Clarkson Delivers what

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1 Vol 4. Issue 2 Clarkson s Global Supply Chain Management Program is ranked #14 in the nation by U.S. News & World Report. Clarkson Delivers what Supply Chain Leaders Want In October 2010, Supply Chain Management Review published its Eighth Annual Survey of Supply Chain Progress. The survey, which involved 164 large/mid-size companies across North America, Europe and Asia in 20 industries, identified three telling trends: Professors Mary Graham and Sandra Fisher spur human resource research that addresses issues in supply chain management. Companies have turned to their supply chains as they continue to focus on cost savings. About two/thirds are re-thinking sourcing points and have set objectives to generate cost savings in the next 12 months. In addition to reducing costs, a select few (identified as leaders ) made their supply chain a principal driver of revenue growth by integrating the supply chain organization with key internal partners such as finance, IT and product development. These trends confirm the relevance of our Global Supply Chain Management (GSCM) program at Clarkson. Especially significant is the revenue-generating success of leading companies, because it underscores the value and benefit of the integrated systems approach upon which our curriculum is based. We develop the kind of innovative, cross-disciplinary thinking in our graduates that enables the leading global companies to generate both higher revenues and lower costs. Two articles in this issue illustrate the point. One describes collaborative research combining Professor Heimo Losbichler s insights in finance with my operations perspective. We show why supply chain decisions taken from a comprehensive systems viewpoint improve shareholder value (p.2). The second article describes a special edition of Human Resource Management, guestedited by Clarkson Professors Mary Graham and Sandra Fisher, which has spurred human resource research that addresses supply chain issues (p.6). Dr. Farzad Mahmoodi Professor and Director Global Supply Chain Management Program But perhaps the strongest endorsement of our GSCM program is how eagerly companies seek our graduates. A recent list speaks for itself (p.7). We hope you enjoy this issue and appreciate your comments.

2 P a g e 2 Cross-Disciplinary Research Shows Why Breaking Silos is Critical M In today s complex, far-flung supply chains, most decisions have multiple consequences many of them unintended. Dr. Farzad Mahmoodi Professor and Director of Global Supply Chain Management Program Professors Losbichler and Mahmoodi. How Supply Chains Create Shareholder Value Most companies strive for better financial performance by creating efficiencies within their global supply chains. Yet, often these changes don t truly improve their long-term financial performance. A recent study of 23,000 European manufacturing companies, for example, showed that despite deliberate supply chain initiatives, a majority did not achieve better overall shareholder value between 2000 and Why not? Many companies failed to understand the true drivers of financial performance, explains Dr. Mahmoodi. Typically, the firms focused too narrowly on the things they could easily see and measure, he says, instead of considering broader impacts that were less visible and harder to measure. In today s complex, far-flung supply chains, most decisions have multiple consequences many of them unintended, says Dr. Mahmoodi, with expertise in operations management. With research collaborator Dr. Heimo Losbichler, Professor of Controlling (finance and accounting) at the University of Applied Sciences in Upper Austria, he has been combining crossdisciplinary perspectives to determine how companies can better analyze competing alternatives for improved long-term financial performance. In Creating Shareholder Value Through Supply Chain Management, a chapter published in an edited book Global Logistics New Directions in Supply Chain Management, 2010, the co-authors provide powerful analytical tools for better evaluating options. In addition, Dr. Losbichler, who co-authored the study noted above, regularly shares his insights with supply chain professionals at Clarkson s annual Executive Seminar. We are pleased to benefit not only from Professor Losbichler s financial and accounting expertise, says Dr. Mahmoodi, but also from his European perspective. In their book chapter, they observe that smart supply chain decisions enable corporations to unfreeze cash, reduce operating cost and meet rapidly changing customer demand. Typical initiatives result in reduced stock-outs, lead times, purchase prices, and transportation, warehousing, and inventory costs. But often managers face competing alternatives. And it is critical, the authors point out, to judge any alternative in terms of its economic value added (EVA) the primary metric for longterm success. This can become complicated, because supply chain decisions impact four distinct drivers of financial performance: revenues, costs, fixed assets, and working capital. Utilizing historical corporate data, the article illustrates how corporations can select the supply chain initiatives that create the most shareholder value. For example, lower unit costs as a result of offshoring can be offset by higher in-transit costs, an increase in lead time and higher inventory carrying costs, the authors observe. It may be the case that the supplier with the lowest unit cost does not have the highest impact on the shareholder value.

