The Logistics of Success Dan Gilmore Editor Supply Chain Digest.

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Presentation transcript:

The Logistics of Success Dan Gilmore Editor Supply Chain Digest

Copyright SCDigest About Supply Chain Digest Opinion. Perspective. News that Matters. "Of all the articles I get bombarded with, SCDigest will typically stand out with useful, thought provoking insight. " Kerry Loudenback Director, Supply Chain Optimization Ingram Micro North America visit or subscribe today! SupplyChainDigest is rapidly becoming the portal of choice for the supply chain and logistics executive. " Ralph Drayer Former Chief Logistics Officer Procter & Gamble

Logistics Versus Supply Chain Some use the terms almost interchangeably Most think Logistics is a subset of Supply Chain Management Logistics: Management of goods while in motion or at rest Supply Chain Management is more comprehensive scope Copyright SCDigest

Defining SCM Copyright SCDigest

Defining SCM Copyright SCDigest SCOR Model

Definition is Expanding Dr. John Gattorna: SCM is a combination of processes, functions, activities, relationships and pathways along which products, services, information, and financial transactions move in and between enterprises, in both directions. Sounds a like what used to be called Operations The Difference: Its about the Links or the Network Copyright SCDigest

My Favorite Concept Copyright SCDigest

Huge Percent of Product Company Costs Copyright SCDigest 60-90% of Total Costs is Common Even Service Industries now looking at their Supply Chains

Significant Percent of Overall US Costs Copyright SCDigest

The Impact of Globalization Copyright SCDigest Puts New Premium on Logistics Excellence

Copyright SCDigest

Nike ID Shoes Journey Copyright SCDigest

Reaching Emerging Markets Where the Sales growth will come from Infrastructure, capabilities, laws, vary dramatically across Countries Result: 190+ Supply Chains Leading global companies already managing at this level Copyright SCDigest

This Takes Talent – and Lots of It Demand for top supply chain talent will exceed the supply for at least the next 10 years. National Association of Colleges and Employers found that 48% of US companies plan to snap up supply chain and logistics grads in 2011 Salaries on rise at all levels Copyright SCDigest Dave MacEachern Spencer Stuart

New Skills Sets Required From technical to business skills From doing to influencing Communications Supply chain finance Copyright SCDigest

The Cons of a Supply Career Relentless pressure to reduce costs Not often a route to the top -Changing? Lots of outsourcing Copyright SCDigest Lee Scott Former WalMart CEO

The Path to get There Most professionals today moved into supply chain career path by accident Changing with aggressive university education program development Growing number of undergrad programs Copyright SCDigest

Impact on US and State Competitiveness Copyright SCDigest

Great Companies and Programs in Ohio Companies Procter & Gamble Limited Brands Kroger Wright Patterson Air Force Base Exel Logistics FKI Logistix Supply Chain Digest? Universities Ohio State Miami University Wright State University of Dayton Sinclair College Etc. Copyright SCDigest

Summing it Up Supply chain management and logistics are disciplines that make companies and the world run –Increasingly a board room issue Very attractive career path At the heart of Sustainability Critical component and US and State effectiveness and cost of doing business that must be developed Copyright SCDigest