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Master in

Supply Chain Management


Prof. dr. ir. Bart Vos
Master of Supply Chain Management
Agenda

1. Supply chain management – An overview

2. Careers in supply chain management

3. Master in Supply Chain Management at Tilburg University

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

5. Closing
1 Supply chain management
– An overview
What is supply chain management?

• “Supply Chain Management is the


integration of key business processes
from end user through original
suppliers that provides products,
services and information that adds
value for customers and other
stakeholders” (Stock and Lambert,
2000).
• Supply chains compete, not
companies (Christopher and Towill,
2002)
• Key issues include multimodal
transport, outsourcing, globalization,
sustainability, lean management,
information systems, collaboration,
planning
Change from “rigid” to “flexible” manufacturing

Example

 Highly standardized products  Highly customized products


 Focus on cost efficiency  Focus on differentiation (and cost)

Ford: T-Model (“Tin Lizzy”) Smart: fortwo


Detroit, USA, 1908 Hambach, France, 2008

Rigidity Flexibility
 Breakdown in single tasks  Production/supply networks
 Specialization of jobs  Specialization of performance units
 Focus: Intra-organizational  Focus: Inter-organizational
Supply chain complexity:
Many supply chain tiers
Example

4th tier supplier 3rd tier supplier 2nd tier supplier 1st tier supplier OEM Dealer Customer
(farmer) (tannery) (leather firm) (seats)

Configuration
Supply chain complexity:
Many suppliers
Example

• Mercedes-Benz E-class
• ~ 150 major direct suppliers
• Many of them deliver on a JIT or JIS basis
Supply chain complexity:
Many geographic locations
Example

Wafer Fabrication Assembly & Testing Prime Distribution Center

Portland Cebu Swindon


Salt Lake City Malacca Portland
Midget Haemek Penang Santa Clara
Santa Clara Bangkok Tokyo
Arlington Toa Payoh Hong Kong
Greenock
SCM's impact on ROI

Supply chain

Source: Christopher, 2005


Cost Of Goods Sold (COGS)

• Direct costs attributable to the production of the goods sold by a company, including
• Cost of materials used in creating the good ("purchasing cost")
• Direct labor costs used to manufacture the good ("manufacturing cost")
• How to reduce purchasing cost?
• Purchasing price
• Supplier selection
• Global sourcing
• Supplier management etc. etc. Supply chain
• How to reduce manufacturing & logistics cost? management and
operations!
• Manufacturing footprint
• Manufacturing processes
• Lean management
• Inventory management etc. etc.
COGS at Unilever

Example

Supply chain and


operations costs:
~ 60% of revenues
from products
Profit impact of purchasing: Reducing purchasing
costs vs. increasing revenues
Examples

Revenue
EBIT Margin increase of

Trade 59% 3.4 % 52 %


Lowering
purchasing
Foods 50% 2.5 % costs by 3 % 60 %
will have the
Chemical Industry 40% 5.0 % same EBIT- 24 %
effect as an
revenue
Mechanical Engineering 47% 3.3 % increase of … 43 %

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

Operative Margin
Other Costs
PC = Purchasing costs in % of revenues
Staff Costs PC x PCR PCR = Purchasing costs reduction in % of the purchasing cost
Purchasing costs PI = EM = EBIT Margin %
EM
PI = Profit impact of purchasing as compared to necessary
revenue growth
2. Careers in supply chain
management
The supply chain management profession

• Supply chain management is…


• Interdisciplinary
• Collaborative
• Independent of specific industry
• Dynamic
• Increasingly global
• Essential capabilities:
• Overarching understanding of functional areas (from finance to marketing)
• Analytical skills
• Collaborative, relational skills
• Major subfields:
• Purchasing management
• Logistics and distribution management
• Production and operations management
The link between supply chain management and
strategy

Competitive strategy

Product
Supply chain strategy Marketing and
development
sales strategy
strategy

New Marketing
Purchasing
product Operations Distribution and
and Supply
development sales

Support: Finance, accounting, information technology, human resources

Consistency and support between competitive strategy, supply chain


strategy, and other functional strategies is important
“The Hot New MBA: Supply-Chain Management”
(Wall Street Journal, June 6, 2013)

