The Logistics of SuccessThe Logistics of Success

Dan GilmoreEditorSupply Chain Digest

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About Supply Chain DigestAbout Supply Chain Digest

Opinion. Perspective. News that Matters.

"Of all the articles I get bombarded with, SCDigest will typically stand out with useful, thought provoking insight." Kerry Loudenback Director, Supply Chain Optimization Ingram Micro North America

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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

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

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

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

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

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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QUESTIONS?QUESTIONS?

dgilmore@scdigest.comdgilmore@scdigest.com