Supply chain management (SCM) is behind every product you buy and every service you use. At Kelley, our SCM major prepares students to lead in an industry where efficiency, resilience, and innovation are essential.You'll develop the skills needed for coordinating logistics, sourcing materials, and analyzing data. With a curriculum designed for future leaders and a path to executive roles, this major will launch you toward a dynamic, future-proof career in one of the most versatile business majors in the market today.
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Supply chain management and logistics, U.S. News & World Report, 2027
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What is supply chain management?
Supply chain management is the coordination of materials, information, and money across a network of suppliers, manufacturers, and customers. Think of it as a conductor for the orchestra of commerce, ensuring products are available when and where they’re needed. The supply chain management major equips students with organizational and analytical skills to deliver the right product or service to the right place at the right time. At Kelley, we teach students to manage these flows strategically, efficiently, and sustainably.
Discover what supply chain management is, the type of students who excel in this degree, and how Kelley can prepare you with the skills and mindset to thrive in this unique business field.
Description of the video:
WEBVTT 1 00:00:00.000 --> 00:00:05.210 2 00:00:05.210 --> 00:00:08.060 I'm Kyle Cattani, a professor of supply chain 3 00:00:08.060 --> 00:00:10.410 management at the Kelley School of Business. 4 00:00:10.410 --> 00:00:13.260 And in this and two other short videos, 5 00:00:13.260 --> 00:00:15.950 I hope to pique your interest in the operations 6 00:00:15.950 --> 00:00:19.310 or supply chain management majors at Kelley. 7 00:00:19.310 --> 00:00:22.800 In this video, I will define supply chain management, 8 00:00:22.800 --> 00:00:25.670 discuss the personality and skill sets of our supply chain 9 00:00:25.670 --> 00:00:28.490 students, and present details about our operations 10 00:00:28.490 --> 00:00:31.610 major and our supply chain management major. 11 00:00:31.610 --> 00:00:34.070 A supply chain is comprised of all the companies 12 00:00:34.070 --> 00:00:37.020 that work together to get the product to the customer. 13 00:00:37.020 --> 00:00:39.830 I like the description by an executive in the toilet paper 14 00:00:39.830 --> 00:00:42.140 industry, who described his company's supply 15 00:00:42.140 --> 00:00:45.800 chain as from stump to rump. 16 00:00:45.800 --> 00:00:47.750 I apologize for that image, but I 17 00:00:47.750 --> 00:00:50.840 think it conveys the notion of the length and involvement 18 00:00:50.840 --> 00:00:53.150 of supply chains that begin with things 19 00:00:53.150 --> 00:00:56.690 taken right from the Earth and end with the customer. 20 00:00:56.690 --> 00:01:00.320 Supply chain management is about how we manage and control 21 00:01:00.320 --> 00:01:02.510 the flow of material, information, 22 00:01:02.510 --> 00:01:05.710 and money through this network of players who are getting 23 00:01:05.710 --> 00:01:08.140 the product to the customer. 24 00:01:08.140 --> 00:01:10.810 Every company has to figure out how to provide products 25 00:01:10.810 --> 00:01:14.230 to customers, and so there are a lot of career possibilities 26 00:01:14.230 --> 00:01:17.230 from the private to the public sector; from manufacturers 27 00:01:17.230 --> 00:01:19.930 to nongovernmental organizations, a.k.a. 28 00:01:19.930 --> 00:01:25.000 NGOs; from analyst positions to shop floor control. 29 00:01:25.000 --> 00:01:27.740 What kind of people choose supply chain management? 30 00:01:27.740 --> 00:01:29.630 Here are some of the attributes. 31 00:01:29.630 --> 00:01:32.590 People who like the tangible nature of getting products 32 00:01:32.590 --> 00:01:36.890 to customers, have common sense, can communicate, 33 00:01:36.890 --> 00:01:40.300 have an awareness of the world, are analytic, 34 00:01:40.300 --> 00:01:42.550 and are spreadsheet gurus. 35 00:01:42.550 --> 00:01:45.680 We have two related majors at the Kelley School of Business. 36 00:01:45.680 --> 00:01:48.800 Supply chain management and operations management, 37 00:01:48.800 --> 00:01:51.850 which is a subset of the supply chain management major. 38 00:01:51.850 --> 00:01:55.160 The supply chain major requires 21 credits. 39 00:01:55.160 --> 00:01:57.970 That's seven 3 credit courses with five 40 00:01:57.970 --> 00:02:00.850 of the seven required and two elective. 41 00:02:00.850 --> 00:02:04.190 The operations management major requires 15 credits. 42 00:02:04.190 --> 00:02:07.750 That's five 3 credit courses with three required and two 43 00:02:07.750 --> 00:02:08.800 electives. 44 00:02:08.800 --> 00:02:11.440 Let me show you the details. 45 00:02:11.440 --> 00:02:14.810 The supply chain major requires 21 credits as I said. 46 00:02:14.810 --> 00:02:16.420 Seven courses of three credits each 47 00:02:16.420 --> 00:02:19.460 with five required and at least two electives. 