Master in

Supply Chain Management

Prof.dr.ir. Bart Vos

Department of Management

Agenda

1. Supply chain management – An overview

2. Careers in supply chain management

3. Master in Supply Chain Management at Tilburg University

4. Participants’ perspective: Inge van Dongen, Philips Lighting

5. Closing

1 Supply chain management

– An overview

What is supply chain management?

• “Supply Chain Management is the

integration of key business processes

from end user through original

suppliers that provides products,

services and information that adds

value for customers and other

stakeholders” (Stock and Lambert,

2000).

• Supply chains compete, not

companies (Christopher and Towill,

2002)

• Key issues include multimodal

transport, outsourcing, globalization,

sustainability, lean management,

information systems, collaboration,

planning

Change from “rigid” to “flexible” manufacturing

Ford: T-Model (“Tin Lizzy”)

Detroit, USA, 1908

Breakdown in single tasks

Specialization of jobs

Focus: Intra-organizational

Highly standardized products

Focus on cost efficiency

Rigidity

Production/supply networks

Specialization of performance units

Focus: Inter-organizational

Smart: fortwo

Hambach, France, 2008

Highly customized products

Focus on differentiation (and cost)

Flexibility

Example

Supply chain complexity:

Many supply chain tiers

OEM1st tier supplier(seats)

2nd tier supplier(leather firm)

3rd tier supplier(tannery)

4th tier supplier(farmer)

Example

CustomerDealer

Configuration

Supply chain complexity:

Many suppliers

• Mercedes-Benz E-class

• ~ 150 major direct suppliers

• Many of them deliver on a JIT or JIS basis

Example

Supply chain complexity:

Many geographic locations

Wafer Fabrication

PortlandSalt Lake CityMidget HaemekSanta ClaraArlingtonGreenock

Assembly & Testing

CebuMalaccaPenangBangkokToa Payoh

Prime Distribution Center

SwindonPortlandSanta ClaraTokyoHong Kong

Example

SCM's impact on ROI

Source: Christopher, 2005

Supply chain

Cost Of Goods Sold (COGS)

• Direct costs attributable to the production of the goods sold by a company, including

• Cost of materials used in creating the good ("purchasing cost")

• Direct labor costs used to manufacture the good ("manufacturing cost")

• How to reduce purchasing cost?

• Purchasing price

• Supplier selection

• Global sourcing

• Supplier management etc. etc.

• How to reduce manufacturing & logistics cost?

• Manufacturing footprint

• Manufacturing processes

• Lean management

• Inventory management etc. etc.

Supply chain

management and

operations!

COGS at Unilever

Example

Supply chain and

operations costs:

~ 60% of revenues

from products

Profit impact of purchasing: Reducing purchasing

costs vs. increasing revenues

47%

40%

50%

59%

0% 20% 40% 60% 80% 100%

Mechanical Engineering

Chemical Industry

Foods

Trade

Operative MarginOther CostsStaff CostsPurchasing costs

EBIT Margin

3.4 %

2.5 %

5.0 %

3.3 %

Lowering

purchasing

costs by 3 %

will have the

same EBIT-

effect as an

revenue

increase of …

Revenue

increase of

52 %

60 %

24 %

43 %

PI =EM

PC x PCR

PC = Purchasing costs in % of revenues

PCR = Purchasing costs reduction in % of the purchasing cost

EM = EBIT Margin %

PI = Profit impact of purchasing as compared to necessary

revenue growth

Examples

2. Careers in supply chain

management

The supply chain management profession

• Supply chain management is…

• Interdisciplinary

• Collaborative

• Independent of specific industry

• Dynamic

• Increasingly global

• Essential capabilities:

• Overarching understanding of functional areas (from finance to marketing)

• Analytical skills

• Collaborative skills

• Major subfields:

• Purchasing management

• Logistics and distribution management

• Production and operations management

The link between supply chain management and

strategy

New

product

development

Purchasing

and SupplyOperations Distribution

Marketing

and

sales

Support: Finance, accounting, information technology, human resources

Competitive strategy

Product

development

strategy

Marketing and

sales strategy

Consistency and support between competitive strategy, supply chain strategy, and other functional strategies is important

Supply chain strategy

“The Hot New MBA: Supply-Chain Management”

(Wall Street Journal, June 6, 2013)

Source: Wall Street Journal (2003):

http://online.wsj.com/news/articles/SB10001424127887324423904578523591792789054

3. Master in Supply Chain

Management at Tilburg

University

Positioning of MSc in SCM

Starting

positions

• Manufacturing: Entry management positions in supply chain, operations,

purchasing, or logistics

• Service industries: Entry management positions at logistics service

providers

• Consulting: Generalist or specialist

Knowledge Scientific advances in purchasing, production/ operations, distribution, and

other advanced topics

Skills Qualitative and quantitative research skills required for academic studies

and practice

Additional practical skills (design, planning, modeling, ICT, collaboration,

coordination)

