Center for Supply Chain Management: April 2014

Volume 12 Number 4 April 2014

Center for Supply Chain Management John Cook School of Business Saint Louis University NEWSLETTER

INSIDE THIS ISSUE Center Ranks 13th in the U.S. April Professional Development Programs Save The Dates Center News Photo Gallery Center Organization and Board Members Center for Supply Chain Office

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The Center Ranks #13 in the Country

The U.S. News & World Report published the rankings of supply chain management programs in the country. The Center for Supply Chain Management Studies (CSCMS) at Saint Louis University is ranked No. 13 (moved from #16 in 2013). Faculty, Advisory Board, alumni of the various programs, and staff at the Center work tirelessly in improving the quality of the programs (academic as well as training programs) last 13 years. Student’s inputs have been immediately reflected to our strategic plan and implemented making our students feel relevant and important agents of our program.

Our goal is to push our program to top 10 in the country. Such target is very ambitious goal for organization which has only 15 years of history. However, the Advisory Board is committed to make our programs relevant and timely. Furthermore, they also committed to help us to place every graduate from the programs find challenging positions with 6 months period upon their graduation.

According to U.S. News & World Report, the following weights were used in ranking the supply chain management programs in this country:

• Quality of program (40%) • Placement success (35%) • Student selectivity (25%)

April Professional Development Courses

Title: Sales & Operations Planning Date: April 4, 2014 Instructor: Tony Handiz-­‐Smith Brief Description: Sales and operations planning (S&OP) is an integrated business management process developed in the 1980s by Oliver Wight through which the executive/leadership team continually achieves focus, alignment and synchronization among all functions of the organization.

Cost: $560 Where: The John Cook School of Business, Cook Hall classroom CK 230

Title: Transportation and Warehouse Management Date: April 10 & 11, 2014 Instructor: Tom Goldsby, Ph.D. Ohio University 2

Brief Description: Transportation is the movement of and goods from one location to another.

Modes of transport include air, rail, road, water, cable, pipeline and space. The field can be divided into infrastructure, vehicles and operations. Warehouse management involves the receipt, storage and movement of goods, (normally finished goods), to intermediate storage locations or to a final customer

Cost: $1,120 Where: The John Cook School of Business, Cook Hall classroom CK 230

Title: Certificate in Product Safety Management Date: April 22 & 23, 2014 Instructors: Team Based Brief Description: The Certificate in Product Safety Management is a four month course divided

into three phases.

Phase I: The course opens at the Cook School of Business with a two day workshop that provides students with insights into the elements that make up a robust product safety program within a company, including compliance, risk assessment, hazard analysis, supply chain management, and government regulatory relationships.

Phase II: Bi-­‐weekly webinars are held on the programs distance learning platform. Different topics presented by experts in the field include: international product safety management, product safety in retailing, forensic analysis of defective products, product recall management, and issues and trends in product safety.

Phase III: The course closing workshop takes place August 5 & 6. Students have each developed a case study relevant to product safety within their company over the four month period of the course. Each student presents their case study to the class and gets feedback. This case study serves as the "final exam" for the course. The program concludes with a senior official of the U.S. Consumer Product Safety Commission joining us for an update of the agency, and to help present certificates to our graduates.

Instructors: Attorneys instructing on compliance include Michael Brown of the Gidding Law Firm, and Belinda May of Dentons. Former Commissioner Nancy Nord of the U.S. Consumer Product Safety Commission (CPSC) will discuss her tenure with the federal agency that has responsibility for assuring product safety in over 15,000 consumer products. Carol Kraege, who coordinates the Washington State Toxin Policy program will speak on chemical regulation at the state level. Dennis Blasius, director of field operations for the CPSC, explains how the agency conducts field investigations of potentially defective products. Sue DeRagon of UL will address risk assessment. Center faculty member Bob Drury will address Supply Chain Management and Product Safety.

Cost: $4,500 for entire workshop (four-­‐day class engagement and eight bi-­‐weekly webinars) Where: The John Cook School of Business, Cook Hall classroom L27

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Title: Reducing and Mitigating Variability in the Supply Chain Date: April 25, 2014 Instructor: Justin Goodson, Ph.D. Saint Louis University Brief Description: Variability is the underlying source of many challenges in supply chain operations. From daily fluctuations in demand to large-­‐scale supply chain disruptions, variability is the dominant cause of mismatches between supply and demand. In this course, we examine the influence of variability throughout the supply chain, from its impact on simple processes to its effect on complex networks

Cost: $560 Where: The John Cook School of Business, Cook Hall classroom CK 230

*Member organizations receive 10-­‐30 percent tuition discount.

Online registration link:

Save-­‐the-­‐Dates

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May16, 2014: Research Project Review and Presentation May 22, 2014: Integrated Supply Chain Management Fall 2013 and Spring 2014 Awards Ceremony and Reception

Member discounts ranging from 10-­‐30 percent are available to Center members for our programs

Center News

Food for Thought

“Latest trends in logistics point toward automation”

By Nadine Miller February 06, 2014 (appeared in ISM NewsLetter)

Local and global logistics have become increasingly complex, and the systems needed to handle that complexity have also grown.

