The Supply Chain

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SCM An Introduction
The Supply Chain is the backbone of business and
the economy. It could be said that, 2nd only to
knowledge, SCM is the ultimate competitive
advantage.
http//www.youtube.com/watch?vOVYcxi1rDgEfeatur
eplayer_embedded DoT 607
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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

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• Welcome to the Miami Valley

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Every Business has a Supply Chain
... Every link in the Supply Chain must be
managed For every company, in every
industry.
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SCM/Acquisition Objectives

• 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 organizations 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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Opportunities/Regional Needs

• Regional work force needs driven by public and
  private sector influences
• DoD presence at WPAFB
• - Requires government employees and support
  contractors
• - Specialized knowledge of all facets of DoD
  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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I-70/I-75 90-MINUTE MARKET
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Opportunities/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 nations sixth largest civilian
  workforce in these professions
• - Responsible for procuring goods and services
• - Assuring global delivery
• DoD data indicate 50 of DoD civilian workforce
  eligible to retire
• - Local market has critical need to train and
  retain acquisition/ SCM professionals
• Regional economic development associated with I
  70/75 commerce
• - Drives growth in need for industry SCM
  specialists

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Ohios 16 Career Fields

• Agricultural Environmental Systems
• Arts Communications
• Business Administrative Services
• Construction Technologies
• Education Training
• Engineering Science
• Finance
• Government Public Administration
• Health Science
• Hospitality Tourism
• Human Services
• Information Technologies
• Law Public Safety
• Manufacturing Technologies
• Marketing
• Transportation Systems

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Career 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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Private Sector Career Fields
- Accounts management - Contracts management - Contract negotiation - Cost projection - Distribution - Engineering - Facilities management - Financial management - Forecasting - Inventory management - Logistics management - Maintenance management - Materials management - Manufacturing management - Operations management - Packaging management - Procurement - Process management - Product development - Production management - Production planning - Purchasing - Quality control - Requirements forecasting - Research and development - Supply management - Transportation - Warehousing
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DoD Acquisition Career Fields
- Auditing  - Business, Cost Estimating, and Financial Management - 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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SCM/Acquisition 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 - Relationship management - Strategic alliances - Strategic planning - Supplier evaluation - Team building - Transportation and traffic -

• Source www/ism.ws/career center

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SCM/Acquisition Competencies (ODE)
1. Professional Development/Networking 2. Professional Effectiveness 3. SCM Basics 4. Transportation 5. Warehousing/Material Handling 6. Packaging 7. Inventory and Supply Planning 8. SCM 9. Reverse Logistics, Environmental Mgt 10. Purchasing/Contracting 11. Production 12. Product Decisions 13. Pricing 14. Customer Relations Management 15. SC Planning and Management 16. Finance 17. Management 18. Risk Management 19. Project and Quality Management 20. Business, Law, Ethics, Legal Issues 21. Economics 22. Marketing Information Management 23. Writing Documentation 24. Information Technology Applic. for SCM 25. Facility, Mobile Equipment Maintenance 26. Entrepreneurial Processes
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SCM/Acquisition Competencies (ODE)

• DoD Special Emphasis
• 1. Professional Development/Networking
• Benefits of working for DoD
• 3. SCM Basics
• DoD Acquisition and Logistics Mission
• 8. SCM
• Role of Acquisition Logistics Professional in DoD
• Sustainment Logistics and Impact on Acquisition
  Logistics
• 10. Purchasing/Contracting
• DoD Purchasing/Contracting Policies and
  Procedures
• 15. SC Planning and Management
• Financial Considerations in DoD Acquisition

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Careers in SCM/Acquisition

• SCM/Acquisition is a critical discipline,
  important for business success
• Valuable career opportunities in SCM/Acquisition
• Increasing demand in both private and public
  sectors
• Opportunities for continuing career advancement
• Wide variety of associated functional specialty
  skills areas
• Attractive salaries and benefits
• Numerous educational options available

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Salary Information - Private Sector

