(eBook PDF) Supply Chain Strategies: Demand

Driven and Customer Focused 2nd Edition download

https://ebooksecure.com/product/ebook-pdf-supply-chain-
strategies-demand-driven-and-customer-focused-2nd-edition/

Download full version ebook from https://ebooksecure.com

We believe these products will be a great fit for you. Click
the link to download now, or visit ebooksecure.com
to discover even more!

(eBook PDF) Operations and Supply Chain Management 2nd

Edition

http://ebooksecure.com/product/ebook-pdf-operations-and-supply-
chain-management-2nd-edition/

(eBook PDF) Demand Driven Material Requirements

Planning (DDMRP), Version 2

http://ebooksecure.com/product/ebook-pdf-demand-driven-material-
requirements-planning-ddmrp-version-2/

(eBook PDF) Supply Chain Strategy Second Edition 2nd

Edition

http://ebooksecure.com/product/ebook-pdf-supply-chain-strategy-
second-edition-2nd-edition/

(Original PDF) Managing Supply Chain and Operations: An

Integrative Approach 2nd Edition

http://ebooksecure.com/product/original-pdf-managing-supply-
chain-and-operations-an-integrative-approach-2nd-edition/
(eBook PDF) Food Supply Chain Management and Logistics

http://ebooksecure.com/product/ebook-pdf-food-supply-chain-
management-and-logistics/

(eBook PDF) Purchasing and Supply Chain Management 6th

Edition

http://ebooksecure.com/product/ebook-pdf-purchasing-and-supply-
chain-management-6th-edition/

(eBook PDF) Operations and Supply Chain Management 9th

Edition

http://ebooksecure.com/product/ebook-pdf-operations-and-supply-
chain-management-9th-edition/

(eBook PDF) Logistics & and Supply Chain Management 5th

Edition

http://ebooksecure.com/product/ebook-pdf-logistics-and-supply-
chain-management-5th-edition/

(eBook PDF) Operations and Supply Chain Management 15th

Edition

http://ebooksecure.com/product/ebook-pdf-operations-and-supply-
chain-management-15th-edition/
Contents

List of ¿gures xi
List of tables xiv
Preface xvi
How to use this book xix
1 Globalization: global demand and supply strategies 1
Introduction 1
Why should we study supply chains? 5
Supply chain strategy: a de¿nition 6
Globalization 8
The reality of global markets 20
New technologies and innovation 28
Conclusions 29
Discussion questions 31
References 32

2 Strategic concepts and the customer focused, market driven

supply chain 34
Strategy 35
Strategic planning or strategic management? 35
De¿ning strategy 36
Levels of strategy 39
Strategic thinking, systems and learning 42
Static or dynamic environments 43
Competence and capability 49
Learning and organizational capability 52
Developing strategic objectives 53
Supply chain strategies and strategic ¿t 58
Summary 65
Discussion questions 65
References 66

3 The emergence of supply chain management and supply

chain strategy as a critical success factor for organizations 69
Introduction 69
Historical developments 70
viii Contents
De¿nition of supply chain strategy 75
Category management 75
Empirical evidence 81
Conclusions 89
Discussion questions 94
References 94

4 Market driven and customer focused supply chain strategies 101

Organizational structure in relation to supply
chain strategies 102
Products (tangible) or services (intangible) 104
Customer focus 112
Product development 122
Market development 123
Diversi¿cation 123
Supply chain strategies that win orders 123
Service, operand and operant resources 126
Summary 126
References 127

5 Supplier sourcing, procurement and evaluation 128

Sourcing and procurement decisions 128
Buying locally 129
Buying nationally 129
Global sourcing 129
An iceberg theory of cost comparison 133
An example of the iceberg effect 137
Supplier selection 139
Ethical considerations in sourcing and procurement 142
Supplier development programmes 144
Summary 146
Discussion questions 147
Review questions 149
References 149

6 Supply chain structures and relationships 150

Relationships and structures 150
Purchasing and procurement 150
The purchasing decision 152
Purchase frequency 155
Supplier relationships 156
Summary 174
Discussion questions 174
References 175

7 Supply chain integration, technology and e-business strategies 177

Market driven and customer focused 177
Demand driven supply chains: an introduction 179
 Contents ix
Technology and supply chain integration 179
Nike shoes Ày on to the shelves 183
Looking upstream: a consumer perspective 183
B2B 187
e-Supply chain opportunities 188
Customer Relationship Management (CRM) 198
Summary 202
Discussion questions 202
Glossary of e-business terminology 203
References 204

8 Strategic supply chain cost, value and measurement 205

Introduction to cost and value concepts 205
Supply chain cost and control 208
De¿nition 212
Direct Product Pro¿tability (DPP) 217
Total Cost of Ownership (TCO) 218
The three component costs of TCO 220
Supply chain ¿nancials 225
Performance measurement: an introduction 227
Benchmarking 233
Balanced Score Card (BSC) 240
Summary 241
Discussion topics 241
References 242

9 Service levels, synchronization of business processes

and inventories 243
Introduction 243
Inventory management 244
ABC analysis applying Pareto’s concept 244
Stockless buying or systems contracting 247
Economic Order Quantities (EOQ) 248
Demand led management 251
Just-in-Time (JiT) 255
Lean and agile strategies 258
Materials Requirement Planning (MRP) 259
Enterprise Resource Planning (ERP)
systems 261
Business Process Design (BPD) 261
Business Process Re-engineering (BPR) 262
Service levels 262
Summary 263
Discussion questions 264
References 264
x Contents
10 Supply chain pro¿tability, quality and world-class organizations 266
Supply chain management and pro¿tability 266
World-class supply chain management principles 266
Quality management 271
Summary 279
Discussion questions 279
References 280

11 Logistics and ful¿lment strategies 281

Introduction 281
A retail example 282
Third Party Logistics (3PL): outsourcing the
logistics function 282
Trade-off concept 283
De¿nition of warehousing 283
Location of storage facilities 286
Types of storage facility 289
From ‘push’ to ‘pull’ the changing face of retail 292
Tesco: a case in point 293
Factory Gate Pricing (FGP) 296
Storage methods 296
Two important types of storage equipment 297
Assessing storage requirements 298
Stores layout 299
Transport decisions and supply chain strategies 302
Summary 304
Discussion questions 304
References 305

12 The supply chain challenges 306

Strategies for the future 306
Mass customization: the supply chain challenge 307
Globalization: the supply chain challenge 319
Greening the supply chain 320
Ethical supply chains 321
Sustainability 322
Information, integration and intelligent systems 324
Implications for managers, organizations and
policy makers 325
Implications for a research agenda 325
Discussion questions 327
References 327