48 00:02:19.460 --> 00:02:22.520 The first required course, P 319, 49 00:02:22.520 --> 00:02:25.760 looks at how all the players in a supply chain plan, 50 00:02:25.760 --> 00:02:28.700 implement, and control the flow of information, materials, 51 00:02:28.700 --> 00:02:32.440 and services through all the players in the supply chain. 52 00:02:32.440 --> 00:02:35.440 The next three required courses focus on the supply chain 53 00:02:35.440 --> 00:02:38.260 from the perspective of a manufacturer looking upstream 54 00:02:38.260 --> 00:02:40.690 to suppliers and downstream to customers 55 00:02:40.690 --> 00:02:42.740 via logistics and distribution. 56 00:02:42.740 --> 00:02:46.120 P 429 looks at the processes in an operation 57 00:02:46.120 --> 00:02:48.650 such as a manufacturer or service provider, 58 00:02:48.650 --> 00:02:52.220 while P 320 looks upstream at sourcing from suppliers, 59 00:02:52.220 --> 00:02:55.660 and P 431 looks downstream at logistics and distribution 60 00:02:55.660 --> 00:02:56.480 functions. 61 00:02:56.480 --> 00:02:59.510 The final required course, P 481, 62 00:02:59.510 --> 00:03:02.290 is at the intersection of supply chain management and data 63 00:03:02.290 --> 00:03:05.500 analytics, and showcases a quantitative approach 64 00:03:05.500 --> 00:03:08.380 to modeling managerial trade-offs in the supply chain 65 00:03:08.380 --> 00:03:12.040 and selecting among data-driven alternatives. 66 00:03:12.040 --> 00:03:14.320 Then there are a number of elective courses 67 00:03:14.320 --> 00:03:17.950 to choose from, allowing you to focus on particular supply chain 68 00:03:17.950 --> 00:03:20.650 management topics of interest to you. 69 00:03:20.650 --> 00:03:24.130 The operations management major is a subset of the supply chain 70 00:03:24.130 --> 00:03:26.350 management major, with three of the five required 71 00:03:26.350 --> 00:03:28.330 courses from the supply chain management major 72 00:03:28.330 --> 00:03:31.690 and then two electives from the same list. 73 00:03:31.690 --> 00:03:34.730 Supply chain management has been around for millennia, 74 00:03:34.730 --> 00:03:37.150 but has dramatically increased in importance 75 00:03:37.150 --> 00:03:38.800 over the last few decades. 76 00:03:38.800 --> 00:03:41.720 With exciting new trends and opportunities, 77 00:03:41.720 --> 00:03:45.010 supply chain management looks to continue to grow. 78 00:03:45.010 --> 00:03:46.870 It is future-proof. 79 00:03:46.870 --> 00:03:49.240 One of the earliest supply chain examples 80 00:03:49.240 --> 00:03:51.700 is of the Nile River that transported materials 81 00:03:51.700 --> 00:03:54.230 from south to north using river current, 82 00:03:54.230 --> 00:03:57.770 and transported material from north to south using the wind. 83 00:03:57.770 --> 00:04:00.160 It is interesting that this is an early example 84 00:04:00.160 --> 00:04:03.490 of a sustainable supply chain, a topic of great interest to us 85 00:04:03.490 --> 00:04:05.170 in the 21st century. 86 00:04:05.170 --> 00:04:07.300 There are many exciting supply chain management 87 00:04:07.300 --> 00:04:08.950 topics on the docket. 88 00:04:08.950 --> 00:04:12.070 Artificial intelligence, or AI, shows tremendous promise 89 00:04:12.070 --> 00:04:15.280 in allowing supply chains to capitalize on the reams of data 90 00:04:15.280 --> 00:04:16.529 being collected. 91 00:04:16.529 --> 00:04:18.480 Robotics and self-driving vehicles 92 00:04:18.480 --> 00:04:20.459 can increase productivity and quality 93 00:04:20.459 --> 00:04:22.390 at ever decreasing costs. 94 00:04:22.390 --> 00:04:25.410 This is especially critical given shortages 95 00:04:25.410 --> 00:04:27.150 of truck drivers. 96 00:04:27.150 --> 00:04:30.450 The Internet of Things with all kinds of devices and machines 97 00:04:30.450 --> 00:04:33.550 and vehicles connected online and with supply chains, 98 00:04:33.550 --> 00:04:36.540 provide opportunities not available to the Egyptians 99 00:04:36.540 --> 00:04:40.140 or even supply chains from a couple of decades ago. 100 00:04:40.140 --> 00:04:43.840 Possible disruption to supply chains, as we saw with COVID-19, 101 00:04:43.840 --> 00:04:45.690 presents us opportunities to figure out 102 00:04:45.690 --> 00:04:49.090 how to make our supply chains more resilient and robust, 103 00:04:49.090 --> 00:04:52.000 in addition to trying to make them more sustainable. 104 00:04:52.000 --> 00:04:54.720 Sustainable goals often align with business goals 105 00:04:54.720 --> 00:04:58.330 to create efficiencies and reduce waste, such as packaging. 106 00:04:58.330 --> 00:05:00.930 The supply chain management and operations management majors 107 00:05:00.930 --> 00:05:03.130 are exciting and I hope you agree with me. 108 00:05:03.130 --> 00:05:04.780 They are future-proof. 109 00:05:04.780 --> 00:05:07.170 Please reach out to me, my department 110 00:05:07.170 --> 00:05:10.660 and/or your academic advisor with questions about the majors. 111 00:05:10.660 --> 00:05:12.870 I hope to see you in our supply chain and operations 112 00:05:12.870 --> 00:05:14.910 courses and majors. 113 00:05:14.910 --> 00:05:16.730 Thank you. 114 00:05:16.730 --> 00:05:22.000
“Supply chain management is perhaps the most practical of the business functions as it deals with the reality that a business cannot exist if it cannot provide a product.”