• Acquisition/SCM Professionals
• Average Salary
• 2006 2009 34
• 78,470 98,200 100,000 or gt
• Average Salary Experience
• 2006 2009
• 65,389 75,917 1- 5 years
• 67,996 83,561 6 - 10 years
• 77,187 102,119 11 - 20 years
• 95,900 106,937 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 and May 2010

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Salary Information - DoD

• DoD Acquisition/SCM Positions
• GS/GM Step 1 Step 3
  Step 10
• 2007 2010 2007 2010 2007 2010
• Entry Level 04 26,170 28,500 27,914
  30,399 34,017 37,047
• 05 29,279 31.886 31,231 34,011
  38,062 41,448
• Progression 07 36,269 39,497 38,687
  42,131 47,150 51,350
• 09 44,364 48,313 47,321
  51,533 57,672 62.802
• 11 53,677 58,454 57,256 62,350
  69,782 75.987
• 12 64,335 70,062 68,625 74,733
  83,639 91,080
• Management/
• Professional 13 76,505 83,314 81,606
  88,868 99,459 108,307
• 14 90,405 98,452 96,431 105,015
  117,524 127,985
• 15 106,343 115,808 113,432 123,528
  138,245 150,551
• Plus very attractive benefits packages, including
  health and life insurance, education and
  training, leave, retirement savings plans
• Source www.fedjobs.com/pay/pay General Schedule
  Base Pay Locality

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SCM/Acquisition Salary Influenced by Education

• In general, salary levels increase with
  educational level
• 2006 2009
• Bachelors degree
• Average - 79,368 94,213
• Masters degree
• Average - 99,373 119,387
• Doctorate degree
• Average - __ 184,273
• All degree holders
• Technical Fields Average -
  93,977 112,503
• Supply Chain Mgt Average - __
  96,218
• Other Business Average -
  __ 101,927
• Liberal Arts Average - __
  99,920
• Source Institute for Supply Management Salary
  Survey, Jan/Feb 2006 and May 2010

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SCM/Acquisition Salary Influenced by
Certifications

• Higher Average Salaries with Professional
  Certifications
• 2006 2009
• With one or more professional certifications
• 80,758 vs. 76,411 98,701 vs. 96,792
• With Certified Professional in Supply Management
  (CPSM) certification
• __ 106,249 vs. 97,582
• With Certified Purchasing Manager (CPM)
  certification
• 83,172 vs. 75,337 99,314 vs. 97,286
• Source Institute for Supply Management Salary
  Survey, Jan/Feb 2006 and May 2010

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SCM/Acquisition Salary Influenced by Location
Average salaries vary by location
2006 Wash. D.C. area 103,036 North Carolina area 93,791 Illinois area 93,752 Other states gt 80,000 OH, CA, CT, GA, IA, MA, MD, NJ, NY, TX, VA - Other states lt 60,000 AR, OK, SC Geographic Region 2009 Pacific 95,040 Mountain 89,721 West North Central 99,405 West South Central 95,005 East North Central 92,280 IL, IN, MI, OH, WI East South Central 112,439 AL, KY, MS, TN South Atlantic 98,440 DC, DE, FL, GA, MD, NC, SC, VA, WV Mid Atlantic 105,561 NJ, NY, PA New England 106,841 CT, MA, ME, NH, RI, VT
Source Institute for Supply Management Salary
Survey, Jan/Feb 2006 and May 2010
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SCM/Acquisition Professions - Education Options
Associate Business (general) Accounting/Fin Mgt - 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 Supply Chain Mgt Combination - Technical Undergrad w/ Graduate in Bus

• Source www/ism.ws/career center

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Transportation Modes

• Five modes
• Highway (truck)
• Water
• Rail
• Air
• Pipeline

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Transportation Modes

• And now a sixth mode
• Telecommunications / Cyberspace

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Technological Breakthroughs

• RFID inventory tracking
• Standardized containers, pallets for ease of
  transfer
• Roadrailers, warehouse ships, etc.
• Multimodal solutions
• Ship ? Truck ?
  Train ? Truck ? ?

