Supply Chain
Update
Grainger Center
for Supply Chain
Management
Fall 2009
SUCCESS in International
Case Competition
The team, pictured here: Jennie Meresak, Chris Gajdostik, Mark Adkins,
Ajay Balasubramaniam, Pete Lukszys, Amber Sleichter, and Samy Affo.
The Grainger Center’s director of applied projects and senior lecturer in
marketing, Pete Lukszys, was key in coordinating Wisconsin’s participation and
accompanying the team as faculty representative.
INSIDE
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A team of Grainger Center MBA students brought home a
second-place trophy and a $2,000 prize in this year’s Sam M.
Walton College of Business International Graduate Logistics
Case Competition held at the University of Arkansas. The
Wisconsin team placed second in the 11-team competition
(and first among U.S. teams), which included some tough
competition from Penn State, Michigan State, the University
of Arkansas, Brigham Young University, and the University
of Minnesota, among others. The prestigious event brings
together graduate students from the world’s top supply chain
management and logistics programs and includes tremendous
networking opportunities. Teams analyzed a case study about
Braiform, a company that partners with retailers and garment
manufacturers to provide retail garment hanger solutions. The
team recommended ways to sustainably support growth of the
company’s hanger reuse program and presented at the Sam’s
Club corporate headquarters in Bentonville, Arkansas, to a
panel of executives from Procter & Gamble, Wal-Mart, General
Mills, Unilever, FedEx Freight, Pfizer Consumer Healthcare, J.B
Hunt Transport, and many more. The Wisconsin team’s solution
involved relocating one of Braiform’s U.S. distribution centers
to provide transportation savings and leverage intermodal
transportation. Darmstadt University of Technology (Germany)
won the competition, and third place went to a team from
Chalmers University of Technology (Göteborg, Sweden).
Meet the Class of 2011
Supply Chain Management Students Elected to Key
Leadership Positions
The Grainger Center Difference
Two New Executive Advisory Board Members
2009 Executive Advisory Board Meeting
Supply Chain Frontiers: Nontraditional Applications of Supply Chain Principles
Management of Risk and Uncertainty in Global Supply Chains
Reports from the Field: Summer Internships 2009
Kelly Ketchum Memorial Alumni Scholarship and Fundraising Update
Superior Customer Service through Supply Chain Management at Grainger-Mexico
Fall Site Visit: Kraft Foods/Oscar Mayer
Supply Chain Management Undergraduate Specialization
Grainger Center Alumni...Where Are They Now? Scott Pollyea, MBA 2004
2009 Placement Report
Orientation
2009
In addition to the usual debriefing,
Grainger Center students enjoyed a
panel discussion with alumni about
what to expect during their two years
in the program. The panel gave advice on
adjusting to graduate school, managing
the workload, staying organized, and
landing internships.
First- and second-year supply chain
management MBAs met officially for the
first time on a cruise of Lake Mendota.
Meet the Class
of 2011
And, as always, students, faculty, and
staff met at the home of Executive Director
Jack Nevin for an evening of great food
and conversation.
Mark Adkins
After graduating
from the
University of
Memphis with a
bachelor’s degree
in logistics and
supply chain
management,
Mark worked at
Cleveland Golf
as a buyer/
planner and as a master scheduler. He was
responsible for the scheduling of golf club
assembly and ensuring optimal inventory
levels. After his time at Cleveland Golf, he
took a position at APM Terminals in Los
Angeles, where he was in operations
management, supervising the loading and
unloading of container vessels. He was
responsible for supervising longshore
labor, interacting with vessel crew, and
coordinating with terminal management to
ensure the operation ran smoothly. Most
recently, Mark worked for World Class
Logistics Consulting as a project manager,
where he was responsible for projects
addressing various supply chain issues for
different companies. Mark hopes to gain a
complete understanding of supply chain
management and apply his knowledge in
industry to become a leader in supply
chain management.
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Kwame
Adu-Bonnah
Kwame has
seven years of
cross-cultural
industry
experience with
progressive
management
roles. After
graduating with
a mechanical
engineering degree from the Kwame Nkrumah University of science and technology
in Ghana, Kwame worked for two and a half
years in Ghana before coming to the United
States to earn a master’s degree in industrial
engineering and operations research at the
University of Massachusetts, Amherst. After
graduation, Kwame joined Chemdesign
Corporation as maintenance manager
in charge of maintenance operations
for four production plants and the
associated auxiliary buildings. He managed
the maintenance personnel, maintenance
service contracts, and equipment spare parts,
and he planned scheduled and controlled
maintenance jobs. Kwame also worked on
cross-functional teams, including quality
control, process hazard assessment, and
safety teams. In his next role as principal
project manager, Kwame negotiated,
ordered, and tracked capital equipment
while working closely with the purchasing
department; managed the $2 million
maintenance and engineering operations
budget with reporting responsibilities to
upper management; worked in several
cross-functional teams; served as engineering
liaison between Chemdesign and its clients;
and negotiated and managed several service
contracts and jobs. In December 2006,
Kwame was selected to work with the upper
management team at Chemdesign that
developed its performance matrices and
carved a new culture for the company.
Kwame is interested in global strategic
sourcing and contracts negotiations and
optimization of supply chain operations.
Maria
Gabriela
Albornoz
As a
manufacturing
engineering
intern at a Baker
Oil Tools-Baker
Hughes
manufacturing
facility in
Maracaibo,
Venezuela, Maria was responsible for
analyzing manufacturing variances to improve
manufacturing processes. As a production
intern, she was responsible for designing and
implementing a methodology that allowed
shop floor personnel to post production times
to SAP at every stage of the manufacturing
process to improve planning and production
coordination. She identified root causes of
delays in workloads as a way to reduce
work in process and to adjust routing
standard times to real times. She developed
and established a productivity metric
that allows management to measure
plant performance. After two years in
manufacturing, Maria was a price and
quote analyst in the operations district of
Baker Oil Tools-Baker Hughes. In this role,
she was responsible for controlling the initial
and final stages of all tenders, proposals, and
quotations through SAP, and she updated
marketing statistics of all companies/
customers to ensure responsiveness and
assure market share of product lines.
Maria earned a bachelor’s degree in
industrial engineering from the University
of Zulia, Venezuela, in 2005. She is
particularly interested in inventory
management and distribution.
Tim Breitag
Tim joins the
Grainger Center
after working for
five years for
Progressive
Insurance in San
Jose, California.
He held a variety
of roles, starting
as a claims
representative
and leaving the company as a managed
repair representative. He was responsible
for monitoring vehicle repairs completed
through Progressive’s Direct Repair shops
and other repair facilities in the East Bay.
This entailed monitoring vendor relations,
negotiating repairs, completing quality
assurance inspections of repair quality,
confirming adherence to company and
industry standards by vendor shops, and
owning the results of customer experience
and satisfaction surveys. Tim was selected
to be a member of Progressive’s Accelerated
Leadership program, an 18-month rotational
program to identify and train future
management, which allowed him to take
on several leadership roles within the
organization and perform management
duties with his direct reports and the branch
as a whole.
Tim graduated from the University of
Wisconsin-Madison in 2003 with a degree
in consumer science with an emphasis in
consumer affairs in business. Shortly after
graduating, he moved to England and spent
seven months working in London and
traveling as much as possible around Europe.
Outside of class, Tim enjoys mountain biking,
golf, and reading.
Phil Fritz
Phil has five
years of work
experience in
outside sales and
global logistics
management.
