Supply Chain Management 1 SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008 Marsha J. Loges...

Supply Chain ManagementSupply Chain Management

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SUPPLY CHAIN MANAGEMENT

Information Sessions

Spring 2008

Marsha J. LogesAssistant Professor

MAN Department937 512-3309

[email protected]


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Supply Chain


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Careers in Acquisition/SCMContents

• Introduction

• What is a Supply Chain and why does it need to be

managed?

• What is Acquisition/SCM?

• What are the Regional Needs?

• What are the SCM Career Opportunities?

• What are the SCC SCM Program Options?

• Questions and Answers


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What is a Supply Chain?

Why does it need to be

managed?


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Typical Supply Chains

PURCHASING Receiving Storage Operations Storage DISTRIBUTION

Supplier

Supplier

Supplier

Storage} Mfg. Storage Distrib. Retailer Customer

PRODUCTION


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Alcoa Ball Corp Cola Bottling Co. M&M Meijer

First TierSupplier Distributo

rRetailer

Transportation companies

Finalcustomers

Upstream Downstream

Alcoa

Second TierSupplier

Supply Chain Flow


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Consider your raisins...


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Raisins Supply Chain

Materials/Supplies:Seeds, plants, fertilizers, pesticides, water, +

Irrigation systems, planting/harvesting tools, farming vehicles, carts, +Paper, cans, cartons, crates, pallets, dyes, +

Services:Agricultural specialists, technical services, equipment maintenance, marketing,

monitoring, quality control, planning/forecasting, packaging/printing, +

Product Distribution: Packaging, Transportation, Warehousing, Wholesale and Retail Distribution


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... Every link in the Supply Chain must be managed.

From the grape vineyards, to the drying fields, to the processors...

To the distributors, to the wholesalers, to the grocery shelves...

To the consumers...


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... Every link in the Supply Chain must be managed…

… For every company, in every industry.

Every Business has a Supply Chain…


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What is Acquisition/SCM?


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What is Acquisition/SCM?

• SCM relates to movement of goods between suppliers,

manufacturers, consumers

• Fundamental processes and practices necessary for efficiency

• Goal of SCM:

To positively impact the organization’s bottom-line

while delivering the best goods & service to customers

at the lowest possible cost

• SCM is integral to success of all business operations

• Narrowly defined, Acquisition relates to research, development,

and procurement of military systems

• Broadly defined, Acquisition includes getting the right product,

to the right place, at the right time, at a reasonable cost


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Acquisition/SCMObjectives

• Objectives of SCM:

- Provide an uninterrupted flow of materials, supplies, services required to

operate the organization

- Keep inventory investment and loss at a minimum

- Maintain and improve quality

- Find or develop competent suppliers

- Standardize, where possible, the items bought

- Purchase required items, services at lowest total cost

- Achieve productive working relationships with other functional areas within

the organization

- Accomplish purchasing objectives at lowest possible level of administrative costs

- Improve organization’s competitive position

Source: Leenders, Michiel R., Fearon, Harold E., Flynn, Anna E., and Johnson, P. Fraser,

Purchasing and Supply Management, 12th edition, McGraw-Hill, Boston, 2002.


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Acquisition/SCMProcesses

• Processes for coordinated supplier-to-consumer systems

– Identifying needs for raw materials, supplies, components, systems

– Developing specifications, performance requirements

– Computing quantity requirements

– Selecting sources and negotiating agreements/contracts

– Acquiring, transporting, and storing inventory

– Managing and maintaining operations

– Managing logistics


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What can SCM do?


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What are the Regional Needs?