Kyle D. CattaniProfessor of Operations Management
Supply chain management through history
Supply chain management has shaped civilizations, from the Egyptians using the Nile River’s currents to move goods to the Mongols creating a superhighway across their empire. These early innovations laid the groundwork for today’s global supply networks. But modern supply chains face new challenges. During COVID-19, we saw how fragile and complex these systems can be. Grocery shelves emptied not because of scarcity, but because supply chains had to rethink how goods are sourced, packaged, and delivered. At Kelley, students learn how to build adaptive supply chains that not only respond to disruption but drive innovation in a rapidly changing world.
Explore the history of supply chains from ancient times when the Egyptians starting using the Nile River as a way to distribute goods to our modern post-COVID-19 era.
Description of the video:
WEBVTT 1 00:00:00.000 --> 00:00:03.980 2 00:00:03.980 --> 00:00:06.920 Hello, I'm Kyle Cattani, a professor 3 00:00:06.920 --> 00:00:09.840 of supply chain management at the Kelley School of Business. 4 00:00:09.840 --> 00:00:12.950 And in this video, I provide an historical context 5 00:00:12.950 --> 00:00:15.950 to the question of, what is supply chain management? 6 00:00:15.950 --> 00:00:18.120 Or, where's my stuff? 7 00:00:18.120 --> 00:00:22.140 Every company provides goods and/or services to customers. 8 00:00:22.140 --> 00:00:25.680 Finance makes sure the company has the money it needs. 9 00:00:25.680 --> 00:00:29.160 Marketing strives to convince customers to buy the product. 10 00:00:29.160 --> 00:00:31.250 But operations is the function that 11 00:00:31.250 --> 00:00:34.100 makes sure the product is available to the customer. 12 00:00:34.100 --> 00:00:37.560 It is perhaps the most practical of the business functions, 13 00:00:37.560 --> 00:00:41.090 as it deals with the reality that a business cannot exist 14 00:00:41.090 --> 00:00:43.880 if it cannot provide a product. 15 00:00:43.880 --> 00:00:46.370 Operations management, thus, is about how 16 00:00:46.370 --> 00:00:48.500 firms organize resources to provide 17 00:00:48.500 --> 00:00:51.080 these goods and/or services. 18 00:00:51.080 --> 00:00:53.090 Supply chains are the network of players 19 00:00:53.090 --> 00:00:56.030 who work together to get the product to the customer. 20 00:00:56.030 --> 00:00:58.760 And supply chain management is about the management 21 00:00:58.760 --> 00:01:01.940 of the flows of materials, information, and money 22 00:01:01.940 --> 00:01:03.180 through the chain. 23 00:01:03.180 --> 00:01:06.370 Supply chains have been around for a long, long time. 24 00:01:06.370 --> 00:01:08.370 For thousands of years, the Egyptians 25 00:01:08.370 --> 00:01:12.280 have used the Nile River as a major transportation mechanism. 26 00:01:12.280 --> 00:01:14.670 The Nile runs from south to north up 27 00:01:14.670 --> 00:01:16.560 towards the Mediterranean Sea. 28 00:01:16.560 --> 00:01:19.950 Conveniently, the wind goes the opposite direction from north 29 00:01:19.950 --> 00:01:20.920 to south. 30 00:01:20.920 --> 00:01:24.840 If you want to ship a product northward, you put it on a boat 31 00:01:24.840 --> 00:01:26.440 and let it drift downstream. 32 00:01:26.440 --> 00:01:29.430 If you want it to go upstream, you put up a sail. 33 00:01:29.430 --> 00:01:31.240 And the wind carries you upstream. 34 00:01:31.240 --> 00:01:33.520 Now, this is a green supply chain. 35 00:01:33.520 --> 00:01:35.820 Many supply chain innovations and practices 36 00:01:35.820 --> 00:01:37.090 come from the military. 37 00:01:37.090 --> 00:01:39.780 The Romans, with their military and their armies, 38 00:01:39.780 --> 00:01:41.920 were very good at supply chain management. 39 00:01:41.920 --> 00:01:44.070 They had roads all over their empire 40 00:01:44.070 --> 00:01:47.110 that could be used to get armies and supplies where needed. 41 00:01:47.110 --> 00:01:48.810 Note that even with their roads, it 42 00:01:48.810 --> 00:01:50.550 would take a few days for a victory 43 00:01:50.550 --> 00:01:53.650 at the end of the empire to be known in Rome. 44 00:01:53.650 --> 00:01:55.480 The Pacific Ocean is huge. 45 00:01:55.480 --> 00:01:58.560 Surprisingly, humans have traveled and traded 46 00:01:58.560 --> 00:02:01.690 across the Pacific for thousands of years. 