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Supply Chain Management 1 SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008 Marsha J. Loges Assistant Professor MAN Department 937 512-3309

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Presentation on theme: "Supply Chain Management 1 SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008 Marsha J. Loges Assistant Professor MAN Department 937 512-3309"— Presentation transcript:

1 Supply Chain Management 1 SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008 Marsha J. Loges Assistant Professor MAN Department 937 512-3309 marsha.loges@sinclair.edu

2 Supply Chain Management 2 Supply Chain

3 Supply Chain Management 3 Careers in Acquisition/SCM Contents Introduction What is a Supply Chain and why does it need to be managed? What is Acquisition/SCM? What are the Regional Needs? What are the SCM Career Opportunities? What are the SCC SCM Program Options? Questions and Answers

4 Supply Chain Management 4 What is a Supply Chain? Why does it need to be managed?

5 Supply Chain Management 5 Typical Supply Chains PURCHASINGReceivingStorageOperationsStorage DISTRIBUTION Supplier Storage } Mfg.StorageDistrib.RetailerCustomer PRODUCTION

6 Supply Chain Management 6 Alcoa Ball Corp Cola Bottling Co.M&M Meijer First Tier Supplier DistributorRetailer Transportation companies Final customers UpstreamDownstream Alcoa Second Tier Supplier Supply Chain Flow

7 Supply Chain Management 7 Consider your raisins...

8 Supply Chain Management 8 Raisins Supply Chain Materials/Supplies: Seeds, plants, fertilizers, pesticides, water, + Irrigation systems, planting/harvesting tools, farming vehicles, carts, + Paper, cans, cartons, crates, pallets, dyes, + Services: Agricultural specialists, technical services, equipment maintenance, marketing, monitoring, quality control, planning/forecasting, packaging/printing, + Product Distribution: Packaging, Transportation, Warehousing, Wholesale and Retail Distribution

9 Supply Chain Management 9... Every link in the Supply Chain must be managed. From the grape vineyards, to the drying fields, to the processors... To the distributors, to the wholesalers, to the grocery shelves... To the consumers...

10 Supply Chain Management 10... Every link in the Supply Chain must be managed… … For every company, in every industry. Every Business has a Supply Chain…

11 Supply Chain Management 11 What is Acquisition/SCM?

12 Supply Chain Management 12 What is Acquisition/SCM? SCM relates to movement of goods between suppliers, manufacturers, consumers Fundamental processes and practices necessary for efficiency Goal of SCM: To positively impact the organizations bottom-line while delivering the best goods & service to customers at the lowest possible cost SCM is integral to success of all business operations Narrowly defined, Acquisition relates to research, development, and procurement of military systems Broadly defined, Acquisition includes getting the right product, to the right place, at the right time, at a reasonable cost

13 Supply Chain Management 13 Acquisition/SCM Objectives Objectives of SCM: - Provide an uninterrupted flow of materials, supplies, services required to operate the organization - Keep inventory investment and loss at a minimum - Maintain and improve quality - Find or develop competent suppliers - Standardize, where possible, the items bought - Purchase required items, services at lowest total cost - Achieve productive working relationships with other functional areas within the organization - Accomplish purchasing objectives at lowest possible level of administrative costs - Improve organizations competitive position Source: Leenders, Michiel R., Fearon, Harold E., Flynn, Anna E., and Johnson, P. Fraser, Purchasing and Supply Management, 12th edition, McGraw-Hill, Boston, 2002.

14 Supply Chain Management 14 Acquisition/SCM Processes Processes for coordinated supplier-to-consumer systems – Identifying needs for raw materials, supplies, components, systems – Developing specifications, performance requirements – Computing quantity requirements – Selecting sources and negotiating agreements/contracts – Acquiring, transporting, and storing inventory – Managing and maintaining operations – Managing logistics

15 Supply Chain Management 15 What can SCM do?

16 Supply Chain Management 16 What are the Regional Needs?

17 Supply Chain Management 17 I70/I75 90-MINUTE MARKET x

18 Supply Chain Management 18 Acquisition/SCM Regional Needs Regional work force needs driven by private and public sector influences DoD presence at WPAFB - Requires government employees and support contractors - Specialized knowledge of all facets of acquisition and logistics "90 Minute Market" reach of Interstate 70/75 commerce corridor - Requires industry specialists - Expertise in all aspects of supply chain management