While working
in the New York
City office of
CH Robinson
Worldwide,
Phil was responsible for coordinating
international multimodal transportation
and logistics services to global clients. He
marketed the company to senior-level decision
makers who managed inbound and outbound
enterprisewide supply chains. Phil generated
new revenue by qualifying leads, making initial
contact, analyzing demand/supply side logistics
functions, developing and presenting
proposals, assembling customer-specific
operations teams, and overseeing project
integration while managing all client-facing
relationships. Phil also worked to establish
a domestic outside sales team at the
Philadelphia CH Robinson office, focusing
his efforts on Fortune 500 business prospects.
His most recent project involved managing
the massive rollout of a best-selling Harry
Potter book.
Prior to his work with CH Robinson, Phil
pursued military officer training at the
Maritime College in New York City,
where he completed his master’s degree in
international transportation management. He
has also sailed commercially with Maersk Lines
Limited and the Military Sealift Command
during Operation Iraqi Freedom. Phil
earned his bachelor’s degree from the Rutgers
Business School and, upon graduation, went
on to establish an investment and insurance
brokerage franchise in the Seattle area,
proudly serving a client base of career military
officers and senior enlisted personnel. Phil’s
primary area of interest is in sustainable
supply chain management. Phil is a nationally
competitive sailor and volunteers at a local
community-supported organic farm.
Steve Harris
Steve joins the
Center with
13 years of
professional
experience in
the technology,
financial services,
and government
sectors. He
started his career
in international
trade with the U.S. Department of
Commerce, then shifted into the private
sector and spent seven years as an industry
analyst at IDC, a leading technology market
research firm, where he managed the firm’s
Internet telecommunications research area
and built a new research program from
scratch to become the company’s most
profitable telecom program within three
years. In 2005, Steve joined Discover Card,
where he was hired to build and manage a
research and analysis unit and helped teams
incorporate better information into
the decision-making process concerning
new product launches, business process
streamlining, and technology deployments.
Steve earned a bachelor’s degree
in economics and international relations
from the University of Wisconsin-Madison
and a master’s degree in international relations
with a concentration in international business
diplomacy from Georgetown University. Steve
lived and worked in Germany and enjoys
international travel.
continued on page 4
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Jennie Meresak
Jennie has seven
years of hands-on
experience in
marketing,
operations, product
development, and
sales management
in the consumer
products and
technology
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industries. For the past five years, Jennie held
the position of director of marketing and
operations, where she was responsible for
the marketing and operations functions of
a start-up multimedia children’s brand,
including product development, sales and
channel management, sourcing, and
production. She led development of two
award-winning products from concept
inception through market launch and
managed the profitable migration of
manufacturing from Michigan to China.
Jennie studied finance and biology at
Washington University in Saint Louis and
graduated with a BSBA in 2002. She would
like to put her skills and background in
science to use in the biotech, medical
device, or pharmaceutical industries,
preferably in a global capacity. She lived
and worked in Edinburgh and has traveled
widely. Outside of work and school, Jennie
enjoys traveling, playing tennis, riding her
bike, and cheering on the St. Louis Cardinals.
Kyle Nakatsuji
Kyle joins the
Center after
completing his
first year in the
University
of Wisconsin Law
School as a part
of the JD/MBA
program. In the
Law School, Kyle
was exposed to the
foundations of the legal system, including
contract law, property law, and trial practice,
and through these studies became interested
in the interrelation between law and
business. The quest to understand the
dynamics of this complicated relationship,
as well as the spectrum of business
management, was what led Kyle to the
Grainger Center.
Prior to law school, Kyle received a BS
degree in political science from the
University of Wisconsin-Oshkosh. As
an undergraduate, he was a captain of
the university’s football and track teams
and also played football for a year at
UW-Madison. This passion for athletics and
competition remains a large part of his life,
and Kyle still enjoys many sports, including
football, golf, and boxing.
Yuxing (Hester) Wang
Hester has three
years of experience
in international
business and
manufacturing,
working as
Blue Ridge
Home Fashions’
chief order
coordinator for
North American
accounts and the
primary contact person for China factories.
Hester was responsible for sourcing
packaging materials, coordinating new
orders, and monitoring production and
shipping status. She ensured smooth
deliveries of more than $80 million by
diligent communication with three factories
to mitigate any problems related to order
manufacturing. As the liaison between the
Los Angeles and China facilities, Hester
successfully handled various foreign
customer visits and third-party factory audits
and evaluations and helped set up supply
chain operation systems such as a product
labeling system and an order placing and
tracking system, and she participated in a
warehouse space allocation project.
Hester earned a bachelor’s degree in business
English from the Shanghai Institute of Foreign
Trade, a well-known institute in China that
specializes in international business. Hester
earned a Best Student Scholarship in every
academic year, developed a great interest in
import and export practice, and laid a solid
foundation for her subsequent engagement in
international business.
Supply Chain Students
Elected to Key
Leadership Positions
in the Wisconsin MBA
Continuing the Grainger Center’s
tradition of leadership in the Wisconsin
MBA, three students were elected by their
peers to hold key leadership positions in
the program.
Amber Sleichter was elected as the
Technology Communications Chair of
the Graduate Business Association (GBA)
for 2009. In this role, Amber manages all
external communication from the GBA
and the MBA student organizations to the
faculty, staff, and student body. She also acts
as the Web master for the Grainger Squire,
a weekly Internet publication that has
become essential to the cohesion of the
student community.
Kemllen Lee was elected as the President
of the Graduate Business Association for
2010. In this role, Kemllen oversees the
activities of the GBA, supports the MBA
student organizations, and maintains regular
communication with the administration
of the Wisconsin School of Business in an
effort to continuously improve the unity
among the student body, faculty, staff,
and administration.
Jennie Meresak was elected the MBA
Class of 2011 Student Representative on
the Master’s Committee for 2009-2011.
The Master’s Committee is comprised of
faculty, staff, and students and helps make
important decisions regarding program
curriculum. In this role, Jennie will be able
to share the ideas and opinions of her class
on academic matters related to the MBA
program such as curriculum,
admissions, student services, placement
and assessment.
Bruce Fritz
Kemllen Lee
Kemllen
graduated cum laude
from Hunter College
with a BS degree in
physical education
with an emphasis on
health and nutrition.
Upon graduation, she
joined the Brearley
School faculty, where
she honed her
team-building and project management skills
by developing initiatives that resulted in
improved working conditions for the staff
members of the school and greater
community service opportunities for the
students. Throughout her 11-year tenure,
Kemllen’s passion for health and
community continued to grow, and, in 2007,
she began to work with Hawthorne Valley
Farms, where she helped generate new
business and increase revenue by developing a
successful marketing strategy that targeted the
Hispanic community. Later that year, during
her teaching sabbatical, Kemllen was offered
a brand management and food production
internship with Revolution Foods in northern
California, where she promoted the company’s
new branded product line to store marketing
strategists and team leaders of Whole Foods’
northern California region. Through these
experiences, Kemllen became interested in
how the supply chain and product
management can improve a community’s
access to healthier products. Kemllen is
looking forward to leveraging her experience
in teamwork and education with the skills
she acquires from the Grainger Center to
lead supply chain projects in the food and
health industry.
Connection, Leadership, Innovation, and Community:
Four Values That Define the Wisconsin MBA
The Wisconsin MBA is designed to put
professionals out in front in their chosen
fields. It is composed of outstanding
programs in highly focused career
specializations in key areas such as
supply chain management. The program
is about knowledge creation and
providing transforming educational
experiences. It offers real focus and real
success to students.
The Grainger Center for Supply Chain
Management at the Wisconsin School
of Business is one of the few endowed,
university-based centers specializing
in supply chain management in the
United States. Its unique curriculum is
cross-functional and takes an integrated
process view of supply chains,
including marketing, sourcing, logistics,
operations, and customer service. It is
a personalized and industry-focused
program supported by companies
known for supply chain excellence.