13 Afterword 329

Glossary of supply chain terms 334

Index 344
Figures

1.1 Supply chain constituents 6

1.2 Where supply chains ¿t into the economic system 25
1.3 Customer focused supply chains and their environment 31
2.1 Planned, emergent and realized strategy 37
2.2 Strategic thinking (left brain–right brain, rational–emotional) 43
2.3 Types of strategic environment 44
2.4 Developing strategic objectives from the macro/micro environmental
audit 45
2.5 Five forces shaping the organization environment 46
2.6 Examples of ¿ve forces in B2B and B2C retailing 47
2.7 Environmental analyses for supply chains 48
2.8 Learning to develop supply chain capabilities 52
2.9 Developing strategic options: choices, plans, implementation and control 55
2.10 Illustration of feedback loops to update plans as necessary 56
2.11 Illustration of the iterative nature of strategy planning processes 57
2.12 The links between return on investment, differentiation and cost 59
2.13 Forecasts, expected demand, excess stock and excess demand 60
2.14 Dimensions of demand uncertainty and product types represented 61
2.15 Ef¿cient and responsive supply chains 62
2.16 Strategic ¿t: how supply chain strategies ¿t with competitive organization
strategies 63
2.17 Uncertain demand and responsiveness of supply chains 63
3.1 Evolution of supply chain management 71
3.2 Supply chain process cycles 73
3.3 The four pillars of Ef¿cient Consumer Response (ECR) 76
3.4 Best practice store merchandising example 77
3.5 Category management 77
3.6 Category management and performance measurement 78
3.7 Supply chain integration: four stages of development have occurred 79
3.8 Quick response: fast fashion vis-à-vis traditional supply 86
3.9 Digital supply chain collaboration 88
3.10 Possibilities of successful collaboration 89
4.1 Supply chains: silos and integration 102
4.2 Strategic focus means being customer focused 103
4.3 Transformation processes in supply chains 103
4.4 Notions of goods and services bundles 105
xii Figures
4.5 GANNT chart in Microsoft Project Planning tool 109
4.6 ‘Servuction’ model showing back and front of house interactions 110
4.7 Degree of interaction, customization and labour intensi¿cation 112
4.8 Customer value and supply chain processes 113
4.9 Activity map of Ryanair strategy 116
4.10 Income growth strategies and ef¿ciency strategies 119
4.11 Product/market supply chain strategies 120
4.12 Key emphasis for supply chain strategies over time 124
4.13 Types of production and competitive advantage 125
5.1 The iceberg theory of cost comparison 134
5.2 Icebergs’ transparent and non-transparent cost 134
5.3 Icebergs’ cost and competitive advantage 136
6.1 The effect of a 5 per cent cost reduction on pro¿t margin 154
6.2 Purchasing variables, more Rs 154
6.3 IMP interaction model of relationship structures 158
6.4 From adversarial to relationship collaboration 161
6.5 Vertical integration in supply chains 163
6.6 Intermediate type relationships 165
6.7 Customer and supplier risk and reward strategies 168
6.8 Customer portfolio approach: risk and reward strategies 169
6.9 Purchase portfolio matrix 171
6.10 Types of supply chain relationship 173
7.1 An Ishikawa (¿shbone diagram) showing e-supply chain strategies 182
7.2 B2B e-commerce evolution 187
7.3 Bene¿ts of e-procurement 190
7.4 Online auction purchasing 192
7.5 Organizational relational strategies built through technology 198
7.6 CRM strategies used by retail organizations 200
8.1 Value added concept explained 206
8.2 The input/output model showing cost or value creation 207
8.3 An organization value chain 208
8.4 The value system in supply chains 208
8.5 Fixed and variable costs illustrated 209
8.6 The effect of a change of quantity on cost 210
8.7 How unit cost changes as volumes increase 210
8.8 Another example of unit cost as quantities produced increase 211
8.9 The budgeting process inside an organization 213
8.10 How Activity Based Costing turns into Activity Based Management 215
8.11 Kaizen-continuous improvement (CI) 223
8.12 Supply chain pro¿tability and Return on Investment (ROI) 228
8.13 Importance-performance matrix 230
8.14 Five competitive dimensions 231
8.15 Better, faster, cheaper: what gets measured gets managed 233
8.16 World class organizations and customer focus 239
8.17 The Balanced Scorecard 241
9.1 Bill of materials in summary form 245
9.2 Pareto concept applied to customer service and inventory management 246
9.3 Costing customer service levels 246
 Figures xiii
9.4 ABC analysis 247
9.5 Economic Order Quantities (EOQ) 249
9.6 Inventory modelling: simple ¿xed quantity call off 250
9.7 Inventory modelling showing average stock holding 250
9.8 Inventory modelling showing lead times 251
9.9 Inventory modelling showing buffer stock 251
9.10 Forrester effect – the bullwhip 252
9.11 Demand ampli¿cation – demonstrating the Forrester effect 253
9.12 Just-in-Time model 255
9.13 Distribution Requirements Planning (DRP) 260
9.14 Enterprise Resource Planning (ERP) system 262
10.1 How supply chain management can improve ‘bottom line’ performance 267
10.2 Statistical process control chart (a) 276
10.3 Statistical process control chart (b) 277
10.4 QFD House of Quality 279
11.1 Logistics ful¿lment trade-off 283
11.2 Supply chain strategies employed to manage trade-offs 285
11.3 Locational choice of storage facilities 286
11.4 Cost–volume analysis applied to facility choice 288
11.5 Radio frequency tracking device used by warehouse operatives 291
11.6 Cross-docking facility 292
11.7 Causes of Àuctuation in warehouse space required 299
11.8 The ‘inverted T’ warehouse Àow 300
11.9 The ‘crossÀow’ warehouse Àow 301
11.10 The ‘corner’ warehouse Àow 301
11.11 The ‘throughput’ warehouse Àow 302
11.12 Strategic choices using Deming’s PDCA cycle 304
12.1 Music industry supply chain 312
12.2 Mass customization value chain 315
12.3 Spectrum of market opportunity 315
12.4 Strategy choice and customization 316
12.5 Mass customization and segmentation strategies 317
12.6 Mass customization and market type examples 318
12.7 Further examples of mass customization types and strategies 318
13.1 InÀuences on changes in attitude 330
13.2 The customer focus and the organizational strategic focus required to
respond to the challenges 332
13.3 Customer driven and customer focused supply chain strategies 333
Tables

0.1 Organizing framework for Supply Chain Strategies xx

1.1 Moving supply chains from operations to strategy focus 2
1.2 How to develop responsive supply chain strategies 4
1.3 Country growth forecasts by year and percentage 12
1.4 Top ten exporter and importer countries, 2010 18
1.5 Example of country risk assessment 18
1.6 Assembly of a global automobile in Europe: where the parts come from 20
1.7 World ranking of automobile manufacturers 21
1.8 The world’s largest corporations: Fortune Global Top 40 companies 24
1.9 Internet services and retailing 25
2.1 Strategy process models in extant literature 37
2.2 Advantages and disadvantages of different approaches to strategy 38
2.3 Examples of transitional shifts 42
2.4 Resource based views of strategy 49
2.5 Cost, differentiation and focus applied to supply chain strategies 58
2.6 Characteristics of ef¿cient and responsive supply chain strategies 64
3.1 Conceptual development of supply chain management 82
3.2 Traditional vis-à-vis fast fashion supply chains 84
3.3 Conceptualization of themes identi¿ed in supply chain management
literature 92
4.1 Goods and services 106
4.2 Differences between services and goods 111
4.3 Types of strategy and strategic activities 117
6.1 Typology of organizational buyers 151
6.2 Interaction variables 157
6.3 The top ¿ve reasons to outsource 163
6.4 Types of supply chain relationships identi¿ed 166
6.5 Eight ‘I’s that create successful ‘We’s 167
6.6 Types of partnership relationship 174
7.1 Leading Internet brands, the category and visits 185
7.2 Incidence of online purchasing problems reported by BCG 186
7.3 Bar code and RFID technologies used in supply chains 194
8.1 Fixed and variable cost 209
8.2 Data showing difference in unit cost as quantities increase 211
8.3 From traditional to Activity Based Costing 216
8.4 Example of DPP 217
 Tables xv
8.5 Financial variables that can be affected by supply chain decisions 225
8.6 Hines’ 7V framework potential impact on supply chains 226
8.7 Changes in a balance sheet caused by supply chain decisions 227
8.8 Five key performance areas 229
8.9 What the customers value 230
8.10 Evaluating performance against competition 230
8.11 Reasons for competitive benchmarking and process steps 235
8.12 SCOR operational focus and strategic activities/focus 236
8.13 What to benchmark (SCOR) 238
9.1 ABC Pareto analysis 245
9.2 ABC analysis example 245
9.3 EOQ data for a SKU 249
11.1 Locational decision data 287
11.2 Weighted average from locational decision data 287
11.3 Fixed cost, variable cost and volume data 288
11.4 Locational break-even points 288
11.5 Rating scales and locational decisions 289
11.6 Types of storage facilities 290
11.7 Distribution networks of some major UK retailers 293
11.8 Supply chain areas affected by transportation decisions 303
13.1 Main themes developed using a 7V framework 331
Preface

