This document provides an overview of supply chain management and the Master in Supply Chain Management program at Tilburg University. It discusses what supply chain management entails, key issues in the field like globalization and sustainability. It outlines various career paths in supply chain management and examples of supply chain leaders. It then describes the curriculum and courses of the Master's program at Tilburg University, including topics covered and example theses. Participant perspectives on the program and next steps for enrollment and career support are also summarized.

1. Master in
Supply Chain Management
Dr. Christoph Bode
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
5. Summary
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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
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5. Why has supply chain management become topical?
Wells Fargo & CompanyEast India Company

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

7. Supply chain complexity:
Many supply chain tiers
OEM1st tier supplier
(seats)
2nd tier supplier
(leather firm)
3rd tier supplier
(tannery)
4th tier supplier
(farmer)
Example
CustomerDealer
Configuration
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8. Supply chain complexity:
Many suppliers
• Mercedes-Benz E-class (W212, SOP: 2009)
• ~ 150 major direct suppliers
• Many of them deliver on a JIT or JIS basis
Example

9. 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

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11. The traditional "divide"
Supply chain managers' concerns Top management' concerns
Primary
concerns
 Availability of supply
 Fulfillment of customer orders
 Customer lead times
 Market share and growth
 Profits
 ROI
 Stock price
Secondary
concerns
 Quality
 Cost
 Raw materials
 Manufacturing
 Order processing
 Logistics
 Inventory
 Strategic direction
 Markets – Products
 Markets – Geographies
 Customer segments
 Technologies
 Competitors
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12. SCM's impact on the balance sheet
Source: Christopher, 2005
Balance sheet Supply chain
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13. SCM's impact on ROI
Source: Christopher, 2005
Supply chain
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14. 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 cost?
• Manufacturing footprint
• Manufacturing processes
• Lean management
• Inventory management etc. etc.
Supply chain
management and
operations!
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15. COGS at Unilever
Example
Supply chain and
operations costs:
~ 60% of revenues
from products
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16. Profit impact of purchasing: Reducing purchasing
costs vs. increasing revenues
47%
40%
50%
59%
0% 20% 40% 60% 80% 100%
MechanicalEngineering
ChemicalIndustry
Foods
Trade
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 =
EM
PC x PCR
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
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17. Who are some supply chain leaders?
Rank Company
Peer
Opinion
Gartner
Opinion
3-year weighted
ROA
Inventory Turns
3-year weighted
Revenue Growth
Composite
Score
25% 25% 25% 15% 10%
1 Apple 3203 470 22.30% 82.7 52.50% 9.51
2 McDonald's 1197 353 15.80% 147.5 5.90% 5.87
3 Amazon.com 3115 475 1.90% 9.3 33.60% 5.86
4 Unilever 1469 522 10.50% 6.5 9.00% 5.04
5 Intel 756 515 15.60% 4.2 11.40% 4.97
6 P&G 1901 493 8.60% 5.8 3.60% 4.91
7 Cisco Systems 1167 517 8.50% 11.2 7.80% 4.67
8 Samsung Electronics 1264 298 11.60% 18.5 15.70% 4.35
9 Coca Cola Company 1779 278 11.70% 5.5 14.00% 4.33
10 Colgate-Palmolive 794 324 18.90% 5.2 3.60% 4.27
11 Dell 1409 342 6.20% 30.7 -0.60% 4.05
12 Inditex 745 221 18.00% 4.2 13.40% 3.85
13 Wal-Mart Stores 1629 282 8.80% 8.1 4.90% 3.79
14 Nike 955 236 14.10% 4.2 10.60% 3.62
15 Starbucks 808 159 16.50% 4.8 11.50% 3.41
Source: Gartner 2013 17
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18. 2. Careers in supply chain
management

19. The supply chain management profession
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• Supply chain management is…
• interdisciplinary,
• collaborative,
• independent of specific industry,
• dynamic,
• and 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