Students connect with and learn from
real-world supply chain leaders and are
part of a strong, close-knit community.
In addition to its MBA program, the
Center also offers an undergraduate
specialization and assists in the efforts of
faculty research in the field.
The Center was established in August
1991, with a generous gift from The
Grainger Foundation of Lake Forest,
Illinois. The gift was made to recognize
the increasing importance of supply
chain management and the industry’s
growing need for leaders with advanced
education in the area. The contribution
by The Grainger Foundation allows the
Wisconsin School of Business to fulfill
a significant need in graduate business
education.
During the summer of 1992, the Grainger
Center for Distribution Management
became operational. The first class of
students graduated from the program in
the spring of 1994. In July 1999, it was
renamed the Grainger Center for Supply
Chain Management. Since its genesis,
the Center has graduated 133 students
who have gone on to become business
leaders across the industry, in firms large
and small.
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The Grainger Center
Bruce Fritz
Difference
The Center offers a unique promise of career and leadership development for:
»»individuals who are already working in
supply chain management and want the
best training and connections possible in
order to lead
»»individuals who want to manage the
whole business (not just one piece such
as marketing or logistics)
»»individuals looking for a career path where
they can leverage both their analytical
capabilities and their interest
in relationships and systems
This promise is fulfilled through delivering results in four key areas: an integrated learning environment, industry partnerships, personalized attention in a close community, and 100% placement.
Integrated Learning Environment
The curriculum is cross-functional, applied, and collaborative, allowing students to learn about supply chain management in an integrated business framework from renowned faculty with expertise in supply chain management and other crucial business disciplines.
Core supply chain courses include:
• Strategic Global Sourcing
• Logistics Management
• Operations Research
• Marketing Channels
• Enterprise Systems and Supply Chain
Management
• Seminar in Supply Chain Management
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Electives may be chosen from multiple
disciplines, including finance, marketing,
management, operations, engineering,
sustainability, and entreneurship.
The Center also offers an extensive applied
learning program.
Executive speaker series: Top business
leaders visit campus regularly to share their
real-world experience.
Global experience: MBA students have
opportunities to travel abroad to meet with
companies and learn about their global
operations. In January 2009, 14 students
traveled to Brazil.
Site visits: Students learn about supply chain
practices firsthand by visiting various U.S.
locations. Center students toured the facilities
of Johnson Controls in Milwaukee last spring
and Kraft Foods/Oscar Mayer in Madison this
fall (see page 16.)
AMR Research Briefings: Senior executive
analysts from AMR Research draw on their
deep industry experience to share success
stories and challenges in presentations about
the latest market findings and analysis on
supply chain management issues, trends,
and developments. AMR Research is the
#1 advisory firm focused on the intersection
of business processes with supply chain
management and enterprise technologies.
Industry Partnerships
The Center has deep ties to industry. Its extensive network of corporate partners provides real-world perspective that enhances the curriculum and applied learning program, and provides invaluable career guidance to students.
Close Community
Students experience the best of two worlds:
the resources of a large, world-class university
and hands-on, personalized attention made
possible by the in-depth resources offered
by the Center. Each student receives
personalized career and academic advising.
Students are connected—directly and
personally—with an extensive network
of industry executives, alumni, corporate
partners, and faculty. Students receive
personalized guidance from this network
throughout their time in the Wisconsin
MBA program.
With an entering class each year of
between 10 and 20 students, supply chain
management MBA students form close ties
to each other and to the faculty and alumni
dedicated to the supply chain management
program. The Center offers generous financial
aid packages to qualified students, including
fellowships, assistantships, and scholarships.
100% Placement
Supply chain management talent is in high
demand, as the Center’s record of 100%
placement for summer internships and
full-time employment reflects. (See placement
report on back cover) Our graduates achieve
quickly and notably. Average starting salaries
are consistently the highest among peer
schools, ranging from $80,000 to $110,000.
A few facts to consider about the value of the
program: Center students are funded for at
least one year of their MBA experience, and
they typically double their pre-MBA salary
upon graduation.
Executive Advisory Board
The Executive Advisory Board is comprised of
senior executives at leading firms that are renowned
for supply chain management excellence. Board
members provide strategic and curricular guidance,
participate in applied learning programs, and
provide placement opportunities for students.
Karl Braitberg
Vice President,
Demand Management,
Planning & Customer Value
Cisco Systems, Inc.
John Kenny
President
FreeFlow
Steve Loehr
Vice President, Client Enablement
IBM Global Operations,
Integrated Supply Chain
Kevin O’Marah
Chief Strategy Officer
AMR Research
Jim Ryan
Chairman, President,
and Chief Executive Officer
W.W. Grainger, Inc.
Jim Shuman
Senior Vice President,
Materials Management
Genzyme Corporation
Brian R. Smith
Director, Logistics and
Indirect Procurement
Harley-Davidson Motor
Company
Eric Smith
Vice President,
Supply Chain
Emerson Electric
Corporation,
InSinkErator Division
Thomas F. Pyle, Jr.
Chairman
The Pyle Group
Doug Raftery
Former Vice President,
Customer Business Development
Procter & Gamble
Home Services
Stu Reed
Senior Vice President and
President, Home Services
Sears Holdings Corporation
Gray Williams
Vice President,
Worldwide Supply Chain
Logitech
Carolyn A. Woznicki
Vice President, Global
Procurement
Johnson Controls, Inc.
The Grainger Center is pleased to announce
the addition of Eric Smith and Kevin O’Marah
to the Executive Advisory Board.
Kevin O’Marah is chief strategy officer for
AMR Research, a firm that provides
subscription advisory services and peer
networking opportunities to supply chain,
sustainability, and IT executives in the
consumer products, life sciences,
manufacturing, and retail sectors. It is the
world’s leading independent research firm
focused on the global supply chain and its
Kevin O'Marah
supporting technologies. Kevin has led AMR’s
global supply chain research since 2000, publishing seminal work
on sustainability, product innovation, and the AMR Research Supply
Chain Top 25. Prior to joining AMR Research, Kevin worked on
supply chain projects in a variety of industries, including
telecommunications, semiconductors, and chemicals. As a vice
president at Oracle Corporation, he focused on supply chain and
product data management strategy. He was previously a strategy
consultant in London, Washington, DC, and Warsaw, Poland.
A graduate of Boston College, Oxford University, and Stanford
Business School, Kevin speaks at industry events and has been
featured in business publications including the Financial Times,
Fortune, BusinessWeek, the Wall Street Journal, CNBC Squawk Box,
and Bloomberg.
Eric Smith is a 1998 alumnus of the Grainger
Center and is vice president of supply chain
for the InSinkErator Division of Emerson
Electric, a worldwide leader in power
conversion and wireless technology for the
industrial, residential, health care, and IT
markets. Eric has responsibility for the
organization’s global procurement, logistics,
order fulfillment, materials planning, and lean
Eric Smith
supply chain activities. His responsibilities
encompass seven worldwide sites and managing a staff of more
than 80 individuals. Prior to joining Emerson in 2008, he served as
director of supply chain operations for Placon Corporation. He has
over 20 years of experience in the consumer products and packaging
industries, holding various engineering and management positions at
Rayovac, Ingersoll Rand, Uniek Inc., and Placon.
Eric holds BS and MBA degrees from the University of
Wisconsin–Madison. He is active in numerous professional
organizations and serves as a board member for both InSinkErator
and the Racine Theater Guild. Eric and his wife reside in Madison
with their two children.
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Executive
Advisory Board Meeting
The Grainger Center’s annual Executive
Advisory Board meeting was held on
October 15, 2009. Second-year supply
chain management MBA students made
presentations to the board about their
summer internship projects, providing a
unique and valuable opportunity to
showcase their knowledge and achievements
to top supply chain management executives.
