DistributionBusiness

JournalManagement

Volume 1, 2008 Price: $5.00

Drowning OutProsperity

Disruptive Demographics in the Supply Chain

Demand Driven Performance

RFID: What’s in it For Me?”

Mitigation of Supply Chain Network Risk

Reflections on Supply Chain Management Strategy

2008 Supply Chain Leaders in Action Directory and Reference Guide

Congratulations to

2008 Circle of Excellence Recipient!

reduce . reuse . recover . recycle

When has a printer company ever told you to print less?

Sounds crazy, but it’s true.

Lexmark invites you to discover how you can use technology to help save boththe environment and your budget.

PRINT LESS SAVE MORE

For more information,visit www.lexmark.com/solutions

ad_DBMA.indd 1 5/13/08 9:10:04 AM

1

For more information about our family of services call

(877) 917-2237 or visit us at www.pacer-international.com.

Pacer Rail | Pacer Highway | Pacer Distribution | Pacer Supply Chain | Pacer Ocean World Lines & RF International| �e Pacer Logistics Portfolio

Double-Stack | Ramp-to-Ramp | Door-to-Door | Cartage | Transload | | Intermodal Solutions

�e Pacer Familyconnects the freight of

today’s consumer economy.

Pacer connects businesses around the world. Our management expertise, scale, buying power, information systems, and geographic scope create operational e�ciencies that makes us the industry leader. Take advantage of our service excellence and let us be the freight connection in your supply chain.

DBMJ

4 Staff

4 In this Issue: (Textto come...)

5 Editor‘s Letter

6 Drowning OutProsperityOver the decades waves of freight of increasing size have been rolling across the Pacific.They’ve been termed freight tsunamis and they are jamming our seaports with cargo containers and our interstate systems with gridlocked trucks. Is America’s lack of invest-ment into its infrastructure causing the loss of its competitive edge?

8 Disruptive Demographics in the Supply ChainToday’s workforce finds itself with an enormous gap between the Baby Boomer’s and Generation X and Y. How will the labor shortage affect supply chain operationsand what strategies can be used to overcome the workforce gap.

10 Demand DrivenPerformancePoints out the drawback ofsacrificing margins in theprocess of creating a moreresponsive, demand drivensupply chain. The article looksat addressing exception han-dling “when good orders gobad.”

14 RFID: What’s in it For Me?”The benefits of RFID can begood bad or ugly dependingon whether or not you are aretailer, vendor or a logisticsservice provider.

18 2008 Supply Chain Leaders in Action Directory and Reference GuideComprehensive speaker & faculty reference guide for theSCLA Executive Forum.

27 2008 Circle ofExcellence AwardNYK Logistics receives recog-nition for its CSR activities andenvironmental commitment inthe global supply chain category.

72 Mitigation of Supply Chain Network RiskResearch and conclusionsfrom a three year study fundedby the Department ofHomeland Security & theNational Center for FoodProtection & Defense that canhelp industry address the roleof supply chain risk manage-ment as a means of mitigatingglobal supply chain disrup-tions.

78 Reflections on Supply Chain Management StrategyThis article reflects on severalwell known basic businessstrategies and then offersinsight into pairing the appro-priate supply chain strategywith each discussed businessstrategy.

3

DistributionBusiness

JournalManagement

2

DBMJDistributionBusinessManagementJournalAmy Z. ThornPublisher, Editorial Director

John T. ThornExecutive Publisher

Ron MalecDirector Creative Services

Rose FausDirector of Administration

Contributing Columnists

Richard DaweDan McNicholDeb MillerJames MooreKeith HelferichJohn GriggsKevin SmithDoug Voss

Published annually by:

Distribution BusinessManagement Association

2938 Columbia Ave., Suite 1102Lancaster, PA 17603Phone: 717-295-0033Fax: 717-299-2154e-mail: rfaus@dbm-assoc.comwww.DCenter.com

Distribution Business Management JournalA DBM Publication2938 Columbia Avenue, Suite 1102Lancaster, PA 17603Internet: http://www.DCenter.comJournal Reprints: 717-295-0033

Distribution Business Management Journal (ISSN 1535-1254) is published quarterly by DBM, Inc., 2938Columbia Avenue, Suite 1102, Lancaster, PA 17603,phone 717-295-0033, fax, 717-299-2154, internethttp://www.DCenter.com. Periodicals postage paid atLancaster, PA and at additional mailing offices.Postmaster send address changes to DBM Journal,2938 Columbia Avenue, Suite 1102, Lancaster, PA17603. Subscriptions in the U.S. $20.00 for one year,$35.00 for two years, single copies $5.00. Subscriptionsin Canada $25.00 for one year, $45.00 for two years, sin-gle copies $7.00. Outside the U.S. and Canada, $30.00for one year, $55.00 for two years. International singlecopy $9.00. Send remittance in advance to DBM, 2938Columbia Avenue, Suite 1102, Lancaster, PA 17603.

Printed in the USA copyright©2005 by DBM, Inc.

No part of this publication may be reproduced or trans-mitted by any means without permission from the pub-lisher. Permission to photocopy for internet use or theinternal use of specific clients is granted by DBM Inc.for libraries and other users registered with theCopyright Clearance Center, CCC provided that a basefee of $1.25 per copy of the article plus 60 cents perpage is paid directly to CCC, 222 Rosewood Dr.,Danvers, MA 01923

5DBMJ

In today’s economybeing an informedleader is vital.

Running a resilient supplychain is at the very heartbeat of our global econo-my. The stakes are high-er than they’ve ever beenand our future economydepends on leadershiplooking beyond shortterm profits and takinginto account the busi-ness’ long term viability.In our increasingly com-petitive economic systemthere are high stakesdepending on top man-agement’s every moveand unrelenting pressureto deliver profits.

This issue of the DBMJournal addresses some

of the hard questions thatnot only need to belooked at but managedwell with an eye towardcreating future prosperitynot only for the stock-holders but all the stake-holders.

Also bound into thisissue is the Directory forthe Supply Chain Leadersin Action (SCLA) 2008Executive Forum. SCLAis a think tank comprisedof some of the most pro-gressive supply chainbusiness leaders and aca-demic thinkers. It is atSCLA 2008 that thestrategies that will shapethe future of supply chainmanagement will be finetuned.

Special Focuson Supply ChainLeadership

In This Issue:

4

How will companies increase productivity and drive down supply

chain costs in the future? Byusing leadership, resilienceand planning. At the June 2008Supply Chain Leaders in Action(SCLA) forum in ScottsdaleArizona executives will bestrategizing about what theirsupply chains will be liketomorrow as well as five to tenyears from now.

When it comes to the futureonly one thing is certain, rapidchange is on the horizon. DanMcNichol’s article “Drowningout prosperity” addresses theeconomic impact of growingglobal giants like China andIndia. Collectively with morethan 2.5 billion consumersthey represent the future of

Letter From the Publisher

Achieving SupplyChain Excellencethrough Leadership

the global economy. Dailythey help produce a “Tsunamiof Freight” that is overwhelm-ing America’s aging infrastruc-ture. Companies are beingforced to take a hard look atthe price of transportation rela-tive to manufacturing costs.This added to the risk of intel-lectual property may put thebreaks on off shoring whenthe benefits of inexpensivelabor are eclipsed by soaringfuel prices. With oil predictedto hit $200 dollars a barrel inthe not so distant future it’snot just the consumers thatwill start running out of gasbut so will the engine of glob-alization.

So how will businesses sur-vive this perfect storm? Somesay by shipping manufacturingand business process – notfreight – back to our homeshores. But to do this we’llneed more labor and with con-tinuingly declining birthrates inAmerica finding skilled letalone cheap labor will continueto be a challenge. The article“Disruptive Demographics”provides insight on how thebaby boomer labor pool maybe a hard act to follow for gen-eration X and Y.

With an aging labor pool andinfrastructure coupled with asinking American dollar howwill businesses stay afloat?Some say the answer lies inmitigating risk in order toachieve sustainable growth.Pointers derived from a threeyear joint academic and indus-try study on how to achieve aresilient supply chain can befound in the refereed article on“Mitigation of Supply ChainNetwork Risk.”

Additional insights from aca-demic thought leaders can befound in Richard Dawe’s article“Reflections on Supply ChainManagement Strategy.” Hisbottom line recommendationis that companies employ amixed customer strategy thatrequires an agile supply chainthat is driven by customerdemand.

Employing a “Demand DrivenSupply Chain” strategyinvolves utilizing smarter sup-ply chains to reduce cycletimes, improve customer ser-vice and drive profitablegrowth. More companies arerealizing that business processinnovation and improvement –not just new products andtechnologies like RFID - aremajor sources of competitiveadvantage. In the article titled“RFID: What’s in it for me?”many supply chain stakehold-ers are finding the answerdepends on whether their roleis a retailer, vendor or logisticsservice provider.

Now more than ever weneed creative informed leaderswho will unite together toshape tomorrow’s destiny bythe pro active decisions theymake today. We at DBM aregrateful to have this type ofthought leader involved withthe SCLA 2008 ExecutiveForum and as editorial contrib-utors to this edition of theDBM Journal.

Amy Thorn,

Publisher and Executive Editor

DBMJ

7DBMJ 6

This hyper-industrial activity createsthe transportation logistics equivalentto space junk.

Thousands of parts and pieces ofmanufactured goods are fl oatingabout, polluting the outer orbits of theglobal supply chain. Gallis said, “As aresult, our transportation channels areswamped with a myriad of partsneeded to produce a final product.Products being consumed today—computers, televisions, automobiles—are much more complex than theirantecedents and require many moreparts and pieces than previously con-sumed goods. However, even simplearticles of clothing are being built dif-ferently.

“Today, thread arrives by truck fromone location, the weaving is done inanother and the cutting and assemblyin still other locales around the world.Several assembly plants are requiredto make just about any product. Lessthan 20 years ago a single factory didthe work of all the assembly plants.The truck movements betweentoday’s assembly plants tax theworldwide logistical supply chain—especially roads and bridges.” Gallisconcluded, “Look at product labelstoday. They often say ‘assembled in’not ‘made in,’ meaning many parts toa single product being shipped fromChina and India and landing at U.S.ports. This poses a heavy burden onour infrastructure.”

The consequences are clear.Because infrastructure investment

isplants, which in turn ship billionsofgoods to the U.S., the same good-sthat are overwhelming our agedinfrastructure.In less than 20 yearssome predict China’s economy willeclipse Japan’s, becoming the secondlargestin the world. Worldwide, Chinacontrols 25% of all cargo-containertraffic and owns as much as 60%ofthe import- and export-containertraffic between Asia and Europe.China provides America with 62% ofits footwear and 65% of its toys.Nearly half of the world’s clothingexports originate in China.

Meanwhile in India the stock markethas been increasing by an average ofover 45% every year since 2005. Carsales will triple in the next sevenyears. Suzukiis already selling morecars in India than they are back homein Japan. And housing has beenbooming inboth countries foryears.China’s economy, however, hasleft India’s in the proverbial dust,

growing to nearly three times itssize.Back in the 1980s, the twoeconomies were similar in size, buttoday China’s economy has the high-est sustained growth of its magnitudein world history. Twenty years afteropening its economy, capital incomeincreased by 400%. Gross domesticproduct doubled in Chinabetween1980 and 1990 and then dou-bled again between 1990 and 2000.More importantly to the Chinese, thishas meant 175 million of its citizensfinally had more than just a dollar aday to live on. Making the world abetter place to live, this miracle hasreduced the world’s poverty 75%.TheChinese miracle is mostly credited tothe nation’s commitment to its super-structure investment.

Remarkably, over the past 10 yearsabout 60% of governmental expendi-tures on infrastructure has gonetoward highway construction. TheChinese government, along with theWorld Bank, see highways as havingreduced poverty while creating astrong market economy.Understandably, the Chinese aredetermined to keep building.Highways are at the center of thecountry’seconomic successes, whichhave reduced poverty. In a similarway, but in a different time, the worldsaw what rebuilding the auto bahnand investing in other critical infra-structure did for western Europe afterWorld War II. In June 1963, while inFrankfurt, Germany, John F. Kennedytold the citizens of another risingeconomy, “As they say on my ownCape Cod, a rising tide lifts all theboats.”

In 25 years, China was able to liftthe boats of some 400 million of itscitizens, pulling them out of povertyby putting them on the road to beinga world superpower.

Not the Taj Mahal of roadsAmerican infrastructure projects are

taking decades longer to completethan they should. The “Big Dig” inBoston was to be completed by 1998.In 2008, the project is just now wrap-ping up with serious questions aboutthe quality of work. In contrast, theChinese government is more than adecade ahead of schedule on a pro-ject that makes the Big Dig looksmall. Originally, China’s 21,700-mile-long National Trunk Highway System,a project of 12 interstate highways,was to be completed by 2020. Today,

Special Report:Reprinted with permission from the March 2008 • ROADS & BRIDGES

12 years ahead of schedule, the workis done.

Instead of sitting back, the Chinesegovernment has increased the scopeof their new interstate system. TheWorld Bank reported, “In 2004 theChinese government approved anexpanded Highway System, or the‘7918 Highway Network.’ The plan tobuild seven capital radials, nine north-south major highways and 18 east-west corridors, totaling some 85,000km of high-grade expressways, isexpected to be completed in 2020.”

This plan means that all 1 billionplus Chinese living in 30 provinceswill be connected to one another by a52,700-mile interstate system. Thegoal is to put the people in the citiesof 500,000 close to a modernexpressway.

Along the eastern coast, heavilypopulated cities will be no more than30 minutes from a major expressway,the central areas within an hour andthe sparsely populated western areaswithin two hours of a superhighwayon the 7918 system. Only 20 yearsago, China’s road infrastructure waslagging behind India’s. Today, India ismaking a desperate attempt to catchup by growing its own highway sys-tem. They have a long way to go.

Harvard Business School graduatesLynn Moloney and Kartik Seshan weremarried in India in fall 2007. The cou-ple spent their honeymoon in China.“The differences in roadwaysbetween India and China wereastounding,” explained Moloney, aworld traveler and magazine editor.“The Chinese are masters of infra-structure. Their centralized govern-ment is planning far ahead of India’sdemocracy.

It’s no surprise that their highwaysin China are big and beautiful. In India,it takes a lot longer to get where youare going. Even the new ring roadsaround cities are already jammed tocapacity. “In Bangalore it takes anhour to go a mile. While traveling onhighways from Delhi to the Taj Mahalwe were subjected to three hours ofcrappy, rugged roads. Trucks, carsand scooters kicked up dust pollutionthat was as bad as I’ve ever seen.”

India’s roads, wrote New YorkTimes reporter Amy Walden, are “bet-ter suited to bullock carts than motorcars. In the 50 years after indepen-dence, the government built just 334miles of four-lane roads.” Walden

reported that India is in the process ofbuilding an American-style interstatehighway called the GoldenQuadrilateral, a 3,625-mile highwaysystem that is redefi ning travel in thetransportation-challenged nation.

According to Walden the newsuperhighway will run through 13states and the nation’s four largestcities. She explained, “The highwaywas conceived in 1998, soon after aHindu nationalist-led government tookpower. The prime minister at the time,Mr. Vajpayee, quickly ordered a seriesof nuclear tests and later that yearannounced the highway project.” Sheadded that Vajpayee proclaimed tothe inexperienced builders of the newsuperhighway, “You are not only mak-ing money, you are building a nation.”

According to UPS, however, it is stillvery slow-going. “You could be stuckin traffic and get overtaken by a cow.Sometimes it’s diffi cult to tell the dif-ference between parked vehicles andthose that are meant to be moving,”explained Andy Connelly to the WallStreet Journal. Connelly, who is asenior vice president at UPS Asia, ischarged with mastering the logisticsof chaos. India, with its more-than- 1billion potential customers, is toogreat a market to ignore. Connellyexplained, “it’s absolutely worth theeffort. We pride ourselves on our efficiencies, and we have to rewrite therule book.” India and China are thebest bets to expand lackluster growthfor nearly every sector of U.S. indus-try—even the package-delivery busi-ness.

Regardless of India’s recentprogress, it will be unable to keeppace with China’s development. Thereason is simple: right-of-way. India, ademocracy, must struggle with dueprocess. Roadway or runway expan-sion plans run afoul of individualrights in India. In Mumbai, planeswaste time fl ying in circles and burn-ing fuel as they hang in suspense forclearance to land. The skies aroundthe airport are notoriously congestedbecause Indian aviation authoritieshave been unable to expand the run-ways into neighboring slums.Meanwhile in China, a decision tobuild a single project may displacethousands of people in little time—putting them ahead of their alreadyambitious schedules—making China anew world superpower.

These tsunamis were triggered byfreight movements and manufactur-ing activity in the 1990s somewherebetween the Indian Ocean and theSouth China Sea. Over the decades,waves of freight of increasing sizehave been rolling across the Pacifi c.

Soon—perhaps already—they willcrash on our western shore in theform of tidal waves creating havocand destruction to U.S. infrastructure.

Predictions are these freighttsunamis will jam our seaports withcargo containers. City highways willbe gridlocked with trucks. And theInterstate System will be brokendown by the highest levels of trucktraffic ever.

In 2005, while giving a speech at amobility conference in Long Beach,Calif., Dr. Peter Ruane of the AmericanRoad & Transportation BuildersAssociation fi rst applied the phrase“freight tsunami” to the highway billdebate. Ruane was making the pointthat the ever-increasing rise in import-ed goods—met with indifference anddisregard in Washington, D.C.—wouldinevitably jam our ports and high-ways. As startling as Ruane’s use offreight tsunami is, some say it is notalarming enough. “I dislike this termbecause it implies a sharp, one-time

Dan McNichol, Correspondent

surge of freight demand. I’d prefer todescribe the future of global trade-dri-ven freight demand as ‘relentless,’”explained Paul Bingham, principal ofGlobal Insight Inc. in Washington, D.C.“It is the sustained nature of this long-term trend for the U.S. that presentsthe real challenge to the U.S. econo-my and the country’s infrastructure.”Bingham is not the only one to pre-dict relentless freight tsunamis over aprolonged period.

Michael Gallis, one of the nation’sleading experts in transportationdevelopment strategies, sees thefreight crisis in the most dramaticterms. “This nation has already beenhit by a few freight tsunamis over thepast decade. The storms are only justbeginning. We are going to see more

and more freight tsunamis, eachone getting more intense than theones before it.”

Gallis explained that predictions ofintense global growth have beengrossly underestimated. “In 2000, pre-dictions were that the world econo-my, a $30 trillion affair, would grow to$40 trillion by 2010. Well, we had a$40 trillion worldwide economy onour hands as early as 2004. The worldis consuming goods at rates fasterthan anyone predicted.”

Editorial:

DisruptiveDemographics in Supply ChainBy Kevin F. Smith – SVP Supply Chain & Logistics, CVS Caremark

T he distribution center was eerily quiet. It had been that way for weeks

since the last two octogenarianshad cleaned out their lockers andretired – this time, for good. TheDC manager scurried around andattempted to fill the orders, but itwas obviously a losing battle.Within a week or two the compa-ny would be out of business. Notbecause there were no orders;demand was better than ever.The problem, which had beengrowing for over a decade, wasthat there was just nobody to hireto do the work of distributing thecompany’s goods. It was a cruel

way for an enterprise to die.There was plenty of product, peo-ple were anxious to buy it, butthere was no one to pick andship it. The DC manager turnedoff the lights and went home.

If the story above sounds likescience fiction or the script for anepisode of the “Supply ChainTwilight Zone”, think again! TheUnited States is poised for atremendous labor shortage dueto the lagging effects of decliningbirth rates in the next ten totwenty years. This phenomenonhas been termed, “DisruptiveDemographics”.

European countries, especially

Germany, Italy and France arealready in serious trouble with ahead start on population decline.In fact, it is estimated that over thenext decade Germany will requireover a million immigrants a year tokeep their economy going. Mostof those immigrants are currentlysourced from former Eastern Bloccountries, Southwest Asia,Pakistan and India. This has, ofcourse fueled other social issues,but that is not the problem athand.

In the United States, over 70 mil-lion so called “Baby Boomers”(people born between 1946 and1964) are poised to retire over thenext decade. When they leave,they, as their predecessors, willtake with them a wealth of knowl-edge and expertise. The scary partis that there are only about 50 mil-lion GenXers and GenYers comingalong to take their place. A gap oftwenty million workers is a veryserious problem for supply chainand logistics operations.

So, what caused this to happen?Well, in the 1950’s the averagebirthrate per woman in the U.S.was 3.7 children. Over 50 yearsand into the current decade theaverage has dropped to 2.0 chil-dren. That is a precipitous drop.This is driven by the fact that 20%of Baby Boomers have no childrenand 25% have only one child.

With industry turnover between20% and 40% a year there is aconstant need for new hires and asteady supply of candidates to fillopen positions. Quick math basedon the statistics above leads to theconclusion that supply chain andlogistics will have to competefiercely for new workers in years tocome.

In the last decade businessesare competing more for peoplewith much less strenuous (somemight say more attractive) serviceindustry jobs. Most of these jobsrequire talking on the phone, send-ing e-mails and working from acomputer screen. Something forwhich, based on casual observa-tion, the newer generations seem

pre-eminently qualified and intel-lectually predisposed. And, canyou blame them? Third shift in 100degree summertime work environ-ments or first shift in air condi-tioned offices; it does not seem adifficult decision.

In the CVS Caremark distributionnetwork, there has been a markedreduction in the number of truly“young” (twenty-somethings)applying for jobs. In fact last yearthe average age of new hires inthe DC’s was 31 years old. Over100 of the new employees, 10%,were over 50 years old! Thesemetrics shed light on what thedemographic make-up of ourworkforce could be.

While the average age of associ-ates in CVS Caremark’s DC net-work is currently just under 42years old, it is anticipated that in10 years the average age will beapproaching 44 years old. Over33% of our workforce will be over50 years old in a decade. Overtime we can extrapolate wherethis will take us. And with conven-tional wisdom these statistics pro-vide a scary proposition for thefuture of logistics.

OK. So is it hopeless? Of courseit’s not. In fact, even though thishas not been a conscious, top-of-mind issue, we have been quietly,perhaps unknowingly preparing forjust this type of future state. Thinkabout some of the things that aredone in supply chain and logisticstoday, consciously or not, to offsetthe need for additional labor. Manycompanies have added extensiveautomation that essentiallyreplaces human intervention at keypoints.

Automated Storage and RetrievalSystems (ASRS) has become com-monplace, especially for longerterm storage of bulk or promotion-al items. Inbound receiving hasbeen either automated or semi-automated in many businesses inorder to at least reduce theamount of human “touches”required to bring products into dis-tribution operations. More aggres-sive automation schemes have

sought to replace entire processeswith no-touch or lights-out applica-tions.

Ergonomically designed equip-ment and processes have less-ened the incidence of workplaceand repetitive motion injuries.Advances in pick-to-light, computerdirected and voice directed pickand put away have reduced thereliance on hard to read paper doc-uments. This has made it easierfor a wider range for workers tobecome and remain highly produc-tive.

The emergence of automatedsystems and human-assistprocesses has also had a residual,if not unintended, effect on theworkforce. By reducing theamount of physical labor and plainbrute force required to performtasks in distribution centersautomation has effectively sloweddown the “wearing-out” processon people. In other words, the lessphysical the activity, the longer aperson will be able to perform thejob.

There is a happy convergence ofcoincidence here, as well, sincepeople are living longer and stay-ing healthy longer. Some of thismay be cause and effect, but thefact is that people are available towork longer. One hundred yearsago, at the turn of the century theaverage life expectancy was 47years. In 2008 the average expect-ed lifespan is nearing 78 years.That is a 66% increase in “timealive” in just one century!

In the early 1900’s about 4% ofthe population was over 65 yearsold. Now 14% of people in theU.S. are over 65 and that numberis continuing to grow. By the year2050 there will be 21 million peo-ple over 85 years old, up from 5million today. There will also beover one million people over 100years old compared to only 80thousand as you read this. Mostof these 22 million people will stillbe both customers and con-sumers. Many of them will contin-ue to work.

In today’s workforce 13% of

people over 65 choose to continueto work. Fully 60% of peoplebetween 55 and 64 years of agechoose to work versus retire.There are a number of reasons forthis. Some workers want to main-tain a standard of living or to retaincompany sponsored health bene-fits. Others want additional dispos-able income to allow them toenjoy leisure activities like golf,boating or travel. Some peoplehave over-extended themselves byinvesting in housing or educationbeyond their means. Still othersare simply afraid of outliving theirmoney.

So, let’s go back to the “happyconvergence of coincidence”.People are living longer, they wantto work longer, and now the coin-cidence is they are needed towork longer to offset the lack ofnew workers entering the job mar-ket. As mentioned above, due to anumber of changes in supply chainand logistics people are able towork far beyond the years previ-ously believed reasonable.

Additionally, there has been avery gradual, quiet shift in benefitsthat also serves to help retain olderworkers. The emergence of health-care reimbursement accounts,long term care insurance, supple-mental life insurance and flexiblework schedules have allowedcompanies to attract and retainolder workers. Happily, moremature workers report that theywant to be productive, have mean-ingful work and share their knowl-edge and expertise. By the way,older workers, despite what youmay think, are not less productive,do not sustain more injuries anddo not incur more sick days thantheir younger colleagues.

Within CVS Caremark matureworkers stay 3 times longer,appear to care more about cus-tomers, set good examples foryounger associates and are anxious to share their knowledge.

In short, they are among themost dependable employees. And,there are many of them already in

8 9

(continued on page 00)

11

margin in the process.Otherwise, this is a race to thebottom. And a bigger truck justwon’t help.

The basic mantra over the pastfew years has been to focus onbeing lean, agile, demand-drivencompanies. And there is anabundance of examples of com-panies that have done just that,or are at least headed that way.Achieving this agility can comewith a cost. If you are not care-

ful, you may unwittingly let mar-gin erode as you discount toomuch in your pricing and quot-ing, or expedite more, incur pre-mium freight charges, produc-tion schedule changes at the lastminute, etc., all in the name ofbeing more responsive.

The good news is that today’sindustry leading companies aresuccessfully employing smartersupply chains to reduce cycletimes, improve their customerresponse and drive profitablegrowth. In AMR Research’sannual look at some of theworld’s best supply chains, theyfound that companies who rankin their Top 25, like Procter &Gamble, Johnson & Johnson,and GlaxoSmithKline, carry lessinventory, have shorter cash-to-cash cycle times and are moreprofitable.

How are companiesachieving this level of performance?

Effective exception handling hasbecome one of the most impor-tant competencies of top supplychain companies, especially thosewho have made significantadvances in demand driven per-formance. The true test of a highperformance demand driven sup-ply chain may well be what hap-pens in exception handling "whengood orders go bad."

Profit margins on customerorders can suffer in two basicways: via problems with pricingdiscipline, leading to a pocketprice that is substantially lessthan the target price, and viadownstream execution problemswhere excessive costs areincurred. On the execution side, asurvey of over 200 manufacturershad some interesting findings:

– 74% have maintained orincreased costs related to expe-diting – 15% of shipments are late as aresult of data inaccuracies – About a third of the respon-dents have had to add supportstaff to comply with governmentmandates These results come from

increasing competitive pressuresand the lack of visibility to what isoccurring from the first point ofcustomer contact, to when theorder gets shipped and billed. Incompetitive markets, cost increas-es to manufacturers are seldompassed on fully and immediatelyto end customers. It has becomecritically important then to under-stand how to best deal with orderexceptions and how to cost-effec-tively address the problem orders– ones that don’t follow the“happy path.”

Visibility for ImprovedDecision Making

Technology alone won’t solveall the issues associated withexception handling for thedemand driven supply chain.

T here is an old joke that ends with “I’ll just get a bigger truck.” Many of

you will recognize this story asthe one where an enterprisingfellow is losing $1 on each wid-get he drives to market so hedecides he’ll make it up in vol-ume. Humor aside, as compa-nies rush to create more respon-sive, agile, demand driven sup-ply networks, they need to besure that they are not sacrificing

Industry Article:

Demand DrivenPerformance By Deb Miller, Director of Manufacturing & RetailStrategy, Software AG

However, there is a class oftechnology, Business ActivityMonitoring (BAM) that can pro-vide the underlying tools forimproved decision making --end-to-end process analytics,problem history reporting, root-cause analysis, and perhapsmost importantly, real-timeexception handling.

Automating KeyWorkflow Elements

One key technology capabilitythat can assist with demand dri-ven performance is BusinessProcess Management (BPM)software. One leading manufac-turer with a multi-billion dollarsupply chain had created an ICC(Integration Competency Center)to integrate multiple order man-agement systems across chan-nels with its back end fulfillmentsystems. Their order-to-cashprocess consisted of fourteendistinct sub-processes. Even ifeach of these sub-processeswere performing at 99.5% relia-bility, this would only equate to93% reliability for the end-to-endsystem. In other words, 70orders out of every 1000 1000could experience some type ofproblem. The firm knew theyneeded to improve the reliabilityof the processes they had suc-cessfully integrated.

In particular, it was critical tomeet tight delivery times to theirhigh value customers.Exceptions, such as a problemwith external communications,an EDI problem, or data consis-tency issue could sideline anorder in an exception queue forlong enough to miss the deliverywindow or require expensiveefforts to correct the sidelinedorder in time for delivery. Thiswould not only bring financialrepercussions, but could alsodamage key customer relation-ships. If missed delivery win-dows happen repeatedly, thecustomer may well turn toanother more trusted supplier.

Yet, response could not beachieved at any cost.

For this company, a static viewof things such as inventory bal-ances was not sufficient; theyneeded a real time view of theirorder-to-cash process andincreased automation in criticalworkflows. They used BPM soft-ware to accelerate issue resolu-tion through isolation of relevantdata points and correlation tothe issue. The key businessprocess owners then could ana-lyze, visualize and prioritizeprocess anomalies, allowingthem to deal with the most criti-cal issues first.

The resulting highly automatedprocess requires more than 30process steps and handoffsbetween several systemsinvolved in the order capture andfulfillment. Each of the thou-sands of orders a day is trackedat each step and any exceptionor extensive delay at a step ifhighlighted for manual interven-tion. For example, time spentchecking orders with duplicatePO numbers that get flagged asexceptions can be minimized.Often, this is simply a customerre-using a blanket PO number,but specifying different lineitems, and thus is no problem.

Lessons LearnedFor a company to be truly

effective at demand driven whilemaintaining critical margins,right time analytics may be a keyfirst enablement, but you alsohave to be organizationallyresponsive to change. The abilityto see the problem order isimportant, but then it is neces-sary to route the problem to getit automatically addressed via acompliant process that includeshuman task and workflowprogress.