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I70/I75 90-MINUTE MARKET

x


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Acquisition/SCMRegional Needs

• Regional work force needs driven by private and public sector

influences

• DoD presence at WPAFB

- Requires government employees and support contractors

- Specialized knowledge of all facets of acquisition and logistics

• "90 Minute Market" reach of Interstate 70/75 commerce corridor

- Requires industry specialists

- Expertise in all aspects of supply chain management


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Acquisition/SCM Regional Needs (continued)

• Driven by DoD needs, Greater Dayton area has major concentration

- Over 6,000 professionals in various areas of SCM

- Both private and public sectors

• Other public agencies, private businesses require SCM expertise

- Procurement, shipping, trucking, order fulfillment, warehousing

• Ohio has nation’s sixth largest civilian workforce in these professions

- Responsible for procuring goods and services

- Assuring global delivery to the U.S. military whenever needed


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Acquisition/SCMRegional Needs (continued)

• DoD data indicate 50% of civilian workforce eligible to retire

- Local market need is critical to train and retain SCM professionals

• Regional economic development associated with I 70/75 commerce

- Drives growth in need for industry SCM specialists


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What are the SCM Career Opportunities?


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Acquisition/SCMCareer Fields

• Specialized area; growing in importance

- Strategic challenges for businesses

- Consumer expectations, industry advancements, global competition

• Varied duties may include:

- Acquisition of materials, services and equipment

- Planning and policymaking

- Product development and control

- Contract development and forecasting

- Production planning and scheduling

- Warehousing and distribution

Source: Burt, David N., Dobler, Donald W., and Starling, Stephen L., World Class Supply

Management: The Key to Supply Chain Management, 7th Edition, McGraw-Hill, Boston, 2003.


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DoD Acquisition Career Fields

Auditing Business, Cost Estimating,

and Financial Mgt Contracting Facilities Engineering Industrial/Contract Property

Management Information Technology Life Cycle Logistics Production, Quality and Manufacturing

Program Management Purchasing Systems Planning, Research,

Development and Engineering - Science &Technology Manager

Systems Planning, Research, Development and Engineering - Systems Engineering

Test and Evaluation


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Acquisition/SCM Private Sector Career Fields

Accounts management Contracts management Contract negotiation Cost projection Distribution Facilities management Financial management Forecasting Inventory management Logistics management Maintenance management Materials management Manufacturing management

Operations management Packaging management Procurement Product development Production management Production planning Purchasing Quality control Requirements forecasting Research and development Supply management Transportation Warehousing


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Acquisition/SCM Salary Information -

DoD

DoD Acquisition/SCM Positions Step 1 Step 3 Step

10Entry Level GS-04 $ 26,170 $ 27,914 $ 34,017

GS-05 $ 29,279 $ 31,231 $ 38,062

Progression GS-07 $ 36,269 $ 38,687 $ 47,150

GS-09 $ 44,364 $ 47,321 $ 57,672

GS-11 $ 53,677 $ 57,256 $ 69,782

GS-12 $ 64,335 $ 68,625 $ 83,639Management/Professional GM-13 $ 76,505 $81,606 $ 99,459

GM-14 $ 90,405 $ 96,431$117,524

GM-15 $106,343 $113,432$138,245

Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans

Source: www.fedjobs.com/pay/pay 2007 General Schedule Base Pay + Locality


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Acquisition/SCM Salary Information - Private

Sector

Acquisition/SCM Professionals

Average Salary Top 20 %$ 78,470 $100,000 or >

Average Salary Experience$ 65,389 1- 5 years $ 67,996 6 - 10 years $ 77,187 11 - 20 years $ 95,900 21 + years

Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings

plans

Source: Institute for Supply Management Salary Survey, Jan/Feb 2006


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Average Salary – PurchaserPrivate Sector

Purchasers, 3 or < years experience $ 54,600

Purchasers, BS/BA in Business $

69,000

Purchasers, BS/BA in Technical Field $

70,900

Purchasers, CPM Certification $

80,000

Purchasers, MBA $ 91,900

Source: Purchasing, December 2003


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Acquisition/SCM Average Salaries - Private Sector