The day also featured ample opportunities
for networking and socializing with board
members and Center alumni and faculty.
For many, the highlight of the meeting was
the panel convened during the afternoon
session, during which board members
discussed the impact of the recession on
their supply chain operations. They shared
some of the tactical and strategic responses
of the supply chains at their companies to the
unprecedented and unanticipated changes
in economic conditions and demand over
the past year. They were also asked, “Do
you think these changes are temporary or
permanent?” Several themes emerged in the
discussion, including:
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» Supplier risk
• Most panelists mentioned that financial
strains in the supplier network triggered
stress testing for significant suppliers
to determine their financial viability
• Tier-1 and tier-2 suppliers were
investigated for financial viability
• While no one injected cash into a
critical supplier, a couple of firms
accelerated payments to important
suppliers to help ensure their viability
» Acceleration of contract renegotiations—
a few firms changed their renegotiation
time frames from yearly to more
frequently (to monthly, in one case).
» Reduction in inventory—many panelists stated that they reduced their inventory
levels to reflect reduced demand and achieve cost savings.
» Cash conservation was the overriding
priority for most firms. Many stated that they paid suppliers less promptly in order
to conserve capital.
» Private label is growing as customers
seek greater value.
» Companies are investing in sustainability—
for environmental reasons and to reduce current costs through less bulky
Supply Chain Frontiers: Applications of Supply Chain
Principles to Nontraditional Processes
packaging, reduced waste in production, and lower power consumption.
» Head count reductions—reflecting general reductions in staffing, supply chain personnel declined by up to 40 percent in some firms.
Several firms appeared to be carefully
balancing competing priorities. For instance,
while reducing costs almost across the
board to conserve cash, most board member
companies were increasing their focus on
customer needs to improve customer service.
Many of the executives also stated that their
companies were positioning themselves
to take advantage quickly of improved
economic conditions by relocating
distribution centers and logistics networks.
All of the panelists seemed to agree that most
of the changes implemented over the course
of the past year were permanent. Although
they anticipated a slow improvement in
economic conditions, many of the firms
represented on the Executive Advisory
Board believed they would continue their
efforts at cash management, improved
inventory management, and periodic review
of critical suppliers.
by Caryl Knutsen
On the day after the Executive Advisory Board
meeting, several board members and alumni
joined Center students, faculty, and staff for a
presentation by Kevin O'Marah, chief strategy
officer of AMR Research, and Steve Loehr,
vice president of client enablement for IBM
Global Operations’ Integrated Supply Chain
Management. They led a discussion of what
it means to be a globally integrated enterprise
and what that means to the supply chain
function. To illustrate the wide reach of supply
chain management and its change from a
functional discipline to a business discipline,
Kevin delved into nontraditional applications
of supply chain concepts in the realms of
health care, entertainment and media,
and sustainability.
Steve provided some background and
examples of how IBM has extended supply
chain principles to services and labor. Space
constraints allow this article to touch on only
a few key points of the information-packed
session. Kevin’s discussion of the health care
industry began by identifying a number of
issues that plague the industry. Over the last
few decades, health care and life sciences
companies have built silos both tall and wide.
As a result, the value chain lacks visibility,
processes are disconnected and suboptimized,
a network operations strategy is absent, and
trust and communication between providers
and payers are rare. Without transparency
and collaboration, inefficiencies, waste, and
excess cost will continue to run rampant in
the value chain. Furthermore, analysts at
AMR Research have found that there is
great confusion about who the customer is
(patients? providers? doctors? pharmacies?).
Top issues confronting hospitals are financial
challenges such as profitability and growth,
caring for the uninsured, and the rising cost
of supplies, compounded by a general
unawareness of how dissatisfied many
patients and doctors are. Hospitals
tend to not understand the meaning of
supply chain management and spend very
little on technology to support supply
chain management processes. Patient
safety always trumps cost in driving
technology investments, so hospitals
need to incorporate both these factors
when designing their technology initiatives.
To provide high-quality patient care at
optimal economic cost, the health care
industry needs to link strategy to value in the
health care value chain through bidirectional
visibility, enabling technologies, building
sustainable collaborative relationships,
business process innovation, and alignment
in terms of both metrics and a shared vision
and goals.
In contrast to the low visibility and
not-so-strategic use of information that
characterize the health care industry are the
extremely strategic use of information and
high visibility of the media and entertainment
industry. Kevin’s presentation continued with
some observations about this sector and the
supply chain management challenges therein.
The total economic output of the media and
entertainment industry outpaced agriculture
decades ago and is likely to outpace
manufacturing in the near future. The supply
chain in this industry is based on
consumer-driven information content,
and the economics are very different from
traditional supply chains. The creation of
the product—information—is a one-time,
virtually cost-free enterprise; consumption/use
of the product is indefinite, and content
is often freely shared among users. There
is so much content that providers and
distributors are losing control of the audience,
and it is nearly impossible to put a price
on the content and control it. Some of the
supply chain challenges regarding content
and information include shelf life,
componentization, interoperability, and
how to value the assets. Kevin concluded
with an interesting observation about the
intersection where products and intellectual
property meet, where information and an
intellectual property stream are embedded in
a physical product (think Nike and the Walt
Disney Company).
Continuing with the theme of nontraditional
supply chains, Steve discussed IBM’s
transformation from a hardware company
to an information and technology service
provider. Today, the company is positioned to
help clients transform their businesses in the
midst of rapid change; apply supply chain
expertise to other parts of its own business;
and lead governments and businesses to
imagine and build a smarter planet. One example of how IBM is applying and extending
supply chain principles to transform business
is its Workforce Management Initiative (WMI),
which looks at the entire labor pool at IBM
as a resource and applies supply chain design
best practices to get the right person, at the
right cost, in the right job, at the right time.
Providing central oversight of strategy,
measurements, and investments, WMI
optimizes talent pools and allows global
visibility of the expertise across all
business units. It uses comprehensive
professional profiles to provide precise
staffing and essentially facilitates a
global talent exchange. IBM has quantified
some real business results: increased client
satisfaction, faster and more effective bid
response, avoidance of unnecessary hiring
and use of subcontractors, and more than
$1 billion in savings. Another nontraditional
application of supply chain management
principles was a project to solve a huge
traffic problem in Stockholm, Sweden.
The goal was to use technology to reduce
congestion, improve public transport, and
alleviate environmental damage. The system
improved both congestion and overall
quality of life in the city. Results included
a 25% decrease in traffic, a 60% boost for
inner-city retailers, and a 40% drop in
greenhouse gas emissions in the city.
9
Management of Risk and Uncertainty
in Global Supply Chains
By David Poytinger
Keenan D. Yoho, assistant professor at the Naval Postgraduate School in Monterey,
California, led the first of the Center’s applied learning sessions this fall. His presentation
on the management of risk and uncertainty in global supply chains highlighted some of
the major issues facing global supply chain managers today. Keenan took big-picture
supply chain issues and made them accessible by using real-life case studies. One case
study in particular, which looked at some of the major problems facing the production of
Boeing’s new 787 Dreamliner, helped students to understand the importance of managing
risk appropriately.
The story of the Dreamliner is commonly known. The plane that was supposed to
revolutionize the airline industry with its 50% composite materials construction, fuel
efficiency, and innovative production processes has been plagued with constant delays that
are mostly attributed to breakdowns within Boeing’s supply chain. Looking carefully at some
of the major hurdles Boeing had to overcome, Keenan pointed out areas where more efficient
risk management could have been used to proactively identify areas of concern within both
the design and production processes. Supply shortages, components not produced to
specifications, and component defects were all problems that resulted from ineffective
management of the global supply chain.