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Logistics Strategy Choices
Performance Dimension
Transportation Mode
Warehousing System
Delivery Reliability Highway, Air Direct Ship, Assortment, Spot Stock
Delivery Speed Air, Highway Direct Ship, Assortment, Spot Stock
Mix Flexibility Highway, Air, Rail Assortment, Spot Stock
Design Flexibility Highway, Air Postponement
Volume Flexibility Highway, Air Direct Ship, Assortment, Spot Stock
Cost Rail, Water, Pipeline, Highway Consolidation, Cross-Docking, Hub-and-Spoke
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__________ Mode
Backup slide - Transportation

Strengths Flexibility to pick up and deliver where and when needed Often the best balance between cost/flexibility and delivery reliability/speed Can deliver straight to the customer (increasing) Can be available 24/7 Weaknesses Not the fastest Not the cheapest
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Highway Mode
Backup slide - Transportation

Strengths Flexibility to pick up and deliver where and when needed Often the best balance between cost/flexibility and delivery reliability/speed Can deliver straight to the customer (increasing) Can be available 24/7 Weaknesses Not the fastest Not the cheapest
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__________ Mode
Backup slide - Transportation

Strengths Highly cost effective for bulky items Works best for high weight-to- value items Most effective when linked into multimodal system Weaknesses Limited locations Relatively poor delivery reliability/speed Often limited operating hours at docks
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Water Mode
Backup slide - Transportation

Strengths Highly cost effective for bulky items Works best for high weight-to- value items Most effective when linked into multimodal system Weaknesses Limited locations Relatively poor delivery reliability/speed Often limited operating hours at docks
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__________ Mode
Backup slide - Transportation
Strengths Highly cost effective for bulky items Can be most effective when linked into multimodal system Weaknesses Limited locations, but better than for water. Better delivery reliability/speed than water
Increasing part of multimodal solutions, dual
tracks on major routes
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Rail Mode
Backup slide - Transportation
Strengths Highly cost effective for bulky items Can be most effective when linked into multimodal system Weaknesses Limited locations, but better than for water. Better delivery reliability/speed than water
Increasing part of multimodal solutions, dual
tracks on major routes
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__________ Mode
Backup slide - Transportation

Strengths Quickest delivery over longer distances Can be very flexible when linked to highway mode Works best for low weight-to- value items Weaknesses Often most expensive, particularly on a per pound basis
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Air Mode
Backup slide - Transportation

Strengths Quickest delivery over longer distances Can be very flexible when linked to highway mode Works best for low weight-to- value items Weaknesses Often most expensive, particularly on a per pound basis
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Transportation Outsources

Common (public) carriers - Published rates and
schedules - Nondiscriminatory pricing -
Increased flexibility to partners Contract
carriers - Service for select customers -
Unlimited number of customers Third-Party
Logistics Providers (3PLs) - Service firms
specializing in logistics for other companies
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SCM Educational Opportunities

• SINCLAIR COMMUNITY COLLEGE
• Associate Degree Program and Certificate
  Programs
• Options Private Sector focus or DoD Public
  Sector focus
• Defense Acquisition University (DAU)-modeled
  courses
• in Acquisition, Logistics, and Sustainment
• A.A.S. Business Management, Supply Chain
  Management
• 103 quarter credit hours
• Supply Chain Management, 1-Year Certificate
• 47 quarter credit hours
• Workforce Development Programs
• Customized training to meet unique organizational
  needs
• Defense Acquisition Academy (DAA)
• DAU-modeled courses
• Acquisition, Logistics, Contracting, and Program
  Management