A recent webinar fromConsumer Goods Technologyand IDC Shared Insights high-lighted that the focus ondemand driven efforts are shift-

10

DBMJ

12

Leading companies have cometo realize that business processinnovation and improvement –not just new products or ser-vices – are major sources ofcompetitive advantage in theirown right. Companies that haveadopted this mindset employ amore disciplined approach toprocess management. Theyidentify those business process-es that matter most – and formanufacturers, distributors andretailers surely the supply chainprocesses would count amongthem, even if you do outsourcesome of them – and then theydigitize them. Business ProcessManagement (BPM) technologyis the leading means for accom-plishing this, as it ties togetherall aspects of a process bothfrom a descriptive and executionperspective, and from a line ofbusiness and IT perspective.

Digitizing business processesin this way drives processimprovement in the followingways:

•Process standardization•Alignment of IT and business

on processes•Controlled process adaptation

Digitizing processes creates astandard for how the processshould work. It forms the basisfrom which baseline processperformance, including processvariability, can be measured. Itcreates a common understand-ing of a process between IT andthe lines of business. It is easierto discuss how a process mightbe improved if it is clear to bothsides what the potential ramifi-cations are for making changes.Finally, it creates a framework forreusing or extending processesin a controlled way (often rein-forced by IT SOA – ServiceOriented Architecture - initia-tives). Reuse is not just about

improving productivity in devel-oping and deploying new capa-bilities. It is also about increasingthe overall quality of systemsand processes that are adapta-tions of existing ones.

Systematically Capture &Analyze Process Data

Systematically capturingprocess data gets at the heart ofone of the chief headaches inmost process improvementmethodologies such as SixSigma’s DMAIC (Design,Measure, Analyze, Improve, andControl). It is not uncommonfor Continuous ProcessImprovement (CPI) teams tospend weeks if not months gath-ering data from which to drawconclusions on how to improvea process. Having highly skilledCPI practitioners spend theirtime this way is essentially non-value added effort that shouldbe eliminated. What is neededis an automated way to capturesignificantly more – we won’tsay all, because not all relevantdata is accessible electronically– relevant process data.

A best practice is to instru-ment key business processes sothat operational KPIs are cap-tured automatically, relying uponthe information architecture anddigitized business processesdescribed previously. From aprocess improvement perspec-tive, it is desirable to be able tomore closely monitor certainprocesses or parts of theprocess in order to gain a morecomprehensive understanding ofprocess behavior. Ideally, then,once process improvementshave been made in that area, themonitoring activity can be scaledback to more normal levels, anddetailed monitoring applied toother processes that aredeemed ripe for improvement.

DBMJ

ing to being “demand aware andfulfillment driven.” Perhaps thisis semantics, but it definitelyputs the emphasis on visibilityand execution. In the fast-mov-ing consumer goods/retail sectorthis lever is becoming increas-ingly important to attack out-of-stock rates that can regularlyreach and exceed 10 percent infaster selling and/or promotedproducts.

Effectively addressing the issueof margin erosion requires real-time access to process data,rapid adaptability to changes inthe supply chain (including newtrading partners), and the abilityto enforce a disciplined approachto supply chain execution.

The result is not only improvedconsistency of customerresponse, but close control ofdecisions that can affect profits.

In fact, AMR Research foundthat the business payoff forcompanies with high order per-formance levels in their supplychain can be substantial. “A 3percent improvement in perfectorder fulfillment translates to a 1percent increase in profits, whilea 10 percent increase means anadditional 50 cents in earningsper share.”

The first step is to establish arobust, complete business-to-business integration architecturethat not only creates a moreagile, demand-driven network,but also ensures real time visibil-ity of information with a BAM tomonitor. This can positivelyaffect the ultimate profitability oforders flowing through the sup-ply chain. A second key step isto use BPM to create a powerfulenvironment for “Digital SixSigma”, a disciplined, sustain-able environment for high perfor-mance demand drivenprocesses.

By Deb Miller, Director ofManufacturing & Retail Strategy,Software AG

Email: deborah.miller@soft-wareag.com

13

The ABC’s of BPM

DBMJ

1514

W al-Mart announced its RFID initiative in 2003. We are now entering

the sixth year of this initiative, onethat seems to stretch to the hori-zon in perpetuity. In the November5, 2007 issue of Traffic World,William Hoffman wrote, “Despitehigh implementation costs, suppli-er resistance and dearth of usefulinformation about its efforts andtheir results, Wal-Mart’s five-yearexperiment with radio frequencyidentification is inspiring execu-tives to make bold predictions forthe technology’s eventual suc-cess.” What is the basis behindthese predictions of success?

Indeed, many supply chainstakeholders are asking them-selves, “RFID: what’s in it forme?” The answer, dependingupon whether your role is that ofretailer, vendor or logistics serviceprovider (LSP), is: “A Lot”,

“Some”, or “Not Much”, respec-tively.

Benefits of RFIDGenerally, the benefits of RFID

are touted as increased productavailability at shelf level, theftreduction, reduction of other cate-gories of shrink, productivityimprovement and pricing improve-ment. These benefits vary basedon the degree to which RFID isimplemented in a network, i.e. tothe pallet level, case level, or itemlevel. For the sake of argument,let’s assume this framework to bevalid, and take a look at how thesebenefits are distributed among themajor stakeholders in supply chainexecution at the greatest degreeof execution—the item level.

Imagine this scenario: assume aperfect implementation of RFID ata large retailer in the form ofElectronic Product Code tags on

each box (an EPC tag is a radio-frequency tag that will transmit inresponse to a radio wave signal.The tag transmits the UPN, loca-tion and other information similarto that contained in a traditionalbar code label). Further, assumethat all associated processes andtechnologies required to reap thefull benefit of these EPC tags arealso in place. In this RFID utopia,a box of detergent would transmitits position in real time to an in-store inventory replenishment sys-tem. The detergent will signal itslocation at any point in the store:in the back room, on the shelf, atcheck-out, and through the radioantenna stalls at store exits thatalert if the product did not checkitself out by responding to a signalfrom an RF cash-register. If nosignals come from a shelf, astock-out is noted by the in-storeinventory management systemand replenishment of the shelfoccurs. The work flow and back-room picking is directed by adevice that instructs the store per-sonnel the out-of-stock item, thequantity required, the storagelocation from which to pick, andthe shelf location to replenish.Essentially, real-time visibility foreach box of detergent at everystage of its lifecycle from themoment a finished good is associ-ated with an order at the vendorfactory through check-out at aretailer is provided for that uniquebox.

So what benefit does all this vis-ibility truly provide? Let’s reviewthe benefits of product shelf levelRFID associated with a brandeddetergent. We will track the bene-fit to the mass merchant, themanufacturer and the logistics ser-vice provider who warehousesand transports between manufac-turer and merchant.

The Benefits to theRetailer

Availability: Logic dictates thatincreased availability should leadto the benefit of increased sales.At shelf level, a leading detergentmay sell twelve boxes per hour

“RFID: What’sIn It for Me?”

Industry Article:

(one every five minutes). If anaisle is manually inspected everyhalf hour, it is conceivable that theshelf could be empty for a full thir-ty minutes, the equivalent of sixlost sales. If item-level RFID hadbeen deployed, replenishmentwould have been triggered prior tothe stock-out. Accurate and rapidreplenishment from the backroomto the shelf should in theory helpprevent lost sales due to unavail-ability.

Theft reduction: An RFIDantenna stall at all store exits cansignificantly reduce theft. TheRFID tag is activated by an exitantenna, alerting to an item leav-ing a store that has not beenchecked out. Theft and shopliftingcan range up to 1% of sales andcan be nearly eliminated withRFID. However, many retailershave long used similar theft detec-tion technology to this end. Thebenefit of theft reduction fromRFID may be marginal above thatof existing technologies for thoseretailers.

Shrink in general: Other cate-gories of “shrink” can include lostor misplaced product, returns, anddamaged goods. RFID implemen-tation can certainly reduce mis-placed product, and also has theability to reduce the amount ofproduct a retailer returns to a man-ufacturer. This has the greatestrelevance for code-dated merchan-dise such as perishable food orseasonal items such as Halloweenparty supplies. For these items,display at shelf is critical to maxi-mizing sale during the relevanttime period, thus minimizingreturned product. In many casesthe mass merchant won’t bear theproduct cost of these categoriesof shrink since there are often con-tract obligations for the manufac-turer to accept return product.However, there is still retailer costfor multiple handling that can bereduced or eliminated.

Productivity: At a retail store,the largest productivity gains fromRFID come from the labor requiredto perform receiving, shelf moni-toring, picking, and checkout activ-ities. Because retailers are likely to

receive mixed shipments, RFIDcan simplify the receipt process.Without active RFID reporting oninventory at shelf, a person mustinspect and count to verify theshelf level presentation and in-stock position. Locating stock inthe back room may involve timespent searching for items shownin inventory, but not properly locat-ed. Some of these aisle tours willbe wasted since shelf levels maybe adequate. Without RFID, aschedule of aisle tours must bemaintained, regardless of need.With RFID, all of these tours areeliminated. Finally, RFID canenable automatic check out toeliminate check-out labor orincrease cash register productivity.

Price Improvement: RFID canenable revenue management bymore closely monitoring inventorylevels and obviating when mark-downs are required to move agingproduct.

The results? The benefits for aretailer are easy to state and canbe substantial.

The Benefits to theManufacturer

Availability: Increased availabilityof detergent at the shelf level willbenefit the manufacturer, but notnecessarily to the same degree asthat of the retailer. This is becausea stock-out at shelf level of abranded box of detergent may ormay not actually result in a lostsale. Brand loyalty is strong formany personal care items andconsumables such as toiletriesand detergents. A detergent stockout at Wal-Mart may result in asale of that detergent at Target(and vice versa). In other words,stock-out is not congruent with alost sale for the manufacturer. Themore brand loyalty, the less risk astock-out at a particular store willresult in a lost sale.

Theft Reduction: Theft at a retailstore is not the responsibility ofthe manufacturer, so the opportu-nity to reduce theft is typically lim-ited to that which occurs at themanufacturing plant or a vendor-operated distribution facility.Depending upon the freight terms,

liability of goods probably ends atthe plant or is picked up by eitherthe logistics service provider or theretailer. However, a manufacturerwill still reap the benefits ofenabling more sophisticatedemployee monitoring and trackingof assets. Quantifying the extentof this benefit depends on thetype of goods a retailer sells.Theft loss is not a significant costitem for many consumer goods.As the goods become moreexpensive, such as consumer elec-tronics, then in many cases RFIDand security has already beenimplemented to control loss.

Shrink in General: As men-tioned above, return of dated andseasonal product often is theresponsibility of the vendor. In ourperfect implementation, the ven-dor can see the product inventoryin the back room at store level andat the shelf. This precise informa-tion can enable better replenish-ment, forecast and inventorydeployment. In this case, benefitscan be significant for the vendor.

Productivity: The consumergoods warehouse and supplychain is very efficient, in general.Bar coding and laser/RF hand-heldmechanisms for product identifica-tion have already enhanced pro-ductivity by reducing time spentreading and handling paper.

Price enhancement: By facilitat-ing fewer returns, RFID within aretailer can increase price yieldsfor a vendor.

Results: Medium overall for avendor-manufacturer of fast mov-ing consumer goods.

The benefits to theLogistics Service Provider

Availability: In the majority ofLSP contracts, product availabilityis not the responsibility of the LSP.While an LSP may be accountablefor inventory in transit or in an LSPwarehouse, the specific availabilityat shelf level has little relevance tothe LSP. The information streamavailable from RFID may help aLSP to schedule replenishmentfrom a distribution center.

Theft: Reduction of theft isimportant while goods are in the

James W. Moore, Vice PresidentRyder Supply Chain Solutions

DBMJ 16

care and control of an LSP, particu-larly for high value goods such aselectronics or tobacco. However,the largest losses in-transit arecaused by hijackings, whichwould not be impacted by EPClabeling. Theft reduction wouldbe limited to those instances thatmight occur in a warehouse oper-ated by the LSP.

Shrink in general: Certainlythere can be some benefit fromshrink reduction for an LSP. Lossof product due to misplacement ina warehouse would be minimized,and inventory accuracy wouldimprove. Mis-shipments andover-shipments would be far lesslikely to occur.

Productivity: To the extent thatinventory accuracy wouldimprove, an LSP may experiencerelated benefits of increased pick-ing productivity and a reduction ofmis-picks. The same goes forreceiving processes—the laborrequired to receive a truckload ofmerchandise may be reduced byimplementing RFID. However,most modern warehouses havebeen using existing forms of RFtechnology to enable the perfor-mance of these functions with keyperformance indicators (KPIs) inthe high ninety percent range.Improvement over these existingprocesses would likely be margin-al. Albeit, there are labor improve-ments with RFID vs. handheldscans – much quicker to receive(pallet and carton rfid labels),much quicker to do cycle counts,can be faster to pick and ship. Butthis assumes all items receivedare already tagged - it’s actuallymore expensive for an LSP toapply and use tags in the DC thanto just use barcodes – slap andship is expensive. During the peri-

od when part of receipts can beenabled by RFID tags and partcannot, productivity can actuallydecrease.

Price Improvement: An LSPwill not experience price improve-ment from EPC.

Results: Low benefits to LSPsduring the transition period of par-tial implementation of RFID / EPC.

Benefits vs. Cost toImplement

The next logical question for asupply-chain stakeholder to ask is,“Should I implement RFID?” Ifyou’re a vendor selling through amajor retailer like Wal-Mart, part ofyour sales agreement may beRFID compliance, with penaltiesfor non-compliance. If you have achoice in the matter, you may bebest served to be a “fast follower”.

The list of costs to implementRFID is long: development, soft-ware, integration, testing, EPCtags, antenna stalls, training, com-pliance enforcement, and so on.Plotting these costs against thebenefits of RFID reveals a dismalbusiness case, especially for ven-dors and LSPs.

The cost to implement shouldeventually decrease as a fewmajor retailers set standards for

the technology and technologicaladvances drive down cost.

ConclusionThe full benefits of RFID won’t

become known to us until thetechnology plays out in the marketa bit further. It’s possible that ben-efits we have down-played thusfar, or haven’t really considered,will emerge as the technology isrefined and advanced. Despitethe promise of RFID to link cashregister level purchase informationback to the production line, it ismore likely that productivity gainsfor retailers will provide the mosttangible benefits.

A glance at the future of RFIDreveals only a few certainties.First, RFID implementation is anenvironment of certain cost, withonly probable benefit. Second, theprobable benefit varies based onwhich seat in the supply chain youoccupy—the benefits are less for amanufacturer than they are for aretailer, and a still less for a LSP.Existing technology, unsophisticat-ed as it may be in comparison, isalready providing many of the ben-efits of RFID. Incremental benefitsover and above existing technolo-gy are marginal, while the cost toachieve those benefits is signifi-cant. Therefore, one would beserved well to closely examine thebusiness case before choosing toinvest heavily in RFID implementa-tion.

It remains true that if RFID tagsare applied as early in process aspossible, there is value in takingcosts out of all areas of the supplychain. However, we are early inthe process to achieve these sav-ings—they will come as the RFIDarea matures. There is also valuein the transportation arena to loadand unload the correct items, inparticular in a Direct Store Deliveryenvironment. The technology isstill maturing, but most large retail-ers will be requiring this in thenext few years. We have justtouched the tip of the iceberg asfar as usage and ideas to takecosts out of the supply chain.

Impact Area Retail Benefit Vendor Benefit LSP BenefitAvailability High Medium ZeroTheft High High MediumProductivity High Low LowShrink Medium Medium LowPrice High Medium Zero

RFID Benefits to Retail, Vendor or LSP

17

In appreciation to the University of Florida, Warrington College of Business Administration,

for awarding the 2008 Certificate of Advanced Education and

continuing education credits.2008Supply ChainLeadersIn ActionOfficialDirectoryandReferenceGuide

18 19

Abbott LabsJohn Ginascol, Div., VP Global Supply Chain

Andersen Corp.Lance Whitacre, Director of Logistics

Baxter HealthcareMike Santowski, Vice President Renal SupplyChain

Bayer HealthCareJohn Herzig Jr., Director, US CustomerLogistics

BlockbusterWilliam Wissing, SVP Operations

BNSFSteve Branscum, Grp. VP Consumer Products

C & S Wholesale GrocersScott Charlton, EVP Distribution &Transportation

CabelasBrian Linneman, COO

Chiquita Brands InternationalDaverl Maserang, SVP

CVS/pharmacyKevin Smith, SVP of Supply Chain & Logistics& 2007 Chair, SCLA Executive Committee

Darden RestaurantsJim Lawrence, SVP of Supply Management &Purchasing

Deere & CompanyThomas Knoll, VP Worldwide SupplyManagement & Logistics

Del Laboratories/Coty Inc.Cary Newman, EVP, Global Operations

DuPontKathryn Stone, Director Logistics

Furniture Brands InternationalMike McBreen, VP Supply Chain & Logistics

GlaxoSmithKlineMary Quinlan, Director of Supply ChainOperations

Henry Schein, Inc.Donna Gilbert, Director Global Supply Chain

The Hershey CompanyBruce Hancock, Director, WASTE Reduction

The Home DepotMichelle Livingstone, VP of Transportation

Johnson & JohnsonAllison Campbell, Director, Logistics

Kimberly-ClarkMark Jamison, VP, N.A. Customer SupplyChain

KraftAgnes Feliciano, Vice President

McKessonDonald Walker, SVP Global Operations

Molson-CoorsJack Buffington, Director of Lower ValleyOperations

NKY LinesTom Perdue, EVP & COO

PacerJeff Brashares, EVP & COO

PepsiCoJohn Phillips, VP Customer Supply Chain &Logistics

PetSmartJoe O’Leary, SVP Supply Chain

PfizerPhilip Rose, VP Logistics

Philips Consumer ElectronicsDanny Garst, SVP Global Operations

Polo Ralph LaurenKen Cochran, VP Supply Chain Development

Procter & GambleBilly Boykins, Director, NA Product SupplyOperations

Publix Super Markets, Inc.Richard Schuler, VP of Distribution

RoadwayChuck DeLutis, VP Sales

Ryder Dave Bouchard, SVP International Operations

Schering-PloughRodney Freeman, VP Supply ChainManagement

True ValueSteve Poplawski, SVP Logistics & Supply Chain

Unified GrocersRodney Van Bebber, SVP Distribution

United StationersCody Phipps, President

VF CorporationBoyd Rogers, VP, VF Corp., President SupplyChain

Watson PharmaceuticalJeff Regan, VP Material Management

University Facilitators

Dr. Alex Sommers, Professor, Department of Industrial EngineeringUniversity of New Haven

Dr. Charles Sox, Professor & UniversityChair of Manufacturing Management,University of Alabama

Dr. David Menachof, Professor& SeniorLecturer in Transport Economics, InternationalLogistics & Distribution,City University, London

Dr. Elliot Rabinovich, Ph.D., Associate Professor Supply Chain Management, Arizona State University

Dr. Garland Chow, Associate Professor ofOperations & Logistics,University of British Columbia

Dr. George Haley, Professor, IndustrialMarketing & International BusinessUniversity of New Haven

Dr. Jennifer Blackhurst, Assistant Professor,Supply Chain ManagementIowa State University

Dr. Jezdimir Knezevic, Professor,MIRCE Akademy, UK

Dr. John Taylor, Associate Professor,Marketing, Grand Valley State University

Dr. M. Douglas Voss, Assistant Professor ofMarketing & Supply Chain Management,University of Central Arkansas

Dr. O. Keith Helferich, Professor, Marketing& Logistics, Central Michigan University

Dr. Rhonda Lummus, Associate Professor ofOperations & Supply Chain Management,Iowa State University

Dr. Richard Dawe, Associate Professor ofOperations & Supply Chain Management,Golden Gate University

Dr. Robert Jacobs, Professor of Operations,Indiana State University

Dr. Stephen Derby, Associate Professor ofMechanical Engineering,Rensselaer Polytechnic Institute

Dr. Steven Dunn, Professor, Chair of SupplyChain & Operations ManagementUniversity of Wisconsin at Oshkosh

Dr. Terry Pohlen, Associate Professor ofLogistics & Director, Center for LogisticsEducation and Research, University of NorthTexas

Dr. Thomas DeCarlo, Professor & Ben S.Weil Endowed Chair of Industrial Distribution,University of Alabama at Birmingham

2008 Lab Partners

Lexmark InternationalRick Kallop, RFID Business DevelopmentManager, Lexmark International

SoftwareAGDeb Miller, Director, Manufacturing & RetailStrategy, Industry Solutions

SpherionJim Coker, Director, Brand Management &Business Marketing Services

2008 Chair, SCLA Executive CommitteeJim LaBounty,

2009 Chair, SCLA Executive CommitteeDon Ralph, SVP Logistics, Staples, Inc.

Supply Chain Leaders in Action 2008 Executive Committee

Table of Contents

Welcome Letters ........................................................ 22

General Information .................................................. 24

List of Lab Participants .............................................. 25

Conference Schedules ................................................ 27

Session Abstracts ........................................................ 34

Speaker/Facilitator Biographies .................................. 53

20 21

22 23

WelcomeAttendees

WELCOME to the 2008 Supply Chain Leaders in Action (SCLA) Conference. Thisprogram, an outgrowth of the Distribution Business Management Association

(DBMA) and its affiliated universities, has reached its goal of 45 member companies in threeyears. Our annual conference represents the culmination of all the participants’ efforts toprovide a key learning and networking experience for our profession. The supply chain cor-porate leaders, the university professors, and the DBMA leadership and staff are dedicated tobuilding an environment that allows our associates to work and learn together to improvethe way we all do business. Our corporate members were selected from Fortune 1000 com-panies “by invitation only,” so you are in a program that is being driven by top supply chainperformers across multiple, varied industries.

This year’s curriculum once again reflects major efforts to incorporate and address the keyconcerns (and potential solutions) that we all face in our global supply chains. We are con-fronted today with some of the toughest transportation and logistics hurdles that we haveever seen. Over the course of the 2008 SCLA program you will be exposed to them; weencourage you to be fully engaged in the curriculum and to take every opportunity to net-work with all of the participants and attendees.

Each year, based on feedback from all participants in SCLA, we focus on improving andrefining our course of study to insure it stays relevant for our associates, our companies, andour universities. We want you to think of this as your personal development program andwe count on you to help us to continue to enhance our programs. This is your opportunityto learn, to share, to help others, and to build relationships throughout our profession.

We can only win for our companies and our teams in an environment that recognizes thatwe must address not only our current challenges, but those that are lurking just over thehorizon. It is a tough, but exciting time for all of us. Let’s all take advantage of this outstand-ing program and prepare ourselves for tomorrow.

My very best wishes to all of you for a very successful conference.

Sincerely,

Jim LaBounty2008 Chair, SCLA Executive Committee

Welcome to the third SCLA annual program in Scottsdale Arizona, or as JimKelly, past chairman of UPS said in 1998, when DBMA was here last, “we mustbe doing something right to have so many top business leaders gather in 100

plus degrees in the Desert”. Doing something right is exactly what this program is all about .

The members’ needs are the key to this program, and to help determine those needs theExecutive Committee has major input in creating the annual program. The teaching staff forthis program comes from academia and our member companies; however since so muchsharing occurs in the break out sessions, every attendee also becomes a teacher. We feelstrongly that if the experience is successful for you, it is successful based on your involvement.Make friends, share wisdom, take notes, but most of all be enthusiastic and positive whileattending and growing in your profession.

The SCLA forum has several built in QC features beginning most of all with you. We ask eachexecutive leader from each member company to only send people they value for their ideasand dedication - that’s you. Why do we ask for this type of attendance? The answer lies clear-ly in the format, without great attendees, ideas of value are not easy to obtain in the manydiscussions found in this program. After all, this program is also a “think tank” for you andyour peers.

Each year a chairman is chosen from the Executive Committee, this year Jim LaBounty,recently retired SVP of JCPenney, is the Chairman of the Executive Committee. Last year KevinSmith, SVP Supply Chain & Logistics, CVS Caremark, and one of the founders of this pro-gram, led the Executive Committee through uncharted waters to help develop the 2007 pro-gram. Next year Don Ralph, SVP Staples, has the task to again raise the bar for the SCLA. Thisvery able leadership helps in QC and continues to cause attendees to say “this year was evenbetter than the year before”.

Finally, I am reminded of the old saying “the best is yet to be”; this hopefully will always bethe case with the SCLA. The program is limited to only fifty member companies from thenation’s largest corporations. Each member company has committed to long term involve-ment which encourages teamwork and relationships. Once you attend, you are part of theSCLA family and it is the hope of all of us that you become the best you can be in your cho-sen profession.

You are appreciated,

Jack

Dr. John T ThornChairman DBMAVice Chair Membership Executive Committee

25

2008 LabPartners

Demand Driven Supply NetworkSuper Session

Software AG

11700 Plaza America DriveReston, Virginia 20190Ph: 703-860-5050Email: customerfirst@softwareag.comSoftware AG’s 4,000 global customersachieve measurable business results bymodernizing and automating their IT systemsand rapidly building new systems to meetgrowing business demands. The company’sindustry-leading product portfolio includesbest-in-class solutions for managing data,enabling service oriented architecture, andimproving business processes. By combiningproven technology with industry expertiseand best practices, our customers improveand differentiate their businesses – faster. www.softwareag.com/bc

Sustainability in the Supply ChainSuper Session

Lexmark International

740 West New Circle Rd, 3rd FloorLexington, KY40550Ph: 859-232-1728Lexmark's industry-specific solutions help toreduce costs in your manufacturing, distribu-tion and retail operations, while improvingquality and productivity levels all whileLexmark is uniquely positioned to not onlyprovide technology leadership, but do sowith environmental excellence as well.Environmental sustainability at Lexmarkbegins with our pledge to provide innovative,high quality printing solutions and servicesfor our retail customers in a safe, environ-mentally responsible manner. Working with75% of the top 20 U.S. manufacturers, weare applying our industry knowledge helpingto leave the world a little better off becauseof our collective actions.

Talent Acquisition & DevelopmentSuper Session

Spherion

2050 Spectrum Blvd.Ft. Lauderdale, FL 33309Ph: 954-308-4459Committed to recruiting and staffing excel-lence, Spherion® provides integrated solu-tions to meet the evolving needs and priori-ties of companies and job candidates.Spherion combines its unique expertise andknowledge with a commitment to serviceexcellence to deliver optimal workforce solu-tions that exceed expectations and integrateseamlessly within any organization.

General Information

Conference Hours:Wednesday, June 25, 2008 ..........8:00 a.m. - 5:00 p.m.Thursday, June 26, 2008 ..............6:45 a.m. - 5:00 p.m.Friday, June 27, 2008 ..................6:45 a.m. – 12:30 p.m.

Registration Hours:Tuesday, June 24, 2008................1:00 p.m. – 6:30 p.m.Wednesday, June 25, 2008 ..........7:00 a.m. – 5:00 p.m.Thursday, June 26, 2008 ..............6:15 a.m. – 5:00 p.m.Friday, June 27, 2008 ..................6:30 a.m. – 12:30 p.m.

Conference Meeting Rooms

Keynote sessions will be held in Ballroom D.

Super Sessions: Wednesday & Friday

Extended Supply Chain & Global Complexity Super Session will be held in Ballroom D.Talent Acquisition & Development Super Session will be held in Ballroom E.Driving Profits in the Supply Chain Super Session will be held in Ballroom F.Demand Driven Supply Network Chain Super Session will be held in Ballrooms A, B, C.Sustainability in the Supply Chain Super Session will be held in Ballroom G.

Break-out Sessions: Thursday

Best Practices Track will be held in Ballroom A.Hot Topics Track will be held in Ballroom G.Transportation Issues Track will be held in Ballroom E.Future Trends and Issues Track will be held in Ballroom D.Cutting Edge Research & Benchmarking Track will be held in Ballroom F.

Breakfast with Executive Mentor will be held in the East Foyer & Estella Ballroom (Thursday & Friday ONLY).Lunch will be held in the East Foyer & Estella Ballroom (Wednesday & Thursday ONLY).

Registration DeskThe registration desk is located in the South Foyer.

Tuesday, June 24, 2008 – Pre-Conference Schedule

1:00 pm – 6:30 pm – Registration Opens 2:00 pm – 3:00 pm – Facilitator Meeting (this does not include SCLA members) Room 13 (Willow)6:00 pm – 8:00 pm – Welcome Reception to be held at Windows on the Green

24

Wednesday, Thursday & Friday

Peer Group Roundtables Location:• Executive Group A will be held in Room 13

(Willow Boardroom).• Executive Group B will be held in Room 6

(Jacaranda Boardroom).• Executive Group C will be held in Room 12

(Piñon Boardroom).• Business Process/Development will be held in Room 3

(Cypress). • Customer Supply Chain/Customer Service will be held

in Room 1 (Boojum).• DC will be held in Room 10 (Palo Verde).• Distribution will be held in Ballroom B.• Finance will be held in Ballroom F.

• HR will be held in Room 7 (Joshua).• Inventory will be held in Room 4 (Eucalyptus).• IT will be held in Room 9 (Mesquite).• Logistics will be held in Ballroom C.• Marketing/Sales will be held in Room 2 (Cottonwood).• Operations will be held in Ballroom E.• Planning will be held in Room 11 (Pine).• Purchasing will be held in Room 8 (Juniper).• Special Services/Projects will be held in Room 5

(Ironwood).• Supply Chain will be held in the Estrella Theater.• Transportation will be held in Ballroom G.

Floor Plans

2726

in order to create the optimal balancebetween the environment and theeconomy with the goal of contributingto a sustainable society. Their sus-tainable model is built upon three keystrategies: First to strengthen man-agement by setting objectives andestablishing environmental manage-ment indicators; secondly to strength-en environmental management glob-ally and third to accelerate environ-mental measures.

In addition, NYK has developed aprogram designed to manage environ-ment risk and strike an optimal bal-ance between the environment andthe economy with the goal of con-tributing to a sustainable society. NYKhas been named in 2007 and 2008 tothe Global 100 most sustainable cor-

porations in the world and alsorecently by Forbes Magazine as oneof the world’s most ethical compa-nies. The next generation of employ-ees—and leaders—want to join busi-nesses that value ethics, and not justthe bottom line.

The criteria for the Circle ofExcellence Award were developed byDr. Omar Keith Helferich whileDirector of the Supply ChainManagement Program at MichiganState University, with the assistancefrom DBM and from other leading uni-versities with supply chain manage-ment instruction. The award recog-nizes excellence with demonstratedprograms for improving environmentalquality while simultaneously increas-ing supply chain performance.

