“supply chain management: houston, we have liftoff”
TRANSCRIPT
MEGA Supply Chain Societies of Delaware Valley
“Supply Chain Management:
Houston, We Have Liftoff”
October 7, 2020
C . JOHN LANGLEY JR. , PH.D.
Cl in ica l Pro fe s sor o f Supp ly Cha in Management
Penn S t a te Un i ver s i t y
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Department of
Supply Chain
and
Information
Systems
Penn State
Executive
Programs
Center for
Supply Chain
Research®
Gartner Supply Chain
University Rankings
(2020)
#1 Graduate
#3 Undergraduate
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PSU Center for Supply Chain Research®
RESEARCHEXECUTIVE
EDUCATION
• Corporate Sponsor Meetings
• SC Leaders Forums
• SC Talent Symposium
TALENT OUTREACH
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Presentation
Objectives
Supply Chain “Buzz”
Core Competencies
Tomorrow’s Supply Chain Leaders
“Game-Changing” Technologies
Effects of COVID-19
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What’s For Dinner?
Who Knew That the Hardest Part Of Being an Adult is Figuring Out What to Cook for Dinner Every Single Night for the Rest of Your Life Until You Die?
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Seven Ways the Pandemic Has Changed How We Shop for Food
1. Trips are Fewer, Lists are Better
2. Online Aisles are Bustling
3. Orange is the New Snack
4. Redrawing the Store
5. Choices are Shrinking
6. The Freezer is Hot
7. “Local” is a Bigger Lure
Source: September 8, 2020
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What in the
world is
going on
in our supply
chains ???
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Learning How to Create Successful Supply Chains
Demand-driven focus
Adaptable and resilient
Use of data and analytics
to simplify complex
supply chains
Balance operational and
innovation excellence
Supply chain talent
Recognize no single
organization can make a
supply chain successful
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Supply Chains are Moving Up the “Food Chain”
Functional Excellence
Customer Service
Integrated Logistics
Supply Chain Management
Integrated Business
Management
Extended Enterprise
Supply Chains as
Ecosystems
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End-to-End (E2E) Supply Chain Focus
Supplier’s Supplier
Your Suppliers
Your Customers
Customer Customers
Your Organization
Plan > Buy > Make > Flow
Penn State CSCR®Supply Chain Model®
< < < < < < < < Return < < < < < < < <
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Multi-Channel
Consumer buying patterns dramatically changing
3PLRetail storeRetail DC
Retailer
Food
manufacturer Last-mile
logisticsLast-yard
logistics
“Last Mile”
• Final leg of supply chain
• Does NOT always
include delivery to
ultimate user or
consumer
Consumer
“Last Yard”
• Capability needed when
“Last Mile” does not
extend to ultimate user
or consumer
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Technology
Modeling /
OptimizationRobotics and
Automation
Mobile
TechnologiesInternet-Of-
Things (IOT)
Additive
Manufacturing
Augmented
Reality (AR)
Cloud
Computing
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Analytics
Descriptive
Predictive
Prescriptive
AI / Machine Learning
The Path to Meaningful Use of OTIF
Lack of standard definition for OTIF
How does flexibility factor in?
What about early deliveries?
What incentives are OTIF aligned with?
How focus on OTIF can improve SC relationships?
The Rise of “OTIF”
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Sustainability
More than just being green . . . Sustainability must incorporate
a triple bottom line into supply chain strategies
Environmental Social Governance
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Risk Management
Need formal plans and processes for
risk management
Supply chain risks a refinement of
overall organizational risks
Shippers and supply chain partners
need to address issues relating to
risks
Risk management is a “rising star” among
strategic areas of business
and supply chains.
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Talent
Attract, develop, and maintain the appropriate pool of talent
from entry level to executive level
Unprecedented
shortage of labor
53% of shippers rely
on 3PLs for help
79% unprepared for
labor shortage
Supply chain jobs to grow by
25% over next 10 years; 25% of
current workforce expected to
retire shortly
Results will include
significant outsourcing
of labor resources
Millennials in
the workforce
(at least
temporarily)
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Customer/3PL Study Special Topics Workshops/Roundtables
www.3PLstudy.com
2021 25th Annual 3PL Study
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“IT Gap” 2002 2020
89%85%
91% 90% 92% 92% 92%88%
94% 93% 94%98% 96%
93% 91% 91% 93% 94% 93%
27%33%
42% 40%35%
42%37%
42%
54% 54% 53% 55%60% 59%
65%
56% 55% 56% 54%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
IT
“Gap”
Top IT Capabilities
TMS
EDI
WMS
Supply chain
visibility
Order
management
Web
portals
IT Capabilities Necessary Element of 3PL ExpertiseShippers Satisfied with 3PL IT Capabilities
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42%
28% 31% 33%27%
45%
19%
51%
Transactional Strategic Partner Transactional Strategic Partner
Current Future (5 Years)
Shippers 3PL Providers
Shipper-3PL Relationships Shifting
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3PL-Shipper Data Sharing
1. Request
for
proposal
2. Response
3.
