Be confident to lead with a supply chain management major

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

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

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