Center for Supply Chain Management: October 2014

Volume 12

Number 10 October 2014

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

NEWSLETTER INSIDE THIS ISSUE Welcome to New Board Member Distinguished Speaker Event Scholarship Recipients 2014 Fall Professional Development Course Schedule Save The Dates 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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New Board Member from United States Transportation Command The Advisory Board at the Saint Louis University Center for Supply Chain Management Studies advisory board announced Mr. Ray Forcier as a new guest board member from United States Transportation Command.

Mr. Forcier is replacing Ms. Diana Roach who served on the advisory board for many years.

Mr. Forcier is the Senior Education and Training Analyst for U.S. Transportation Command, Scott Air Force Base (AFB), IL. He leads the Command Human Capital Development Program and advises senior leadership on all aspects of training, education and professional development of over 1,700 active duty and reserve Air Force, Army, Navy, Marine Corps members and Department of Defense civilians.

Mr. Forcier graduated from the University of Illinois, and holds a Master of Education degree in Global Human Resources Development. Prior to his current assignment, Mr. Forcier was the Chief Diversity Officer for Air Mobility Command, Scott AFB, IL. He served on active duty in the U.S. Air Force for over 20 years before retiring as a Senior Non-Commissioned Officer in 2009.

The Center for Supply Chain Management welcomes Dr. Chris Caplice of MIT to the 2014 Annual Distinguished Guest Speaker Series The John Cook School of Business Center for Supply Chain Management will welcome Dr. Chris Caplice, the executive director, Center for Transportation and Logistics at Massachusetts Institute of Technology (MIT) as a keynote speaker for the 2014 Annual Distinguished Guest Speaker Series on Thursday, November 20. The event will be held on campus at Saint Louis University’s St. Francis Xavier (College) Church ballroom at 11:30 a.m.

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His presentation title is, “Disrupting the Dominant Design of Distribution� and will discuss how supply chains and distribution networks in the United States (and elsewhere) have settled into a dominant design where finished products are manufactured overseas, imported into the United States through very few concentrated points of entry (ports), and distributed through a network of tiered distribution centers. This has resulted in very concentrated flows from a very few number of ports. This talk discusses the dominant design for distribution in the United States and introduces four emerging and growing macro trends that could potentially have significant impacts on this dominant design: Densification of Product, Diversification of Sales Channels, Decentralization of Production and Digitization of Products.

As the executive director of the Center for Transportation and Logistics, he is responsible for the planning and management of the research, education and corporate outreach programs including the Supply Chain Exchange and the Master of Engineering in Logistics (MLOG) graduate program. He is also the founder of the MIT FreightLab, a research initiative that focuses on improving the way freight transportation is designed, procured and managed. His primary research is in the design, procurement and management of freight transportation systems including combinatorial auctions, robust planning and performance metrics. Dr. Caplice has presented and published in numerous business and academic conferences and journals.

Prior to joining MIT, Dr. Caplice held senior management positions in supply chain consulting, product development and professional services at several companies including Logistics.com, SABRE and PTCG. He is also the Chief Scientist for Chainalytics, the leading analytical supply chain consulting firm where he pioneered and leads the Chainalytics Model Based Benchmarking Consortium (MBBC). Dr. Caplice served five years in the Army Corps of Engineers, achieving the rank of Captain. His writing has appeared in the Journal of Business Logistics, the International Journal of Logistics Management and Transportation Research. He received a Ph.D. from MIT in 1996 in Transportation and Logistics Systems, a Master of Science in Civil Engineering from the University of Texas at Austin and a Bachelor of Science in Civil Engineering from the Virginia Military Institute.

For more information and to register for the event, contact the Center for Supply Chain Management: cscms@slu.edu or 314-977-3617.

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The Center’s Scholarship Recipients The Center for Supply Chain Management Studies awards several scholarship annually to those whose career is oriented toward logistics and supply chain management fileds. Applications from graduate programs (MS in SCM and MBA) were reviewed by the research and education committee of the Center’s advisory board and recommended their selection to the Center.

The following students have been recommended and awarded as Supply Chain Management Scholars for the 2014-2015 academic years.

Ms. Dongping Cheng (Full-time MBA): Novus International Scholar Ms. Haoran Cui (MS in Supply Chain Management):World Wide Technology Scholar Mr. Jason Harrington (Full-time MBA): Hamilton-Colombo Scholar Ms. Su Jiang (MS in Supply Chain Management): Monsanto Scholar Mr. Johny Lamb (Full-time MBA): Ameren Scholar In addition to a monetary award, the recipients enjoy free registration to many seminars and conferences that the Center either recommends or sponsors, including the premier Integrated Supply Chain Management certificate program, which is $6,000.

Congratulations to all scholarship winners.

October 2014 Professional Development Program Schedule Subject: Reducing Supply Chain Variability Date: October 10, 2014 Instructor: Dr. Justin Goodson 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: $600 Place: CK230 John Cook School of Business, Saint Louis University 4

Subject: Strategic Sourcing and Supplier Relationship Management Date: October 23 and 24, 2014 Instructor: Team of Instructors Brief Description: Strategic sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. Procurement is the acquisition of goods, services or works from an external source. It is favorable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location.

