What is Supply Chain Management? Intro to Supply Chain & Logistics (Part 1/3); Best Degree/Jobs

Thanks JoAnn, why are you here? It's 70's and sunny when I was in college. We had an unwritten rule that if it was 70 and sunny you didn't go to class. I asked JoAnn. Is there a clicker? Are you checking attendance? Guys are simply here because they want to be here because they think there might be some exam material that they want to be prepared for. Thanks for being here. I appreciate respect in courtesy. I have to admit, when I was driving and I was thinking to myself, is there any way out of this because it's as beautiful outside as one of the prettiest waterfalls I've ever seen in the state of Michigan?

Let me start by

intro

ducing myself. My name is Sime, don't call me sir, sir. ., professor, doctor is a unique name it is Croatian my parents were born and raised in Croatia so the name is Sime it requires a little practice I don't like to be called doctor because I have reached a point in my life where I don't I don't want to feeling old because I'm actually already old, so I'm not aging gracefully and I don't like being called things that remind me that I'm actually old if you scream for a doctor because you're choking. a pretzel and you need someone to do the Heimlich maneuver.

I will run out of the room if you need CPR and scream for a doctor. I'll run out of the room, so I'm not a doctor. I don't even know

what

. CPR means "So I'm not even close to being a doctor." I went to grad school for five years and I can test mathematical models that look at relationships between things like quality and cost, and believe me when I say that I don't think being an educated idiot who can run those models justifies being called a doctor, so I avoid them calling me. Sime requires a little practice.

The locator circulating has all my contact information in the top corner. There you can contact me at any time. you want it for

what

ever reason you want between now and graduation or after graduation, okay, this is marketing 2500, let me try to get a sense of who you are. I'm guessing more than half of you are business students or aspiring business students. Some of you think you know what you want to major in, some of you are a little indecisive and could go in any direction and then some of you have no idea what you really want to major in, you just gravitated toward business school and that's it. brilliant.

To start with, some of you major outside of college, but someone in your major said that having this 2500 marketing class is really important, so my goal here is to try to explain to you what

supply

chain

management

is and what type in an interesting and exciting way with the mentality that I'm going to brainwash you into thinking it's the

best

thing in the world and that you'll want to change your major if that's not the case at the end of this class, okay. going into this, you have to make it interesting, you can't go in and say that

supply

chain

management

is three distinct but interrelated functional areas, purchasing operations and

logistics

management, you already fell asleep, you fell asleep half of that definition, so I'm not going to do that.

I'm just going to show you what people are doing in supply chain management to give you an idea of ​​what this specialization entails. I'll start by saying that the job placement, the starting salaries, all of that is through the roof and has never been better. I've been at Western for seventeen years and I'll talk to people. I'll watch the news and talk about how bad the economy is and how bad it is for college graduates. Most people have no idea. what are they talking about if you come to college and make a ton of good decisions you will have

jobs

when you graduate and you will likely have multiple job offers you just have to make a ton of good decisions one of the most important decisions you you can take at the college level are not necessarily where you go to college, but what you major in and if what you major in has economic conditions where demand exceeds supply, you are on your way to getting a well-paying job when you graduate, so I try to give my students some general advice about if you want five job offers when you graduate for 50, 60, 70 thousand a year, what are some of the decisions you have to make.

I admit what I'm noticing is the more specialized and focused you can get with your specialization, that's where the

jobs

are, there aren't many companies that say I have an entry level management position. I am looking for a college graduate fresh out of school. and I want them to be able to do everything that they just got out of college. If you look at most job descriptions for entry-level management positions, they tend to be very focused, very specific and very specialized, they expect you to have a lot of strategic skills. but they expect you to work within this very specialized area, so if you look at careers in programs where demand exceeds supply, where salaries are through the roof, where students receive multiple job offers when they graduate, it tends to be in those very specific specialized areas.