3 P a g e 3 Unfortunately, many supply chain managers don t grasp the interplay of all these factors. Most do not test their decisions against EVA (which accounts for trade-offs between the income statement and the balance sheet). And many do not understand how a choice may simultaneously affect more than one of the four key value drivers and thus involve trade-offs among revenues, costs and assets. For maximum corporate efficiency, there must be close communication and a broad perspective across the traditionally distinct functional silos of procurement, operations, sales and accounting. The book chapter provides a practical, comprehensive five-step framework that can be used to identify initiatives that create shareholder value, along with a discussion of specific pitfalls to avoid. The article also includes analyses of four companies generally perceived as supply chain leaders in their respective industries: Zara (a Spanish apparel manufacturer and retailer), Dell, Wal-Mart and Nokia to demonstrate empirically how supply chain initiatives have a major influence on internal and external financial performance. In his Clarkson executive seminar lectures, Dr. Losbichler applies economic analyses to illustrate the complex linkages by which a Online MBA Program company s supply chain choices can shape its financial performance to support (or undermine) strategic overarching corporate goals. In some periods, for example, it may be more important to free up cash (i.e., working capital) than to increase profit. Applying the most appropriate metrics is critical for success. Accountants must be more than just bean counters, he observes. They should know what needs to be measured in support of the current business model, just as other managers must be aware of corporate objectives to make the best choice. Knowledge of how different tradeoffs impact supply chain drivers can help determine, for example, whether it is in the best interest of the company to increase sales by lowering prices, speeding up delivery time, or expanding product options. Another complex issue is determining how much one company should leverage its power over other players in its supply chain. If you significantly reduce the profits of your suppliers to improve your own cash position, he warns, it can create a win-lose scenario that hurts your chain in the long term. Overall, pursuing a win-win strategy is best for the health of the chain. Knowledge of how different tradeoffs impact supply chain drivers can help determine whether it is best to increase sales by lowering prices, speeding up delivery time, or expanding product options. Dr. Heimo Losbichler Professor of Controlling University of Applied Sciences in Upper Austria Clarkson University s new online MBA program focuses on integrating various business functions, including strategic management, operations management, organizational behavior, marketing and economics. The program is designed for working professionals with the motivation for success and a drive to create future career opportunities. Students can choose a supply chain management or organizational management focus. The flexible AACSB-accredited program: Builds upon the foundation of Clarkson s nationally ranked Supply Chain Management Program. 100% faculty-led distance learning in addition to two face-to-face, three-day residency sessions. Can be completed part-time in two years by taking courses during four, 12-week sessions each year. To apply for the fall 2011 term or to obtain further information: Graduate Business Programs Clarkson University Box 5770, 8 Clarkson Avenue Potsdam, NY [email protected]

4 P a g e 4 Winning GSCM Students Illustrate a Diversity of Talent and Goals The Crane Fund Benefits a Variety of Scholars Clarkson s systems approach will complement my past operations experience and provide me with the needed skills to succeed. MBA student Stefan Seidman For more information visit: business/gscm/ [email protected] Ten outstanding students in Clarkson s Global Supply Chain Management (GSCM) program are benefiting from scholarships provided by the Crane Fund for Widows and Children in the academic year. Crane Co. is an international manufacturer of highly engineered industrial products. The awards range from $1,500 to $5,000 and are based on criteria that include superior academic achievement, extracurricular leadership and need. The following summary of winners includes excerpts from their scholarship