This is a book about supply chain strategies and strategic management of supply chains. It
differs from most recent books on the topic because it turns the focus away from
pure operational aspects of supply towards strategies that focus upon the customer, their
requirements and supply chain imperatives.
There has been much discussion about terminology in the literature. Should it be a chain
or is it a network? A chain suggests there are interconnected links, which is appropriate. It
may suggest a sequence of value creating processes, which is accurate. However, a chain
may also imply pure linear relationships, which is less appropriate, and therefore networks
might better describe how supply links are spatially related. There are also discussions in the
literature related to whether or not a supply chain is a cost chain or value chain. In a norma-
tive sense supply chains should be ‘value chains’ but are sometimes in a descriptive sense
‘cost chains’. They only represent value when revenues exceed cost. Therefore, at a
point when the customer pays for service, value is created and all activities up to this point
incur cost. Mitigating against value are service-product complexity in design, excessive
engineering, over specifying quality of inputs and outputs beyond the expected service level,
wastage, inventory buffers, increasing warehousing space, lengthy production lead times,
lost market opportunities or contract penalties for being late or incomplete, sourcing
decisions, choice of markets to enter, distribution networks, and modes of delivery. Lean
practices have emerged to address many of these issues. Lean focuses on ef¿ciency but it is
worth saying that lean organizations do usually combine such practices with responsiveness
and agility to ensure customer focus. These are all strategic choices where potentially costs
may exceed revenue making it a cost chain. Value can of course have social as well as
economic meaning. Supply chain strategies and relations need to be conducted ethically and
responsibly. Nevertheless, the title ‘supply chains’ is correct in the sense that managers,
academics, students and the wider public have begun to understand conceptually the subject
matter of the text as supply chains. It makes sense therefore not to introduce new termi-
nology if we have agreement on the nomenclature of ‘supply chains’. Ambiguities as and
when they arise can help us think strategically and differently about what it is we are
managing and help us avoid the taken for granted stance of a pre-given name or state of
existence.
Is it a supply chain or is it a demand chain? The answer to this question is easier to address
because it is both, which is acknowledged throughout this book. Supply suggests ‘service/
product push’ and demand suggests ‘market/customer pull’. However, supply chains only
continue to exist if there is demand for service. The book is about supply chains, which are
customer focused. It is essentially a strategic and market driven approach to the study of this
topic rather than an operational, production, purchasing or supply based view. Nevertheless,
 Preface xvii
it recognizes that the origins have come from an eclectic set of underpinning disciplines with
a major contribution from the purchasing and operations management literature. Whilst
these contributions are important, their origins, focus and concerns were in many respects
temporally located in an era of production orientation. They are concerns that do remain in
some industries in different geographical locations but the ways in which we address them
are different. If contemporary organizations are to lower total cost in the supply chain,
increase value for the network, eliminate and avoid waste, prioritize sustainability and
provide service for the customer then they must focus on the customer and the market.
Contemporary supply chains can be complex systems that must adapt to the changing
environment in which they exist. The major concern of this text is to primarily direct
attention on how supply chains can be organized effectively and ef¿ciently, to satisfy the
market, and customer demand.

The successful organization of the future will be customer-focused not product or

technology focused, supported by a marketing information competence that links the
voice of the customer to all the ¿rm’s value-delivery processes.
(Webster, 1997)

How we consider the relationships between the organization, its customers and supply
chain partners is of paramount concern for strategists. While the focus is on the customer,
organizations need to leverage technologies to support their customers, developing products
that meet service expectations and in doing so create value for the organization, supply chain
partners and most importantly, for the customer. The customer is most important because
if customers value service received from organizations they return ensuring survival
and continuation of the value stream. Organizations need to design lean (ef¿cient), agile
(effective) and synchronous (timely) supply chains that meet customer service-delivery
expectations seamlessly. Strategies need to examine the total system looking outwards not
inwards to achieve synergies through co-operation, co-opetition and looking downstream
beyond the customer to the customer’s customer to seek opportunities and upstream to the
supplier’s suppliers. Globalization, outsourcing, offshoring and changing organizational
environments may cause shocks to the ecosystem within which supply chains operate
and organizations need to anticipate and react to such changes being adaptable in the
strategies they enact. In the interconnected economy, integration and interdependence
present opportunities that supply chain strategies can seize and sustain.
All organizations have a supply chain. Whether or not the organization manufactures or
supplies goods and services there is a supply chain. This is a route that these goods and
services take to their market. There are, as discussed, debates as to whether or not the terms
supply chain, supply networks, demand chains, and value chains, describe the approach
better. Nevertheless, this text has chosen the language in common usage by managers, which
is, supply chains. The value of the text is its focus on the customer as a driver and focal point
for all activities within the supply chain, a point that is sometimes omitted from many
academic papers, practitioner articles and books that purport to be about some aspect of
supply chain management. This book redresses the imbalance of these internally focused
approaches and opens up the debate about what it means in contemporary organizations
throughout the world to manage supply chains developing ‘supply chain strategies’. There is
not a single stratagem, or a universal strategy but rather there are multiple strategies. How
these strategies are designed, con¿gured, aligned, executed and related to each other deter-
mines their success. As economists say, there are alternative means to a given end. This book
xviii Preface
is not focused in a single discipline. It acknowledges that in service organizations and
business different perspectives are required. Ultimately, the customer determines the future
of all business activity within an economic system. Without customers, businesses do not
exist. Without providing service, organizations do not exist. Supply chain strategies are
necessary to satisfy customers, deliver service and create value.

Reference
Webster, F. E. (1997) The future role of marketing in the organization. In D. R. Lehman and K. E. Jocz
(eds), ReÀections of the Future of Marketing (pp. 39–66). Cambridge, MA: Marketing Science
Institute.
How to use this book

This book has twelve chapters which may be read separately and stand alone as a discussion
of a discrete area within supply chain strategy. The book is also intended to be read through
and it is logically structured to move from the broader context within which supply chain
systems are situated through to the contemporary challenges facing supply chain strategists.
The book provides a self-contained course in the study of supply chain strategies drawing
attention to the importance of such strategies to remain focused on the end customer. Supply
chains are in effect market-driven systems that ful¿l the needs of customers. These supply
chains need to be ef¿cient to move goods through the chain without friction or drag and they
need to be effective to ensure the customer receives the service and goods required in the
right quantity, quality, at the right time, in the right place and at the right price. Supply chain
managers focus on the customer and manage value, volume, variety, volatility, virtual
networks, visibility and velocity (7Vs). As you read the text you may ¿nd new terms and
quick explanations and de¿nitions are given in the extensive glossary so from time to time
you may need to Àick to that. There are learning outcomes for each chapter that should help
you structure learning as you read. There are discussion questions at the end of each chapter
to help you consolidate your knowledge and understanding. The organizing framework for
the book is given below and may help you ¿nd topics of interest quickly. It also gives you
key themes, dimensions, concepts and originating disciplines which may help you do your
own research. There is also a detailed table of contents and index to help you ¿nd your way
around the book.
Table 0.1 Organizing framework for Supply Chain Strategies

Chapter Themes Dimensions Concepts Originating

discipline(s)

1 Globalization – Similarities – Institutional and legal Economics,

contexts in differences, frameworks, individuals and social systems,
which supply ef¿ciency and the whole system, demand politics,
chains exist effectiveness of and supply, ef¿cient and marketing
organization effective supply chains,
interconnectedness of systems,
environmental factors PESTEL,
volatility, volume,
value, visibility/virtuality,
variety, variability, velocity,
customer focus
2 Strategic concepts Planned – Levels of strategy, strategic Strategy
emergent thinking, static v. dynamic (economics,
environments, competence and management and
capability, organizational marketing)
learning, strategic objectives,
¿t and performance,
customer focus
3 Emergence of Temporality Historical developments, Purchasing,
supply chain – existence integration, information, production,
management interconnectedness, category operations,
management, customer logistics,
focus, 7Vs marketing,
management
4 Market-driven, Product – Structure and strategy, tangibility Marketing
customer market (product/service), product
focused supply development, market development,
chain strategies customer orientation
5 Supplier sourcing, Cost – Sourcing and procurement Purchasing,
procurement performance decision criteria, global, national marketing
and evaluation and local sourcing strategies,
iceberg theory of cost, supplier
selection, ethical sourcing and
procurement, sustainability,
disruption, supplier development
programmes, supply base
rationalization, customer focus
6 Supply chain Agency – Relationships and structures, Economics,
structures and structure, agency, purchasing decisions, social systems,
relationships ef¿ciency, purchasing frequency, supplier politics,
effectiveness relationships, make or buy institutional
and legal
frameworks and
psychology,
purchasing and
marketing
7 Supply chain Ef¿ciency – Integration, interconnectedness, Economics,
integration, effectiveness information, infrastructure, information
technology and platforms, digital supply chains, systems,
e-business customer focus strategy,
strategies marketing
 8 Strategic Ef¿ciency Cost, volume, pro¿t, activity Economics,
supply chain cost, – effectiveness based costing, lean accounting marketing
value and systems, direct product
measurement pro¿tability, total cost of
ownership, performance
measures, benchmarking, best
practice, balanced scorecards,
value chains/streams, customer
focus
9 Service Ef¿ciency Service level, ABC/Pareto Marketing,
levels, – effectiveness concept, stockless buying economics,
synchronization of systems, Economic Order operations
business processes Quantities (EOQ), demand led
and inventories management, Just-in-Time
systems (JIT), lean and agile
strategies, Material Requirement
Planning (MRP), Enterprise
Resource Planning (ERP),
Business Process Re-engineering
(BPR)
10 Supply chain Ef¿ciency SCM and pro¿tability, Economics,
pro¿tability, – effectiveness world-class, quality quality (TQM)
quality management, 6 sigma
and world-class
organizations
11 Logistics and Ef¿ciency Warehousing, locational Logistics,
ful¿lment – effectiveness decisions, types of storage and economics
strategies handling equipment, store
layouts, transport decisions,
delivery options/strategies
12 The supply Ef¿ciency Mass customization, Strategy,
chain challenges: – effectiveness globalization, risk, marketing
Strategies sustainability, green
for the future supply chains, ethical
trading, information,
integration and intelligent
systems, managing values,
customer focus
This page intentionally left blank
1 Globalization
Global demand and supply
strategies

