scm/acquisition educators professional development workshop supply chain management/acquisition the...

SCM/Acquisition Educators’ Professional Development Workshop

Supply Chain Management/AcquisitionSupply Chain Management/Acquisition

The Supply Chain is the backbone of business and the economy.

It could be said that, 2nd only to knowledge, SCM is the “ultimate competitive advantage”.

http://www.youtube.com/watch?v=OVYcxi1rDgE&feature=player_embeddedDoT 6:07

SCM: An Introduction



WHAT IS THE SCM TARGET MARKET?

• College students seeking degree/career studies• Including Tech Prep students

• Entry-level/mid-level public 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



Welcome to the Miami Valley



Associate Degrees and CertificatesSupply Chain Technology

Area of Emphasis in Geospatial Technology

(including RFID and GPS/GIS)

Area of Emphasis in Information Systems

(including cyber security, warehouse information systems,

modeling and simulation, data warehousing)

Area of Emphasis in

Military Acquisitions

(including acquisitions, logistics, and contracting)

Articulated High SchoolSupply Chain Programs

Model Supply Chain TechnologyCareer Pathway

Area of Emphasis in Operations

Management (including

manufacturing and performance-based logistics)

Area of

Emphasis in Automation &

Control Technology (including

sensors, robotics for lights out warehousing)

Capstone Experiences (co-op, internships)

Baccalaureate Degree and CertificateSupply Chain Technology

Basic Core Courses (STEM, communications, humanities, arts)

Articulated Noncredit Workforce Development

Supply Chain Courses

Employment as technicians and technologists

Recruitment of college students with emphasis on

the underserved



5

... Every link in the Supply Chain must be managed …

… For every company, in every industry.

Every Business has a Supply Chain…



6

SCM/Acquisition Objectives

• 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 positionSource: Leenders, Michiel R., Fearon, Harold E., Flynn, Anna E., and Johnson, P. Fraser, Purchasing and

Supply Management, 12th edition, McGraw-Hill, Boston, 2002.



7

Opportunities/Regional Needs

• Regional work force needs driven by public and private sector

influences

• DoD presence at WPAFB

- Requires government employees and support contractors

- Specialized knowledge of all facets of DoD acquisition and logistics

• "90 Minute Market" reach of Interstate 70/75 commerce corridor

- Requires industry specialists

- Expertise in all aspects of supply chain management



8

I-70/I-75 90-MINUTE MARKET



9

Opportunities/Regional Needs(continued)

• 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

• DoD data indicate 50% of DoD civilian workforce eligible to retire

- Local market has critical need to train and retain acquisition/ SCM professionals

• Regional economic development associated with I 70/75 commerce

- Drives growth in need for industry SCM specialists



Agricultural & Environmental Systems Arts & Communications Business & Administrative Services Construction Technologies Education & Training Engineering & Science Finance Government & Public Administration Health Science Hospitality & Tourism Human Services Information Technologies Law & Public Safety Manufacturing Technologies Marketing Transportation Systems

Ohio’s 16 Career Fields



12

Career Fields

• 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.



13

Private Sector Career Fields

- Accounts management

- Contracts management

- Contract negotiation

- Cost projection

- Distribution

- Engineering

- Facilities management

- Financial management

- Forecasting

- Inventory management

- Logistics management

- Maintenance management

- Materials management

- Manufacturing management

- Operations management

- Packaging management

- Procurement

- Process management

- Product development

- Production management

- Production planning

- Purchasing

- Quality control

- Requirements forecasting

- Research and development

- Supply management

- Transportation

- Warehousing



14

DoD Acquisition Career Fields

- Auditing

- Business, Cost Estimating, and

Financial Management

- Contracting

- Facilities Engineering

- Industrial/Contract Property

Management

- Information Technology

- Life Cycle Logistics

- Production, Quality and

Manufacturing

- Program Management

- Purchasing

- Systems Planning, Research,

Development and Engineering -

Science & Technology Manager

- Systems Planning, Research,

Development and Engineering -

Systems Engineering

- Test and Evaluation



15

SCM/Acquisition Skills Needed

Source: www/ism.ws/career center

- Benchmarking

- Contract development

- Contract management

- Cost/price analysis

- Distribution

- Economic forecasting

- Electronic commerce

- Inventory control

- Logistics

- Purchasing

- Negotiations

- New technology/software

- Performance measurements

- Relationship management

- Strategic alliances

- Strategic planning

- Supplier evaluation

- Team building

- Transportation and traffic

- + + +



16

SCM/Acquisition Competencies (ODE)

