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SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008

SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008. Marsha J. Loges Assistant Professor MAN Department 937 512-3309 marsha.loges@sinclair.edu. Supply Chain. Introduction What is a Supply Chain and why does it need to be managed? What is Acquisition/SCM?

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SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008

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  1. SUPPLY CHAIN MANAGEMENT Information Sessions Spring 2008 Marsha J. Loges Assistant Professor MAN Department 937 512-3309 marsha.loges@sinclair.edu

  2. Supply Chain

  3. Introduction What is a Supply Chain and why does it need to be managed? What is Acquisition/SCM? What are the Regional Needs? What are the SCM Career Opportunities? What are the SCC SCM Program Options? Questions and Answers Careers in Acquisition/SCMContents

  4. What is a Supply Chain? • Why does it need to be managed?

  5. PRODUCTION } Supplier Supplier Storage Mfg. Storage Distrib. Retailer Customer Supplier Typical Supply Chains PURCHASING Receiving Storage Operations Storage DISTRIBUTION

  6. Upstream Downstream Second TierSupplier First TierSupplier Distributor Retailer Final Alcoa Meijer Alcoa Ball Corp Cola Bottling Co. M&M customers Transportation companies Supply Chain Flow

  7. Consider your raisins...

  8. Raisins Supply Chain Materials/Supplies: Seeds, plants, fertilizers, pesticides, water, + Irrigation systems, planting/harvesting tools, farming vehicles, carts, + Paper, cans, cartons, crates, pallets, dyes, + Services: Agricultural specialists, technical services, equipment maintenance, marketing, monitoring, quality control, planning/forecasting, packaging/printing, + Product Distribution: Packaging, Transportation, Warehousing, Wholesale and Retail Distribution

  9. From the grape vineyards, to the drying fields, to the processors... To the distributors, to the wholesalers, to the grocery shelves... To the consumers... ... Every link in the Supply Chain must bemanaged.

  10. Every Business has a Supply Chain… ... Every link in the Supply Chain must bemanaged… … For every company, in every industry.

  11. What is Acquisition/SCM?

  12. SCM relates to movement of goods between suppliers, manufacturers, consumers Fundamental processes and practices necessary for efficiency Goal of SCM: To positively impact the organization’s bottom-line while delivering the best goods & service to customers at the lowest possible cost SCM is integral to success of all business operations Narrowly defined, Acquisition relates to research, development, and procurement of military systems Broadly defined, Acquisition includes getting the right product, to the right place, at the right time, at a reasonable cost What is Acquisition/SCM?

  13. Objectives of SCM: - Provide an uninterrupted flow of materials, supplies, services required to operate the organization - Keep inventory investment and loss at a minimum - Maintain and improve quality - Find or develop competent suppliers - Standardize, where possible, the items bought - Purchase required items, services at lowest total cost - Achieve productive working relationships with other functional areas within the organization - Accomplish purchasing objectives at lowest possible level of administrative costs - Improve organization’s competitive position Source: Leenders, Michiel R., Fearon, Harold E., Flynn, Anna E., and Johnson, P. Fraser, Purchasing and Supply Management, 12th edition, McGraw-Hill, Boston, 2002. Acquisition/SCMObjectives

  14. Processes for coordinated supplier-to-consumer systems Identifying needs for raw materials, supplies, components, systems Developing specifications, performance requirements Computing quantity requirements Selecting sources and negotiating agreements/contracts Acquiring, transporting, and storing inventory Managing and maintainingoperations Managing logistics Acquisition/SCMProcesses

  15. What can SCM do?

  16. What are the Regional Needs?

  17. I70/I75 90-MINUTE MARKET x

  18. Regional work force needs driven by private and public sector influences DoD presence at WPAFB - Requires government employees and support contractors - Specialized knowledge of all facets of acquisition and logistics "90 Minute Market" reach of Interstate 70/75 commerce corridor - Requires industry specialists - Expertise in all aspects of supply chain management Acquisition/SCMRegional Needs

  19. Driven by DoD needs, Greater Dayton area has major concentration - Over 6,000 professionals in various areas of SCM - Both private and public sectors Other public agencies, private businesses require SCM expertise - Procurement, shipping, trucking, order fulfillment, warehousing Ohio has nation’s sixth largest civilian workforce in these professions - Responsible for procuring goods and services - Assuring global delivery to the U.S. military whenever needed Acquisition/SCM Regional Needs (continued)

  20. Acquisition/SCMRegional Needs (continued) • DoD data indicate 50% of civilian workforce eligible to retire - Local market need is critical to train and retain SCM professionals • Regional economic development associated with I 70/75 commerce - Drives growth in need for industry SCM specialists

  21. What are the SCM Career Opportunities?

  22. Specialized area; growing in importance - Strategic challenges for businesses - Consumer expectations, industry advancements, global competition Varied duties may include: - Acquisition of materials, services and equipment - Planning and policymaking - Product development and control - Contract development and forecasting - Production planning and scheduling - Warehousing and distribution Source: Burt, David N., Dobler, Donald W., and Starling, Stephen L., World Class Supply Management: The Key to Supply Chain Management, 7th Edition, McGraw-Hill, Boston, 2003. Acquisition/SCMCareer Fields