Source: Wall Street Journal (2013):


http://online.wsj.com/news/articles/SB10001424127887324423904578523591792789054
Example job vacancy (1)

Junior Demand Analyst & Planner (Supply Chain)


Over de vacature
Voor een middelgroot Internationaal groeiend industrieel productiebedrijf zijn we MET SPOED op zoek naar een:
Demand Analyst/Planner
We zijn op zoek naar een pas afgestudeerde analytische, communicatief vaardige en ambitieuze collega die zich hierin wil vastbijten.
De Demand Analyst / Planner analyseert de verkoop, verzendingen en voorraad met als doel een goede forecast te bepalen en aanbevelingen te doen aan de planning voor een
optimale verkoop en te zorgen voor de juiste voorraadniveaus.
Verdere werkzaamheden:
• Coördineren van de gehele forecast.
• Maandelijks consolideren en evalueren van de verkoopprognoses.
• Verzamel van gegevens omtrent sales en productie.
Eisen:
Een afgeronde opleiding op WO niveau (of HBO niveau) in het liefst de richting van Supply Chain Management of anders een vergelijkbaar en aansluitende opleiding.
0-2 jaar ervaring als Demand analyst of Planner.
We zoeken een kandidaat die analytisch en communicatief sterk is en in staat is makkelijk te kunnen schakelen met mensen uit de gehele organisatie (operator tot Sales Manager)
en klanten in binnen- en buitenland.
Je hebt (goede) kennis van Excel en enige kennis van SAP is een pre.
Statistiek en sterk cijfermatig inzicht
Goede kennis van zowel Nederlands als Engels is een must.
Assertief, communicatief en gedreven.
Fulltime beschikbaar (must).
De salarisindicatie voor deze functie ligt op 2500-2600 bruto per maand
Example job vacancy (2)
This is a superb opportunity to join a major, prestigious beverage company in their International office located in Amsterdam. The International
office in Amsterdam is responsible for sales in Europe, Africa and the Americas. They are urgently looking for a high caliber:
DEMAND & SUPPLY PLANNING MANAGER
In this role, you will have responsibility for the total demand planning of the Finished Goods and Concentrate sales as well as for the material
planning of ingredients and packaging. You will work closely with sales, marketing and with other Business Units to identify trends and to refine
an 18 month demand plan. You will foster strong relationships with Commercials, Finance and Marketing teams in running a 12 month Supply
and Operations Calendar.
The key accountabilities are as follows;
DEMAND PLANNING
SUPPLY PLANNING MANAGEMENT
• Material planning for ingredients and packaging.
• Management of 2 Material Planners
• Review SAP & MRP on a daily basis
• Drive coordination of make-buy initiatives and bill of materials management.
• Stock management of raw materials & packaging.
• Support during budgeting and forecasting for materials planning;
PROFILE & EXPERIENCE
• Preferably a Masters Degree in Supply Chain Management
• A minimum of 5 years international supply chain experience within FMCG company.
• SAP & Spreadsheet experience (Excel/Access etc.)
• Experience working with Sales/Marketing/Finance/Logistics departments.
• Highly analytical and comfortable with figures.
• Business fluency in English - French or Spanish would be a big advantage.
3. Master in Supply Chain
Management at Tilburg
University
Positioning of MSc in SCM

Starting • Manufacturing: Entry management positions in supply chain, operations,


positions purchasing, or logistics
• Service industries: Entry management positions at logistics service
providers
• Consulting: Generalist or specialist
Knowledge Scientific advances in purchasing, production/ operations, distribution, and
other advanced topics
Skills Qualitative and quantitative research skills required for academic studies
and practice
Additional practical skills (design, planning, modeling, ICT, collaboration,
coordination)
Teaching • Strong research focus and academic excellence
policy • Strong links to practice
Mindset Analytical, problem-solving, collaborative
Labor market Currently on average about 2 months to find first job, alumni feed back
generally positive, still in high demand
Curriculum (September Entrants)

Unit 1 Unit 2 Unit 3 Unit 4

Purchasing
Management
Research Skills Collaboration Game
SCM & Advanced Topics
Production Master
Management Thesis
Corporate Supply Chain
Distribution Entrepreneurship Management
Management Science

Extended proposal
Thesis: Skills training and Full-time
development under
topic definition research
supervisor