For example, you can specialize in general marketing, but I would say for entry-level general management positions there are a lot of companies that say I want a 22-year-old who can do this in marketing; however, there are many companies out there saying I want sales marketing I want food marketing I want advertising and promotion there are not many companies out there saying I'm looking for a general management specialist for this entry level management position this job here tends to be For a mid-level or senior position, you're not going to be interviewing for that type of job, so there are companies that say "I want someone who specializes in human resources management," one of the most popular titles out there. right now, and it's not going to be that way. change in the short term because it is likely that the topic is not going to be less important in the future is supply chain management, so instead of general management we have employers telling us: I want your students to specialize in this supply chain management and then within that, I want a strategic skill set, the end result is that demand exceeds supply and starting salaries are in the 50s and 60s in the integrated supply management program or supply chain management from ISM, we got a near-perfect job placement, almost all of our students graduate with multiple internship experiences, most internships pay between $14 and $23 an hour, the average starting salary in management of the supply chain is around 50 and we have a couple of companies that offer students more than 60 thousand a year, one of them is an automotive OEM based in Metro.

Detroit and Downtown Detroit offer our students 64k directly after finishing school. What I tell my students is that getting a job offer from General Motors for 64k is congratulations, you're not worth it, it's awesome anytime and get a job for more than you are worth it, you did very, alright, and I'm joking when I say that, but being 22 or 23 is worth 64k a year, but maybe they're good at something that companies are willing to pay a premium for and that's what I'll talk about. We talked a little bit here about some of the general decisions you can make in the next 1, 2, 3, 4 years depending on how long you're going to be here.

You have to pay attention to what you are specializing in. Does demand exceed supply? If supply exceeds demand, that could mean you are unemployed when you graduate or take a very low-paying job. I would take your qualifications very, very seriously. We've gotten to a point where it's so competitive that companies are saying you need at least a 3.0 GPA, there's an HR person at the corporate level telling hiring managers that they're going to interview you. They can't even look at a resume unless it's a 3.0 or higher, so a lot of the elite Fortune 500 companies having a 3.0 is a limit and then there's another wave of companies that have a 2.7 as a limit, but I don't know many companies are fine with a GPA less than 2.7, so try to take your grades as seriously.

The most important thing possible, a

part

from the specialty you choose based on supply and demand conditions, is to get work experience related to your specialty, employers say I want you to be ready to work on the first day and you have to be able do it. show me that when I hire them they can make an immediate contribution, so do whatever it takes to get work experience related to your major, if it means delaying graduation, so at least you'll have a job when you graduate instead of being unemployed and Like I said, most internships within the business school and these nichy specialized areas pay very well, so it's not like you're doing it for free, a few other decisions, getting to know your professors in your major, I teach in the program supply chain or Integrated Supply Management ISM and I would say that at least half of the companies call me and ask me about the student they are interviewing, if I don't know who the student is, the manager takes it as something very negative, so who knows the professors in your specialty to the point that they know you, recognize you, and call you by your name because they see you, as do most business school professors.

This is the

best

part

of our job, helping you live the American way. Dream and if we can get you there, that's job satisfaction for us. Yeah, I wouldn't do this for free, but I won't get promoted anymore. I know exactly how much I will earn in 30 years. My benefits. package because I am in a Union it is probably not going to change much, the only thing left to defend for me and teachers in general is: can we help them live the American dream? and if they can leave school with a great paying job that has advancement opportunities associated with it, where the sky is the limit or you can move on to a higher bidder, that's part of the American dream because that helps you pay the bills and I would say Which, in general, if you are 22 years old. - 23 and you are making 45, 55, 65 thousand a year, you are willing to live that dream and you can do it if you make a lot of good decisions while you are in college, take your grades seriously. , know your professors, choose the right major, get work experience related to what you're majoring in another one I'm noticing, look right now, could you pass a drug test if you took one right now, of course you could.