47 00:02:01.690 --> 00:02:04.330 I'm not sure I want to travel on the boats they used. 48 00:02:04.330 --> 00:02:06.430 But apparently, the payoffs were worth it. 49 00:02:06.430 --> 00:02:08.919 Between Africa and the Indian subcontinent, 50 00:02:08.919 --> 00:02:10.550 the winds have an annual cycle. 51 00:02:10.550 --> 00:02:12.880 An intrepid business person could take a business trip 52 00:02:12.880 --> 00:02:15.880 to deliver goods in one direction and then return 53 00:02:15.880 --> 00:02:18.970 goods to the other direction, a one-year business trip. 54 00:02:18.970 --> 00:02:21.140 Along the Pacific Coast of South America, 55 00:02:21.140 --> 00:02:23.650 extensive trade routes were developed that traded goods 56 00:02:23.650 --> 00:02:25.340 between the shores and the mountains 57 00:02:25.340 --> 00:02:27.980 and along the entire length of the Andes. 58 00:02:27.980 --> 00:02:29.890 The Silk Road has been around for thousands 59 00:02:29.890 --> 00:02:32.990 of years with trade between Europe and Asia. 60 00:02:32.990 --> 00:02:35.510 It was effective but fairly inefficient. 61 00:02:35.510 --> 00:02:39.910 Traders would take their product to the next city in the supply 62 00:02:39.910 --> 00:02:41.810 chain or across the Silk Road. 63 00:02:41.810 --> 00:02:44.260 And they found the roads to be very dangerous 64 00:02:44.260 --> 00:02:45.883 and not very well traveled. 65 00:02:45.883 --> 00:02:46.550 They were there. 66 00:02:46.550 --> 00:02:48.350 But it was pretty inefficient. 67 00:02:48.350 --> 00:02:50.630 The traders would get their goods to the next city, 68 00:02:50.630 --> 00:02:53.380 hand it off to another trader who would probably mark it up 69 00:02:53.380 --> 00:02:55.540 significantly, who would then try to figure out 70 00:02:55.540 --> 00:02:58.240 how to get it to the next city also facing 71 00:02:58.240 --> 00:02:59.780 the same dangerous roads. 72 00:02:59.780 --> 00:03:03.290 In the early 1200s, the founder of the Mongol Empire, 73 00:03:03.290 --> 00:03:05.080 Genghis Khan, came into the scene. 74 00:03:05.080 --> 00:03:08.620 And Genghis Khan led his people to create the largest empire 75 00:03:08.620 --> 00:03:10.070 that perhaps ever existed. 76 00:03:10.070 --> 00:03:12.460 The Mongols were very good at two things: 77 00:03:12.460 --> 00:03:15.540 riding horses and shooting bows and arrows. 78 00:03:15.540 --> 00:03:19.370 And importantly, they were good at shooting bows and arrows 79 00:03:19.370 --> 00:03:20.820 while riding on the horses. 80 00:03:20.820 --> 00:03:24.630 And they used these capabilities to capture city after city. 81 00:03:24.630 --> 00:03:27.390 And the plunder provided them a good source of wealth. 82 00:03:27.390 --> 00:03:30.080 They had the eventually the largest contiguous 83 00:03:30.080 --> 00:03:31.740 empire in history. 84 00:03:31.740 --> 00:03:34.970 But I would argue that perhaps their greatest source of wealth 85 00:03:34.970 --> 00:03:37.410 was not from the plunder, which was a one-time deal, 86 00:03:37.410 --> 00:03:41.807 but rather in the fact that they now had a great supply chain 87 00:03:41.807 --> 00:03:43.640 and that they were able to manage the supply 88 00:03:43.640 --> 00:03:45.480 chain in a very effective way. 89 00:03:45.480 --> 00:03:49.100 Now, instead of having all of these connected line segments 90 00:03:49.100 --> 00:03:51.690 that went from one town to the other, 91 00:03:51.690 --> 00:03:54.170 they could create kind of a superhighway, where 92 00:03:54.170 --> 00:03:56.970 they would send a team of camels and go all the way across. 93 00:03:56.970 --> 00:03:59.130 And it was much more safe and secure. 94 00:03:59.130 --> 00:04:02.540 Modern supply chains have capabilities that are not 95 00:04:02.540 --> 00:04:03.900 available to the ancients. 96 00:04:03.900 --> 00:04:06.200 For example, computing power has exploded. 97 00:04:06.200 --> 00:04:07.910 Over the last few decades, we have 98 00:04:07.910 --> 00:04:10.280 computer power that is mind boggling 99 00:04:10.280 --> 00:04:11.700 and has gone up dramatically. 100 00:04:11.700 --> 00:04:14.330 As a result, information flows instantaneously 101 00:04:14.330 --> 00:04:15.404 across the globe. 