Recent recipients of this awardinclude the following companies:

2007 Staples, Inc. for excellence inthe energy efficiency 2006 Circuit City for excellence inconsumer electronics retail industry2005 CVS/pharmacy for excellence inthe pharmacy retail industry2004 Dell Computer for excellence inthe computer industry2003 Kraft Foods for excellence inthe food industry2002 Lockheed Martin for excellencein government logistics2001 Coors Brewing Company forexcellence in the beverage sector2000 Roadway for excellence in thetrucking sector1999 Sears & Roebuck for excellencein the retail sector1998 UPS for Global Supply ChainManagement1997 Mercedes Benz for Excellencein Manufacturing

NYK Logistics–2008 Circle ofExcellence Winner

Profiles of Excellence

NYK Logistics has been chosen asthis year’s recipient of the 2008 Circleof Excellence Award. The award cer-emony will be held on June 26, 2008at the Phoenician in Scottsdale,Arizona before an audience of hun-dreds of senior level supply chainexecutives.

NYK received this honor for theproactive initiatives and long termstrategies in the areas of CSR, corpo-rate social responsibility and environ-mental commitment. The company,founded in 1885, has grown tobecome one of the world’s leadingshipping and logistics providers andadheres to its group values of integri-ty, innovation and intensity.

In the area of sustainability NYKactively manages environmental risk

Jack Thorn, Chairman, (left) and Amy Thorn, Executive Director (right) of the Distribution ManagementAssociation, present the 2004 Circle of Excellence Award to Fred Montoya, Vice-President of Fulfillment, Dell USA, Inc.

East Foyer

Estrella Theater

1

2

3

5

4

611

16

712

17

813

18

914

19

1015

20

21

22

23

25

24

7 12

8 13

9 14

10 15

1116

14

25

36

1 ......................2 ......................3 ......................4 ......................5 ......................6 ......................7 ......................8 ......................9 ......................10 ..................11 ..................12 ..................13 ..................14 ..................15 ..................16 ..................17 ..................18 ..................19 ..................20 ..................21 ..................22 ..................23 ..................24 ..................25 ..................

1 ......................2 ......................3 ......................4 ......................5 ......................6 ......................7 ......................8 ......................9 ......................10 ..................11 ..................12 ..................13 ..................14 ..................15 ..................16 ..................

Wednesday, June 25, 2008 – SCLA Conference: Building Tomorrow’s Supply Chains Today

Super Sessions

Track Chairs

8:00

8:15 – 9:15

9:30

Welcome: Amy Thorn, Executive Director, DBM AssociationOpening Remarks: Mr. Jim LaBounty, 2008 Chair SCLA Executive Committee Ballroom: D

“Partner Collaboration:Building a CommonSupply Chain”, Ken Cochran, Polo Ralph Lauren & Tom Vandenbush,JCPenney

Panel: “Talent Acquisition& Development “ Moderator: Dr. RhondaLummus, Iowa StateUniversity

Panelists: Deb Dean,Spherion, Anne Miller,Kimberly-Clark, TomChristian, CVS/pharmacy,Jim Moore, Ryder

Vignette #1: “AvoidCost Saving TunnelVision: SeekingProductivity &Innovation in the SupplyChain”, Jack Buffington,Molson-Coors

Extended Supply Chain & Global ComplexityBallroom: D

Marie Lacertosa, SVP & Director ofSupply Chain, JCPenney

Dr. George Haley,University of New Haven

Talent Acquisition &Development Ballroom: E

Kevin Smith, SVP ofSupply Chain &Logistics, CVS/pharmacy

Dr. Rhonda Lummus,Iowa State University

Driving Profits/FinancialValue in the SupplyChainBallroom: F

Robert Hurley,Controller, US Logistics,Bayer HealthCare

Dr. David Menachof, City University, London

Dr. Terry Pohlen,University of North Texas

Demand Driven SupplyNetworkBallroom: A

Donald Walker, SVP,Distribution Operations,McKesson

John Coyle, Director, LogisticalAlliances, Kimberly-Clark

Dr. Richard Dawe,Golden Gate University

Dr. Jezdimir Knezevic,MIRCE Akademy, UK

Keynote: “America’s Loss – The World’s Gain: The Broken Back of Americas Infrastructure”: Dan McNicholBest selling author of “The Roads that Built America”, “The Big Dig ” & “A Legacy of Leadership”Ballroom: D

Panel: “Best Practices inSupply Chain Sustainability”Moderators: Dr. Omar KeithHelferich, & Dr. Steven Dunn

Panelists: Mark Buckley,Staples, Inc., John Gagle,Lexmark & Glenn Lancaster,Chiquita

Sustainability in the SupplyChainBallroom: C

Donald Ralph, SVP ofLogistics, Staples, Inc.

Dr. O. Keith Helferich,Central Michigan University

Dr. Steven Dunn, University ofWisconsin at Oshkosh

Sub-Session: “Visibility”, Clif Turner, Ryder, & ChrisCampbell, Philips ConsumerLifestyles, Room: A

Sub-Session: “Integration”,Casey Chung, BlockbusterRoom: B

Sub-Session: “Metrics”, ChrisMcCurdy & George Basil,PetSmart, Room: C(choose one)

Welcome & OpeningRemarks, MarieLacertosa, JCPenney

Overview of theExtended Supply Chain,Dr. George Haley,University of New Haven

Welcome & OpeningRemarks, Kevin Smith,CVS/pharmacy

Overview of the TalentLife Cycle, Dr. RhondaLummus, Iowa StateUniversity

Welcome & OpeningRemarks, Dr. DavidMenachof & Dr. TerryPohlen

Overview of DrivingProfits/ Financial Valuein Your Supply ChainBob Hurley, BayerHealthCare

Welcome & OpeningRemarks, Donald Ralph,Staples, Inc.

Overview of Sustainability inthe Supply Chain: “Value,Social Responsibility &Environmental Stewardship”Dr. Omar Keith Helferich,Central Michigan University &Dr. Steven Dunn, University of Wisconsin at Oshkosh

Welcome & Opening Remarks,Donald Walker, McKesson

Overview of DDSN & introduction of 5 definedobstacles/ issues:

• Visibility• Integration• Metric• Collaboration• Organizational Structure

John Coyle, Kimberly-Clark

Case Study: “Duty FreeStores”, John Rutherford,DFS & Jeff Brashares,Pacer

Introduction to the CaseStudyDr. Rhonda Lummus, Iowa State University

Vignette #2 (part 1): “Fixed or Variable Cost:A Strategic View forSupply Chain”, Bob Hurley, BayerHealthCare

Issues Introductions:1. Measurement of Sustainable

Performance 2. Design for Supply Chain

Sustainability: Product3. Re-engineering SC Sustainability:

Process and Transportation4. SC Sustainability Facility Operations5. Corporate Social Responsibility (CSR)6. SC Sustainability Globalization

Dr. Omar Keith Helferich &Dr. Steven Dunn

Panel: “Collaboration”, Moderator: John Coyle,Kimberly-Clark

Panelists: Gary Wilson,Kimberly-Clark, Jim Pleiman,Schering-Plough, CVS/pharma-cy & Tom Perdue, NYK LinesRoom: A

12:00 – 1:00

1:30

3:45 – 5:00

Lunch with your company senior executive mentor (East Foyer & Estrella Ballroom)

“Off Shoring: Blessings& Perils”,Dr. George Haley,University of New Haven

Discussion of PresentedScenario & Solutions (in groups)

Case Study DebriefDr. Rhonda Lummus, IowaState University

Panel: “Winning theCompetition forResources - Sr.ManagementPerspectives on FundingSupply Chain initiatives”

Moderators: Dr. DavidMenachof, CityUniversity, London & Dr.Terry Pohlen, Universityof North Texas

Panelists: Terry Gilbert,Roadway, Jim Pleiman,Schering-Plough & BobHurley, Bayer HealthCare

Sustainability in the SupplyChain Issues Debrief

Sub-Session Debrief Panel

Moderator: Dr. JezdimirKnezevic, MIRCE Akademy, UK

Panelists: Chris McCurdy &George Basil, PetSmart, ClifTurner, Ryder, Chris Campbell,Philips Consumer Lifestyles,Casey Chung, Blockbuster

Room: A

Panel: “The LatestNews on Port CleanTruck Plans”

Moderator: MarieLacertosa, JCPenney

Panelists: Kent Prokop,Pacer & Rick Schart,JCPenney

Analysis of Case Study(in groups)

Vignette #2 (part 2): “Fixed or Variable Cost:A Strategic View forSupply Chain”, BobHurley, Bayer HealthCare

Issues Discussion & Analysiscontinued (in groups)

Sub-Session: “Visibility”,Clif Turner, Ryder, & ChrisCampbell, Philips ConsumerLifestyles, Room: A

Sub-Session: “Integration”,Casey Chung, BlockbusterRoom: B

Sub-Session: “Metrics”, ChrisMcCurdy & George Basil,PetSmart,Room: C(choose one)

Wrap-up & LearningKeys,Marie Lacertosa,JCPenney

Wrap-up & LearningKeys, Kevin Smith, CVS/pharmacy

Wrap-up & LearningKeys,Bob Hurley, BayerHealthCare

Wrap-up & Learning Keys,Dr. Omar Keith Helferich & Dr.Steven Dunn

Wrap-up & Learning Keys,John Coyle, Kimberly-Clark

Peer Group Roundtables with Academic Facilitator: Topic to be Peer Group Specific (Refer to page ? for listing of locations)

2928

30 31

Thursday, June 26, 2008 – SCLA Conference

TrackTheme

Track Chairs

6:45 -7:45

8:00 – 9:00

9:15 – 10:15

9:30

Breakfast meeting with your company senior executive mentor (East Foyer & Estrella Ballroom)

“Improving SupplyChain Performancethrough ScorecardCollaboration”,Carol Carrieri, HenrySchein, Inc.,

Panel: “Managing aSupply Chain through aRecession”

Moderator: Dr. AlexSommers, University ofNew Haven

Panelists: Steve Poplawski,True Value, Jim LaBounty,2008 Chair, SCLAExecutive Committee &Jim Craig, NYK

“ImprovingTransportationEffectiveness:Breakthrough Thinkingin Carrier AssetManagement at theHershey Company”,Melanie Keller, TheHershey Company

Best Practices

Dr. Jezdimir Knezevic,MIRCE Akademy, UK

Ballroom: A

Hot Topics

Dr. Alex Sommers,University of NewHaven

Ballroom: G

Transportation Issues

Dr. John Taylor, GrandValley State University

Ballroom: E

Future Trends & Issues

Dr. Robert Jacobs, IndianaUniversity

Ballroom: D

Keynote: “The (Supply) Chain Reaction” - Amy Oberg, Futurist, Kimberly-Clark

Research in Brief: “Automation Implementation& Custom Designs & MaterialHandling”, Dr. Steve Derby, RPI

“Supply Chain 2010”, Dr. Rhonda Lummus, Iowa State University

“Global Supply Chains: Leanvs. Quality Control”, Dr. AlexSommers, University of NewHaven

“International Freight SecurityImpact on Supply ChainEffectiveness”, Dr. GarlandChow, University of BritishColumbia

Cutting Edge Research &Benchmarking

Dr. Garland Chow, Universityof British Columbia

Dr. Tom DeCarlo, University ofAlabama at Birmingham

Ballroom: F

Panel: “Globalization: ThePros & Cons of Off-shoring”

Moderator: Dr. Robert Jacobs,Indiana University

Panelists: Jeff Regan, WatsonPharmaceutical, Katy Stone,DuPont & Mike McBreen,Furniture Brands International

Panel: “OrganizationEvolution: LeadingChange”

Moderator: TomGoosmann, Roadway

Panelists: Scott Spencer,Roadway & JackBuffington, Molson-Coors

Enablement Workshopon Virtual Teams”,Gerry Shaw, DuPont

Panel: “Challenges inTransportation: How toIncrease Efficiency &Combat Rising Costs “

Moderator: Dr. JohnTaylor, Grand Valley StateUniversity

Panelists: Jeff Brashares,Pacer Intl., TomShepherd, Chiquita,Michelle Livingstone,Home Depot & LanceWhitacre, Andersen Corp.

Overview and openingremarks, Dr. Garland Chow,University of British Columbia

“Trend Effects & ManagerialDecision Making Survey”Results, Dr. Tom DeCarlo,University of Alabama

Panel: “The Future of RFID:Does it Work AcrossIndustry?”

Moderator: Jim Moore, Ryder

Panelists: Kevin Bott, Ryder,Rick Kallop, Lexmark & PhilTherrien, Kimberly-Clark

11:45 – 12450

1:00 -1:45

2:00 -2:45

3:00 -4:00

4:15 – 5:00

6:30 – 11:00

Open seating networking luncheon (East Foyer)

“Easy: How to MakeThings Easier forCustomers”,Sue Pellechio, Staples, Inc.

Panel: “End to End Lean”

Moderator: Dr. AlexSommers

Panelists: Billy Boykins,Procter & Gamble &David Proctor, NYK

“Fuel: The Elephant inthe Room”,Paul Orrico, Ryder

“Global Supply Chain RiskManagement”, Dr. O. Keith Helferich, Central Michigan University &Dr. M. Douglas Voss, University of Central Arkansas

“Carbon Footprint Analysis”,Jeff Ball, Philips ConsumerLifestyles & Tim Brown,Chainalytics

“Demand Forecasting: Its Ties to S&OP”,Jerry Smith, Baxter Healthcare

“DisruptiveDemographics”,Kevin Smith, CVS/pharmacy

“Inland Infrastructure –Ensuring Our Future”,George Duggan, BNSF

“Supply Chain Risk &Disruptions”, Dr. Jennifer Blackhurst, Iowa State University

“Supply Chain InitiativePrioritization”,Dan Marous, Staples, Inc.

Keynote: Circle of Excellence Winner (Ballroom D)

Circle of Excellence Award Dinner (Ballroom D)

Peer Group Roundtables with Academic Facilitator: Topic to be Peer Group Specific (Refer to page ? for listing of locations)

Friday, June 27, 2008 – SCLA Conference

12:00

“Off Shoring: Blessings& Perils”, Dr. GeorgeHaley, University of NewHaven

Discussion of PresentedScenario & Solutions (ingroups)

Case Study DebriefDr. Rhonda Lummus, IowaState University

Discussion: “TheChallenges of Making itReal” – group discussionled by: Bob Hurley, BayerHealthCare, Dr. DavidMenachof & Dr. TerryPohlen

Sustainability in the SupplyChain Issues Debrief

Sub-Session Debrief Panel

Moderator: Dr. JezdimirKnezevic, MIRCE Akademy, UK

Panelists: Chris McCurdy &George Basil, PetSmart, VanDuong, The Hershey Company,James Crump & Deb Miller,SoftwareAGRoom: A

Panel: “The LatestNews on Port CleanTruck Plans”

Moderator: MarieLacertosa, JCPenney

Panelists: Kent Prokop,Pacer & Rick Schart,JCPenney

Analysis of Case Study(in groups)

Application of “Box ofLightning” Case Study

Issues Discussion & Analysiscontinued (in groups)

Sub-Session: “Visibility”,The Hershey Company, Room: A

Sub-Session: “Integration”,SoftwareAGRoom: B

Sub-Session: “Metrics”,PetSmart, Room: C(choose one)

Wrap-up & LearningKeys,Marie Lacertosa,JCPenney

Wrap-up & LearningKeys, Kevin Smith, CVS/pharmacy

Wrap-up & LearningKeys,Dr. David Menachof &Dr. Terry Pohlen

Wrap-up & Learning Keys,Dr. Omar Keith Helferich & Dr.Steven Dunn

Wrap-up & Learning Keys,John Coyle, Kimberly-Clark

Peer Group Roundtables with Academic Facilitator: Topic to be Peer Group Specific (Refer to page ? for listing of locations)

Super Sessions

Track Chairs

7:00 -8:00

8:15

Breakfast with peer group (East Foyer & Estella Ballroom - Refer to page ? for listing of locations)

Case Study: “Duty FreeStores”, John Rutherford, DFS &Jeff Brashares, Pacer

Panel: “Talent Acquisition& Development “

Moderator: Dr. RhondaLummus, Iowa StateUniversity

Panelists: Deb Dean,Spherion, Anne Miller,Kimberly-Clark, TomChristian, CVS/pharmacy,Jim Moore, Ryder

Discussion in brief on 3issues/ controversies

Introduction of “Box ofLightning” Case Study

Extended Supply Chain & Global ComplexityBallroom: D

Marie Lacertosa, SVP & Director ofSupply Chain, JCPenney

Dr. George Haley,University of New Haven

Talent Acquisition &Development Ballroom: E

Kevin Smith, SVP ofSupply Chain &Logistics, CVS/pharmacy

Dr. Rhonda Lummus,Iowa State University

Driving Profits/FinancialValue in the SupplyChainBallroom: F

Robert Hurley,Controller, US Logistics,Bayer HealthCare

Dr. David Menachof, City University, London

Dr. Terry Pohlen,University of North Texas

Demand Driven SupplyNetworkBallroom: A

Donald Walker, SVP,Distribution Operations,McKesson

John Coyle, Director, LogisticalAlliances, Kimberly-Clark

Dr. Richard Dawe,Golden Gate University

Dr. Jezdimir Knezevic,MIRCE Akademy, UK

Panel: “Best Practices inSupply Chain Sustainability”

Moderators: Dr. Omar KeithHelferich, & Dr. Steven Dunn

Panelists: Mark Buckley,Staples, Inc., John Gagle,Lexmark & Glenn Lancaster,Chiquita

Sustainability in the SupplyChainBallroom: C

Donald Ralph, SVP ofLogistics, Staples, Inc.

Dr. O. Keith Helferich,Central Michigan University

Dr. Steven Dunn, University ofWisconsin at Oshkosh

Sub-Session: “Visibility”, Van Duong, The HersheyCompany, Room: A

Sub-Session: “Integration”,James Crump & Deb Miller,SoftwareAG, Room: B

Sub-Session: “Metrics”, ChrisMcCurdy & George Basil,PetSmart, Room: C(choose one)

Welcome & OpeningRemarks, MarieLacertosa, JCPenney

Overview of theExtended Supply Chain,Dr. George Haley,University of New Haven

Welcome & OpeningRemarks, Kevin Smith,CVS/pharmacy

Overview of the TalentLife Cycle, Dr. RhondaLummus, Iowa StateUniversity

Welcome & OpeningRemarks, Bob Hurley,Bayer HealthCare

Overview of “TheEssentials of SupplyChain Finance”Dr. David Menachof &Dr. Terry Pohlen

Welcome & OpeningRemarks, Donald Ralph,Staples, Inc.

Overview of Sustainability inthe Supply Chain: “Value,Social Responsibility &Environmental Stewardship”Dr. Omar Keith Helferich,Central Michigan University &Dr. Steven Dunn, University of Wisconsin at Oshkosh

Welcome & Opening Remarks,Donald Walker, McKesson

Overview of DDSN & introduction of 5 definedobstacles/ issues:

• Visibility• Integration• Metric• Collaboration• Organizational Structure

John Coyle, Kimberly-Clark

Case Study: “PartnerCollaboration: Buildinga Common SupplyChain”, Ken Cochran,Polo Ralph Lauren & TomVandenbush, JCPenney

Introduction to the CaseStudyDr. Rhonda Lummus, Iowa State University

Presentation of “Box ofLightning” Case Study

Issues Introductions:1. Measurement of Sustainable

Performance 2. Design for Supply Chain

Sustainability: Product3. Re-engineering SC Sustainability:

Process and Transportation4. SC Sustainability Facility Operations5. Corporate Social Responsibility (CSR)6. SC Sustainability Globalization

Dr. Omar Keith Helferich &Dr. Steven Dunn

Panel: “Collaboration”, Moderator: John Coyle,Kimberly-ClarkPanelists: Gary Wilson,Kimberly-Clark, Jim Pleiman,Schering-Plough, CVS/pharma-cy & Tom Perdue, NYK LinesRoom: A

3332

Day OneWednesday, June 25, 2008Keynote8:15 am – 9:15 am, Wednesday, June 25, 2008Ballroom DAmerica’s Loss – The World’s Gain:The Broken Back of AmericasInfrastructure

Keynote Speaker: Dan McNichol, Author

The University of Pennsylvania says Dan McNicholis a “top journalist creating a new framework for understand-ing... compelling new scholarship...on how interstate cooper-ation became essential.”

Abstract:Dan McNichol, a best selling author and award winning jour-nalist, believes backward looking people are often forwardthinking individuals. “By default historians are futurists. As his-tory repeats itself who better to tell us about possible, evenpredictable, reoccurring patterns than someone who has stud-ied previous trends?” More to the point, McNichol claims wehave faced today’s challenges before.

When it comes to transportation and supply chain logistics,the Infrastructure in the United States is over used, underfunded and tragically it’s deteriorating. Absent a visionary anda vision, leadership at the federal level is missing. Today thereare funding shortfalls, labor shortages, increased materialcosts, heavier regulations and the most educated public ever.Coupled with being a nation at war, the environment forbuilding anew our supply chain is a hostile one. To be sure,global warnings are sounding as more pressure is put uponour economy to compete with oversea markets.

The Dwight D. Eisenhower National System of Interstate &Defensive Highways was built at a time this nation faced simi-lar dilemmas. Yet, the world’s largest engineering and con-struction projects took root. Today, it is a supply chain that theworld envies. It’s an example of boldness, big thinking - it isgreatness we need to once again achieve.

Abstract:The Super Session on Extended Supply Chains & GlobalComplexity will focus on the supply chain and logistical issuesthat are occurring in today’s business environment wherethere is increased emphasis on outsourcing everything fromproduct components to entire products. Companies areunder increasing pressure to shed assets of all kinds and espe-cially to shed production assets. The goal of this strategy is tomaximize returns to the shareholder, and it has largely beenachieved – in 2000 the average book-to-market ratio was sixtimes what it was in 1981.

The primary problem with the strategy is that the perils of thestrategy are not adequately addressed. Among the basicassumptions of net present value theory is the assumptionthat all decisions made can be reversed without suffering apenalty, hence financial analyses do not make the effort toadequately address the potential for losses due to unpredict-ed, yet often predictable problems. Research has shown that:

1. Within two years 20-25% of all supply relationships will fail

2. Within 5 years fifty percent of all supply relationships will fail

3. Seventy percent of buying companies are unhappy withtheir suppliers citing• Suppliers not understanding their needs• Suppliers providing poor service• Supply costs being higher than predicted

In addition, there are the perils that are associated with thevery philosophy of outsourcing entire functional areas of yourbusiness. Some are so tremendous that they should beabsolute deal killers. An increasingly well known peril of thiskind is the increased risk of losing a technology that representsyour company’s competitive advantage in the marketplace.One peril of this kind that is not yet focused on is capabilityloss – the loss of a skill that may not be a company’s competi-tive advantage, but which is a requirement to compete effec-tively over the long term, such as production skills. Thoughthe new mantra calls for the shedding of production assets infavor of focusing on the less asset-intensive functions likeproduct design, the best and most successful product designefforts are those that work incorporating feedback and knowl-edge from production.

Finally there are the outsourcing perils associated with thenew sources for outsourced products and services. Some,such as communication difficulties due to cultural differencesbetween the supplier’s home country personnel and the for-eign markets they are being called on to serve. Howeverother perils are not only less obvious, but completely new.Some of these are perils such as supply chain fragmentation,supply chain substitution and here-to-fore unknown shortcuts.

Learning Objectives:Learning objectives for this super session are for participants to familiarize themselves with the complexities of designingand building extended supply chains in the new emergingmarkets.

Learning Outcomes:• 50% increase in recognition of complicating variables• 50% increase in identifying potential cost increasing

variables• Recognizing the difference between high risk variables

and High uncertainty variables

9:30 am – 3:30 pm, Wednesday8:15 am – 12:30 pm, FridayBallroom ETalent Acquisition & DevelopmentSuper Session

Track Chairs:

Kevin Smith, SVP of Supply Chain &Logistics, CVS/pharmacy

Dr. Rhonda Lummus Ph.D., Assoc.Professor of Operations & Supply ChainManagement, Iowa State University

Panelists: Deb Dean, VP of Strategic Accounts,Spherion

Anne Miller, Supply Chain Talent Manager,Kimberly-Clark

Tom Christian, Director of HumanResources- Supply Chain & Logistics,CVS/pharmacy

Jim Moore, Vice President, Ryder SupplyChain Solutions

Session Abstracts

Super Sessions9:30 am – 3:30 pm, Wednesday8:15 am – 12:30 pm, FridayBallroom DExtended Supply Chain & GlobalComplexity Super Session

Track Chairs:

Marie Lacertosa, SVP & Director ofSupply Chain, JCPenney

Dr. George Haley, Ph.D., Professor ofMarketing, University of New Haven

Speakers:

John Rutherford, VP, GlobalTransportation, DFS

Jeff Brashares, EVP & COO, Pacer

Ken Cochran, VP of Supply ChainDevelopment, Polo Ralph Lauren

Tom Vandenbush, VP & Director of SupplyChain Support, JCPenney

Richard A. (Rick) SchartVice President, Director ofTransportation, JCPenney

Kent Prokop, President, Warehousing &Distribution Group, Pacer

3534

Abstract – Wednesday – June 25, 2008 -Industry PracticeThis super session will investigate financial methods applicableto logistics and supply chain managerial decision making. Theobjective is to provide the participant with easy to use tech-niques that can be readily used following the conclusion ofthe Super Session.

Learning Objectives:• Understanding the role of Finance in Supply Chain

Management decision making• Identify what the CFO is really looking for in your supply

chain• Provide useful techniques that can be translated for use in

the participants’ company

Learning Outcomes:• Be able to show the impact of supply chain initiatives on

the bottom line• Calculate the Cash to Cash Cycle• Identify Activity Based Costing Drivers

Abstract - Friday – June 27, 2008 -Application

1. Application of Supply Chain Finance (Introduced by Dr. David Menachof & Dr. Terry Pohlen)

• A hands-on session designed to compliment Wednesday’s presentations by applying those techniques

• Moving from Metrics to Money• Strategic Profit Model - Impact on the bottom line• Net Present Value• Inventory Velocity• Cash to Cash Cycle• Activity Based Costing/Activity Based Management • Existing research, applications, and examples• Experience of participants

2. Case Study (Introduced by Dr. David Menachof & Dr. Terry Pohlen)

• Explanation of tasks & discussion • Activity Based Costing/Activity Based Management • Formation of teams• Teams will have time to discuss and prepare:

– Situation Analysis– Outcomes as a result of the ABC analysis– Lessons learned from the change to ABC– Information sharing & technology requirements– Defining performance measures and cost drivers– Own firm implementation issues

Learning Objectives:• Understanding the role of Finance in Supply Chain

Management decision making• Identify what the CFO is really looking for in your supply

chain• Provide useful techniques that can be translated for use in

the participants’ company

Learning Outcomes:• Be able to show the impact of supply chain initiatives on

the bottom line• Calculate the Cash to Cash Cycle• Identify Activity Based Costing Drivers

9:30 am – 3:30 pm,Wednesday8:15 am – 12:30 pm, FridayBallroom A Demand Driven SupplyNetwork Super SessionTrack Chairs:

Donald Walker, SVP, DistributionOperations, McKesson

John Coyle, Director, Logistical Alliances,Kimberly-Clark

Dr. Richard Dawe, Ph.D., Assoc. Professor of OperationManagement, Golden Gate University

Dr. Jezdimir Knezevic, Ph.D., Professor,MIRCE Akademy, UK

Sub-Session Presenters: Visibility:

Clif Turner, Group Logistics Manager,Ryder Supply Chain Solutions

Chris Campbell, Philips Consumer Lifestyles

Van Duong, Mgr., Customer Planning, The HersheyCompany

Session Abstracts

Abstract:Today’s supply chains are complex networks that stretcharound the globe. Companies are concerned with ensuringthat their supply chain employees will be able to supportthese global enterprises. For supply chain business owners,this means they need comprehensive programs targeting therecruiting, training and development of supply chain profes-sionals. The programs must be focused on developing andretaining top-notch supply chain employees. Successful com-panies will have an employee talent development and acquisi-tion plan that ensures they are prepared for the global, cross-functional, cross-company way of doing business.

This session will focus on discussing the premise that there is a“Talent Life Cycle”. The main elements of the Life Cycle are:Finding and Recruiting, Training, Developing and Retainingand Planning for Succession. Topics to be discussed include:

Finding and Recruiting- Establishing expectations – What do people want? What

can be provided?- Employee Engagement – What does it mean to be the

“employer of choice”?- Hiring practices – Sourcing internal vs. external- Contractor vs. Employee

Training- Effective training programs- Skills and competency development- Toolkit development- Mentoring programs- Diversity, Affinity Groups , Inclusion, etc- How to deal with running a “feeder” organization (i.e.

company entry point)

Developing and Retaining- Career Planning- Performance / Accomplishment Reviews- “Culture” and communication (community service,

company spirit of pride, etc.)- Mobility of employees

Planning for Succession- Succession Planning- Planned phase-out (i.e. retirement or elimination)- Un-planned phase-out- Changing mindsets- Business continuity and sustainability

Learning Objectives:• Explore opportunities to build effective organizations • Identify best practices from within the member companies• Identify cutting edge, or emerging practices.

Learning Outcomes:• Identify current problems and trends in hiring and

training supply chain professionals• Provide participants with insight into how other member

companies are executing successfully in the development and acquisition of talent

• Develop useful tools that can be readily adapted to the member companies’ respective environments

• Strengthen supply chain managers problem-solving skills through real world case studies

9:30 am – 3:30 pm, Wednesday –Industry Best Practices8:15 am – 12:30 pm, Friday –ApplicationBallroom FDriving Profits/Financial Value inthe Supply Chain Super Session

Track Chairs & Vignette Presenters

Bob Hurley, Controller US Logistics, BayerHealthCare

Dr. David Menachof, Ph.D., Senior Lecturerin International Logistics & Distribution,City University, London

Dr. Terry Pohlen, Ph.D., Associate Professorof Logistics, University of North Texas

Vignette Presenter: Jack Buffington, Director of Lower ValleyOperations, Molson-Coors

Panelists: Terry Gilbert, President, Roadway

Jim Pleiman, VP of Consumer HealthcareLogistics, Schering-Plough

3736

Panelists: Mark Buckley, Vice President ofEnvironmental Affairs, Staples, Inc.

John Gagle, Manager of SustainablePractices – EH&S, Lexmark International,Inc.

Glenn Lancaster, Central Area Director ofProduct Supply, Chiquita Brands NA

Abstract:In today’s global marketplace, organizations are under increas-ing pressure to comply with a multitude of different perfor-mance guidelines and standards: quality management, prod-uct safety, occupational health, wellness and safety,import/export regulations, labor laws, environmental manage-ment and protection, and security. The pressure impactsthose who must comply, and those who have a stake in thecompliance of others, most notably the supply chain partners.The Sustainable Supply Chain concept provides a foundationto recognize three critical performance pillars- Value, SocialResponsibility, and Environmental Stewardship to providewhat is recently referred to as the Triple Bottom Line.

