Center for Supply Chain Management Newsletter January 2014

Volume 13

Number 1 January 2014

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

INSIDE THIS ISSUE Welcome ROi Celebrating the Center's 15th Anniversary January Professional Development Courses Save The Dates Spring 2014 Workshop Schedule Center News Center Organization and Board Members Center for Supply Chain Office

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ROi Joins the Center for Supply Chain Management Studies The Advisory Board at the Center for Supply Chain management Studies at Saint Louis University has announced that ROi has joined the Center. Founded in 2002 by Mercy, ROi mission is to transform the Clinical, Operational and Financial performance of those they serve through an integrated supply chain. ROi currently has 350 employees.

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ROi is widely considered the most advanced and integrated provider-owned supply chain organization in health care. The company leads an innovative business model that integrates supply chain functions traditionally performed by commercial distributors, group purchasing organizations (GPOs), manufacturers and consultants.

Founded by Mercy in 2002, the nation's sixth largest Catholic health care system, and serve multiple customers who share a passion for supply chain excellence. ROi provides a single-source, fully integrated supply chain solution through services including group contracting, clinical and operational consulting, pharmaceutical repackaging, custom procedure tray manufacturing, print operations, purchasing and master item file management, and distribution and transportation management. ROi has offices in St. Louis and a 100,000-square-foot Consolidated Services Center in Springfield, MO with a Central Distribution Center in Earth City, MO ROi is one of the world’s top 10 health care supply chain organizations, owned primarily by Mercy Health System, a $4 billion integrated delivery network serving more than 3 million people annually across a four-state region in the Midwest.

Ms. JoAnne Levy, Vice President of Integrated Sourcing Solutions will serve on the Advisory Board. Her short bio is shown below.

A member of the senior leadership team, JoAnne Levy is Vice President of Integrated Sourcing Solutions for ROi, one of the world’s Top 10 health care supply chain organizations, owned primarily by Mercy Health System, a $4 billion integrated delivery network serving more than 3 million people annually across a four-state region in the Midwest.

In ROi’s unique integrated supply chain model, JoAnne’s responsibilities include overseeing ROi’s Group Purchasing Organization (GPO), the nation’s seventh largest non-government GPO. ROi’s GPO manages 800-plus contracts and more than $1.2 billion in purchasing volume for Mercy and several other healthcare providers, including Franciscan Missionaries of Our Lady Health System and Spartanburg Regional Healthcare System. JoAnne and her team work with channel partners, GPO members and ROi’s other operating divisions to harvest maximum clinical, operational and financial value from the supply chain. JoAnne also serves as ROi’s legal liaison.

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Prior to joining ROi, JoAnne served as vice president of Global Logistics with Covidien/Mallinckrodt in St. Louis. She managed the customer service, distribution, transportation, compliance, and planning functions for Covidien/Mallinckrodt’s $1.2 billion global pharmaceuticals business. Prior to that position, JoAnne was vice president of Pharmaceutical Logistics, senior director of International and Market Development, and director of Sales and Marketing Support — all for Covidien/Mallinckrodt. Before moving into management, JoAnne served in various legal roles for Mallinckrodt, including as assistant general counsel, focused on controlled substance, environmental, and safety and health law.

Prior to her work with Mallinckrodt, JoAnne was in private practice with a large, St. Louis-based law firm, known today as Husch Blackwell Sanders. Her private practice followed a year clerking for the Honorable James R. Browning, then-Chief Judge of the Ninth Circuit Court of Appeals in San Francisco.

JoAnne is a member of the Advisory Board for the Healthcare Businesswomen’s Association (HBA), St. Louis Chapter, of which she is a founding member; Temple Israel, as the current Board President, in St. Louis; Washington University’s Alumni Board of Governors; The St. Louis Forum; and St. Louis’ Forest Park Forever. JoAnne is passionate about mentoring young professionals and has been active in both HBA’s and Covidien’s mentoring programs. She has spoken and authored articles on a variety of supply chain, health care and legal topics throughout her career.

