Darin Matthews, CPPO, C. P. M
Portland State University
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“The identification, acquisition, access, positioning and management of resources and related capabilities that an organization needs o potentially needs in the attainment of its strategic objectives.”
(Institute for Supply Management, 2008)
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Disposition –
Investment
Recovery
Materials
Management
Warehousing
Traffic -
Shipping
Procurement
- Purchasing
Strategic
Sourcing

(Institute for Supply Management, 2008
)
Logistics
Inventory
Control
Distribution
Quality
Control
Product –
Service
Development
Manufacturing
Supervision
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Account for 15-20% of the gross domestic product (GDP) within the United States
Essential to operational efficiency
Can impact a company’s bottom line like no other discipline
Directly affects customer satisfaction and retention
The most critical business discipline in the world today
Source: University of San Francisco
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
Implementation of systems that utilize market intelligence and supplier relationship management

Efficiency in operations and achievement of cost minimization and improved profitability

Achievement of the strategic goals and objectives of the organization
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Recognition of globalization issues, negotiation strategies and cost analysis
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More schools are ramping up their programs, adding majors and concentrations as employer demand grows
The Wall Street Journal, June 2013
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• Global operations becoming more complex
• Companies are scrambling to hire supply managers
• Manufacturing, retail, technology and consulting sectors
• SM experts are hard to come by
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School
Governors State
University
Portland State
University
Texas Christian
University
Arizona State
University
Location Program
University Park,
Illionois
MBA in Supply Chain
Management
Portland, Oregon MS in Global Supply
Chain Management
Fort Worth, Texas MS in Supply Chain
Management
Tempe, Arizona MS in Suppply Chain
Management
Year
2013
2013
2013
2014
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More students are seeing career possibilities in the major
Business Week, September 2011
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• Lehigh University College of Business has the most
SCM majors in program history
• Maxed out at 45 students per term
• North Carolina State exploring possibiliy of SCM concentration with accounting degree
• Portland State has a strong record of employment for graduates
• Arizona State University has doubled SCM majors ince
2008
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• ASU Carey School of Business
• 64% have jobs at graduation (2010 undergraduate)
• 100% of Supply Chain-MBAs placed
• 75% of Marketing-MBAs placed
• Institute for Supply Chain Management
• SM salaries increased 8% (2011)
• Entry-level salaries also on the rise
• Existing supply management professionals
• Improved stature within organization
• Opportunity to exercise talent management
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BS in Supply/Logistics Management (existing)
MS in Global Supply Chain Management
(new)
Annual Career Fair at PSU
High percentage of graduates placed (90%+)
Industry partners that have hired PSU supply management graduates
 Boeing, Nike, Ratheon, Boise
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Portland Schools
Multnomah County
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• Existing supply managers continue to demonstrate their value
• Industry experience is leveraged for supply management positions and advancement opportunities
• With ever competitive workforce, supply managers must continue to develop their skills (advancing technology, global markets, cost negotiations, etc.)
• Assume a mentorship role for new professionals entering the workforce
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• Professional development courses through ISM and others
• Managing Supplier Performance
• Legal Considerations of Software Licensing
• Earning professional credentials
• (C.P.M., CPSM, CPSD)
• Degree completion programs (many online)
• Utilizing performance metrics to drive continuous improvement
• Inventory performance (accuracy, turns)
• Cost reduction (i.e. renegotiation)
• Return on investment (ROI)
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• Supply management continues to have impacts in all areas of a company’s operations
• Leading firms are elevating the supply management function (WalMart, Dell, DHL)
• Job outlook remains healthy in coming years for both new graduates and mid-career job seekers
• Most companies seek functional experience as well as
SM coursework
• Certification (C.P.M., CPIM) are not required, but do provide an edge in competitive job market
Source: Career Overview, Supply Chain Management, 2012, Wet Feet
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• Proficiency in enterprise resource planning (ERP) greatly enhances your marketability
• Attention to detail is important and should be reflected throughout the job seeking process
• Communication and people skills are more important than ever
• The field will continue to blur over titles and responsibilities
• Supply Management is standard term, replacing
Logistics and Materials Management
Source: Career Overview, Supply Chain Management, 2012, Wet Feet
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• Certified Professional in Supply
Management (CPSM)
• Certified Professional in Supplier
Diversity (CPSD)
• Certified in Supply Management (CSM)
• Certified Purchasing Manager (C.P.M.)
• Accredited Purchasing Practitioner (A.P.P.)
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• Median SM salary increased by 3.5%
• Six-figure salaries increased to 41% (from
38% in prior year)
• 79% reported increases, 7% decreases
• Leader factors in job selection
1) Job satisfaction
2) Benefits package
3) Financial stability of organization
4) Work/life balance
5) Salary
6) Promotion opportunities
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• Factors impacting salary
• Position, gender, responsibility, education level, credentials, location, and size of organization
• More years of experience = higher salary
• Males earned 32% more than female counterparts
• Females in CPO roles earned 54% more than males
• Degreed professionals earned 35% more
• Certified professionals earned 8% more
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• Customer relationship management
• Segmenting customers, individualizing supply chain solutions
• Collaborative supplier relationships
• Increase collaboration, increase revenue
• Transformational strategies
• Document supply chain strategy
• Process integration
• Eliminating silo walls
• Driver-based metrics
• Measuring performance, setting goals
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• Information sharing and visibility
• Sharing and linking data
• Demand management
• Increase forecast accuracy
• Talent management
• Hiring top supply chain talent
• Virtual integration
• Stick to core competencies, outsource the rest
• Value-based management
• Supply chain excellence leads to shareholder value
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Green supply chains
Risk management
Supply chain agility
Moving supply closer to home
Increased logistics costs
Source: Iowa State University, University Extension, Supply Chain Management for Small and Medium Sized Manufacturers