After reading this chapter you should be able to:

• be aware of the impact that globalization is having upon patterns of world

consumption and production and how this impacts supply chains;
• know that not everybody agrees that globalization is of bene¿t to all people in the
world economy;
• de¿ne globalization as a phenomenon and recognize the key drivers of change in
the global economy and how supply chains both shape and are shaped by
globalization;
• be aware of the political and regulatory environments in which organizations
operate and their impact upon supply chain strategies;
• know the risks involved in sourcing and procuring suppliers and supplies
from different parts of the globe and how this changes the nature of supply
chains;
• know the impact of new technologies and innovation and how these develop-
ments impact upon supply chain strategies.

It has been said that arguing against globalization is like arguing against the laws
of gravity.
Ko¿ Annan

Globalization presumes sustained economic growth. Otherwise, the process loses its
economic bene¿ts and political support.
Paul Samuelson, Nobel Laureate Economics

Introduction
The aim of this text is to develop a different approach to the study of organizational supply
chains by shifting the terrain from the usual ¿eld of purchasing/operations towards a more
strategic approach focusing upon market-driven and customer focused strategies for
managing supply chains. Taking a strategic approach to managing supply chains involves
direction setting, establishing an agenda for change and allocating resources effectively
whilst simultaneously utilizing resources ef¿ciently. To achieve these strategic objectives it
is essential that organizations focus their supply chain activities to satisfy customers.
Managers need to think differently about what they do and the purpose of the organization
2 Supply Chain Strategies
and organizational networks in satisfying demand through effective (strategic) and ef¿cient
(operational) supply chain structures, relationships and strategies. Operational thinking
is pervasive in most organizations. Indeed this should come as no surprise since most
managers are promoted to positions demanding strategic thinking and strategic skill from
positions demanding different, important operational thinking and skill sets. In such
circumstances the tendency is often to retain operational thinking without recognizing
the shift required in their new roles to think strategically. The ability to think strategically
and translate that thinking into operational activities likely to work in practice is an
important competence for strategic development to be successful. Those managers who can
successfully make the transition from operational to strategic thinkers are a very powerful
force for their organization. The shift in focus from operational to strategic is illustrated in
Table 1.1.
This opening chapter situates supply chain strategies in the context of globalizing markets,
recognizing global patterns of demand exist in a symbiotic relationship with local markets
that are paradoxically part of this globalizing pattern of development. Differences and simi-
larities in supply chain strategies developed for different types of organization are identi¿ed
throughout the book. The introductory chapter signposts the logic for the book and chapter
sequence. The customer focus and its unique place informing supply chain strategies receives
greater emphasis than is found in most discussions of supply chains locating the arguments
for the approach in the contemporary and historical business literature both broadly and
narrowly in this newly developing interdisciplinary management ¿eld. It explains and justi-
¿es the approach taken throughout placing the customer and market relationships central to
supply chain strategies.
Since marketing developed as a discipline in the early part of the twentieth century
there have been debates about what the content and boundaries of study should be
(Bartels, 1951). In the earliest days distribution was viewed as central to marketing
(Bartels, 1976). Peter Drucker once referred to distribution as the economy’s ‘dark
continent’ indicating that it was not well understood by many in business (Drucker, 1962).
Fifty years on and a recent McKinsey Report called for better economic statistics and trade
measures to develop a better quantitative understanding of global value chains (Roxburgh,
Manyika, Dobbs and Mischke, 2012). The dif¿culty with studying distribution is that by

Table 1.1 Moving supply chains from operations to strategy focus

From: Operational focus To: Strategic focus

Immediate time frames Medium–long-term time horizons

Concrete Conceptual
Action/activities/doing Think, reÀect, learn and act
Reactive problem solving – ‘¿re ¿ghting’ Proactive – identify future opportunities
Routine – ‘day to day’ Future development – change programme
Production/service processes View total supply chain from customer perspective
Product push Demand pull
Viewing supply as a production problem View supply as a market problem – to satisfy customers
Resource utilization – ef¿ciency focus Resource development (including competence), planning
and acquisition – effectiveness focus
Operational ef¿ciency Strategic effectiveness
‘Hands on’ approach ‘Hands off’ approach
‘Feet on the ground’ ‘Helicopter view’ or ‘view from the bridge’
Another Random Scribd Document
with Unrelated Content
 Fig. 192.—P ORTUGUESE T YPES: P EASANT OF O VAR; W OMAN OF L EÇA;
P EASANT W OMAN OF A FFIFE.

