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Volume  12            Number  5        May  2014    

Center  for  Supply  Chain  Management   John  Cook  School  of  Business   Saint  Louis  University   NEWSLETTER    

INSIDE  THIS  ISSUE   New Emerson Board Member. Regualtory Compliabce Workshop May Professional Develop Courses Save The Dates Center News Photo Gallery Center Organization and Board Members Center for Supply Chain Office

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New  Board  Member  from  Emerson     The   Center   is   pleased   to   announce   that   Mr.   Fred   Perreand   from   Emerson   has   been   invited   to   serve   on   the   Center’s   Advisory   Board.   He  is  replacing  Mr.  Al  Middeke  who  stepped  down  from  his  position   with  Emerson  to  pursue  supply  chain  projects  in  the  private  sector.       Fred   Perreand   has   worked   for   Emerson   since   1999.       He   is   currently   the   Vice   President   of  Supply  Chain  for  Emerson’s  Industrial  Automation  and  Commercial  and  Residential   Solution   Business   Groups.       He   is   responsible   for   leveraging   global   material   sourcing   and   logistics   to   improve   service   levels,   operating   profit   and   cash   flow   for   the   15   Business   Units.     In   addition,   his   team   has   responsibility   for   Product   Environmental   Compliance  and  Trade  Compliance.     Similar  to  his  current  role,  Fred  served  for  seven  years  as  the  Vice  President  of  Supply   Chain  for  Emerson’s  Process  Management  business,  which  is  the  global  industry  leader   in  process  management  devices  and  systems  within  the  chemical,  oil  and  gas,  refining,   power,   water   and   wastewater   industries.       In   addition,   Fred   was   the   Director   of   Procurement   for   Emerson   Network   Power   Connectivity   Solutions.       In   this   role,   his   primary   responsibility   was   consolidating   and   leveraging   the   strategic   procurement   activities   across   a   diverse   group   of   product   companies   with   a   global   footprint   in   Minnesota,   Mexico,   England   and   China.         During   his   earliest   tenure   with   Emerson   Corporate   Procurement,   Fred   managed   Emerson’s   Strategic   Sourcing   solution   (MIN),   which  remains  as  the  platform  for  centralized  supply  chain  initiatives.     Previous   to   Emerson,   Fred   held   leadership   roles   in   Production   /   Operations   Management   for   thermal   management   solutions   manufacturer   and   Quality   Management  for  manufacturer  of  bulk  material  handling  equipment.   Fred  earned  a  Bachelor  of  Mechanical  Engineering  from  the  University  of  Louisiana  and   a  Master  of  Science  in  Industrial  Automation  from  Carnegie  Mellon  University.      Fred   and   his   wife   Sandy,   who   is   an   alumnus   of   SLU,   live   in   Chesterfield   with   their   three   children.  


REGULATORY  COMPLIANCE  WORKSHOP     Product  compliance  has  become  increasing  complex  and  poses  great  challenges  for   supply   chain   professionals.   It   has   become   more   urgent   as   sourcing,   manufacturing   and  delivering  takes  a  global  stage.    Tens  of  millions  of  finished  products  were  lost   due  to  failing  compliance  in  this  country.     Manufacturers   are   seeking   help   from   supply   chain   professionals   to   manage   the   entire   supply   chain   spectrum   to   minimize   potential   losses   due   to   complex   regulatory  compliance  requirements.      In  order  to  meet  such  challenges,  the  Center   in   collaboration   with   ADK   Information   systems,   a   leading   product   safety   educational  organization,  offers  a  two-­‐day  workshop  on  compliance  at  Saint  Louis   University  with  prominent  instructors  in  this  field  from  around  the  country.     This   two   day   workshop   combines   an   overview   of   the   regulatory   environment,   tools  that  product  safety,  risk  and  compliance  managers  can  use  in  responding  to   various   compliance   issues   and   decision   making   points,   and   current   trends   in   the   compliance   area   of   the   U.S.   Consumer   Product   Safety   Commission.     This   workshop   will   feature   hands   on   exercises,   as   well   as   practical   take-­‐-­‐-­‐away   insights   into   managing  in  the  current  compliance  environment.  This  course  is  designed  for  any   product   safety   manager   or   professional   who   need   to   understand   compliance   and   regulations  affecting  consumer  product  companies,  including  design  engineers,   safety   engineers,   product   development,   product   integrity,   compliance   officers,   operations  and  production  personnel,  and  consultants  working  with  companies  in   these  areas.    We  are  offering  a  Regulatory  Compliance  Workshop  on  May  21&  22,   2014.  

  May  Professional  Development  Courses     Title:  Supply  Chain  Research  Project  Presentations   Date:  May  16,  2014   Instructor(s):  John  Hamilton,  Ph.D.,  Assistant  Professor  of  Management  and  Associate                             Director  of  the  Center  and      Mr.  Frank  Fischer,  President  of  Mesa  Logistics  Group   Brief  Description:  This  is  the  capstone  of  the  Integrated  Supply  Chain  Management  certificate   program.    The  projects  cover  a  wide  range  of  supply  chain  functions  and  initiatives.      

Cost:  Included  in  certificate  fee   Where:  The  John  Cook  School  of  Business,  Cook  Hall  classroom  CK  230     3

Title:  Regulatory  Compliance  Workshop   Date:  May  21  and  22,  2014   Instructor:  Team  Based   Brief  Description:  This  workshop  surveys  domestic  and  international  compliance  and  emerging   harmonization  among  regulatory  authorities  in  different  countries.    The  workshop  focuses  on  the   impact  of  regulation  and  compliance  has  on  testing,  certification,  reporting,  product  recalls,  and   import  /  export  compliance  posed  by  multi-­‐country  obligations.  

