Center for Supply Chain Management: May 2014

Volume 12 Number 5 May 2014

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

INSIDE THIS ISSUE New Emerson Board Member.

Regualtory Compliabce Workshop May Professional Develop Courses Save The Dates Center News Photo Gallery Center Organization and Board Members Center for Supply Chain Office

2 3 3 4 4 7 9 10

1

New Board Member from Emerson

The Center is pleased to announce that Mr. Fred Perreand from Emerson has been invited to serve on the Center’s Advisory Board.

He is replacing Mr. Al Middeke who stepped down from his position with Emerson to pursue supply chain projects in the private sector.

Fred Perreand has worked for Emerson since 1999. He is currently the Vice President of Supply Chain for Emerson’s Industrial Automation and Commercial and Residential Solution Business Groups. He is responsible for leveraging global material sourcing and logistics to improve service levels, operating profit and cash flow for the 15 Business Units. In addition, his team has responsibility for Product Environmental Compliance and Trade Compliance.

Similar to his current role, Fred served for seven years as the Vice President of Supply Chain for Emerson’s Process Management business, which is the global industry leader in process management devices and systems within the chemical, oil and gas, refining, power, water and wastewater industries. In addition, Fred was the Director of Procurement for Emerson Network Power Connectivity Solutions. In this role, his primary responsibility was consolidating and leveraging the strategic procurement activities across a diverse group of product companies with a global footprint in Minnesota, Mexico, England and China. During his earliest tenure with Emerson Corporate Procurement, Fred managed Emerson’s Strategic Sourcing solution (MIN), which remains as the platform for centralized supply chain initiatives.

Previous to Emerson, Fred held leadership roles in Production / Operations Management for thermal management solutions manufacturer and Quality Management for manufacturer of bulk material handling equipment.

Fred earned a Bachelor of Mechanical Engineering from the University of Louisiana and a Master of Science in Industrial Automation from Carnegie Mellon University. Fred and his wife Sandy, who is an alumnus of SLU, live in Chesterfield with their three children.

2

REGULATORY COMPLIANCE WORKSHOP

Product compliance has become increasing complex and poses great challenges for supply chain professionals. It has become more urgent as sourcing, manufacturing and delivering takes a global stage. Tens of millions of finished products were lost due to failing compliance in this country.

Manufacturers are seeking help from supply chain professionals to manage the entire supply chain spectrum to minimize potential losses due to complex regulatory compliance requirements. In order to meet such challenges, the Center in collaboration with ADK Information systems, a leading product safety educational organization, offers a two-­‐day workshop on compliance at Saint Louis University with prominent instructors in this field from around the country.

This two day workshop combines an overview of the regulatory environment, tools that product safety, risk and compliance managers can use in responding to various compliance issues and decision making points, and current trends in the compliance area of the U.S. Consumer Product Safety Commission. This workshop will feature hands on exercises, as well as practical take-­‐-­‐-­‐away insights into managing in the current compliance environment. This course is designed for any product safety manager or professional who need to understand compliance and regulations affecting consumer product companies, including design engineers, safety engineers, product development, product integrity, compliance officers, operations and production personnel, and consultants working with companies in these areas. We are offering a Regulatory Compliance Workshop on May 21& 22, 2014.

May Professional Development Courses

Title: Supply Chain Research Project Presentations Date: May 16, 2014 Instructor(s): John Hamilton, Ph.D., Assistant Professor of Management and Associate Director of the Center and Mr. Frank Fischer, President of Mesa Logistics Group Brief Description: This is the capstone of the Integrated Supply Chain Management certificate program. The projects cover a wide range of supply chain functions and initiatives.

Cost: Included in certificate fee Where: The John Cook School of Business, Cook Hall classroom CK 230

3

Title: Regulatory Compliance Workshop Date: May 21 and 22, 2014 Instructor: Team Based Brief Description: This workshop surveys domestic and international compliance and emerging harmonization among regulatory authorities in different countries. The workshop focuses on the impact of regulation and compliance has on testing, certification, reporting, product recalls, and import / export compliance posed by multi-­‐country obligations.

Cost: $1,195 Where: The John Cook School of Business, Cook Hall classroom CK 230 ADK Regulatory Compliance Workshop online registration link.

Save-­‐the-­‐Dates

• August 7& 8, 2102: Project Management • August 21, 2014: SCM 101 Integrated Supply Chain Management Foundation* • Auguts22, 2014:Supply Chain Simulation & ISCM Project Management

*Required for the Integrated Supply chain Management Certificate Program

Member discounts for Center professional development range from 10-­‐30 percent based membership level are available to Center members.

Center News

Board Meeting Dates in 2014

September 12, 2014 December 12, 2014

All Board Meetings will be held from 3:30 to 5:30PM at Bannister House.

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.

4

Supply Chain Talent: The Missing Link in Your Future?

Supply chain talent is a crucial agent in successful execution of supply chain management. In spite of flux of many supply chain programs in colleges and universities, we face a daily challenge to place right talents in the organization.

Ms. Lora Cecere shared her thoughts on this topic (published August 12, 2013 in SC Digest). Here is her story. Today, I finished up a report on supply chain talent. After doing the analysis of the results, I even more firmly believe that supply chain talent is the missing link in the supply chain. In figure 1, I outline the company’s biggest gaps. It is the sourcing and development of mid-­‐management talent. YOWZA! It is large.

Isn’t this ironic? Most of the current company’s efforts are focused on new-­‐hire recruitment or mentoring for high-­‐performance development for executive level positions. There are few companies that understand and have addressed the mid-­‐management talent issue. OUCH!

5

Opportunity to improve. Overall, companies rate their capabilities to manage supply chain talent worse than their peers. In the study, when companies were asked to self-­‐assess their capabilities to manage supply chain talent, 17% self-­‐rated that they perform better than their peer group while 34% reported that they do worse than their peers. And, we all know that self-­‐assessment scores tend to overstate capabilities. <It is a bit like me reporting my weight on my driver’s license.> I think that it is worse than reported.

High turnover. Average turnover of supply chain managers is 15%. It is increasing. In the study, 46% of companies attempt to hire from within the company, and 17% fill roles primarily through recruiting talent from other companies. External recruiting is becoming less and less successful.

Shortage of talent. The average company in the study has four positions open for five months. Companies are is feeling the pain of open positions. The most difficult 6

positions to fill are in the areas of planning that require both a technical mastery of technology and an organizational understanding of the business drivers.

Stiff competition for college graduates. Today, there is a 6:1 demand to supply ratio for new college graduates in supply chain management. Competition is intense and there is a lot of effort to attract the best and brightest from college recruiting; however, the larger issue is with the retention of mid-­‐management talent.

Working on the Right Stuff? In short, we need to broaden our scope. The current focus is on recruiting college graduates and high-­‐performing talent with little attention being given to middle-­‐management talent development. Only 23% of companies responding to the study have a planned cross-­‐functional training program for existing employees.

This study points out the need for skill development in the areas of training and career progression to give employees cross-­‐functional breadth.

Photo Gallery

Transportation and Warehousing

Dr. Tom Goldsby 7

Reducing & Mitigating Variability in the SC class and Dr. Justin Goodson

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

9

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

10