1. Professional Development/Networking

2. Professional Effectiveness

3. SCM Basics

4. Transportation

5. Warehousing/Material Handling

6. Packaging

7. Inventory and Supply Planning

8. SCM

9. Reverse Logistics, Environmental Mgt

10. Purchasing/Contracting

11. Production

12. Product Decisions

13. Pricing

14. Customer Relations Management

15. SC Planning and Management

16. Finance

17. Management

18. Risk Management

19. Project and Quality Management

20. Business, Law, Ethics, Legal Issues

21. Economics

22. Marketing Information Management

23. Writing Documentation

24. Information Technology Applic. for SCM

25. Facility, Mobile Equipment Maintenance

26. Entrepreneurial Processes



17

SCM/Acquisition Competencies (ODE)

DoD Special Emphasis:

1. Professional Development/Networking• Benefits of working for DoD

3. SCM Basics• DoD Acquisition and Logistics Mission

8. SCM• Role of Acquisition Logistics Professional in DoD• Sustainment Logistics and Impact on Acquisition Logistics

10. Purchasing/Contracting• DoD Purchasing/Contracting Policies and Procedures

15. SC Planning and Management• Financial Considerations in DoD Acquisition



18

Careers in SCM/Acquisition

• SCM/Acquisition is a critical discipline, important for

business success

• Valuable career opportunities in SCM/Acquisition

• Increasing demand in both private and public sectors

• Opportunities for continuing career advancement

• Wide variety of associated functional specialty skills areas

• Attractive salaries and benefits

• Numerous educational options available



19

Salary Information -

Private Sector

Acquisition/SCM Professionals Average Salary

2006 2009 34%$ 78,470 $ 98,200 $100,000 or >

Average Salary Experience 2006 2009 $ 65,389 $ 75,917 1- 5 years $ 67,996 $ 83,561 6 - 10 years $ 77,187 $102,119 11 - 20 years $ 95,900 $106,937 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 and May 2010



20

Salary Information - DoD

DoD Acquisition/SCM Positions

GS/GM Step 1 Step 3 Step 10

2007 2010 2007 2010 2007 2010

Entry Level 04 $ 26,170 $ 28,500 $ 27,914 $ 30,399 $ 34,017 $ 37,047

05 $ 29,279 $ 31.886 $ 31,231 $ 34,011 $ 38,062 $ 41,448

Progression 07 $ 36,269 $ 39,497 $ 38,687 $ 42,131 $ 47,150 $ 51,350

09 $ 44,364 $ 48,313 $ 47,321 $ 51,533 $ 57,672 $ 62.802

11 $ 53,677 $ 58,454 $ 57,256 $ 62,350 $ 69,782 $ 75.987

12 $ 64,335 $ 70,062 $ 68,625 $ 74,733 $ 83,639 $ 91,080Management/Professional 13 $ 76,505 $ 83,314 $ 81,606 $ 88,868 $ 99,459 $108,307

14 $ 90,405 $ 98,452 $ 96,431 $105,015 $117,524 $127,985

15 $106,343 $115,808 $113,432 $123,528 $138,245 $150,551

Plus very attractive benefits packages, including health and life insurance, education and

training, leave, retirement savings plans

Source: www.fedjobs.com/pay/pay General Schedule Base Pay + Locality



21

SCM/Acquisition Salary Influenced by Education

• In general, salary levels increase with educational level

2006 2009

• Bachelor’s degree

Average - $ 79,368 $ 94,213

• Master’s degree

Average - $ 99,373 $119,387

• Doctorate degree

Average - __ $184,273

• All degree holders

Technical Fields Average - $ 93,977 $112,503

Supply Chain Mgt Average - __ $ 96,218

Other Business Average - __ $101,927

Liberal Arts Average - __ $ 99,920




22

SCM/Acquisition Salary Influenced by Certifications

Higher Average Salaries with Professional Certifications

2006 2009

• With one or more professional certifications

$ 80,758 vs. $ 76,411 $ 98,701 vs. $ 96,792

• With Certified Professional in Supply Management (CPSM) certification

__ $106,249 vs. $ 97,582

• With Certified Purchasing Manager (CPM) certification

$ 83,172 vs. $ 75,337 $ 99,314 vs. $ 97,286




23

SCM/Acquisition Salary Influenced by Location

2006- Wash. D.C. area $103,036- North Carolina area $ 93,791- Illinois area $ 93,752• Other states > $ 80,000