Travellers speak highly of the manners, civility, and kindness of the

peasantry not yet contaminated by commerce. The cruelties
committed by Portuguese conquerors in the Indies and the New
World have given the nation a bad reputation, though, as a rule, the
Portuguese has compassion for all sorts of suffering. He is a
gambler, but never quarrels; he is fond of bull-fights, but takes care
to wrap up the bull’s horns in cork, in order that the animal may be
saved for future contests; and he is exceedingly kind to domestic
animals. In their intercourse the Portuguese are good-tempered,
obliging, and polished. To tell a Lusitanian that he has been “brought
up badly” is to offend him most seriously. Their oratory is elegant,
though ceremonious. Even the peasants express themselves with a
facility and command of words remarkable in a people so badly
educated. Oaths {472} and indecent expressions scarcely ever pass
their mouth, and, though great talkers, and even boasters, they are
most guarded in their conversation. Portugal has {473} produced great
orators, and one of her poets, Camões, is amongst the most
illustrious the world has ever seen. On the other hand, Portugal has
given birth to no great artist, for Gran Vasco is a mythical personage.
Camões himself avows this when he says, “Our nation is the first
because of its great qualities. Our men are more heroic than other
men; our women better-looking than other women; and we excel in
all the arts of peace and war, excepting in the art of painting.”
Portuguese is very much like Castilian as far as root-words and
general construction are concerned, but is far less voluminous and
sonorous. Nasal and hissing sounds, which a foreigner finds it
difficult to pronounce, abound, but there are no gutturals. Arab
words are less numerous in Portuguese than in Castilian, but the
Lusitanians, as well as the Spaniards, still swear by the god of the
Mo­ham­me­dans—Oxala (Ojalà ); that is, “If Allah wills it.”
The Portuguese cannot compare in numbers with the other
nations of Europe, and their influence upon the destinies of the
world is consequently small. At one time of their history, however,
they surpassed all other nations by their maritime enterprise. The
Spaniards certainly shared in the great discoveries of the fifteenth
century, but it was the Portuguese who made them possible by first
venturing to navigate the open ocean. It was a Portuguese,
Magalhães, who undertook the first voyage round the world,
terminated only after his death. A similar pre-eminence amongst
nations will never be met with again, for the increased facilities of
communication exercise a levelling influence upon all. Portugal,
therefore, can never again hope to resume the national status which
she held formerly, but her great natural resources and favourable
geographical position at the extremity of the continent must always
insure her an honourable place amongst them.
 II.—N ORTHERN P ORTUGAL. T HE V ALLEYS OF THE M INHO,
D OURO, AND M ONDEGO.
The mountains of Lusitania are a portion of the great orographical
system of the whole peninsula; but they are not mere spurs,
gradually sinking down towards the sea, for they rise into
independent ranges; and the individuality of Portugal is manifested
in the relief of its soil quite as much as in the history of its
inhabitants.
The mountains rising in the north-eastern corner of Portugal, to
the south of the Minho, may be looked upon as the outer barrier of
an ancient lake, which formerly covered the whole of the plains of
Old Castile. From the Pyrenees to the Sierra de Gata this barrier was
continuous, and the breaches now existing date only from a
comparatively recent epoch, and are due to the erosive action of
torrents. The most considerable of these breaches, that of the
Douro, could have been effected only by overcoming most
formidable obstacles.
The most northern mountain mass of Portugal, that of the Peneda
of Gavieiro (4,727 feet), rises abruptly beyond the region of forest,
and commands the Sierra Peñagache (4,065 feet) on the Spanish
frontier to the east, as well as the hills of Santa Luzia (1,814 feet)
and others near the coast. Another mountain mass rises {474}
immediately to the south of the gorge through which the Limia
passes after leaving Spain. This is the Serra do Gerez (4,815 feet), a
range of twisted, grotesquely shaped mountains, the only
counterpart of which in the peninsula is the famous Serranía de
Ronda. This range, together with the Larouco (5,184 feet), to the
east of it, must be looked upon as the western extremity of the
Cantabrian Pyrenees, and like them it consists of granitic rocks.
The flora of these northern frontier mountains of Portugal much
resembles that of Galicia, and on their slopes the botanist meets
with a curious intermingling of the vegetation of France, and even
Germany, with that of the Pyrenees, Biscay, and the Portuguese
lowlands. On the southern summits, however, and more especially
on the Serra de Marão (4,665 feet), which forms a bold promontory
between the Douro and its important tributary the Tamega, and
shelters the wine districts of Oporto from north-westerly winds, the
opportunities for examining into the arborescent flora are but few,
for the forests which once clad them have disappeared. The
schistose plateaux to the east of them and to the north of the Douro
have likewise been robbed of their forests to make room for
vineyards. Most wild animals have disappeared with the forests, but
wolves are still numerous, and are much dreaded by the herdsmen.
The mountain goat (Capra ægagrus ), which existed until towards
the close of last century in the Serra do Gerez, has become extinct.
The Serra da Cabreira (4,196 feet), to the east of Braga, is probably
indebted for its name to these wild goats.
If the Serra do Gerez may be looked upon as the western
extremity of the Pyrenean system, the magnificent Serra da Estrella
(6,540 feet), which rises between the Douro and Tejo, is
undoubtedly a western prolongation of the great central range of
Spain which separates the plateaux of the two Castiles. These “Star
Mountains” are attached to the mountains of Spain by a rugged
table-land, or mesa , of comparatively small height. The great
granitic Serra da Estrella rises gently above the broken ground which
gives birth to the Mondego. It can easily be ascended from that side,
and is hence known as the Serra Mansa , “the tame mountain.” On
the south, however, above the valley of the Zezere, the slopes are
abrupt and difficult of access, and are known for that reason as
Serra Brava ; that is, “wild mountain.” Delightful lakelets, similar to
those of the Pyrenees and Carpathians, are met with near the
highest summit of the range, the Malhão de Serra. The tops of the
Serra da Estrella remain covered with snow during four months of
the year, and supply the inhabitants of Lisbon with the ice required
for the preparation of their favourite sherbet. The orographical
system of the Estrella ends with the Serra de Lousão (3,940 feet),
for the hills of Estremadura, which terminate in the Cabo da Roca, a
landmark well known to mariners, belong to another geological
formation, and consist for the most part of Jurassic strata overlying
the cretaceous formation.
The mountains of Beira and Entre Douro e Minho are exposed to
the full influence of the moisture-laden south-westerly winds, and
the rainfall is considerable. The rain does not descend in torrents, as
in tropical countries, but pours down steadily. It is more abundant in
winter and spring, but not a month passes {475} without it. Fogs are
frequent at the mouths of valleys and along the coast as far south as
the latitude of Coimbra. At that place as much as sixteen feet of rain
has fallen in a single year, an amount only to be equalled within the
tropics.
 Fig. 193.—T HE V ALLEY OF THE L IMIA, OR L IMA. Μ
Scale 1 : 300,000.

The humidity of the air accounts for the great equability of the
climate of Northern Portugal. At Coimbra the difference between the
coldest and warmest month amounts to but 20° F. Frosts are severe
only on the plateaux exposed to the north-easterly winds, and the
heat becomes unbearable in deep valleys alone, where the air
173
cannot circulate freely. At Penafiel, where the rays of the sun are
thrown back by the rocky precipices, the heat is almost that of a
furnace. This, however, is an exception, and the climate generally
can be described as temperate.
Running water is abundant. Camões has sung the beauties of the
fields of Coimbra watered by the Mondego, the charms of cascades
sparkling amidst foliage, and the purity of the springs bursting forth
from rocks clad with verdure. The Vouga, the affluents of the Douro,
the Ave, Cavado, and Lima, likewise take their {476} devious courses
through smiling landscapes whose beauties are set off by rocks and
mountains. The Lima, whose delights might well cause Roman
soldiers to forget the rivers of their own country, is the only river of
the peninsula still in a state of geological transition. All others have
drained the lakes which gave birth to them, but in the case of the
Lima that old lake basin is still occupied by a swamp, known as
Laguna Beon, or Antela, the only remains of a mountain-girt inland
lake as large as that of Geneva.
 The current of the rivers of Fig. 194.—D UNES OF A VEIRO. Μ
Scale 1 : 400,000.
Northern Portugal is too great to
permit of their being uti­lised as
high-roads of commerce. They
have ports at their mouths, but the
Douro, which drains nearly a sixth
of the Iberian pe­nin­sula, is the
only one amongst them which fa­ci­‐
li­tates access to an inland dis­trict.
Mariners dread to approach the
coast when the wind blows on
shore. Be­tween the Minho and
Cabo Car­voeiro, a dis­tance of 200
miles, the coast presents features
very much like those of the French
landes. Its original in­den­ta­tions
and ir­reg­u­lar­i­ties have been ob­li­‐
ter­ated by bar­riers of sand. The
lower valley of the Vouga was for­‐
mer­ly an in­let of the sea ex­tending
far inland. The basin of Aveiro re­‐
sembles geo­logi­cal­ly that of
Arcachon. Its wa­ters abound in
fish, but the Douro is the south­ern­‐
most ri­ver of Europe visited by
salmon. The abundance of life in
cer­tain localities of it is fig­ur­a­tive­ly
ex­pressed by a Spa­nish pro­verb,
which says, “The water of the
Douro is not wa­ter, but broth.”
The rec­ti­lin­ear beach of Beira-mar is lined for the most part with
dunes, the old gulfs behind which are gradually being con­verted into
in­sa­lub­rious swamps, fringed by heath, ferns, strawberry-trees, and
broom, whilst the neigh­bour­ing forests consist of oaks and pines.
Formerly these dunes invaded the cul­ti­vated portions of the country,
as they still do in France, where like geological causes have
produced like results. But long before a similar plan was thought of
in France these Por­tu­guese dunes were planted with pines, and as
early as the reign of King Diniz “the Labourer,” at the be­gin­ning of
the four­teenth cen­tury, they had ceased to “march.” {477}
The population of the cultivable portions of the basins of the
Minho and Douro is very dense, and in order to maintain themselves
the inhabitants are forced to work zealously. Their country is the
most carefully cultivated of the peninsula. In a large measure this
industry is due to the fact of the peasantry being the owners of the
land they cultivate, or at least affarádos —that is, copyholders—who
only pay a few shillings annually to the lords of the manors. Many of
the peasants are wealthy, and the women are fond of loading
themselves with jewellery, amongst which necklaces made in the
Moorish taste are most prominent. The cultivation of the fields is
attended to with scrupulous care; and the most ingenious methods
are employed for the irrigation of the upper slopes of the hills, which
are frequently cut up into terraces, or geios . These Northern
Portuguese are as distinguished for moral excellence as they are for
industry. Their sweetness of disposition, gaiety and kindliness are
the theme of universal praise, and as regards their love of dancing
and music they are veritable Theocritan shepherds. Challenges in
improvised verses form one of the amusements of young men. Nor
is the population devoid of physical beauty. The women of Aveiro,
though often enfeebled by malaria, have the reputation of being the
prettiest in all Portugal.
The cultivation of the vine and the making of port wine constitute
the principal branch of industry of the country. The chief vine-
growing district, ordinarily known as Paiz do Vinho , lies to the north
of the Douro, between the Serra de Marão and the Tua, and is
exposed to the full force of the rays of the summer sun. In the
middle of the seventeenth century the cultivation of this district had
hardly begun. The English had not then learnt to appreciate these
growths, and were content with the various Portuguese wines
shipped from Lisbon. It was only after the treaty concluded by Lord
Methuen in 1702 that the cultivation of the vine assumed certain
dimensions in the district of the Douro, and ever since the reputation
of port has been on the increase. The Marquis of Pombal founded a
company for the production of wine, and the small town of Pezo da
Regoa, on the Corgo, then became famous for its wine fairs, at
which fortunes were lost and won, and a town of wine cellars and
stores sprang up opposite the town of Porto, or Oporto, near the
mouth of the Douro. For more than a hundred years port and sherry
have kept their place on the tables of English gentlemen, and nearly
all the wine produced on the banks of the Dóuro finds its way to
England or to British colonies. Indeed, up to 1852 the best quality,
known as “factory wine,” could be exported to England alone. Next
to the English the Brazilians are the best customers of Oporto: they
174
receive nearly 1,000,000 gallons of wine annually.
The breeding of mules and fattening of Spanish cattle for the
London market yield considerable profit. Early vegetables are
forwarded not only to London but also to Rio de Janeiro.
Manufactures were already of some importance in the {478} Middle
Ages, and have recently been much developed by enterprising
English capitalists. Oporto has cotton, linen, silk, and woollen mills,
foundries and sugar refineries, and its jewellers and glove-makers
enjoy a good repute. But agriculture, industry and legitimate
commerce, and even the smuggling carried on in the frontier district
of Bragança, do not suffice to support the ever-increasing
population, and thousands emigrate annually to Lisbon and Brazil.
 Fig. 195.—O PORTO AND THE P AIZ DO V INHO. Μ
Scale 1 : 1,000,000.

