BUSINESS SCHOOL STUDY ABROAD Lauren Edmonson

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BUSINESS SCHOOL STUDY ABROADLauren Edmonson

• February 7, 2006

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Study Abroad

• Emory University
• Goizueta Business School
• Atlanta, GA
• Benefits

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Emory University

• Located in Decatur, GA
• Nine major academic divisions
• Over 11000 undergraduate and graduate students

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Goizueta Business School

• "The cynics will tell you that the good you do
  today will be forgotten tomorrow. Just do it
  anyway. Roberto C . Goizueta
• Rated top 20 business school in the world
• State of the art facilities
• Small classrooms
• range from 15 to 75

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Business School Differentials

• Focus on leadership
• Leadership Speaker Series
• Mr. Eskew CEO of UPS
• Global perspective in class rooms
• Over 50 Intl undergraduate students
• ¼ of professors born outside US
• Emphasis on teamwork
• All classes require teamwork
• Presentations

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Atlanta, GA

• Top 10 Lifestyle City 2004
• A fast-paced modern city proud of its heritage
  
• Over 1,000 international businesses operate in
  Atlanta

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Benefits

• American University education
• Contacts for future
• Future job and internship possibilities

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Supply Chain Management Defined
Huh?

• Supply Chain Management
• Optimizing the flow of material, information and
  money from the suppliers supplier through to the
  customers customer

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The Supply Chain Spectrum
Huh?



External
Internal
External
Internal
Sell
Buy
Service
Move
Make
Plan
Design
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Supply Chain on the Executive Agenda
Greed is Good

• 92 of executives surveyed indicated that the
  supply chain is critical or very important to the
  success of their business.
• 87 indicated that the supply chain has become
  more important in their industry over the last
  three years.

Supply chain management is absolutely central
to how we deliver new strategies and how we
envision the future. Vice President of
Inventory Management and Supply Chain, Best Buy
Source Statistics from SCVT Executive Survey,
Zara quote from SCVT Executive Interviews,
Accenture, INSEAD, Stanford University, 2002.
Other quotes from the Stanford Supply Chain Forum.
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Supply Chain Value Tree Summary View
Greed is Good
Typical Benefits
Supply Chain Impacts

• Improved productivity
• Reduced downtime
• Improved customer service

Revenue
2 - 10 revenue
Profitability

• Lower distribution costs
• Better purchasing leverage
• Collaboration with 3rd parties
• Better contract management

10-30 costs
Costs
Shareholder Value

• Lower inventories
• Maximum asset utilisation
• Reduced lead times
• Shorter build to order times

Working Capital
10-20 inventory
Invested Capital

• Fewer physical assets (i.e.,plants, warehouses,
  material handling equipment, trucks, tanks, ships
  etc.)

Fixed Capital
10-30 assets
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Supply Chain Value Tree Detail View
Greed is Good
SUPPLY CHAIN VALUE LEVER
SUPPLY CHAIN BUSINESS OPPORTUNITY

• Pricing
• Volume
• Market Share

• Determine Optimal Pricing
• Improve Order Fill Rates
• Target Serve Best Customers (Segment)
• Optimize Product Mix (Bundling)

Increase Revenues
Increase Gross Profit

• Material Costs
• Production Costs
• Facility Overhead

• Reduce Input Costs (Direct Material)
• Improve Supply Demand Balancing
• Optimize Manufacturing Processes
• Improve Facility Utilization / Productivity

Decrease COGS
Increase Net Operating Profits

• Streamline / Automate Sales Process
• Focus On High Profit Accounts
• Reduce Sales Management Layers

Reduce Selling Costs

• Selling Productivity
• Sales Force Size

• Transportation Costs
• Network / Facility Locations
• Labor Requirements

• Improve Inventory Visibility in Network
• Optimized Scheduling Carrier Management
• Determine Alternative Distribution Channels
• Optimize Physical Network Labor needs

Reduce Distribution Costs
Decrease Operating Expenses
Increase Shareholder Value

• Customer Service Costs
• IT Costs
• Purchasing Costs
• HR Costs

• Automate Customer Service Functionality
• Outsource IT Services
• Optimize Procurement Functionality
• Improve Order to Delivery Cycle

Reduce Administrative Costs

• Improve Collaborative Design Abilities
• Optimize Management of Product Lifecycles

Reduce RD Costs

• Design Costs
• Product Lifecycle Costs

Cost of Capital
Improve Capital Costs Allocation

• Reduce Inventory Investment (Safety Stock, WIP,
  Scrap, Finished Good)
• Optimize A/P and A/R investment

Working Capital

• Inventory Levels
• Accts Payable / Receivable

Capital Deploy-ment
Fixed Costs

• Investment Planning
• Asset Utilization

• Regulate Investment Deployment Initiatives
• Increase Capital Productivity
• Outsource Fixed Assets

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Healthcare Supply Chain
Show Me the Money!