JoAnne received her undergraduate, law and master of business administration degrees — all with honors — from Washington University in St. Louis.

Celebrating Our 15th Anniversary: A Closing Remark

By Ik-Whan Kwon, Director of the Center In the late summer of 1997, then Dean of the School of Business, Dr. Neil Seitz visited my office with a request to consider setting up a Center for Transportation or something similar to that name. The request came from Mr. Bob Bare, then President of UniGroup and a member of the Board of Trustees at Saint Louis University, through Dr. John Hamilton. To tell the truth, I did not have any idea how a “transportation Center” would fit in our curriculum. Dr. John Hamilton, then CIO at UniGroup and I had a long personal history ranging from a working relationship to academic partnership (John obtained his MBA and Ph.D both from Saint Louis University). During his visit, 4

Dean Seitz encouraged me to visit a few universities that had similar programs, such as Northwestern University, Michigan State University, the University of Tennessee, etc.

Around that time, I was escorting a reporter from the Korea Times who wanted to interview Mr. Bob DeLaney who, in turn, introduced me to Mr. David Tarr, then President of the Council of Logistics Management (predecessor of current CSCMP).

After a year of visiting various universities learning about transportation, I felt confident enough to start contacting several professionals in the St. Louis area. Mr. Bob Drury at Schnucks Market and Mr. Ray Martin at Sara Lee were introduced by Mr. David Tarr and Mr. Bob Delany. I had accidentally met Mr. Jerry Hayden at Solutia at the Chicago Airport on the way home after attending my first CLM National meeting through his wife De De who is a Saint Louis University alum. Since Dr. Hamilton had pledged the initial $20,000 funding, we kept in close contact. Finally I paid a visit to Mr. Bill Hoffmann at Purina who was President of the St. Louis Chapter of CLM. A meeting was called in early winter of 1997 at the Business School where we began to discuss a potential name and mission statement for the Center. Many ideas were discussed that led to serious and spirited debates. The Center for Transportation was a popular name at that time. However, the “supply chain” center was also discussed as futuristic and appealing since the concept of supply chain management was about to take off. To my surprise, the following name and Mission statement were readily adopted: Name: Mission:

The Center for Supply Chain Management Studies To train and educate supply chain management professionals.

To assist supply chain management academic programs.

To engage in advanced research in supply chain management.

A vigorous fund raising campaign was launched with help from the Founding Members including Mr. Bob Baer. After a few months’ of work, we raised enough funds to launch the inaugural opening in November 1998 with late Professor Don Bowersox at Michigan State University and Mr. Joe Andrawski at VICKS as keynote speakers. Over 150 professionals attended.

Encouraged by such unexpected success, the Center started to offer value added programs in supply chain management areas such as SCM101, Integrated Supply Chain Management Certificate (for more than 10 years, twice a year), and International Trade Management in Supply Chain, Change Management, Lean Logistics, and Project 5

Management in Supply Chain. A Master of Supply Chain Management was introduced in our curriculum in 2008 attracting students from around the world.

The Center has been strongly supported by the world class Advisory Board whose knowledge in supply chain/logistics/sourcing is second to none. Their commitment to the Center has been amply demonstrated year in and year out in the U.S. News & World Report. It continuously ranks our Center in the top 20 every year. In 2013, the Center eas ranked in the top 16 in the country.

As we closed 2013 and enter into 2014, we feel a great deal of accomplishment over the past 15 years. However, there are also many challenges ahead of us to maintain the excellence of our programs. Supply chain management is dynamic, complex, challenging and an exciting area to engage in. The future is unknown but promising as it delivers value-added services to our customers in an unprecedented level and speed.

We at the Center will be vigilant to make sure that our customers receive such a high level of value from our operations. The next 15 years will be the most significant milestone for us all.

January Professional Development Courses Title: SCM101 and Financial Impact Date: January 23, 2014 Instructor: Ik-Whan G. Kwon, Ph.D., Saint Louis University Summary Description: Supply chain management (SCM) draws heavily from the areas of operations management, logistics, procurement, information technology and strives for an integrated approach. This course also brings into consideration the impact of supply chain management on performance of the firm’s financial results.