Northern Portugal may be described as the cradle of the existing

kingdom, and it was Porto Cale, on the site of Villanova de Gaia, the
southern suburb of Oporto, which gave a name to all Lusitania. At
Lamego, to the south of the Douro, the Cortes met, according to
tradition, in 1143, and constituted the new kingdom of which Oporto
became the capital. When the country recovered its independence
after the short dominion of Spain, the Dukes of Bragança were
invested with the regal power. Though Lisbon occupies a more
central position than Oporto, the latter frequently takes the initiative
in political movements, and the success of any revolution is said to
depend upon the side taken by the energetic population of the
north. If we may accept the estimate of the Portuenses , they are
morally and physically the superiors of the Lisbonenses . They alone
are the true sons of the great people whose vessels ploughed the
ocean during the age of discoveries, and there can be no doubt that
their gait is more determined, their speech and their glance more
open, than those of the inhabitants of the capital. In vulgar
parlance, people of Oporto and Lisbon are known as tripeiros and
alfasinhos ; that is, tripe and lettuce eaters.

OPORTO.

Porto, or O Porto, the “Port” par excellence , is the natural capital

of Northern Lusitania, the second city of Portugal on account of its
population and commerce, the first in manufactures. As seen from
the banks of the Douro, here hardly {479} more than 200 yards in
width, and spanned by a magnificent railway bridge, it rises like a
double amphitheatre, whose summits are crowned by the cathedral
and the belfry dos Clerigos , and the narrow valley separating them
covered with houses. The lower town has broad streets, intersecting
each other at right angles, but the streets climbing the hills are
narrow and tortuous, and even stairs have frequently to be
ascended in order to reach the more elevated quarters of the town.
Cleanliness is attended to throughout, and the citizens are most
anxious in that respect to insure the praises of their numerous
English visitors. Gaia, a long suburb, occupies the opposite side of
the river. It abounds in factories and storehouses, and its vast cellars
are stated on an average to contain 80,000 pipes of wine. Beautiful
walks extend along the river bank and its terraces, and the long
reaches of the stream are covered with shipping, and fringed with
gardens and villas. The hills in the distance are crowned with ancient
convents, fortifications, and villages half hidden amongst verdure.
Avintes, famous for the beauty of its women, who supply the town
daily with broa , or maize bread, is one of them. Suburbs extend
along both banks of the river in the direction of the sea. The river at
its mouth is only two fathoms in depth during low water, and
dangerous of access when the wind blows from the west. Even at
Oporto vessels of 400 or 500 tons are exposed to danger from
sudden floods of the river, which cause them to drag their anchors.
The port of the Douro has therefore to contend with great difficulties
175
in its rivalry with Lisbon.
The small town of São João da Foz, at the mouth of the Douro,
has a lighthouse, but carries on no commerce. Near it are
Mattozinhos and Leça, the latter of which boasts of an ancient
monastery resembling a fortress, and is much frequented on account
of its fine beach and refreshing sea breezes. Espinho, to the south of
the Douro, is another favourite seaside resort, in spite of the all-
pervading smell of sardines. The small ports to the north of the
Douro are frequented only by coasting vessels or by seaside visitors.
The entrance to the Minho is defended by the castle of Insua, on a
small island, as its name implies, and by the insignificant fortress of
Caminha. The river is accessible only to vessels drawing less than six
feet. The mouth of the Lima, though even more difficult of access, is
nevertheless occupied by a town of some importance—coquettish
Vianna do Castello, beautifully ensconced amidst the verdure of its
fertile plain. Other towns are Espozende, at the mouth of the
Cávado, and Villa do Conde, at that of the Ave. Formerly most of the
vessels engaged in the slave trade and those employed in the great
maritime enterprises of the Portuguese were built here, and it still
boasts of a few ship-yards.
Amongst the inland towns of Entre Douro e Minho are Ponte de
Lima, famous for the beauty of the surrounding country; Barcellos,
overhanging the shady banks of the Cávado; and Amarante,
celebrated for its wines and peaches, and proud of a fine bridge
spanning the Tamega. But the only towns important on account of
their population are Braga and Guimarães, both placed on
commanding heights overlooking a most fertile country. Braga
(Bracara Augusta), an ancient Roman colony, the capital of the
Galicians, then of the Suevi, and later on the residence of {480} the
Kings of Portugal, became the primatial city of the whole of the
peninsula when the two kingdoms were temporarily united under the
same sovereign. But Braga is not only a town of the past, it is even
now a bustling place, where hats, linens, arms, and beautiful filigree
are manufactured for exportation to the rest of Portugal and the
Portuguese colonies. Guimarães is equally as interesting as Braga on
account of its monuments and mediæval legends. Visitors are still
shown the sacred olive-tree which sprang from a seed placed in the
soil by King Wamba, when still a common labourer; and Affonso, the
founder of the Portuguese monarchy, was born in the old castle.
Guimarães is a busy manufacturing town; it produces cutlery,
hardware, and table-linen, and English visitors never fail to purchase
there a curiously ornamented box of prunes. Near it are much-
frequented sulphur springs, known to the Romans as Aquæ Levæ .
But the most famous mineral springs of modern Portugal are the
Caldas do Gerez, in a tributary valley of the Upper Cávado.
 Fig. 196.—S ÃO J OÃO DA F OZ AND THE M OUTH OF THE D OURO. Μ

