the logistics of success dan gilmore editor supply chain digest
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The Logistics of SuccessThe Logistics of Success
Dan GilmoreEditorSupply Chain Digest
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About Supply Chain DigestAbout Supply Chain Digest
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“SupplyChainDigest is rapidly becoming the portal of choice for the supply chain and logistics executive." Ralph Drayer Former Chief Logistics Officer Procter & Gamble
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Logistics Versus Supply ChainLogistics Versus Supply Chain
• Some use the terms almost interchangeably
• Most think Logistics is a subset of Supply Chain Management
• Logistics: “Management of goods while in motion or at rest”
• Supply Chain Management is more comprehensive scope
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Defining SCMDefining SCM
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Defining SCMDefining SCM
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SCOR ModelSCOR Model
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Definition is ExpandingDefinition is Expanding
• Dr. John Gattorna:
“SCM is a combination of processes, functions, activities, relationships and pathways along which products, services, information, and financial transactions move in and between enterprises, in both directions.”
• Sounds a like what used to be called “Operations”
• The Difference: It’s about the Links or the “Network”
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My Favorite ConceptMy Favorite Concept
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Huge Percent of “Product Company” CostsHuge Percent of “Product Company” Costs
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60-90% of Total Costs is Common60-90% of Total Costs is Common
Even Service Industries now Even Service Industries now looking at their Supply Chains looking at their Supply Chains
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Significant Percent of Overall US CostsSignificant Percent of Overall US Costs
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The Impact of GlobalizationThe Impact of Globalization
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Puts New Premium Puts New Premium on Logistics Excellenceon Logistics Excellence
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Nike ID Shoe’s JourneyNike ID Shoe’s Journey
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Reaching Emerging MarketsReaching Emerging Markets
• Where the Sales growth will come from
• Infrastructure, capabilities, laws, vary dramatically across Countries
• Result: 190+ Supply Chains
• Leading global companies already managing at this level
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This Takes Talent – and Lots of ItThis Takes Talent – and Lots of It
• “Demand for top supply chain talent will exceed the supply for at least the next 10 years.”
• National Association of Colleges and Employers found that 48% of US companies plan to snap up supply chain and logistics grads in 2011
• Salaries on rise at all levels
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Dave MacEachernDave MacEachernSpencer StuartSpencer Stuart
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New Skills Sets RequiredNew Skills Sets Required
• From “technical” to business skills
• From “doing” to influencing”
• Communications
• “Supply chain finance”
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The Cons of a Supply CareerThe Cons of a Supply Career
• Relentless pressure to reduce costs
• Not often a route to the top
- Changing?
• Lots of outsourcing
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Lee ScottLee ScottFormer WalMart CEOFormer WalMart CEO
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The Path to get ThereThe Path to get There
• Most professionals today moved into supply chain career path by accident
• Changing with aggressive university education program development
• Growing number of undergrad programs
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Impact on US and State CompetitivenessImpact on US and State Competitiveness
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Great Companies and Programs in OhioGreat Companies and Programs in Ohio
Companies• Procter & Gamble
• Limited Brands
• Kroger
• Wright Patterson Air Force Base
• Exel Logistics
• FKI Logistix
• Supply Chain Digest?
Universities
• Ohio State
• Miami University
• Wright State
• University of Dayton
• Sinclair College
• Etc.
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Summing it UpSumming it Up
• Supply chain management and logistics are disciplines that make companies and the world run
– Increasingly a “board room issue”
• Very attractive career path
• At the heart of “Sustainability”
• Critical component and US and State effectiveness and cost of doing business that must be developed
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