Using the Dreamliner case study as a base from which to work, Keenan explained how
risk and uncertainty could have been more appropriately accounted for in the design and
production processes. He highlighted some key questions facing not only Boeing, but also
global supply chains around the world:
» How should consideration of risk be incorporated into the product and process
design decisions?
» How should we consider risk and uncertainty in execution and performance?
Failure to account for such risks can have ramifications beyond simple delays in the
production. Competitors are able to capitalize on lost sales with competing products.
Investor confidence begins to wane, and stock prices take hits. Suppliers struggle to keep
up with production as payments are delayed and, in worst cases, are unable to produce
necessary components to complete production.
A key learning from the presentation was how to segment risk to differentiate critical
components of any process from those that are only ancillary. Applying these skills to real
situations is easier said than done, but expert guidance, as shared by Keenan, make the
prospect of success more likely.
10
Reports from the Field:
Keenan Yoho
summer internships 2009
>
A
ll supply chain management MBA
students found valuable internship
positions at leading companies in
incredibly diverse industries, ranging from
biotech in Boston to high-tech in Silicon
Valley, with mining, beer, transportation,
medical devices, and more in between.
What the projects all had in common were
strategic improvements in business processes.
Samy Affo
Shure, Incorporated
Niles, IL
As a supply planner intern
on the operations team at
Shure, Samy worked on
two main process
improvement projects for
new product introduction teams. His primary
project consisted of standardizing supply chain
tasks, milestones, and processes for new
product introduction. He developed metrics
and detailed process documentation for
each milestone, and he worked with supply
planners, SAP analysts, and engineers and
researched best business practices to complete
the project. The main benefits of his project
were increased visibility, consistency, and
measurability of supply chain tasks during
new product launch processes.
Ajay Balasubramaniam
Genzyme Corporation
Framingham, MA
As an enterprise resource
planning (ERP) program
summer intern at one of
the world's leading
biotechnology companies,
Ajay worked with multiple teams, including
master data management, system architecture,
interfacing, and compliance and validation.
The primary objective of his internship was
to understand and analyze the ERP
implementation process and suggest strategic
approaches for process improvements. Ajay’s
analysis concentrated on the feasibility of
having a quality assurance function for ERP
enhancements by considering costs and
benefits of having QA outsourced or performed
in house. Other recommendations included
defining a structure for the QA
function within the ERP framework and the
enterprise as a whole. Ajay presented his
findings to the senior leadership team and
enjoyed the experience of being involved in a
process improvement project.
Mark Dyer
Genzyme Corporation
Framingham, MA
As an intern in
Genzyme’s global
supply management
organization, Mark
worked on a variety
of projects, including the selection of an
enterprise resource planning integration
partner, a systematic sales and operations
planning process review, the formulation
of product allocation design plans, and the
integration of acquired products into the
formal Genzyme business processes.
During a major supply chain disruption that
included an unexpected and immediate loss
of production capacity, Mark worked closely
with the business units to move existing
inventories to markets where none existed and
helped to implement drug allocation plans that
would allow the maximum number of patients
to continue receiving uninterrupted treatment.
Due to the rapid pace of growth at Genzyme,
the global supply management organization
determined that a new ERP system would be
necessary to continue to effectively satisfy
patient demand. Mark was part of the team
that assessed competing bids, determined
whether the potential systems could meet
Genzyme’s needs, and completed the
statement of work that will guide the final
implementation over the coming months.
Chris Gajdostik
Logitech
Fremont, CA
Logitech’s
worldwide
supply chain
department
has been working
to drive the statistical forecasting process with
sales data representing the outbound shipments
of distributors and retailers (sell-through) rather
than sales data that represents shipments into
the channel (sell-in). Chris’s project involved
analyzing European sell-through data to assess
its usefulness for statistical forecasting and to
find the optimal tradeoff between forecast
detail and forecast accuracy. In addition to
analyzing the optimal levels of detail and
accuracy, Chris discovered a higher level of
forecastability among certain channel partners,
countries, specific product categories, and
products representing the top 80% of sales
volume (using the 80/20 principle).
Terry Goeldner
American TV
& Appliance
Waukesha, WI
Terry interned
with the Logistics
and Distribution
Department of
American TV & Appliance, a Wisconsin-based
mid-level retailer that sells furniture, TVs,
and appliances in five states throughout the
Midwest. He analyzed American’s recycling
program, including the recycling of appliances,
bedding, electronics waste, and TVs. In
particular, Terry reviewed the initial
implementation and performance of American’s
new TV and E-waste recycling program. He
collected and evaluated data on operational
procedures and cost structure, identified and
verified partners, and exposed potential legal
risks for management to review. The recycling
effort will be used to help American develop
a new marketing platform featuring its “green”
initiatives while being cost neutral and
addressing growing market need among its
customers and its communities.
Gloria Guo
Logitech
Fremont, CA
Gloria worked on
two projects related
to forecasting and
demand planning in
Logitech’s worldwide
supply chain division. The first project was
driven by Logitech’s use of total point-of-sale
11
numbers to forecast, which can give skewed
forecasts for heavily promoted items. She
built a model to segregate normal run rate
sell-through with promotional activity uplift
so Logitech can drive its baseline statistical
forecast off of only base sales. Logitech
implemented the model and was very
pleased with the results. Gloria’s second
project involved retail analytics; the purpose
was to find sales patterns of Logitech products
at BestBuy, Staples, and Wal-Mart to
optimize Logitech’s stocking levels and
increase revenue. By building quantitative
models to analyze promotions, seasonality,
demographics, inventory availability, and
store display, Gloria was able to provide great
insights in these channels to facilitate Logitech
predictions of sell-through.
Andrew McMurdie
DIRECTV, Inc.
Engelwood, CO
Andrew worked as a
global supply chain
analyst in the supply
chain department
at DIRECTV. His
project was to analyze the global supply chain
and identify opportunities for optimization and
combined sourcing spend between DIRECTV
US, DIRECTV Latin America, and affiliates SKY
Mexico and SKY Brazil. Andrew worked closely
with manufacturers, the logistics provider, and
supply chain officers throughout Central and
South America to acquire the necessary data
for the analysis. He developed a landed cost
analysis that helped to identify the optimal
manufacturing locations for combined sourcing
and presented these findings, along with
his recommendations, to the supply chain
directors and senior executives. As a result,
his recommendations will be presented to the
other companies during the next global supply
chain summit.
12
David Poytinger
MillerCoors, LLC
Milwaukee, WI
In the packaging
division of
MillerCoors
corporate
procurement, David
worked on numerous projects that represented
significant value-adds to the organization. With
his largest project, David developed and
executed a $250 million RFP for fiber carriers
(think six-pack bottle carriers) with SAP’s
eSourcing application. Developed with the
goal of expediting expected synergies from
combining the legacy Coors and legacy Miller
pieces of the business, this represented the first
time the division used eSourcing to host an
RFP of significant size and scope. After
successfully executing the RFP in eSourcing,
David developed an event template for direct
materials within eSourcing with emphasis on
a supplier-centric approach. The template,
along with the new approach, is being used
as a model to develop future RFPs in the
packaging division.
Aaron Prevost
Life Technologies
Buffalo, NY
Life Technologies
(formerly Invitrogen)
is a global
biotechnology tools
company. Aaron
worked for the bioproduction group on an
internal product line realignment and pricing
project. The product line structure at Invitrogen
did not clearly define SKU responsibilities
for product managers, resulting in misaligned
incentives, duplication of product promotion
efforts, and metrics unreflective of the product
manager’s true effectiveness. Aaron’s
recommended structure reduced the sharing
of product line responsibilities and brought it
more in line with the rest of the company.