The towns of Traz os Montes and Beira Alta are too far removed
from highways to have attracted a considerable population. Villa
Real, on the Corgo, is the busiest place of Traz os Montes, owing to
the vineyards in its neighbourhood. {481} Chaves, an old fortress near
the Spanish frontier, boasts of one of those Roman bridges which
have rendered the century of Trajan famous: it was formerly noted
for its mineral springs (Aquæ Flaviæ ). Bragança, the old provincial
capital, has a commanding citadel, and, owing to its geographical
position, is an important place for smugglers, the legitimate exports
fluctuating regularly with the customs tariff. It is the most important
place in Portugal for the production of raw silk. Lamego, a
picturesque town to the south of the Douro, opposite the Paiz do
Vinho, enjoys a great reputation for its hams; Almeida, which keeps
in check the garrison of Spanish Ciudad Rodrigo, was anciently one
of the strongest fortresses of Portugal; and Vizeu is an important
station between the Douro and the Mondego. Its fairs are more
frequented than any others in Portugal, and in its cathedral may be
seen the famous masterpiece painted by the mythical Gran Vasco.
The herdsmen around Vizéu are noted for their strength and beauty.
Their uncovered heads and bare legs give them an appearance of
savagery, but their manners are as polished and dignified as those of
the rest of their countrymen.
Coimbra (Æminium ), in Beira-mar, is the most populous town
between Oporto and Lisbon. It is known more especially for its
university, whose professors and students impart to it the aspect of
a mediæval seat of learning. The purest Portuguese is spoken there.
The environs are delightful, and in the botanical garden the plants of
the tropics mingle with those of the temperate zones. From the
banks of the Mondego, upon which the city is built, visitors
frequently ascend to the Quinta das Lagrimos (“house of tears”), the
scene of the murder of the beauteous Inez de Castro, whose death
was so cruelly revenged by her husband, Peter the Judge.
Few countries in the world can rival the beautiful valley of the
Mondego, that “river of the Muses” held dear by all the Lusitanians,
because it is the only one which belongs to them exclusively.
Condeixa, a town near Coimbra, fully deserves to be called the
“Basket of Fruit,” for its gardens produce most exquisite oranges. In
the north the ruins of the monastery of Bussaco occupy a mountain
terrace covered with a dense forest of cypresses, cedars, oaks, elms,
and exotic trees. This delightful place and the hot springs of Luso,
near it, are a favourite summer residence of the citizens of Lisbon
and Coimbra.
Figueira da Foz, the port of Coimbra, is well sheltered, but, like
most other ports of Northern Portugal, is obstructed by a bar of
sand. It is nevertheless much frequented by coasting vessels, and
amongst its exports are the wines of Barraida. Ovar and Aveiro, in
the “Portuguese Netherlands,” on the banks of a lagoon separated
by a series of dunes from the high sea, are the two other ports of
this part of the coast. They were important places during the Middle
Ages, but the shifting bars, which render access to them difficult,
have put a stop to their prosperity. The seamen of these two places
have a high reputation for daring. They engage in sardine-fishing,
oyster-dredging, and the manufacture of bay-salt.176 {482}
 III.—T HE V ALLEY OF THE T EJO (T AGUS ).
The lower course of the Tejo, called Tajo in Spain, separates Portugal
into two portions differing much in their general aspect, climate, and
soil. The valley itself is a sort of intermediary between the north and
south, and the vast estuary into which the river discharges itself.
Fig. 197.—C OIMBRA.

Where the Tejo enters Portugal, below the magnificent bridge of

Alcántara, it is still hemmed in between precipitous banks, and is
neither navigable nor available for purposes of irrigation. Having
traversed the defile of Villa Velha do Rodão, its valley gradually
widens, and after having received its most considerable tributary, the
Zezere, it becomes a tranquil stream, abounding in islands and sand-
banks, and is navigable during the whole of the year. Below
Salvaterra the river bifurcates, its two branches enclosing the
marshy island of Lezirias. The vast estuary which begins below this
island is an arm of the sea rather than a river; its waters are saline,
and between Sacavem and Alhandra there are {483} salt-pans. The
Tejo affords one of the most striking instances of a river encroaching
upon its western bank, which is steep and hilly, whilst the left bank
is low.
 Fig. 198.—E STUARY OF THE T EJO (T AGUS ). Μ
Scale 1 : 580,000.

The irregular range of hills which forms the back-bone of the

peninsula enclosed by the Lower Tejo and the ocean is attached to
the mountain of Estrella by a ravined plateau of trifling elevation,
crossed by the railway connecting Coimbra with Santarem. From the
summit of the Serra do Aire (“wind mountain,” 2,222 feet) we look
down upon the verdant valley of the Tejo and the reddish-hued
plains of Alemtejo beyond it. Monte Junto (2,185 feet), farther
south, is another commanding summit. The rocky promontory of
Carvoeiro is joined to the mainland by a sandy beach. Upon it stands
the little fortress of Peniche, whose inhabitants lead a life of
seclusion, and are engaged in the manufacture of lace. A submarine
plateau connects this promontory with Berlinga Island, with an old
castle now used as a prison, and with the Farilhãos, dreaded by
mariners.
The hills on the narrow peninsula to the north of Lisbon are of
small height, but, owing to their rugged character, they present
great obstacles to in­ter­com­mu­ni­ca­tion. It was here Wellington
constructed the famous lines of Torres Vedras, which converted the
environs of Lisbon into a vast entrenched camp. To the south of
these rise the beautiful heights of Cintra, celebrated for their
palaces, shady valleys, delightful climate, and historical associations.
Sheets of basalt, {484} ejected from some ancient volcano, cover the
hills between Lisbon and Sacavem, and the great earthquakes of
1531 and 1755 prove that subterranean forces were then not quite
extinct. The second of these earthquakes was probably the most
violent ever witnessed in Europe. The very first shock destroyed
3,850 houses in Lisbon, burying 15,000 human beings beneath the
ruins; a minute afterwards an immense wave, nearly forty feet in
height, swept off the fugitives who crowded the quay. Only one
quarter of the town, that anciently inhabited by the Moors, escaped
destruction. The Marquis de Pombal erected a gallows in the midst
of the ruins to deter plunderers. From the focus of vibration the
oscillations of the soil were propagated over an immense area,
estimated at no less than 1,000,000 square miles. Oporto was
destroyed in part, the harbour of Alvor in Algarve was silted up, and
it is said that nearly all the large towns of Morocco tumbled into
ruins.
The gully which connects the open ocean with the inland sea of
Lisbon, and through which the Tejo discharges its waters, separates
the cretaceous hills of Cintra from the isolated Serra da Arabida
(1,537 feet), to the west of Setúbal, which belong to the same
geological formation. These two groups of hills were probably
portions of one range at a time when the Tejo still took its course
across what are now the tertiary plains of Alemtejo, and reached the
sea much farther to the south, through the estuary of the Sado.
Lisbon (Lisbõa), though the number of its inhabitants is less than
half what it was in the sixteenth century, exhibits no trace of the
havoc wrought in 1755. Even the central portions of the town have
risen from the ruins, and huge blocks of houses, imposing by their
size, if not by their architecture, have taken the places of the older
structures. The present city extends four miles along the Tejo, but
including its suburbs, between Poco do Bispo and the Tower of
Belem, its extent is nine miles. The city stretches inland a distance of
two or three miles, and, like Rome, is said to be built upon seven
hills. A beautiful promenade connects it with Belem. As seen from
the Tejo, or from the hills opposite, Lisbon, with its towers, cupolas,
and public walks, certainly presents a magnificent spectacle, and
there is some truth in the proverb which says―
“Que não tem visto Lisbõa, Não tem visto cosa bõa !”
(“Who has not seen Lisbon has not seen a thing of beauty.”)
Unfortunately the interior of the superb metropolis does not
correspond with the imposing beauty of its exterior. Lisbon has a
noble square, called Largo do Comercio; it has all the various
buildings which one expects to meet with in the capital of a kingdom
and an important maritime town; but, with the exception of the
chapel of São João Baptista, not one amongst them is remarkable
for its architecture. The only important structure outside the city is
the famous aqueduct Os Arcos das Agoas, which was built by João
V., the Rei Edificador , in the beginning of the eighteenth century,
and sustained no injury during the earthquake of 1755. On
approaching the city it crosses a valley on a superb marble bridge of
thirty-five arches, the highest of which is 246 feet in height.
 LISBON.

Lisbon is relatively poor in interesting monuments, but few towns

can rival it in natural advantages of soil, climate, and geographical
position. Its situation is {485} most central; its harbour, at the mouth
of a navigable river, is one of the most excellent in the world; and its
entrance can be easily defended, the principal works erected for that
purpose being Fort São Julião and the Tower of Bugio.
 Fig. 199.—P ENICHE AND THE B ERLINGAS. Μ
Scale 1 : 142,860.