External
Internal
External
Internal
Sell
Buy
Service
Move
Make
Plan
Design
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Healthcare Supply Chain
Show Me the Money!



External
Internal
External
Internal
Sell
Buy
Service
Move
Make
Plan
Design

• Patient Waiting Movement
• Material Storage
• Distribution Systems

• Patient Data Management
• Customer Experience
• Public Relations
• Follow-up Visits

• Personnel Scheduling
• Material Usage / Demand Mgmt
• Facility Occupancy

• Strategic Alliances
• Vendor Managed Inventory (VMI)
• Consortia Buying

• Quality Assurance and Accrediation
• Insource / Outsource

• Patient Flow
• Equipment and Supplies Management

• Specialization
• Service Offering Definition
• Physician Relationships
• Payer Contracts

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Restaurant Supply Chain
Show Me the Money!



External
Internal
External
Internal
Sell
Buy
Service
Move
Make
Plan
Design
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Restaurant Supply Chain
Show Me the Money!



External
Internal
External
Internal
Sell
Buy
Service
Move
Make
Plan
Design

• Customer Staging
• Food Preparation Staging
• Seating

• Single Use Buy
• Product Availability
• Customer Complaints
• Rework

• Demand Management
• Ingredients Planning (Spoilage)
• POS Data

• Vertical Integration
• Dedicated Supply Sources
• Commodity Trading

• Standardized Processes
• Custom Machinery Equipment
• Make-on-Demand

• Product Flow
• Customer Flow (Queuing)

• Order Management
• Cash Management
• Promotions

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Retail Supply Chain
Show Me the Money!



External
Internal
External
Internal
Sell
Buy
Service
Move
Make
Plan
Design
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Retail Supply Chain
Show Me the Money!



External
Internal
External
Internal
Sell
Buy
Service
Move
Make
Plan
Design

• Store Layout (Concept)
• Storage and Stocking
• Fixtures

• Post Sale Service
• Returns Management
• Repeat Business

• Demand Management (POS Data)
• Promotions
• Product Availability (ATP)
• Make-to-Stock
• Personnel

• Vendor Managed Inventory (VMI)
• Price Elasticity
• Obsolescence and Shrinkage
• Regionality

• Insource / Outsource
• Postponement
• Mass Customization

• Inbound Direct Store Delivery vs Break-Bulk
• Self-Distribution vs Outsource
• Outbound Channel Optimization
• Reverse Logistics

• Product Availability (ATP)
• Customer Centricity

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The Battle over the Shopper.whos in the lead?
In the Immortal Words of Rainman
Years in Existence Number of Stores Employees M
arket Cap per Employee Sales Profits/(Loss) Mar
ket Capitalization Return on Equity
55 3,989 1,244,000 215,434 212.1
Billion 6.5 Billion 268.0 Billion 20.3
102 2,105 252,000 185 36.9 Billion (85
Million) 468.5 Million (1.42)
What the Analysts are saying WalMart Soon to
become the worlds biggest company, with respect
to both revenues and growth Kmart Uncertainty
remains regarding the traction of Kmarts
initiatives aimed at improving competitiveness
and profitability
Source Yahoo Finance (12 months ending Nov-02),
Lehman Brothers, Salomon Smith Barney
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In the News
In the Immortal Words of Rainman

• He who owns the data owns the customer
• WalMarts sales rose 15 in the 3rd quarter of
  2001. AMR attributes this rise to its supply
  chain efficiency and customer data mining.
• WalMart stores 7.5 Terabytes of data such as
  inventory, forecasts, demographics, markdowns,
  returns, and market baskets for 65 weeks.
• Inventory visibility IS all its cracked up to
  be.
• WalMart is a strong proponent of CPFR. In the
  pilot on Listerine, in-stock position rose from
  87 to 98, lead time was reduced from 21 days to
  11 days, on-hand inventory was cut by 2 weeks,
  and Listerine sales increased by 8.5M
• Using its free Retail Link to reduce stockouts by
  providing all suppliers with the daily item
  movement data--Wal-Mart will continue to support
  present and future micro-merchandising trends.
  Point of Sale (POS) data is sold to, not shared
  with, trading partners.
• Looking ahead to keep the customer coming back
• WalMarts data warehouse also stores information
  about WalMarts competitors. This allows them to
  analyze trends at their competitors so they can
  develop a strategy to recoup sales or minimize
  the impact.
• WalMart plans to use market basket analysis to
  devise a product mix in each store that will
  maximize cross-shopping.
• Slacking sales uncover Kmarts inability to
  manage change in demand
• Analysts says the main trouble is Kmarts
  inability to react quickly to demand shifts.
• Outdated technology at the DCs means that pallets
  sometimes sit for 24 hours or more before theyre
  logged into a central tracking system.

Source Internet Week, Journal of Business
Forecasting Methods and Systems, Peter Abell,
Drug Store News
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Just the Facts
In the Immortal Words of Rainman
(M)
(M)
Source Factset, Information Week, Cisco.com,
Baseline