• More than doing the “right thing”
• Saves money and improves supply chain performance
• Leading firms are extending green efforts to suppliers and logistics
Source: Iowa State University, University Extension, Supply Chain Management for Small and Medium Sized Manufacturers

• Unanticipated disruptions to material flow (costly)
• Finding better ways to deal with disruptions
• Companies trying to anticipate disruptions
• Key is to mitigate, not eliminate
Source: Iowa State University, University Extension, Supply Chain Management for Small and Medium Sized Manufacturers

• Ability to be nimble and agile
• How quickly can a firm respond?
• Real time information and visibility within the supply chain is key
Source: Iowa State University, University Extension, Supply Chain Management for Small and Medium Sized Manufacturers

• Low labor costs in developing countries been driving force behind outsourcing
• In recent years those labor costs are increasing
• Example: Labor in China increased 20% while US Labor only 3%
• Firms are reconsidering past outsourcing decisions
Source: Iowa State University, University Extension, Supply Chain Management for Small and Medium Sized Manufacturers

• In past 5 years transportation costs have increased over 50%
• Energy prices are primary factor
• Total costs in a supply chain network must be analyzed
• Opportunities for cost reductions with logistics providers
Source: Iowa State University, University Extension, Supply Chain Management for Small and Medium Sized Manufacturers

(Humphries, 2001)

 Reactive
 Clerical
 Unimaginative
 Unglamorous

Source: Lisa Ellram & Thomas Choi, Supply Management for Value
Enhancement, 2000

Russell Broeckelmann

 A leadership role – seeking new opportunities and driving them
 A managerial role – managing systems and relationships
 A creator role – identifying new opportunities and making them available to the organization
(strategies, supply options, revenue streams)
 A needs enabler role – enabling others in the organization to satisfy their own needs
(Joseph Cavinato, 2000)
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While historically overlooked (and under appreciated) Supply Management’s “ star is on the rise”
Opportunities will continue to exist in SM, both for new and established professionals
Investment in education and professional development will only enhance marketability
Experts have said for decades that SM is of strategic importance , now others realize this
Trends in SM will continue to make it an exciting and rewarding field
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Victor Taylor, 2011
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Institute for Supply Management. Certification www.ism.ws/certification
ISM 2012 Salary Survey, Inside Supply Management, May 2012
“The Hot New MBA: Supply Chain Management”, The Wall Street Journal,
June 5, 2013
“Supply Chain Management: The Next Big Thing?”, Bloomberg Business
Week, September 12, 2011
Six Key Trends Changing Supply Management Today, Hitachi Consulting
Corporation, 2009
Emerging Trends in Supply Chain Management, Iowa State University,
Supply Chain Management, University Extension, www.ciras.iastate.edu
“Supply chain trends to boost shareholder value”, Supply Management, July
2, 2013, Chartered Institute of Purchasing and Supply
“Career Overview: Supply Chain Management”, December 3, 2012, Wet Feet. www.wetfeet.com
Supply Chain Management for Value Enhancement (2000), Ellram and Choi,
ISM: Tempe, Arizona
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