For the pricing project, Aaron studied the
competitive environment and how Invitrogen’s
product differentiated to determine the best
positioning for the company portfolio. For some
products, a price leadership position was
recommended to maintain and take advantage
of the GIBCO® brand equity. For other products,
a penetration pricing strategy was utilized to
maximize long-term profitability.
Richard Shtivelband
G.I. Liquor World
Brooklyn, NY
Motivated by a
personal desire to
help improve the
profitability of a familyowned store, Richard
spent the summer exploring supply chain management problems related to the
retail liquor store industry. His main project
focused on exploring how store owners could
make smarter merchandise purchasing decisions
from their distributors. He developed key
performance metrics and simulation models
that allow purchasing strategies to be tested
that store owners can use to make better
purchasing decisions. He is currently in the
process of developing a software tool that
incorporates the insights gained from working
on this project and hopes to work as a
consultant in this industry.
Amber Sleichter
Schneider National
Green Bay, WI
Amber interned
in Schneider
National’s van
truckload operations
line of business.
While Schneider goes through an extensive
companywide business systems transformation,
Amber was able to take full advantage of the
situation and tackle several significant projects
related to developing new performance
management processes, cost analysis, improving
bill of lading paperwork compliance, improving
forecasting accuracy, and implementation
plans for all recommendations. Most notable
was the end-to-end creation of a consistent
companywide driver associate performance
management tool that brought together key
performance metrics to give a holistic view of
individual driver performance in five key areas.
The new visibility the tool brought has enabled
Schneider to improve its management of
driver performance, achieve cost savings
through improved efficiencies, and it has
paved the way for performance-based
driver compensation.
Justin Spaeth
Boston Scientific
St. Paul, MN
As part of the
materials
management team
in the cardiac rhythm
management unit,
Justin was tasked with harmonizing material
handling, receiving, and shipping procedures
across the supply chain. Before this summer,
the processes surrounding incoming and
outgoing packages differed depending on
geographical location, and, during a recent FDA
inspection, it was strongly suggested that these
processes be governed by the same procedures
for each site. Justin was responsible for
assembling a cross-site team consisting of
members from Minneapolis, Ireland, and
Puerto Rico to analyze and harmonize
these procedures.
Emily Zhang
Bucyrus International
South Milwaukee,
WI
Bucyrus International
is a world leader
in the design and
manufacture of
high-productivity equipment for surface and
underground mining. As a global strategic
sourcing intern, Emily concentrated on supplier
strategic alliances and global sourcing projects.
She worked as a key member of the alliance
team on steel and LTL sourcing projects. With
careful and systematic formulation, calculation,
analysis, and comparison, the team filtered
top suppliers from hundreds of candidates all
over the world and focused on alliances that
involved collaboration rather than merely
exchange. Emily conducted price analysis and
supplier comparison, savings and coverage
calculation, profile review, and many other key
analyses. The steel supplier alliance
project and the LTL supplier alliance project
brought the company more than $23 million
in yearly savings.
Kelly Ketchum Memorial Alumni
Scholarship and Fundraising Update
A
survey last spring indicated
overwhelmingly that Grainger
Center alumni want their gifts
to continue to provide a Kelly Ketchum
Memorial Scholarship to an eligible
second-year student. This scholarship fund
was established in October 2003 to honor
Kelly Ketchum (1964–2003; MBA 2001),
who made an enormously positive impact
as a student with the Grainger Center.
The scholarship embodies two of the
Center’s greatest strengths: it is a tangible
demonstration of the commitment and
support of our devoted and active alumni
network, and it enables the Center to offer
attractive financial aid packages that help
the program compete for top MBA students.
Many thanks to the following donors and
matching organizations who have generously
contributed to this year’s scholarship:
Brad Blackman
Verda Blythe
Tim Buhl
Jake Dean
Allen Engel
Mingyuan Fu
Jeffrey Garrett
Christopher Grancher
Denise Graves
Rich and Sandra Haddad
C. David Hiller
Jeff and Maureen Hodgdon
Abhijit Indap
John Lehnen
Steve Lindsey
Pete and Kay Lukszys
Steve Medland and Susan Golicic
Richard Melby
Christopher Murphy
Tom Nicholas
Lisa Perronne
Brook Rucinski
Nathan Scheidler
Jennifer Schultz
Dale Stange
Michael Stewart
Shane Strohl
Lee and Kristi Thorson
Kevin and Brenda Weadick
Grace Xiang
Steve Yazawa
Matching gifts from Dell, General Mills,
W.W. Grainger, Inc., IBM Corporation,
Raytheon, Shure Incorporated, and Tyco.
Extra thanks to Quraish Baldiwala (MBA
2001) and Steve Lindsey (MBA 2008), who
screened candidates and selected this year’s
winner: Samy Affo. Quraish and Steve
cited Samy’s excellent background and
experiences; his clear ideas on the relevance
of the Grainger Center and its curriculum to
his long-term career aspirations and success;
and his knowledge of and passion for supply
chain management. Congratulations to Samy!
13
Faculty
Kersi Antia
Assistant Professor,
Marketing
Verda Blythe
Lecturer, Marketing
Gregory DeCroix
Wisconsin Naming
Partnership Professor of
Operations Management
Jan B. Heide
Professor and
Irwin Maier Chair
in Marketing
Peter B. Lukszys
Senior Lecturer,
Marketing, and
Director of Applied
Projects
14
John M. McKeller
Senior Lecturer,
Marketing and
Procurement/Supply
Management
Deborah Mitchell
Senior Lecturer,
Marketing
James G. Morris
Dean’s Professor
of Operations
and Information
Management
John R. Nevin
Chair, Marketing
James Rappold
Assistant Professor
and Director, Supply
Chain Management
Executive Education
:
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r
e
S
r
e
k
a
e
p
S
e
v
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Superior Customer Service through Supply
Exec
Chain Management at Grainger-Mexico
by Steve Harris
One of the Center’s fall executive speaker
events welcomed César Lanuza, vice
president and general manager, and Alfredo
Moreno, drector of supply chain, both at
Grainger-Mexico (Alfredo is also a 2002
Wisconsin MBA supply chain management
alumnus). César and Alfredo discussed the
company’s strategy in Mexico from both
companywide and supply chain standpoints,
including the differences between doing
business in the United States and Mexico,
sustainability initiatives, the current economic
climate, and how the company executes its
superior customer service model through its
supply chain.
Although Grainger is strong in the United
States and Canada, Mexico is a relatively
new market for the company. As a result of
its strong position in the United States and
Canada and customer shifts south, Grainger’s
biggest growth opportunities are in the rest of
the world; Grainger is following its customers
into lower-cost labor countries such as
Mexico. The Mexican economy is highly
correlated to economic cycles in the United
States; 80% of exports go to the United States,
and Grainger-Mexico is growing at five times
the rate of the Mexican economy.
Supply chain played a critical role in
Grainger-Mexico’s strategy and expansion.
In terms of Grainger-Mexico’s market
expansion, revenue, customer base, and
sales force have all doubled in recent years;
customer acquisition follows branch
openings; traditional customers in the north
have very different needs and support very
different markets than customers in central
and southern Mexico. The company has
entered new and important markets,
including oil and gas, mining, safety,
and hospitality.
Alfredo Moreno (left) and César Lanuza of Grainger-Mexico
An important part of the Grainger-Mexico
strategy has been major enhancements to its
logistics network. The company started with a
detailed logistics network analysis and
realized vast untapped potential that could
only be satisfied with an extension of its
branch network. The company targeted a
90% next-day service metric and
strategically located distribution centers and
master branches with meeting this objective.
The investment in the logistics network allows
the company to expand its product line and
offer better service nationwide. In addition to
a main cross-dock in Monterrey, three new
regional distribution centers and 22 branches
offer increased response times across Mexico.