102 00:04:15.404 --> 00:04:17.404 And with these computers, we are able to process 103 00:04:17.404 --> 00:04:21.519 this information, interpret it, and make decisions based on it. 104 00:04:21.519 --> 00:04:23.220 Meanwhile, supply chains are moving 105 00:04:23.220 --> 00:04:25.840 a lot of stuff in very big quantities. 106 00:04:25.840 --> 00:04:30.310 The scale of a supertanker is actually unbelievable. 107 00:04:30.310 --> 00:04:32.980 Supply chains are now what we call multimodal. 108 00:04:32.980 --> 00:04:36.160 You can send your product via plane, via truck, 109 00:04:36.160 --> 00:04:39.900 via train, via boat, or some combination of these to get 110 00:04:39.900 --> 00:04:41.620 the product across the globe. 111 00:04:41.620 --> 00:04:43.350 The supply chains are indeed global. 112 00:04:43.350 --> 00:04:46.170 And the supply networks go everywhere you 113 00:04:46.170 --> 00:04:49.980 might imagine, a big change from what we saw with ancient supply 114 00:04:49.980 --> 00:04:52.830 chains and very much an opportunity for us to look 115 00:04:52.830 --> 00:04:54.460 at supply chains in a new way. 116 00:04:54.460 --> 00:04:58.060 Meanwhile, supply chains still have a lot of challenges. 117 00:04:58.060 --> 00:05:01.150 And we saw some of that with the adventures we had with COVID, 118 00:05:01.150 --> 00:05:04.050 where supply chains were stressed in ways 119 00:05:04.050 --> 00:05:05.620 that we had not seen before. 120 00:05:05.620 --> 00:05:08.940 For example, prior to COVID, nearly a third 121 00:05:08.940 --> 00:05:10.770 of all the food in the United States 122 00:05:10.770 --> 00:05:12.850 was consumed in restaurants. 123 00:05:12.850 --> 00:05:15.400 And in March of 2020, when the world shut down, 124 00:05:15.400 --> 00:05:18.180 including these restaurants, all the food 125 00:05:18.180 --> 00:05:21.190 needed to be purchased through grocery stores 126 00:05:21.190 --> 00:05:23.370 rather than through the restaurants. 127 00:05:23.370 --> 00:05:26.080 And the grocery stores quickly ran out of food. 128 00:05:26.080 --> 00:05:28.510 It wasn't that we ate more during COVID. 129 00:05:28.510 --> 00:05:31.200 Well, actually, some of us did but not significantly enough 130 00:05:31.200 --> 00:05:32.710 that would affect the supply chain. 131 00:05:32.710 --> 00:05:35.400 But all the food that was going to the restaurants 132 00:05:35.400 --> 00:05:39.060 needed to be diverted and actually repackaged and sent 133 00:05:39.060 --> 00:05:40.030 to stores. 134 00:05:40.030 --> 00:05:41.530 This was not trivial. 135 00:05:41.530 --> 00:05:43.390 For example, consider ketchup. 136 00:05:43.390 --> 00:05:47.280 Restaurants get ketchup perhaps in gallon or five gallon 137 00:05:47.280 --> 00:05:50.190 containers that aren't exactly what consumers 138 00:05:50.190 --> 00:05:51.520 are looking for in stores. 139 00:05:51.520 --> 00:05:54.040 And so the supply chains had to be redirected. 140 00:05:54.040 --> 00:05:56.010 The ketchup put in the smaller bottles 141 00:05:56.010 --> 00:05:58.600 that we use and then sent to the stores. 142 00:05:58.600 --> 00:06:02.250 It took a while for these supply chains to adjust 143 00:06:02.250 --> 00:06:04.570 and for the stores to get replenished. 144 00:06:04.570 --> 00:06:08.580 In 2020, as the world shut down, demand 145 00:06:08.580 --> 00:06:10.950 evaporated for many goods. 146 00:06:10.950 --> 00:06:13.780 Some goods saw an explosion of demand-- 147 00:06:13.780 --> 00:06:16.330 for example, cleaning supplies and masks. 148 00:06:16.330 --> 00:06:19.650 But for most goods, like cars or travel 149 00:06:19.650 --> 00:06:23.500 or eating out or shopping, demand evaporated. 150 00:06:23.500 --> 00:06:25.170 Consumers were staying home. 151 00:06:25.170 --> 00:06:29.830 In 2021, especially as vaccines became more available, 152 00:06:29.830 --> 00:06:31.410 the demand returned. 153 00:06:31.410 --> 00:06:33.370 And it returned with a vengeance. 154 00:06:33.370 --> 00:06:35.710 Consumers, at least those who had kept their jobs, 155 00:06:35.710 --> 00:06:36.940 had saved a lot of money. 156 00:06:36.940 --> 00:06:38.860 They didn't spend anything during COVID. 157 00:06:38.860 --> 00:06:40.930 And then the government gave them some more. 158 00:06:40.930 --> 00:06:42.880 So they did the American thing. 