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MVAC
The Miami Valley Acquisition Consortium (MVAC) is
a joint academic, government, and industry
partnership preparing the Miami Valley workforce
for the challenges of tomorrow. - MVAC
Charter
MVAC works to facilitate an improved Miami Valley
workforce for DoD ATL and for public and private
sector logistics, procurement, and supply chain
management specialists.
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Defense Acquisition University
Capital and Northeast (Fort Belvoir) ATL WF
37,000
Mid-Atlantic (Pax River) ATL WF 23,000
West (San Diego) ATL WF 26,000
Midwest (WP AFB) ATL WF 20,000
South (Huntsville) ATL WF 27,000
Established August 1992 by United States Code
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Acquisition EducationBefore
GRADUATE
DAU
UNDERGRADUATE
COMMUNITY COLLEGES
HIGH SCHOOLS
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Acquisition EducationGoal
GRADUATE
DAU
UNDERGRADUATE
COMMUNITY COLLEGES
HIGH SCHOOLS
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SCM WORK FORCE SUPPLY
SCM WORK FORCE SUPPLY
EXECUTIVE EDUCATION
CAREER CHANGE
ADVANCED EDUCATION
BOTTOM-UP (ENTRY LEVEL)
BOTTOM-UP (ENTRY LEVEL)
TRADITIONAL
MVAC PLAN
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This budget will support these goals by
increasing the size of defense acquisition
workforce, converting 11,000 contractors to full-
time government employees, and hiring 9,000 more
government acquisition professionals by 2015,
beginning with 4,100 in -- in F.Y.
'10. Secretary of Defense Robert Gates
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DoD Acquisition Workforce
  Career Fields (13) ARMY NAVY/USMC AIR FORCE OTHER TOTAL
Auditing 2     3,485 3,487
Business, Cost Estimating, Financial Management 4,171 1,716 1,503 218 7,608
Contracting 10,042 5,018 7,371 5,314 27,745
Facilities Engineering 441 3,477   9 3,927
Industrial/Contract Property Mngt 125 56 27 321 529
Information Technology 2,733 744 1,116 248 4,841
Life Cycle Logistics 6,319 4,154 1,781 76 12,330
Production, Quality Manufacturing 2,193 2,000 334 4,439 8,966
Program Management 4,475 3,624 3,958 717 12,774
Purchasing 332 555 123 667 1,677
SPRDE - Science Technology   171 19 100 290
SPRDE - Systems Engineering 11,964 16,690 6,239 253 35,146
Test and Evaluation 2,140 2,446 2,598 94 7,278
Unknown 506   6 1,132 1,644
Total 45,443 40,651 25,075 17,073 128,242

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DoD Acquisition Workforce Generational
Composition
National National DoD DoD Civilian ATL Workforce Civilian ATL Workforce
Generation Workforce (millions) Workforce Workforce Workforce Workforce Workforce
Silent Generation (born before 1946) 11.5 6.5 45,625 6.7 6,624 5.9
Baby Boomers (1946-64) 61.5 34.9 438,971 64.5 74,887 67.3
Generation X (1965-76) 43.5 24.7 132,948 19.5 18,544 16.7
Generation Y (1977-1989 31.5 17.9 62,676 9.2 11,286 10.1
Millenium (1990-present) 28.0 15.9 153 0.0 0 0.0
Source Armour, Stephanie "Generation Y
They've Arrived at Work with a New Attitude" USA
Today, Nov 7, 2005, 18-28
Source OSD PR Report DoD Civilian
Workforce Statistics/DoD Demographics/May2006
Edition
Source ATL Datamart FY07 ATL Workforce
Count/ATL workforce data contains 456 files with
null for age
Even though our workforce is working longer,
there is a growing concern that a large and
experienced component of the DAW will start to
contractcreating gaps in critical skills
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Prominent SCM Professional Organizations and
Resources

• ISM Institute for Supply Management
• http//www.ism.ws/
• CSCMP Council for Supply Chain Management
  Professionals
• http//cscmp.org/
• SCC Supply Chain Council
• http//www.supply-chain.org/
• APICS Association for Operations Management
• http//www.apics.org/
• INFORMS Institute for Operations Research and
  Management Sciences
• http//www.informs.org/
• SOLE International Society of Logistics Engineers
  