Evaluation
4. Contract
5.
Implementation
6. Continuous
improvement
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93% Supply chains impacted
32% Exceeded 50% of operations
Degree of Impact on Supply Chains
46% Back to normal in 3 months or less
16% 12 months or more to recover
Time to Recover
1. International Transportation & Logistics
2. Manufacturing
3. Supplier Networks
Top 3
Areas of Impact COVID-19 revealed weaknesses in current supply chains, with wild swings in demand and supply, throwing global networks into
chaos.
Few Shippers Escaped the Impact of COVID-19
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Shippers Reported Feeling the Impacts Slightly More than 3PLs Particularly in Both Warehouse and Driver Labor
Warehouse or other Operational Labor Shortage
Personal Protection Equipment Shortage
Cleaning & Sanitization Supplies Shortage
Driver Shortages
Operational Equipment Shortage (trailers, containers)
56%
46%
42%
30%
29%
35%
32%
40%
23%
17%
3PLsShippers Areas Impacted
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Shippers and 3PLs – Areas Needing Improvement
Shippers
Rank
1 Readiness & Continuity Planning
2 Data Analysis & Visibility
3 Risk Management
4 Demand Forecasting
5 Scenario Management
6 International Transportation
7 Inventory Management
8 Labor Management & Scheduling
9 Capacity Forecasting & Planning
3PLs
Rank
1 Readiness & Continuity Planning
2 Data Analysis & Visibility
3 Risk Management
4 Scenario Management
5 Labor Management & Scheduling
6 Capacity Forecasting & Planning
7 Demand Forecasting
8 Domestic Transportation
9 International Transportation
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COVID-19 Revealed Supply Chains Have Become Too “Brittle”
42%
49%
0%
10%
20%
30%
40%
50%
60%
Agree (YES) Disagree (NO)
Supply Chains Have Become Too LEAN
56%
41%
0%
10%
20%
30%
40%
50%
60%
Agree (YES) Disagree (NO)
Supply Chains Must Rebalance to More Local/Domestic Ecosystems
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Emerge and RecoverDeveloping Capabilities to Facilitate Recovery
Example shipper and provider
capabilities to facilitate supply chain
recovery and resilience
Accommodating COVID-19 precautions
Improvements in advance shipment planning
Use of digital technologies
Use of automation
Ability to innovate and transform supply
chains
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Future
Supply
Chain
LeadersHow are today’s students being
developed to become tomorrow’s
supply chain leaders?
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Penn State Supply Chain Students
Undergrad MBA
Full-time students 970 63
Internships and Co-ops 87% 100%
Project-based for external organizations 22% 100%
Technology training (supply chain
applications)
100% 100%
Full-time jobs
Prior to graduation
0-3 months post-grad
Longer
Capable – Energized – Excited
77%
18%
5%
100%
97%
2%
1%
100%
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Undergraduate Supply Chain Courses
SCM 406 – Strategic
Procurement
SCM 405 – Manufacturing
and Service Strategies
SCM 404 – Demand Fulfillment
BA 342 – Social Responsibility
and Sustainability
MIS 441 – Business Intelligence
for Decision-Making
MIS 431 – Business Data
Management
SCM 301 – Supply Chain
Management
SCM 450 – Design and
Management of Supply Chains
MIS 446 – Information
Technology and Business
Strategy
BA 411 – Analyzing Business
and Industry
SCM 421 – Supply Chain
Modeling and Analysis
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Talent Strategy Recommendations for Organizations Recruiting University Students
Prepare a company and supply chain profile for recruits
Supply chain needs and maturity
Geographic focus
Diversity and inclusion profile
Career value proposition
Build recruiting presence by segmenting recruiting focus
Different schools, size, specific strengths
Geographic priorities
Help students to understand your company experience
Appealing place to work
Example job profiles and development opportunities
Arrange meetings with younger members of your team
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Summary and Key Takeaways
Supply chains are E2E and by
definition include multiple
organizations
Supply chains are living, breathing
ecosystems
Supply chains not only need to
“outrun the bear,” but need to
know “what bear to chase”
The keys to supply chain success include
efficiency and effectiveness, and also the
ability to innovate and transform
Supply chain success also requires a
continuing supply of fresh, capable talent
We are all fortunate to be in the supply
chain business, as this is finally taking its
deserved place as a core competency for
success in most types of business
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“ I skate to where the puck is going to be, not to
where it has been. ” ~ Wayne Gretzky
Image courtesy of Carmen's Group
Closing Thought
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