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Volume 12            Number  11      November  2014    

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

NEWSLETTER   INSIDE  THIS  ISSUE   Distinguished Speaker Event November Professional Development Course Schedule Save The Dates Center News - Food for Thought Center Picture Gallery Center Organization and Board Members Center for Supply Chain Office


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The Center  for  Supply  Chain  Management  welcomes  Dr.  Chris  Caplice  of   MIT  to  the  2014  Annual  Distinguished  Guest  Speaker  Series     The  John  Cook  School  of  Business  Center  for  Supply  Chain  Management  will  welcome   Dr.   Chris   Caplice,   the   executive   director,   Center   for   Transportation   and   Logistics   at   Massachusetts  Institute  of  Technology  (MIT)  as  a  keynote  speaker  for  the  2014  Annual   Distinguished   Guest   Speaker   Series   on   Thursday,   November   20.   The   event   will   be   held   on   campus   at   Saint   Louis   University’s   St.   Francis   Xavier   (College)   Church   ballroom   at   11:30  a.m.     His   presentation   title   is,   “Disrupting   the   Dominant   Design   of   Distribution”   and   will   discuss   how   supply   chains   and   distribution   networks   in   the   United   States   (and   elsewhere)   have   settled   into   a   dominant   design   where   finished   products   are   manufactured   overseas,   imported   into   the   United   States   through   very   few   concentrated   points   of   entry   (ports),   and   distributed   through   a   network   of   tiered   distribution   centers.    This   has   resulted   in   very   concentrated   flows   from   a   very   few   number  of  ports.    This  talk  discusses  the  dominant  design  for  distribution  in  the  United   States  and  introduces  four  emerging  and  growing  macro  trends  that  could  potentially   have   significant   impacts   on   this   dominant   design:   Densification   of   Product,   Diversification   of   Sales   Channels,   Decentralization   of   Production   and   Digitization   of   Products.     As   the   executive   director   of   the   Center   for   Transportation   and   Logistics,  he  is  responsible  for  the  planning  and  management  of   the   research,   education   and   corporate   outreach   programs   including   the   Supply   Chain   Exchange   and   the   Master   of   Engineering  in  Logistics  (MLOG)  graduate  program.  He  is  also  the   founder   of   the   MIT   FreightLab,   a   research   initiative   that   focuses   on   improving   the   way   freight   transportation   is   designed,   procured   and   managed.   His   primary   research   is   in   the   design,   procurement   and   management   of   freight   transportation   systems   including   combinatorial   auctions,   robust   planning   and   performance   metrics.   Dr.   Caplice   has   presented   and   published   in   numerous   business   and   academic   conferences   and   journals.     Prior   to   joining   MIT,   Dr.   Caplice   held   senior   management   positions   in   supply   chain   consulting,   product   development   and   professional   services   at   several   companies   2

including,  SABRE  and  PTCG.  He  is  also  the  Chief  Scientist  for  Chainalytics,   the  leading  analytical  supply  chain  consulting  firm  where  he  pioneered  and  leads  the   Chainalytics   Model   Based   Benchmarking   Consortium   (MBBC).   Dr.   Caplice   served   five   years   in   the   Army   Corps   of   Engineers,   achieving   the   rank   of   Captain.   His   writing   has   appeared   in   the   Journal   of   Business   Logistics,   the   International   Journal   of   Logistics   Management   and   Transportation   Research.   He   received   a   Ph.D.   from   MIT   in   1996   in   Transportation  and  Logistics  Systems,  a  Master  of  Science  in  Civil  Engineering  from  the   University   of   Texas   at   Austin   and   a   Bachelor   of   Science   in   Civil   Engineering   from   the   Virginia  Military  Institute.     For  more  information  and  to  register  for  the  event,  contact  the  Center  for  Supply  Chain   Management:  or  314-­‐977-­‐3617.    To  register  online,  click  here.  

2015  Spring  Semester  Registration  is  Open     You  can  access  the  full  range  of  programs  and  register  at  enter  at  the  Center  for  Supply   Chain  Management  Studies  –  A  Center  of  Distinction.    Center  discounts  for  members   range  from  10-­‐30  percent  based  membership  level.  To  register,  click  here.  

November  2014  Professional  Development  Program  Schedule     Subject:  Risk  Management  (Distance  Learning)   Date:    TBD   Instructor:  Mr.  Dana  Hullinger,  Director,  Supply  Chain  Strategy  &  Early  Supplier   Involvement,  Supplier  Management,  The  Boeing  Company,  Integrated  Defense   Systems   Brief  Description:  This  on-­‐line  program  covers  the  critical  aspects  of  risk  managementand  how  to   mitigate  risk.    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[1]  or  to  maximize  the  realization  of  opportunities.      