• Heavy unit 1
• Optimal sequence
• Relatively fast
Curriculum (February Entrants)

Unit 1 Unit 2 Unit 3 Unit 4

Research Skills Purchasing


SCM Management
Collaboration Game
& Advanced Topics
Supply Chain Production Master
Modeling Management Thesis
Supply Chain
Management
Science Distribution
Management

Extended proposal
Thesis: Skills training and Full-time
development under
topic definition research
supervisor

• Heavy unit 2
• Less optimal sequence
• Limited flexibility at the end
Course example:
“Collaboration game and advanced topics”

• A simulation game to reinforce supply chain fundamentals and apply advanced methods
• “The Fresh Connection”
• Web-based simulation of a fresh juice producer
• Goal: Highest ROI (costs, revenue, investments) Supply Chain

• Cross-functional teams
Components Finished product
• Decision-making at the tactical/strategic level
Supply Production Distribution

• Six rounds with increasing task complexity

• (Advanced) topics addressed: Purchasing Operations Sales

• Supply chain fundamentals


• Supply chain strategy and its implementation
Experience Reflect
• Agri-food supply chains  Discussions
 Feedback from
• Supply chain planning and S&OP the simulation  Presentations

• Forecasting
• Supply chain collaboration
• Supply chain risk
Apply Conceptualize
• Close loop value creation  Rounds of play  Lectures
 Exercises  Guest speakers
Examples of Master’s Theses

• > 80% company assignment


• Albert Heijn: combining inbound and outbound
transportation flows
• DAF: spare parts management
• Coca Cola: redesign warehouse layout
• Closed loop supply chains at Philips, Assembleon, Oce,
Lage Landen
• Purchasing management at Nedtrain
• Maintenance of F16 jet fighters
• Also SMEs (e.g. lean manufacturing projects)
Graduates: Some examples

Harm Jan Bech Procurement analyst Enexis


Hilde Botden Supply chain engineer VDL (Van der Leegte) Group
Victor Breugem Supply chain planner, FrieslandCampina
David de Kruijf Supply chain planner Pearle
Willem Jan Castelijns Warehouse manager Panalpina
Niels de Rooij Business analyst Ploeger
Geoffrey Dickenson Operations manager WoonVeilig
Robbert Janssen PhD candidate VU
John Koers Interim Professional at Yacht
Robin Law Consultant at Every Angle
Inna Kostuyek Service analyst Philips Healthcare
Ronald Sol Teacher HAS Hogeschool
Dirk van Dooren Supply chain analyst LHC consulting
Robbie Vughts Head of EMEA Edwards Lifesciences SA
Sergi Serrano Lupion Supply Chain Planner at Chupa Chups
Sander van der Heijden Logistics Engineer at Océ Technologies B.V.
Daan Klein Douwel Management trainee at KLM
Florina de Jong Intern European Management Office Samsung Electronics
Master Supply Chain Management at Tilburg University

• Focus on integration of key business processes within firms and


between firms that form a supply chain
• Intellectually challenging
• Research-driven/ practically relevant
• Relatively small-scale (cohorts of about 80 students)
• Quality of staff: professional expertise, practical experience and
teaching abilities

“Designing and implementing theory-based “What has positively surprised me about the
solutions in the supply chain take center Master’s program of Supply Chain
stage, which matches really well with my Management is that the training that we
pict own interests! ” pict received was very practical. … There was a
good link between what we have studied
and what we could see in real life.”

Anneli Degens, current student Inna Kostyuk (grad. 2012)


Business Planner - Philips Healthcare
4. Participant’s perspective:
Mathijs van den Kieboom
5. Closing
Closing remarks

• Career services and alumni relations

• Admission & application

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


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

• Questions
Student Career Center & TiSEM Career Services
Your career starts now!
We can help you with:
Study/Master choices, Career orientation,
Career & Application skills

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

More information:
tilburguniversity.edu/studentcareercenter

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

For all students:


• Enroll via Studielink

Non TiSEM students who want to enroll in a (Pre-)


Master also need to:
• Submit an application for admission

For more information go to:


www.tilburguniversity.edu/education/masters-programmes/admissionprocedure/feb/

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Master’s fair from 19.00h till 21.00h

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

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Questions?