Presentation of the Master Supply Chain Management that Tilburg School of Economics and Management of Tilburg University offers.

1. Master in
Supply Chain Management
Prof.dr.ir. Bart Vos
Department of Management

2. Agenda
1. Supply chain management – An overview
2. Careers in supply chain management
3. Master in Supply Chain Management at Tilburg University
4. Participants’ perspective: Inge van Dongen, Philips Lighting
5. Closing

3. 1 Supply chain management
– An overview

4. What is supply chain management?
• “Supply Chain Management is the
integration of key business processes
from end user through original
suppliers that provides products,
services and information that adds
value for customers and other
stakeholders” (Stock and Lambert,
2000).
• Supply chains compete, not
companies (Christopher and Towill,
2002)
• Key issues include multimodal
transport, outsourcing, globalization,
sustainability, lean management,
information systems, collaboration,
planning

5. Change from “rigid” to “flexible” manufacturing
 Highly standardized products
 Focus on cost efficiency
Ford: T-Model (“Tin Lizzy”)
Detroit, USA, 1908
Rigidity
 Breakdown in single tasks
 Specialization of jobs
 Focus: Intra-organizational
 Highly customized products
 Focus on differentiation (and cost)
Smart: fortwo
Hambach, France, 2008
Flexibility
 Production/supply networks
 Specialization of performance units
 Focus: Inter-organizational
Example

6. Supply chain complexity:
Many supply chain tiers
1st tier supplier OEM
(seats)
2nd tier supplier
(leather firm)
3rd tier supplier
(tannery)
4th tier supplier
(farmer)
Example
Dealer Customer
Configuration

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

8. Supply chain complexity:
Many geographic locations
Wafer Fabrication
Portland
Salt Lake City
Midget Haemek
Santa Clara
Arlington
Greenock
Assembly & Testing
Cebu
Malacca
Penang
Bangkok
Toa Payoh
Prime Distribution Center
Swindon
Portland
Santa Clara
Tokyo
Hong Kong
Example

10. SCM's impact on ROI
Source: Christopher, 2005
Supply chain

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

12. COGS at Unilever
Example
Supply chain and
operations costs:
~ 60% of revenues
from products

13. Profit impact of purchasing: Reducing purchasing
costs vs. increasing revenues
59%
50%
40%
47%
0% 20% 40% 60% 80% 100%
Trade
Foods
Chemical Industry
Mechanical Engineering
Operative Margin
Other Costs
Staff Costs
Purchasing costs
EBIT Margin
3.4 %
2.5 %
5.0 %
3.3 %
Lowering
purchasing
costs by 3 %
will have the
same EBIT-effect
as an
revenue
increase of …
Revenue
increase of
52 %
60 %
24 %
43 %
PI =
PC x PCR
EM
PC = Purchasing costs in % of revenues
PCR = Purchasing costs reduction in % of the purchasing cost
EM = EBIT Margin %
PI = Profit impact of purchasing as compared to necessary
revenue growth
Examples

14. 2. Careers in supply chain
management

15. The supply chain management profession
• Supply chain management is…
• Interdisciplinary
• Collaborative
• Independent of specific industry
• Dynamic
• Increasingly global
• Essential capabilities:
• Overarching understanding of functional areas (from finance to marketing)
• Analytical skills
• Collaborative skills
• Major subfields:
• Purchasing management
• Logistics and distribution management
• Production and operations management

16. The link between supply chain management and
strategy
Product
development
strategy
New
product
development
Competitive strategy
Supply chain strategy
Purchasing
and Supply
Operations Distribution
Marketing and
sales strategy
Marketing
and
sales
Support: Finance, accounting, information technology, human resources
Consistency and support between competitive strategy, supply chain
strategy, and other functional strategies is important

17. “The Hot New MBA: Supply-Chain Management”
(Wall Street Journal, June 6, 2013)
Source: Wall Street Journal (2003):
http://online.wsj.com/news/articles/SB10001424127887324423904578523591792789054