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

Save-the-Dates Topic

Instructor(s)

Date(s)

Managing Transportation and Warehousing 2014

Dr. Tom glodsby

Nov. 20 &21,

The 2014 Annual Distinguished Guest Speaker Series with Dr. Chris Caplice, Executive Director of the Center forTtransportation at MIT Nov. 20, 2014

2014 Advisory Board Meetings December 11, 2014 Center Programs and Registration You can access the full range of programs and register at Center for Supply Chain Management Studies – A Center of Distinction. Center discounts for members range from 10-30 percent based membership level.

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MS-Supply Chain Management Information Session Tuesday, October 7 at 5:30p.m.

Please join us to learn more about our MS-Supply Chain Management Program. Our Supply Chain Management program is ranked #13 by U.S. News and World Report. The Cook School is AACSB-accredited and has more than 20,000 alumni worldwide. Learn More & Register to Attend Today!

Center News - Food for Thought Omni-channel Retailing Creates New Challenges for Supply Chain Managers

By Patrick Burnson, Executive Editor, June 10, 2014 A new report by Capgemini Consulting reveals industry views about the rapidly evolving retail landscape, including business challenges and opportunities.

The report is titled Are You Ready? How to Create an Always-On, Always-Open Shopping Experience.

The consulting unit of the Capgemini Group, and GS1 US – the information standards organization – surveyed apparel and general merchandise retail leaders, whose companies represent nearly $500 billion in U.S. sales. Interviews were conducted in person and over the phone.

Top findings show that omni-channel retailing, which provides customers with a consistent research, shopping, purchasing and fulfillment experience regardless of channel, lies at the heart of many retailer transformation efforts. Additionally, mobile shopping, same-day delivery, and growing volumes of data from online channels are forcing retailers to a tipping point to remain competitive and better respond to evolving customer needs and preferences.

“Retailers are transforming their organizations and market approaches to leverage the power of digital and satisfy the needs of the ever-changing consumer,” says Dan Albright, Senior Vice President, Capgemini Consulting. “The digital transformation journey to omni-channel is multi-faceted and requires retailers to reevaluate every aspect of how they serve the market. Leading retailers have already taken significant steps in their omni-channel journey, but there are still many objectives that must be 6

met to continue building on recent progress. As the report reveals, the imperative for 2014 and beyond is to keep the strategy moving forward by enabling an agile infrastructure and greater inventory visibility to seamlessly serve consumers when, where, and how they shop.”

Belinda Griffin, senior manager at Capgemini, notes in an interview that supply chain collaboration and supply chain execution convergence are also keeping pace with this trend.

“It focuses on making better live execution-related decisions,” she says, “but also encompasses forward looking planning and forecasting activities.”

The results of the survey reveal four critical components required to help drive a successful omni-channel strategy: 1. Inventory Visibility – Inventory identification, tracking and management are the core competencies that matter most in omni-channel retailing. Supply chain visibility and inventory accuracy are foundational requirements for effective omni-channel operations and to allow the retailer to know where its inventory is at all times. New standards such as Electronic Product Code (EPC)-enabled Radio Frequency Identification (RFID) are enabling leading retailers to drive pinpoint precision in their inventory accuracy in real-time.

2. Web-Ready Products – Making products “web-ready” is an important component of a successful omni-channel retail operation, but is currently a bottleneck for many retailers. Key product information, attributes and images are not always accurate, standardized or readily available for retailers or their trading partners. However, emerging standards in this area can provide the foundation for identifying, capturing and sharing product data, providing the industry with the opportunity to collaborate on bringing products to the online marketplace faster.

3. Predictive Customer Analytics – Consumers are increasingly sharing valuable information through social data, product reviews, and online visits and purchases.

Leading retailers are using predictive analytics to gain deeper insight into customer behaviors, trends and the forces of loyalty and purchase. Retailers that take advantage of sophisticated algorithms and data-mining activities—which analyze current social data, product reviews and historical facts to track shopping patterns—have a greater ability to create an individual shopping experience based on rich information sources.

4. Fulfillment Strategy – Fulfillment options need to be robust and varied for today’s “always-on, always-open” shoppers. Retailers are focused on building in-store, web-store and direct-to-consumer options and many are leveraging existing and new infrastructure in creative ways. By using their storefront locations as distribution 7

centers, retailers are better positioned to deliver products quickly to the customer.

Standards-based technology such as EPC-enabled RFID will be critical in providing the requisite level of visibility to make this a reality.

“While retailers recognize the importance of the core components of a solid omni-channel strategy, many struggle with meshing them together and developing a high-level, integrated approach that can deliver quality experiences to satisfy today’s consumers and edge out the competition,” says Melanie Nuce, Vice President of Apparel and General Merchandise, GS1 US. “The industry needs to respond to strong demand for omni-channel capabilities and adopt common standards to drive the seamless integration of these key components.”

For more information or to click here to download the full report.

Coming Soon --- New CSCMS Distance Learning Options

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Picture Gallery

Trade Compliance

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Managing Inventories for Profitability

ADK

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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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