applications: UNDERGRADUATE AWARDEES Ryan Davis is a senior Engineering & Management (E&M) major who is a Presidential Scholar, member of Tau Beta Pi national engineering honor society, and former president of the Clarkson E&M Society. He aspires to find a career that consists of dissecting the product and information flows of a company s supply chain in order to eliminate waste. Three internships at General Electric helped Ryan receive a position in GE s Operations Management Leadership Program upon graduation, which will enable him to gain experience through four rotations in sourcing, manufacturing, quality engineering and lean operations. Lydia Mellnitz is a senior Presidential Scholar majoring in GSCM with minors in Project Management and Economics. She is involved in campus business projects and the Collegiate Entrepreneurs Organization, as well as community volunteer activities. Lydia also gained experience in a co-op with Johnson & Johnson and during a semester of study abroad in Pontypridd, Wales. While weighing possibilities for corporate training and MBA graduate programs, she ultimately aspires to produce the most cost-efficient, high quality, customized product possible using the least amounts of resources. Megan McWilliams is a junior Presidential Scholar majoring in GSCM whose semester studying in Ireland convinced her that she wanted a career that would involve travel and working abroad. She has been president of Clarkson s student chapter of the Society of Human Resource Management. She became fascinated with the intricate chain from business to business or business to consumer overseas. Megan aspires to eventually be the supply chain manager for an international company, large or small, and to revolutionize the business of working with different subsidiaries overseas in different countries. Michelle Murphy is a senior Presidential Scholar and member of Beta Gamma Sigma business honor society who is majoring in GSCM with a minor in project management. She developed a focus on supplier relationship management after an internship at Knolls Atomic Power Laboratory and participation in Clarkson s Global Business Program in Singapore, Malaysia and Hong Kong. Following graduation, she will begin work with Procter & Gamble pursuing her interest in supplier relations. Eventually, Michelle plans to earn an MBA and work her way up to a management position while further developing her leadership skills.

5 P a g e 5 Scholarship winners include l to r: undergraduates Sweeney, Davis, McWilliams and Murphy; and graduate students Northrop, Seidman and Konecnik. Recent Invited Corporate Presentations Amy Palmer is a junior Dean s List scholar and GSCM major who has been involved in the Collegiate Entrepreneurs Organization and served as VP of Golden Knight Delights, an on campus entrepreneurial venture. She was attracted to GSCM after hearing the major described as being like a puzzle and realizing that I wanted to be the one putting that puzzle together. She expects to work for a large corporation and appreciates that her major will not focus on one particular aspect of a business, but will integrate all components. Timothy Sweeney is a junior Presidential Scholar and varsity lacrosse member of the Liberty League All-Academic League who chose to major in GSCM because it offered a variety of promising career options and is involved in nearly every business activity worldwide. Eventually, he hopes to pursue an MBA/JD joint degree and obtain an executive position in a large organization (including possibly a sports franchise or league) which requires a big picture perspective in addition to managerial abilities. MBA AWARDEES Seif Habib is a GSCM track MBA student who worked his way through Clarkson as an undergraduate Merit Scholar with a supply chain major. He was elected president of his fraternity, which gave him valuable leadership experience. Educated initially overseas Continued on page 8... Dr. Farzad Mahmoodi, Professor and Director of Clarkson s GSCM program, has recently given the following invited presentations: Recent Trends in Global Supply Chain Management at the Stanley Black & Decker Leadership Program, New Britain, Connecticut World-Class Supply Chain Management at General Dynamics Armament & Technical Products Inc., Burlington, Vermont Linking the Development Chain and the Supply Chain at Corning Inc., Corning, New York Engineering & Global Operations Management The program allows for