A number of organizations historically have been leaders inselected areas of the Triple Bottom Line model. However,recent events have heightened the level of urgency felt bymost firms in terms of addressing these issues. Product qualitydisruptions, environmental incidents, energy issues, consumerawareness and community involvement, and political instabili-ties worldwide have made the triple bottom line a requiredstrategic imperative. The importance of the three pillars is sup-ported through recently completed security and brand protec-tion research, review of catastrophic disruption events plusrecent product recalls. These results plus the ever presentSarbanes-Oxley accountability highlight the need for continu-ing to advance proactive supply chain solutions.

There are two key dimensions of effective supply chain sus-tainability leadership. First, any initiative must actually result inimprovements. Investors, consumers and the general publictend to view corporate declarations of environmental virtuewith considerable skepticism. Announcements that have littlesubstance behind them are quickly exposed as ‘green wash-ing', and any potential benefit that might result will be over-shadowed by questions about motive or sincerity. In thisarena, a corporation must demonstrate a true commitment tosustainability in order to reap benefits in terms of publicacceptance. In effect, you have to walk the talk.

Secondly, the payoff for leadership in the sustainability areaeventually must come back to the corporation in terms oflong term value or financial rewards. These benefits can bedirect cost reductions resulting from improved energy efficien-cies or waste minimization, or be available in the future interms of strategic competitive advantage. Some benefits mayseem intangible, such as goodwill and community respect.But ultimately responsible sustainable supply chain strategymust also have a positive impact on the bottom line.Government regulation and consumer market preferenceshelp create the incentive for companies to ‘go green', but ulti-mately it boils down to profit. This too, however, involves atitanic change from short term profit taking to a long termviewpoint.

This Super Session overview presentation provides aSustainable Supply Chain model starting with definitions ofsustainability and the use of the three pillars that serve as thefoundation for The Triple Bottom Line concept. The overviewthen attempts to answer-“Why Strive to Achieve a SustainableSupply Chain and what is the status of current sustainabilityinitiatives?” A business model is provided to illustrate thebuilding of a sustainable supply chain through the foundationof metrics and a strategic approach to the three pillars ofValue, Social Responsibility and Environmental Stewardshipexcellence. In summary, the overview session will provide aknowledge base for understanding how a firm can movetowards Triple Bottom Line excellence, and will reference suc-cessful applications by introducing a subset of practical toolsthat are available to achieve this strategic shift.

The Super Session Industry Issues Panel will address questionsfrom the participants plus a few pre-selected questionsthought to be of general interest to the overall participantaudience. The facilitator and panelists will provide a briefsummary of key points at the conclusion of the panel session.The Super Session will utilize several pre selected sustainabilityissues that provide examples of practical application across thescope of the sustainable supply chain and will stimulate dis-cussion. Each team will be assigned one pre selected issueand will be given a template to organize their discussion aris-ing from the issue. The teams will be asked to develop anapproach to the issue, generate recommendations for resolu-tion, and finally to present their findings to the overall groupduring the Debrief session. Ideally, participants will leave witha better understanding of how to surface sustainable initia-tives, conduct internal and external research to support theseinitiatives, and what potential tools may assist them as theytarget an improved Triple Bottom Line in their own firm.

Learning Objectives: Participants will gain understanding of the following:

• Definition of supply chain sustainability through three business performance pillars; Value, Social Responsibility and Environmental Stewardship

39

Session Abstracts

38

Integration: Casey Chung, Director of Production Planning,Blockbuster,

James Crump, Senior Director of StrategicBusiness Solutions, SoftwareAG,

Deb Miller, Director of Manufacturing &Retail Strategy, SoftwareAG

Metrics: Chris McCurdy, VP of Transportation,PetsMart,

George Basil, Director of Supply ChainOperations Improvements, PetsMart

Panelists: Jim Pleiman, VP of Consumer HealthcareLogistics, Schering-Plough

Tom Perdue, EVP & COO NLA, NYK

Gary Wilson, Customer Service TeamLeader, Kimberly-ClarkCVS/pharmacy

Abstract:In its design the Demand Driven Supply Network (DDSN)integrates technology, people and processes within an organi-zation and its external supply chain partners to react to thepull of the customer order versus the push of a forecast. Inapplication of DDSN there are barriers and challenges facedby supply chain partners which impact implementation. Thissession will examine those common barriers and solutionsused to overcome them.

Learning Objectives:1.What are the building blocks that create a DDSN

capability2.What are the key barriers to DDSN3.Succeeding in a demand sensing world4.Standard Operating Procedures (SOP) integration

Super Session topics include:1.Supply Chain visibility 2.Organizational Structure3.Collaboration among supply chain partners4. Integration of business and technology systems5.Measurement systems

Learning Outcomes:Working with industry experts and real world case studies/sce-narios participants will learn tips on how to navigate throughvarious obstacles to a successful demand driven supply chainand achieve goals such as;

• Reduce inventory • Gain better perfect order performance • Shorter cash-to-cash cycle time • Get higher revenue • Achieve better profit margins

9:30 am – 3:30 pm,Wednesday8:15 am – 12:30 pm, FridayBallroom CSustainability in the SupplyChain Super SessionTrack Chairs:

Donald Ralph, SVP of Logistics, Staples,Inc.

Dr. Omar Keith Helferich, Ph.D., Professor,Marketing & Logistics, Central MichiganUniversity

Dr. Steven Dunn, Ph.D., Professor Chair ofSupply Chain & Operations Management,University of Wisconsin at Oshkosh

Breakout Sessions9:15 am – 10: 15 am,ThursdayBest Practices Track –Ballroom APanel: Organization Evolution: LeadingChange

Moderator: Tom Goosmann, VP of Field Sales, Roadway

Panelists:Scott Spencer, VP, SW Division, Roadway

Jack Buffington, Director of Lower ValleyOperations, Molson-Coors

Abstract:This session will provide you with change initiatives and strate-gic building blocks to your supply chain that have been affect-ed by mergers and acquisitions. This session will also talkabout creating change to compete in our current economy aswell as being a change leader in your industry. How to be thechange leader at your own company, how do you bring dif-ferent supply chains together, how will you lead through thischange and how to maintain change will also be integral dis-cussion topics. Come listen to how Roadway and Molson-Coors have been change leaders in their industries and beready for some dynamic sharing of best practices for this mostimportant best practice session.

Learning Objectives:• What are the essential strategic building blocks of what amerged supply chain should look like in today’s competitivemarket environment?

• When your company is in a merger process, what are thesteps to take to bring two different supply chains into onestrategic picture?

• Managing change initiatives that will go the distance• Creating the team that will guide change• Enabling change to stick

Learning Outcomes:• Learn how to take the best of both supply chains, and

industry best practices to build something better than before.

• Learn how to be an effective leader during this period of change.

9:15 am – 10:15 am, ThursdayHot Topics Track – Ballroom GEnablement Workshop onVirtual TeamsSpeaker:

Gerry Shaw, HR Manager, DuPont Sourcing & Logistics

Abstract:Teamwork is critical to the success of our organizations. Withthe complexities of our work and our organizational struc-tures, virtual teams allow us to bring the diversity of eachteam member into the room through technology-mediatedcommunications. However, virtual teams do come with theirown set of challenges due to the lack of face-to-face interac-tions. Structure is important to the success of a virtual team.

Learning Objectives:• Provide new ideas & tools to enhance the ability to

influence the success of virtual teams• Explore ways to keep a virtual team focused• Identify individual actions that contribute to team

performance

Learning Outcomes:• Understand the importance each role plays to the success

of a virtual team• Recognize potential barriers for success• Awareness of tools and techniques to improve the

efficiency & effectiveness of virtual team interactions

41

Session Abstracts

• Definitions of the potential applications within each of thethree performance pillars

• A relatively new business concept that links a metrics foundation with the pillars to enable combined performance referred to as “The Triple Bottom Line”

• Suggested performance categories and metrics that serve as the foundation for sustainable supply chain

• A subset of tools that is available to provide ongoing improvement for the pillars of Value, Social Responsibility and Environmental Stewardship.

• Application of selected tools through participation in issuework sessions with a focus on sustainable supply chain

• References of professional work completed and examples in process that highlight how to implement successful sustainable supply chain strategies

• Information on the status and tradeoffs of reported and ongoing industry examples of sustainable supply chain initiatives

Learning Outcomes:Participants will receive information that should assist in thefollowing:

• How to develop a basis of knowledge to encourage further investigation of a sustainable supply chain within their respective organizations

• How to contribute to an ongoing supply chain sustainableinitiative

• How to initiate discussions and planning to start or expand ongoing initiatives in any one of the three pillars to a full Triple Bottom Line concept

• How to identify and prioritize applications in the twomore recent pillars of a sustainable supply chain effort-environmental stewardship and social responsibility

• How to identify the information sources and tools avail-able for ongoing improvement to achieve and maintain asustainable supply chain

• How to take a triple bottom line supply chain concept tothe core strategy of the firm

Sustainability in the Supply Chain: The Value of a Solution Toolkit Focus • Overview of Sustainability in the Supply Chain, Track

Chairs: Dr. Omar Keith Helferich, Central Michigan University and Dr. Steven Dunn, University of Wisconsin atOshkosh

• Industry Issues Panel: Best Practices in Supply Chain Sustainability

• Issues Introduction (Lab Session included) • Issues Discussion & Analysis (Lab Session included) • Sustainability in the Supply Chain Issues Discussion &

Debrief

Day Two Thursday, June 26, 2008Keynote8:00 am – 9:00 am, ThursdayBallroom DThe (Supply) Chain ReactionKeynote Speaker:

Amy Oberg, Futurist, Kimberly-Clark

Abstract:Emerging trends and issues, shifts and changes in the macro-environment will shape the future of our country, communi-ties and businesses. Understanding those trends and issues,shifts and changes before they mainstream provides leaderswith a distinct advantage: increased lead time for decisionmaking.

In The (Supply) Chain Reaction, Amy Oberg, Futurist forKimberly Clark Corporation, will provide information andinsights on business related trends, issues, shifts and changesthat are likely to emerge and/or mainstream over the next tenyears; and discuss their potential impacts and implications onthe supply chain. Using basic “systems thinking” theory andmodeling, she will help participants uncover The (Supply)Chain Reaction to these trends and changes.

Discussion on trends across social, economic, environmental,political and technological domains will be included.

Learning Objectives:• Educate on emerging trends, issues, shifts and changes

likely to occur over the next 10 years• Better understanding of impacts• Better understanding of “systems thinking”

Learning Outcomes:• Insights surrounding the future• Insights surrounding the future of supply chain• Insights on new tools that can help with impact analysis• Insights into new tools that can with decision making.

40

improvement. The panel will take a look at RFID applicationsand debate and discuss the issues that revolve around makingit all run smoothly. Can it run smoothly, and if so, who bene-fits the most – manufacturers, logistics service providers, orretailers? Is there, or will there be an ability to integrate RFIDacross the supply chain and vertical markets in an efficient andcost effective way? Have we reached the point of industrycritical mass and standardization to provide sufficient benefitto overcome startup investment risks and operating costs ofRFID?

9:15 am – 10: 15 am,Thursday Cutting EdgeResearch & BenchmarkingTrack -Ballroom FTrend Effects & ManagerialDecision Making Survey –ResultsSpeaker:

Dr. Tom DeCarlo, Ph.D., Professor ofMarketing & Industrial Distribution,University of Alabama at Birmingham

Abstract:Strategic decision making plays a fundamental role in the abil-ity of companies to execute their marketing and supply chainstrategies. Because many decisions confronting managersinvolve complex judgments made on the basis of incompleteor ambiguous information, such evaluations would seem quitesusceptible to bias.

The proposed study is designed to investigate a number ofpotential differences among channel partners. For example,one research question involves the decision making process ofchannel partners that are ‘upstream’ from the distributor, i.e.,manufacturers of electronics components for distributors, ver-sus those that are ‘downstream’ from the manufacturer, i.e.,distributors of electrical components.

Based on our preliminary assessments, we believe there will beimportant decision making differences between distributorsand manufacturers. Our goal is to investigate the reasonsunderlying these potential differences. The proposed study willalso investigate whether a marketing orientation (e.g., sales-person as a respondent) versus an operational business orien-tation (e.g., an operations manager) will systematically biasdecision making processes. Based on evidence in related fields,we believe that there will be significant differences between arespondent who is more marketing-oriented as compared toone who is more operational in their orientation. We alsoplan to investigate a number of additional research questionsfrom the data (e.g., risk propensity of the respondent and its

effects on decision making, market-based factors such as mar-ket volatility, etc.).

These and other research questions the study investigateshave the potential to provide important management implica-tions. For example, the results will help managers predict pref-erences among upstream or downstream in the channel. Inaddition, the study will also provide specific factors that affectthe decision processes of the different channel members. Theresults will also help understand the relationship buildingprocess within the channel by offering insights into how tobetter manage supply chain dynamics given different prefer-ences among marketing and operations personnel. It is alsoimportant to note that this study is part of an ongoing streamof research. The data collection phase of this particular pro-ject is currently underway and the additional data collected bythe DBM participants promises to offer some interesting com-parisons.

10:30 am – 11:30 am,ThursdayBest Practices Track –Ballroom AImproving Supply ChainPerformance throughScorecard CollaborationSpeaker:

Carol Carrieri, Director of Supply Chain NA,Henry Schein, Inc.

Abstract:This session will focus on Henry Schein’s supplier initiatives toimprove partnerships and supply chain performance.Emphasis will be on the development and implementation ofsupply chain scorecards, as well as the resulting collaborativeefforts. Participants will be provided an opportunity to analyzesample supplier scorecards, identify strengths and weaknesses,and create collaborative methods and targets for performanceimprovement. It will also illustrate tracking tools to measureoutcomes.

Presentation to include:• Timeline of events leading up to scorecard • Scorecard Requirements: Defining metrics, program

development, and testing • Scorecard Launch - Communications• Scorecard used as a collaborative tool to improve supply

chain efficiencies• Small break out groups to explore working with scorecard

43

Session Abstracts

42

9:15 am – 10:15 am, ThursdayTransportation Issues Track –Ballroom EPanel: Challenges inTransportation: How toIncrease Efficiency & CombatRising CostsModerator:

Dr. John Taylor, Ph.D., Associate Professor,Marketing, Grand Valley State University

Panelists: Tom Shepherd, VP of Transportation,Chiquita Express

Michelle Livingstone, VP, Transportation,The Home Depot

Jeff Brashares, EVP & COO, Pacer

Lance Whitacre, Director of OrderManagement & Logistics, AndersenWindows, Inc.

Abstract:This session will focus on the new challenges in managingtransportation and will focus on the solutions that panel mem-ber firms are focusing on. The session will be conductedusing an informal discussion format with the moderator askingquestions of panel members. Audience members will also beasked to raise questions about the panel member’s commentsin an interactive way as the discussion proceeds. The chal-lenges that will be discussed relate to the rising costs ofdomestic and international transportation and their impact onsupply chain system design and management. Panel mem-bers will each be asked to focus on one or two approachestheir firms are taking to deal with the challenges of risingtransportation costs. Topics that are expected to be addressedrelate to approaches to dealing with fuel surcharges, environ-mental mandates, private fleet vs. purchased trucking roles,transportation management systems implementation, supplierdiversification and location, distribution center network design

and numbers, and direct store delivery vs. DC routing.Depending on panel members comments and audience ques-tions, additional approaches to dealing with rising transporta-tion costs may also be addressed.

Learning Objectives:• Obtain insights into how to deal with rising transportation

costs• Obtain an understanding of specific approaches to

dealing with transportation costs• Obtain an understanding of the advantages and

disadvantages of particular approaches

Learning Outcomes:• Understand the wide range of approaches to addressing

transportation challenges• Understand specific solution areas that panel member’s

firms are pursing• Understand audience members and other panel members

perspectives on the approaches that individual panel member firm’s are pursing

9:15 am – 10:15 am, ThursdayFuture Trends & Issues Track –Ballroom DThe Future of RFID: Does itWork Across Industry?Moderator:

Jim Moore, VP, Ryder

Panelists: Kevin Bott, SVP & CIO, Ryder Systems

Rick Kallop, RFID Business DevelopmentManager, Lexmark International

Phil Therrien, RFID Implementation,Kimberly-Clark

Abstract:The benefits of RFID are touted as increased product availabili-ty at shelf level, theft reduction, and reduction of other cate-gories of shrink, productivity improvement and pricing

improvement program entailing multiple initiatives over athree-year period of time was begun in 2007 to provide thesesignificant savings.

A key part of the continuous improvement program is ProjectOverdrive, focusing on upgrading the existing transportationplanning software, integrating inbound transportation, imple-menting a supplier visibility tool and partnering with carriersto effectively put continuous move load tendering into opera-tion. This initiative is driven by a cross-functional team repre-senting Packaging, Commodities, Information Services,Finance, Manufacturing and Transportation.

This session will outline the approach The Hershey Companyis taking towards this project. It will discuss key inputs, out-puts and change management concerns for this process-changing initiative along with lessons learned and bestdemonstrated practices.

Learning Objectives:• Case Study on key inputs, outputs and change

management concerns on a company-wide process changing initiative to:– Upgrade the Transportation Planning System– Integrate Inbound Transportation Planning– Implement a Supplier Load Visibility Tool– Put Continuous Move Load Tendering into operation

Learning Outcomes:• Understand the approach The Hershey Company is taking

towards generating significant transportation savings.

10:30 am – 11:30 am,ThursdayFuture Trends & Issues TrackBallroom DPanel: Globalization: ThePro’s & Con’s of Off-shoringModerator:

Dr. Robert Jacobs, Ph.D., Professor ofOperations, Indiana University

Panelists: Jeff Regan, VP, Materials Management,Watson Pharmaceutical

Katy Stone, Director of Logistics, DuPontUSA

Mike McBreen, VP, Supply Chain &Logistics, Furniture Brands International

Abstract:As supply chains globalize, companies continue to evaluatealternatives for off-shoring activities. The term ‘off-shoring’ isused in various situations and may take on slightly differentmeanings. Therefore to effectively discuss the ‘pros’ and‘cons’ of off-shoring, defining what is being considered for‘off-shoring’, the location of origin and destination for such‘off-shoring’ and the risk and benefits associated with thechange must be considered. In short, business must under-stand the work, the impact of the change and the new oper-ating model.

As businesses evaluate ‘off-shoring’ manufacturing, services orsources of materials to a location offering lower costs, it isimperative to clearly define the scope of work, what needs tochange and the value proposition. There is always risk associ-ated with this change; but if a company decides to proceedbecause benefits outweigh the risks, the key challenge is man-agement of change to effectively and efficiently implement a‘new way’ of doing business.

Companies that send work offshore could cut costs by asmuch as 25-50%, when business/SC processes are trans-formed to take advantage of the ‘new’ business model. Butwithout work redesign to exploit automation, manage riskand take full advantage of the new environment's potential,companies risk sub-optimization, business disruption andlower than expected benefits.

DuPont has several examples of off shoring and how theseefforts have successfully provided a competitive advantageand changed the way we do business. However managing thechanges required significant effort, focused resources, processsystems and governance redesign and leadership alignment.Examples include changing raw material sources to emergingeconomies, outsourcing selected transactional processes toIndia, and working with service providers on their outsourcinginitiatives that ultimately reduce our service costs.

Learning Objectives:• Examples of work – key services, commodities.• Elements for consideration/decision making• Liberating Value

Learning Outcomes:• Pitfalls • Success factors• Key Takeaways

45

Session Abstracts

44

Learning Objectives:• Understand phases of scorecard development • Utilize scorecard metrics to identify process improvement

opportunities • Develop mutual “reach” and “stretch” goals • Create action plans for identified process improvement

opportunities• Track and measure performance

Learning Outcomes:• To identify meaningful metrics and processes to improve

supply chain performance• To effectively analyze metric scores and identify

opportunities for supply chain improvements• To collaboratively develop mutual goals based on

individual and peer group performance.• To create robust action plans to achieve supply chain

efficiencies (tracking, measuring, and follow up)

10:30 am – 11:30 am,ThursdayHot Topics Track – Ballroom GPanel: Managing a SupplyChain through a RecessionModerator:

Dr. Alex Sommers, Professor, Departmentof Industrial Engineering, University ofNew Haven

Panelists: Jim LaBounty, 2008 Chair, SCLA ExecutiveCommittee

Steve Poplawski, SVP, Logistics & SupplyChain, True Value

Jim Craig, SVP, Sales & Marketing, NYKLogistics (Americas) Inc.

Abstract:Managing in an economic recession is an experience that isuncommon in the U.S., and it requires quick, well-calculatedresponses to fast-acting forces that are usually impossible topredict and are possibly unprecedented. Only senior man-agers may have recession-related experience. Serious issuesinclude fast drops in consumer demand, very tight credit, bal-looning inventories, excess labor, and failing vendors. Panelistsfrom several industries give strategies for survival, and describeobserved pitfalls, fallacies, and unwise management actions.

Learning Objectives:• To gain insight into recession-related managerial issues

and problems• To recognize the special dangers and opportunities that a

recession delivers

Learning Outcomes:• Take home new recession-fighting management strategies• Realize the real dangers that recession poses to the

corporate status quo

10:30 am – 11:30 am,ThursdayTransportation Issues TrackBallroom EImproving TransportationEffectiveness: BreakthroughThinking in Carrier AssetManagement at the HersheyCompanySpeaker:

Melanie Keller, Senior Operations ProjectLeader, The Hershey Company

Abstract:Today’s business environment requires a strong focus on effec-tively managing transportation costs. With fuel charges signif-icantly increasing, and the price of commodities drasticallyimpacting the bottom line of food manufacturers, containingLogistics costs has been a strategic imperative at The HersheyCompany.

Strong initiatives over the past few years have been very suc-cessful in keeping costs in line but breakthrough thinking andmajor process change were required to achieve significanttransportation savings. An innovative logistics continuous

• Learn what issues were identified as most important in both the US and Europe

• Find out what education and research needs are required to address these issues

• Understand how you can participate in this research project

International Freight Security Impacton Supply Chain EffectivenessSpeaker:

Dr. Garland Chow, Ph.D., AssociateProfessor of Operations & Logistics,University of British Columbia

Abstract:How are supply chain organizations coping with the need tosecure freight movements? A survey of stakeholders in themovement of marine containers sheds light on the motivationof firms implementing security programs and the impact ofthese programs on supply chain performance. Key perfor-mance indicators (KPIs) are identified for both security and tra-ditional supply chain performance and the relationshipbetween security performance and supply chain performanceis examined. Issues addressed include the relative impact ofdifferent security initiatives and importance of collateral bene-fits resulting from security investment.

Learning Objectives:• Review security initiatives utilized in global marine supply

chains• Gain insight on how which security initiatives are

appropriate.• Understand how security programs impact traditional

supply chain performance

Learning Outcomes:• Improve your ability to evaluate cargo security initiatives.• Integrate security with supply chain planning

1:00 pm – 1:45 pm, ThursdayBest Practices Track –Ballroom ADemand Forecasting: Its Tiesto S&OPSpeaker:

Jerry A. Smith, Director, Operations Science& Analytics, Baxter Healthcare Corporation

Abstract:As a process, demand planning represents the first link in anoperational chain that guides the efforts of manufacturing,purchasing, and distribution, supports capacity planning activ-ities and serves as a baseline in the development of the finan-cial forecast. A robust demand planning process facilitatesimproved forecast accuracy by analyzing results, developing abaseline projection, integrating sales and marketing informa-tion, providing a forum to discuss and challenge assumptions,and achieving consensus on a final forecast. Maintaining ahigh degree of forecast accuracy assures the business will havethe right product in the right place for its customers and con-tributes to the overall financial performance by providing factbased, realistic projections and reducing waste throughout thesupply chain.

A structured, well-managed Demand Planning process willcontain essential elements that deliver transparent informationto dependent functional operations allowing each to updateprojections, analyze effects, identify constraints, and preparerecommendations for review in the Sales and OperationsPlanning process. A reliable Demand Planning process allowsthe S&OP process to focus on what’s necessary to operational-ly meet market requirements rather than arguing about thenumbers.

Learning Objectives:• To understand the role Demand Planning plays in

enabling a successful S&OP process and what factors are involved in sustaining a reliable forecasting practice.

Learning Outcomes:• What is demand planning • What are the risks associated with forecast error• What part does Demand Planning play in the S&OP

process• What are the key elements of a robust Demand Planning

process• What roles do the various business functions play in the

Demand Planning process

47

Session Abstracts

46

10:30 am – 11:30 am,ThursdayCutting Edge Research &Benchmarking Track –Ballroom FResearch in BriefNote these are 15 minute presentations that will begiven in succession during this allotted time frame

Automation Implementation &Custom Designs & Material HandlingSpeaker:

Dr. Steve Derby, Ph.D., Associate Professorof Mechanical Engineering, RensselaerPolytechnic Institute

Abstract:This presentation will discuss research into new solutions fororder picking. From selecting a single item for individual storedelivery to a case of product shipped on a mixed case lot pal-let, novel methods to perform these tasks will be discussed.With today's shrinking workforce challenging a DC's need forquick response, corporations are looking to automation. Manyexisting automation methods are too expensive, driving thisresearch effort towards being cost effective business solutions.

Learning Objectives:• Quick review of automation technology • Long and short term directions for automation strategies• Research done outside of large automation firms

Learning Outcomes:• New automation solutions for order picking • How to balance investment costs by modular

implementation • Using existing DC's without complete replacement • How to keep orders flowing using graceful degradation in

automation design

Global Supply Chains: Lean vs. QualityControlSpeaker:

Dr. Alex Sommers, Ph.D., Professor,Department of Industrial Engineering,University of New Haven

Abstract:Efforts to achieve lean operations through outsourcing, andespecially off-shoring, have tended to neglect quality assur-ance, sometimes to the point of costly failure and governmentintervention. Customers must now devise new methods toinsure quality at distant supplier locations, and, just as impor-tant, use forensic analysis and engineering to detect a qualityproblem and track it to its source. This is not a simple tasksince forensic analysis is typically not practiced outside crimi-nal investigation, and is not usually needed in quality assur-ance functions. Research is needed to design quality assuranceoperations which include forensic analysis and continuous on-site quality investigations.

• What forensic science and engineering techniques can be used in quality assurance?

• How should customers manage quality with distant suppliers?

• How can hidden, deliberate quality problems be detected prior to shipment?

• What State-side quality procedures should be instituted, if any?

Supply Chain Management 2010 and BeyondSpeaker:

Dr. Rhonda Lummus, Ph.D., AssociateProfessor of Operations & Supply ChainManagement, Iowa State University

Abstract:Supply chain mangers will face significant changes and chal-lenges in the coming years. By forecasting trends and chal-lenges, steps can be taken to close the gaps that existbetween today's capabilities and the demands of the new sup-ply chains. Recent research done at multiple sites in the U.S.and in European brought together leading practitioners andacademics to identify these gaps. Learn where leading thepractitioners are planning to direct their organizations toimprove supply chain performance in the next five to tenyears.

1:00 pm – 1:45 pm, ThursdayCutting Edge Research &Benchmarking Track –Ballroom F Understanding the Drivers ofSupply Chain Risk Speaker:

Dr. Jennifer Blackhurst, Ph.D., AssociateProfessor of Logistics and Supply ChainManagement, Iowa State University

Abstract:The management of disruptive events in supply chains is acritical concern for firms competing in today’s global market.A single disruption occurring in a supply chain can quicklypropagate and intensify in impact, with devastating conse-quences. While the topics of supply chain risk and disruptionsare timely, supply chain managers need tools to better under-stand the drivers of risk in their supply chains. This session willfocus on developing a better understanding of the drivers ofsupply chain risk and what can be done to manage these dri-vers. These insights can be used in the development and exe-cution of effective mitigation strategies to reduce or evenavoid the negative impact of supply chain disruptions.

Learning Objectives:• Introduction to the concept of supply chain risk• Understanding of risk driver categories

Learning Outcomes:• Analysis of your company’s risk drivers • Discussion of risk mitigation strategies for each driver

category• Getting started: Developing a supply chain risk

management plan by understanding risk drivers

2:00 pm – 2:45 pm, ThursdayBest Practices Track –Ballroom AEasy: How to Make ThingsEasier for CustomersSpeaker:

Sue Pellechio, Vice President CarrierManagement, Staples, Inc.

Abstract:In 1986, Staples invented the office superstore. Today, we arethe world's largest office products company with sales of$19.4 billion dollars in 2007. Our more than 76,000 associatesin delivery businesses and 2,000 stores around the world arededicated to making it easy to buy office products. Once aretail–only operation, Staples continues to expand and meetthe office product needs of the ever–changing global market,estimated to be a $260 billion opportunity. The company nowserves customers through catalogs, delivery service andaward–winning e–commerce sites around the globe. Quill, adirect marketer of office products, is nationally recognized forits customer service to vertical specialty markets such as thelegal and medical professions. Our Contract business is one ofthe fastest growing in the United States.

Our European stores, delivery organizations and e–commercesites provide Staples with incredible growth potential in a veryfragmented marketplace. Meanwhile our delivery businesses inArgentina, Brazil and China are building a foundation forgrowth in those emerging international markets.

Staples has not only grown; we have evolved to meet theneeds of our customers. We know that business is much morecomplicated and customers are pressed for time, now morethan ever. Today, Staples promises to help make it easy forpeople to buy their office products.

In this session, learn how Staples makes it easy for ourCustomers, our associates, our institutional investors, and ourshareholders.

Presentation to include:• An overview of our easy brand strategy and evolution.• Distinct ways that we make it easy for our Customers to

shop at Staples- whether in store, or delivered. • How we make it easy for our associates to “deliver the

easy”.• How we make it easy for financial institutions and

shareholders to invest in Staples.• Our Staples Soul (Diversity, Environment, Ethics,

Community).

49

Session Abstracts

48

1:00 pm – 1:45 pm, ThursdayHot Topics Track – Ballroom GDisruptive DemographicsSpeaker:

Kevin Smith, SVP of Supply Chain &Logistics, CVS/pharmacy

Abstract:The workforce population is aging quickly and there are fewernew potential employees coming along than will retire in thenext decade. Companies will need to learn how to deal with adiminished number of candidates for jobs over the comingdecades. Additionally, companies must be on guard to preserveskills and knowledge as older workers leave the workforce.

