Who Will Make Up the Next

Generation of Logistics?

Joel Sutherland

Managing Director

Supply Chain Management Institute

University of San Diego

joelsutherland@sandiego.edu

Tim Fischer

Senior Vice President

Supply Chain

Bumble Bee Foods

San Diego, CA

Timothy.Fischer@bumblebee.com

2014 Annual

Logistics Conference

USD & SCMI

• SCMI founded in 1999

▫ Offering supply chain management

education since 1986

• Committed to develop and disseminate

logistics/SCM knowledge & best practices

in three areas:

▫ Collaborative Relationships

▫ World-Class Education

▫ Applied Research

• Board of 25 companies provides support

and guidance

Evolution of Logistics

Fragmented

1960’s

Increased Integration

1970’s – 1990’s

Today

Reduce

Costs

Less

Inventory

Profit

Contribution

Sustainability Better Use

of Capital

Boardroom Expectations of SCM

Where Will Our Future Leaders Come From?

By 2015 at least 40% of new CEOs at

Fortune Global 500 manufacturers and

retailers will have supply chain experience.

Source: Gartner (2012)

The

• Every 8 seconds one of the baby boomers turns 65 (>7,000 per day).

• Some have postponed retirement but many retire with fewer

talented people to replace them – new generation 11% less.

• Raytheon HR executive: “60% of our workforce is ready to retire in

the next 5 years. We really need to step back and grow our talent.”

• 20 – 30% of top talent in the U.S. is going into a sector (e.g. finance,

consulting) that is not contributing to economic productivity (e.g.

supply chain).

Universities and industry need to work together to identify the

right skills needed to address these challenges.

The only thing that interferes with my learning is my education.

Albert Einstein

University recruits may be “book smart”…

but lack the necessary real-world experience to...

Aligning Curriculum to Demand

Key questions…

• Where do companies find their supply chain talent?

• Does this talent match the firms’ needs?

• What are universities doing to produce the right talent?

A university is like a manufacturing company – neither can afford to produce a product that has

little or no demand in the marketplace.

Source: Joel Sutherland

Next Generation of Logistics?

USD/SCMI conducted details surveys and

interviews with more than 100 supply chain

executives from a broad industry base asking

them…

“When hiring new supply chain talent, in what

topics or skills do you want them to be proficient?”

Source: USD Industry Survey 2012

What did Industry Tell Us?

• Undergraduate SC curricula should be broad, end-to-end,

and include global issues.

• No “deep dive” into one particular area - specialize at

graduate-level.

• Talent should be able to grasp “big picture”, understand

how all the pieces fit together.

• Internships provide real-world experience…the more

internships the better!

• Talent needs to know how a company makes a profit!

• Talent should possess core “Building Block” skills.

Source: USD Industry Survey 2012

“Good with information”

“Good at execution”

“Good with people”

Business & SCM Acumen

see bottom line impact & how

SCM pieces fit end-to-end

Analytic Problem Solving

can mine data & make critical

recommendations

Persuasion

communicate ideas

clearly, succinctly, with

confidence

Collaboration

influence across functions,

cultures and personality

types

Project Management

create plan, assess critical

path, align the troops

Proactive Drive

see what is needed and

take action without

reservation

Identify right solution

Drive the plan forward

Gain buy in for solution

Essential Skills for SCM Career Success Key Building Blocks

Source: USD Industry Survey 2012

What Should Universities Do?

• Pursue learning opportunities for undergrad and

graduate-level students through internships.

• Develop close relationships with industry in order to

understand current and evolving needs.

• Establish end-to-end curricula.

• Get deans, department heads, program directors and

professors engaged and supportive.

• Encourage and support student involvement in

professional associations (ISM, CSCMP, APICS, WERC).

What Should Industry Do?

• Actively recruit students for internships.

• Engage in various programs such as career fairs, educational

conferences at universities, networking events, and tours.

• Provide curriculum advice that aligns with industry’s needs.

• Engage faculty to pursue innovative supply chain ideas.

• Be a resource to provide understanding of industry needs/trends.

• Establish a clear career path for SC talent.

▫ Attract, develop and retain

Takeaways / Lessons-Learned

1. No two supply chains are the same

2. Industry values core skills over specific supply

chain skills

3. Real-world experience matters

4. Globalization is becoming increasingly

important

5. Industry-University relationships are

important

6. There is a supply chain talent crisis

Bumble Bee Foods - Overview

Bumble Bee is one of North America’s best-

known consumer packaged goods companies,

with leadership positions in virtually every

segment of the U.S. and Canadian shelf-stable

seafood market

Produces and markets shelf-stable tuna,

salmon, sardines, clams and other specialty

seafood products under the Bumble Bee®,

Clover Leaf®, Brunswick®, Snow's® and Beach

Cliff® brands

#1 U.S. and Canadian total shelf-stable seafood

#1 U.S. albacore tuna, canned salmon, sockeye

salmon, sardines and clams

#2 U.S. overall tuna and pink salmon

#1 Canadian albacore tuna, lightmeat tuna,

salmon, sardines and other specialty seafood

segments

Processes ~60% of the Company’s shelf-stable

seafood requirements

FYE December 2011 revenue of $1 billion

Bumble Bee Foods - Overview

Leading portfolio of well-recognized brands, with an opportunity to extend into non shelf-stable products

Nearly 90% consumer awareness levels for Bumble Bee and

Clover Leaf in the U.S. and Canada, respectively

Leader in overall shelf-stable

seafood category in Canada

#1 shelf-stable tuna and #1 or

#2 in almost every other major

shelf-stable seafood segment

Leader in U.S. shelf-stable

seafood category

#1 albacore tuna and #2

overall tuna brand

Leading positions in

salmon and specialty

seafood

#1 brand of sardines in

Canada and #2 brand of

value-priced sardines in

the U.S.