Product-line expansion has been a critical
factor in the company’s growth and is
another part of the company’s strategy.
Grainger-Mexico is now a national provider.
It has doubled the number of SKUs
available in Mexico, it developed highly
localized product lines, and new products
represent 10% of revenue. New SKUs, a
leadership position in safety products, and
a private label business were pillars of the
strategy. Private label is a growing business,
with 13% higher margins than on national
brands that have the added benefit of
differentiating Grainger from competitors.
Grainger-Mexico has also managed to
expand beyond its core market of
manufacturing into oil and gas, mining,
and hospitality.
Grainger-Mexico’s formula for supply chain
success includes:
»Don’t guess on inventory (size and
location).
»Develop a fast and responsive network
to reduce cycle times.
»Continuously evaluate the logistic
network.
»Adapt product quality and pricing to
the country.
15
Fall Site Visit: Kraft Foods/Oscar Mayer
by David Poytinger
Supply chain management students, faculty,
and staff experienced firsthand a food
production and distribution facility during a
VIP tour of Kraft Foods’ iconic Oscar Mayer
production facility in Madison, Wisconsin.
We saw production line management and
had the chance to sit down with industry
leaders in supply chain management at
Kraft Foods to discuss its current operations
and some of the changes the facility is
undergoing. The Kraft distribution system
and the recent organizationwide SAP
implementation were a few of the topics that
were discussed in depth.
The Kraft Foods facility in Madison produces
Oscar Mayer and Louis Rich brands of cold
cuts, hot dogs, bacon, and luncheon meats.
Products from the original Oscar Mayer facility
are distributed nationwide either to Kraft’s
seven regional distribution centers across the
country, where products are in turn shipped
to retailers, or to other Oscar Mayer and Kraft
facilities for use in other products.
Kudos
One of the highlights of the tour included
following a hot dog from the raw materials
stage to final packaging. Members of the
supply chain management team guided our
group through the facility for two hours,
pointing out some of the more unique aspects
of the productions lines. This exposure
to real-world industry best practices truly
differentiates Wisconsin’s supply chain
management MBA from other programs.
The extensive tour and the informative
presentation combined with some of the most
memorable safety gear ever (pictured above),
made the experience one that will not soon
be forgotten.
Awards, Honors, Scholarships
Mark Adkins
Grainger Wisconsin Distinguished Graduate Fellowship
Samy Affo
The Logistics Council Scholarship
Institute for Supply Management Scholarship,
Madison Chapter
Kelly Ketchum Memorial Alumni Scholarship
Mark Dyer
The Logistics Council Scholarship
Institute for Supply Management Scholarship,
Madison Chapter
Christopher Gajdostik
Grainger Wisconsin Distinguished Graduate Fellowship
16
Terry Goeldner
Automatic Guided Vehicle Systems Product
Section Honor Scholarship, Material Handling
Education Foundation, Inc.
Institute for Supply Management Scholarship, Madison Chapter
Gloria Guo
Steel King Industries Honor Scholarship, Material Handling Education Foundation, Inc.
Steve Harris
Frechette Family Foundation Project Assistantship
Jennie Meresak
Grainger Wisconsin Distinguished Graduate Fellowship
Alumni News
Over the summer, several students, past and
present, met for an evening of socializing in
Minneapolis. Pictured L to R: Verda Blythe,
Steve Komerofsky (BBA 2007), Caryl Knutsen,
Justin Spaeth (MBA 2010), Lisa Perronne (MBA
2004), John Ramer (BBA 2008), and Paul Studer
(BBA 2007).
On October 16, several
alumni attended a reunion/
networking event at the
Fluno Center Study Pub.
At left, Seshu Anne (MS 1994)
catches up with Jack Nevin.
Jeff Hodgdon (MBA 2002) and his wife Maureen
announce the June 15, 2009, birth of daughter
Grace Judene Hodgdon. Jeff is Director of
Materials at Tower Tech Systems, Inc. in
Manitowoc, WI.
Norah Muenkel (MBA 2006) and her
husband Dan announce the August 24,
2009, birth of son Beckett Anderson
Muenkel. Norah is Global Category
Manager at Motorola in Deer Park, IL.
Kyle Ramey (MBA 2007)
and his wife Megan are the
proud parents of Annika Ramey,
born September 19, 2009. Kyle
is Process Specialist Principle
at Genzyme Corp. in
Framingham, MA.
Matt Kading (MBA 2007)
and his wife Samantha
announce the September
25, 2009 birth of Ansel
Knoll Kading. Matt works in
supply chain strategy at Cisco
Systems in San Jose, CA.
Supply Chain Management
Undergraduate
Specialization
Popular with Students, Employers
In addition to the highly regarded MBA program in supply chain management,
the Grainger Center offers a specialization in supply chain management to all
undergraduate students enrolled in the Wisconsin School of Business. Students
can add this specialization to their current business major. To complete the supply
chain management specialization, students take six required courses and one of three
electives. There are currently 15 students enrolled in the specialization.
Required Courses
Fundamentals of Supply Chain
Management
Procurement and Supply Management
Logistics Management
Marketing Channels
Production Planning and Control
Enterprise Systems and Supply
Chain Management
Electives
Marketing Research
Retail Management
Operations Research I
Fundamentals of Supply Chain Management is the foundational course in the
specialization curriculum. The course provides students with an understanding
of the link between key business functions and how effective supply chain
management can improve performance and provide competitive advantage. The
course includes an exciting web-based simulation project, where student teams
compete in managing a high-tech company’s supply chain.
Undergraduates experience the close community, career development opportunities,
and industry partnerships similar to that experienced by the Center’s MBA students.
17
Staff
grainger center alumni...Where Are They Now?
Scott Pollyea, MBA 2004
Scott is the industrial sector lead engineer in
intellectual property licensing and alliances
at IBM in Boulder, Colorado.
Could you give us an overview of your
area at IBM?
For 16 consecutive years, IBM has had more
U.S. patents issued than any other company,
and in 2008 IBM had 4,186 patents issued.
At IBM, we view patents and other forms
of intellectual property as an asset. Due
to this fact, we invest, develop, sell, and
protect our IP assets. We capture our IP
through our research, product development,
manufacturing, and services organizations. We then use our IP to collaborate across
industries, enter into joint development
agreements, and use IP in our services
engagements. In addition to these uses, we
license and sell our IP to interested parties. As a result of these activities, IBM earns about
$1 billion in income annually.
What is your role and responsibility at IBM?
As the industrial sector lead engineer in
intellectual property licensing and alliances,
my primary responsibility includes leading
a team of engineers in our effort to license
and assign IBM's patents. I am responsible
for ensuring that our engineering strategy
is in line with the needs of the business to
close licensing and patent assignment deals.
I coordinate the efforts of the engineering
team with business executives, IBM legal
counsel, and IBM research to ensure that all
assets needed for a licensing, assignment, or
technology deal are in place for discussions
with clients.
What has been your most significant
achievement to date?
Personally my most significant achievement
to date is my family, with my sweet wife
Becky and four wonderful children (Annie
9, Gavin 8, Ryan 5, and Braden 2). From
a career perspective, I consider my most
significant achievement to be the filing of my
first patent application a few years ago (System
and Method for Automatic Computation
of Validation Metrics for Global Logistics
18
Processes). Filing the patent application
helped me to recognize that I desired a role
that would enable me to use my education
and experience in engineering and business.
Filing the patent application set me on a
path to obtain my current role, which is an
excellent mix of the engineering and business
disciplines, a job role that is giving me the
skills and experience needed to eventually
move into a chief technical officer position.
Why did you choose to pursue a degree at
the Wisconsin School of Business through the
Grainger Center?