  23. DoD Acquisition Career Fields

  24. Acquisition/SCM Private Sector Career Fields

  25. DoD Acquisition/SCM Positions Step 1 Step 3 Step 10 Entry Level GS-04 $ 26,170 $ 27,914 $ 34,017 GS-05 $ 29,279 $ 31,231 $ 38,062 Progression GS-07 $ 36,269 $ 38,687 $ 47,150 GS-09 $ 44,364 $ 47,321 $ 57,672 GS-11 $ 53,677 $ 57,256 $ 69,782 GS-12 $ 64,335 $ 68,625 $ 83,639 Management/ Professional GM-13 $ 76,505 $81,606 $ 99,459 GM-14 $ 90,405 $ 96,431 $117,524 GM-15 $106,343 $113,432 $138,245 Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans Source: www.fedjobs.com/pay/pay 2007 General Schedule Base Pay + Locality Acquisition/SCM Salary Information - DoD

  26. Acquisition/SCM Professionals Average SalaryTop 20 % $ 78,470 $100,000 or > Average SalaryExperience $ 65,389 1- 5 years $ 67,996 6 - 10 years $ 77,187 11 - 20 years $ 95,900 21 + years Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 Acquisition/SCM Salary Information - Private Sector

  27. Purchasers, 3 or < years experience $ 54,600 Purchasers, BS/BA in Business $ 69,000 Purchasers, BS/BA in Technical Field $ 70,900 Purchasers, CPM Certification $ 80,000 Purchasers, MBA $ 91,900 Source: Purchasing, December 2003 Average Salary – PurchaserPrivate Sector

  28. Chief, Purchasing/Supply Management/Sourcing $161,082 VP, Purchasing/Supply Management/Sourcing $158,256 Director, Purchasing/Supply Management/Sourcing $120,401 Manager, Purchasing/Supply Management/Sourcing $ 80,519 Agent, Buyer, Senior Buyer, Planner, Purchaser $ 57,081 Consultant $112,100 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 Acquisition/SCM Average Salaries - Private Sector

  29. In general, salary levels increase with educational level Bachelor’s degree or higher - Typically higher than overall average - Average - $79,368 Master’s degree - 25 % higher than Bachelor’s - Average -$99,373 All degree holders - Average salaries highest in technical degree fields - Average - $93,977 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 Acquisition/SCM Salary Influenced by Education

  30. With one or more professional certifications - Higher average salary $80,758 vs. $76,411 With Certified Purchasing Manager (CPM) certification - Average salary 10 % higher $83,172 vs. $75,337 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 Acquisition/SCM Salary Influenced by Certifications

  31. Location - Average salaries vary by location - Wash. D.C. area - average $103,036 - North Carolina area - average $93,791 - Illinois area – average $93,752 - Other states with average > $80,000 Ohio, California, Connecticut, Georgia, Iowa, Massachusetts, Maryland, New Jersey, New York, Texas, Virginia - Other states with average < $60,000 Arkansas, Oklahoma, South Carolina. Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 Acquisition/SCM Salary Influenced by Location

  32. Acquisition/SCM Skills Needed

  33. Acquisition/SCM Professions - Education Options

  34. A.A.S. GBM - SCM Concentration WHAT IS THE SCM TARGET MARKET? • College students seeking degree/career studies • Including Tech Prep students • Entry-level/mid-levelpublic and private industry personnel seeking additional/advanced career studies • Displaced entry-level/mid-level private industry personnel seeking new career studies • DoD military and civilian personnel seeking acquisition studies • DoD contractor support personnel seeking acquisition studies

  35. SCM WORK FORCE SUPPLY SCM WORK FORCE SUPPLY EXECUTIVE EDUCATION CAREER CHANGE ADVANCED EDUCATION BOTTOM-UP (ENTRY LEVEL) BOTTOM-UP (ENTRY LEVEL) TRADITIONAL TODAY’S NEEDS

  36. What are the SCC SCM Program Options?

  37. A.A.S. GBM - SCM Concentration WHAT IS THE SCM CONCENTRATION? • AAS Bus Mgt, SCM Concentration Degree Program • – 103 credit hrs • SCM 1-Year Certificate Program • – 47 credit hours • SCM Short-Term Certificate Program • – 18 credit hours

  38. A.A.S. GBM -SCM Concentration WHAT ARE THE SCM COURSES? Seven SCM CoursesPrerequisites MAN 241, Intro to SCM MAN 242, Advanced SCM MAN 241 and MAT 116 or 121 MAN 243, Materials Management MAN 241 MAN 244, Negotiation Techniques MAN 205 or MAN 241 MAN 247, DoD Systems Acquisition Mgt MAN 248, DoD Acquisition Logistics MAN 247 MAN 251, Logistics Management MAN 205 Two potential future SCM Courses MAN 240, Services Management TBD MAN 249, DoD Systems Sustainment Mgt MAN 248

  39. AAS Bus Mgt, SCM Concentration Degree Program • – 103 credit hrs

  40. A.A.S. GBM -SCM Concentration 1st QTR CURRICULUM

  41. A.A.S. GBM -SCM Concentration 2nd QTR CURRICULUM

  42. A.A.S. GBM -SCM Concentration 3rd QTR CURRICULUM

  43. A.A.S. GBM -SCM Concentration 4th QTR CURRICULUM Total 19

  44. A.A.S. GBM -SCM Concentration 5th QTR CURRICULUM

  45. A.A.S. GBM -SCM Concentration 6th QTR CURRICULUM

  46. SCM 1-Year Certificate Program • – 47 credit hours

  47. SCM One-Year Certificate 1st QTR CURRICULUM

  48. SCM One-Year Certificate 2nd QTR CURRICULUM

  49. SCM One-Year Certificate 3rd QTR CURRICULUM

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