Cost: Free for CSCMS members and those registered ISCM. Where: The John Cook School of Business, Cook Hall 230 Title: Supply Chain Simulation and Project Management Date: January 24, 2014 Instructors: John Hamilton, Ph.D., Saint Louis University and Mr. Ray Scott, Consultant Summary Description: ISCM Supply Chain Simulation An integral concept of supply chain management is the integrated nature of the supply chain. SC simulation demonstrates how these components work together and how to increase SC effectiveness and efficiency. ISCM Project Management Project management (PM) is 6

the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. In developing an ISCM project some key elements to consider are the integrated nature of the supply chain. ISCM PM is intended to provide a basic framework which enables a team to complete a supply chain project.

Cost: $560 Where: The John Cook School of Business, Cook Hall 230 Title: International Trade Compliance Date: January 30 & 31, 2014 Instructor: Mr. Mark Baxa, Monsanto Summary Description: International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). 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 e.g. delayed shipments , fines, penalties, seizures and a negatively affect a company’s reputation Cost: $1,120 Where: The John Cook School of Business, Cook Hall 230

Save-the-Dates Feb. 5 & 6, 2014: Risk Assessment in Product Safety Management Feb. 6 & 7, 2014: Project Management Feb. 20 & 21, 2014: Inventory Management for Increased Profitability Feb. 24 & 25, 2014: Contract Negotiations Feb.28 & 29, 2014: Legal Environment in International

Spring 2014 Workshop Schedule The schedule is listed below. Click here to review each module on our website.  Risk Management: March 7, 2014  Strategic Sourcing and Supplier Relationship Management: March 20 & 21, 2014  International Trade Management – Risk Management & Security: March 27 & 28, 2014  Transportation and Warehousing Management: April 10 & 11, 2014 7

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Sales & Operations Planning: April 4, 2014 Reducing and Mitigating Variability in the Supply Chain: April 25, 2014 International Trade Management - Operations: May 1 & 2, 2014.

Member discounts ranging from 10-30 percent are available for these programs.

Center News Rob Herhold Mr. Rob Herhold who served on our Steering Committee for many years representing ASQ St. Louis Chapter has passed away on Saturday, December 7, 2013. He was President of the Institute for Strategic Management Practices, Former Executive with the Excellence in Missouri Foundation, and Malcolm Baldridge National Quality Award Alumni Examiner. He was a recipient of the ASQ Volunteer Excellence Award and the Waldo Veseau Technical Achievement Award. We offer our sincere condolences to his family and friends.

I Love SCM Professionals who majored in supply chain management appear to be very happy indeed with their choice of profession. When the salary information and research firm PayScale asked respondents to an annual online survey whether they would recommend their chosen major to others, an incredible 93 percent of supply-chain management majors said yes. The remaining 7 percent were neutral. The survey results were based on responses from 1.4 million college graduates without advanced degrees who are working in U.S.-based civilian jobs.

Compensation apparently was not the main motivation for those who chose to work in supply chain management. SCM, with an average starting salary of $52,800, was not among the top 10 best-paying majors. (Seven of those 10 fall under engineering).

The full report can be found at www.payscale.com/college-salary-report-2014.

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Center Organizations & Board Members AEP River Operations Ameren Services

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. Gary Proctor Mr. Ray Martin Mr. George Morris Mr. Frank Fischer Mr. Kevin Lawrence Mr. Bob Bielecki Mr. Kevin Mowery Mr. Marty Tendler & Mr. Pete Spanos Mr. Russ Broker Mr. Carlton Adams Ms. JoAnne Levy Dr. Ellen Harshman & Dr. John Hamilton Mr. August (Gus) Schaefer Mr. Tom Duwel Mr. Kurt Grimminger Dr. Ik-Whan Kwon

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 OHL Peabody Energy ROi Saint Louis University Underwriter Laboratories UniGroup, Inc. World Wide Technology Ex-Officio

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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