OH, CA, CT, GA, IA,

MA, MD, NJ, NY, TX,

VA

- Other states < $ 60,000

AR, OK, SC

Geographic Region 2009• Pacific $ 95,040• Mountain $ 89,721• West North Central $ 99,405• West South Central $ 95,005• East North Central $ 92,280

IL, IN, MI, OH, WI

• East South Central $112,439

AL, KY, MS, TN

• South Atlantic $ 98,440

DC, DE, FL, GA, MD, NC,

SC, VA, WV

• Mid Atlantic $105,561

NJ, NY, PA

• New England $106,841

CT, MA, ME, NH, RI, VT


Average salaries vary by location



24

SCM/Acquisition Professions -

Education Options

Source: www/ism.ws/career center

Associate:

- Business (general)

- Accounting/Fin Mgt

- Purchase/Supply Mgt

- Logistics

- Operations Mgt

- Technical

Bachelor:

- Business (general)

- Purchase/Supply Mgt

- Supply Chain Mgt

- Logistics

- Materials Mgt

- Distribution

- Transportation

- Liberal Arts

- Technical

Graduate Degree:

- MBA

- MS (technical field)

- Logistics

- Law

- Supply Chain Mgt

Combination:

- Technical Undergrad

w/ Graduate in Bus



25

Transportation Modes

• Five modes:

Highway (truck)

Water

Rail

Air

Pipeline



26

Transportation Modes

• And now a sixth mode:

Telecommunications / Cyberspace



27

• RFID inventory tracking

• Standardized containers, pallets for ease of transfer

• “Roadrailers,” warehouse ships, etc.

• Multimodal solutions

Ship Truck Train Truck ?

Technological Breakthroughs



28

Delivery Reliability Highway, Air Direct Ship, Assortment, Spot Stock

Delivery Speed Air, Highway Direct Ship, Assortment, Spot Stock

Mix Flexibility Highway, Air, Rail Assortment, Spot Stock

Design Flexibility Highway, Air Postponement

Volume Flexibility Highway, Air Direct Ship, Assortment, Spot Stock

Cost Rail, Water, Pipeline, Highway

Consolidation, Cross-Docking, Hub-and-Spoke

Performance Dimension

Transportation Mode

Warehousing System

Logistics Strategy Choices



29

__________ Mode

Strengths

• Flexibility to pick up and deliver

where and when needed

• Often the best balance between

cost/flexibility and delivery

reliability/speed

• Can deliver straight to the

customer (increasing)

• Can be available 24/7

Weaknesses

• Not the fastest

• Not the cheapest

Backup slide - Transportation



30

Highway Mode

Strengths

• Flexibility to pick up and deliver

where and when needed

• Often the best balance between

cost/flexibility and delivery

reliability/speed

• Can deliver straight to the

customer (increasing)

• Can be available 24/7

Weaknesses

• Not the fastest

• Not the cheapest




31

__________ Mode

Strengths

• Highly cost effective for bulky

items

• Works best for high weight-to-

value items

• Most effective when linked into

multimodal system

Weaknesses

• Limited locations

• Relatively poor delivery

reliability/speed

• Often limited operating hours at

docks




32

Water Mode

Strengths


items

• Works best for high weight-to-

value items

• Most effective when linked into

multimodal system

Weaknesses

• Limited locations

• Relatively poor delivery

reliability/speed

• Often limited operating hours at

docks




33

Increasing part of multimodal solutions, dual tracks on major routes

__________ Mode

Strengths


items

• Can be most effective when

linked into multimodal system

Weaknesses

• Limited locations, but better

than for water.

• Better delivery reliability/speed

than water




34

Increasing part of multimodal solutions, dual tracks on major routes

Rail Mode

Strengths


items

• Can be most effective when

linked into multimodal system

Weaknesses

• Limited locations, but better

than for water.

• Better delivery reliability/speed

than water




35

__________ Mode

Strengths

• Quickest delivery over longer

distances

• Can be very flexible when linked

to highway mode

• Works best for low weight-to-

value items

Weaknesses

• Often most expensive,

particularly on a per pound

basis




36

Air Mode

Strengths

• Quickest delivery over longer

distances

• Can be very flexible when linked

to highway mode

• Works best for low weight-to-

value items

Weaknesses

• Often most expensive,

particularly on a per pound

basis




37

Transportation “Outsources”