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

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

22. Importance of SCM is increasingly reflected in top
management positions
Barbara Kux to take charge of SCM at Siemens
CPO Agenda, 14 November 2008
The former Philips CPO joins the firm next Monday to take control of
the group's new supply chain management group. Her position will also
make her the only female board member of any company trading on the DAX 30,
Germany's stock market of the country's top 30 firms.
As head of supply chain management she will be responsible for the group's €42 billion
worldwide procurement spend. She will also become the company's Chief Sustainability
Officer, a role she also held at Philips.
"In view of the current global economic challenges, the appointment of Ms Kux comes just at the right
moment," said President and CEO of Siemens Peter Löscher. He added her responsibility for
procurement would be critical to improving the firm's overall efficiency.
Kux worked at Philips from 2003 until September this year and has also worked at Ford, Nestlé and
consultancy McKinsey. In 2007 she was ranked as Fortune magazine's nineteenth most powerful
woman in business.
Example
Source: CPO Agenda, 2008 22
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23. 3. Master in Supply Chain
Management at Tilburg
University

24. 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
provides
• 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 1.9 months to find first job, alumni feed back generally positive,
still in high demand
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25. Curriculum (August Entrants)
Purchasing
Management
Production
Management
Distribution
Management
Research Skills
SCM
Corporate
Entrepreneurship
Supply Chain
Collaboration
Planning, Modeling,
and ICT Skills
Master
Thesis
Unit 1 Unit 2 Unit 3 Unit 4
Skills training and
topic definition
Extended proposal
development under
supervisor
Full-time
research
Thesis:
• Heavy unit 1
• Optimal sequence
• Relatively fast 25
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26. Curriculum (January Entrants)
Purchasing
Management
Production
Management
Distribution
Management
Research Skills
SCM
Organization
Theory
Supply Chain
Collaboration
Planning, Modeling,
and ICT Skills
Master
Thesis
Unit 1 Unit 2 Unit 3 Unit 4
Skills training and
topic definition
Extended proposal
development under
supervisor
Full-time
research
Thesis:
• Heavy unit 3
• Less optimal sequence
• No flexibility at the end
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27. Course example:
“Collaboration game and advanced topics”
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FinishedproductComponents
Supply Production Distribution
SupplyChain
Purchasing Operations Sales
Reflect
 Discussions
 Presentations
Conceptualize
 Lectures
 Guest speakers
Apply
 Rounds of play
 Exercises
Experience
 Feedback from
the simulation
• A simulation game to reinforce supply chain fundamentals and apply advanced methods
• “The Fresh Connection”
• 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
• (Advanced) topics we will 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

28. • 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 projects)
Examples of Master’s Theses
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29. Graduates: Some examples (since 2008)
Danny Baars Business consultant
Harm Jan Bech Procurement analyst Enexis
Hilde Botden Supply chain engineer VDL
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
Yvonne van Mierlo Wethouder Economische Zaken, Sociale Zaken, Financiën en
Brainport. Beroepsloopbaancoach en mediator
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30. 4. Participants’ perspective

31. 5. Summary

32. • Conclusion
• Information market
• Questions?
• Career services and alumni relations
Closing
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33. 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/
Admission & Application
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34. Guiding you in your career planning process
• Career Advice
• Career Workshop
• Internships
• TiSEM Career Mentor Program
Simone Hofland (K18)
Career Services Officer
013 466 4203
s.b.hoflandlokin@tilburguniversity.edu
www.tilburguniversity.edu/studentcareerservices
TiSEM Career Services
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35. Alumni are our most important ambassadors and our goal is to
continue to support our alumni to succeed in their professional
lives by providing opportunities to
• Expand Your Future
• Knowledge
• Skills
• Network
As a student, you can benefit from the experiences of the
thousands of alumni in the network
Pam Dupont
Alumni Officer
013 466 3603
alumni-tisem@tilburguniversity.edu
http://www.tilburguniversity.edu/alumni-tisem
TiSEM Alumni Relations
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