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The Supply Chain is the backbone of business and the economy.

SCM: An Introduction. The Supply Chain is the backbone of business and the economy. It could be said that, 2 nd only to knowledge, SCM is the “ultimate competitive advantage”. http://www.youtube.com/watch?v=OVYcxi1rDgE&feature=player_embedded DoT 6:07. WHAT IS THE SCM TARGET MARKET ?.

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The Supply Chain is the backbone of business and the economy.

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  1. SCM: An Introduction The Supply Chain is the backbone of business and the economy. It could be said that, 2nd only to knowledge, SCM is the “ultimate competitive advantage”. http://www.youtube.com/watch?v=OVYcxi1rDgE&feature=player_embedded DoT 6:07

  2. WHAT IS THE SCM TARGET MARKET? • College students seeking degree/career studies • Including Tech Prep students • Entry-level/mid-level public and private industry personnel seeking additional/advanced career studies • Displaced entry-level/mid-level private industry personnel seeking new career studies • DoD military and civilian personnel seeking acquisition studies • DoD contractor support personnel seeking acquisition studies

  3. Welcome to the Miami Valley

  4. Every Business has a Supply Chain… ... Every link in the Supply Chain must bemanaged … … For every company, in every industry.

  5. Objectives of SCM: - Provide an uninterrupted flow of materials, supplies, services required to operate the organization - Keep inventory investment and loss at a minimum - Maintain and improve quality - Find or develop competent suppliers - Standardize, where possible, the items bought - Purchase required items, services at lowest total cost - Achieve productive working relationships with other functional areas within the organization - Accomplish purchasing objectives at lowest possible level of administrative costs - Improve organization’s competitive position Source: Leenders, Michiel R., Fearon, Harold E., Flynn, Anna E., and Johnson, P. Fraser, Purchasing and Supply Management, 12th edition, McGraw-Hill, Boston, 2002. SCM/Acquisition Objectives

  6. Regional work force needs driven by public and private sector influences DoD presence at WPAFB - Requires government employees and support contractors - Specialized knowledge of all facets of DoD acquisition and logistics "90 Minute Market" reach of Interstate 70/75 commerce corridor - Requires industry specialists - Expertise in all aspects of supply chain management Opportunities/Regional Needs

  7. I-70/I-75 90-MINUTE MARKET

  8. Driven by DoD needs, Greater Dayton area has major concentration - Over 6,000 professionals in various areas of SCM - Both private and public sectors Other public agencies, private businesses require SCM expertise - Procurement, shipping, trucking, order fulfillment, warehousing Ohio has nation’s sixth largest civilian workforce in these professions - Responsible for procuring goods and services - Assuring global delivery DoD data indicate 50% of DoD civilian workforce eligible to retire - Local market has critical need to train and retain acquisition/ SCM professionals Regional economic development associated with I 70/75 commerce - Drives growth in need for industry SCM specialists Opportunities/Regional Needs(continued)

  9. Ohio’s 16 Career Fields • Agricultural & Environmental Systems • Arts & Communications • Business & Administrative Services • Construction Technologies • Education & Training • Engineering & Science • Finance • Government & Public Administration • Health Science • Hospitality & Tourism • Human Services • Information Technologies • Law & Public Safety • Manufacturing Technologies • Marketing • Transportation Systems

  10. Specialized area; growing in importance - Strategic challenges for businesses - Consumer expectations, industry advancements, global competition Varied duties may include: - Acquisition of materials, services and equipment - Planning and policymaking - Product development and control - Contract development and forecasting - Production planning and scheduling - Warehousing and distribution Source: Burt, David N., Dobler, Donald W., and Starling, Stephen L., World Class Supply Management: The Key to Supply Chain Management, 7th Edition, McGraw-Hill, Boston, 2003. Career Fields

  11. Private Sector Career Fields

  12. DoD Acquisition Career Fields

  13. Source: www/ism.ws/career center SCM/Acquisition Skills Needed

  14. SCM/Acquisition Competencies (ODE)

  15. SCM/Acquisition Competencies (ODE) • DoD Special Emphasis: • 1. Professional Development/Networking • Benefits of working for DoD • 3. SCM Basics • DoD Acquisition and Logistics Mission • 8. SCM • Role of Acquisition Logistics Professional in DoD • Sustainment Logistics and Impact on Acquisition Logistics • 10. Purchasing/Contracting • DoD Purchasing/Contracting Policies and Procedures • 15. SC Planning and Management • Financial Considerations in DoD Acquisition