Chief, Purchasing/Supply Management/Sourcing $161,082

VP, Purchasing/Supply Management/Sourcing $158,256

Director, Purchasing/Supply Management/Sourcing $120,401

Manager, Purchasing/Supply Management/Sourcing $ 80,519

Agent, Buyer, Senior Buyer, Planner, Purchaser $ 57,081

Consultant $112,100



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Acquisition/SCM Salary Influenced by Education

• In general, salary levels increase with educational level

• Bachelor’s degree or higher- Typically higher than overall average - Average - $79,368

• Master’s degree- 25 % higher than Bachelor’s- Average - $99,373

• All degree holders- Average salaries highest in technical degree fields- Average - $93,977



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Acquisition/SCM Salary Influenced by Certifications

• With one or more professional certifications

- Higher average salary $80,758 vs. $76,411

• With Certified Purchasing Manager (CPM) certification

- Average salary 10 % higher $83,172 vs. $75,337



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Acquisition/SCM Salary Influenced by Location

• Location - Average salaries vary by location

- Wash. D.C. area - average $103,036

- North Carolina area - average $93,791

- Illinois area – average $93,752

- Other states with average > $80,000

Ohio, California, Connecticut, Georgia, Iowa,

Massachusetts, Maryland, New Jersey, New York,

Texas, Virginia

- Other states with average < $60,000

Arkansas, Oklahoma, South Carolina.



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Acquisition/SCM Skills Needed

Benchmarking

Contract development

Contract management

Cost/price analysis

Distribution

Economic forecasting

Electronic commerce

Inventory control

Logistics

Purchasing

Negotiations

New technology/software

Performance measurements

Project management

Relationship management

Strategic alliances

Strategic planning

Supplier evaluation

Team building

Transportation and traffic

Source: www/ism.ws/careercenter


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Acquisition/SCM Professions -

Education Options

Associate:

- Business (general)

- Purchase/Supply Mgt

- Logistics

- Operations Mgt

- Technical

Bachelor:

- Business (general)

- Purchase/Supply Mgt

- Supply Chain Mgt

- Logistics

- Materials Mgt

- Distribution

- Transportation

- Liberal Arts

- Technical

Graduate Degree:

- MBA

- MS (technical field)

- Logistics

- Law

Combination:

- Technical Undergrad

w/ Graduate in Bus

Source: www/ism.ws/careercenter


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A.A.S. GBM - SCM Concentration

WHAT IS THE SCM TARGET MARKET?

• College students seeking degree/career studies• Including Tech Prep students

• Entry-level/mid-level public and private industry personnel seeking additional/advanced career studies

• Displaced entry-level/mid-level private industry personnel seeking new career studies

• DoD military and civilian personnel seeking acquisition studies

• DoD contractor support personnel seeking acquisition studies

SCM

WORK FORCE

SUPPLY

SCM

WORK FORCE

SUPPLY

BOTTOM-UP

(ENTRY LEVEL)

EXECUTIVE

EDUCATION

CAREER

CHANGE

ADVANCED

EDUCATION

BOTTOM-UP

(ENTRY LEVEL)

TRADITIONAL TODAY’S NEEDS


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What are the SCC SCM Program Options?


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WHAT IS THE SCM CONCENTRATION?

AAS Bus Mgt, SCM Concentration Degree Program

– 103 credit hrs

SCM 1-Year Certificate Program

– 47 credit hours

SCM Short-Term Certificate Program

– 18 credit hours


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WHAT ARE THE SCM COURSES?