I'm going to say yes, I had a student in my class this semester where I did this, he says, I can't, I won't be able to pass, so I wonder why you would say that in front of your professor, of course. I could pass a drug test and then I said what drugs and I didn't, but your correct answer for any internship now you're going to have to pee in a cup or they're going to take out a huge chunk of your hair. They'll tell you things like we can go back 30 to 60 days if they want to pay enough money and take a big enough hair sample, they can go back 90 to 120 days, so when I was in college it was amazing for the internships we did.

I didn't have to take a drug test. I have never taken a drug test in my life in all of my full-time jobs and I say it's amazing because I don't have to take one. I joked a little and said: yes. I'll be able to do drugs and still get a slightly skewed job there, so I didn't have to take one when I came to Western. We have reached a point where 40% of the world's lawyers are Americans. 2.4% of our The economy are lawsuits that are three times the average of other industrialized nations and US trial lawyers are the fifth most powerful lobbying power in Washington.

My point is that there is so much responsibility associated with hiring that companies have to practice due diligence. What I'm saying is: I'm going to drug test you for an internship, definitely for a full-time job, so you need to start making decisions now based on when you want to get these work experiences. You have to schedule it accordingly, if that is what is implied. that you have to stop doing something to pass that test. I felt like I had to have that conversation because when I first came to the West, employers didn't really require it for internships and even for some full-time jobs they didn't require it. but over a period of 17 years, everyone is doing it, they've outsourced it, and in fact, I'll say go to this site on this date, they'll give you a window, and if you don't do it within that window, they'll take your Application away. consideration for employment, so I think those are some generic decisions you can make that will help you be more successful.

Okay, supply chain management. Let me do a little drawing here. Let's say you work for a company or have your own. company is fine and you sell something for a dollar or they sell something for a dollar it is fine, after selling something for adollar, a product or a service, let's say your manufacturing company and you pay all your bills, so you sold it for a dollar because that's really what the market will allow in terms of what people are willing to pay you sell something for one dollar you pay all your bills it bothers you a little you just paid all your bills how much would you like? having leftovers when all is said and done where it's reasonable you feel it's competitive and worth it or your employer would say yeah that's pretty good or if it's your own business you're going to keep refilling so how much would you like? you have left over give me a number give me a number you sell something for a dollar you pay all your bills what would you like left on the table (outside of a dollar?) yes (50 cents) ohhh you want some big numbers Okay, can you do it legally ?

Ok, I like it. I think Apple has those kinds of numbers, not everyone is like Apple, although the reality is that there are a lot of companies that sell something for a dollar this is what they have left after paying all their bills can you think of an industry in which that is definitely the case? uh yeah yeah grocery retail something that's near and dear to me is the automotive industry. selling cars and trucks like crazy right now in 2008 car and truck sales were down 50% in 2009 unemployment in michigan was 15% and if you include the people who just stopped looking for work it was probably around 25%, that's the Great Recession and that was caused by car and truck sales dropping by 50% due to the real estate bubble bursting the banking crisis and all that, unfortunately we live in a state that doesn't have a diversified economy, tour around manufacturing and specifically automotive.

Southwest Michigan Western Michigan's economy revolves around agriculture and manufacturing, but does not revolve around automotive. We have a diversified economy on this side of the state; However, more than half of the state's population lives in the Detroit metropolitan area and the industry revolves around the auto industry, so the good news is that Now that car and truck sales are through the roof, unemployment in the state of Michigan is below the national average we are at 5% but what will happen during the next recession when people stop buying cars and trucks and the good news there too is that if you look at the demographics , I forgot to mention this, there has never been a better time to be in college and enter the workforce because if you look at the demographics of the workforce, the largest composition of the US workforce right now is the baby boomers. , people born between 1945. 1950, 1955 if you do the math, those people are 60 years old, they will be 70 years old if they are not there yet and they probably won't be working until their 70s, 80s and 90s.