19 Supply Chain Management 19 Acquisition/SCM Regional Needs (continued) Driven by DoD needs, Greater Dayton area has major concentration - Over 6,000 professionals in various areas of SCM - Both private and public sectors Other public agencies, private businesses require SCM expertise - Procurement, shipping, trucking, order fulfillment, warehousing Ohio has nations sixth largest civilian workforce in these professions - Responsible for procuring goods and services - Assuring global delivery to the U.S. military whenever needed

20 Supply Chain Management 20 Acquisition/SCM Regional Needs (continued) DoD data indicate 50% of civilian workforce eligible to retire - Local market need is critical to train and retain SCM professionals Regional economic development associated with I 70/75 commerce - Drives growth in need for industry SCM specialists

21 Supply Chain Management 21

22 Supply Chain Management 22 What are the SCM Career Opportunities?

23 Supply Chain Management 23 Acquisition/SCM Career Fields Specialized area; growing in importance - Strategic challenges for businesses - Consumer expectations, industry advancements, global competition Varied duties may include: - Acquisition of materials, services and equipment - Planning and policymaking - Product development and control - Contract development and forecasting - Production planning and scheduling - Warehousing and distribution Source: Burt, David N., Dobler, Donald W., and Starling, Stephen L., World Class Supply Management: The Key to Supply Chain Management, 7 th Edition, McGraw-Hill, Boston, 2003.

24 Supply Chain Management 24 DoD Acquisition Career Fields Auditing Business, Cost Estimating, and Financial Mgt Contracting Facilities Engineering Industrial/Contract Property Management Information Technology Life Cycle Logistics Production, Quality and Manufacturing Program Management Purchasing Systems Planning, Research, Development and Engineering - Science & Technology Manager Systems Planning, Research, Development and Engineering - Systems Engineering Test and Evaluation

25 Supply Chain Management 25 Acquisition/SCM Private Sector Career Fields Accounts management Contracts management Contract negotiation Cost projection Distribution Facilities management Financial management Forecasting Inventory management Logistics management Maintenance management Materials management Manufacturing management Operations management Packaging management Procurement Product development Production management Production planning Purchasing Quality control Requirements forecasting Research and development Supply management Transportation Warehousing

26 Supply Chain Management 26 Acquisition/SCM Salary Information - DoD DoD Acquisition/SCM Positions Step 1Step 3Step 10 Entry LevelGS-04 $ 26,170$ 27,914$ 34,017 GS-05 $ 29,279$ 31,231$ 38,062 ProgressionGS-07 $ 36,269$ 38,687$ 47,150 GS-09 $ 44,364$ 47,321$ 57,672 GS-11 $ 53,677$ 57,256$ 69,782 GS-12 $ 64,335$ 68,625$ 83,639 Management/ ProfessionalGM-13 $ 76,505$81,606$ 99,459 GM-14 $ 90,405$ 96,431$117,524 GM-15 $106,343$113,432$138,245 Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans Source: www.fedjobs.com/pay/pay 2007 General Schedule Base Pay + Locality

27 Supply Chain Management 27 Acquisition/SCM Salary Information - Private Sector Acquisition/SCM Professionals Average Salary Top 20 % $ 78,470 $100,000 or > Average SalaryExperience $ 65,389 1- 5 years $ 67,996 6 - 10 years $ 77,187 11 - 20 years $ 95,900 21 + years Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

28 Supply Chain Management 28 Average Salary – Purchaser Private Sector Purchasers, 3 or < years experience$ 54,600 Purchasers, BS/BA in Business$ 69,000 Purchasers, BS/BA in Technical Field$ 70,900 Purchasers, CPM Certification$ 80,000 Purchasers, MBA$ 91,900 Source: Purchasing, December 2003

29 Supply Chain Management 29 Acquisition/SCM Average Salaries - Private Sector Chief, Purchasing/Supply Management/Sourcing $161,082 VP, Purchasing/Supply Management/Sourcing $158,256 Director, Purchasing/Supply Management/Sourcing$120,401 Manager, Purchasing/Supply Management/Sourcing $ 80,519 Agent, Buyer, Senior Buyer, Planner, Purchaser $ 57,081 Consultant $112,100 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

30 Supply Chain Management 30 Acquisition/SCM Salary Influenced by Education In general, salary levels increase with educational level Bachelors degree or higher - Typically higher than overall average - Average - $79,368 Masters degree - 25 % higher than Bachelors - Average - $99,373 All degree holders - Average salaries highest in technical degree fields - Average - $93,977 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