Subject: Managing  Transportation  and  Warehousing   Date:  November  20-­‐21,  2014   Instructor:  Tom  Goldsby,  Ph.D.  Professor  of  Supply  Chain  Management  at  Ohio  State   University  


Brief Description:  Transportation  is  the  movement  of  and  goods  from  one  location  to  another.   Modes  of  transport  include  air,  rail,  road,  water,  cable,  pipeline  and  space.  The  field  can  be  divided   into  infrastructure,  vehicles  and  operations.  

Cost: $1,200   Place:  Room  CK230  Cook  School  of  Business,  Saint  Louis  University  

Subject:  The  2014  Annual  Distinguished  Guest  Speaker  Series   Co-­‐sponsor:  Scott  Air  Force/St.  Louis  chapter  of  National  Defense  Transportation   Association   Date:  November  20,  2014   Speaker:  Chris  Caplice,  Ph.D.  Executive  Director  of  the  Center  for  Transportation  and   Logistics  at  MIT.   Topic:  Disrupting  the  Dominant  Design  of  Distribution   Place:  Lower  Level  Ballroom  at  Xavier  College  Church  (Grand  and  Lindell  Blvd)  


December 12,  2014:  ISCM  Team  Research  Presentations   December  12,  2014:  Fall  2014  ISCM  Class  Graduation  Ceremony    

December 11,  2014  

Advisory Board  Meetings    

Center  News  -­‐  Food  for  Thought     Supply  chain  analytics  tops  executives'  priority  list  for  technology   investment    

Most respondents   to   an   IBM   survey   said   they   plan   to   implement   advanced   analytics   and  modeling  in  the  next  two  to  five  years.  Visibility  was  second  on  their  priority  list.   Chief  supply  chain  officers  plan  to  invest  in  analytics,  business  intelligence,  and  other   software   tools   to   bring   more   visibility   to   their   supply   chains,   according   to   "Orchestrating  a  customer-­‐activated  supply  chain,"  a  report  issued  by  the  IBM  Institute   for  Business  Value.  IBM  canvassed  201  chief  supply  chain  officers  from  16  countries  for   the  research.   4

The study  found  that  92  percent  of  supply  chain  executives  said  they  expect  to  have   implemented  advanced  analytics  in  the  next  two  to  five  years,  and  80  percent  said  the   same   for   modeling   to   optimize   flows.   (Those   figures   include   a   small   number   of   respondents  who  already  have  those  capabilities  in  place.)  In  addition,  62  percent  said   that  in  the  next  three  to  five  years  they  plan  to  invest  in  software  and  tools  that  will   help  them  achieve  supply  chain  visibility.     The  report  also  noted  that  96  percent  of  the  supply  chain  executives  surveyed  expect   to   have   achieved   a   higher   level   of   collaborative   planning   and   execution   with   their   partners   within   the   next   two   to   five   years.   (Forty-­‐seven   percent   of   respondents   report   that   they   have   already   reached   that   goal.)   In   that   regard,   64   percent   of   survey   respondents   plan   heavier   use   of   software   for   collaborative   intelligence   during   that   period.     The   research   found   that   supply   chain   organizations   are   still   struggling   to   gain   a   big-­‐picture  view  of  their  operations.  When  IBM  conducted  a  similar  study  in  2010,  70   percent   of   chief   supply   chain   officers   who   participated   predicted   that   their   supply   chain  flows  would  be  optimized  within  five  years.  But  in  the  2014  study,  only  9  percent   of  respondents  said  they  had  accomplished  that  goal.   The  study  covers  considerably  more  ground  on  a  host  of  topics  related  to  strategy  and   planning.  The  full  report  is  available  here.     Investment  areas  for  supply  chain  chiefs     Cost  reduction/cost  containment     75  percent     Supply  chain  visibility         62  percent     Sales  and  operations  planning       56  percent     Business  intelligence/analytics       54  percent     Inventory  optimization         54  percent       Source:   IBM   Institute   for   Business   Value,   "Orchestrating   a   customer-­‐activated   supply   chain"  (2014)  



Picture Gallery  

Strategic  Sourcing     6

Reducing Variability  in  the  Supply  Chain   7

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.  Fred  Perreand  &  Mr.  Joe  Ackerman   Mr.  Jeroen  Kanters   Mr.  Ray  Martin   Mr.  George  Morrison   Mr.  Frank  Fischer   Mr.  Mario  Morhy   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: November 2014  

Center for Supply Chain Management at the John Cook School of Business - Saint Louis University

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