Learning Objectives:• Learn the history and scope of the problem • Hear what some companies are doing to address it• Hear alternatives to conventional approaches• Dispel myths about older workersLearning Outcomes:• Awareness before it becomes too late• Develop plans to attract and retail older workers• Understand some approaches to making an older work

force productive

1:00 pm – 1:45 pm, ThursdayTransportation Issues Track -Ballroom EInland Infrastructure -Ensuring Our FutureSpeaker:

George Duggan, Vice President, DomesticIntermodal, BNSF

Abstract:Did you know that the US population will likely increase to338 million by the year 2020? This phenomenal growth willonly add to the demand for consumer goods. The questionthat remains – will our nation’s inland infrastructure supportthis growth? In this session, we will address the challengesthat domestic supply chain faces now and in the future. Wewill share how the rail industry is responding by improvingservice offerings, infrastructure and facilities, and how, throughcollaboration, each member of the supply chain can helpensure the future of freight mobility.

1:00 pm – 1:45 pm, ThursdayFuture Trends & Issues Track –Ballroom DSupply Chain InitiativePrioritizationSpeaker:

Daniel Marous, VP, North AmericanDelivery Summit Supply Chain Programs,Staples, Inc.

Abstract:The focus of this session is an introduction to the StaplesOperations Planning process. We will cover a 7-step processthat describes our Vision, Mission, and Strategy (“Where wewant to go”), compare it to our current performance (“Wherewe are today”) and identifies how to bridge that gap throughour goals and objectives. We will describe how we generatean “In Play” project list (“The things we do and how we prior-itize a plan”) in order to meet our goals and objectives. Theseprojects are then monitored, completed, and communicatedthroughout the Supply Chain organization.

At its heart, this session focuses on connecting business andsupply chain strategy to the projects and work that is priori-tized. We are all challenged to sift through a multitude ofproject opportunities. This process provides a pragmaticframework for executing this critical effort.

Learning Objectives:• Understand the 7-step Operations Planning process• Understand how Staples connects our vision, mission,

strategy, goals and objectives to the project prioritization. • Describe how projects are weighted in the “Pipeline”

and then selected for the “In-Play” list. Discuss the “stop doing” concept

• Describe how work on the “In Play” list is planned andexecuted, including the use of an improved decision

making framework. • Review some of our key tools to understand how projects

are monitored and communicated throughout the supply chain organization.

Learning Outcomes:• Participants will be introduced to a structured

methodology for prioritizing• work in a manner that connects to the broader company

and supply chain strategy.• Participants will review some simple tools used to facilitate

the process

2:00 pm – 2:45 pm, ThursdayFuture Trends & Issues Track -Ballroom DCarbon Footprint AnalysisSpeaker:

Jeff Ball, Director, Supply Chain ProjectManagement, Philips Consumer Lifestyles& Tim Brown, Chainalytics

Abstract:In late 2007, Philips merged its Consumer Electronics,Peripherals & Accessories and Domestic Appliance divisionsinto a single business sector – Philips Consumer Lifestyle. Eachof the prior divisions had previously developed their own inde-pendent supply chains, so the merger created a new opportu-nity to combine locations into a single optimized network.With Philips’ heritage of being a leader in the eco greenmovement and their commitment to sustainability, it wasimportant to consider carbon emissions in the network opti-mization model.

This session will share Philips’ experience in working with aleading supply chain analytics consultancy company to define,construct and execute a network optimization model with car-bon emissions footprint considerations as a key variable.Philips will also share results and surprises of the modelingeffort, including: impacts of reducing/combining locations andkey trade-offs for decision making (cost / carbon / customerservice).

Learning Objectives:• Importance of considering carbon in a network analysis• Carbon Modeling approaches – Reporting, Carbon as a

Constraint, Carbon as an Optimization Cost Element• Impact of product sourcing locations on final results• Impact of number of distribution centers and their

locations on final results• Cost, carbon and customer service trade-offs

2:00 pm – 2:45 pm, ThursdayCutting Edge Research &Benchmarking Track -Ballroom FGlobal Supply Chain RiskManagementSpeakers:

Dr. Omar Keith Helferich, Ph.D., Professor,Marketing & Logistics, Central MichiganUniversity

Dr. M. Douglas Voss, Ph.D., AssistantProfessor, University of Central Arkansas

Abstract:In today’s global marketplace, organizations are under increas-ing pressure to comply with a multitude of different perfor-mance guidelines and standards: quality management, prod-uct safety, occupational health and safety, import/export regu-lations. labor laws, environmental management and protec-tion, and security. The pressure to sustain success in the glob-al competitive environment while protecting the brandrequires ongoing improvements of the supply chain risk man-agement model with appropriate assessment and responsesolution processes. The objective of this session is to present asolution process with business applications that utilize webtechnology to address risk based assessment and responsesteps within the overall domain of global supply chain riskmanagement. Attendees will learn about the results of univer-sity research on supply chain security and the results of ongo-ing application of web based solutions to achieve more effi-cient and effective global supply chain risk management.

The session initially presents the results of a multiple yearDepartment of Homeland Security sponsored research initia-tive lead by Michigan State University, University ofMinnesota, and Georgia Tech to define the vulnerability gaps,status of corporate security/brand protection, and recommen-dations to enhance US supply chain security. The session willalso provide a summary of research results on availability andapplication of information technology to address global sup-ply chain security-brand protection. The emphasis of the ses-sion will be on the successful application of web based tech-nology to improve efficiency and effectiveness of the assess-ment and response to enhance brand protection. Selectedapplications of the technology will be presented with arrange-ments for demonstration possible.

51

Session Abstracts

50

Learning Objectives:Participants will gain understanding of the following:• Developing a customer centric culture.• Strategies behind our easy brand promise.• Our plans to gain additional market share.• The importance of having a soul.

Learning Outcomes:• How to develop a Customer centric company culture.• How to make it easy for Customers to do business

with you.• How to execute against your brand promise.• How to gain market share.• How important it is to have clearly defined company

values.

2:00 pm – 2:45 pm, ThursdayHot Topics Track – Ballroom GPanel: End to End LeanModerator:

Dr. Alex Sommers, Ph.D., Professor,Department of Industrial Engineering,University of New Haven

Panelists: Billy Boykins, Director of NA ProductSupply Operations, Procter & Gamble

David Proctor, SVP, Supply Chain Solutions,NYK

Abstract:Becoming lean does not mean becoming emaciated. It is pos-sible to carry lean projects too far, and to reduce an organiza-tion’s ability to respond quickly and effectively to new oppor-tunities and to issues in existing lines of business. Lean is notsimply cost reduction: it is the removal of wasted time andresources to produce higher productivity and faster responseto customer needs. Examples are provided, and a pragmaticset of guidelines is suggested for management review as leanpractices are adopted.

Learning Objectives:• To understand the total sense of lean operations• To realize that there are important constraints to lean

activities• To conceptualize lean as a means to important ends

Learning Outcomes:• Take away a sense of the true purpose of lean thinking• Exercise caution in approving and in assessing lean

projects

2:00 pm – 2:45 pm, ThursdayTransportation Issues Track -Ballroom EFuel: The Elephant in theRoomSpeaker:

Paul Orrico, Director of Fuel ProductDevelopment, Ryder Energy DistributionCorp.

Abstract:As the Director of Fuel Products for Ryder System., one of thelargest surface transportation fleets in the United States, I amconstantly asked what is driving the petroleum market andwhere is it headed. With crude oil, heating oil and gasolinereaching historical highs, and with new market events it seemsevery day, it is hard to budget and plan for your fleet’s fueltransportation expenses which can account for 40% of thetotal transportation cost. We will explore some of the key mar-ket indicators such as, weather, supply and demand, geo-political and hedge funds and effect they all have on today’sfuel prices. What will they mean for fleet operators in 2008?What, if anything, can you do to manage this volatile com-modity? Is risk management or hedging the answer? Howabout alternative fuels? Can they reduce the cost and whatdoes the future hold for the President’s 20 in 10 policy? Inthis session, we will discuss these questions and take a look atthe issues that continue to change and evolve on a daily basis.We will review the market as it looks today. We will talk abouthedging and Bio-diesel to see if they might be an answer. Iwill also attempt to give some guidance for future cost in2008. As a wrap-up, there will be a Q&A session on any relat-ed issues.

Learning Objectives:• Explanation of petroleum market drivers• Explore Bio Diesel as an alternative fuel• Discuss the basics of hedging

Learning Outcomes:• Better understanding of what drives the petroleum

markets• Hedging options for your fleet

Dr. Jennifer Blackhurst, Ph.D., AssistantProfessor, Supply Chain Management,Iowa State University

Dr. Garland Chow, Ph.D., AssociateProfessor of Operations & Logistics,University of British Columbia

Dr. Richard Dawe, Ph.D., AssociateProfessor of Operations & Supply ChainManagement, Golden Gate University

Dr. Thomas DeCarlo, Ph.D., Professor& BenS. Weil Endowed Chair of IndustrialDistribution, University of Alabama atBirmingham

Dr. Stephen Derby, Ph.D., AssociateProfessor of Mechanical Engineering, RPI

Dr. Steve Dunn, Ph.D., Professor Chair ofSupply Chain & Operations Management,University of Wisconsin at Oshkosh

Dr. George Haley, Ph.D., Professor,Industrial Marketing & InternationalBusiness, University of New Haven

Dr. Omar Keith Helferich, Ph.D., Professor,Marketing & Logistics, Central MichiganUniversity

Dr. Robert Jacobs, Ph.D., Professor ofOperations, Indiana State University

Dr. Jezdimir Knezevic, Ph.D., Professor,MIRCE Akademy, UK

Dr. Rhonda Lummus, Ph.D., AssociateProfessor of Operations & Supply ChainManagement, Iowa State University

Dr. David Menachof, Ph.D., Professor &Senior Lecturer in Transport Economics,International Logistics & Distribution, CityUniversity, London

Dr. Terry Pohlen, Ph.D., Associate Professorof Logistics, University of North Texas

Dr. Elliot Rabinovich, Ph.D., AssociateProfessor Supply Chain Management,Arizona State University

Dr. Alex Sommers, Ph.D., Professor,Department of Industrial Engineering,University of New Haven

Dr. Charles Sox, Ph.D., Professor &University Chair of ManufacturingManagement, University of Alabama

Dr. John Taylor, Ph.D., Associate Professor,Marketing, Grand Valley State University

Dr. M. Doug Voss, Ph.D., AssistantProfessor of Marketing & Supply ChainManagement, University of CentralArkansas

53

Session Abstracts

52

The referenced solution utilizes a risk based process that isbeing successfully applied to assist in risk mitigation for any orall of the three pillars of a sustainable supply chain; economicvalue, social responsibility, and environmental stewardship.The session discusses an actual operational risk based solutionfrom supplier-commodity through retail that uses a web basedbased decision system to address risk for a major foreignenterprise operation. This solution addresses Economic, Socialand Environmental risk factors. The solution involves upwardsof thousands of raw materials, finished consumer products,and transportation suppliers from multiple national sources toservice over 90,000 establishments (processors and retail oper-ations). The solution includes risk based field audit scheduling,linkage to enterprise database and compliance reporting.

Learning Objectives:• Provide understanding of need to address global

competitive environment while also protecting the corporate brand

• Present results of multiple year research completed over the period of 2005-2007 by Michigan State University to enhance US supply chain security. The research was sponsored by the Department of Homeland Security and industry.

• Present recommendations on supply chain benchmarking,process and information technology to address global supply chain security-brand protection

• Review approach to address sustainability through the concept of The Triple Bottom Line- Economic, Social and Environmental performance tradeoffs.

Learning Outcomes:• A framework with defined supply chain core

competencies that drive security and brand protectionperformance

• Reference to an available benchmark spreadsheet tool to compare corporate competency scores to those of top performing companies

• Suggested process with 10 elements/steps to develop andmanage corporate security and brand protection

• Review of proven solutions to address supply chain incident response through use of web and risk based hardware/software systems.

• Suggested approach to achieve more resilient, sustainable supply chain through Triple Bottom Line business model and information technology

Keynote4:15 pm – 5:00 pm, ThursdayBallroom D “Circle of Excellence Winner”

Day ThreeFriday, June 27, 2008Super Sessions

Super Sessions repeated from 8:15 am – 12:30 pm (Please refer to pages ?? - ?? forSuper Session details)

2008 Supply Chain Leaders in Action Program:University Faculty

Jeff Brashares, Vice Chairman-Commercial Sales, Pacer

Jeffrey was born the son of two schoolteachers inMansfield, Ohio, on June 11, 1952. He was graduated fromMalabar High School in

1970 as a Member of the National Honor Society and receivedthe Michigan Honor Trophy for Outstanding Senior Boy.

In 1972, Jeff was graduated from the University of Akron withan Associates Degree in Transportation with Distinction.During his time at Akron University, he was awarded a mem-bership in Phi Eta Sigma, a National honors fraternity, andplayed in the university band.

With railroads in his blood, Jeff spent the next four years withthe Erie Lackawanna Railway first as a Chief Clerk in theCincinnati Sales office and then moved on to Cleveland in thesame position. Before leaving the Erie, Jeff held the position ofSales Representative and then Assistant Division SalesManager, in Cleveland.

As the Erie Lackawanna was being merged in to Conrail, Jeffleft for a position as Sales Representative for Rail Van, Inc., inCleveland, Ohio. In 1978, Jeff moved to Columbus andopened up Rail-Van of Columbus, Inc., and, in 1984, he andtwo partners, Bill Lee and Denis Bruncak, purchased the $18million intermodal transportation company.

The owners expanded the company into a full logisticsprovider and in 1998, took on an additional partner, KDR,consisting of the late Dave Thomas, son Ken Thomas and RickRichards. This followed closely with a joint venture withMaersk Logistics, a Division of A. P. Moeller.

In 2000, the $550 million company was purchased by PacerInternational and the company was renamed Pacer GlobalLogistics, a $1 billion provider of Supply Chain Services. Jeffremains as Vice Chairman-Commercial Sales.

Mark Buckley, Vice President ofEnvironmental Affairs, Staples, Inc.

Mark Buckley directs Staples’ environmental com-mitment and sustainable business practices to protect andpreserve natural resources. He is responsible for driving thecompany’s environmental leadership in four major areas: thepurchase and promotion of recycled content products; chain-wide recycling initiatives; energy conservation programs andrenewable power procurement; as well as educational initia-tives for customers and associates. A 16-year Staples veteran,Buckley was previously vice president of facilities managementand purchasing at Staples where he directed company-widerecycling and energy conservation programs. Prior to joiningStaples, Buckley held several leadership positions in the field of

environmental management for Star Market, ContinentalBaking, General Environmental Services Inc. and the U.S.Department of Interior/Aquaculture Project. He holds aBachelor’s degree in biology from St. Anselm’s College and isan active member of several environmental groups for theState of Massachusetts.

Jack Buffington, Director of Lower ValleyOperations, Molson-Coors

Mr. Buffington is presently responsible for lowervalley operations for Molson Coors' Golden Colorado opera-tion - the largest single site brewery in the world. Before thisposition, he was the Director of Supply Chain transformationat the Coors Brewing Company, and was the Director of e-Business for two years at Coors as well. In his prior experi-ence, Buffington was an adjunct professor in the InformationTechnology and Management departments at the Daniel'sSchool of Business at the University of Denver, and worked forKPMG, a Big Five consulting firm. He is also an author of thebook "An Easy Out: America's Addiction to Outsourcing", waspublished in August, 2007.

Carol Carrieri, Director of Supply Chain NA,Henry Schein, Inc.

Carol Carrieri has over 20 years Supply Chainexperience encompassing: materials management, distribu-tion, project management, transportation, warehouse designand management, purchasing and consulting.

She joined the Henry Schein Team Corporation in 2002 asDirector of Operations at the Secaucus, NJ facility.

Carol accepted the position of Supply Chain Director-NorthAmerica in April 2004 and is proud to be a member of theHenry Schein Team.

She attended Ryder College and Rowan University. Shereceived a BA in Education.

Carol chose the business world rather than teaching as acareer.

Dr. Garland Chow, Ph.D., AssociateProfessor of Operations & Logistics,University of British Columbia

Associate Professor of Logistics and Supply ChainManagement in the Sauder School of Business at theUniversity of British Columbia and Director of the Bureau ofIntelligent Transportation Systems and Freight Security.

Dr. Chow teaches and writes in the fields of supply chain,business logistics and freight transport management. He has

5554

Jeff Ball, Director of Supply Chain ProjectManagement, Philips Consumer Lifestyles

Jeff began his career at Philips as a ManufacturingEngineer in their US manufacturing facility for color TV. Heprogressed through the organization as a Supply BaseManager in Purchasing and after completing his MBA, hejoined the Logistics Innovation team as a Project Manager.Jeff has led many major projects to develop and implementimprovements for the total end-to-end supply chain, includ-ing: international inbound, manufacturing material flows,direct delivery, network consolidation/optimization, 3PL out-sourcing and vendor consignment. He also worked for a peri-od as Master Black Belt in the Business Excellence organiza-tion, where he led a major Logistics and business improve-ment project to enable the transition to a new Flat TV-drivenbusiness model. Jeff is currently Director of Supply ChainProject Management in the newly formed Philips ConsumerLifestyle sector.

George Basil, Director of Supply ChainOperations Improvement, PetSmart

George Basil joined PetSmart as Director ofSupply Chain Operations Improvement in July 2007. Prior tojoining PetSmart, Mr. Basil was an independent consultantworking primarily for retail supply chain organizations onoperations improvement and staff augmentation assignments.Mr. Basil worked for a private medical supplies distributioncompany where he was Director of Operations. Mr. Basil alsoworked for Montgomery Ward & Co where he started asLogistics Director of Planning and Performance, then was pro-moted to Director of Logistics Operations, and Director ofDistribution. Prior to that, Mr. Basil held positions at DeloitteConsulting and KPMG after leaving the Marine Corps.

Dr. Jennifer Blackhurst, Ph.D., AssociateProfessor of Logistics and Supply ChainManagement, Iowa State University

Jennifer Blackhurst, Ph.D. is Associate Professor of Logistics andSupply Chain Management in the College of Business at IowaState University. She received her doctorate in IndustrialEngineering from the University of Iowa in 2002. Her researchinterests include: Supply Chain Risk/Supply Chain DisruptionModeling and Management; Distributed Systems/SupplyChain Modeling and Design; and Supplier Assessment andSelection. Her publications have appeared or been accepted insuch journal as Decision Sciences Journal, Journal ofOperations Management, Production and OperationsManagement, International Journal of Production Research,and Supply Chain Management Review. She is a member ofPOMS and DSI.

Dr. Blackhurst has industry experience in manufacturing andsupply chain management. Prior to her career in academics,she worked at Rockwell Collins where she was involved insuch areas as Industrial Engineering, Lean Manufacturing andleading the transition of newly designed products fromEngineering to full-rate production on a government spaceprogram.

Kevin Bott, SVP & CIO, Ryder Systems

Dr. Kevin Bott is Senior Vice President and ChiefInformation Officer of Ryder System, Inc., a

Fortune 500 global transportation and supply chain manage-ment solutions company. In this position, he oversees thestrategy, design, development and support of Ryder’s informa-tion technologies (IT). Dr. Bott helps to refine Ryder’s businessmodel and increase IT’s role as one of Ryder’s core competen-cies and competitive strengths.

Prior to this appointment, Dr. Bott served as Ryder’s VicePresident of Global Supply Chain Solutions TechnologyServices. In that role, he provided technology support of busi-ness development activities, design, testing and implementa-tion of value-added solutions and on-going account support.He was responsible for global product strategy and all trans-portation, distribution and supply chain applications, includingmanagement of mission-critical customer solutions.

Dr. Bott joined Ryder in 1995 as Director, Integrated Logisticsand has served in various high level positions during histenure at Ryder Systems.

Prior to joining Ryder, Dr. Bott held various positions in logis-tics, technology and operations management withCSC/Cleveland Consulting, Leaseway Transportation and CaseWestern Reserve University.

Dr. Bott holds a Ph.D. in Operations Management, a Master ofArts degree in Management Sciences and a Bachelor of Artsdegree in Biophysics from The Ohio State University.

Billy Boykins, Director of NA ProductSupply Operations, Procter & Gamble

Billy Boykins was named Director of NA ProductSupply Operations in 2005. Mr. Boykins have been withProcter & Gamble since 1977 when he began his career at aPSG-I Staff Manager at the St. Bernard location. Over the last30 Mr. Boykins increasing responsibility has given him vitalexperience and understanding of supply chain issues acrossthe board.

2008 Supply Chain Leaders in Action Program:Presenter/Facilitator Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

Jim Craig, SVP, Sales & Marketing, NYKLogistics (Americas) Inc.

As senior vice president of sales and marketing forNYK Logistics (Americas), Jim Craig brings 26 years of logisticsmanagement experience to the organization. He is responsiblefor all sales, pricing and marketing activities for all North andSouth American divisions of NYK Logistics Americas (NLA).

In 1983, Jim began his transportation logistics career with Con-Way Truckload Services. After 18 months in operations posi-tions, he moved into a sales role and by 1986 was the compa-ny’s leading revenue producer. He was promoted first to region-al sales manager in 1988 and then director of sales in 1990.

In 1992, he joined NYK’s GST Corporation subsidiary as vicepresident for the Midwest region. In 1995, he added responsi-bility for the Southwest region and then eventually assumedleadership for all business development activity west of theMississippi. In 2003, he was elevated to senior vice presidentof sales for the NLA Transportation Division overseeing all busi-ness development efforts for domestic transportation. He waspromoted in September 2005 to his current position as NLA’scommercial officer.

Jim is a graduate of Western Washington University with a bach-elor’s degree in business management and a minor concentra-tion in speech communications. He holds certifications as botha professional sales trainer and negotiator. In conjunction withGST Corporation’s 25th anniversary celebration, he was present-ed the company’s inaugural Presidential Award in 1997.

Craig is married to Sara, his wife of 23 years and has threeteenage children. In his spare time he is an avid cyclist andregularly rides in events of 100 miles or more for various chari-table fund raising efforts.

James Crump, Sr. Director of StrategicBusiness Solutions, SoftwareAG

James Crump is the Senior Director of StrategicBusiness Solutions for Software AG. He has spent the last 5years defining the science of Business Activity Monitoring andBusiness Process Management through customer engage-ments, implementations, innovations and industry definingreusable solutions. Prior to that, James was Director ofTechnology Innovation for Time2Market and Director ofDevelopment at Qwest. James spent 12 years as an ITArchitect in the Petro-Chemical industry, including 5 yearswith Electronic Data Systems as Chief Technologist. James hasa BS in Physics, with additional graduate studies in QuantumChemistry from the University of Texas, and over 20 yearsexperience in business and IT problem-solving. In his youth,James was a professional rock climber and guide with over200 first ascents, and five published guidebooks to his credit.

Dr. Richard Dawe, Ph.D., Assoc. Professorof Operations Management, Golden GateUniversity

Prior to joining academia, Richard had extensive managementexperience in all areas of global supply chain operationsincluding order processing, purchasing, logistics, productionplanning, industrial engineering, inventory management, pro-ject management, and after sales support with the govern-ment, consumer products manufacturers, chemical manufac-turers, logistics service providers, and food distributors.Companies he worked for or with includes Intel, HP, Samsung,Packard-Bell, Del Monte, Colgate among others. Richardworked as a consultant on many large, international supplychain reengineering and performance improvement projects.

Richard became a full time faculty member at Golden GateUniversity in 1998. He founded the Operations ManagementCompetency Center to promote professional development forstudents, faculty, and alumni. The Center has produced semi-nars, internships, research projects, and articles. Richard alsoteaches for the California State University and APICS certifica-tion courses. He has written numerous articles on supplychain management for professional publications and his bookon information technology in operations management waspublished by Penton in 1994. He has contributed to numer-ous research efforts in addition to his doctoral study of theimpact of technology on supply chain strategy.

Deb Dean, VP of Strategic Accounts,Spherion

Deb Dean is vice president of strategic accountsfor Spherion Corporation. She has responsibility for sales andservice excellence for a portfolio of approximately 60 ofSpherion’s largest account relationships.

Dean joined Spherion two years ago from Spring Group,where she served as VP global sales and strategic marketing.Having had responsibility for the launch of that company’svendor management solution, she has a unique understand-ing of supply chain logistics in the recruiting and staffing envi-ronment as well as the unique requirements of Fortune 500employers.

Dean was previously VP of sales for TRS Staffing Solutions anddirector of new business development for GRI PeopleNet, asubsidiary of Ford Motor Company. She began her career as arecruiter, following her graduation from Alma College inMichigan. Her career has placed her in numerous internationalassignments, and she has supported clients in Canada,Mexico, the U.K., France, Holland, Denmark, Switzerland,Norway, Australia and New Zealand.

With more than 20 years of experience in the staffing industry

5756

taught in the U.S., Canada, Australia, Brazil, China, HongKong, Japan, Mexico, and Poland and is a frequent speakerbefore professional associations and executive programs

He is an internationally known authority on motor carriertransportation having conducted research or consulting oneconomic, regulatory and managerial issues of the truckingindustry. Dr. Chow's logistics research interests include trans-portation collaboration, modeling the outsourcing decision forTPLs and the impact of e commerce on supply chain manage-ment. A frequent visitor and lecturer in Asia, he recentlyauthored “The Transportation and Warehousing Challenge forMulti-National Corporations in China”. His current researchincludes: the growth of the logistics services sector in China,the role of Canada in Asia Pacific supply chains, PacificGateway productivity, and how to improve security and effi-ciency of cross border freight movement.

Garland Chow earned his BS and MBA degrees from theUniversity of Maryland and doctorate from Indiana University.

Tom Christian, Director of HumanResources- Supply Chain & Logistics,CVS/pharmacy

Tom Christian is the Director of Human Resources-SupplyChain and Logistics for CVS/pharmacy, the retail arm of CVSCaremark employing approximately 8,000 associates.

Tom started his career at CVS/Caremark in 1981 as a StoreManager and was subsequently promoted to a DistrictManager in Northern New Jersey. In 1987, Tom entered theHuman Resources field as the Human Resources Manager forthe New York, New Jersey and Connecticut Regions ofCVS/Caremark.

Ten years later, Tom relocated to Woonsocket RI as theDirector of Staffing, Employment and Relocation for the com-pany. Tom then spent 3 years in the Woonsocket DistributionCenter as Human Resources Manager.

In 2004, Tom was promoted to his current position leadingthe HR strategy and agenda for Supply Chain and Logisticsand has been instrumental in promoting company-wide adop-tion of succession planning and talent development programs.

Tom is a graduate of Siena College with a degree in BusinessManagement. Tom has his SPHR from the Society for HumanResources Management and is a member of the HumanResources Planning Society and the Warehouse EducationResearch Society.

Tom and his wife Linda, along with their two daughters, livein Uxbridge, MA.

Casey Chung, Director of Production Planning,BlockbusterCasey Chung is the Director of Production Planning forBlockbuster's US Operations, which includes responsibilities forinventory control, quality control and decision analysis. Caseyhas over 20 years of supply chain and logistics experiencewith companies such as the U.S. Army, Wal-Mart, Technicolor,CellStar and Blockbuster. Casey received his B.S. in PetroleumEngineering from the University of Texas at Austin, his MBAfrom the University of Texas at Dallas, and he is currently pur-suing a PhD in Management Science at the University of Texasat Dallas.

Ken Cochran, VP of Supply ChainDevelopment, Polo Ralph Lauren

Ken Cochran is the Vice President of SupplyChain Development for Polo Ralph Lauren. In this role, Ken isresponsible for leading global supply chain development activ-ities required for all new business acquisitions, brand launchesand major supply chain operations improvements. For eachmajor development effort, Ken will lead the supply chain part-nership with our customers, Brand management teams, inter-nal operating groups and external service providers.

In addition to his development responsibilities, Ken leads ourglobal vendor compliance functions. In previous roles withPolo, he has led our customer compliance organization andmanaged 3PL service contracts.

Prior to Polo, Ken spent 8 years with Andersen Consultingafter graduating from Georgia Tech with a degree in IndustrialEngineering. After working with Andersen, Ken spent 5 yearsleading materials management and IT functions for two man-ufacturing companies that supply the automotive, home fur-nishings and construction industries.

John Coyle, Director, Logistical Alliances,Kimberly-Clark

John is the Director, Logistical Alliances forKimberly-Clark Corporation. He leads a team of twenty sup-ply chain professionals working with leading retailers in theU.S. and Canada to drive supply chain integration and perfor-mance improvement. John joined Kimberly-Clark in 1983,during his 24 years with K-C, in addition to the Supply Chain;he has held positions in marketing and production operations.Prior to moving into his current role, he led the implementa-tion of a re-designed supply chain planning process and SAP-Advanced Planning & Optimizing system in Europe.

John earned his B.S. in Logistics at Pennsylvania StateUniversity in 1983 and an MBA at University of California, LosAngeles in 1989.

2008 Supply Chain Leaders in Action Program:Presenter/Facilitator Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

Lever, Nabisco, Ecolab, Aramark, G&K, Kraft Foods to name afew. In other words, his work on sustainability combines a rig-orous, academic knowledge of business trends with a nutsand bolts understanding of how a company can best putthem into practice.

John Gagle, Manager of SustainablePractices – EH&S, Lexmark International,Inc.

John D. Gagel, BS, CIH - is Manager of Sustainable Practices -EH&S at Lexmark International, Inc. He has over 15 years ofexperience in the area of sustainability and the environment.Prior to his current position he acted as a consultant to manyFortune 500 companies on environmental, health and safetyissues.

Terry Gilbert, President, Roadway

As president of Roadway, Terrence M. Gilbert isresponsible for the direction and executive man-

agement of Roadway in the United States and Reimer ExpressLines, a wholly owned subsidiary of Roadway, in Canada. Bothcompanies are leading providers of domestic and global sup-ply chain services for North American businesses shippingindustrial, commercial, and retail goods. He was named presi-dent in January 2007.

From 2004 until 2007, Gilbert served as executive vice presi-dent–sales and marketing. In this position, he was responsiblefor functions aimed at growing revenues, yield, and marketshare for Roadway and Reimer Express Lines.

Gilbert joined Roadway in 1979 in Peoria, IL. He worked in avariety of sales and operations positions until 1985. Between1985 and 1990, Gilbert managed Roadway service centers inDanville, KY, and Akron, OH. In 1990, he was named to theposition of district manager, with assignments in Springfield,MO, Rock Island, IL, and Boston, MA. The Boston assignmentincluded responsibility for operations in eastern Canada. From1998 to 2004, Gilbert was vice president of the company’sEastern Division, responsible for the efficient operation of theRoadway network in the eastern United States.

Gilbert serves on the board of directors of Christina’s SmileChildren’s Dental Clinic, which provides charitable dental careto youngsters. Roadway transports the clinic, which travels intwo 48-foot trailers with the PGA TOUR and Champions Tour,at no charge. Gilbert holds a bachelor of business degree inbusiness administration from Western Illinois University.

Tom Goosmann, VP of Field Sales, Roadway

As vice president of field sales, Thomas B.Goosmann (Tom) is responsible for the field sales

organization and customer care. He was named to his currentposition in January of 2007.

