master supply chain management 2014
DESCRIPTION
Presentation of the Master Supply Chain Management that Tilburg School of Economics and Management of Tilburg University offers.TRANSCRIPT
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
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