demanding corporate schedules and family time, creating an educational and enjoyable experience that enhances your knowledge and expertise. Mark Frahm, C.P.M. Indirect Sourcing Leader GE Oil & Gas Part-time Master s Program for Working Professionals AACSB accredited curriculum specifically designed for the technical working professional to provide a state-of-the-art education consistent with the rapidly changing technologically diverse business environment. Intensive 2-week summer residency sessions and 12-week live synchronous distance learning (up to 80% of program) offered. Draws technical business leaders from companies such as GE, Xerox, Kodak, Corning, Alcoa, Pall, Welch Allyn and Green Mountain Coffee Roasters. Start Dates January Winter Distance Learning Courses April Spring Distance Learning Courses May/June Two-week Residency Sessions July Summer Distance Learning Course September Fall Distance Learning Courses For more information contact: Program Director Clarkson University Box Clarkson Avenue Potsdam, NY [email protected]

6 P a g e 6 The Human Factor in Supply Chain Competitiveness DDespite growing awareness of the importance of supply chain management (SCM), there has been little research into the role of human resource management (HRM) in global supply chain competitiveness. But last fall the journal Human Resource Management turned a spotlight on the topic, thanks to Clarkson HRM experts Dr. Mary E. Graham and Dr. Sandra L. Fisher. They led a team of guest editors in producing an entire HRM special issue devoted to the rich and largely untapped possibilities for research in this field.* Professors Mary Graham and Sandra Fisher Spur a Promising Research Field For the special issue, the editors wrote an introductory paper outlining three areas of research intersection between HRM and supply chain management: intra-firm use of HRM to support supply chain functioning; interfirm use of HRM to inform supplier selection and development, and inter-firm alignment of HRM systems. Our intent was to develop a framework that calls attention to research needs regarding HR and supply chains and that motivates others to conduct research on this important topic, says Dr. Graham. The publication has also spurred potential collaboration with industry. Professors Graham and Fisher received an unexpected call from Clarkson alumnus Anuwat (Nan) Raviwongse 93 (E&M), director of Analytics at Manpower Inc., who has been researching the use of supply chain models for managing temporary workers. Professors Graham and Fisher with their supply chain-focused issue of Human Resource Management. Our intent was to develop a framework that calls attention to research needs regarding HR and supply chains and that motivates others to conduct research on this important topic. Dr. Mary E. Graham Associate Professor of Organizational Studies In their introduction to the issue, the editors observe that two blind spots account for a paltry amount of previous scholarship: organizations typically fail to grasp that successful supply chain management actually rests on the performance of the people involved; HR scholars, despite learning much about ways to improve human performance, rarely consider implications for supply chains. Thus, for the most part HR scholars have been missing the boat. Both Clarkson professors like to ground their teaching in empirical research and had been disappointed in the lack of HR scholarship related to SCM. They also note that the University s collaborative academic environment which encourages crossdisciplinary perspectives spurred their awareness of the scholarship gap. One of the linkages I was looking for was the relationship between human capital, contingent labor, and business value drivers, he says. From the very first meeting, we ve openly shared ideas and brainstormed collaboration opportunities. This type of collaboration is an ideal outcome of the project, observes Dr. Fisher. It gains visibility for Clarkson and allows us as researchers to apply what we ve learned to develop new models with partners in industry. To celebrate the successful completion of the special issue, in August the guest editors hosted a reception during the 2010 Academy of Management Meetings in Montreal. The event was designed to recognize the * The other co-editors were Dr. Stephan Vachon of HEC Montreal, formerly of Clarkson, and Dr. Ann Vereecke, Vlerick Leuven Gent Management School and Ghent University (Belgium).