Goosmann joined Roadway in 1985 at the Toledo, Ohio, ser-vice center. He held numerous operations and sales positionsin Ohio and Michigan prior to being named a regional salesmanager at the Detroit, Mich., and South Bend, Ind., servicecenters. Goosmann also served as corporate account execu-tive in Detroit, Mich.; director of business development inChicago, Ill.; and director of retail for Roadway based at thecorporate office in Akron, Ohio.

Goosmann holds a bachelor of science in business administra-tion with a marketing degree from Bowling Green StateUniversity. He has participated in executive education pro-grams at Case Western Reserve University and supply chainmanagement from Pennsylvania State University.

A member of National Shippers Strategic TransportationCouncil and the Council of Supply Chain ManagementProfessionals, Goosmann also serves on the executive board ofthe Varsity BG Club at Bowling Green State University.

Dr. George Haley, Ph.D., Professor ofMarketing, University of New Haven

George T. Haley (Ph. D. in Marketing, Universityof Texas at Austin) is a tenured Professor of Marketing at theUniversity of New Haven (UNH) where he teaches in graduateand executive programs. He is also the founding Director ofthe Center for International Industry Competitiveness (CIIC).The CIIC addresses the concerns of US small and medium-sized manufacturing companies in global environments andhas over 1200 associated member companies.

Dr. Haley is an expert on industrial and emerging markets,including the historical, cultural and legal environments inwhich business strategies are formulated. He focuses on B2Bmarketing, channels of distribution, supply-chain manage-ment, branding, new product development, strategic market-ing, technology management, Chinese, Latin American andAsian business, and managing intellectual property in emerg-ing markets.

An award-winning author, Dr. Haley has over 100 articles,books, book chapters, research reports and presentations.

He also consults with several multinational companies andgovernments in Asia, Australia, Latin America and the USA.

5958

and a keen understanding of the U.S. workforce and the issuesthat drive performance, Dean is a compelling and articulatespeaker. She has shared the findings and implications of theSpherion Emerging Workforce® Study with numerous busi-ness groups. Conducted by Harris Interactive on behalf ofSpherion and reflecting a decade of research, the Study pro-vides a comprehensive look at changes in the American work-force in the context of ongoing social and economic events.

Dr. Thomas DeCarlo, Professor ofMarketing & Industrial Distribution,University of Alabama at Birmingham

Thomas E. DeCarlo is the Ben S. Weil Endowed Chair ofIndustrial Distribution and Professor of Marketing andIndustrial Distribution at the University of Alabama atBirmingham. He was most recently on the faculty at IowaState University as Associate Professor. Dr. DeCarlo's primaryresearch interests deal with strategic issues in customer rela-tionship management, sales force management, and market-ing communications. Dr. DeCarlo's research has been pub-lished in outlets such as, The Global Logistics and SupplyChain Management Handbook, Journal of Marketing, Journalof Consumer Psychology, Journal of Personal Selling and SalesManagement, Industrial Marketing Management, Journal ofInternational Business Studies, among others.

He is co-author of Sales Management, a top-selling sales man-agement textbook. Dr. DeCarlo is also Director of UAB’sBusiness Analysis Laboratory. The Laboratory, staffed by UABfaculty and students, conducts research projects for companiessuch as O’Neal Steel, Alabama Power, Miller Heiman,Osram/Sylvania and others. Dr. DeCarlo has had professionalrelationships with a number of Fortune 500 organizations inareas of market analysis and customer segmentation, salesforce management, brand management, and new productdevelopment. He earned his Ph.D. from the University ofGeorgia.

Dr. Steve Derby, Ph.D., Professor,Rensselaer Polytechnic Institute

Dr. Derby received all of his degrees fromRensselaer Polytechnic Institute in Mechanical Engineering.The majority of his research over the last 25 years has been inrobotics and automation. His research for industrial companieshave included the designing of special purpose automationprocesses and work cells the design and construction of acomputer based modular robotic assembly cell, and the mate-rial handling of flexible materials. He has designed and builtnovel palletizing robots and high speed machines for materialhandling of mixed products. His current work includes theassembly of fuel cell stacks.

George Duggan, Vice President, DomesticIntermodal, BNSF

George Duggan was appointed to the position ofvice president, Domestic Intermodal, in November 2005. Inthis capacity, he is responsible for BNSF's Sales and Marketingactivities for the $2.5 billion Domestic Intermodal businessunit, including truckload, less-than-truckload, parcel, inter-modal marketing companies, and beneficial owners.

He began his career in the railroad industry with the Missouri-Kansas-Texas Railroad Company in 1978 in the managementtraining program. From there, he worked in various positionsand locations in the operating department, including train-master and terminal superintendent.

Duggan began working for the Burlington Northern RailroadCompany as a grain specialist in 1990. He then assumed roleswith increasing responsibilities in Equipment Management,Customer Service and Finance.

After Burlington Northern merged with Santa Fe in 1996,Duggan served in a variety of leadership roles in the FieldMarketing, Minerals and Chemicals business units. In 1998,Duggan was appointed vice president, Chemicals, then vicepresident sales, Industrial Products in March 2001.

Duggan received his Bachelor of Science in Economics fromthe University of Missouri – St. Louis. In 2004, he completedthe Harvard University Advanced Management Program.

Dr. Steven Dunn, Ph.D., Professor,University of Wisconsin at Oshkosh

A leader in the field of sustainability managementfor over fifteen years, Steve is the co-founder of ISO, Inc.(Innovative Strategies for Operations), a consulting firm spe-cializing in the ‘triple bottom line’ approach to accountabilityand strategy. He is also a co-founder of Ecolution, a not-for-profit that provides education and coursework in sustainabilityprinciples. His partner in both ventures is Paul Linzmeyer. Healso is Chair of the Supply Chain and OperationsManagement Department at the University of Wisconsin inOshkosh, which has an innovative program that requires acourse in sustainability.

Steve received his Ph.D. in business from The PennsylvaniaState University. He has an MBA from Boise State Universityand a BS in Zoology from California State University LongBeach. Dunn has worked overseas with the US Agency forInternational Development, where he developed a series on‘Greening the Supply Chain’, and the World ResourcesInstitute, where he participated in their Business EnvironmentLearning and Leadership program. He held various manageri-al positions at Labatt and HJ Heinz including plant manager.His consulting clients have included Con Agra, Hunt Wesson,

2008 Supply Chain Leaders in Action Program:Presenter/Facilitator Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

61

Manufacturing Scheduling and Global Supply ChainOptimization. She is currently assigned to an innovative LogisticsContinuous Improvement program that is transforming the wayThe Hershey Company manages their transportation freight.

Dr. Jezdimir Knezevic, Ph.D., Professor,MIRCE Akademy, UK

Dr. Knezevic, is a world class researcher, educatorand entrepreneur. Over 300 publications disseminated world-wide through books, papers, monographs and reports areattributed to his name. In addition, he has delivered numeroustechnical presentations, key note addresses and speeches; hasbeen congress, conference, symposium chairman, trackleader, workshop presenter, round table moderator on manyhundreds international events which took part in all six conti-nents in over 40 countries. He has been elected as a Fellow,Member or Official of many leading Professional Societies andInstitutions worldwide, and has been actively involved in edi-torial work with the world’s leading and prestigious referredjournals and publishing houses. Dr. Knezevic has received sev-eral international awards for his contribution to research andeducation in the field of Logistics Engineering including theprestigious Armitage Medal (1993) and Eccles Medal (1996)from the Society of Logistics Engineers in USA.

At Exeter University, encouraged by the excellent responsefrom industry to his research and educational activities, in1988 Dr. Knezevic established a self-financing Centre forManagement of Industrial Reliability, Cost and Effectiveness,MIRCE. Together with his colleagues, he has developed anddelivered over 100 vocational courses and 12 internationalsummer schools for practitioners from industry. Under hisleadership, the Centre has attracted over 3000 professionalengineers and managers and generated an income in excessof 3 million US dollars. In 1991, Dr. Knezevic developed andintroduced the first Master of Science Degree in LogisticsEngineering in the United Kingdom. This was followed by thefirst Master Programme in Reliability and MaintainabilityEngineering, in 1996, and finally, in 1997 the first MasterProgramme in System Operational Effectiveness. Throughthese programmes he has directed and supervised over 150postgraduate students, holding senior positions in leadingglobal giants including Lockheed Martin, Rolls Royce, BritishAerospace, Thomson Training & Simulation, GKN WestlandHelicopters, Short Brothers, Martin- Baker, RACAL, UnitedDefense, Kongsberg Defense, Alvis Vehicles (GKN Defence),EDS, Siemens Plessey, Lucas, Chelton Electro-Statics, Royal AirForce, NAMSA, South African Navy, Vickers, GEC Marconi,British Army, Yarrow Shipbuilders, Taiwan Air Force, RoyalNorwegian Air Force, University of Singapore, SentientSystems, Vickers Shipbuilding and Engineering.

In 1999 Dr. Knezevic formulated the concept of the Mirce-Mechanics©, science of the motion of failure phenomena

through the life of a machine. To fully focus on the furtherdevelopment, application, dissemination and recognition of theMirce-Mechanics©, he left Exeter University to establish theMIRCE Akademy, at the Woodbury Park, Exeter, UK. Under hisleadership, the Akademy has educated large number of profes-sional students coming from Industry, Government and MilitaryOrganisations world-wide. Over twenty of them completed thefull Mater Programme received internationally recognisedMaster Diploma. Over 100 professionals, from all continents,were recognised by the Akademy for their practical achieve-ments and awarded the Fellowship of the Akademy.

Dr. Knezevic regularly provides services to private and publicsector organisations regarding their short and long term relia-bility, logistics, maintenance, system engineering, cost andeffectiveness needs.

Dr. Knezevic holds Bachelor, Master and Doctoral degree fromthe University of Belgrade, Yugoslavia. He shares life withLynn, is passionate about motorsport, is challenged by rusty,but beautiful Lancia cars, and enjoys a thatched house in tran-quil Devon, England.

Jim LaBounty, 2008 Chair, SCLA ExecutiveCommittee

Jim LaBounty is a Logistician with over 40 yearsexperience in supply chain management. He retired as SeniorVice President and Director of Supply Chain Management forJCPenney in April 2008 where he was also the President of JCPLogistics LP, an operating subsidiary of JCPenney. For 4 yearsin those roles, Jim was responsible for providing strategic andoperational leadership for the supply chain activities surround-ing the movement of merchandise from suppliers to theJCPenney stores and catalog/internet customers. This includedoversight of a $1 billion pipeline operation comprising 33major distribution activities located in 21 facilities throughoutthe United States and supported by over 8,000 associates. Jimdirected necessary efforts to align and execute logisticsrequirements in conjunction with overall corporate strategies,plans, and programs.

Prior to joining JCPenney, Jim served over 28 years in the U.S.Army. His final assignments included leading a battalion in the2d Infantry Division, Korea; a tour as the Chief, CongressionalLiaison Office of the U.S. Army Material Command, Virginia;and four years as the Commander of the Defense DistributionRegion West, headquartered in California. Upon retirementfrom the Army, Jim became CEO/President of the United Wayof San Joaquin County, California. His corporate experiencealso has included Caterpillar Tractor Company, Electronic DataSystems (EDS), and Perot Systems.

Jim LaBounty holds a bachelors degree from Illinois StateUniversity and a M.B.A. in Logistics Management from theUniversity of Alabama. A certified Department of Defense

Session Abstracts

60

Dr. Omar Keith Helferich, Ph.D., Professor,Marketing & Logistics, Central MichiganUniversity

Dr. Helferich is a full-time faculty member for CMU where heteaches the capstone course for graduating logistics majors.The course requires each student team to complete a supplychain improvement project for an organization. The studentteams must utilize the following tools; project charter, statusreports, project planning software, process mapping software,six sigma tools, industry assessment surveys, milestone report-ing and all of the modules in the Microsoft Office Suite to pre-sent the recommendations.

Keith has over 30 years experience in logistics, materials, andsupply chain management as a consultant, practitioner,researcher and university instructor. As a supply chain man-agement consultant Keith has consulted on over 150 assign-ments in manufacturing, distribution, government and non-profit organizations.

Bob Hurley, Controller US Logistics, BayerHealthCare

Bob Hurley is Controller, Logistics, for BayerHealthCare’s US Consumer Care business. With brands likeGenuine Bayer Aspirin, Aleve, One-A-Day, Alka-Seltzer, Midol,Citracal, and Alka-Seltzer Plus, Bayer's Consumer Division isone of the world's leading OTC consumer healthcare compa-nies. In addition to Controllership duties across Logistics,Customer Service, Distribution, Transportation andeCommerce, Bob’s team has operating responsibility for TradeDeduction Management, Pricing and Promotion Admin,Reverse Logistics, Coupon Clearing Administration andInternal Control. Bob also leads Bayer’s Electronic ProductCode (EPC) and Radio Frequency Identification (RFID) effortsin the US consumer business and coordinates US Distributionand Logistics cost and strategy work across Bayer HealthCare’s4 divisions (Animal Health, Pharmaceuticals, Diabetes Careand Consumer).

The focus of Bob’s 20+ year career has been getting resultsacross functions at the intersection of Supply Chain and com-mercial operations. Before joining Bayer, Bob was a businessunit leader and manager in various Sales, Operations &Finance roles at Whirlpool Corporation, the world's largestmarketer of major household appliances. Prior to that, Bobheld various financial management roles, several in SupplyChain, during 8 years with Procter & Gamble. Before that,Bob had a brief stint as a newspaper reporter in Cincinnati,Ohio. He holds a BA in English from Kenyon College and aMBA from the University of Notre Dame. Born and raised inCincinnati, Bob and his family live in Granger, IN.

Dr. Robert Jacobs, Ph.D., Professor ofOperations Management, IndianaUniversity

Dr. Jacobs is the E-II Faculty Fellow and Professor of OperationsManagement at the Kelley School of Business, IndianaUniversity. He has degrees in Industrial Engineering,Computer and Information Science, an MBA, and a Ph.D. inOperations Management.

He is the author of over 50 research articles on topics, whichinclude inventory control, ERP systems, the design of manu-facturing facilities, cellular manufacturing and the schedulingof manufacturing operations.

He is co-author of three widely used Operations Managementtextbooks: Operations and Supply Management: The Core(2007), Operations Management for CompetitiveAdvantage11th edition (2005) and Manufacturing Planningand Control Systems for Supply Chain Management-5th edi-tion (2004).

Professor Jacobs has recently taught courses in Supply ChainManagement, Manufacturing Planning and Control for SupplyChain, and Business Process Design. Over his 20-years of pro-fessional experience, he has been a consultant to many com-panies

Professor Jacobs is a fellow of the Decision Sciences Instituteand past president of the Institute. He is also a member ofThe Association for Operations Management (APICS)Education and Research Foundation Board of Directors.

Rick Kallop, RFID Business DevelopmentManager, Lexmark International

Rick Kallop is currently the Lexmark RFID BusinessDevelopment Manager. Mr. Kallop has a BS and is RFID +Certified and has been working with the Lexmark RFID printerdevelopment team for the past 6 years. Since joining IBM in1973, Mr. Kallop has held various positions in his combined26 years experience with IBM and Lexmark in manufacturingand distribution operations. Mr. Kallop also did stint with PlayIt Again Sports and was instrumental in developing theirinventory bar code system.

Melanie Keller, Senior Operations ProjectLeader, The Hershey Company

Melanie Keller has been with The HersheyCompany for over 10 years, serving in a variety of supplychain roles. Her experience spans Customer Service, VMI,Transportation Planning, Distribution, Logistics Strategy,Materials Requirements Planning,

2008 Supply Chain Leaders in Action Program:Presenter/Facilitator Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

63

Supply Chain S&OP process, deploying lean six sigma andoverseeing the Project Management Office.

While at Staples, Mr. Marous held a variety of positions includ-ing VP General Merchandising Manager, VP of InventoryManagement and Director of Logistics’ Planning andEngineering. Prior to Staples, Mr. Marous spent 5 years in theFinancial Development program at Proctor & Gamble.

Mr. Marous holds a MBA from Harvard University and a BS inFinance from Miami University, Oxford Ohio. He has been aguest lecturer at Harvard, Wharton and the University ofChicago’s Graduate School of Business. Mr. Marous is a mem-ber of the Council of Supply Chain Management Professionals,the Supply Chain Executive Board and the DistributionBusiness Management Association.

Mike McBreen, VP, Supply Chain &Logistics, Furniture Brands International

Michael McBreen has over 20 years of experiencein Supply Chain Management. His career path has spanned thepetrochemical industry, management consulting, sporting goods(footwear, apparel, and equipment), and home furnishings.

In his current role, Vice President of Supply Chain andLogistics for Furniture Brands International, he leads teamsthat are responsible for product development, planning,sourcing, domestic manufacturing, and distribution/logistics.These teams operate as a Supply Chain Center of Excellence insupport of ten great home furnishing brands: Drexel Heritage,Thomasville, Broyhill, Lane, Henredon, Hickory Chair, Person,Laneventure, and Maitland-Smith.

Prior to joining Furniture Brands, Michael was Director ofGlobal Apparel Operations at Nike, and prior to that he servedas a Director in PricewaterhouseCoopers’ ManagementConsulting Practice. He began his career as a ManufacturingEngineer at Exxon Chemical.

Chris McCurdy, VP of Transportation,PetSmart

Chris McCurdy joined PetSmart in November of2006 and is currently the Vice President of Transportation. Hisresponsibilities include the movement of all foreign anddomestically sourced goods into their DC's, the outboundtransport of merchandise to all 1100 PetSmart stores as well asthe Customer Service function supporting the Supply Chain.Prior to joining PetSmart, Mr. McCurdy spent 10 years withGap, Inc, holding several positions in their North AmericanSupply Chain group. Before Gap, Mr. McCurdy worked forAndersen Windows as a Logistics Engineer, developing andbuilding their Service Parts Distribution network.

Dan McNichol, Author

Dan McNichol is a number one best sellingauthor and nationally recognized expert on

mega construction projects. He is the author of five bookson construction. In 2008, the University of PennsylvaniaPress will release Dan’s work in a book titled, A Legacy ofLeadership: Governors and American History, in which theroles of governors in the building of the U.S. InterstateSystem are revealed.

In 2008, McNichol was awarded the Robert F. BogerAward, a prestigious journalism award, for his work on cov-ering the collapse of the I-35W bridge into the MississippiRiver one year ago. Earlier, the American Society of CivilEngineers Boston Chapter recognized Dan as the journalistof the year for his work chronicling The Big Dig. Dan haswritten for the New York Times, the Boston Globe andRoads & Bridges magazine. He has been featured in USAToday, ABC World News Tonight, The Jim Lehrer NewsHour, CNN, MSNBC, Fox News and numerous NationalPublic Radio broadcasts.

This year Dan is being featured in a new HistoryChannel/Modern Marvels program called, Superhighways.Over the past several years Dan has been traveling with theHistory Channel’s production crews and been featured asan on-air historian for Modern Marvels. Two of his books,The Big Dig and Roads That Built America, have been thebasis for television shows on the Discovery Channel andthe History Channel.

Upon completion of The Roads That Built America, Danpurchased a 1951 Hudson traveling 24,000 miles ofAmerica’s Interstate System in what was heralded as TheGreat American Road Trip. Joining him across the countrywas the great grandson of President Dwight D. Eisenhower.

McNichol served The White House at the United StatesDepartment of Transportation, helping carry out thePresident’s policies. In 1992, he worked under SecretaryAndrew H. Card, whom Dan served while he was theCommander in Chief of the Hurricane Andrew relief effort.While on official duty he witnessed the Interstate System’srole in getting Floridians back on their feet. He also servedtwo governors while working on the largest, most complexcivil engineering project in modern history: The Big Dig.

62

Program/Project Manager, Jim is also a graduate of the Army’sCommand and General Staff College and the IndustrialCollege of the Armed Forces.

Jim is currently serving as the 2008 Chairman of the ExecutiveCommittee of Supply Chain Leaders in Action.

Marie Lacertosa, SVP & Director of SupplyChain Management, JCPenney

Marie Lacertosa is Senior Vice President andDirector of Supply Chain Management, and President of JCPLogistics LP, an operating subsidiary of the Company. Marie isresponsible for providing strategic and operational leadershipfor supply chain activities surrounding the movement of mer-chandise from suppliers to JCPenney stores and Direct cus-tomers. This includes distribution activities in 21 facilitiesthroughout the United States, supported by over 8,000Associates. Marie joined JCPenney in 1981 and has held aseries of positions of increasing responsibility, primarily in theLogistics organization. In 2004, she was appointed VP,Director of Supply Chain Operations and Engineering.

Glenn Lancaster, Central Area Director ofProduct Supply, Chiquita Brands NA

Glenn Lancaster is the Central Area Director ofProduct Supply for Chiquita Brands NA. He has over 22 yearsof experience working in various Supply Chain positions acrossseveral Fortune 500 Food Companies. Glenn graduated fromJames Madison University where he earned a BachelorsDegree in Business Administration with a concentration inAccounting. Glenn began his career at Kraft Foods where heheld positions in Sales, Customer Service, Product Supply,Distribution, Transportation and Customer Logistics. He spent3 years working for ConAgra Foods as the East Area CustomerSupply Chain Director. In the past 2 years Glenn worked forFresh Express and Chiquita and helped the company drivestrategic Supply Chain Initiatives with their key retail cus-tomers. Glenn currently resides in Charlotte, NC where helives with his wonderful wife and four kids.

Michelle Livingstone, VP, Transportation,The Home Depot

Michelle D. Livingstone is Vice President –Transportation for The Home Depot. She leads a highly tal-ented team that oversees the movement of shipments intoand within The Home Depot‘s multi-channel supply chain,including inbound shipments from domestic vendors, alldirect imports, and customer deliveries of appliances and storemerchandise.

Michelle joined the Company in October 2007 with more

than 25 years of transportation supply chain experience. Priorto joining The Home Depot, she served as the senior vicepresident of transportation for C & S Wholesale Grocers,where she led the transportation function which supported 70distribution centers throughout the United States.

Michelle gained much of her retail and dot com experience atJCPenney, where she served as the vice president of trans-portation for four years. Prior to JCPenney, Michelle served asthe senior director of transportation and supply chain for KraftFoods North America. While at Kraft Foods, Michelle wasactively involved with the Food Shippers of America (FSA), anorganization dedicated to improving supply chain efficiency inthe grocery industry. She served as a director on the boardfrom 1990 – 2001 and was elected to serve as president ofFSA for two terms.

Michelle earned her M.B.A. with high honors from Lake ForestGraduate School of Management. She holds a B. S. degree inBusiness, with a concentration in transportation, from IndianaUniversity, Bloomington, Indiana.

Dr. Rhonda Lummus Ph.D., Assoc.Professor of Operations & Supply ChainManagement, Iowa State University

Rhonda is an associate professor of operations and supplychain management at Iowa State University and President ofthe APICS Educational & Research Foundation Board ofDirectors. She earned a B.S. in marketing from BradleyUniversity, a Ph.D. in operations management from theUniversity of Iowa, and spent fifteen years working in industryin various materials management positions.

Rhonda has been conducting research on supply chain man-agement for several years, writing articles on supply chainstrategy, supply chain flexibility and the impact of demandmanagement strategies on the supply chain. She has pub-lished articles in Supply Chain Management Review, Journal ofOperations Management, Production and InventoryManagement Journal, among others.

Daniel Marous, VP, North AmericanDelivery Summit Supply Chain Programs,Staples, Inc.

Mr. Marous is Vice President, North American Delivery (NAD)Summit Supply Chain Programs for Staples, the world’s largestoffice products company and is based in the firm’s headquar-ters in Framingham, MA. Staples conducts retail and B2Boperations in 22 countries in North and South America,Europe and Asia.

Mr. Marous’s areas of responsibility include leading Staples’NAD Summit Supply Chain strategy effort, managing the

2008 Supply Chain Leaders in Action Program:Presenter/Facilitator Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

65

Ms. Oberg has also provided programming input to theBritish Broadcasting Company (BBC) on life in the futureafter an ecological disaster and the future of marriage. Inaddition, she has lead special projects for NASA related tothe design of an interplanetary communications system, thefuture design of operations aboard the International SpaceStation, and the future of Mission Control; and providedinput to DARPA regarding future designs for submarines. Ms.Oberg was the creator and writer of the Boston radio pro-gram Speaking of the Future; and has also served in aresearch/editorial capacity for the United Nations MillennialProject publication, State of the Future 2003. Currently, sheis a one of 100 experts from around the world chosen toparticipate in the George Washington University emergingtechnologies project, TechCast and was also chose to partici-pate in Lifeboat, a think tank focusing on the future ofhumanity.

Ms. Oberg holds a Masters degree in Studies of the Future; aBachelors degree in Communications; and has completedthe Program for Managers at Rice University’s JonesGraduate School of Management.

Ms. Oberg has served on national and local steering com-mittees and boards for the World Future Society and theSociety of Competitive Intelligence Professionals and as co-chair of the Boston chapter of Women in Networking. She iscurrently a member of the World Future Society, Associationof Professional Futurists, and World Affairs Council.

Paul Orrico, Director of Fuel ProductDevelopment, Ryder Energy DistributionCorp.

Paul Orrico is Director of Fuel Product Development forRyder Energy Distribution Corporation (REDCO), an operat-ing entity of Ryder System, Inc., located in Miami, Florida.

Mr. Orrico has been with Ryder for 35 years in various fieldlocations on the East coast and at the Headquarters inMiami. He has been in the petroleum purchasing field for30 years. REDCO is a petroleum products distributor withan annual volume of 400 million gallons. REDCO providestheir products to all divisions and customers of RyderSystem, Inc.

Mr. Orrico’s responsibilities include all price related activitiespertaining to fuel, lube oil, and the management of thetransportation companies that haul the products to Ryder’sfield locations. He also works with oil company suppliers intracking contract volume, prices, and setting up new termi-nals. His daily activities include the management of 2,500price changes, products supply and distribution at 170cities, and consultative sales assistance to the various mar-keting groups in Ryder.

Mr. Orrico began his career at Ryder in the daily rentaloperations in 1973 in Massachusetts. He has worked withREDCO for the past 30 years at the field level and came toheadquarters in 1991 to supervise Ryder’s corporate ener-gy strategy. He is a graduate of Nova SoutheasternUniversity in Davie, FL with a bachelor of science degree in management.

Sue Pellechio, Vice President CarrierManagement, Staples, Inc.

Susan joined Staples in 1991 and has held vari-ous management positions across multiple disciplines with-in the Company, including; Finance, Capital GoodsProduct Marketing, Contract Sales, Wholesaler Programs,and Carrier Management. These distinct responsibilitieshave afforded Susan with a comprehensive knowledge ofStaples Business and Supply Chain.

Prior to Staples, Susan worked in high tech manufacturingfor LTX Corporation and led financial planning efforts forboth Sales and Customer Support.

She attended New Hampshire College where she earned aBS in Accounting. She is an active member of bothCSCMP and SHRM (Society for Human ResourceManagement).

Tom Perdue, EVP & COO, NYK Logistics(Americas)

Tom Perdue is Executive Vice President andChief Operating Officer of NYK Logistics (Americas), awholly owned subsidiary of NYK Group. Since the compa-ny’s founding in 2003, he has led the company’s strategydevelopment and execution including, the mergers ofseven independent subsidiaries and two acquisitions into aglobal logistics services company with annual revenue ofapproximately two billion dollars. During the three years ofintegration, revenue has nearly doubled and EBITDA hasincreased by more than five times. Tom is a member of theBoard of Directors of both NYK Logistics (Americas) andNYK Group.

Prior to NYK, Tom served in key leadership positions at C HRobinson, the Burlington Northern Railroad, and Conrail.He has also been active in the industry serving on theboard of directors of the Intermodal Association of NorthAmerica (IANA), and was also a member of the AmericanTrucking Associations’ Executive Policy Committee. Heserved on the Eno Transportation Foundation’s board-of-directors.

Tom and his family reside in the Los Angeles area.

64

Dr. David Menachof, Ph.D., SeniorLecturer in International Logistics &Distribution, City University, London

David Menachof is Senior Lecturer in International Logisticsand Distribution and Director of the MSc in Logistics, Tradeand Finance degree at City University’s Cass Business School inLondon, England. Dr. Menachof received his doctorate fromthe University of Tennessee, and was the recipient of theCouncil of Logistics Management's Doctoral DissertationAward in 1993. He has previously taught at the University ofCharleston, South Carolina, and the University of Plymouth,England. In addition, he is a Fulbright Scholar, having spentan academic year in Odessa, Ukraine as part of the grant andis currently on the roster of the Fulbright Senior SpecialistCandidates list, as an expert in Logistics and Distribution.Most recently, Dr. Menachof was one of the recipients of a£500,000 research grant on Cargo Screening sponsored bythe UK’s Engineering and Physical Sciences Research Council.Dr. Menachof’s work has been published and presented injournals and conference around the world. His currentresearch interests include supply chain security and risk, globalsupply chain issues, liner shipping and containerisation, andfinancial techniques applicable to logistics

Anne Miller, Supply Chain Talent Manager,Kimberly-Clark

Anne Miller is Supply Chain Talent Manager forKimberly-Clark Corporation. Her role includes strategy devel-opment for training, recruiting and career development serv-ing approximately 1000 Supply Chain team members. Shechairs the succession planning teams for the first two of threetiers of the Supply Chain organization.

Anne’s team recently identified functional competencies and iscurrently aligning training to those functional/technical skills.She serves in an advisory capacity to the corporate TalentAcquisition and Organizational Development teams

In a prior assignment, she was part of the Corporate TalentManagement organization as a Consultant in the corporateLearning and Development group. With this team, she is sup-ported global, enterprise-wide projects and developed trainingofferings to build overall performance capability.

With a Bachelor’s degree in Industrial Technology fromUniversity of Wisconsin – Stout, she began at Kimberly-Clark asa Packaging Engineer and advanced in responsibilities assumedsupporting all of Kimberly-Clark’s consumer businesses.

Deb Miller, Director of Manufacturing &Retail Strategy, SoftwareAG

Deb Miller is Director of Manufacturing & RetailStrategy at Software AG. She is a member of the GlobalIndustry Solutions team, focused on the supply chain. Hercareer includes more than 20 years of global industry experi-ence with GE. Since 2002, she has been a study group contrib-utor to the President's National Infrastructure Advisory Council.Ms. Miller is a Phi Beta Kappa graduate of Syracuse Universitywith a degree in Mathematics and a dual Masters in Educationand Mathematics. She has attended GE's ManagementDevelopment Institute and is a Six Sigma Green Belt.