159 00:06:42.880 --> 00:06:44.130 They went shopping. 160 00:06:44.130 --> 00:06:46.500 And supply chains saw, as you see 161 00:06:46.500 --> 00:06:48.730 in this graph, a large spike in demand. 162 00:06:48.730 --> 00:06:51.370 And they had a very difficult time keeping up. 163 00:06:51.370 --> 00:06:54.520 So why did the supply chains-- 164 00:06:54.520 --> 00:06:56.800 why were they so stressed during COVID? 165 00:06:56.800 --> 00:06:59.170 Partly, it's for historical reasons. 166 00:06:59.170 --> 00:07:01.290 Over the last few decades, supply chains 167 00:07:01.290 --> 00:07:03.870 have focused on becoming very lean. 168 00:07:03.870 --> 00:07:06.130 They've tried to avoid excess capacity. 169 00:07:06.130 --> 00:07:08.590 They've tried to avoid excess inventory. 170 00:07:08.590 --> 00:07:11.410 And the supply chains have also become very extended. 171 00:07:11.410 --> 00:07:15.090 And so outsourcing and offshoring to all over the globe 172 00:07:15.090 --> 00:07:16.920 made them more vulnerable to something 173 00:07:16.920 --> 00:07:18.250 that happened with COVID. 174 00:07:18.250 --> 00:07:21.460 Also, when COVID hit, it affect a lot of the manufacturing. 175 00:07:21.460 --> 00:07:23.470 You had illness and absent workers. 176 00:07:23.470 --> 00:07:26.610 And then you have the mix issues as I described with ketchup 177 00:07:26.610 --> 00:07:28.080 and the food industry. 178 00:07:28.080 --> 00:07:30.810 The logistics, the moving of products through the supply 179 00:07:30.810 --> 00:07:33.940 chains also was affected by illness and absent workers. 180 00:07:33.940 --> 00:07:36.860 And then it became bottlenecks in key transportation nodes, 181 00:07:36.860 --> 00:07:39.790 such as the ports, where the ships were going. 182 00:07:39.790 --> 00:07:43.780 As COVID abated, my wife ordered a custom piece of furniture 183 00:07:43.780 --> 00:07:45.170 in our local store. 184 00:07:45.170 --> 00:07:47.630 And they promised her delivery in three months. 185 00:07:47.630 --> 00:07:49.880 She was very excited to get this piece of furniture. 186 00:07:49.880 --> 00:07:51.920 After three months, it had still not arrived. 187 00:07:51.920 --> 00:07:52.875 So she called them. 188 00:07:52.875 --> 00:07:55.250 And they said, oh, well, it'll take another three months. 189 00:07:55.250 --> 00:07:57.980 Finally, after eight months, exasperated, 190 00:07:57.980 --> 00:08:00.650 she asked them, where's my stuff? 191 00:08:00.650 --> 00:08:04.070 And their response was, well, it's the supply chain. 192 00:08:04.070 --> 00:08:07.130 My wife said it was like they were saying, it's the weather. 193 00:08:07.130 --> 00:08:08.920 We can't do anything about it. 194 00:08:08.920 --> 00:08:12.340 Well, my message to you is that we actually 195 00:08:12.340 --> 00:08:13.655 can do something about it. 196 00:08:13.655 --> 00:08:15.280 Supply chains are not like the weather. 197 00:08:15.280 --> 00:08:18.170 And supply chain experts can help. 198 00:08:18.170 --> 00:08:20.800 So my encouragement to you is to major 199 00:08:20.800 --> 00:08:22.250 in supply chain management. 200 00:08:22.250 --> 00:08:25.810 And then you can be the ones who can help. 201 00:08:25.810 --> 00:08:28.550 Please reach out to me, my department, 202 00:08:28.550 --> 00:08:30.490 and/or your academic advisor if you have 203 00:08:30.490 --> 00:08:32.409 any questions about the majors. 204 00:08:32.409 --> 00:08:34.380 Thank you. 205 00:08:34.380 --> 00:08:40.000
Salary statistics for supply chain majors
Kelley SMC graduates often work across organizational boundaries and with partners spanning the globe, having a large placement in consulting firms. Explore career outcomes, including starting salaries, for supply chain and operations management graduates at Kelley.
What are supply chain management major requirements?
Kelley’s supply chain management major requires 21 credit hours, which includes two elective courses, ensuring our graduates are prepared for the future. With courses ranging from analytics and logistics to sustainability, our students have access to top employers and consulting firms, ensuring they succeed in a rapidly evolving field.
Discover the career opportunities available to supply chain management majors, including a path to CEO.