  16. SCM/Acquisition is a critical discipline, important for business success Valuable career opportunities in SCM/Acquisition Increasing demand in both private and public sectors Opportunities for continuing career advancement Wide variety of associated functional specialty skills areas Attractive salaries and benefits Numerous educational options available Careers in SCM/Acquisition

  17. Acquisition/SCM Professionals Average Salary 2006200934% $ 78,470 $ 98,200 $100,000 or > Average SalaryExperience 20062009 $ 65,389 $ 75,917 1- 5 years $ 67,996 $ 83,561 6 - 10 years $ 77,187 $102,119 11 - 20 years $ 95,900 $106,937 21 + years Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 and May 2010 Salary Information - Private Sector

  18. DoD Acquisition/SCM Positions GS/GM Step 1 Step 3 Step 10 200720102007201020072010 Entry Level 04 $ 26,170 $ 28,500 $ 27,914 $ 30,399 $ 34,017 $ 37,047 05 $ 29,279 $ 31.886 $ 31,231 $ 34,011 $ 38,062 $ 41,448 Progression 07 $ 36,269 $ 39,497 $ 38,687 $ 42,131 $ 47,150 $ 51,350 09 $ 44,364 $ 48,313 $ 47,321 $ 51,533 $ 57,672 $ 62.802 11 $ 53,677 $ 58,454 $ 57,256 $ 62,350 $ 69,782 $ 75.987 12 $ 64,335 $ 70,062 $ 68,625 $ 74,733 $ 83,639 $ 91,080 Management/ Professional 13 $ 76,505 $ 83,314 $ 81,606 $ 88,868 $ 99,459 $108,307 14 $ 90,405 $ 98,452 $ 96,431 $105,015 $117,524 $127,985 15 $106,343 $115,808 $113,432 $123,528 $138,245 $150,551 Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans Source: www.fedjobs.com/pay/payGeneral Schedule Base Pay + Locality Salary Information - DoD

  19. In general, salary levels increase with educational level 20062009 Bachelor’s degree Average - $ 79,368 $ 94,213 Master’s degree Average -$ 99,373 $119,387 Doctorate degree Average - __ $184,273 All degree holders Technical Fields Average - $ 93,977 $112,503 Supply Chain Mgt Average - __ $ 96,218 Other Business Average - __ $101,927 Liberal Arts Average - __ $ 99,920 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 and May 2010 SCM/Acquisition Salary Influenced by Education

  20. Higher Average Salaries with Professional Certifications 20062009 With one or more professional certifications $ 80,758 vs. $ 76,411 $ 98,701 vs. $ 96,792 With Certified Professional in Supply Management (CPSM) certification __ $106,249 vs. $ 97,582 With Certified Purchasing Manager (CPM) certification $ 83,172 vs. $ 75,337 $ 99,314 vs. $ 97,286 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 and May 2010 SCM/Acquisition Salary Influenced by Certifications

  21. SCM/Acquisition Salary Influenced by Location Average salaries vary by location Source: Institute for Supply Management Salary Survey, Jan/Feb 2006 and May 2010

  22. Source: www/ism.ws/career center SCM/Acquisition Professions - Education Options

  23. Transportation Modes • Five modes: • Highway (truck) • Water • Rail • Air • Pipeline

  24. Transportation Modes • And now a sixth mode: • Telecommunications / Cyberspace

  25. Technological Breakthroughs • RFID inventory tracking • Standardized containers, pallets for ease of transfer • “Roadrailers,” warehouse ships, etc. • Multimodal solutions • Ship  Truck  Train  Truck  ?

  26. Logistics Strategy Choices Performance Dimension Transportation Mode Warehousing System

  27. __________ Mode Backup slide - Transportation

  28. Highway Mode Backup slide - Transportation

  29. __________ Mode Backup slide - Transportation

  30. Water Mode Backup slide - Transportation

  31. __________ Mode Backup slide - Transportation Increasing part of multimodal solutions, dual tracks on major routes

  32. Rail Mode Backup slide - Transportation Increasing part of multimodal solutions, dual tracks on major routes

  33. __________ Mode Backup slide - Transportation

  34. Air Mode Backup slide - Transportation

  35. Transportation “Outsources” • Common (public) carriers • - Published rates and schedules • - “Nondiscriminatory” pricing • - Increased flexibility to partners • Contract carriers • - Service for select customers • - Unlimited number of customers • Third-Party Logistics Providers (3PLs) • - Service firms specializing in logistics for other companies