Jim Moore, Vice President, Ryder SupplyChain Solutions

Jim Moore is responsible for sales and businessdevelopment for Ryder’s Corporate Supply Chain Solutionsaccounts spanning global vertical markets in Automotive,Aerospace, High Tech, Telecom, Industrials, ConsumerProducts and Retail. Ryder is a leading supply chain servicesfirm, designing, procuring and managing transportation net-works of more than 14 million shipments in excess of $5.5 bil-lion and distribution centers summing to more than 27 millionsquare feet. Mr. Moore has more than 25 years experienceincluding Accenture, US Freightways and LeasewayTransportation.

He has experience in supply chain consulting, operations andsales spanning Europe, North America and Asia. He has an MSin applied mathematics from the University of Akron, a USpatent for trailer design and is co-inventor of Ryder’s LogisticsRelease process and technology that is the leading materialflow management application provided by logistics serviceprovides. He is the author of “The Internet Weather”, pub-lished by John Wiley, 2002.

Mr. Moore has been a frequent speaker on supply chain issuesand has been a member of CLM and CSCMP since 1985.

Amy Oberg, Futurist, Kimberly-Clark

Amy Oberg is a futurist and strategist who spe-cializes in helping organizations better under-

stand the emerging competitive environment and respondwith effective, proactive strategies. With over 25 years ofcumulative experience in competitive, management, andmarket analyses, her insights regarding emerging trends,threats and opportunities, market conditions, and technolo-gy disruptions have been sought out by organizations in awide variety of industries including aerospace, energy,telecommunications, transportation, consumer goods,bio/pharma, real estate and finance. She is now on staff atKimberly Clark Corporation.

2008 Supply Chain Leaders in Action Program:Presenter/Facilitator Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

67

complex value based arrangements, start up and early stageinitiatives, and implemented global transactions that involvemovements of capital, assets, and human resources. He hasbeen recognized by industry leaders an expert in supply chainsolutions, business development, process improvement andasset management. He is frequently requested as a round-table participant and speaker at major industry events.

Kent Prokop, President, Warehousing &Distribution Group, Pacer

Kent Prokop, a 30-year veteran of the freightlogistics and transportation industry, became the President ofPacer Warehousing and Distribution, in April 2004. The unit isbased in South Gate, California, a suburb of Los Angeles. Mr.Prokop had served as Vice President of Pacer Cartage since1999. From 1996-99, he was General Manager of InterstateConsolidation, Inc., a Pacer predecessor company. Prior tojoining Interstate and Pacer, Mr. Prokop served in key market-ing and operations posts for both ABF and Roadway Express.He holds a B.A. degree from Lambuth University in Jackson,Tennessee.

Dr. Elliot Rabinovich, Ph.D., AssistantProfessor of Supply Chain Management,Arizona State UniversityElliot Rabinovich is an Assistant Professor ofSupply Chain Management in the W. P. Carey

School of Business, Arizona State University. He received hisPh.D. in Logistics and Supply Chain Management from theRobert H. Smith School of Business, University of Maryland in2001. His Ph.D. dissertation, entitled “Supply ChainManagement and the Internet: Transaction and ProductDistribution Efficiencies” received the 2001 NationalAssociation of Purchasing Management (NAPM) DoctoralDissertation Award and was funded by the National ScienceFoundation under grant DMI9908137. He is also a recipient ofthe Smith School of Business’ 2001 Paine Doctoral Award forAcademic Achievement and the 1999 Krowe Award forTeaching Innovation.

Professor Rabinovich’s research concentrates on studyingmechanisms through which Internet-based purchases by con-sumers affect supply chain management performance, in theareas of transaction costs and product distribution service.Further, his research examines implementation decisionsregarding enterprise-wide information and manufacturingtechnologies and their relation to inventory managementpractices and performance.

Dr. Rabinovich’s research has been published or is forthcomingin several books and in Decision Sciences, Journal ofOperations Management, Journal of Business Logistics,Transportation Research (E): Logistics and TransportationReview, International Journal of Logistics Management, and

International Journal of Physical Distribution and LogisticsManagement. He has also presented his research at theCouncil of Logistics Management Conference, INFORMS, theDecision Sciences Institute’s Annual Meeting, and theProduction and Operation Management Society’s AnnualConference.

His academic work has involved organizations such as CAPSLogistics, the Data Interchange Standard Association (DISA),Honeywell, Hughes Network Systems, Ingram, R.R. Donnelley,United Parcel Services (UPS), and various Internet retailingorganizations, including Baker & Taylor, Amazon.com,Bizmetric.com, Ebags.com, comScore Networks,Cooking.com, REI.com, and Swiss Colony. He has undergradu-ate teaching experience in the areas of business logistics,applied computer models in supply chain management, andstrategic supply chain management. At the MBA level, he hasdirected and advised students working on their applied supplychain management projects. He also teaches a doctoral semi-nar in Logistics Management, as part of ASU’s Supply ChainManagement program.

Dr. Rabinovich serves as an associate editor for the Journal ofOperations Management and as a reviewer for DecisionSciences, the Journal of Business Logistics, TransportationResearch (E): Logistics and Transportation Review, and theInternational Journal of Integrated Supply Management. Hisprofessional affiliations include: the Council of LogisticsManagement, the Production and Operations ManagementSociety, the Institute for Operations Research andManagement Science, and the Decision Sciences Institute

Donald Ralph, SVP of Logistics, Staples, Inc.

Mr. Ralph is Senior Vice President of Logistics forStaples, the world’s largest office products company and isbased in the firm’s headquarters in Framingham, MA. Staplesconducts retail and B2B operations in 22 countries in Northand South America, Europe and Asia.

Mr. Ralph’s areas of responsibility include overseeing Staples’Fulfillment, Transportation, Inventory Management andInternational Logistics operations, as well as, its Planning &Engineering, Logistics Strategy, Project Management,Wholesaler and Merchandise Operations functions. Stapleslogistics network currently comprises over 14 million squarefeet of infrastructure.

At Staples, Mr. Ralph has restructured both the Delivery andRetail logistics networks and developed a supply chain teamthat many consider best in the office products industry.

Prior to joining Staples, Mr. Ralph developed an extensive sup-ply chain and operating background while spending 27 yearsin the Department Store business, sixteen (16) with FederatedDepartment Stores and eleven (11) with The May Department

66

Jim Pleiman, VP of Consumer HealthcareLogistics, Schering-Plough

Jim Pleiman joined Schering-Plough in 1988 as aManager, Finance. He has had various positions with increas-ing responsibility in Planning/Financial Analysis, CustomerService, and Distribution. In September 1998 he was promot-ed to his current position of Vice President Logistics, responsi-ble for CHC Supply Chain activities which include DemandPlanning, Supply Planning, Distribution, Transportation,Customer Logistics, Customer Service, and BusinessTechnology. Prior to joining Schering-Plough, Mr. Pleimanworked for nine years at S.C. Johnson (Johnson Wax). He is agraduate of Indiana University and is headquartered inMemphis, Tennessee.

Mr. Pleiman currently serves on the National Association ofChain Drug Stores (NACDS) Logistics Steering Committee andis Chairman of the Consumer Healthcare Products Association(CHPA) Logistics Steering Committee. He is also a BoardMember for the West Tennessee Chapter of the JuvenileDiabetes Research Foundation.

Dr. Terry Pohlen, Ph.D., Associate Professorof Logistics, University of North Texas

Terrance L. Pohlen is currently an associate profes-sor of logistics and the director, Center for Logistics Educationand Research (CLER) at the University of North Texas. Prior toaccepting his faculty position, he completed twenty years ofmilitary service in logistics management with the U.S. AirForce. In his last position in the Air Force, Dr. Pohlen was thedeputy comptroller for the Defense Supply Center, Columbusmanaging an annual budget exceeding $1.8 billion, affectingover 1.8 million items, and controlling the activities performedby over 2,500 personnel.

Dr. Pohlen's research interests include the application of activi-ty-based costing to logistics, supply chain metrics, the distribu-tion and processing of recycled material, inventory manage-ment, forecasting and logistics planning. His dissertationresearch specifically examined the effect of activity-based cost-ing on logistics decision-making. The research examinedapplications in nine major corporations and two defense distri-bution centers with annual sales ranging from $800 million to$2.5 billion. The results provide insights into how firmsshould implement an ABC system, the considerations requiredfor determining customer and supply channel profitability, andthe development of activity-based management.

His current research focuses on supply chain costing. Theresearch began in July 2007 and will be completed in late-summer/early fall of 2008.

He received a Bachelor of Science in Marketing from

Moorhead State University in 1979, a Masters of Science inLogistics Management from the Air Force Institute ofTechnology in 1983 (Distinguished Graduate), and a Master ofArts in 1992 and a Doctorate in Business Administration in1993 from The Ohio State University. He has authored manylogistics related articles. He authored a white paper on supplychain metrics and his articles have been quoted in all of themajor logistics textbooks and periodicals.

Steve Poplawski, SVP, Logistics & SupplyChain, True Value

As Sr. VP – Logistics & Supply Chain, Steve isresponsible for leading True Value’s planning, replenishment,and logistics operations, including a network of 12 warehous-es nationally and more than $1.5 billion in merchandise annu-ally. Prior to joining True Value in 2007, Steve held senior-levelleadership positions at Sears Roebuck & Co., SterlingCommerce, and Manugistics.

As Vice President of Merchant Operations, he was responsiblefor the design and implementation of supply chain systemsthat allowed merchandise to be sold and distributed acrossdisparate Sears and Kmart networks only weeks after one ofthe largest mergers in retail history. As Vice President ofPlanning and Placement, Poplawski led a team that drove thesingle largest turnover improvement in Sears’ history whileimproving in-stock. He was directly accountable for more than$3.5 billion in inventory assets. In his role as Vice President ofDirect Delivery, Poplawski was directly accountable for theSears national distribution and delivery network, which sup-ports more than 5 million home deliveries annually.

David Proctor, SVP, Supply Chain Solutions,NYK

David is one of the very few true supply chainleaders at NYK. His understanding of customer value proposi-tions and the linkage to pricing and yield improvement isuniquely strong.

David is a senior executive with diverse and progressivelyresponsible global supply chain and business developmentexpertise designing selling and managing complex logisticssolutions. David has built and managed global sales and solu-tions terms that have delivered annuity-based offering involv-ing business development strategy, enterprise asset manage-ment, and supply chain eCommerce strategy. He has demon-strated expertise in developing and managing global clientrelations, deploying multi-national business developmentteams, increasing productivity through six sigma businessprocess improvement initiatives, and executing activities thatproduced enhanced profitability.

David has led the global development and deployment of

2008 Supply Chain Leaders in Action Program:Presenter Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

69

Tom Shepherd, VP of Transportation,Chiquita Express

Tom Shepherd is the Vice President ofTransportation for Chiquita Express He oversees the executionof all North American transportation for Chiquita and FreshExpress brands. Tom’s experience includes a key leadershiprole in the logistics development supporting the growth ofFresh Express as the nation’s premier packaged salad compa-ny. More recently, he has helped lead the successful NorthAmerican integration of transportation within the Chiquitanetwork. He has been associated with Fresh Express andChiquita for the past twenty years. Tom received his degree inTransportation Management from the University of Colorado.He and his wife and family reside in Salinas, California.

Jerry A. Smith, Director, Operations Science& Analytics, Baxter Healthcare Corporation

Jerry Smith is the Director of Operations Scienceand Analytics for Baxter Healthcare’s Global Supply Chain.Since joining Baxter in 1983 he has held diverse managementpositions within purchasing, logistics, production planningand inventory control, project management, demand plan-ning, and sales operations. In 2001 Jerry transformed thebusiness forecasting processes within one of Baxter’s U.S. divi-sions into a functional benchmark. He re-joined the GlobalSupply Chain organization in 2006 to affect those samechanges on Baxter’s demand planning processes globally. In2007 his role was expanded to include the supply planningand inventory management disciplines. He currently leads ateam of professionals responsible for defining and optimizingdemand, supply, and inventory operational processes and sys-tems across Baxter’s global supply chain.

Jerry holds a Bachelor of Arts from DePaul University; he andhis family reside in Northern Illinois.

Kevin Smith, SVP of Supply Chain &Logistics, CVS/pharmacy

Kevin Smith is Senior Vice President of SupplyChain & Logistics for CVS/pharmacy, the retail arm of CVSCaremark and Americans #1 pharmacy, generating over $50Bin revenue and dispensing prescriptions in over 6300 stores in43 states. For eight years, Kevin’s role at CVS has been tofacilitate changes in the overall Supply Chain and create ahighly responsive end-to-end fulfillment process for the drugclass of trade. This has become increasingly important as CVSexpands rapidly throughout the United States.

Prior to joining CVS, Kevin, a University of Massachusettsgraduate, who describes himself as a “recovering supplier”,spent nearly 27 years in the CPG food manufacturing arena;most notably as Vice President of Logistics and Customer

Support at H.J. Heinz; and at Kraft Foods where he heldnumerous positions, including Director of Network Designand Implementation.

Kevin has been a longtime member and contributor to theCouncil of Supply Chain Management Professionals (CSCMP),and the Retail Industry Leaders Association (RILA). He is cur-rently a member of the Board of Directors for Agentrics, aninternational retail consortium based in Alexandria, VA. He ison the Board of Directors for the American Red Cross ofRhode Island. Kevin is also a member of the Executive Boardfor the University of Rhode Island Transportation Center, and ispast Chairman of the Supply Chain & Logistics Committee ofthe National Association of Chain Drug Stores (NACDS).

Additionally, Kevin is the past Industry co-chair of theDistribution Business Management Association (DBMA) SupplyChain Leaders in Action program.

Kevin and his wife Janet live in North Kingstown, RI.

Dr. Alex Sommers, Ph.D., Professor of Industrial Engineering,University of New Haven

Currently a Professor of Industrial Engineering at the Universityof New Haven, Dr. Sommers is also Coordinator of theLogistics Certificate program. He is a past president of theConnecticut Association of Purchasing Management, and aformer president of a die casting foundry in New Haven. Withthis extensive experience, he is a consultant and presenter onsupply chain management issues and solutions, and theauthor of many publications. He holds degrees from Cornelland Rutgers, and the doctorate from Purdue University.

Dr. Charles R. Sox, Ph.D. Professor &Director of Operations Management, The University of Alabama

Dr. Charles R. Sox is Professor and Director of OperationsManagement and holds the University Chair of ManufacturingManagement at The University of Alabama. He completed hisPh.D. degree at Cornell University in the School of OperationsResearch and Industrial Engineering in 1992, where he alsoearned an M.S. degree in 1991. He graduated summa cumlaude with a B.S. degree in mathematics from FurmanUniversity in 1988. He taught industrial & systems engineeringat Auburn University from 1992 until 2002 when he moved tothe College of Commerce & Business Administration at TheUniversity of Alabama. His current areas of research and teach-ing are in supply chain management, planning and scheduling,inventory control, and logistics. His papers have appeared inManagement Science, IIE Transactions, Operations ResearchLetters, and the International Journal of Production Economics.His research has been supported by two grants from the

68

Stores Company. His positions included Vice President ofLogistics and Senior Vice President of Operations.

Mr. Ralph is a member of the Council of Supply ChainManagement Professionals, the Supply Chain Executive Boardand a Vice-Chairman of the Distribution BusinessManagement Association. He currently serves onNortheastern University’s Board of Visitors for The College ofBusiness Administration and its Supply Chain Advisory Board.He is a former Director of Filene’s Federal Credit Union andthe Massachusetts Bay Community College Foundation. Mr.Ralph holds a BLS in Economics from Boston University. Hehas been a guest lecturer at Dartmouth’s Amos Tuck School ofBusiness, Boston University and Northeastern University.

Jeff Regan, VP, Materials Management,Watson Pharmaceutical

Jeff Regan is Vice President, Materials Managementfor Watson Pharmaceuticals, a leading specialty pharmaceuticalcompany founded in 1984. Ranked third in the U.S. genericpharmaceutical marketplace in terms of number of prescriptionsdispensed, approximately 75% of Watson revenue is comprisedof generic product sales and 25% from brand product sales.

Jeff is responsible for providing Senior Supply ChainManagement leadership at Watson, including managing theCorporate Sales and Operations Planning process across amulti-plant Production and Materials Management network,with direct responsibility for Outsourced Products, StrategicMaterial Sourcing and Direct Procurement.

He has over 25 years of Supply Chain Management experiencein the Brand and Generic Pharmaceutical Industry, includingleadership positions in Production Planning, Warehousing,Distribution, New Product Planning, Project Management,Import/Export Operations and Production Operations. He is agraduate of Drew University in Madison, New Jersey.

John Rutherford, VP, GlobalTransportation, DFS

John Rutherford has a business operations, logis-tics, retail marketing and work-related teaching career thatspans over four decades. Entering retailing in the early days ofdiscount mass marketing, John has experienced the evolutionof mass and specialty retailing and logistics in the UnitedStates, Canada, Mexico, Australia, Asia and Europe.

Conducting marketing, sourcing, logistics teaching, and logis-tics and operations projects globally, while living in the U.S.,China, and Mexico, has given John a broad perspective inbusiness operations management worldwide.

During the past 15 years, he has focused on logistics businessprocess improvement and waste recovery, developing andteaching techniques following the work of Dr. Deming, the

guidelines of the Malcolm Baldrige award, ISO and QS 9000in the auto industry and Motorola, as well as the six sigmaquality program deployed by the General Electric Corporation.

After 32 years with the Kmart Corporation, John has JoinedDFS Group Limited in 1999 in Logistics. In this capacity hehas the responsibility to develop and direct global logistics forDFS and its vendor-partners.

Richard A. (Rick) Schart, Vice President,Director of Transportation, JCPenney

Rick is currently Vice-President, Director ofTransportation for the JCPenney Company based in PlanoTexas. In this position Rick is responsible for all global trans-portation activities for JCPenney.

The mission of his Transportation group is to insure the timely,cost-effective movement of all merchandise and non-resaleproducts from international and domestic manufacturingsources to JCPenney stores and fulfillment centers – and ulti-mately to customer homes for the Direct side of the business.He has 50 managers in his organization and controls an annu-al budget exceeding $850 million.

Rick started his career with JCPenney in 1974 in ColumbusOhio. During his 33 years with JCPenney, Rick has held a num-ber of assignments of increasing responsibility in the LogisticsDivision. He was assigned to his current position in Novemberof 2005. He was previously VP, Director of Supply ChainPlanning and Engineering. Rick received his Bachelor of Sciencedegree in Business Administration in1974 from The Ohio StateUniversity with a major in Transportation & Logistics.

Rick currently serves as President of the Mail Order Associationof America and is a board member of VICS [VoluntaryInterindustry Commerce Solutions] and the University ofTexas, Dallas Center for Supply Chain Excellence.

Rick is married with two grown sons and a five year oldgrandson. For the last few years he has enjoyed spending hisSaturday’s building houses for Habitat for Humanity.

Gerry Shaw, HR Manager, DuPont Sourcing& LogisticsScope of Responsibility: Sourcing & LogisticsHuman Resource Leadership

Gerry earned her Bachelors degree in Human Resources andstarted her career with DuPont in 1979. In 1995, she earnedher Masters of Business Administration from West ChesterUniversity, West Chester, Pennsylvania.

During 29 years of DuPont service, Gerry has held positions incustomer service, inside sales, information systems, supplychain, and human resources. Her experience on the businessside focused on packaging and industrial products. In 1992,she shifted her career to Human Resources, moving intoDuPont Sourcing & Logistics in 2003.

2008 Supply Chain Leaders in Action Program:Presenter Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

Tom Vandenbush, VP & Director of SupplyChain Support, JCPenney

Tom Vandenbush is Vice President and Director ofSupply Chain Support for JCPenney. Tom is responsible forproviding strategic and operational leadership for the supplychain logistics activities supporting the movement of mer-chandise from suppliers to the JCPenney stores andcatalog/internet customers. This includes oversight of the sup-plier collaboration program and merchandising logistics.

Tom, a native of Green Bay Wisconsin, is a B.B.A. graduate ofSt, Norbert College, De Pere, Wisconsin. Tom started his sup-ply chain career in 1969 when he joined the JCPenneyCatalog Division in Milwaukee, Wisconsin. In 1989 after a vari-ous catalog fulfillment and operations assignments in five USlocations, Tom became Manager of the JCP Manchester Ct.Regional Catalog Fulfillment Center. In 1999 Tom moved tothe JCP Home Office as Director of Facility Operations for theCompany. In March 2004, Tom was assigned head of JCP’snew logistics services organization and became Director ofSupply Chain Support.

Clifton E. Turner, Group Logistics Manager, Ryder Supply Chain Solutions

Clif Turner is responsible for the Philips ConsumerLifestyles account under Ryder’s Supply Chain Solutions divi-sion. The PCL operational network includes 4 distributioncenters totaling 1.6 million square feet, 300+ employees, acombined $21 million P&L budget, and over $44 million inannual freight spend.

Mr. Turner has over 17 years of supply chain managementexperience within both the Food & Beverage and ConsumerProducts industries. His supply chain roles have spanned fromquality control, production/manufacturing, warehousing, totransportation management.

He has a BBA in Management from The University of Texas atAustin and a MBA from Southern Methodist University.

Dr. M. Douglas Voss, Ph.D., AssistantProfessor, University of Central Arkansas

M. Douglas “Doug” Voss is an Assistant Professorof Marketing & Supply Chain Management at The Universityof Central Arkansas. Doug received his Ph.D. in logistics andmarketing from Michigan State University and an M.S. andB.S. in Transportation and Logistics Management from theUniversity of Arkansas. Before beginning his position at TheUniversity of Central Arkansas, Doug was post-doctoralresearch associate at Michigan State University and alsoworked in the truckload motor carrier industry. His researchhas appeared in the Transportation Journal, the International

Journal of Physical Distribution and Logistics Management,Supply Chain Management Review, Logistics Quarterly, as wellas several conference proceedings including the Council ofSupply Chain Management Professionals, Production andOperations Management Society, and the AmericanMarketing Association. Doug received the E. GrosvenorPlowman award for the best paper submitted to the 2006Council of Supply Chain Management Professionals EducatorsConference, a grant from Pharmacia for the study of food,nutrition, and chronic disease, a scholarship from the U.S.Department of Homeland Security for the study of supplychain security best practices, and has served as chair of theOutsourcing and Quality Issues Track of the Production andOperations Management Society Conference and an invitedreviewer for several conferences and journals.

Donald Walker, SVP, DistributionOperations, McKesson

Don is the Senior Vice President of DistributionOperations for McKesson Pharmaceutical responsible for 32distribution facilities nationwide. Along with field operationsteams he directs staff functions in Engineering, FacilitiesTransportation and Regulatory Affairs.

With over 27 years in wholesale distribution including 20 yearsat McKesson Don has directed functions at every level in theorganization. Prior to his current role he led McKesson’sBusiness Process Improvement Six Sigma group and is atrained Blackbelt.

Lance Whitacre, Director of OrderManagement & Logistics, AndersenWindows, Inc.

Lance Whitacre is Director of Order Management andLogistics for Andersen Windows, Inc. in Bayport, MN. In hisrole, he is responsible for Customer Service, Transportation,Distribution Operations, Logistics Strategy, and ProjectManagement. Lance is also the business unit leader forAndersen Logistics, Inc.

Before joining Andersen, Lance spent nine years at EMCOEnterprises, Inc. in progressively responsible positions in theLogistics organization and as Managing Director of EMCO’sLuray Operations. Prior to EMCO Enterprises, Lance workedfor Jacobson Warehouse Company in Des Moines, IA and ShellChemical Company in Deer Park, TX.

Lance is a member of the Warehousing Education andResearch Council (WERC) and a new member of DistributionBusiness Management Association’s Supply Chain Leaders inAction Program. Lance is a Board Chair of the St. Croix ValleyYMCA and is a Youth Basketball and Softball coach. Lanceholds a B.A. in Marketing from Iowa State University and aM.B.A. from Drake University

National Science Foundation and a grant from the Departmentof Transportation. In addition to referee work for numerousjournals, he has served on the editorial board of Manufacturing& Service Operations Management since 1996, as an associateeditor for Management Science since 1998, and as an associateeditor for IIE Transactions since 1996. Chuck was twice selectedas the outstanding Auburn ISE professor in 1997 and 1999, andone of his papers, co-authored with Jack Muckstadt at CornellUniversity, received the 1997 IIE Transactions Best Paper inScheduling and Logistics Award. He has worked as a consultantfor several companies including Hyundai Motor Manufacturingof Alabama, Engelhard Corporation, and Milliken. He is a mem-ber of APICS, CSCMP, INFORMS, and M&SOM.

Scott Spencer, VP, SW Division, Roadway

As vice president of the Southwest Division forRoadway, Scott Spencer is responsible for sales

and operations functions in the states of Texas, Louisiana,and Mississippi and portions of Arkansas, Tennessee,Kentucky, and Florida.

Spencer has served in a variety of management capacitiessince joining Roadway in August 1983. Within a year, hewas promoted from dock records clerk at the service centerin Harrisburg, Pa., to dock supervisor and later to opera-tions manager. In September 1992, he became manager ofthe Roadway service center in Trenton, N.J. In May 1994,he returned to Harrisburg as assistant manager. He contin-ued to take on positions of increasing responsibility, man-aging the driver-relay operation in Stroudsburg, Pa., andlater the service center in Winston-Salem, N.C. In May2004, he was named to the position of district manager,withassignments in Winston-Salem, N.C., and Chicago, Ill.

He was promoted to division vice president in January2007. Spencer holds a bachelor’s degree in business and amaster’s degree in education from Eastern KentuckyUniversity. He has completed the executive education pro-gram at the Weatherhead School of Management at CaseWestern Reserve University.

Katy Stone, Director of Logistics, DuPont USA

Katy received a Bachelors of Science degree inChemical Engineering at Tulane University in New

Orleans, Louisiana and started her career with Conoco OilCompany in 1982. Katy moved to Wilmington, Delaware andtransferred from Conoco to DuPont in 1987. She received aMasters of Business Administration at Drexel University inPhiladelphia in 2002.

During 25 years of DuPont service, Katy has held positions inmanufacturing, technical and customer service, business man-agement, six sigma project leadership, sourcing and logistics.Her experience spans several industries, including oil and gas,

environmental, basic chemicals and agriculture. Katy's previousresponsibilities include international logistics with specific focusin Europe. Katy assumed her current role effective January 2007.

Dr. John Taylor, Ph.D. Associate Professor,Grand Valley State University

Dr. Taylor is an Associate Professor of Marketingand Logistics in the Seidman College of Business. His teachingfocuses on logistics management, transportation policy andmanagement, and international logistics. Dr. Taylor also headsup Grand Valley’s Logistics Management program.

His Ph.D. dissertation dealt with the manufacturing plant anddistribution center location implications of the NAFTA. He hasalso conducted a number of academic studies on U.S.-Canada-Mexico border crossing issues. Additional research has beenpublished on issues related to trucking economic regulation,ocean shipping in the Great Lakes, intermodal transportation,Michigan highway funding, "in-stock" performance levels in thesupply chain, and the value of outdoor billboard advertising.

Dr. Taylor is a past member of the National Commission onIntermodal Transportation, an 11 person PresidentialCommission created to make legislative recommendations onways to improve intermodal transportation. He is also a pastmember of the National Motor Carrier Advisory Committee tothe U.S. Department of Transportation, and has been a memberof the Michigan Motor Carrier Advisory Committee. He alsohas served on various Michigan DOT and Detroit Chambercommittees focusing on Michigan transportation and logisticsissues. He is a frequent witness on international trade and trans-portation policy issues before Congressional and Michigan leg-islative committees and has spoken or debated on these topicsbefore a number of organizations and for print and electronicmedia. He has also been qualified as a Michigan c-ourt expertwitness on logistics and transportation issues

Phil Therrien, RFID Implementation,Kimberly-Clark

Supply Chain professional with 19 years of experi-ence including Transportation, Planning, Replenishment, andDistribution Operations with a rich mix of individual contributorand leadership roles at both plant sites and staff operations. Philcurrently leads Kimberly-Clark’s RFID implementation effortincluding operational process and business case development.Phil has a B.S. from the Pennsylvania Sate University in SupplyChain Management & Information Systems.

2008 Supply Chain Leaders in Action Program:Presenter Biographies

2008 Supply Chain Leaders in Action Program: University Faculty

70 71

DBMJ

an on-line survey that assessedthe current state of food industrysecurity initiatives, practices, andcompetencies.

The survey was built around aframework of ten competenciesthat drive security and defenseperformance. These security com-petencies were identified withinand across each firm in the supplychain and are presented inExhibit 1, Supply Chain SecurityCompetencies. Examples of secu-rity applications related to eachcompetency are presented inExhibit 2, Examples of SecurityCompetencies. After distributingthe survey and analyzing results,responses were used to develop aspreadsheet-based supply chainsecurity benchmarking tool (available athttp://www.bus.msu.edu/msc/SCMExecBrief/ ).

Periodic assessment utilizing theMSU supply chain security bench-marking instrument, and/or othertools, are critical elements of aneffective food protection, pre-paredness, and response program. When firms use the benchmark-ing tool to compare their compe-tency scores to those of top per-forming food firms, the spread-sheet calculates the differencebetween the firm’s response andbest practices. The firm is thenable to compare its security capa-bilities to those of the highest per-forming food processing firmsfrom the research and identifythose competencies that need themost attention. Non-food compa-nies can also apply the bench-marking standards in an effort toprotect their brand.

Supply Chain Security-Brand Protection Process

Through the MSU supply chainsecurity benchmarking initiative itwas determined that, in general;no best practice supply chainsecurity process is currentlyemployed by the industry. Priorresearch and practitioner discus-sions indicated that an enterprisewould benefit through a formal

security process. Such a processwould provide firms with a road-map for the implementation andmaintenance of security programs.

A suggested 10-step best prac-tice process was developedbased on a previously validatedmethod of process managementand control. Based on thismethod, the supply chain securitybrand protection process consistsof descriptions, objectives, andspecific performance metrics for aseries of defined steps.Implementation of the processwould involve documenting cours-es of action in preparation for, and

response to, incidents of differentseverity as well as the timing ofaudits and benchmarking assess-ments.

The security process includessix actions:

• Assignment of security responsibility within the business unit and site

• Development of security policies, procedures, and guidelines

• Transfer of competence through employee security awareness, documentation, and training

73DBMJ

Global Risk Management-Achieving a SustainableEnterprise

Leading companies continuous-ly improve performance thoughbest practice strategy and opera-tional efficiency and effectiveness.In the global business environ-ment, performance improvementsare often achieved through globalsourcing coupled with supplybase reduction, operational inte-gration, as well as supply net-working and network optimization.However, the implementation ofthese solutions has increased vul-nerability to global supply chaindisruptions. In turn, global supplychain risk management hasreceived increased attention.