Description of the video:
WEBVTT 1 00:00:00.000 --> 00:00:05.150 2 00:00:05.150 --> 00:00:07.970 Only a select few will make it all the way 3 00:00:07.970 --> 00:00:10.970 up the corporate ladder to become CEO. 4 00:00:10.970 --> 00:00:13.010 It is interesting to learn about these men 5 00:00:13.010 --> 00:00:14.660 and women and the paths they took 6 00:00:14.660 --> 00:00:17.810 to arrive at this rarefied air. 7 00:00:17.810 --> 00:00:21.080 Consider Tim Cook, the CEO of Apple. 8 00:00:21.080 --> 00:00:25.430 As may be typical of CEOs, Cook took a somewhat circuitous path 9 00:00:25.430 --> 00:00:26.460 to the top. 10 00:00:26.460 --> 00:00:29.030 He earned a bachelor's degree in industrial engineering 11 00:00:29.030 --> 00:00:32.670 from Auburn University, an MBA from Duke University. 12 00:00:32.670 --> 00:00:36.650 He worked for IBM, Intelligent Electronics, and Compaq 13 00:00:36.650 --> 00:00:40.340 before joining Apple in 1998 as a senior vice president 14 00:00:40.340 --> 00:00:42.330 for worldwide operations. 15 00:00:42.330 --> 00:00:44.600 He later became chief operating officer 16 00:00:44.600 --> 00:00:48.050 before becoming CEO in 2011. 17 00:00:48.050 --> 00:00:51.780 Is Tim Cook unique as a CEO that came up through operations? 18 00:00:51.780 --> 00:00:55.220 It turns out that operations is the most common path, 19 00:00:55.220 --> 00:00:59.160 more than the other business functions of finance at 21, 20 00:00:59.160 --> 00:01:02.510 marketing at 13, accounting at 11, management 21 00:01:02.510 --> 00:01:04.400 or consulting each at 3. 22 00:01:04.400 --> 00:01:06.830 Operations has the highest number 23 00:01:06.830 --> 00:01:11.150 of CEOs in the Fortune 100 at 25. 24 00:01:11.150 --> 00:01:13.940 Why does operations or the closely related supply 25 00:01:13.940 --> 00:01:17.930 chain management function make sense as a career path? 26 00:01:17.930 --> 00:01:21.240 Operations management focuses on planning, organizing, 27 00:01:21.240 --> 00:01:23.780 and managing the assets and resources of the organization 28 00:01:23.780 --> 00:01:26.120 that are used to provide the product 29 00:01:26.120 --> 00:01:28.430 the organization delivers. 30 00:01:28.430 --> 00:01:30.510 Every company provides a product. 31 00:01:30.510 --> 00:01:33.660 Finance makes sure the company has the money it needs. 32 00:01:33.660 --> 00:01:37.230 Marketing strives to convince customers to buy the product. 33 00:01:37.230 --> 00:01:39.350 But operations is the function that 34 00:01:39.350 --> 00:01:42.300 makes sure the product is available to the customer. 35 00:01:42.300 --> 00:01:45.650 It is perhaps the most practical of the business functions as it 36 00:01:45.650 --> 00:01:49.400 deals with the reality that a business cannot exist if it 37 00:01:49.400 --> 00:01:51.210 can't provide a product. 38 00:01:51.210 --> 00:01:54.230 When you go to a store and see the myriad products 39 00:01:54.230 --> 00:01:56.222 available to purchase, you may not 40 00:01:56.222 --> 00:01:57.680 think about the amount of effort it 41 00:01:57.680 --> 00:02:00.590 took to ensure that the right amount of the right products 42 00:02:00.590 --> 00:02:02.520 are ready for your selection. 43 00:02:02.520 --> 00:02:05.810 It is the operations function that operates behind the scenes 44 00:02:05.810 --> 00:02:07.170 to make it happen. 45 00:02:07.170 --> 00:02:10.400 And the skills that make one successful in this discipline 46 00:02:10.400 --> 00:02:13.820 are valued by companies from top to bottom. 47 00:02:13.820 --> 00:02:16.670 I'm Kyle Cattani, a professor of supply chain 48 00:02:16.670 --> 00:02:18.690 management at the Kelley School of Business. 49 00:02:18.690 --> 00:02:21.390 And in this and two other short videos, 50 00:02:21.390 --> 00:02:23.660 I hope to pique your interest in the operations 51 00:02:23.660 --> 00:02:26.930 or supply chain management majors at Kelley. 52 00:02:26.930 --> 00:02:28.610 In the next couple of slides, I'll 53 00:02:28.610 --> 00:02:30.440 discuss some of the job opportunities 54 00:02:30.440 --> 00:02:32.670 available to students in our two majors. 55 00:02:32.670 --> 00:02:35.540 I encourage you also to watch a video on the history of supply 56 00:02:35.540 --> 00:02:37.130 chain management and another video 57 00:02:37.130 --> 00:02:39.210 about the specifics of the majors. 58 00:02:39.210 --> 00:02:42.260 I hope you'll agree that majoring in either operations 59 00:02:42.260 --> 00:02:45.920 or in supply chain management is future-proof, even if you don't 60 00:02:45.920 --> 00:02:48.650 make it all the way to CEO. 61 00:02:48.650 --> 00:02:50.270 Here is a list of the top employers 62 00:02:50.270 --> 00:02:53.600 for graduates of the supply chain or operations management 63 00:02:53.600 --> 00:02:55.470 majors at the Kelley School of Business. 64 00:02:55.470 --> 00:02:58.670 You can see that many of the top employers are consulting firms, 65 00:02:58.670 --> 00:03:03.950 such as Ernst & Young, Grant Thornton, KPMG, PWC, BCG, 66 00:03:03.950 --> 00:03:07.490 or McKinsey, but also include other companies known 67 00:03:07.490 --> 00:03:09.600 for their expertise in supply chain management, 68 00:03:09.600 --> 00:03:13.460 such as Grainger whose mission statement is "We keep the world 69 00:03:13.460 --> 00:03:16.520 working," which they do by offering very quick delivery 70 00:03:16.520 --> 00:03:19.580 of approximately two million different maintenance, repair, 71 00:03:19.580 --> 00:03:23.280 and operating products and services to other companies. 