Volume 12 Number 3 March 2014
Center for Supply Chain Management John Cook School of Business Saint Louis University NEWSLETTER
INSIDE THIS ISSUE Near-Shoring Gains Tracktion But Skepticism Persist Center Ranks High in Global Survey Feed Back from Our Students March Professional Development Programs Save The Dates Center News Photo Gallery Center Organization and Board Members Center for Supply Chain Office
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Near-‐Shoring Gains Tracktion But Skepticism Persists High-‐Tech Companies are becoming increasingly interested in near-‐shoring, bringing production closer to where products are sold and consumed, according to the fourth annual UPS Change in the (Supply) Chain Survey conducted by IDC Manufacturing Insights. The interest in near-‐shoring marks a shift away from the dominant manufacturing strategy of the past three decades, which focused on putting plants in countries with the lowest costs. According to this year’s survey, interest in near-‐shoring among supply chain executives has tripled in comparison to the 2010 survey. Twenty-‐seven percent of the survey takers said they were embracing near-‐shoring as a strategy. Of those interested in near-‐shoring, 77 percent said the main reason was a desire to improve service levels by bringing production closer to demand. Another 55 percent said near-‐shoring improved control over quality and intellectual property. Nevertheless, nearly three-‐fourths (73 percent) of responders said they had no plans to adopt this supply chain strategy. When asked why, 50 percent in that group said the cost benefit of manufacturing in low-‐cost countries like China remained compelling. Another 46 percent said the location of key suppliers remained a barrier to near-‐shoring. The above study is based on an IDC survey of 337 senior supply chain executives at high-‐tech manufacturers in North America, Europe, Asia-‐Pacific, and Latin America. A summary of the study’s findings can be can be found at www.ups.com/media/en/2013-‐UPS-‐Change-‐in-‐the-‐Supply-‐Executive-‐summary.pdf. Also, a similar story was carried in CSCMP’s Supply Chain Quarterly, Q4/2013.
Center Ranks High in Global Survey Eduniversal, a global ranking organization of masters programs, ranks our Center 55th in the world, in its report of the World Best Master of Science in Supply Chain Management 2013-‐2014 (www.best-‐master.com). The Eduniversal conducts annual survey of all master programs in the world (156 countries). In U.S. universities in this study, Saint Louis University ranked 9th. 2
The Center for Supply Chain Management Studies at Saint Louis University was ranked 16h in the U.S. by the U.S. News & World Report in 2013. The recognition of our programs is the result of our strength in linking our academic programs to industry practices in supply chain management and a strong participation by the Center’s Advisory Board in Center activities. The U.S. universities in the top 100 ranking of the best SCM master degrees by Eduniversal World Ranking are: Purdue University (#4) University of Texas at Dallas (#21) Penn State (#35) Arizona State University (#43) Case Western University (#45) Michigan State (#48) Indiana University (#50) University of Wisconsin-‐Madison (52) Saint Louis University (#55) Ohio State (#58) University of Maryland (#62) University of San Diego (#66) Washington University in St. Louis (#75) University of Minnesota (#82) University of MASS (#90) Temple University (#91) University of Toledo (#100)
Feedback from Our Students For the past 15 years, the Advisory Board, Instructors and Staff at the Center for Supply Chain Management Studies have strived for excellence in our training and educational programs. Student feedback and comments from our survey process at the end of each module has played a significant role in improving the quality and relevance of our programs. Whenever constructive suggestions are made by the students, the Center takes immediate corrective action to enhance our programs. This feedback is a factor that has enabled us to be recognized as one of the top SCM programs nationally and internationally. The following are two of the many responses the Center receive 3
during our effort to improve the quality of our programs. We would like to share several recent student comments with you for the current ISCM class. ‘First class, from initial contact through the class instruction, the instructors/professor, class facilities, food services and especially the class content were equal to or exceeding similar courses I've attended at UNC Chapel Hill and Stanford. I would highly recommend this class to other prospective students and having sent several of my employees here previously, I intend to send more as a preferred choice for supply chain courses.’ ‘Outstanding, world class from initial contact to end of the class. I will highly recommend to others.’
March Professional Development Courses Title: Risk Management in Supply Chain Operations Date: March 7, 2014 Instructor: Dana Hullinger, The Boeing Company Brief Description: Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Cost: $560 Where: The John Cook School of Business, Cook Hall 230 Title: Strategic Sourcing and Supplier Relationship Management Date: March 20 & 21, 2014 Instructors: Kevin von Grabe, LeanCorr Brief Description: Strategic sourcing is an institutional procurement process that continuously improves and re-‐evaluates the purchasing activities of a company. Procurement is the acquisition of goods, services or works from an external source. It is favorable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. Cost: $1,120 Where: The John Cook School of Business, Cook Hall 230 4
Save-‐the-‐Dates • April 10 & 11, 2014: Transportation and Warehousing Management • April 22 & 23, 2014: Product Safety Management
Member discounts ranging from 10-‐30 percent are available to Center members for these programs
Center News Sourcing is a critical element in effective and efficent supply chains. You can use the hyperlink to access a pubicaltion from KPMG about Strategic Vision of the Sourcing Market 2014 .
Center Programs and Registration You can access the full range of programs and register at enter at the Center for Supply Chain Management Studies – A Center of Distinction.
Managing Inventories for Increased Profitability Photo Gallery Instructor Ray Scott and the 2014 Spring ISCM Class 5
Center Organizations & Board Members
AEP River Operations Ameren Services
Mr. George Piccioni Mr. Dennis Weisenborn & Mr. Mark Brandt Mr. Gary Welker Mr. Bob Elfanbaum Mr. David Thole, Mr. Steve Georgevitch, & Ms. Joann Franke Mr. Ed Lampitt Mr. Frank Cirimele Mr. Al Middeke & Mr. Joe Ackerman Mr. Jeroen Kanter Mr. Ray Martin Mr. George Morrison Mr. Frank Fischer Mr. Kevin Lawrence Mr. Bob Bielecki Mr. Kevin Mowery Mr. Marty Tendler & Mr. Pete Spanos Mr. Russ Broker Mr. Carlton Adams Ms. JoAnne Levy Dr. John Hamilton Mr. August (Gus) Schaefer Mr. Tom Duwel Mr. Kurt Grimminger Dr. Ik-Whan Kwon
Anheuser-Busch/InBev Asynchrony The Boeing Company Cassidy Turley Company Cass Information Systems Emerson Company Energizer Hodgson Mill Mallinckrodt Pharmaceuticals Mesa Logistics Monsanto Company Nordyne, Inc. Novus International, Inc. Nestle Purina Pet Care OHL Peabody Energy ROi Saint Louis University Underwriter Laboratories UniGroup, Inc. World Wide Technology Ex-Officio
Honorary Members Mr. Bob Drury, Mr. Gerald Hayden, Mr. Jim Kavanaugh, Mr. Tom Olson
Center for Supply Chain Management Office Scott Safranski, Ph.D., Interim Dean 7
Ik-Whan G. Kwon, Ph.D., Director John W. Hamilton, Ph.D., Associate Director Mrs. Dawn DeLaria, Administrative Assistant Center for Supply Chain Management John Cook School of Business Saint Louis University 3674 Lindell Blvd. DS 458 Saint Louis, Mo 63108 http://cscms.slu.edu Phone: (314) 977-3617 Fax: (314) 977-2068 Email: email@example.com