Knowledge gained from a three-year Michigan State University(MSU) and Griggs and Associates,LLC industry research initiativefunded by the U.S. Department ofHomeland Security (DHS) and theNational Center for FoodProtection and Defense (NCFPD)can help industry address therole of supply chain risk manage-ment as a means of mitigatingglobal supply chain disruptions.

The focus of the MSU-ledresearch was the protection anddefense of the U.S. food supplychain from an intentional and cat-

astrophic act of terrorism.However, as research progressedit became apparent that many ofthe same risk mitigation andresponse efforts critical to protectagainst and respond to an act ofterrorism (e.g., caused by a terror-ist state, special interest group,and/or individual) also applied toother unintentional global supplychain threats (i.e. failure to opera-tionally control supplier quality,storms, floods, industrial acci-dents).

The MSU research initiative wasdivided into three interrelatedfocus areas: 1) benchmarkingand assessment of enterprise

supply chain security; 2) require-ments for a standard securityprocess, and 3) supply chain inci-dent response software. This arti-cle briefly summarizes researchfindings and suggests how indus-try might use these findings toachieve a more resilient and sus-tainable global supply chain.

Supply Chain SecurityBrand ProtectionBenchmarkingAssessment Instrument(s)

Benchmarking is a commonpractice used by firms to assesstheir capabilities in relation tothose of other firms. The MSUbenchmarking initiative sought toassess the state of food industrysecurity best practice and create atool that would allow firms tobenchmark their security andbrand protection competenciesagainst best-in-class performers.Under normal operations, anenterprise would conduct routinescheduled and/or special auditswith periodic benchmarking andassessment of their overall brandprotection program and processto achieve a secure and sustain-able supply chain. MSUresearchers began by conductinga series of in-depth interviewswith supply chain, security, andquality management personnel.Information gathered from theseinterviews was used to construct

72

Mitigation ofSupply ChainNetwork Risk:Research and ResultsApplied to Security andSustainabilityOmar Keith Helferich, PhD, Supply Chain Professor, Central Michigan UniversityM. Douglas Voss, PhD, Assistant Professor, University of Central ArkansasJohn E. Griggs, PhD, Managing Partner, Griggs and Associates, LLC

Refereed Article:

Process Strategy- The executive commitment to enhancing security and instituting a culture of security within the enterpriseProcess Management- The degree to which specific security provisions have been integrated into processes managing the flow of materials and products into and out of the firmInfrastructure Management- Security provisions implemented to secure physical infrastructure and products (e.g. buildings, transportation vehicles)Communication Management- The security related internal information exchange between employees, managers, and contractors Management Technology- The effectiveness of existing information systems for identifying and responding to a potential security breachProcess Technology- Specific technology (e.g. electronic seals, RFID) implemented to limit access and trace the movement of goodsMetrics- The availability and use of measures to better identify and manage security threatsRelationship Management/Service Provider Management - The security related information sharing and collaboration between the firm and its supply chain partners (e.g. customers, suppliers, and service providers)Public Interface Management- The security related relationships and exchange of information with the governmentand the public

Exhibit 1: Supply Chain Security Competencies

Exhibit 2: Examples of Security Competencies

Process Strategy • Senior management believes that supply chain security is critical for consumer and brand protection• Firm has cross-functional representation on senior level security crisis management team• Management support for security consciousness is indoctrinated through ongoing training

Process Management • Defined procedures to complete product recalls•Standardized procedures to control receipt and shipment of product• Applies Hazard Analysis and Critical Control Point (HACCP) system

Infrastructure Management• Application of gates, locks, access controls, and guards to restrict access to sensitive areas• Application of monitoring equipment to detect unauthorized activity• Controls to limit non-employees’ access to facilities and operations

Communication Management • Incorporates modules on preventing contamination/security incidents into employee training• Establishes defined communication protocols in case of a contamination/security incident• Established defined reporting protocols in case of a contamination/security incident

Management Technology • Able to quickly share information with employees in case of a contamination/security incident• Information systems are secure• Ability to track transactions by origin, destination, date, description, and route

Process Technology• Ability to track and trace commodities and products up and down one stage in the supply chain• Ability to track salvaged and returned products• Transportation assets are sealed while not under control of the firm

Metrics• Measures to track and monitor vulnerabilities (e.g., products, facilities, supply chain partners, etc.)• Supply chain security metrics are based on a combination of internal, industry, and governmentguidelines

Relationship Management/Service Provider Collaboration Management• Applies external audits (as opposed to self-audits) to verify security procedures• Maintains a database of emergency contact information for service providers• Requires service providers to use government or industry security guidelines

Public Interface Management• Complies with government-required record keeping regulations regarding threats and incidents• Establishes communication strategy for providing information regarding contamination/security

incidents to appropriate government/ public agencies

7574

Global Supply ChainManagement and IncidentResponse

Despite the potential reductionin incidents achieved through theuse of benchmarking and a formalsecurity process, the possibility ofan intentional or unintentional inci-dent still exists. Given this reality,the third phase of the MSU supplychain security research initiativesought to develop a web-based,incident response software solu-tion referred to as Rapid Track andRespond (RTR). RTR is designedto speed incident response inorder to mitigate negative effectson consumers and firm perfor-mance.

In the event of a security inci-dent, or even a product recall, it isimportant to remove product fromretail outlets as soon as possible.Removing contaminated productfrom the outlets closest to thesecurity incident is easy. It is more

difficult to determine the path thatthe product followed, and the sup-ply chain partners involved, toarrive at the point of consumerpurchase. RTR was designed tospeed up this process. Inresponse to a potential food-bornecontamination incident, RTR uti-lizes information to rapidly identifythe probable points of production(i.e., growers), processing, distribu-tion, retail outlets, as well as thescope of distribution and points ofpotential consumption. The soft-ware was designed primarily foruse by environmental health agen-cies, who often uncover the conta-mination, and first response agen-cies, that are required to isolatethe points of contamination andinform the public. Given theseroles, linking local environmentalhealth agencies into the extendedsupply chain is an often over-looked but essential part of rapidand proactive response.

RTR does not track product uti-lizing electronic tracking devicessuch as RFID or GPS nor does itreplicate the functionality of supplychain event or visibility modelsdesigned to track and report theprecise location and/or movementof an item through a supply chainbased on electronic tracking.Instead, RTR utilizes brand namesas a means of mapping the supplychain for a given commodity.Brand names were chosen as the“glue” to link the food supply chainbecause consumers are often ableto remember the brands they pur-chase and brand-names are oftenthe first information given to firstresponders.

The first step in making RTRfunctional was to populate a data-base with distribution informationfor a given product and brand ofthis product. For the purposes ofdemonstration, researchersobtained publicly available informa-tion pertaining to the fresh spinachsupply chain as well as firstresponders by county area. TheState of California provided a file of5,800 processors/brokers/dealers.The State of Michigan providedfiles containing information on44,000 outlets for food sale or

consumption. In-store visits identi-fied fresh spinach brands andbrand sourcing for a limited num-ber of supermarket chains. Otherinformation sources expanded thedatabase of retail points of pur-chase and consumption beyondthe geographical confines ofMichigan, adding 20,000 U.S.-widepoints of food sale and consump-tion, 8,000 pharmacy outlets, and3,000 environmental health agen-cies.

In the event of an incidentinvolving fresh spinach, firstresponders would access RTR on-line and enter the geographic loca-tion of the contamination and theproduct’s brand name. RTRwould then use the datadescribed above to uncover themost likely upstream distributionpath for that brand. Once theupstream distribution path hasbeen sufficiently uncovered, theprocess then identifies the mostlikely downstream distributionpaths to the points of consumerpurchase.

At first pass, the list of implicat-ed supply chain nodes is likely tobe extensive. As hours pass, firstresponders usually become awareof more affected persons. Thesepersons would also be asked toprovide the implicated product’sbrand name and purchase loca-tion and this information would beintroduced to RTR. At this point,RTR is able to more precisely nar-row down the upstream anddownstream distribution pathsand the process continues tobecome more accurate as moreinformation is introduced.

The end result is a web-baseddecision support tool that couldsignificantly reduce the timerequired to identify sources ofcontamination in the food supplychain and more rapidly identifypoints of consumer purchase orconsumption placed at-risk byspecific sources of food supplychain contamination. Reducingthe time it takes to identify conta-minated product also reduces thenumber of lives affected and sub-sequent negative effects on brandimage and firm performance.

• Controlling access to people, property, product, information and facilities

• Reporting security related incidents and responding to reported incidents

• Annual validation of security systems and services with revi-sion based on lessons learned

Firms using a formal securityprocess stand to minimize poten-tial operational disruptions andimprove security by instituting adocumented course of action forsecurity implementation, testing,modification, and improvement.Firms using the security processare also more likely to avoid wast-ed effort, which could synergisti-cally improve efficiency. TheMSU best practice securityprocess is presented as Exhibit 3,Corporate Security-BrandProtection Process.

Exhibit 3: Corporate Security-Brand Protection Process

Vital Segments

Senior Management Input - Gain insight into businessphilosophy, culture of business, objectives and securityexpectationsRisk Assessment -Review of local crime statistics

Benchmarking - Security processes benchmarked withpeer enterprises Facility Security Risk Assessment - Assess the securi-ty competencies at each facility and major processBaseline Security Protection - Develop security pro-gram for top 10-20 risks that are always present and arehighest consequence by facility and processEnhances Security Protection - Identify and addressrisks beyond baseline risks. (e.g. likely high consequence,low probability one time risks)Security Program - Baseline and enhanced foundationfor overall security plan customized by enterprise, supplychain member, location and even process. The plan shouldbe a dynamic processPlan and Process Implementation - Communicate andimplement through appropriate site/process/enterpriseteams for the supply chain. Include rollout timetable andscheduled plus random security assessments Monitor & Control Process - Validate process plusreview after each incident. Provide timely information todefine anomalies/“non-compliances” to determine level ofsignificance and Courses of Action (COA)Process Review - Reengineer the plan based on lessonslearned through after action reports, re-assessment ofrisks and general use of the plan. Achieving Security and Sustainable Performance

Recommended Tool Set by Segment

Gain awareness through research and best practices- (e.g.MSU supply chain security benchmarking tool)

CARVER plus Shock or ORM - large enterprise; associationchecklist and government guidelines- small enterpriseMSU benchmarking and assessment spreadsheet

CARVER plus Shock or ORM - large enterprise; associationchecklist and government guidelines- small enterpriseMitigation programs from risk assessment

Mitigation programs from risk assessment

Industry based security continuity programs

Industry audit and inspection programs with potential forusing web-based technology

Industry audit and inspection programs with potential forusing web-based technology

Implement continuous evaluation based on formal auditand inspection plus re-assessment

Ongoing Review and Improvement

Risk Management andSupply Chain Monitoringand Response

The importance of risk manage-ment was a recurring themethroughout all aspects of the MSUresearch in terms of more effec-tive 1) benchmarking, 2) processmanagement, 3) incidentresponse, and 4) allocating limitedresources to auditing the highestrisk suppliers. A supply chain isonly as secure as its weakest link.Even the most prepared firms areexposed to the negligence of theirsuppliers. As an unfunded exten-sion to the DHS-funded project,the RTR research team also exam-ined companies faced with thetask of monitoring suppliers in ahighly complex global supplychain. In fact, RTR was built as anextension to an existing softwareproduct used to manage complexinspection and auditing processeson a global basis .

To say the least, tracking globalsupplier performance and audit

results is a daunting process.Adding risk-based process criteriato that process significantlyincreases this complexity. To bet-ter define the solution require-ments for risk-based supply chainmonitoring and response, the RTRresearch team analyzed: 1) corpo-rate responses to the MSU bench-marking research, 2) non- propri-etary information gleaned fromover 30 public and private sectorrequests for proposals seekingmore effective and cost-efficientapproaches to monitoring andmanaging inspection and auditingprocess , and, 3) the responsesfrom environmental health agen-cies relative to inspection and inci-dent response at the local level. .

An overall requirements setbelieved necessary for implement-ing an effective risk-based supplychain monitoring and eventresponse system is presented inExhibit 4, Solutions RequirementsOverview – Supply ChainMonitoring and Response.

Exhibit 4: Solution Requirements Overview – Supply Chain Monitoring and Response

Requirement AreaComprehensive Supplier Profiles

Flexible Risk Assessment Calculations

Inspection/Audit Strategy Based upon RiskAssessmentSupplier Audits

Supplier Certifications

Nonconformance Records (NCRs)

Corrective and Preventive Actions (CAPA)

Online Supplier Interactivity

Sampling and Product Testing

Consolidates Supplier Performance Data

Core Decision Support Tools

Requirement ExamplesComprehensive profile data, entered directly or via integra-tion, maintained in a central repository. Risk scores calculated using defined categories and algo-rithms, with risk categories weighted by critical areas andassessments calculated differently by focus (e.g. value -social - environmental).Supplier risk and performance combine to drive actionsand focus resources appropriately. Built-In supplier audit program management with bothaudit/inspection configuration flexibility and optional In-field audit software tools.Ability to track certification, store certification documentsand inspection results, and disseminate information to theright person with the appropriate information in a varietyof ways. Optional data entry modes, each with restricted/autho-rized monitoring of NCRsFull documentation and the ability to manually launchinvestigation audits.Secure online supplier access with definedaccess/read/write authorizations. A risk-based approach to testing, with the ability torequest (schedule) random sampling with define lab deliv-ery instructions.Current information available… Online – Anywhere -AnytimeOnline dashboards & scorecards, reports, notification sys-tems

76

For greater flexibility, risk can also be defined andevaluated differently based on the certification andinspection program, type of supplier, and/or thetypes of products or services supplies provide. Forexample, a supplier might be considered low-risk inthe quality program but high-risk in the socialaccountability program. The algorithm(s) used tocalculate risk scores should be configurable andvary by program.

Public and private organizations must be capableof assessing suppliers or licensees based on bothrisk and past performance. The result of an assess-ment should be used to determine the appropriateaudit frequency, sampling plans, required coursesof action (e.g. a corrective action or documentedrisk analysis plan), and the type of checklist for theaudit. Using this tool, high-risk suppliers with poortrack records can be audited more frequently, or ina more detailed manner, than lower-risk suppliersthat consistently perform well. This enables theorganization to focus limited audit and inspectionresources at the points of highest risk.

In one example, a food import and re?export safe-ty risk assessment program was required to coverover 80,000 food items. Exhibit 5 illustrates asimplified view of how inspection frequency, basedon the risk and performance of each supplier, wasused to determine inspection frequency. Risk wasdefined as the severity of potential consequencestimes the probability of occurrence (ProbabilisticRisk Assessment) and it dictated where and howlimited resources were deployed.

Once the suppliers have been scored within therisk categories, overall supplier risk can be comput-ed. Past performance indicators can be determinedusing multiple methods, including a numeric score,grade, or percent failures. The assessment of sup-plier risk and past performance can help directcompliance and inspection resources appropriately.As a supplier’s risk score and performance change,the course of action is altered, by either increasingor decreasing inspection frequency.

77

Probability of OccurrenceHigh Medium Low

Very High Risk High Risk Medium Risk30 Day inspections 60 days 90 days

High Risk Medium Risk Low Risk60 days 90 days 120 Days

Medium Risk Low Risk Very Low Risk90 days 120 Days 150 Days Se

verit

y of

Occ

urre

nce

Low

M

ediu

m

Hig

h

Exhibit 5: Simplified Risk-based Inspection Frequency Determination

Exhibit 6 provides simplified examples of riskcategories and weights that could be used to calcu-late supplier risk for a social accountability programversus a supplier quality program: In some cases,automatic scoring within the risk categories can beused. Manual assessments may be required inother cases. A country of origin risk score could bebased simply on the geographic location of thesupplier and could be pre-populated. Risk assess-ment experts may need to provide the score orscoring methodology for more complex risk cate-gories (e.g. supply chain length/complexity). Riskscores can also be obtained from inspection results(e.g. inspector can indicate the presence or lack oflabor compliance programs, which can then createthe supplier score in that category). If businessrules allow, the calculated supplier risk score canbe overridden based on a management decision.

An overall view of the complexity of risk-basedmonitoring of an extended and complex supplychain is depicted in Exhibit 7, Managing SupplyChain Risk.

As noted above, the importance of risk manage-ment was a recurring theme throughout all aspectsof the research. It was raised both in terms of moreeffective process management and, perhaps evenmore frequently, in terms of cost effectivenessthrough the allocation of limited resources to areasof highest risk.

This article summarized the MSU-led food supplychain research initiative and four tools/techniquesthat firms may use to reduce global supply chainrisk. Risk management lies at the heart of effectivemonitoring and response efforts. Risk manage-ment is a matter of social responsibility and actingas a good steward to the interests of firm stake-holders. Simply put, it is the only practical and eco-

Social Accountability Risk Categories Risk WeightSupply chain length/complexity 40%Country of origin 35%Type of product 15%Labor compliance program 10%Total 100%

Supplier Quality Risk Categories Risk WeightMicrobial risks 40%Chemical risk 30%Consumption rate of the foods 10%Health effects on vulnerable groups 10%Country of origin 10%Total 100%

Exhibit 6: Risk Weighting Within Program Groupings Exhibit 7: Managing Supply Chain Risk

nomically sound approach thatboth public and private organiza-tions can afford.

Summary: Achieving aResilient, SustainableSupply Chain

Knowledge gained from thethree-year Michigan StateUniversity and industry researchinitiative funded by the U.S.Department of HomelandSecurity (DHS) as well as theextension of that research intothe area of risk-based supplychain management can be usedto help industry address criticalsupply chain issues

The overview presented of thefood supply chain benchmarkingtool can assist in the assessmentof the security programs for anenterprise with comparisonagainst suggested top perform-ing companies. The food supplychain focused benchmarking toolis available athttp://www.bus.msu.edu/msc/SCMExecBrief/. The benchmarkingtool is focused upon the foodsupply chain but is applicable in

other industries as well. The suggested standard securi-

ty process provides the basicsteps to assist an enterprise inimplementing a program with abest practice methodology thatis similar to that implemented intotal quality management.Implementation of the processassists in identification of securi-ty risks that could disrupt or oth-erwise affect the supply networkwhile also prescribing securitycontrols to reduce or eliminatethese risks through the use ofmitigation programs.

Analysis of decision supporttools for response to supplychain incidents and for monitor-ing complex global supply chainssuggests that an effective enter-prise responses to catastrophicsupply chain incidents willrequire that risk managementcapabilities become an integrat-ed part of an enterprises overallsupply chain monitoring systemand that appropriate public sec-tor incident response organiza-tion be considered part of anextended supply chain. .

Footnotes & Credits

Michigan State University (MSU) and Griggsand Associates LLC conducted itsDepartment of Homeland Security (DHS)sponsored research on global food supplychain security from 2004 through 2007under a grant awarded by the NationalCenter for Food Protection and Defense(NCFPD). NCFPD is a DHS Center ofExcellence lead by the University ofMinnesota

This research was supported by the U.S.Department of Homeland Security (Grantnumber N-00014-04-1-0659), through a grantawarded to the National Center for FoodProtection and Defense at the University ofMinnesota. Any opinions, findings, conclu-sions, or recommendations expressed in thispublication are those of the author (s) and donot represent the policy or position of theDepartment of Homeland Security.

Closs, David J., Cheri Speier, JudithWhipple, & M. Douglas Voss (2008), “AFramework for Protecting Your SupplyChain”, Supply Chain Management Review.March 2008, pages 38-45

The authors acknowledge the inputs in thedevelopment of the standard process fromGregory Halvacs, formerly Director of GlobalSecurity for Kraft Foods and Chairman of theFood and Agriculture Council for ASISInternational

Helferich, Omar K. & John E. Griggs, SupplyChain Security Process Standards FinalReport, Department of Homeland Security,National Center for Food Protection andDefense, published by Griggs andAssociates LLC, November 1, 2007

The authors acknowledge the inputs in thedevelopment of the Rapid Track andRespond prototype by jadian enterprises,inc.( www.jadian.com) through the use ofEnterprise Quality Manager © solely for pro-totyping purposes. Enterprise QualityManager © was provided as an in-kind finan-cial contribution to Michigan State Universityunder its contract with the National Centerfor Food Protection and Defense.

The authors acknowledge the inputs pro-vided by Karen Lynn Griggs, Vice Presidentof Marketing and Sales for jadian enterpris-es, inc. in the development of a require-ments set for risk-based supply chain moni-toring and the provision of information con-cerning a risk-based inspection implementedin Dubai, United Arab Emirates

Conducted with the support and coopera-tion of the National Environmental HealthAssociation. . Principal researchers wereDrs. Omar Keith Helferich and John E.Griggs of Griggs and Associates, LLC. Mr.Tom Dickey and Mr. Larry Marcum providedinput and support on behalf of the NationalEnvironmental Health Association.

DBMJ

79

Refereed Article:

Do you think that success-ful supply chain opera-tions are similar with the

same competencies? If so, you’dbetter rethink the situationbecause, according to experts,your organization may have an

infeasible supply chain strategy.Examples abound of successfulbut different supply chains withinthe same industry. Wal-Mart andNordstroms in retail, SouthwestAirlines and British Air in passen-ger air travel; Toyota and

Mercedes Benz in the auto indus-try, the University of California andthe University of Phoenix in thecollege education industry are allexamples of successful organiza-tions with completely differentsupply chain strategies. Selectingthe appropriate supply chain strat-egy and determining the level ofcompetency required to support itare now two of the biggest chal-lenges facing supply chain man-agers.

The purpose of this article is toreflect on the theory and develop-ment of supply chain strategy fromthe works of selected experts onstrategic planning such as MichaelPorter and Michael Hammer. It willbegin by reviewing the basics ofbusiness strategy and supply chainstrategy and then offer ideas formatching an appropriate supplychain strategy with each businessstrategy.

The Basics on BusinessStrategy:

Michael Porter is probably thebest known author on modernbusiness strategy from his found-ing work Competitive Strategy.This work posited that businesscompetition could be classifiedinto three generic strategies: 1. Overall cost leadership (pricestrategy) - Focus on aggressiveconstruction of efficient scale facil-ities, vigorous pursuit of costreductions, tight cost and over-head control, avoidance of margin-al customers, and cost minimiza-tion in areas of R&D, service, sales,advertising, etc. to create a lowercost base than competitors.Examples are Wal-Mart,McDonalds, and SouthwestAirlines. 2. Differentiation leadership (prod-uct strategy) - Focus on design andbrand image that is perceivedindustry wide as being uniquefrom competitors. Examples areMercedes Benz, Saks FifthAvenue, and Rolex.3. Niche leadership (customerstrategy) – Focus on a particularbuyer group, segment of the prod-

uct line, or geographic market withability to serve this market nichebetter than broader competitors.

Another best selling book onthe subject was The Discipline ofMarket Leaders by MichaelTreacy and Fred Wiersema. Theyidentified four dimensions ofcustomer value as price, speed,service and quality and specifiedfour rules for establishing a suc-cessful strategy as:Rule #1: Excel in one dimension

of valueRule #2: Maintain threshold

competence in the other value dimensions

Rule #3: Dominate in the chosen dimension by constant improvement

Rule #4: Build an appropriate and excellent operating model

They identified the same threestrategies for value capture asPorter: 1. Operations Excellence (pricestrategy) - combination of quality,price and service that competitorscannot match.2. Product Leadership (productstrategy) - best products and ser-vices period with leading edgeinnovation.3. Customer Intimacy (customerstrategy) - tailors products andservices to individual buyer needsat reasonable prices.

Another best seller on businessstrategy was The Profit Zone byAdrian Slywotzky and DavidMorrison. Their research revealedthat organizations with successfulbusiness strategies had four ele-ments in common:1. A unique and well defined cus-tomer value proposition that identi-fied the solutions that customersneeded.2. A plan for capture of economicvalue added (EVA) that targetedthe portion of the customer needsto be provided at a profit.3. The core competenciesrequired to capture the EVA.

4. A constant evaluation of thescope of offerings to stay in theprofit zone.

Their recommendation for realiz-ing these elements was to reversethe value chain by starting withcustomer needs and workingbackwards to core competencies.This way the strategy is tailored tothe customer rather than trying tofind customers for the organiza-tion’s core competencies.

The Basics on SupplyChain ManagementStrategy:

The experts pointed out theneed for appropriate processstrategies to execute the businessstrategy and this includes a supplychain strategy, which should bethe point of concern for supplychain managers. Porter pointedout a supply chain strategy prob-lem in a Harvard Business Reviewarticle titled “What is Strategy?” inwhich he pointed out that opera-tional effectiveness (OE) is notstrategy. While both are essentialto superior performance, theywork in different ways. An OEadvantage is to perform similaractivities better than rivals. A strat-egy advantage is to select differentactivities than rivals or performthem in different ways. Thus,excellent supply chain perfor-mance alone is not a sufficientcompetitive advantage. It canbecome the adage of being thevery best provider of an obsoleteproduct – like horse shoes.

A further warning on faulty sup-ply chain strategy came fromanother Harvard Business Reviewarticle “What is the Right SupplyChain for Your Product?” byMarshal Fisher of the WhartonSchool of Business. Fisher identi-fied two basic types of competi-tive strategy and two types of sup-ply chain strategy. The two typesof competitive strategy: • Functional strategy = staple

product and services that satisfybasic needs and are sold in awide range of outlets such as

Reflections onSupply ChainManagementStrategy

78

By Richard Dawe, Ph.D.Associate Professor of Operations and Supply Chain ManagementThe Ageno School of BusinessGolden Gate University, San Francisco, CA

groceries and gas. They haverather long product life cyclesand predictable demand, whichinvites competition that leads tolow profit margins.

• Innovative strategy = fashion,design, or technology bearingproducts and services such asconsumer electronics and sportswear that are unique and giveconsumers additional reasons tobuy. Because of their unique-ness and low competition, theyacquire high profit margins, butthe newness of them and theirshort life cycles makes demandhighly unpredictable.

The Two Supply ChainStrategies:• Physically Efficient Process -

required to fulfill predictabledemand efficiently at the lowestpossible cost.

• Market Responsive Process –required to respond quickly tounpredictable demand in orderto minimize stockouts, forcedmarkdowns, and obsolescence.

Matching Supply Chain Strategy withCompetitive Strategy

COMPETITIVE STRATEGYSUPPLY CHAIN FUNCTIONAL INNOVATIVE

STRATEGY

RESPONSIVE MISMATCH MATCH

EFFICIENT MATCH MISMATCH

The concluding 2 x 2 tableshows that a supply chain strategyis only appropriate for one type ofmarket strategy and completelyinappropriate for the other. Thisbegins to explain how Wal-Martcan be successful in the functionalmarketplace with an efficient sup-ply chain strategy while Saks FifthAvenue can be successful in theinnovative marketplace with aresponsive supply chain strategy.For Wal-Mart, shipping goods inocean containers from Hong Kongto New York that takes 6 - 8 weeksat $3,000 each is appropriate;while for Saks, chartering 747s tofly garments on hangers overnight

DBMJ 80

from Hong Kong to New York intime for store openings at a costof over a quarter of a million dol-lars one way is appropriate. Thesimple Fisher model served noticethat supply chain strategy needs toconform to the competitive strate-gy and that one supply chain strat-egy does not fit all.

Unfortunately, the matching ofbusiness strategy to appropriatesupply chain strategy is not quiteas simple as the Fisher 2 x 2model. Strategy experts sug-gested that there are four cus-tomer value strategies, not two:product, price, service, andspeed. Although product(Fisher’s innovative strategy) andprice (Fisher’s fundamental strat-egy) remain the most popular,speed and service are gaining inimportance. Speed is becomingincreasingly important as pointedin a Business Week article, titled“Speed Demons.” It predictedthat speed is now a new valuemedium, like money, and that itwill replace innovation in com-petitive importance among prod-uct strategy companies in therace to commercialize new prod-ucts and services. The impor-tance of service in modern com-petition was pointed out byMichael Hammer in his book TheAgenda, the follow-on to hisground breaking bookReengineering the Corporation.He explains that an emphasis onservice is due to an unprecedent-ed shift in power from providersof products and services to thecustomers. This has created twonew strategy components:ETDBW (easy to do businesswith) and MVA (more value-added), which both have serviceorientations.

Experts also suggest there aremore than two distinct supplychain strategies to support thecompetitive strategies. Dr. HauLee of Stanford University and of“bull whip” fame is one of thoseexperts. He identified four supply

chain strategies in an article“Aligning Supply Chain Strategieswith Product Uncertainties” in anissue of California ManagementReview as: 1) efficient, 2) respon-sive (effective), 3) risk hedging(tailored), and 4) agile. Using thefour customer value strategiesand these supply chain strategiesproduces a mapping of customerstrategy to supply chain strategyas follows:

From the Fisher model, effectivesupply chain strategy now match-es both product and the emergingspeed strategy and efficient sup-ply chain strategy remains for theprice strategy. However, two newsupply chain strategies have beenadded. The Tailored supply chainstrategy accommodates the newservice intimacy strategy fromHammer and an Agile supplychain strategy from Dr. Leeaccommodates the realizationthat many companies do not have

pure competitive strategies butmultiple target markets and cus-tomer values. For example,Anheuser Busch crafts beers fordifferent market segments suchas Busch in the price segment,Bud in the service segment, andMichelob in the Product segment.Automobile manufacturers, con-sumer electronics, and clothingmanufacturers also differentiatetheir offerings. One of the mostvisible examples of this strategyis the three classes of service oninternational flights. Even compa-nies with pure product qualitystrategies have products in differ-ent stages of the life cycle:emerging, growth, maturity, anddeath. The different stages havedifferent requirements from theirsupply chains. Thus, most com-panies have some degree ofmixed customer strategy thatrequires an Agile supply chainstrategy.

(continued from page 00)place, already trained and ready towork.

This is not to say that youngerworks should be overlooked. Onthe contrary, it is imperative thatcompanies take a three prongedapproach of retaining older work-ers, attracting younger workersand off-setting human-touch laboras much as possible in order tooptimize the people in our organi-zations. But the fact that much ofour future success will be depen-dant on our ability to hold ontoolder workers can not be ignored.The changes made now regarding

CUSTOMER STRATEGY SUPPLY CHAIN STRATEGY

Product Effective Operations & Fast Service

Price Efficient Operations & Dependable Service

Speed Tailored Operations & Personalized Service

Service Agile Operations and Differentiated Service

automation, work process andbenefits will serve as enablers toattract new workers and retainexisting talent for longer than pre-viously believed.

It appears that companies thatlearn to capitalize on their “agingtalent” will fare better in the longrun. With luck and planning theywill, at least, not suffer the fate ofthe fictitious and doomed compa-ny at the beginning of this article.

There is a Japanese proverb thatstates, “When you are dying ofthirst, it is too late to think aboutdigging a well”. What are youwaiting for? Start digging!

Disruptive Demographics in Supply Chain