Because of the Grainger Center's reputation,
curriculum, and unique model. I was
extremely impressed with the students and
faculty during my on-campus interviews. I was
most impressed with the students; they seemed
like a close group of friends that worked well
together. Immediately following my oncampus interview, I knew that the
Grainger Center was where I wanted to
pursue my MBA.
How has the Grainger Center's curriculum
better prepared you for your current job?
The curriculum was excellent job
preparation. Its cross-functional approach
enabled me to take courses in operations
research, entrepreneurship, supply chain
management, new product development, and
more. The skills and techniques I learned while
pursuing my MBA at Wisconsin have enabled
me to excel in all aspects of my career. I view
the education I received at the Grainger Center
as a foundation for my career. The courses
always challenged me to think outside of the
box and look at problems from different points
of view. I received a foundation in operations
research that has enabled me to excel at
a number of different projects throughout
my career. And the courses in supply chain
management and the executive speakers and
applied learnings were always intriguing and
challenged us to question the status quo. Many
of the courses and professors have had a
lasting impression on me and have helped me
to develop the critical thinking skills that are
essential in my career.
What do you think are the most important
issues and trends influencing supply chain
management today?
In my current job role, I see supply chain
management through the lens of research
and technology. There are a lot of advances
being made in supply chain management,
and stakeholders continue to find new and
innovative ways to resolve problems in the
supply chain. Unfortunately, very few of the
stakeholders are making an effort to advance
the art of supply chain management through
IP protection. The number of companies
that choose to protect patentable inventions
in supply chain management are at a
minimum. Patents make inventions known
to the public domain and contribute to the
advancement of technology. I would like to
see many more companies begin seeking
patent protection for their inventions.
How do you keep abreast of all the advances
in the world of supply chain management?
To keep abreast of advances in supply
chain management, I receive RSS feeds and
publications from Logistics Management,
Supply Chain Management Review, Supply
Chain Brain, RFID Journal, McKinsey
Quarterly, Inbound Logistics, Logistics
Quarterly, Supply Chain Daily, and
many others.
Do you have any words of wisdom for
current MBA students?
Take advantage of every opportunity you have
while in graduate school. The dividends may
not be recognizable while in the program but
will be recognizable later in your career.
John R. (Jack) Nevin
Verda A. Blythe
Caryl Knutsen
Jack is executive director of the Grainger
Center and chair of the Marketing
Department. He previously served as chair
of the Marketing Department from 1988
through 1992 and associate dean of
masters programs from 1999 to 2002.
Jack earned a PhD in marketing from the
University of Illinois.
Verda is the director of the Grainger Center.
She is responsible for marketing the Center
to prospective students and employers,
developing the applied learning program,
and providing academic and career guidance
to undergraduate and MBA students. She
works closely with the Center’s faculty and
Executive Advisory Board on program strategy
and leads outreach activities with alumni,
employers, and professional associations.
Verda has presented at various conferences
about industry-educational partnerships in
supply chain management, and she teaches
two courses: Fundamentals of Supply Chain
Management in the undergraduate curriculum
and Ethical Leadership in the MBA curriculum.
Caryl is the assistant director of the
Grainger Center. Managing the daily
operations of the Center, she works
with current and prospective students,
alumni, employers, faculty, the Executive
Advisory Board, industry professionals, and
administrators within the Wisconsin School
of Business. Caryl leads the marketing and
communications activities and manages
the production of Center publications
and the web site. She also coordinates
the applied learning curriculum, which
includes executive speakers, industry-led
seminars, networking events, and corporate
site visits. Caryl develops and recommends
improvements for processes related to
admissions and recruiting, student services,
and programming for undergraduate
and MBA students; coordinates alumni
development activities; and manages the
work of three project assistants. Caryl has
been with the Center for eight years. She
holds a bachelor of arts degree in English.
Before joining the Wisconsin School of
Business, she worked in scholarly publishing
for 14 years at the University of Pennsylvania.
His research is primarily concentrated
in three managerial-oriented areas of
marketing: marketing channels, supply
chain management, and marketing strategy.
His research has appeared in the Journal of
Marketing, Journal of Marketing Research,
Journal of the Academy of Marketing
Science, Journal of Macromarketing, Journal
of Retailing, Journal of Marketing and Public
Policy, Journal of Applied Psychology, Journal
of Marketing Channels, and Law and Society
Review, among others.
Jack’s teaching responsibilities include
traditional full-time MBA classes on
marketing channels, marketing strategy, and
supply chain management. He also actively
participates in executive development
programs and has served as a research
consultant or expert witness for a number of
organizations. He has been heavily involved
with the American Marketing Association
and the International Society of Franchising
in a professional service capacity.
Verda brings 13 years of supply chain industry
experience to her position, having worked
in various functions, including procurement/
sourcing, production, and logistics. After
earning a BBA degree in logistics from
Iowa State University, she worked for Ruan
Transportation Management Systems in
various roles, including quality, planning,
and customer development. In 2002, she
graduated with an MS degree in supply chain
management from the University of WisconsinMadison and is a Grainger Center alumna.
Her summer internship during graduate school
was in logistics and materials management
at Harley-Davidson Motor Company. Upon
graduation, she joined IBM’s integrated
supply chain, where she worked in global
procurement and the systems and software
group, both domestically and abroad.
19
3450 Grainger Hall
975 University Avenue
Madison, WI 53706-1323
608.262.1941
www.graingercenter.com
Supply Chain Update is produced with
funds made available by the Grainger
Center for Supply Chain Management
Opportunity Fund.
Editor............ Caryl Knutsen
Reporters....... Steve Harris (MBA 2011) David Poytinger (MBA 2010)
2009 MBA Placement Success
Each student in the Center receives personalized career advising. Supply chain
management talent is in high demand, and the opportunities in the field are tremendous.
Our graduates are known for achieving quick success, and average starting salaries are
consistently among the highest of our peer schools. The Center has a remarkable
placement record, and this year was clearly no exception.
MBA Internships (100% placement)
Full-Time Employment (100% placement)
(1 of 2 offers accepted)
Company
Location
Cisco Systems, Inc.
San Jose, CA
Essilor of America
Dallas, TX
Genzyme Corporation
Framingham, MA
W.W. Grainger, Inc.
Lake Forest, IL
Hewlett-Packard
Houston, TX
Kinsella Group
Chicago, IL
Logitech
Fremont, CA
Mueller Sports Medicine
Prairie du Sac, WI
Raytheon
Boston, MA
Sears Holdings Corporation Hoffman Estates, IL
Job Title
Demand Planning Manager
Senior Marketing Analyst
Oracle Functional Analyst
Senior Planning Analyst
Business Planning Analyst
Analyst
Supply Chain Planning Associate
Sales Manager, Greater China
and Southeast Asia
Supply Chain Leadership
Development Program
Merchant MBA
Average full-time base salary offer: $90,071
Average full-time base salary accepted: $86,500
Average accepted signing bonus: $11,620
Bold type indicates an accepted offer.
Company
American TV
Boston Scientific Location
Waukesha, WI
St. Paul, MN
Bucyrus International
DirecTV
Genzyme Corporation
Milwaukee, WI
Englewood, CO
Cambridge, MA
(2 of 2 offers accepted)
G.I. Liquor World
New York, NY
S.C. Johnson & Son, Inc. Racine, WI
(2 offers)
Life Technologies
Logitech
Grand Island, NY
Fremont, CA
MillerCoors LLC
Schneider National
Shure Incorporated Milwaukee, WI
Green Bay, WI
Niles, IL
(2 of 2 offers accepted)
(1 of 2 offers accepted)
Average monthly base salary offer: $5,125
Average monthly base salary accepted: $5,016
Bold type indicates an accepted offer.