  36. SCM Educational Opportunities • SINCLAIR COMMUNITY COLLEGE • Associate Degree Program and Certificate Programs • Options: Private Sector focus or DoD Public Sector* focus • * Defense Acquisition University (DAU)-modeled courses • in Acquisition, Logistics, and Sustainment • A.A.S. Business Management, Supply Chain Management • 103 quarter credit hours • Supply Chain Management, 1-Year Certificate • 47 quarter credit hours • Workforce Development Programs • Customized training to meet unique organizational needs • Defense Acquisition Academy (DAA) • DAU-modeled courses • Acquisition, Logistics, Contracting, and Program Management

  37. MVAC The Miami Valley Acquisition Consortium (MVAC) is a joint academic, government, and industry partnership preparing the Miami Valley workforce for the challenges of tomorrow. - MVAC Charter MVAC works to facilitate an improved Miami Valley workforce for DoD AT&L and for public and private sector logistics, procurement, and supply chain management specialists.

  38. Defense Acquisition University Capital and Northeast (Fort Belvoir) AT&L WF ~37,000 Mid-Atlantic (Pax River) AT&L WF ~23,000 West (San Diego) AT&L WF ~26,000 Midwest (WP AFB) AT&L WF ~20,000 South (Huntsville) AT&L WF ~27,000 Established August 1992 by United States Code

  39. Acquisition EducationBefore GRADUATE DAU UNDERGRADUATE COMMUNITY COLLEGES HIGH SCHOOLS

  40. Acquisition EducationGoal GRADUATE DAU UNDERGRADUATE COMMUNITY COLLEGES HIGH SCHOOLS

  41. SCM WORK FORCE SUPPLY SCM WORK FORCE SUPPLY EXECUTIVE EDUCATION CAREER CHANGE ADVANCED EDUCATION BOTTOM-UP (ENTRY LEVEL) BOTTOM-UP (ENTRY LEVEL) TRADITIONAL MVAC PLAN

  42. “This budget will support these goals by increasing the size of defense acquisition workforce, converting 11,000 contractors to full- time government employees, and hiring 9,000 more government acquisition professionals by 2015, beginning with 4,100 in -- in F.Y. '10.” Secretary of Defense Robert Gates

  43. DoD Acquisition Workforce

  44. DoD Acquisition Workforce Generational Composition *Source: Armour, Stephanie "Generation Y They've Arrived at Work with a New Attitude" USA Today, Nov 7, 2005, 18-28 **Source: OSD P&R Report: DoD Civilian Workforce Statistics/DoD Demographics/May2006 Edition ***Source: AT&L Datamart FY07 AT&L Workforce Count/AT&L workforce data contains 456 files with null for age Even though our workforce is working longer, there is a growing concern that a large and experienced component of the DAW will start to contract—creating gaps in critical skills

  45. Prominent SCM Professional Organizations and Resources • ISM Institute for Supply Management • http://www.ism.ws/ • CSCMP Council for Supply Chain Management Professionals • http://cscmp.org/ • SCC Supply Chain Council • http://www.supply-chain.org/ • APICS Association for Operations Management • http://www.apics.org/ • INFORMSInstitute for Operations Research and Management Sciences • http://www.informs.org/ • SOLE International Society of Logistics Engineers • http://www.sole.org/ • AFCEA Armed Forces Communications Electronics Association International http://www.afcea.org/ • DAUDefense Acquisition University • http://www.dau.mil

  46. SCM Links • ODE - Logistics Education Summit • http://www.ode.state.oh.us/GD/Templates/Pages/Summit/SummitPrimary.aspx?page=731 • ODE Careers Links • http://www.ode.state.oh.us/GD/Templates/Pages/ODE/ODEPrimary.aspx?Page=2&TopicID=1759&TopicRelationID=1777 • Ohio Means Business • http://www.ohiomeansbusiness.com/key-industries/distribution-and-logistics.php • Ohio Business Development • http://www.development.ohio.gov/research/documents/b800000000.pdf • Logistics - Columbus, Ohio • http://www.columbus.org/economic-development/logistics/ • Ohio - Association of Procurement Technical Assistance Centers (APTAC) • http://www.aptac-us.org/new/Govt_Contracting/find.php?what=search&State=OH • Ohio - Procurement Technical Assistance Center (PTAC) http://www.dla.mil/db/procurem.htm#OHIO

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