Common (public) carriers- Published rates and schedules

- “Nondiscriminatory” pricing- Increased flexibility to partners

Contract carriers- Service for select customers- Unlimited number of customers

Third-Party Logistics Providers (3PLs)- Service firms specializing in logistics for other

companies



38

SCM Educational Opportunities

SINCLAIR COMMUNITY COLLEGE• Associate Degree Program and Certificate Programs

Options: Private Sector focus or DoD Public Sector* focus

* Defense Acquisition University (DAU)-modeled courses

in Acquisition, Logistics, and Sustainment

A.A.S. Business Management, Supply Chain Management

103 quarter credit hours

Supply Chain Management, 1-Year Certificate

47 quarter credit hours• Workforce Development Programs

Customized training to meet unique organizational needs• Defense Acquisition Academy (DAA)

DAU-modeled courses

Acquisition, Logistics, Contracting, and Program Management



MVAC

The Miami Valley Acquisition Consortium (MVAC) is a joint academic, government, and industry partnership preparing the Miami Valley workforce for the challenges of tomorrow.

- MVAC Charter

MVAC works to facilitate an improved Miami Valley workforce for DoD AT&L and for public and private sector logistics, procurement, and supply chain management specialists.



Defense Acquisition UniversityDefense Acquisition University

Capital and Northeast(Fort Belvoir)

AT&L WF ~37,000

Mid-Atlantic(Pax River)

AT&L WF ~23,000

Midwest(WP AFB)

AT&L WF ~20,000South(Huntsville)

AT&L WF ~27,000

West(San Diego)

AT&L WF ~26,000

Established August 1992 by United States Code



Acquisition EducationBefore

HIGH SCHOOLS

COMMUNITY

COLLEGES

UNDERGRADUATE

GRADUATE

DAU



Acquisition EducationGoal

HIGH SCHOOLS

COMMUNITY COLLEGES

UNDERGRADUATE

GRADUATE

DAU



44

SCM

WORK FORCE

SUPPLYSCM

WORK FORCE

SUPPLY

BOTTOM-UP

(ENTRY LEVEL)

EXECUTIVE

EDUCATION

CAREER

CHANGE

ADVANCED

EDUCATION

BOTTOM-UP

(ENTRY LEVEL)

TRADITIONAL MVAC PLAN



“This budget will support these goals by increasing the size of defense acquisition workforce, converting 11,000 contractors to full- time government employees, and hiring 9,000 more government acquisition professionals by 2015, beginning with 4,100 in -- in F.Y. '10.”

Secretary of DefenseRobert Gates



DoD Acquisition Workforce Career Fields (13) ARMY NAVY/USMC AIR FORCE OTHER TOTAL

Auditing 2 3,485 3,487

Business, Cost Estimating, & Financial Management

4,171 1,716 1,503 218 7,608

Contracting 10,042 5,018 7,371 5,314 27,745

Facilities Engineering 441 3,477 9 3,927

Industrial/Contract Property Mngt 125 56 27 321 529

Information Technology 2,733 744 1,116 248 4,841

Life Cycle Logistics 6,319 4,154 1,781 76 12,330

Production, Quality & Manufacturing 2,193 2,000 334 4,439 8,966

Program Management 4,475 3,624 3,958 717 12,774

Purchasing 332 555 123 667 1,677

SPRDE - Science & Technology 171 19 100 290

SPRDE - Systems Engineering 11,964 16,690 6,239 253 35,146

Test and Evaluation 2,140 2,446 2,598 94 7,278

Unknown 506 6 1,132 1,644

Total 45,443 40,651 25,075 17,073 128,242



National* DoD** Civilian AT&L***Workforce

GenerationWorkforce (millions)

%Workforce Workforce

%Workforce Workforce

%Workforce

Silent Generation (born before 1946) 11.5 6.5% 45,625 6.7% 6,624 5.9%Baby Boomers(1946-64) 61.5 34.9% 438,971 64.5% 74,887 67.3%Generation X(1965-76) 43.5 24.7% 132,948 19.5% 18,544 16.7%

Generation Y(1977-1989 31.5 17.9% 62,676 9.2% 11,286 10.1%

Millenium(1990-present) 28.0 15.9% 153 0.0% 0 0.0%

*Source: Armour, Stephanie "Generation Y They've Arrived at Work with a New Attitude" USA Today, Nov 7, 2005, 18-28 **Source: OSD P&R Report: DoD Civilian Workforce Statistics/DoD Demographics/May2006 Edition

***Source: AT&L Datamart FY07 AT&L Workforce Count/AT&L workforce data contains 456 files with null for age

DoD Acquisition Workforce Generational Composition

Even though our workforce is working longer, there is a growing concern that a large and experienced component of the DAW will start to contract—creating gaps in critical skills