More and more companies depend on third-­‐party logistics (3PL) providers to offer the data analysis and warehouse, transportation and financial management systems needed to keep products flowing smoothly from manufacturer to consumer. In 2013, companies implemented more automation in both hardware and software to increase productivity and reduce error rates.

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The trend toward automation will continue in 2014, along with some additional logistics programs that will enable increased agility and responsiveness to the customer. Here is a look at five logistics trends for the next year:

1. Integrated warehouse management systems Smaller retail spaces for big box stores means more dependence on warehouses and rapid shipping. Customers expect products delivered faster than ever, in part because some companies routinely manage two-­‐ to three-­‐day delivery times.

Integrated warehouse management systems allow real-­‐time tracking of all product — both in the warehouse and on the road. Warehouses need to know exact amounts of product on-­‐hand, where every order is in the shipping process and any delays that may impact a client. These 3PL provided systems also positively impact loss prevention.

2. Increased security expenditures According to BlueStar manager Randy Smith, only 40 percent of warehouses currently have video surveillance. Of those, 70 to 80 percent run on analog systems.

Price drops on IP cameras and the convenience of network access make the switch to digital a necessity. Higher resolution offers better images for better loss prevention and documentation in the event of a workplace accident. Estimated warehouse shrinkage now sits at the $80 billion mark, making avoiding product losses a major factor in reducing overhead costs.

3. Move toward a single-­‐system solution Incorporating transportation management into existing warehouse management systems will allow improved multicarrier shipment controls through the entire 3PL supply chain. It also allows for automated shipment calculation, leading right into an integrated financials and billing solution.

Tracking costs of interline carrier partners, tariffs and other expenses allows companies to offer ad hoc quotations. By keeping systems tight and talking to each other, warehouse management becomes a single, finely-­‐tuned system that tracks all parts and pieces.

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4. Adding labor management functionality to existing WMS Cut the overhead is a repeating refrain for warehouses everywhere. Labor costs typically carry the single highest line item in any warehouse budget. Given that, identifying the areas of low productivity can help cut down on that line.

In some cases, simply notifying employees that productivity tracking is in effect produces gains of 5 percent. Implementing performance standards can increase productivity another 10 to 15 percent, funding performance-­‐based incentives which increase productivity again.

5. Mitigating supply chain risks The Business Continuity Institute recently reported that more than 75 percent of business faced a disruption in their supply chain during 2012. Of these, 42 percent indicated the failure occurred further down the supply chain.

Losses from these disruptions hit over $1.3 million for 15 percent of the survey respondents. This kind of risk can be managed through the use of a 3PL company.

Increased visibility on the entire supply chain allows shippers to respond to disruptions and deploy alternate shipping methods as needed.

Ultimately, logistics trends for 2014 will continue to focus on reducing overhead costs, increasing productivity, minimizing loss and integrating all management systems into one, scalable product. The move to 3PL companies will continue, as more warehouses face the challenges of global logistics management.

Center Programs and Registration

You can access the full range of programs and register at enter at the Center for Supply Chain Management Studies – A Center of Distinction.

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Photo Gallery

Strategic Sourcing – Kevin Von Grabe

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SCOR Workshop Instructor Mitch Millstein and USTRANSCOM students 8

Center Organizations & Board Members AEP River Operations Ameren Services

Anheuser-­‐Busch/InBev Asynchrony

The Boeing Company

Cassidy Turley Company Cass Information Systems Emerson Company Energizer Hodgson Mill Mallinckrodt Pharmaceuticals Mesa Logistics Monsanto Company Nordyne, Inc. Novus International, Inc. Nestle Purina Pet Care Peabody Energy ROi

Saint Louis University Underwriter Laboratories UniGroup, Inc. World Wide Technology Ex-­‐Officio

Mr. George Piccioni Mr. Dennis Weisenborn & Mr. Mark Brandt Mr. Gary Welker Mr. Bob Elfanbaum Mr. David Thole, Mr. Steve Georgevitch, & Ms. Joann Franke Mr. Ed Lampitt Mr. Frank Cirimele Mr. Al Middeke & Mr. Joe Ackerman Mr. Jeroen Kanter Mr. Ray Martin Mr. George Morrison Mr. Frank Fischer Mr. Kevin Lawrence Mr. Bob Bielecki Mr. Kevin Mowery Mr. Marty Tendler & Mr. Pete Spanos Mr. Carlton Adams Ms. JoAnne Levy Dr. John Hamilton Mr. August (Gus) Schaefer Mr. Tom Duwel Mr. Kurt Grimminger Dr. Ik-­‐Whan Kwon

Honorary Members Mr. Bob Drury, Mr. Gerald Hayden, Mr. Jim Kavanaugh, Mr. Tom Olson

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Center for Supply Chain Management Office Scott Safranski, Ph.D., Interim Dean Ik-­‐Whan G. Kwon, Ph.D., Director John W. Hamilton, Ph.D., Associate Director Mrs. Dawn DeLaria, Administrative Assistant

Center for Supply Chain Management John Cook School of Business Saint Louis University 3674 Lindell Blvd. DS 458 Saint Louis, Mo 63108 http://cscms.slu.edu Phone: (314) 977-3617 Fax: (314) 977-2068 Email: cscms@slu.edu

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