My point is when I entered the workforce , they were a group of baby boomers, but they were in their 30s and 40s and I was at a competitive disadvantage because what are the chances of me getting promoted before those people who are 5, 10, 15, 20 years old? I have a lot of work experience and they aren't going away anytime soon, so when you enter the workforce, my prediction is that if you make a lot of good decisions, you will advance and move up into jobs faster than any other generation in America. History has done it because the largest segment of our workforce is going to disappear, so you're going to get a promotion at 25, 30, 40 that might have taken me until 55, 60, 65 because of all those baby boomers. in the workforce, so I think demographically there's never been a better time, specifically if you were to identify one industry, automotive, which Michigan's economy revolves around, they've gotten rid of the dinosaurs and the baby boomers if We look at a company like General Motors.

They are a group of twenty-somethings and thirty-somethings, the culture has changed because now there is a group of young people, so I think it is an exciting time to be in the state of Michigan, to be a college student and to graduate because of the opportunities for the first For the first time in over ten years, more than half of our students who graduate from the supply chain program stay in the state of Michigan. I went through a period of 10 to 15 years where I had to watch more than half of our in-state students leave. the state of Michigan because the state of Michigan didn't have jobs, but everywhere else did, that's changed.

It's good to see that coming back and I think the auto industry has shed a lot of its fat, so long term we should be just OK, when we go through the next recession again. Obviously I'm a GM guy, but they probably have ten billion in cash right now so that when they go through a recession they don't have to go out of business and they don't take out loans. money from the banks that they can spend, they lose a little money and still have billions available so when car and truck sales pick up they reload and reinvest so going back to this example I would say if you sell something for a dollar If you look at manufacturing companies that are in saturated, super-competitive industries, that's what they have left over when all is said and done.

Now you're thinking why on earth you would be in that business. Well, a company like General Motors, yes, they will sell. something for a dollar, they might have one, two, three cents left over, but they make a hundred and fifty billion dollars a year in annual sales revenue, so when you look at the money they have left over, they might have ten billion dollars in cash when all is said and done after a year so they can still make a lot of money just their margins aren't very good however that is unacceptable to any investor and anyone running a company that can't sell something for a dollar. pay all your bills and you only have a penny left over, but in saturated and competitive markets that are globally competitive, this is the nature of things, so my question is let's say you're the CEO and you work for a company that sells something for a dollar and you only have one, two or three cents left over, what can you do to earn more money?

Think about it from a marketing standpoint, if I sell something for a dollar and have a penny left over, what could I do to make sure? that I have two cents or three cents left over, yes, okay, which implies a competitive global bloodbath in saturated industries, there is not much room for maneuver based on supply and demand conditions and competition to necessarily increase prices, but that's definitely a strategy if you look at it. In the automotive industry, what are your best margins on products that have brand and image recognition? When you buy a Cadillac, they have incredible margins on Cadillacs.

Why do those things sell between 50 and 100 thousand a year? What you don't realize is Cadillac, Chevy, GMC and Buick manufacture those vehicles in the same place at the same time using the same resources, the same people, the same tools and equipment, what they do is offer different options and packages that are put at the end and say, oh, this is a different vehicle, it's a Cadillac, we're going to make 15k here, whereas with the GMC we barely make any money, but if you love that product, maybe in the future you'll buy the one that makes us 15k yes what could we do in this situation?

Do you agree that if you double your sales you can make more money? See if I see something for $1 and have a penny left over. If I come to my company, we do something magical where we double sales. Would you agree that would help us make more money, but do you think that's what companies like John Deere, IBM, Boeing, General Motors and Chrysler are doing? Do you really think they're sitting around saying, let's double sales revenue next year, let's double it. market share let's double our volumes they are sitting around saying how can we stop market share from shrinking rather than necessarily increasing so these companies are in a really bad situation because they have to make more money but they can't make more money selling more things because the markets are very saturated and very competitive, so if you are in a situation where you cannot increase sales revenue to make more money but you have to make more money, how can you make more money (decrease costs )? exactly, you cut costs.

Well, that's what these companies are obsessed with, they want to do things better, faster and cheaper. Look at it this way, if you go into that company and say, let's double the sales revenue, it's going to be a headache. a lot of work