31 Supply Chain Management 31 Acquisition/SCM Salary Influenced by Certifications With one or more professional certifications - Higher average salary $80,758 vs. $76,411 With Certified Purchasing Manager (CPM) certification - Average salary 10 % higher $83,172 vs. $75,337 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

32 Supply Chain Management 32 Acquisition/SCM Salary Influenced by Location Location - Average salaries vary by location - Wash. D.C. area - average $103,036 - North Carolina area - average $93,791 - Illinois area – average $93,752 - Other states with average > $80,000 Ohio, California, Connecticut, Georgia, Iowa, Massachusetts, Maryland, New Jersey, New York, Texas, Virginia - Other states with average < $60,000 Arkansas, Oklahoma, South Carolina. Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

33 Supply Chain Management 33 Acquisition/SCM Skills Needed Benchmarking Contract development Contract management Cost/price analysis Distribution Economic forecasting Electronic commerce Inventory control Logistics Purchasing Negotiations New technology/software Performance measurements Project management Relationship management Strategic alliances Strategic planning Supplier evaluation Team building Transportation and traffic Source: www/ism.ws/careercenter

34 Supply Chain Management 34 Acquisition/SCM Professions - Education Options Associate: - Business (general) - Purchase/Supply Mgt - Logistics - Operations Mgt - Technical Bachelor: - Business (general) - Purchase/Supply Mgt - Supply Chain Mgt - Logistics - Materials Mgt - Distribution - Transportation - Liberal Arts - Technical Graduate Degree: - MBA - MS (technical field) - Logistics - Law Combination: - Technical Undergrad w/ Graduate in Bus Source: www/ism.ws/careercenter

35 Supply Chain Management 35 A.A.S. GBM - SCM Concentration WHAT IS THE SCM TARGET MARKET? College students seeking degree/career studies Including Tech Prep students Entry-level/mid-level public and private industry personnel seeking additional/advanced career studies Displaced entry-level/mid-level private industry personnel seeking new career studies DoD military and civilian personnel seeking acquisition studies DoD contractor support personnel seeking acquisition studies

36 SCM WORK FORCE SUPPLY SCM WORK FORCE SUPPLY BOTTOM-UP (ENTRY LEVEL) EXECUTIVE EDUCATION CAREER CHANGE ADVANCED EDUCATION BOTTOM-UP (ENTRY LEVEL) TRADITIONALTODAYS NEEDS

37 Supply Chain Management 37 What are the SCC SCM Program Options?

38 Supply Chain Management 38 A.A.S. GBM - SCM Concentration WHAT IS THE SCM CONCENTRATION? AAS Bus Mgt, SCM Concentration Degree Program – 103 credit hrs SCM 1-Year Certificate Program – 47 credit hours SCM Short-Term Certificate Program – 18 credit hours

39 Supply Chain Management 39 A.A.S. GBM - SCM Concentration WHAT ARE THE SCM COURSES? Seven SCM Courses Prerequisites MAN 241, Intro to SCM MAN 242, Advanced SCM MAN 241 and MAT 116 or 121 MAN 243, Materials Management MAN 241 MAN 244, Negotiation Techniques MAN 205 or MAN 241 MAN 247, DoD Systems Acquisition Mgt MAN 248, DoD Acquisition Logistics MAN 247 MAN 251, Logistics Management MAN 205 Two potential future SCM Courses MAN 240, Services Management TBD MAN 249, DoD Systems Sustainment Mgt MAN 248

40 Supply Chain Management 40 AAS Bus Mgt, SCM Concentration Degree Program – 103 credit hrs

41 Supply Chain Management 41 A.A.S. GBM - SCM Concentration 1 st QTR CURRICULUM CourseTitleCr Hrs 1st QTR MAN 105Intro to Business3 MAN 201Intro to Supervision3 COM 206Interpersonal Communications3 ENG 111 or ENG 131 English Composition I or Business Communication I3 MAT 116 or MAT 121 College Algebra or Business Math5 Total17

42 Supply Chain Management 42 A.A.S. GBM - SCM Concentration 2 nd QTR CURRICULUM CourseTitleCr Hrs 2nd QTR MAN 205Principles of Management3 ACC 121Principles of Financial Accounting5 BIS 160Intro to Word, PowerPoint, Excel3 ENG 112 or ENG 132 English Composition I or Business Communication I3 MAT 122Statistics I4 Total18