Cost:  $1,195   Where:  The  John  Cook  School  of  Business,  Cook  Hall  classroom  CK  230   ADK  Regulatory  Compliance  Workshop  online  registration  link.  

Save-­‐the-­‐Dates       • August  7&  8,  2102:  Project  Management     • August  21,  2014:  SCM  101  Integrated  Supply  Chain  Management  Foundation*   • Auguts22,  2014:Supply  Chain  Simulation  &  ISCM  Project  Management     *Required  for  the  Integrated  Supply  chain  Management  Certificate  Program  

  Member  discounts  for  Center  professional  development  range  from  10-­‐30  percent   based  membership  level  are  available  to  Center  members.  

Center  News     Board  Meeting  Dates  in  2014     September  12,  2014   December  12,  2014     All  Board  Meetings  will  be  held  from  3:30  to  5:30PM  at  Bannister  House.     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.     4

Supply  Chain  Talent:  The  Missing  Link  in  Your  Future?     Supply   chain   talent   is   a   crucial   agent   in   successful   execution   of   supply   chain   management.   In   spite   of   flux   of   many   supply   chain   programs   in   colleges   and   universities,  we  face  a  daily  challenge  to  place  right  talents  in  the  organization.     Ms.   Lora   Cecere   shared   her   thoughts   on   this   topic   (published   August   12,   2013   in   SC   Digest).  Here  is  her  story.    Today,  I  finished  up  a  report  on  supply  chain  talent.  After   doing  the  analysis  of  the  results,  I  even  more  firmly  believe  that  supply  chain  talent  is   the  missing  link  in  the  supply  chain.    In  figure  1,  I  outline  the  company’s  biggest  gaps.  It   is  the  sourcing  and  development  of  mid-­‐management  talent.  YOWZA!  It  is  large.    

      Isn’t   this   ironic?   Most   of   the   current   company’s   efforts   are   focused   on   new-­‐hire   recruitment   or   mentoring   for   high-­‐performance   development   for   executive   level   positions.   There   are   few   companies   that   understand   and   have   addressed   the   mid-­‐management  talent  issue.  OUCH!         5

Opportunity  to  improve.  Overall,  companies  rate  their  capabilities  to  manage  supply   chain  talent  worse  than  their  peers.  In  the  study,  when  companies  were  asked  to   self-­‐assess  their  capabilities  to  manage  supply  chain  talent,  17%  self-­‐rated  that  they   perform  better  than  their  peer  group  while  34%  reported  that  they  do  worse  than  their   peers.  And,  we  all  know  that  self-­‐assessment  scores  tend  to  overstate  capabilities.  <It   is  a  bit  like  me  reporting  my  weight  on  my  driver’s  license.>  I  think  that  it  is  worse  than   reported.   High  turnover.  Average  turnover  of  supply  chain  managers  is  15%.  It  is  increasing.  In   the   study,   46%   of   companies   attempt   to   hire   from   within   the   company,   and   17%   fill   roles  primarily  through  recruiting  talent  from  other  companies.    External  recruiting  is   becoming  less  and  less  successful.   Shortage  of  talent.  The  average  company  in  the  study  has  four  positions  open  for  five   months.   Companies   are   is   feeling   the   pain   of   open   positions.   The   most   difficult   6

positions   to   fill   are   in   the   areas   of   planning   that   require   both   a   technical   mastery   of   technology  and  an  organizational  understanding  of  the  business  drivers.   Stiff  competition  for  college  graduates.  Today,  there  is  a  6:1  demand  to  supply  ratio  for   new  college  graduates  in  supply  chain  management.  Competition  is  intense  and  there   is   a   lot   of   effort   to   attract   the   best   and   brightest   from   college   recruiting;   however,   the   larger  issue  is  with  the  retention  of  mid-­‐management  talent.   Working  on  the  Right  Stuff?  In  short,  we  need  to  broaden  our  scope.  The  current  focus   is  on  recruiting  college  graduates  and  high-­‐performing  talent  with  little  attention  being   given   to   middle-­‐management   talent   development.   Only   23%   of   companies   responding   to  the  study  have  a  planned  cross-­‐functional  training  program  for  existing  employees.   This  study  points  out  the  need  for  skill  development  in  the  areas  of  training  and  career   progression  to  give  employees  cross-­‐functional  breadth.  

  Photo  Gallery     Transportation  and  Warehousing  

  Dr.  Tom  Goldsby   7

Reducing  &  Mitigating  Variability  in  the  SC  class  and  Dr.  Justin  Goodson  


Center  Organizations  &  Board  Members   AEP  River  Operations                                       Ameren  Services                                                          


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                           Peabody  Energy                                 ROi           Saint  Louis  University                           Underwriter  Laboratories   UniGroup,  Inc.                                                       World  Wide  Technology                   Ex-­‐Officio                                                                        







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.  Carlton  Adams   Ms.  JoAnne  Levy   Dr.  John  Hamilton   Mr.  August  (Gus)  Schaefer   Mr.  Tom  Duwel   Mr.  Kurt  Grimminger   Dr.  Ik-­‐Whan  Kwon  

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   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 Phone: (314) 977-3617 Fax: (314) 977-2068 Email:


Center for Supply Chain Management: May 2014