Teaching

policy

• Strong research focus and academic excellence

• Strong links to practice

Mindset Analytical, problem-solving, collaborative

Labor market Currently about 2 months to find first job, alumni feed back generally

positive, still in high demand

Curriculum (August Entrants)

Purchasing

Management

Production

Management

Distribution

Management

Research Skills

SCM

Corporate

Entrepreneurship

Supply Chain

Collaboration

Planning, Modeling,

and ICT Skills

Master

Thesis

Unit 1 Unit 2 Unit 3 Unit 4

Skills training and

topic definition

Extended proposal

development under

supervisor

Full-time

researchThesis:

• Heavy unit 1

• Optimal sequence

• Relatively fast

Curriculum (January Entrants)

Purchasing

Management

Production

Management

Distribution

Management

Research Skills

SCM

Organization

Theory

Supply Chain

Collaboration

Planning, Modeling,

and ICT Skills

Master

Thesis

Unit 1 Unit 2 Unit 3 Unit 4

Skills training and

topic definition

Extended proposal

development under

supervisor

Full-time

researchThesis:

• Heavy unit 3

• Less optimal sequence

• Limited flexibility at the end

Course example:

“Collaboration game and advanced topics”

 

Finished productComponents

Supply Production Distribution

Supply Chain

Purchasing Operations Sales

Reflect

Discussions

Presentations

Conceptualize

Lectures

Guest speakers

Apply

Rounds of play

Exercises

Experience

Feedback from the simulation

• A simulation game to reinforce supply chain fundamentals and apply advanced methods

• “The Fresh Connection”

• Web-based simulation of a fresh juice producer

• Goal: Highest ROI (costs, revenue, investments)

• Cross-functional teams

• Decision-making at the tactical/strategic level

• Six rounds with increasing task complexity

• (Advanced) topics to address:

• Supply chain fundamentals

• Supply chain strategy and its implementation

• Agri-food supply chains

• Supply chain planning and S&OP

• Forecasting

• Supply chain collaboration

• Supply chain risk

• Close loop value creation

• > 80% company assignment

• Albert Heijn: combining inbound and outbound

transportation flows

• DAF: spare parts management

• Coca Cola: redesign warehouse layout

• Closed loop supply chains at Philips, Assembleon, Oce,

Lage Landen

• Purchasing management at Nedtrain

• Maintenance of F16 jet fighters

• Also SMEs (e.g. lean manufacturing projects)

Examples of Master’s Theses

Graduates: Some examples

Danny Baars Business consultant

Harm Jan Bech Procurement analyst Enexis

Hilde Botden Supply chain engineer VDL (Van der Leegte) Group

Victor Breugem Supply chain planner, FrieslandCampina

David de Kruijf Supply chain planner Pearle

Willem Jan Castelijns Warehouse manager Panalpina

Niels de Rooij Business analyst Ploeger

Geoffrey Dickenson Operations manager WoonVeilig

Mark Ebbers Consultant Planon

Robbert Janssen PhD candidate VU

John Koers Interim Professional at Yacht

Robin Law Consultant at Every Angle

Inna Kostuyek Service analyst Philips Healthcare

Ronald Sol Teacher HAS Hogeschool

Dirk van Dooren Supply chain analyst LHC consulting

Robbie Vughts Head of EMEA Edwards Lifesciences SA

4. Participants’ perspective:

Inge van Dongen

5. Summary

• Information market (Mensa 17.45 – 19.00 hr, with participation from

companies like Achmea, Rabobank, PwC, Shell & Unilever)

• Interested in SCM? Master’s student for a day!

• Career services and alumni relations

• Admission & application

• Questions

Closing

Master’s student for a day

Experience what it’s really like to study at Tilburg School of Economics

and Management:

• Join a lecture

• Get in touch with other students

• Check out our campus, facilities and services

For hbo students and wo students from other universities

More information and registration:www.tilburguniversity.edu/education/Masters-student-for-a-day-TISEM/

Career support

Student Career Center and Alumni services

Guiding you in your career planning process:

• Career Advice

• Career Workshops

• Internships

• TiSEM Career Mentor Program

• Center of Entrepreneurhip

www.tilburguniversity.edu/careercenter

www.tilburguniversity.edu/alumni-tisem

For all students:

• Enroll via Studielink

Non TiSEM students who want to enroll in a (Pre-)

Master also need to:

• Submit an application for admission

For more information go to:

www.tilburguniversity.edu/education/masters-programmes/admissionprocedure/feb/

Admission & Application

Questions?