43 Supply Chain Management 43 A.A.S. GBM - SCM Concentration 3 rd QTR CURRICULUM CourseTitleCr Hrs 3rd QTR MAN 225Human Relat & Organizational Behav3 MAN 241Intro to Supply Chain Management3 ACC 122Principles of Managerial Accounting5 ECO 216Principles of Macroeconomics4 MRK 201Marketing I3 Total18

44 Supply Chain Management 44 A.A.S. GBM - SCM Concentration 4 th QTR CURRICULUM 19Total CourseTitleCr Hrs 4th QTR MAN 216Managing Operations3 MAN 242Advanced Supply Chain Management3 MAN 243 or MAN 247 Materials Management or DoD Systems Acquisition Management3 MAN 255Management Information Systems I3 ECO 218Principles of Microeconomics4 MRK 202Marketing II3

45 Supply Chain Management 45 A.A.S. GBM - SCM Concentration 5 th QTR CURRICULUM CourseTitleCr Hrs 5th QTR MAN 110Intro to International Business3 MAN 210Intro to Project Management3 MAN 244Negotiation Techniques3 MAN 295Management Seminar3 LAW 101Business Law I4 Total16

46 Supply Chain Management 46 A.A.S. GBM - SCM Concentration 6 th QTR CURRICULUM CourseTitleCr Hrs 6th QTR MAN 251 or MAN 248 or MAN 260 Logistics Management or DoD Acquisition Logistics or Management Science I3 MAN 270 or MAN Elective Management Internship or MAN Elective3 MAN 278Management Capstone3 COM 211Effective Speaking I3 HUM Elective 3 Total15

47 Supply Chain Management 47 SCM 1-Year Certificate Program – 47 credit hours

48 Supply Chain Management 48 SCM One-Year Certificate 1 st QTR CURRICULUM CourseTitleCr Hrs 1st QTR MAN 241Intro to Supply Chain Management3 BIS 160Intro to Word, PowerPoint, Excel3 COM 206 or COM 211 Interpersonal Communications or Effective Public Speaking3 ENG 111 or ENG 131 English Composition I or Business Communication I3 LAW 101Business Law I4 Total16

49 Supply Chain Management 49 SCM One-Year Certificate 2 nd QTR CURRICULUM CourseTitleCr Hrs 2nd QTR MAN 110Intro to International Business3 MAN 205Principles of Management3 MAN 242Advanced Supply Chain Management3 ENG 112 or ENG 132 English Composition II or Business Communication II3 MAT 122Statistics I4 Total16

50 Supply Chain Management 50 SCM One-Year Certificate 3 rd QTR CURRICULUM CourseTitleCr Hrs 3rd QTR MAN 216Managing Operations3 MAN 243 or MAN 247 Materials Management or DoD Systems Acquisition Management3 MAN 244Negotiation Techniques3 MAN 255Management Information Systems3 MAN 251 or MAN 248 or MAN 260 Logistics Management or DoD Acquisition Logistics or Management Science I3 Total15

51 Supply Chain Management 51 SCM Short-Term Certificate Program – 18 credit hours

52 Supply Chain Management 52 SCM Short-Term Certificate CURRICULUM CourseTitleCr Hrs 1st QTR MAN 241Intro to Supply Chain Management3 MAN 205Principles of Management3 Total6

53 Supply Chain Management 53 SCM One-Year Certificate CURRICULUM CourseTitleCr Hrs 2nd QTR MAN 242Advanced Supply Chain Management3 MAN 243 or MAN 247 Materials Management or DoD Systems Acquisition Management3 Total6

54 Supply Chain Management 54 SCM One-Year Certificate CURRICULUM CourseTitleCr Hrs 3rd QTR MAN 244Negotiation Techniques3 MAN 251 or MAN 248 or MAN 260 Logistics Management or DoD Acquisition Logistics or Management Science I3 Total6

55 Supply Chain Management 55 The Power of SCM

56 Supply Chain Management 56 Careers in Acquisition/SCM Conclusion Valuable career opportunities in Acquisition/SCM Increasing demand in both public and private sectors Attractive salaries and benefits Opportunities for continuing career advancement Wide variety of associated specialty skills areas Numerous educational options available


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