18. 3. Master in Supply Chain
Management at Tilburg
University

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

20. Curriculum (August Entrants)
Unit 1 Unit 2 Unit 3 Unit 4
Purchasing
Management
Production
Management
Distribution
Management
Research Skills
SCM
Corporate
Entrepreneurship
Supply Chain
Collaboration
Planning, Modeling,
and ICT Skills
Master
Thesis
Skills training and
topic definition
Extended proposal
development under
supervisor
Full-time
research
Thesis:
• Heavy unit 1
• Optimal sequence
• Relatively fast

21. Curriculum (January Entrants)
Unit 1 Unit 2 Unit 3 Unit 4
Purchasing
Management
Production
Management
Distribution
Management
Research Skills
SCM
Organization
Theory
Supply Chain
Collaboration
Planning, Modeling,
and ICT Skills
Master
Thesis
Skills training and
topic definition
Extended proposal
development under
supervisor
Full-time
research
Thesis:
• Heavy unit 3
• Less optimal sequence
• Limited flexibility at the end

22. Course example:
“Collaboration game and advanced topics”
• A simulation game to reinforce supply chain fundamentals and apply advanced methods
• “The Fresh Connection”
Supply Chain
Components Finished product
Supply Production Distribution
Purchasing Operations Sales
Reflect
 Discussions
 Presentations
Conceptualize
 Lectures
 Guest speakers
• Web-based simulation of a fresh juice producer
• Goal: Highest ROI (costs, revenue, investments)
• Cross-functional teams
• Decision-making at the tactical/strategic level
• Six rounds with increasing task complexity
Experience
 Feedback from
the simulation
Apply
 Rounds of play
 Exercises
• (Advanced) topics to address:
• Supply chain fundamentals
• Supply chain strategy and its implementation
• Agri-food supply chains
• Supply chain planning and S&OP
• Forecasting
• Supply chain collaboration
• Supply chain risk
• Close loop value creation

23. Examples of Master’s Theses
• > 80% company assignment
• Albert Heijn: combining inbound and outbound
transportation flows
• DAF: spare parts management
• Coca Cola: redesign warehouse layout
• Closed loop supply chains at Philips, Assembleon, Oce,
Lage Landen
• Purchasing management at Nedtrain
• Maintenance of F16 jet fighters
• Also SMEs (e.g. lean manufacturing projects)

24. Graduates: Some examples
Danny Baars Business consultant
Harm Jan Bech Procurement analyst Enexis
Hilde Botden Supply chain engineer VDL (Van der Leegte) Group
Victor Breugem Supply chain planner, FrieslandCampina
David de Kruijf Supply chain planner Pearle
Willem Jan Castelijns Warehouse manager Panalpina
Niels de Rooij Business analyst Ploeger
Geoffrey Dickenson Operations manager WoonVeilig
Mark Ebbers Consultant Planon
Robbert Janssen PhD candidate VU
John Koers Interim Professional at Yacht
Robin Law Consultant at Every Angle
Inna Kostuyek Service analyst Philips Healthcare
Ronald Sol Teacher HAS Hogeschool
Dirk van Dooren Supply chain analyst LHC consulting
Robbie Vughts Head of EMEA Edwards Lifesciences SA

25. 4. Participants’ perspective:
Inge van Dongen

26. 5. Summary

27. Closing
• Information market (Mensa 17.45 – 19.00 hr, with participation from
companies like Achmea, Rabobank, PwC, Shell & Unilever)
• Interested in SCM? Master’s student for a day!
• Career services and alumni relations
• Admission & application
• Questions

28. Master’s student for a day
Experience what it’s really like to study at Tilburg School of Economics
and Management:
• Join a lecture
• Get in touch with other students
• Check out our campus, facilities and services
For hbo students and wo students from other universities
More information and registration:
www.tilburguniversity.edu/education/Masters-student-for-a-day-TISEM/

29. Career support
Student Career Center and Alumni services
Guiding you in your career planning process:
• Career Advice
• Career Workshops
• Internships
• TiSEM Career Mentor Program
• Center of Entrepreneurhip
www.tilburguniversity.edu/careercenter
www.tilburguniversity.edu/alumni-tisem

30. Admission & Application
For all students:
• Enroll via Studielink
Non TiSEM students who want to enroll in a (Pre-)
Master also need to:
• Submit an application for admission
For more information go to:
www.tilburguniversity.edu/education/masters-programmes/admissionprocedure/feb/

31. Questions?