

In the past, international trade was dominated by bulky raw materials. Times have, how­ever, changed and in-process and finished products, not raw materials, now play a much greater role in world trade. Some simple examples illustrate this clearly. Compare the value of the various consumer electronics products currently being shipped globally each day with the bulky, low-value, agricultural produce shipped around the world 100 years ago. Agricultural produce, and indeed other comparatively high-volume/low-value freight, does still of course traverse the world but, in general, the size and value of the freight which is transported today is very different to that of times past. In the case of agri­culture, many food producers, rather than transporting bulky foodstuffs, now tend to try and add value' to the product near to the point of production: for example rather than

ship live chickens, the international poultry trade generally comprises processed, ready- to-cook chicken. The same is true for many other trades, across a range of industries, whereby manufacturers try and increase the value-to-volume ratio of products being shipped. We will see in later chapters that there is also an increasing trend towards hav­ing the final value-adding stages in the production of various products as close as pos­sible to the final customer.