72 00:03:23.280 --> 00:03:26.145 You may be aware of Target Corporation, who 73 00:03:26.145 --> 00:03:29.070 uses their expertise in supply chain management 74 00:03:29.070 --> 00:03:32.020 to achieve their motto of "Expect more. 75 00:03:32.020 --> 00:03:32.980 Pay less." 76 00:03:32.980 --> 00:03:35.010 Brand promise. 77 00:03:35.010 --> 00:03:38.460 Note that every company delivers products, either goods 78 00:03:38.460 --> 00:03:41.200 or services, or a combination of goods and services, 79 00:03:41.200 --> 00:03:43.890 and every company has and needs employees 80 00:03:43.890 --> 00:03:45.540 to run their operations. 81 00:03:45.540 --> 00:03:48.220 While all companies hire operations students, 82 00:03:48.220 --> 00:03:50.340 this list shows the 20 companies that 83 00:03:50.340 --> 00:03:52.750 hired the most from the Kelley School of Business. 84 00:03:52.750 --> 00:03:55.800 Some of the job opportunities available to our graduates 85 00:03:55.800 --> 00:03:57.660 of operations or supply chain management 86 00:03:57.660 --> 00:04:00.600 include positions in logistics, which 87 00:04:00.600 --> 00:04:03.300 is the task of getting products to their final destinations, 88 00:04:03.300 --> 00:04:06.990 available to customers; purchasing and sourcing, which 89 00:04:06.990 --> 00:04:08.880 looks upstream in the supply chain 90 00:04:08.880 --> 00:04:11.460 and refers to the process of selecting and managing 91 00:04:11.460 --> 00:04:12.990 the vendors who provide materials 92 00:04:12.990 --> 00:04:17.430 or services to an organization; supply chain managers, which 93 00:04:17.430 --> 00:04:19.680 is a more general name for many roles involved 94 00:04:19.680 --> 00:04:22.980 in the management of the flow of goods and services in the firm; 95 00:04:22.980 --> 00:04:26.610 consultants, who can specialize in advising clients about how 96 00:04:26.610 --> 00:04:29.360 to improve their supply chains; analysts, 97 00:04:29.360 --> 00:04:31.970 who analyze data and methods to predict and improve 98 00:04:31.970 --> 00:04:35.570 a company's delivery of products and services to its customers; 99 00:04:35.570 --> 00:04:38.960 project managers, who coordinate and oversee the entire process 100 00:04:38.960 --> 00:04:41.180 of a project from start to finish; 101 00:04:41.180 --> 00:04:45.200 and Lean and Six Sigma, which is a set of methodologies and tools 102 00:04:45.200 --> 00:04:48.480 to improve business processes by reducing defects and errors, 103 00:04:48.480 --> 00:04:50.540 minimizing variation, and increasing 104 00:04:50.540 --> 00:04:52.760 quality and efficiency. 105 00:04:52.760 --> 00:04:56.480 In general, these and other operations or supply chain jobs 106 00:04:56.480 --> 00:05:00.320 are about helping firms use their resources most effectively 107 00:05:00.320 --> 00:05:03.320 to get products to customers. 108 00:05:03.320 --> 00:05:05.930 I hope that you consider the operations or supply chain 109 00:05:05.930 --> 00:05:07.230 majors at Kelley. 110 00:05:07.230 --> 00:05:09.390 You may or may not make it to CEO. 111 00:05:09.390 --> 00:05:11.240 I certainly hope that you do. 112 00:05:11.240 --> 00:05:15.030 And I hope that you remember the Kelley School when it happens. 113 00:05:15.030 --> 00:05:17.220 But even if you don't, more importantly, 114 00:05:17.220 --> 00:05:20.870 I hope that you set yourself up for a rewarding and fruitful 115 00:05:20.870 --> 00:05:21.870 career. 116 00:05:21.870 --> 00:05:24.180 Please reach out to me, my department, 117 00:05:24.180 --> 00:05:27.630 and/or your academic advisor with questions about the majors. 118 00:05:27.630 --> 00:05:29.620 Thank you. 119 00:05:29.620 --> 00:05:34.000
Why choose Kelley for a supply chain major?
Kelley’s SCM program includes rigorous academics and real-world experience. Additionally, our students will have access to career coaching so they can tailor their experience to fit their goals. With strong industry ties, a collaborative culture, award-winning faculty, and a curriculum shaped by global trends—our students graduate ready to lead in some of the world’s largest companies.
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Events, career panels, and student spotlights, as they happen.
Meet with a career coach
Select the "Request a Coach App" button on the Kelley Connect website to discuss careers in operations management or supply chain management with a career coach.
Connect through SCOMA
Attend an event, become a member, or talk to a current supply chain management or operations management student about the club and the majors.
Connect through WISE
Connect with current students by attending an event or becoming a member of the organization.
Consider a workshop
Explore hands-on ways to try the discipline before you commit to a major.
Supply Chain Workshop
The workshop will prepare students for careers in logistics and transportation in the context of recent trends in digital business.
Business Operations Consulting Workshop
As businesses face perpetual volatility, increasing competition, rising customer expectations, and digital disruption, savvy companies are developing business operations that are broad, cohesive, nimble, reliable, and resilient, and that draw on end-to-end global strategy.
Meet our faculty
Email a faculty member directly, or stop by office hours, to talk through your interests and options.
Ready to declare a supply chain management or operations management major?
Complete the Major Update/Minor Declaration form to declare supply chain management or operations management as your primary or secondary major.