Master inSupply Chain ManagementProf. dr. ir. Bart VosMaster of Supply Chain Management

Agenda

1. Supply chain management – An overview

2. Careers in supply chain management

3. Master in Supply Chain Management at Tilburg University

4. Participants’ perspective: Mathijs van den Kieboom, Fabory

5. Closing

1 Supply chain management – An overview

What is supply chain management?

• “Supply Chain Management is the integration of key business processes from end user through original suppliers that provides products, services and information that adds value for customers and other stakeholders” (Stock and Lambert, 2000).

• Supply chains compete, not companies (Christopher and Towill, 2002)

• Key issues include multimodal transport, outsourcing, globalization, sustainability, lean management, information systems, collaboration, planning

Change from “rigid” to “flexible” manufacturing

Ford: T-Model (“Tin Lizzy”)Detroit, USA, 1908

Breakdown in single tasks Specialization of jobs Focus: Intra-organizational

Highly standardized products Focus on cost efficiency

Rigidity Production/supply networks Specialization of performance units Focus: Inter-organizational

Smart: fortwoHambach, France, 2008

Highly customized products Focus on differentiation (and cost)

Flexibility

Example

Supply chain complexity:Many supply chain tiers

OEM1st tier supplier(seats)

2nd tier supplier(leather firm)

3rd tier supplier(tannery)

4th tier supplier(farmer)

Example

CustomerDealer

Configuration

Supply chain complexity:Many suppliers

• Mercedes-Benz E-class• ~ 150 major direct suppliers• Many of them deliver on a JIT or JIS basis

Example

Supply chain complexity:Many geographic locations

Wafer Fabrication

PortlandSalt Lake CityMidget HaemekSanta ClaraArlingtonGreenock

Assembly & Testing

CebuMalaccaPenangBangkokToa Payoh

Prime Distribution Center

SwindonPortlandSanta ClaraTokyoHong Kong

Example

SCM's impact on ROI

Source: Christopher, 2005

Supply chain

Cost Of Goods Sold (COGS)

• Direct costs attributable to the production of the goods sold by a company, including• Cost of materials used in creating the good ("purchasing cost")• Direct labor costs used to manufacture the good

("manufacturing cost")• How to reduce purchasing cost?

• Purchasing price• Supplier selection• Global sourcing• Supplier management etc. etc.

• How to reduce manufacturing & logistics cost?• Manufacturing footprint• Manufacturing processes• Lean management• Inventory management etc. etc.

Supply chain management and operations!

COGS at Unilever

Example

Supply chain and operations costs:~ 60% of revenues

from products

Profit impact of purchasing: Reducing purchasing costs vs. increasing revenues

47%

40%

50%

59%

0% 20% 40% 60% 80% 100%

Mechanical Engineering

Chemical Industry

Foods

Trade

Operative MarginOther CostsStaff CostsPurchasing costs

EBIT Margin

3.4 %

2.5 %

5.0 %

3.3 %

Lowering purchasing costs by 3 % will have the same EBIT-effect as an revenue increase of …

Revenue increase of

52 %

60 %

24 %

43 %

PI =EM

PC x PCRPC = Purchasing costs in % of revenues PCR = Purchasing costs reduction in % of the

purchasing cost EM = EBIT Margin %PI = Profit impact of purchasing as compared to

necessaryrevenue growth

Indus

tries

Examples

2. Careers in supply chain management

The supply chain management profession

• Supply chain management is…• Interdisciplinary• Collaborative• Independent of specific industry• Dynamic• Increasingly global

• Essential capabilities:• Overarching understanding of functional areas (from finance to marketing)• Analytical skills• Collaborative, relational skills

• Major subfields:• Purchasing management• Logistics and distribution management• Production and operations management

The link between supply chain management and strategy

Newproduct

development

Purchasingand Supply Operations Distribution

Marketingand

sales

Support: Finance, accounting, information technology, human resources

Competitive strategy

Productdevelopment

strategy

Marketing andsales strategy

Consistency and support between competitive strategy, supply chain strategy, and other functional strategies is important

Supply chain strategy

“The Hot New MBA: Supply-Chain Management”(Wall Street Journal, June 6, 2013)

Click icon to add picture

Source: Wall Street Journal (2013):http://online.wsj.com/news/articles/SB10001424127887324423904578523591792789054