• http//www.sole.org/
• AFCEA Armed Forces Communications Electronics
  Association International http//www.afcea.org/
• DAU Defense Acquisition University
• http//www.dau.mil

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SCM Links

• ODE - Logistics Education Summit
• http//www.ode.state.oh.us/GD/Templates/Pages/Sum
  mit/SummitPrimary.aspx?page731
• ODE Careers Links
• http//www.ode.state.oh.us/GD/Templates/Pages/ODE
  /ODEPrimary.aspx?Page2TopicID1759TopicRelation
  ID1777
• Ohio Means Business
• http//www.ohiomeansbusiness.com/key-industries/d
  istribution-and-logistics.php
• Ohio Business Development
• http//www.development.ohio.gov/research/document
  s/b800000000.pdf
• Logistics - Columbus, Ohio
• http//www.columbus.org/economic-development/logi
  stics/
• Ohio - Association of Procurement Technical
  Assistance Centers (APTAC)
• http//www.aptac-us.org/new/Govt_Contracting/find
  .php?whatsearchStateOH

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DAU Links

• Defense Acquisition University (DAU)
• http//www.dau.mil/default.aspx
• DAU Publications
• http//www.dau.mil/pubscats/default.aspx
• DAU Brochures
• http//www.dau.mil/pubscats/Pages/brochures.aspx
  
• DAU Guidebooks
• http//www.dau.mil/pubscats/Pages/Guidebooks.asp
  x
• DAU Acquisition Community
• https//acc.dau.mil/CommunityBrowser.aspx
• DAU Continuous Learning Modules
• https//learn.dau.mil/html/clc/Clc.jsp

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Interesting Logistics Sites

• Here are some links to interesting logistics
  sites
• The Aalsmeer flower auctionworlds largest
• http//www.youtube.com/watch?vV2CK2TatM_U
• http//www.youtube.com/watch?vxHs-NNQ5UVQ
• http//www.youtube.com/watch?v2U47yGQEon8NR1
• Worlds largest ship http//en.wikipedia.org/wik
  i/Knock_Nevis
• Worlds fastest train http//www.popularmechani
  cs.com/technology/transportation/4219935.html

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SCM Educational Opportunity Videos
Jake Barr Global Ops Leader Procter
Gamble Closing Supply Chain Talent
Gap http//www.supplychainbrain.com/content/video
s/2010-video/cscmp-26-50/closing-the-supply-chain-
talent-gap/ Lt Col Tim Pettit Air Force
Institute of Technology (AFIT) Asst Prof of
Logistics and SCM Research Projects at
AFIT http//www.supplychainbrain.com/content/home
/single-article-page/article/research-projects-at-
afit/
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Whats in a Name? Everything!!!

• There is a tremendous perception gap about the
  concept/content of the SCM field between
  academics and practitioners.
• Case in Point GE hires engineers and trains them
  in concepts that we teach to our SCM graduates in
  business schools.
• 25 executives from various industries, almost
  unanimous concern that recruiters dont know
  exactly what SCM graduates can do? When they
  know, they hire SCM graduates over engineers in
  many careers. Strong sentiment to rename the
  program.

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Challenge for Acquisitions SCM

• Make Acquisitions SCM a household name with
  employers
• Champion the cause of Acquisitions SCM within
  B-Schools and across campus not just as a
  research/academic but as a practical discipline
  with ultimate value-add to the economy and
  society
• Make Acquisitions SCM a household name in
  community colleges
• Make Acquisitions SCM a household name in
  K-12 Why should high-school students and
  counselors equate business education with just
  accounting, marketing, and finance?

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Educating the CustomerStrategies for Enhancing
the Demand

• Acquisitions/SCM brand-name recognition lower
  than Accounting, Marketing, Finance, MIS,
  Engineering.
• Need to enhance the SCM field to employers as the
  core value-add in shaping, setting up and
  improving infrastructure of all activities
• Promotion needed at all levels individual
  programs, institutions, the field level