7 P a g e 7 efforts of the authors and reviewers who contributed to the special issue, as well as to create an opportunity for scholars of diverse backgrounds to meet and share ideas. In addition to those who contributed directly to the special issue, we had people attend who just happened to see the event in the program and were excited to meet others doing research on HR and the supply chain, says Dr. Graham. The table of contents and paper abstracts for the special issue can be accessed via the following link: v49:5/issuetoc Recent Faculty Research Grants Dr. Weiling Ke, Associate Professor of Operations and Information Systems, is a Co-PI on two new grants: COMPANIES HIRING CLARKSON GSCM GRADUATES SINCE 2009 A significant endorsement of Clarkson s Global Supply Chain Management (GSCM) program is that companies around the globe are eager to hire our new graduates with either bachelor s or master s degrees. Since 2009 these firms include: Accenture Aldi Amazon Bechtel Boshart Engineering Cooper Industries Corning Inc. Crane Co. Frito Lay General Dynamics Armament and Technical Products General Dynamics Electric Boat Genesee Brewing Company GE Energy GE Transportation Goodrich Corporation IBM Industrial Sales and Manufacturing Johnson & Johnson Kom Automation Kraft Foods Inc. Lockheed Martin Pathfinder Bank Poolcorp Procter & Gamble Ramsco Raymond Corporation Raytheon Corp. Rennline Inc. Saint-Gobain Abrasives Saratoga Eagle Sales and Service SCP Pool Corporation Siemens SQL Labs Stanley Black & Decker Tyco Electronics UW Marx Inc. Veyance Technologies Wal-Mart Corporation Wegmans Understanding the Antecedents and Consequences of Internet- Enabled Supply Chain Integration, sponsored by the Research Grants Council of Hong Kong ($48,500; Fall 2010 Spring 2013); The Effects of Social Capital on Organizational Performance in the Context of E-Business: A Longitudinal Research, sponsored by the Natural Science Foundation of China and by the Research Grants Council of Hong Kong ($129,000; Spring 2011 Fall 2014). Recruiting companies value Clarkson s Global Supply Chain Management graduates.

8 Announcing Clarkson s 11th Annual Executive Seminar in Global Supply Chain Management August 2 5, 2011 Clarkson Campus Highly Interactive Format Hands-on Simulation & Negotiation Exercises Join 300 past participants from 60 globally recognized companies including: Accenture Alcoa ATMI Avon Products Babcock Power Bank of America Boeing Company Carrier Corporation Corning Incorporated Crane Co. Cybex Dell Computer Delta Airlines Eastman Kodak Frito-Lay General Dynamics General Electric General Motors Grainger Hewlett- Packard Honeywell International IBM ITT Industries Johnson & Johnson Kraft Foods Lockheed Martin Lutron Electronics National Grid Northrup Grumman Osram Sylvania Pfizer Rockwell International Saint-Gobain Texas Instruments Welch Allyn Xerox Corporation To register or request more information: or contact Robyn Seifert, Program Coordinator Fax [email protected] Ranked as a Top 20 Supply Chain Management program in the Nation since 2003 by Continued from page 5... in London and Paris, he is aiming for a supply chain management position where his varied technological, finance and problem-solving skills can be used to help a company improve its operations. Mary Konecnik is a GSCM track MBA student who was a Presidential Scholar at Clarkson while earning a B.S. in Mathematics and minors in Business Administration and American Studies in She is attracted to a career in creating sustainable corporate programs in quality control. By utilizing my diverse educational background, she says, I believe I could be successful in implementing six sigma and continuous improvement practices within the supply chain management field. Paul Northrop is a GSCM track MBA student who was a Dean s List student and member of Phi Kappa Phi business honor society at SUNY Plattsburgh, where he graduated in May His interest in GSCM was spurred by studying the distribution and logistics systems of Wal-Mart and Seven Eleven. Having a lifelong passion for automobiles, he hopes for a supply chain management career in the automotive industry and to be involved with North American logistics operations working with suppliers throughout the world. Stefan Seidman is a GSCM-track MBA student who graduated from the University of Maryland in 2007 with a B.S. in logistics, transportation and supply chain management. Subsequently, he worked as a trucking transportation planner and as a project administrator for a contractor providing business services to the Federal Aviation Administration. Clarkson s systems approach to supply chain management will complement my past operations experience and provide me with the needed skills to succeed, says Stefan, who is looking forward to a position he has accepted with IBM Global Business Services. Global Supply Chain Management Program Clarkson University Box 5790, 8 Clarkson Avenue Potsdam, NY EQUAL OPPORTUNITY POLICY Clarkson University does not discriminate on the basis of race, gender, color, creed, religion, national origin, age, disability, sexual orientation, veteran or marital status in provision of educational opportunity or employment opportunities.