#1 brand of value-priced

sardines in the U.S.

#1 brand of chopped and

minced clams and clam juice

#1 brand of premium quality

sardines, kipper snacks and

anchovies

#1 brand of canned chicken &

dumplings, pouch chicken,

and player in canned chunk

chicken and chicken broth

products

Bumble Bee Foods - Overview “Best in class” supply chainLow cost operator with sustainable cost advantage versus competitors

Company maintains highly flexible supply chain, which combines Company-owned and leased

manufacturing facilities with third party co-packers

Process ~60% of own shelf-stable seafood requirements

Only company to have direct access to raw materials in each of the major oceans

Flexibility to take advantage of higher catches and lower prices in any of the world’s significant tuna

fishing regions

Importantly, all of the Company’s major fishery resources are being sustainably managed

Facilities strategically located adjacent to supply sources to enable direct access to fish, reduced labor

costs and preferential duty status

Unique supply chain configuration provides Bumble Bee

with a significant competitive advantage

Bumble Bee owned/contracted locations

Co-packers locations

Santa Fe Springs, CA

Fiji

Thailand

Mauritius

Trinidad

Puerto Rico

Cape May, NJ

Blacks Harbour, NB

Bumble Bee Expectations

• A talent pool that understands what end-to-end supply chain

means

• People who understand the world issues and how they affect a

global supply chain

• People who are committed to personal growth

• Students who understand the importance of strong foundation of

knowledge and experience

• Academia that collaborates with industry

• Avenues of education outside standard universities

What Makes Up The Bumble Bee Supply Chain?

• Procurement

• Purchasing

• Manufacturing

• Finance

• IT

• Global Planning

• Transportation

• Customer Service

• Logistics

• Inventory

• HR

• Project Management

These are the elements of an end-to-end supply chain!!!!

Challenges

• San Diego presents a difficult job market ▫ Not a heavy industrialized area

▫ Smaller job pool for companies to draw from

• Many specialized areas of the supply chain ▫ Most students take classes in some relevant areas but not all

▫ The students do not see the chain and how it all ties together

▫ Many schools do not offer classes in key areas

• Lack of work experience ▫ Companies often want both education and work experience

▫ Jobs that a student can obtain while going to school are often not related to supply chain

• Globalization ▫ Supply chain students must have knowledge beyond the borders

of the U.S.

Challenges

• Supply chain as a career ▫ Term “ Supply Chain “ is new. Do students know what it

is?

▫ Do students understand what is involved?

▫ Has industry sold the concept of supply chain?

• Opportunities ▫ With some many aspects to Supply Chain there are more

opportunities

▫ How does a person get into this field?

▫ How do they advance?

▫ What is the starting pay and benefits?

▫ Do companies take people right out of school?

• Availability of supply chain curriculum ▫ What schools offer end to end supply chain education?

Challenges

• Lack of comprehensive collaboration between industry and

academia

▫ What companies support supply chain programs at the university

level?

▫ Are companies a part of students education?

▫ Are jobs waiting at certain companies?

• Flexibility of movement from one company to another

▫ How much of a commitment is a student willing to make to a

company and a school?

Managing the Challenges

• Industry

▫ Companies understand the importance of supply chain

excellence

▫ Define supply chain excellence

▫ Identify short/long term goals in supply chain

▫ Outline the skill set needed to meet these goals

▫ Be involved in organizations that support supply chain education

(i.e. CSCMP Global and RT)

▫ Sell supply chain as a career through career fairs, involvement

in organizations, etc

▫ Create clear career paths for new hires that reduce overall

attrition

Managing the Challenges

• Academia

▫ Collaborate with industry. Understand what makes up a supply

chain

▫ Build curriculum that reflects industry supply chain. Build skill

sets that match industry need

▫ Be involved in organizations that support supply chain education

(i.e. CSCMP Global and RT)

Managing the Challenges

• Students

▫ Be flexible. Be willing to abandon traditional forms of

curriculum and work to widen your knowledge base.

▫ Look to interact with people in industry whenever possible

Organizations

Internships

Career days

Industry literature

▫ Be willing to travel

▫ Have a clear vision of what you want

Bumble Bee Experience

• Internships

• Industry Organizations

• Research and analysis

• Employee education

• Collaboration with universities

Current State

• Excellent Programs at various universities

• More programs that focus on end-to-end supply chain are needed

• Economy has changed the work dynamic

• Many industry organizations available to support and supplement

academia

• More companies see the importance of the execution side of the

business

• The industry is changing rapidly through technology.

• Not enough opportunities to work in supply chain and go to school

Final Thoughts

• Industry/Academia/Students must collaborate to develop supply

chain professionals.

• Supply Chain will be an area of substantial growth and

development in the next few years as companies look to have

faster data exchange and faster product movement.

• Supply Chain is always charged with reducing costs. Success is

limited in the current model. All participants in the supply chain

starting with raw material all the way to the consumer must begin

to collaborate to find cost reductions.

• The need for talented and knowledgeable people grows everyday.

These people will fuel the continued improvement in Supply Chain

as we move to 2020.

• Data and analytics will be key areas of focus in the supply chain.

(Big Data). Social media and other areas of data collection will

grow in importance

Questions?