Lisbon is important not only as regards Portugal, but also, on

account of its position, with reference to the rest of Europe—nay, of
the entire world. As long as the Me­di­ter­ra­nean was the theatre of
human history it remained in obscurity, but no sooner had mariners
ventured beyond the columns of Hercules than the beautiful harbour
at the mouth of the Tejo became one of the principal points of
departure for vessels starting upon voyages of discovery. Lisbon
became the most advanced outpost of Europe on the Atlantic, for it
offered greater facilities than any other port for voyages directed to
the Azores, Madeira, the Canaries, and the western coasts of Africa.
The achievements of Portuguese mariners have passed into history.
Vast territories in every quarter of the globe became tributary to
little Portugal, and it needed the epic force of a Camões to celebrate
these wonderful conquests.
That age of glory lasted but a short time, for proud Lisbon, which
had become known to Eastern nations as the “City of the Franks,” as
if it were the capital of Europe, lost its pre-eminent position towards
the close of the sixteenth century. {486} Portugal capsized suddenly,
like a small barge overcrowded with sails. Crushed by the terrible
reign of Philip II., enervated by luxury, and grown disdainful of
honest labour, as slaveholders always will, Lisbon was constrained to
see much of its commerce and most of its valued colonies pass into
the hands of Spaniards and Dutchmen. But, in spite of these
disasters, Lisbon is still a commercial port of great importance,
although as yet no direct line of railway connects it with Madrid and
the rest of Europe. England occupies the foremost position amongst
the customers of the town, and the Brazilians, whose severance
from the mother country was at first looked upon as an irremediable
disaster, follow next.177 Spain, though it borders upon Portugal for
several hundred miles, scarcely enters into commercial relations with
it. Civil wars have, however, driven many Spanish exiles to Lisbon,
and these have already exercised a considerable influence upon
manners. Formerly only men were to be seen in the streets of
Lisbon, the women being confined almost with the same rigour as in
a Mo­ham­me­dan city, but the example set by Spanish ladies has
found many imitators amongst their Portuguese sisters. The towns in
the immediate vicinity of Lisbon are celebrated for their picturesque
beauties.
 Fig. 200.—M OUTH OR THE T EJO (T AGUS ). Μ
Scale 1 : 162,400.

Portuguese Estremadura, which neither suffers from northern

frosts nor from fogs and aridity, can boast of a climate approaching
that of the fabled Islands of the Happy. At Lisbon snow, or “white
rain,” as it is called, falls {487} rarely, but it may be seen glittering on
the summits of the Serras da Estrella and de Lousão. Its fall near the
sea-coast is looked upon as an evil omen, and a heavy snow-storm,
as recently as last century, frightened the inhabitants of Lisbon to
such an extent that they fancied the day of judgment had come, and
rushed into the churches.
The regular alternation between land and sea breezes is likewise
an advantage possessed by the neighbourhood of Lisbon. From the
beginning of May throughout the fine season the wind blows from
the land in the morning, by noon it has shifted to the south, in the
evening it blows from the west and north-west, and during the night
from the north. Hence its name of viento roteiro ; that is, “rotary
wind.” As to the winds forming part of the regular system of
atmospheric circulation, they blow with far less regularity. The polar
winds, stopped by the transversal mountain ranges of the country,
either follow the direction of the coast or are diverted to the
plateaux of Spain, and make their appearance in Portugal as easterly
winds. It is these latter which render the summer oppressively hot.
At Lisbon the thermometer rises occasionally to 100° F., and in 1798
even 104° were observed. Experience has taught us that although
the heat at Rio de Janeiro is in excess of that of Lisbon, the dog-
178
days at the latter place are more unbearable.
The vegetation of the happy district where the climate of North
and South intermingle is twofold in its aspect. The date-palm makes
its appearance in the gardens of Lower Estremadura; the dwarf palm
grows in the open air along the coast; the agave raises its
candelabra-like branches as on the coast of Mexico; the camellias
are more beautiful than anywhere else in Europe; and the hedges
are composed of prickly cacti (Nopal ), as in Sicily and Algeria. The
fruits of the Me­di­ter­ra­nean ripen to perfection; and even the mango
of the Antilles, only recently introduced, has found a congenial
climate. Oranges are known as portogalli in several countries as far
as Egypt, as if the inhabitants of Portugal had been the first to
whom these golden apples were known; and even the word
chintarah , or chantarah , by which the orange is known in some
parts of India, is supposed to be a corruption of the name of the
Portuguese town of Cintra.
Belem (Bethlehem) is the nearest of the suburban towns of
Lisbon, being separated from it merely by a rivulet named Alcántara,
after an old Moorish bridge. It is the first place beheld by a mariner
approaching Lisbon, and its square tower, built by King John the
Perfect, is seen from afar. It was hence Vasco da Gama started upon
the memorable expedition which taught the Portuguese the road to
India, and a magnificent monastery, now converted into an
educational institution, was built in commemoration of this glorious
event.
Oeiras, at the mouth of a small rivulet coming down from the
heights of Cintra, defends the entrance to the Tejo by means of Fort
São Julião; Carcavellos, noted for its wines, lies farther on; and
Cascães, with a small harbour defended by a citadel, brings us to
the open ocean. The coast beyond this is protected by {488} towers,
but there are no inhabitants. The hills of Cintra, however are one of
the most populous districts of the country, and they are much
frequented by foreigners. Whether we follow the carriage road or
the tramroad from Lisbon, we pass the castles and villas of Bomfica,
the royal palace of Queluz, and the country seats of Bellas, the
fountain of which supplies the capital with water. Cintra itself is
surrounded by hotels and gardens. On a hill to the south of it stands
the sumptuous Castle de la Penha, whose eccentricities of
architecture are softened down by luxuriant masses of vegetation.
Strangers likewise visit the ruins of an old Moorish castle and the
caverns of the “Monastery of Cork,” thus named because its walls
are covered with cork as a protection against damp. The prospect
from all the surrounding heights is magnificent, and most so from
the cliffs terminating in the famous Cabo da Roca, the westernmost
point of continental Europe.
 Fig. 201.—Z ONES OF V EGETATION IN P ORTUGAL. Μ
Scale 1 : 6,000,000.

The city of Mafra occupies a sterile plateau not far from the
seaside resort of Ericeira. Like Cintra, it boasts of an immense
palace, the Escorial of the kings of the house of Bragança, now used
as a military school. João V., who erected this structure, with its
numerous churches, chapels, and cells, expended for that purpose
all the coin he could command, and when he died there was not
enough money left in the treasury to pay for a mass for the repose
of his soul. Far more {489} curious than this immense barrack, with its
5,200 windows, is the forsaken monastery of Alcobaça, about sixty
miles farther north, which was built in the twelfth century to
commemorate the victories over the Moors. Near it stands the
monastery of Batalha, which recalls the defeat of the Castilians in
the plain of Aljubarrota in 1385. The portals, cloisters, chapel, and
chapter-room abound in sculptures of marvellous finish, though of
doubtful taste.
 Fig. 202.—C ASTLE DE LA P ENHA DE C INTRA.

Leiria, the town nearest to Batalha, occupies a fine site at the

confluence of the rivers Liz and Lena, and is commanded by a
Moorish castle, the old residence of King Diniz the “Labourer,” who
planted the pinhal of Leiria, the finest forest in Portugal. After a long
period of decadence this portion of the country has entered upon a
new epoch of activity. At Marinha Grande, near it, there are large
Welcome to Our Bookstore - The Ultimate Destination for Book Lovers
Are you passionate about testbank and eager to explore new worlds of
knowledge? At our website, we offer a vast collection of books that
cater to every interest and age group. From classic literature to
specialized publications, self-help books, and children’s stories, we
have it all! Each book is a gateway to new adventures, helping you
expand your knowledge and nourish your soul
Experience Convenient and Enjoyable Book Shopping Our website is more
than just an online bookstore—it’s a bridge connecting readers to the
timeless values of culture and wisdom. With a sleek and user-friendly
interface and a smart search system, you can find your favorite books
quickly and easily. Enjoy special promotions, fast home delivery, and
a seamless shopping experience that saves you time and enhances your
love for reading.
Let us accompany you on the journey of exploring knowledge and
personal growth!

ebooksecure.com