49

• ISM Institute for Supply Management

http://www.ism.ws/• CSCMP Council for Supply Chain Management Professionals

http://cscmp.org/• SCC Supply Chain Council

http://www.supply-chain.org/• APICS Association for Operations Management

http://www.apics.org/• INFORMS Institute for Operations Research and Management Sciences

http://www.informs.org/• SOLE International Society of Logistics Engineers

http://www.sole.org/• AFCEA Armed Forces Communications Electronics Association International

http://www.afcea.org/• DAU Defense Acquisition University

http://www.dau.mil

Prominent SCM Professional Organizations and Resources



50

• ODE - Logistics Education Summithttp://www.ode.state.oh.us/GD/Templates/Pages/Summit/SummitPrimary.aspx?page=731

• ODE Careers Links

http://www.ode.state.oh.us/GD/Templates/Pages/ODE/ODEPrimary.aspx?Page=2&TopicID=1759&TopicRelationID=1777

• Ohio Means Businesshttp://www.ohiomeansbusiness.com/key-industries/distribution-and-logistics.php

• Ohio Business Developmenthttp://www.development.ohio.gov/research/documents/b800000000.pdf

• Logistics - Columbus, Ohiohttp://www.columbus.org/economic-development/logistics/

• Ohio - Association of Procurement Technical Assistance Centers (APTAC)http://www.aptac-us.org/new/Govt_Contracting/find.php?what=search&State=OH

• Ohio - Procurement Technical Assistance Center (PTAC) http://www.dla.mil/db/procurem.htm#OHIO

SCM Links



51

• Defense Acquisition University (DAU)

http://www.dau.mil/default.aspx

• DAU Publications

http://www.dau.mil/pubscats/default.aspx

• DAU Brochures

http://www.dau.mil/pubscats/Pages/brochures.aspx

• DAU Guidebooks

http://www.dau.mil/pubscats/Pages/Guidebooks.aspx

• DAU Acquisition Community

https://acc.dau.mil/CommunityBrowser.aspx

• DAU Continuous Learning Modules

https://learn.dau.mil/html/clc/Clc.jsp

DAU Links



52

Here are some links to interesting logistics sites:

• The Aalsmeer flower auction—world’s largest: http://www.youtube.com/watch?v=V2CK2TatM_Uhttp://www.youtube.com/watch?v=xHs-NNQ5UVQhttp://www.youtube.com/watch?v=2U47yGQEon8&NR=1

• World’s largest ship: http://en.wikipedia.org/wiki/Knock_Nevis

• World’s fastest train: http://www.popularmechanics.com/technology/transportation/4219935.html

Interesting Logistics Sites



53

SCM Educational Opportunity Videos

Jake Barr

Global Ops Leader

Procter & Gamble

“Closing Supply Chain Talent Gap”http://www.supplychainbrain.com/content/videos/2010-video/cscmp-26-50/closing-the-supply-chain-talent-gap/

Lt Col Tim Pettit

Air Force Institute of Technology (AFIT)

Asst Prof of Logistics and SCM

“Research Projects at AFIT”http://www.supplychainbrain.com/content/home/single-article-page/article/research-projects-at-afit/



There is a tremendous perception gap about the concept/content of the “SCM field” between academics and practitioners.

Case in Point: GE hires engineers and trains them in concepts that we teach to our SCM graduates in business schools.

25 executives from various industries, almost unanimous concern that recruiters don’t know exactly what SCM graduates can do? When they know, they hire SCM graduates over engineers in many careers. Strong sentiment to rename the program.

04/10/2354

What’s in a Name? Everything!!!



• Make Acquisitions & SCM a household name with “employers”

• Champion the cause of Acquisitions & SCM within B-Schools and across campus: not “just as a research/academic” but “as a practical discipline with ultimate value-add to the economy and society”

• Make Acquisitions & SCM a household name in “community colleges”

• Make Acquisitions & SCM a household name in “K-12”: Why should high-school students and counselors equate business education with “just” accounting, marketing, and finance?

04/10/2355

Challenge for Acquisitions & SCM



• Acquisitions/SCM brand-name recognition lower than Accounting, Marketing, Finance, MIS, Engineering.

• Need to enhance the SCM field to employers as the core value-add in shaping, setting up and improving infrastructure of all activities

• Promotion needed at all levels: individual programs, institutions, the “field” level

04/10/2356

Educating the Customer:Strategies for Enhancing the Demand

scm/acquisition educators professional development workshop supply chain management/acquisition the...

Documents

supply chain slide

world class supply management

introduction slide

control contract development

minute market slide

dod needs

industry scm specialists

miami valley slide