Center for Supply Chain Management: August 2014

Volume 12 Number 8 August 2014

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

INSIDE THIS ISSUE 2014 Fall Professional Development Course Schedule Save The Dates Center Programs and Registration Center News - Food for Thought Coming Soon --- New CSCMS Distance Learning Option Center Organization and Board Members Center for Supply Chain Office

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Fall 2014 Professional Development Program Schedule

Topic

Instructor(s)

Date(s)

Project Management

Ray Scott

SCM 101 and Financial Impact

Ik-­‐Whan Kwon, Ph.D.

Note: Required for all Integrated SCM students. Free for CSCMS members.

August 7-­‐8 August 21

Supply Chain Simulation and Project Management

Managing Inventories for Increased Profitability

Strategic Sourcing and Supplier

Relationship Management

Managing Transportation & Warehousing

Research Project Presentation

Electives – two 8 hour courses

Supply Chain Trade Compliance

Reducing SCM Variability

Risk Management – On-­‐line

Ray Scott

John Hamilton, Ph.D.

August 22

Ray Scott

September 25-­‐26

TBD

October23-­‐24

Tom Goldsby, Ph.D.

November 20-­‐21

Frank Fischer

John Hamilton, PH. D.

December 12

N/A

Mark Baxa

CSCMS approved

September 11-­‐12

Justin Goodson, Ph.D.

October 10

Dana Hullinger

November 1

Save-­‐the-­‐Dates

Subject: Supply Chain Trade Compliance Date: September 11-­‐12, 2014 Instructor: Mr. Mark Baxa Brief Description: International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a 2

significant share of gross domestic product (GDP). Expanded international trade has economic, social, and political importance.

Trade compliance and conformance with international law has become more complex.

The multiple points of failure across a global supply chain a compliance-­‐related issue can bring eg. Delayed shipments, fines, penalties, seizures and a negatively affect a company’s reputation Cost: $1,200 Place: CK230 John Cook School of Business, Saint Louis University

Subject: Managing Inventory for Increased Profitability Date: September 25 and 26, 2014 Instructor: Mr. Ray Scott Brief Description: Inventory management is a science primarily about specifying the shape and percentage of stocked goods. It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials.

Management of the inventories, with the primary objective of determining/controlling stock levels within the physical distribution system, functions to balance the need for product availability against the need for minimizing stock holding and handling costs.

Cost: $1,200 Place: CK230 John Cook School of Business, Saint Louis University

Subject: Advanced Product Safety Program Date: Sept. 22 – Sept. 26, 2014 Instructors: Multiple Professionals Brief Description: A week-­‐long executive style management course for product safety managers and engineers with five years or more experience, this course deals with how to manage in a constantly changing domestic and international environment. Topics include managing compliance and regulatory responsibilities, risk assessment and hazard analysis best practices, managing an international program and supply chain infrastructure, measuring company performance in sustainability and product safety practices, social media strategies and brand protection, and economic and data management.

Cost: Please contact Don Kornblet: dkornblet@adkprg.com or Linda Tyler: ltyler@adkprg.com.

Place: L27 John Cook School of Business, Saint Louis University 3

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. Center discounts for members range from 10-­‐30 percent based membership level.

Center News -­‐ Food for Thought

Coming Soon -­‐-­‐-­‐ New CSCMS Distance Learning Options

Distance learning is a mode of delivering education and instruction, often on an individual basis, to students who are not physically present in a traditional setting such as a classroom. Distance learning provides "access to learning when the source of information and the learners are separated by time and distance, or both. Distance education courses that require a physical on-­‐site presence for any reason (including taking examinations) are referred to as blended courses.

The Center will introduce several distance learning courses in the fall of 2014 and spring of 2015. The initial courses will not be blended. These new options will provide Center students and others with new opportunities to enhance their professional skills in supply chain management and related areas. Look for more information in future newsletters and Center announcements.

Five Strategies for Improving Inventory Management across Complex Networks

1. Get Much More Granular with Safety Stock Management 4

2. Add Inventory Planning to the S&OP Process 3. Make Regular Use of Supply Chain Network Optimization Tools for Tactical Planning Consider Distributed Order Management Tools to Manage Multi-­‐Channel Complexity 5. Step Up to Inventory Optimization Software Source: CSCI Insights June 11,

State of Logistics Report

The highly anticipated 2013 “State of Logistics” report, compiled by analyst Rosalyn Wilson and presented by Penske and the Council of Supply Chain Management Professionals (CSCMP), describes last year’s logistics environment as uneven. After a slow start to 2013, mid-­‐year shipments were strong before a very deep dive at the end of the year with not much movement in freight rates across the modes.

But the picture appears much brighter for this year, with Wilson predicting 2014 to be the best year in the past eight. So far in the first five months this year, freight shipments are up 13.1 percent year-­‐over-­‐year with payments up 13 percent and higher rates and capacity problems looming, she said.

U.S. business logistics costs rose 2.3 percent in 2013, a significant drop from the 3.4 percent rise in 2012, the report says. Business logistics costs increased to $1.39 trillion, up $31 billion from 2012. In 2013, logistics costs as a percent of the nominal Gross Domestic Product (GDP) declined to 8.2 percent. This means that the freight logistics sector was growing at a slightly slower rate than GDP, Wilson said.

Inventory carrying costs and transportation costs rose slightly last year. Inventory carrying costs increased 2.8 percent. Transportation costs were up only 2 percent in 2013 because of weaker shipment volumes and a lack of growth in rates.

“2013 was a much more complicated year from a purely economic point of view,” Wilson said in releasing the SoL report entitled “Ready for a New Route” on June 11 at the National Press Club in Washington. “It (2013) was not a stellar year for the economy, but freight did not always mirror the economy.”

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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. Fred Perreand & Mr. Joe Ackerman Mr. Jeroen Kanters Mr. Ray Martin Mr. George Morrison Mr. Frank Fischer Mr. Mario Morhy 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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