Seven SCM Courses Prerequisites

MAN 241, Intro to SCMMAN 242, Advanced SCM MAN 241 and MAT 116 or 121MAN 243, Materials Management MAN 241MAN 244, Negotiation Techniques MAN 205 or MAN 241MAN 247, DoD Systems Acquisition MgtMAN 248, DoD Acquisition Logistics MAN 247MAN 251, Logistics Management MAN 205 Two potential future SCM Courses

MAN 240, Services Management TBDMAN 249, DoD Systems Sustainment Mgt MAN 248


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AAS Bus Mgt, SCM Concentration Degree Program

– 103 credit hrs


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1st QTR CURRICULUM

Course Title Cr Hrs

1st QTR

MAN 105 Intro to Business 3

MAN 201 Intro to Supervision 3

COM 206 Interpersonal Communications 3

ENG 111 or ENG 131

English Composition I orBusiness Communication I 3

MAT 116 or MAT 121

College Algebra orBusiness Math 5

Total 17


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2nd QTR CURRICULUM

Course Title Cr Hrs

2nd QTR

MAN 205 Principles of Management 3

ACC 121 Principles of Financial Accounting 5

BIS 160 Intro to Word, PowerPoint, Excel 3

ENG 112 orENG 132


MAT 122 Statistics I 4

Total 18


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3rd QTR CURRICULUM

Course Title Cr Hrs

3rd QTR

MAN 225 Human Relat & Organizational Behav 3

MAN 241 Intro to Supply Chain Management 3

ACC 122 Principles of Managerial Accounting 5

ECO 216 Principles of Macroeconomics 4

MRK 201 Marketing I 3

Total 18


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4th QTR CURRICULUM

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Course Title Cr Hrs

4th QTR

MAN 216 Managing Operations 3

MAN 242 Advanced Supply Chain Management 3

MAN 243 orMAN 247

Materials Management or DoD Systems Acquisition Management 3

MAN 255 Management Information Systems I 3

ECO 218 Principles of Microeconomics 4

MRK 202 Marketing II 3


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5th QTR CURRICULUM

Course Title Cr Hrs

5th QTR

MAN 110 Intro to International Business 3

MAN 210 Intro to Project Management 3

MAN 244 Negotiation Techniques 3

MAN 295 Management Seminar 3

LAW 101 Business Law I 4

Total 16


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6th QTR CURRICULUM

Course Title Cr Hrs

6th QTR

MAN 251 orMAN 248 or

MAN 260

Logistics Management orDoD Acquisition Logistics orManagement Science I 3

MAN 270 orMAN Elective

Management Internship orMAN Elective 3

MAN 278 Management Capstone 3

COM 211 Effective Speaking I 3

HUM Elective HUM Elective 3

Total 15


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SCM 1-Year Certificate Program

– 47 credit hours


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SCM One-Year Certificate

1st QTR CURRICULUM

Course Title Cr Hrs

1st QTR


BIS 160 Intro to Word, PowerPoint, Excel 3

COM 206 orCOM 211

Interpersonal Communications orEffective Public Speaking 3

ENG 111 or ENG 131


LAW 101 Business Law I 4

Total 16


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2nd QTR CURRICULUM

Course Title Cr Hrs

2nd QTR

MAN 110 Intro to International Business 3



ENG 112 orENG 132

English Composition II orBusiness Communication II 3

MAT 122 Statistics I 4

Total 16


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3rd QTR CURRICULUM

Course Title Cr Hrs

3rd QTR

MAN 216 Managing Operations 3

MAN 243 orMAN 247

Materials Management orDoD Systems Acquisition Management 3


MAN 255 Management Information Systems 3


MAN 260


Total 15


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SCM Short-Term Certificate Program

– 18 credit hours


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SCM Short-Term Certificate

CURRICULUM

Course Title Cr Hrs

1st QTR



Total 6


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CURRICULUM

Course Title Cr Hrs

2nd QTR


MAN 243 orMAN 247

Materials Management orDoD Systems Acquisition Management 3

Total 6


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CURRICULUM

Course Title Cr Hrs

3rd QTR



MAN 260


Total 6


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The Power of SCM


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Careers in Acquisition/SCMConclusion

• Valuable career opportunities in Acquisition/SCM

• Increasing demand in both public and private sectors

• Attractive salaries and benefits

• Opportunities for continuing career advancement

• Wide variety of associated specialty skills areas

• Numerous educational options available

Supply Chain Management 1 SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008 Marsha J. Loges...

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