Junior Demand Analyst & Planner (Supply Chain)Over de vacatureVoor een middelgroot Internationaal groeiend industrieel productiebedrijf zijn we MET SPOED op zoek naar een:Demand Analyst/PlannerWe zijn op zoek naar een pas afgestudeerde analytische, communicatief vaardige en ambitieuze collega die zich hierin wil vastbijten. De Demand Analyst / Planner analyseert de verkoop, verzendingen en voorraad met als doel een goede forecast te bepalen en aanbevelingen te doen aan de planning voor een optimale verkoop en te zorgen voor de juiste voorraadniveaus.Verdere werkzaamheden:• Coördineren van de gehele forecast.• Maandelijks consolideren en evalueren van de verkoopprognoses.• Verzamel van gegevens omtrent sales en productie.Eisen:Een afgeronde opleiding op WO niveau (of HBO niveau) in het liefst de richting van Supply Chain Management of anders een vergelijkbaar en aansluitende opleiding. 0-2 jaar ervaring als Demand analyst of Planner. We zoeken een kandidaat die analytisch en communicatief sterk is en in staat is makkelijk te kunnen schakelen met mensen uit de gehele organisatie (operator tot Sales Manager) en klanten in binnen- en buitenland. Je hebt (goede) kennis van Excel en enige kennis van SAP is een pre. Statistiek en sterk cijfermatig inzicht Goede kennis van zowel Nederlands als Engels is een must. Assertief, communicatief en gedreven. Fulltime beschikbaar (must).De salarisindicatie voor deze functie ligt op 2500-2600 bruto per maand

Example job vacancy (1)

This is a superb opportunity to join a major, prestigious beverage company in their International office located in Amsterdam. The International office in Amsterdam is responsible for sales in Europe, Africa and the Americas. They are urgently looking for a high caliber:

DEMAND & SUPPLY PLANNING MANAGER

In this role, you will have responsibility for the total demand planning of the Finished Goods and Concentrate sales as well as for the material planning of ingredients and packaging. You will work closely with sales, marketing and with other Business Units to identify trends and to refine an 18 month demand plan. You will foster strong relationships with Commercials, Finance and Marketing teams in running a 12 month Supply and Operations Calendar. The key accountabilities are as follows;

DEMAND PLANNING

SUPPLY PLANNING MANAGEMENT• Material planning for ingredients and packaging. • Management of 2 Material Planners • Review SAP & MRP on a daily basis • Drive coordination of make-buy initiatives and bill of materials management. • Stock management of raw materials & packaging. • Support during budgeting and forecasting for materials planning;PROFILE & EXPERIENCE• Preferably a Masters Degree in Supply Chain Management • A minimum of 5 years international supply chain experience within FMCG company. • SAP & Spreadsheet experience (Excel/Access etc.) • Experience working with Sales/Marketing/Finance/Logistics departments. • Highly analytical and comfortable with figures. • Business fluency in English - French or Spanish would be a big advantage.

Example job vacancy (2)

3. Master in Supply Chain Management at Tilburg University

Positioning of MSc in SCMStarting positions

• Manufacturing: Entry management positions in supply chain, operations, purchasing, or logistics

• Service industries: Entry management positions at logistics service providers

• Consulting: Generalist or specialistKnowledge Scientific advances in purchasing, production/ operations, distribution, and

other advanced topics

Skills Qualitative and quantitative research skills required for academic studies and practiceAdditional practical skills (design, planning, modeling, ICT, collaboration, coordination)

Teaching policy

• Strong research focus and academic excellence• Strong links to practice

Mindset Analytical, problem-solving, collaborative

Labor market Currently on average about 2 months to find first job, alumni feed back generally positive, still in high demand

Curriculum (September Entrants)

Purchasing Management

Production Management

Distribution Management

Research Skills SCM

Corporate Entrepreneurship

Collaboration Game & Advanced Topics

Supply Chain Management

Science

Master Thesis

Unit 1 Unit 2 Unit 3 Unit 4

Skills training and topic definition

Extended proposal development under

supervisor

Full-time research

Thesis:

• Heavy unit 1• Optimal sequence• Relatively fast

Curriculum (February Entrants)

Purchasing Management

Production Management

Distribution Management

Research Skills SCM

Collaboration Game & Advanced Topics

Supply Chain Management

Science

Master Thesis

Unit 1 Unit 2 Unit 3 Unit 4

Skills training and topic definition

Extended proposal development under

supervisor

Full-time research

Thesis:

• Heavy unit 2• Less optimal sequence• Limited flexibility at the end

Supply Chain Modeling

Course example:“Collaboration game and advanced topics”

 

Finished productComponents

Supply Production Distribution

Supply Chain

Purchasing Operations Sales

Reflect Discussions Presentations

Conceptualize Lectures Guest speakers

Apply Rounds of play Exercises

Experience Feedback from

the simulation

• A simulation game to reinforce supply chain fundamentals and apply advanced methods• “The Fresh Connection”

• Web-based simulation of a fresh juice producer• Goal: Highest ROI (costs, revenue, investments)• Cross-functional teams• Decision-making at the tactical/strategic level• Six rounds with increasing task complexity

• (Advanced) topics addressed:• Supply chain fundamentals• Supply chain strategy and its implementation• Agri-food supply chains• Supply chain planning and S&OP• Forecasting• Supply chain collaboration• Supply chain risk• Close loop value creation

• > 80% company assignment

• Albert Heijn: combining inbound and outbound transportation flows

• DAF: spare parts management

• Coca Cola: redesign warehouse layout

• Closed loop supply chains at Philips, Assembleon, Oce, Lage Landen

• Purchasing management at Nedtrain

• Maintenance of F16 jet fighters

• Also SMEs (e.g. lean manufacturing projects)

Examples of Master’s Theses

Graduates: Some examples

Harm Jan Bech Procurement analyst EnexisHilde Botden Supply chain engineer VDL (Van der Leegte) GroupVictor Breugem Supply chain planner, FrieslandCampinaDavid de Kruijf Supply chain planner PearleWillem Jan Castelijns Warehouse manager PanalpinaNiels de Rooij Business analyst Ploeger Geoffrey Dickenson Operations manager WoonVeiligRobbert Janssen PhD candidate VUJohn Koers Interim Professional at YachtRobin Law Consultant at Every AngleInna Kostuyek Service analyst Philips HealthcareRonald Sol Teacher HAS HogeschoolDirk van Dooren Supply chain analyst LHC consultingRobbie VughtsSergi Serrano LupionSander van der HeijdenDaan Klein DouwelFlorina de Jong

Head of EMEA Edwards Lifesciences SASupply Chain Planner at Chupa ChupsLogistics Engineer at Océ Technologies B.V.Management trainee at KLMIntern European Management Office Samsung Electronics

Master Supply Chain Management at Tilburg University

“What has positively surprised me about the Master’s program of Supply Chain Management is that the training that we received was very practical. … There was a good link between what we have studied and what we could see in real life.”

Inna Kostyuk (grad. 2012)Business Planner - Philips Healthcare

pict

“Designing and implementing theory-based solutions in the supply chain take center stage, which matches really well with my own interests! ”

Anneli Degens, current student

pict

• Focus on integration of key business processes within firms and between firms that form a supply chain

• Intellectually challenging

• Research-driven/ practically relevant

• Relatively small-scale (cohorts of about 80 students)

• Quality of staff: professional expertise, practical experience and teaching abilities

4. Participant’s perspective:Mathijs van den Kieboom

5. Closing

Closing remarks

• Career services and alumni relations

• Admission & application

• Master’s Fair in Academia Building, 19.00 – 21.00 hr

(19.00 – 20.00 hr: WO, 20.00 – 21.00 hr: HBO & WO)

• Questions

Student Career Center & TiSEM Career Services

Your career starts now!

We can help you with:Study/Master choices, Career orientation,Career & Application skills

We offer:• Walk-in consultation for CV & letter of application• Workshops (for example Talent management, LinkedIn)• Individual support• Career Mentor Program & Career Portal

More information:tilburguniversity.edu/studentcareercenter

Visit us now: On the Master’s Fair from 19.00h to 21.00h in the Academia Building

Admission & Application

For all students:• Enroll via Studielink

Non TiSEM students who want to enroll in a (Pre-)Master also need to:• Submit an application for admission

For more information go to:www.tilburguniversity.edu/education/masters-programmes/

admissionprocedure/feb/

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Master’s fair from 19.00h till 21.00h

Master’s fairCome to the Master’s fair (in Academia building) and get in contact with career services, students, study advisors and program coordinators!

Questions?